Marketing Plan

Marketing PlanShoaib 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

George’s Questionnaire - qualitative 20 people Surveys – walk-up, mailed, email, on-line

Prove You solve a problem Features are wanted Customer understands the benefits Customer will pay your price You know how customer decides

Don’t 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 OEM’s & VAR’s 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

Attribute 2

You

Competitor 2

Competitor 3

Competitor 1

Marketing Strategy

Hot Chocolate

Flavour

Convenience

HC

Hersheypackets

Ski Resortcafe

Brown Palace

Marketing Strategy

Hot Chocolate

“Coolness”

Price

HC

Brown Palace

Ski Resortcafe

Hersheypackets

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

Mike Morris, Syracuse University

Marketing Strategy

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? Personal selling Online purchasing TV infomercials Direct mail 800 telephone

Who will do the selling? An internal sales force Field sales force Manufacturer's reps Telephone solicitors

How will you recruit, train, and compensate our sales force?

How will you support the sales effort?  

Internal staff 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 Market potential - number of customers, transactions or

units, purchases Size & growth

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

Determine Annual purchases today & future Who purchase from & level of satisfaction

What do you need to do to get an order? If you meet the criteria, how much business can

you expect?

Marketing Strategy