Marketing Plan

Shoaib Ul-Haq
LUMS

Marketing Strategy

Marketing Plan Objectives

 

Build on Market & Industry Analysis Define the strategies & key actions to exploit the opportunity

Marketing Strategy

Marketing Plan Outline

         

Customer Research Target Market Strategy Channel Strategy Positioning Product/Service Strategy Pricing Strategy E-commerce Communications Strategy Sales Strategy Revenue Model

Marketing Strategy

Customer Research


Show your results

 

Georges Questionnaire - qualitative 20 people Surveys walk-up, mailed, email, on-line You solve a problem Features are wanted Customer understands the benefits Customer will pay your price You know how customer decides

Prove
    

Dont cook the books

Marketing Strategy

How Do Customers Make Decisions?

   

Decision making process where, when & how Initiator, Influencer, Decider, Purchaser & User Identify criteria used to make decisions


Criteria may be different than your features

Customers buy benefits

Marketing Strategy

Target Market Strategy

 

Consumers vs. purchasers Profile of the customers you will serve

 

Consumer: demographics, psychographics & values Business: industry, size, location, purchase decision

How will you overcome brand loyalty? What will cause customers to switch? Future markets

Marketing Strategy

Channel
 

Describe and justify the distribution channels Potential channels

  

Distributors, wholesalers, retailers OEMs & VARs E-commerce

Describe how you will gain access to the channels

 

Identify specific companies Decision making process

Delivery to your customers, e.g. UPS is not the channel

Marketing Strategy

Positioning
   

Positioning is in the mind of the customer, relative to the competition What must target customer believe about you


perceptions, impressions and feelings

How are you unique & different? Other considerations

 

Name of your company Company characteristics essence of personality, tone & manner

Marketing Strategy

Attribute Map
Attribute 1
Competitor 3

You

Competitor 1 Competitor 2

Attribute 2

Marketing Strategy

Hot Chocolate
Flavour
Brown Palace

HC
Ski Resort cafe Hershey packets

Convenience

Marketing Strategy

Hot Chocolate
Coolness HC
Ski Resort cafe Hershey packets Brown Palace

Price

Marketing Strategy

Product/Service Strategy
 

Not the description Product/service roll out

 

Initial product/services Future product/services

 

Enhance the product/service with operations & service Actions to sustain competitive advantage
  

New features & benefits New technology New process

What features & benefits are most persuasive to get the customer to act?

Marketing Strategy

Pricing Strategy
    

Describe and justify your pricing strategy Provide evidence that your target market will accept your price Position your pricing relative to current and potential competition Low price usually is NOT a good strategy! Measure of management

Marketing Strategy

What Are the Pricing Methods?

 

Value pricing - how much is customer willing to pay? Commodity pricing

  

Set by the market Supply and demand Seasonality & perishability

       

Competition Payback period depends on impact on company profit Rule of thumb Keystone Introductory low price to get customers to use Cost plus markup Transaction fee Razor & razor blade A la carte

Marketing Strategy

Communications


How you will communicate with current and potential customers?

    

Advertising paid advertising newspapers, magazines, TV, internet Public relations articles in paper, journals, blogs, websites Printed materials flyers, brochures Performances, concerts, exhibitions Exhibitions

Why is this the most effective strategy?  Be imaginative! Be a guerilla!


Marketing Strategy

Guerilla Examples I
 

New restaurant invites local hairdressers for free meal just after opening Mattress retailer has sleep over advertising on the ceiling of a retail store News is created so it will be covered in local newspaper


Computer store does computer training for underprivileged kids Owner makes bold predictions, does something unusual

Articles are written by the entrepreneur for newspapers

Marketing Strategy

Mike Morris, Syracuse University

More Guerilla Examples II



Reciprocal advertising: two businesses mention one another in their ads Store offers discount card/coupon that appreciates in value each time it is used Coupon that is worth something different each time it is used Theatre places speakers outside front of facility with movies soundtracks playing; bakery purposely lets smells waft into customer passageway of mall
Mike Morris, Syracuse University
Marketing Strategy

More Examples III

  

Bowling alley charges based on number of bowling pins customer knocks down Bicycle retailer puts promotional tags on bike racks around town Day care center adds cameras and streaming videos so parents can see how children are treated Flower shop with lack of visibility at their location decorates popular park and some small cafes in the area with creative and simple flower arrangements
Mike Morris, Syracuse University Marketing Strategy

Sales Strategy


How will you get orders?  How will you recruit,  Personal selling train, and compensate  Online purchasing our sales force?  TV infomercials  Direct mail  How will you support  800 telephone the sales effort? Who will do the selling?  Internal staff
   

An internal sales force Field sales force Manufacturer's reps Telephone solicitors

Service operations

Marketing Strategy

Revenue Model

Marketing Strategy

Two Approaches
 Top

down market penetration & timing  Bottom up pipeline, revenue by customer

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model

Marketing Strategy

Revenue Model Variables

  

units, purchases  Size & growth

Market potential - number of customers, transactions or Market share - penetration rate Product/Services offered
   

Roll-out strategy Range & mix New Products/Services Obsolescence

  

Frequency of purchase per day/week/month Capacity Utilization per time period, event Prices
 

Price per customer, transaction or unit Average revenue per customer or transaction

Channel strategy - discount

Marketing Strategy

Revenue Model (Bottom-up)

 

Identify specific customers



Identify decision maker Annual purchases today & future Who purchase from & level of satisfaction If you meet the criteria, how much business can you expect?

Determine
 

What do you need to do to get an order?



Marketing Strategy