day 2 intro to marketing, marketing mix, life cycle strategy plan
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mktg mix, life cycleTRANSCRIPT
B R I A N W S T E E Ldeveloping higher performance
Starting in BusinessIntroduction to Streetwise Marketing
B R I A N W S T E E Ldeveloping higher performance
Introduction to marketing – street style.
By its nature marketing is about communications particularly with customers.
Marketing seeks to identify what customers needs, wants and desires are. It also looks to the future and changes that will impact on the business.
Streetwise marketing looks at only factors that directly impact on the business and market. That makes it highly focused and personal.
Marketing defines the market place, its demography and geological factors
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So let’s build a great business ...
Taking care of the key aspects of business start-up can help ensure your adventure gets off to a good start and builds the foundation for a great future.
Remember this?
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A few basic principles!
Packaging makes perfect?
The life cycle
Quality is a perception
Talk about growth No one area of a business is more important than another. Always look at the bigger picture.
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People buy packages not products
Get your head around the imperatives. What will drive customers to buy from you or to buy from your competitors?
Think about benefits – they may be different for different people.
Think about the why not the what.
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Product/business life cycle
4 Key areas:
Introduction
Growth
Maturity
Decline
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Product/business life cycle
Intro Growth Maturity Decline
Sales
Profit
B R I A N W S T E E Ldeveloping higher performance
Product/business life cycle
Intro Growth Maturity Decline
Sales
Profit
Possible Introduction Strategies:
High profile: High price, Intense promotion, Defence of Brand and values.
Selective Penetration: Limited market, High price and quality, minimal competitive activity.
Pre-emptive Penetration: Wide market activity, Intense promotion, Price sensitive, Strong Potential Competition, Low unit cost.
Low Profile: Low price, Low key promotion, Rapid growth, Large market, Market aware of product, Price sensitive, Potential competition.
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Product/business life cycle
Intro Growth Maturity Decline
Sales
Profit
Possible Growth Strategies:
Improve Quality: add new features.
Markets: Look for new market sectors and segments.
Channels: look for new ways to distribute product.
Shift Emphasis: move away from using advertising and promotion to build awareness to confirmation of quality and conviction.
Price Management: Lower initial price to attract next layer of potential buyers
B R I A N W S T E E Ldeveloping higher performance
Product/business life cycle
Intro Growth Maturity Decline
Sales
Profit
Possible Maturity Strategies:
Modify Market: Look for new markets, sectors and segments.
Increase Usage: Look for ways to draw customers into ‘product family’ – add recipes to food packaging.
Reposition: Re-target product to new buyers.
Modify Product: Re-launch product with new features and benefits, develop styling, increase potential usage.
B R I A N W S T E E Ldeveloping higher performance
Product/business life cycle
Intro Growth Maturity Decline
Sales
Profit
Possible Decline Strategies:
Review Product and Market
Review possible or reported weaknesses
Review sales volumes
Identify dubious and redundant features/applications
Re-Target or Modify Potential Market Applications
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How will your business grow?
Expansion of territory.
Growth in local customer base .
Franchise or something else.
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Quality is a perception
It does not matter what you think represents quality.
Quality is fitness for purpose.
. Quality is about added value.
B R I A N W S T E E Ldeveloping higher performance
The Marketing Mix
.
Understanding the 4 P’s
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The Marketing Mix - Understanding the 4 P’s
Product:Customer needsFeaturesBenefitsProduct nameBrand [ing]Differentiation
PriceValue to buyerIs there a price point?Is it price sensitive?Trade discounts?How does your price compare?
TargetMarket
Place:Where do customers buy?Can you access distribution?Sales force?What do competitors do?
Promotion:Where and when to market?What media to use?When is best time?How does competition promote?
B R I A N W S T E E Ldeveloping higher performance
The Marketing Mix - Understanding the 4 P’s
PriceValue to buyerIs there a price point?Is it price sensitive?Trade discounts?How does your price compare?
TargetMarket
Place:Where do customers buy?Can you access distribution?Sales force?What do competitors do?
Promotion:Where and when to market?What media to use?When is best time?How does competition promote?
Product:
Customer needsFeaturesBenefitsProduct nameBrand(ing)Differentiation
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Understanding the market – 4 P’s
Product:
Marketing begins with the process of finding out what people will buy.
It also demands you, at least, know what the common alternatives are.
You need to know what the feature and benefits should be
Bells and whistles = Features
What they do for the customer = Benefits
B R I A N W S T E E Ldeveloping higher performance
The Marketing Mix - Understanding the 4 P’s
Product:Customer needsFeaturesBenefitsProduct nameBrand [ing]Differentiation
TargetMarket
Place:Where do customers buy?Can you access distribution?Sales force?What do competitors do?
Promotion:Where and when to market?What media to use?When is best time?How does competition promote?
Price:
Value to buyerPrice pointPrice sensitivityTrade discountsPrice comparison
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Understanding the market – 4 P’s
Price:
What is the value of the product or service to the customer?
Are there established price points for the product or service?
Is the customer price sensitive?
Are discount structures expected by customers?
How does your price compare with competitors?
B R I A N W S T E E Ldeveloping higher performance
The Marketing Mix - Understanding the 4 P’s
Product:Customer needsFeaturesBenefitsProduct nameBrand [ing]Differentiation
PriceValue to buyerIs there a price point?Is it price sensitive?Trade discounts?How does your price compare?
TargetMarket
Promotion:Where and when to market?What media to use?When is best time?How does competition promote?
Place:
Where do customers buy?Can you access distribution?Need a sales force?What do competitors do?
B R I A N W S T E E Ldeveloping higher performance
Understanding the market – 4 P’s
Place:
Where do customers look for the product or service?
What are the most popular product locations?
Can you access the most popular distribution channels?
How do competitors manage sales?
Will you need or benefit from a sales force?
B R I A N W S T E E Ldeveloping higher performance
The Marketing Mix - Understanding the 4 P’s
Product:Customer needsFeaturesBenefitsProduct nameBrand [ing]Differentiation
PriceValue to buyerIs there a price point?Is it price sensitive?Trade discounts?How does your price compare?
TargetMarket
Place:Where do customers buy?Can you access distribution?Sales force?What do competitors do?
Promotion:
Where and when to market?What media to use?Timing?How does competition promote?
B R I A N W S T E E Ldeveloping higher performance
Understanding the market – 4 P’s
Promotion:
Where can you best get your marketing message across?
What media will best suit your promotion campaigns?
When is the best time to promote?
How do your competitors promote their businesses/products/services?
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Time for a little analysis...
If you never have anything else you should have a strategy focused on helping develop your business to the level you want it to be.
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Strategic development templateBusiness details, name address etc
Current position – started, planning, dreaming of what might be
Issues you face at present based on what you now know
Business direction – local, national, international – branchise or franchise
Future plans – what do you want out of this adventure?
Issues in relation to goals
Action plan
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Profiling customers
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Profiling customers
Profiling helps you:
Manage your customer database.
Build stronger customer relationships.
Manage your credit portfolio and level of credit risk.
Create more successful marketing campaigns.
Acquire the most profitable kinds of prospects.
Build a powerful Brand.
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Profiling customers
Know your customers:
Probably the most powerful information you will ever hold
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Profiling customers
B R I A N W S T E E Ldeveloping higher performance
Profiling customersDescribe one personWhat genderWhat ageWhere do they liveWhat do they live inWhat do they do for a livingWhat do they particularly likeWhat do they particularly dislikeWhat does the customer want from youWhat commons characteristics are required
What are the customers imperativesWhat do customers valueHow are they likely to find out about youIs the cost of particular concernList the ways in which you can reach, contact and communicate with your target customer.
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The Power of the Brand
You don’t have to look too far to see just how powerful and valuable a brand can be.
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Building the brand
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Building the brand
$15 bn
$9.5 bn
$67 bn
$14 bn
$11 bn
$120 bn
$12 bn
$183 bn$13 bn
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Building the brand
One of the 18,000 livery cabs which will serve Northern Manhattan, Queens, The Bronx, Brooklyn, and Staten Island
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Building the Brand
Screwing
up
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Building and protecting your brand
So what are you going to do???
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Types of Intellectual Property [IP]
Copyright
Trade Mark
Design Rights
Patent
Building and protecting your brand
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Copyright ©
Common right in UK Lasts for 70 years past death of originator Covers all written and 2 D creative work, manuals, letters, instructions, pictures, designs, photographs, software programmes, graphics, books etc. Costs nothing in UK
Building and protecting your brand
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Trade Mark ®
Can be re-registered with IPO indefinitely Can be word, phrase, sound, shape, logo, symbol, signature, image, design or combination of them. Registers products in 11 classes for services and 34 classes for products Has to be distinctive to qualify for registration Costs around £200 or £170 on-line.
Building and protecting your brand
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Design
3 D shapes including relief patterns on objects The shape and key characteristics of a product Unregistered – common right – lasts for 15 years. Registered lasts for 25 years with renewal fees every 5 years. Semi-conductors governed by separate legislation 10 years protection Costs £60 per design
Building and protecting your brand
B R I A N W S T E E Ldeveloping higher performance
Patent
Original equipment, product, component, new process etc. That is proven to work. Cover for 20 years Has to be renewed every 5 years Costs range from £3,000 to £5,000
Building and protecting your brand