It’s all about satisfying consumer wants & needs. Presented by: The Collaborative for Innovative Social Enterprise Development (CISED) 1

 Introduce the key components & process for developing a marketing plan  Understand how “positioning” shapes your overall marketing strategy  Introduce marketing concepts & terminology  Consider how the marketing plan supports the sales forecast 2

 Developing a marketing plan – breaking down the process  Positioning Strategy  5P’s (product, price, place, production, promotion)  Introduction of the sales forecast  Wrap-up & questions Attached is an excerpt of the CS marketing plan which I feel is ready for implementation. The attached includes the objectives, strategies, and related workplans – which are based on the audit that was done in late summer. If you would like to see the full plan or audit findings, pls let me know. Any feedback is welcome – thx. 3

Determine consumer needs /wants From market research (primary & secondary) Product/service features & benefits Analyze the competition Strengths & weaknesses. Direct & indirect. What opportunity exists for you? Determine who you will target What kind of people will buy from you? Why will they buy? Where can they be found? 4

Determine the best price Consider the different pricing strategies. Keep capacity in mind. Choose your distribution channel. What is the best way to get your product / service to the consumer? 5

Determine your production methods. ● How will your product/service by produced/delivered? ● Consider your capacity. Develop a promotional strategy ● How will people learn about your product/service? What is your USP? How does your social mission fit in? 6

7 POSITIONING Product Price Place Promotion SOCIAL GOALS CUSTOMERS COMPETITION Production

Criteria are defined by what consumers want: 8 Zellers, Sears, Cdn Tire, etc. Cyclelogik SVP, garage sales, hand- me-downs Price Quality Cycle Salvation re- Cycles

9  Who is the group of consumers that you want to serve?  Segment the market (demographic, geographic, etc)  Consider consumer needs and wants  Remember product/service features and benefits  Consumers must meet two criteria:  WILLING and ABLE to pay  psychographics & demographics

 Who else is selling a similar product/service?  Consider direct & indirect competition.  What are the competition’s strengths & weaknesses?  What will make you unique? 10

 PRODUCT  What are you selling?  Who will want to buy it?  What need / want will your product/service address? What is the consumer really buying?  How is that need/want being met now? 11

 Features are what your product/service offers.  They describe what you are selling.  Physical characteristics, what the product does.  Benefits are what the consumer gets from your product/service.  Each feature provides a benefit.  Consumers value benefits that help them meet their needs & wants. 12

FEATURES  Custom roasted coffee beans  Second-hand clothing & housewares at affordable prices  Proven training program  60 day warranty  Faster production BENEFITS  Better tasting coffee, personal taste preferences  Buy more for less, save on tax, reduce environmental footprint  Confidence in a program that works  Peace of mind  Save time & money 13

How big a role should they play? Case study example. 3 questions:  What is important to your customers?  What are they willing and able to pay for?  “Must have” or “nice to have”? 14

 Develop an elevator pitch:  Consider your target market profile  Remember features and benefits  What is your USP? 15

 Considerations:  Demand is more or less than expected  Timing (ramp up, seasonality, money, etc.)  Staff and volunteer needs  Physical space  Sufficient inventory  Quality control  Vehicles & equipment 16

17  Price  $100 of earned income can be achieved different ways ▪ 20 orders at $5 per order ▪ 5 orders at $20 per order ▪ 10 orders at different prices (sliding scale)  Different pricing strategies ▪ Consider the features & benefits offered (perceived value) ▪ Consider your costs & capacity ▪ Do you need to cover all your costs? ▪ Consider the competition

18  Low pricing to ensure a high volume of sales  maximize new product penetration  maximize current revenues  consumers are price sensitive  competition is strong or will increase  capacity is not limited

 High pricing to maximize profits  profit margins are high  consumers are less price sensitive  competition is weak or non-existent  capacity is limited  can signal high quality 19

 Pricing in accordance with the economic & competitive landscape  Pricing adjusts to various factors (ie seasonality)  Avoids price wars  Can adjust to capacity limitations

21 COST BASEDBUYER BASEDCOMPETITION BASED Cost-plus pricing (production cost plus desired profit margin) Psychological pricing (Consumer perception, popular price points) Competitive pricing (Based on the price movements of competitors) Break-even pricing (pricing to achieve break- even in desired time) Demand curve pricing (relationship between supply and demand)

 How do you plan to distribute your product/service?  Consider:  physical location, virtual location, delivery  use of intermediaries  accessibility & hours  alignment with your brand  need for place to promote 22

 The purpose of promotion is to inform, persuade and remind customers to buy a product/service.  Includes all the ways you communicate & motivate people to buy:  Sales, advertising, public relations, brochures, websites, packaging, direct mail, networking, signage, social media, yellow pages, annual reports, news releases, etc.  Goals, frequency & budget - important considerations 23

 Marketing versus Sales:  Marketing: strategy to get your product to market  Sales: direct interpersonal interactions with prospects & customers  Public Relations:  Activities to ensure a strong & positive public image  Publicity:  Media coverage 24

 Consider your audience  What do they read, listen to, watch?  Use a mixture of techniques  Consistent messaging & visual look  Frequency over time = reach  Track what’s working (or isn’t)  Plan your annual budget 25

 The marketing plan supports the sales forecast:  Is there a ramp-up period?  What is your monthly capacity?  Seasonal considerations?  Impact of promotional techniques?  Start to make assumptions  Calculate monthly sales projections for one year period 26

 Wrap-up  Questions  Evaluation  Next steps 27