2. Session 1 Developing a Marketing Strategy

3. Do you take time out to work on your business marketing? Does the business have a marketing plan? Does the business have a marketing budget? When did the business last review its marketing objectives & actions? Appraisal & Truth Questions

4. What is a Marketing Strategy? A Marketing strategy is a process that can allow a business to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a competitive advantage. Having a marketing strategy is the most effective way to define how the business will engage with its customers, prospects and competition. A strategy is different from a tactic. It is possible to write a tactical marketing plan – But without a sound, well-considered strategy the marketing plan will never reach its true potential.

5. What is a Marketing Plan? A Marketing Plan is a written document that details the actions necessary to achieve a specified marketing strategy. It can be for a product or service, a brand, or a product line. It can cover one year (referred to as an annual marketing plan), or cover up to 3-5 years. A marketing plan may be part of an overall business plan. Solid marketing plans are written upon a solid business & marketing strategy. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

6. Where is your business / company now? 1. The growth of the business is unplanned and reactive. 2. The business has never had a formalised approach to marketing, no plan just lots of great ideas. 3. The majority of our new business is coming from referrals and limited marketing activities. 4. The business will not be able to achieve growth targets unless it starts to proactively take action. Starting with sorting out a marketing strategy, to create clarity and develop a plan to drive the business forward. 5. The business customer base has become very diverse and so has the range of products/services. 6. The business recognises that unless new products / services are developed and matched to a target market it poses a potential risk to the health of the business.

7. What is the Purpose of Defining your Objectives & Developing a Marketing Strategy? Bring clarity Detail to the short, medium and long-term objectives of your business / company. Before you can develop a Marketing strategy, you need to identify your business / company objectives.

8. What are Objectives? They are what you OR your company wants to achieve i.e. Defining the Where, What, When and Why. Every Business needs Aims, Objectives or Goals to steer them. Identifying and agreeing the business goals ensures that everyone is working to the same goal and in the same direction. It also ensures that the business does not get sidetracked.

9. The following questions help define strategic business objectives Where do you want to go? You may have a specific idea of where you want to drive your business forward. You may be starting out and have a clean piece of paper to work on or you may have some thoughts and ideas but need help to shape them. Try to bullet point them here as a starting point to work from. How can we get there? Think about how you could move your ideas and thoughts forward. Don’t worry if you find this difficult to pin point exactly, think of: SHORT / MEDIUM / LONG TERM objectives and goals. How can we/I control it? Change, diversification, growth are all big things to get to grips with. So think of small ways you could manage the steps you have identified to move your business / company forward. At this stage it is vital to build in good operational structures / systems.

10. To develop your marketing strategy you will need to think about the: Strengths of the Business Weaknesses of the Business Opportunities you can see for the Business- Growth/Diversify/Change Threats that might potentially harm the Business – Finance/Staff turnover

11. What is a PEST Analysis? Understanding the environment your business operates in is a key part of planning. A PEST analysis helps you to identify the main opportunities and threats in your market: Political and legal changes such as new regulations. Economic factors such as interest rates, exchange rates and consumer confidence. Social factors such as changing attitudes and lifestyles, and the ageing population. Technological factors such as new materials and growing use of the Internet.

12. BREAK OUT SESSION 1 Situational Analysis? - Where is your business / company now? - Define your business / company objectives - SWOT / PEST analysis Please see Exercise 1 on your work sheet 15 Mins

13. HOME WORK Task 1: Review your business objectives for 2007 and plan a list of detailed objectives for 2008 / 2009. Benefit: By doing this task you will documented your business goals and objectives allowing you to forward plan and keep you accountable.

14. Review of products / services Does your business offers a product? Does your business provide a service? Does your business offer both? Are you B2B / B2C or Both?

15. The Boston Matrix

16. Problem Children These are products with a low share of a high growth market. They consume resources and generate little in return. They absorb most money as you attempt to increase market share. Do you have any Problem Children in your business portfolio? Stars These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income. Keep and build your stars. Do you have a Stars in your business portfolio? Look for some kind of balance within your portfolio. Boston Matrix - Explained

17. Dogs These are products with a low share of a low growth market. These are the canine version of 'real turkeys!'. They do not generate cash for the company, they tend to absorb it. Get rid of these products. Do you have a Dog in your business portfolio? Cash Cows These are products with a high share of a slow growth market. Cash Cows generate more money than is invested in them. So keep them in your portfolio of products for the time being. Do you have any Cash Cows in your business portfolio?

18. The Ansoff Matrix

19. Ansoff Matrix - Explained Market Penetration In this section you would market existing products to existing customers. This means increasing your business / company revenue by for example; promoting the product, repositioning the brand, and so on. However, the product is not altered and you would not seek any new customers. Market Development In this section you would market an existing product range in a new market place. This means that the product remains the same, but it is marketed to a new audience. For example: exporting the product, or marketing it in a new region, are examples of market development.

20. Product / Service Development This is a new product / service to be marketed to existing customers. Here you would develop and innovate new product / services to replace existing ones. Such products / services would then be marketed to existing customers. This often happens with Car Manufacturers - Existing models are updated or replaced and then marketed to existing customers I.E. New Free Lander replaces old Free Lander. Diversification This is where you would market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that you remain in a market or industry with which you are familiar. For example, a soup manufacturer diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we have no previous industry nor market experience. For example a soup manufacturer invests in the rail business. Ansoff Matrix - Explained

21. BREAK OUT SESSION 2 Products / Services Review? - Boston Matrix balance - Ansoff Matrix review Please see Exercise 2 on your work sheet 10 Mins

22. HOME WORK Task 2: Review your Boston Matrix balance. Review your existing products / services and look at developing new Cash cows, Stars and eradicate any Dogs. Benefit: By doing this task you will identify the most profitable products and services in your portfolio.

23. Now Lets Develop your Marketing Strategy

24. Types of Marketing Strategies: There are four types of market dominance strategies: Leader – Nike/Addidas or Microsoft/Apple Challenger – Trident Gum taking on Gum leaders Wrigleys Follower – Virgin has followed into many markets such as trains/flights/online music stores they improve on services and compete on price often to get into a lucrative marketplace. Nicher – TESCO used to be niche leaders for onlnie shopping – Now they are leaders.

25. Your Business A Marketing Strategy will help you define a USP (Unique Selling Point) – What is your business USP? “ So what does YOUR BUSINESS want to be famous for or remembered for?” DON’T CONFUSE – a marketing strap line for a USP. Remember a USP is like a Vision Statement - a statement of intent, like a guarantee. So if you LOUDLY proclaim to be the best business on all of your marketing material – think about the deliverable elements and accountability.

26. Example of a Basic Marketing strategy Business X - "Will use low cost products to attract customers. Once our business, via our low cost products, has established a relationship with the customers, our business will sell additional, higher-margin products and services that enhance the customer's interaction with the low-cost products and services.“ The short Term goals of the coffee pit stop are to attract 20 new customers per day over a six month period. When the business has established a rapport with customers and we have a client base buying the main line coffe product (Cash Cow) of £1.50-£2 we aim to in the Mid Term sell higher margin products i.e. sandwiches / cakes to clients to increase turn over and profits. Long term we intend to develop a client base for our sandwich delivery service (Star) for bulk office orders that can be delivered to the desk!!

27. BREAK OUT SESSION 3 Your Marketing Strategy? - Select the type(s) of Marketing Strategies the business will employ - Create a basic Marketing Strategy for your business Please see Exercise 3 on your work sheet 15 Mins

28. HOME WORK Task 3: Create a basis Marketing Strategy for all of your products / services. Benefit: By doing this task you will have a greater understanding on how to promote each individual product / service to the correct target market.

29. HOME WORK REVIEW Task 1: Review your business objectives for 2007 and plan a list of detailed objectives for 2008 / 2009. Task 2: Review your Boston Matrix balance. Review your existing products / services and look at developing new Cash cows, Stars and eradicate any Dogs. Task 3: Create a basis Marketing Strategy for all of your products / services.

30. What have you learnt today? - Identified current business situation - Set basic business objectives - Identified your profitable products / services - Identified target markets - Identified different types of marketing strategy - How to write a basic marketing strategy for the business

31. Thank You For Attending Next Month: Devising a Marketing Plan SOSTAC