Marketing Your Business Idea

Course Outline  Market Analysis Competitive Advantage Competitive Matrix  Market Strategies Marketing Mix  Pricing  Promotional Mix Marketing Your Business Idea2

Market Analysis: Competitive Advantage  Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match. P. Kotler, Marketing Management, 2008  Who are your major competitors? Marketing Your Business Idea3

Market Analysis: Competitive Advantage StrengthsWeaknesses OpportunitiesThreats External Factors S W O T Analysis Internal Factors 4Marketing Your Business Idea

Market Analysis: Competitive Advantage Strengths  Technological skills  Leading Brands  Customer Loyalty/relationship  Product quality  Scale  Management Weaknesses  Absence of Important skills  Weak brands  Poor access to distribution  Low customer retention  Unreliable product/service  Management 5Marketing Your Business Idea S W O T Analysis

Opportunities  Changing customer tastes  Liberalization of geographical markets  Technological advances  Changes in government politics  Lower personal taxes  Change in population age structure  New distribution channels Threats  Changing customer tastes  Closing of geographical markets  Technological advances  Changes in government politics  Tax increases  Change in population age structure  New distribution channels 6Marketing Your Business Idea Market Analysis: Competitive Advantage S W O T Analysis

Market Analysis: Competitive Matrix 7Marketing Your Business Idea

Marketing Strategies Marketing Your Business Idea8

Marketing Strategies Marketing strategies are the decisions marketers (owners) make to ensure that  products/services satisfy the needs of their target market  products/services are sold at the price a customer is ready to pay and at the same time that will promote business growth  the distribution channels are convenient to the customer  the company communicates with the customers effectively 9Marketing Your Business Idea

Marketing Strategies Marketing Mix 4P’s Product Price Place Promotion 4C’s Customer solution Customer cost Convenience Communication 10Marketing Your Business Idea

Marketing Strategies Marketing Mix Customer Solution Communication Customer Cost Convenience Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns List price Discounts Allowance Payment period Credit terms Sales promotion Advertising Sales force Public relations Direct marketing Channels Coverage Assortment Locations Inventory Transportation 11Marketing Your Business Idea

Pricing

What is your strategy?  First determine your market position Match your positioning with pricing strategy  Example: Market Position: Offering high quality products and services Pricing Strategy: Premium Pricing 13Marketing Your Business Idea

Pricing Economy Penetration Skimming Premium Quality of Product LowHigh Price HighLow 14Marketing Your Business Idea Identifying A Strategy

Pricing Strategies  Penetration Pricing Pricing products and services at or below competitors Used to gain market share, often times prices are increased once a customer base is established  Premium Pricing Pricing products and service above competitors Used when substantive competitive advantage is present, creates an image of quality 15Marketing Your Business Idea

Pricing Strategies  Economy Pricing Pricing just above production and sales costs Used to create an image of low cost  Price Skimming Charging a high price for new products to the market when competition is low, prices drop as competition enters the market with similar products 16Marketing Your Business Idea

Pricing Other Pricing Strategies  Value Added Pricing Pricing products and services to create an image of value added Often times used in times of recession to generate continued consumer spending  Total Cost Pricing Looking at the “total cost” to produce and sell your products and services Including costs in the front up price verses charging extra at later service dates - Example: Service Contract or Warrantee 17Marketing Your Business Idea

Pricing: 3 C’s of Pricing  Cost  Competition  Customers 18Marketing Your Business Idea

Pricing: 3 C’s of Pricing Costs  Cost of Production Products: - Materials, Labor, Packaging and Shipping Services: - Time and Salaries, travel  Overhead Cost What does it cost of run your business day in and day out? - Examples: Rent, Utilities, Taxes, Advertising, Loan Payments 19Marketing Your Business Idea

Competition  Research, Research, Research What does your competition charge for their products and services? What is your competition’s market position and pricing strategy? Do the market suppliers have control over mandating market pricing?  Evaluate how this relates to your business Example: If your competition is charging $20/hour for service calls, but your internal cost structure requires you to charge $25/hour, Penetration Pricing is not feasible. 20Marketing Your Business Idea Pricing: 3 C’s of Pricing

Customers  Research, Research, Research What are your customers willing to pay for your products or services? What does industry research say consumers are spending on your products and services? And how often are they buying? 21Marketing Your Business Idea

Promotional Mix Marketing Your Business Idea22

Promotional Mix  Promotion is communicating with customers and giving them information that assists them in making a decision to purchase a product or service.  The elements of the promotional mix are: Personal Selling Sales Promotion Public Relations Advertising Trade Fairs and Exhibitions 23Marketing Your Business Idea

Promotional Mix Personal Selling  Personal selling is one-to-one communication with potential buyers of a product or service with the intention of making a sale.  Personal selling involves the use of a sales force to: encourage customers to buy the product or service, support retailers and provide after-sales service. 24Marketing Your Business Idea

Promotional Mix Sales Promotion  Sales Promotions are incentives that are designed to encourage the purchase or sale of a product or service, usually in the short term  Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, point of purchase displays, trade shows, trade-ins, and exhibitions 25Marketing Your Business Idea

Public Relations  Public relations (PR) is the practice of managing the flow of information between an organization and its publics. PR is a means of keeping in touch with the audience using topics of interest and items that do not require any payment.  Example: speaking at conferences, working with the press, and employee communication.  PR can be used to build a rapport with employees customers, investors or the general public. Promotional Mix 26Marketing Your Business Idea

Advertising  Advertising is a persuasive message to potential customers to purchase or consume more of your product or service.  Media used: Television, radio, cinema, magazines, newspapers, video games, the internet and billboards.  Examples: Wall paintings, billboards, printed flyers, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, magazines, newspapers, sides of buses, taxicab doors, roof mounts, subway platforms and trains, the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Promotional Mix 27Marketing Your Business Idea

Trade Fairs and Exhibitions  Trade fairs or exhibitions help companies in a specific industry showcase their latest products and services, study activities of rivals, examine recent trends and opportunities, contact potential clients, enhance the company image, network, and get new ideas.  Things to keep in mind when planning to attend trade fairs: location, what kind of people attend the fair, participation cost (participation fee, space rental, construction of advertising displays, travel, accommodations, promotional literature, giveaways), and staffing capabilities of the trade fair. Promotional Mix 28Marketing Your Business Idea

Marketing to Businesses (B2B)  As a Supplier: through agents, brochures/ catalogues, website, trade shows, telemarketing, direct mail.  Media used: Newspapers, magazines, cinema, radio, television, internet, and public relations releases  Third Parties: Family, friends, associates, acquaintances, customers, and competitors Copyright © 1995, 1997, 1999, 2000, 2001, 2002 Alan J. Zell, Ambassador of Selling, Portland, OR. All rights reserved. 29Marketing Your Business Idea

Marketing to Consumers (B2C)  Mass Media: Print, broadcast, internet, direct mail, telemarketing, fax & , public relations releases  Display Presentations (as applicable): Location, building, signage, windows/counters/shelf display, printed materials, website, attire, business environment  One-on-One: In person, letter, , fax, telephone  Follow-up: In person, letter, , fax, telephone Copyright © 1995, 1997, 1999, 2000, 2001, 2002 Alan J. Zell, Ambassador of Selling, Portland, OR. All rights reserved. 30Marketing Your Business Idea

You have reviewed:  Market Analysis Competitive Advantage Competitive Matrix  Market Strategies Marketing Mix  Pricing  Promotional Mix Marketing Your Business Idea31

32Marketing Your Business Idea

33Operations and HR in Your Business