Marketplace for Nutritious Foods Marketing training for Businesses within the CoP Welcome deck 22nd November- 24th November Author : Intellecap.

Marketplace for Nutritious Foods Marketing training for Businesses within the CoP
Welcome deck 22nd November- 24th November Author : Intellecap

1 2 3 Who are We? a Pioneer Wealth of Expertise Strong Reputation
Intellecap is a pioneer in providing innovative business solutions that help build and scale profitable and sustainable enterprises dedicated to social and environmental change. Our unique positioning at the intersection of social and commercial business sectors allows us to attract and nurture intellectual capital that combines the business training of the commercial world with the passion and commitment of the social world to shape distinctive solutions. 3 Strong Reputation Intellecap is a pioneer in providing innovative business solutions that help build and scale profitable and sustainable enterprises dedicated to social and environmental change. Founded in 2002, Intellecap has grown into a Group with more than 900 employees and 300 engagements across 25 countries. Our unique positioning at the intersection of social and commercial business sectors allows us to attract and nurture intellectual capital that combines the business training of the commercial world with the passion and commitment of the social world to shape distinctive solutions. Founded in 2002, Intellecap has grown into a Group with more than 900 employees and 300 engagements across 25 countries.

The Facilitators Arielle Molino Martin Kiilu Mercy Atiang’ Joshua Haro

We are animals! Bull Wild Dog Eagle Hyena

what about YOU?

Equip you with marketing tools for use in your business
Goals of the Workshop Equip you with marketing tools for use in your business Equip you with a full understanding of marketing as an integral function of your business 1 To provide actionable marketing strategies to further enhance your business acumen 2 3

The StartUp Curve

DAY 1(One) Agenda Time & Topic 8:00 9:00 10:00 10:30 11:00 12:15 1:15
3:15 3:45 5:15 5:30 Welcome & Introduction Organization Vision Introduction to Marketing Break Setting your marketing objectives Customer Analysis Part 1 Lunch Customer Analysis Part 2 Defining your Value Proposition Wrap Up

DAY 2(Two): Agenda Topic + Time 8:30 9:00 10:15 10:45 12:00 1:00 2:00
2:30 4:00 4:30 5:30 5:45 Welcome, recap & energizer Market Analysis Part 1 Break Market Analysis Part 2 Competitor analysis Lunch The “How” in Marketing Defining your Product Promoting your Product Wrap Up

DAY 3(Three): Agenda Topic + Time 8:30 9:00 10:00 10:45 11:15 12:45
1:45 2:30 3:00 4:00 4:30 5:00 Welcome, recap & energizer Placing your Product (Distribution) People Break Pricing for Fit Lunch Financing the Plan Synthesizing the 5Ps Wrap-Up and participant feedback

Activity The Parking Lot

Setting Ground Rules, Goals and Expectations
Activity Setting Ground Rules, Goals and Expectations

2. Organization Vision November 2018 Author : Intellecap

Vision vs Mission Mission Vision
Mission statement describes the current state of an organization and its primary goals or objectives. It provides detailed information about what the organization does, how it does it, and who it does it for. Unlike the vision statement, it is short-term in nature. Vision Vision statement describes the future state of the organization, i.e., what the organization hopes to become in the future. It also communicates the purpose of the organization to the employees and other stakeholders and provides them with the inspiration to achieve that purpose. Vision Statements – paint the picture of the future the company desires Mission Statement - describes how the company will attain its vision The Mission statement usually is developed first as it speaks to the current state of affairs and the envisaged near term actions to be taken. The Vision statement is fed by the mission statement

Their Importance Defines the purpose of the organization and instill a sense of belonging and identity to the employees. Provides the direction that is to be followed by the organization while the vision statement provides the goal or the destination) to be reached by following this direction. Aligns the resources of an organization towards achieving a common objective The vision and mission statements provide a for increase efficiency and productivity as everyone is working towards a single purpose. Supports Decision Making, ensuring that decisions made are aligned with what the organization hopes to achieve.

Share your Vision & Mission Statement
Activity Share your Vision & Mission Statement Check for ambiguous vision and mission statements that can apply to any company or industry e.g. be the best in ….., be the market leader in … The mission and vision statement should be particular to the business

Setting your Mission Statement
What’s your purpose and values? Who is your customer? Your mission statement should be concise capturing your goals, purpose and your "why." What’s your relationship with employees? Mission Statement Why are you better than the competition? Define your purpose. Why did you choose this line of business? • What is the best part of your business, and what keeps you going? Who do you serve? • Who is your ideal buyer? • Who are your customers? • How do you treat your customers and employees, and why is that important to you? Establish your reputation. • What do you do better than anyone else? Why should people buy from you? • What do you want your legacy to be? What do you want to be known for? • What keeps your competition up at night — what’s your “secret sauce?" • What do you stand for? Measure your success. • What does success look like to you? • What kind of goals have you established to make your business succeed? How will you measure them and how will you know when you've arrived? What does success look like to you?

Vision Statement Project 5-10 years in the future.
Dream big and focus on success Use the present tense Infuse it with passion and emotion Align it with your business values and goals Have a plan to communicate your vision statement to your employees

Vision Statement: continued
Short Two sentences at an absolute maximum. It’s fine to expand on your vision statement with more detail, but you need a version that is punchy and easily memorable. Simple Simple enough for people both inside and outside your organization to understand. No technical jargon, no metaphors, and no business buzz-words if at all possible! 1 2 Specific Specific to your business and describe a unique outcome that only you can provide. Ambitious Ambitious enough to be exciting but not too ambitious that it seems unachievable. 3 4 Aligned Aligned to the Values that you want your people to exhibit as they perform their work. Clear Do not use words that are open to interpretation. 5 6

Refine your Mission & Vision Statements
Activity Refine your Mission & Vision Statements

Incorporate Mission & Vision into Implementation plan
Activity Incorporate Mission & Vision into Implementation plan

3. Introduction to marketing
Marketplace for Nutritious Foods Marketing training for Businesses within the CoP 3. Introduction to marketing November 2018 Author : Intellecap

Definition of marketing
Components of a business Finance Strategy Accounting Human Resources Business Operations Marketing MARKETING One of the major components of the fundamentals of business management. It is defined as the promotion of business products or services with the customer as the focus. Some of the marketing concepts include: Segmentation, targeting, differentiation and positioning

Definition of marketing: Key marketing concepts
Pricing Who’s your customer People The how in marketing Product Promotion Marketing & Implementation plan Place - Delivering the product Where’s the market

Activity Any experts in the room? Sales vs Marketing

Sales Vs Marketing 01 Sales requires a push strategy whereas marketing requires a pull strategy 02 Both sales and marketing team could sometimes be managed by the same team 03 Marketing is usually long term compared to sales which is short term

Sales Vs marketing Component Marketing Sales Definition Strategy Focus
A longer term concept that is forward looking strategy to identify and understand customer needs, influence customer perceptions. Usually a short term engagement driven by the need to make a sale. Sales targets that are achievable are usually set within finite (weekly/ quarterly/ annually) timelines Strategy Pull Push Focus Customers needs Sellers profit The two concepts are closely related. In fact many businesses, have both marketing and sales managed by the same department. For example, sales strategies need to incorporate the same messaging as the marketing messages in order to be effective and maximize the chances of successfully making a sale.

4. Setting your Marketing Objective
Marketplace for Nutritious Foods Marketing training for Businesses within the CoP 4. Setting your Marketing Objective November 2018 Author : Intellecap

Why Set Objectives? Marketing objectives set out what a business wants to achieve from its marketing activities. A good plan is governed by the marketing objectives the company wants to achieve. However it is important to set effective objectives. The importance of setting effective marketing objectives include: Ensure functional activities consistent with corporate objectives. Provide a focus for marketing decision-making and effort. Provide incentives for marketing team and a measure of success / failure. Establish priorities for marketing resources and effort. 04 03 02 01

5S’s Objectives Video: SOSTAC, How to write the perfect plan

Setting marketing Plan: 5S’s methodology
Marketing objectives should be based on your business’s strength & weakness. Save Sales Service Speak Sizzle Customer acquisition & retention targets Quantified efficiency gains Customer satisfaction targets Customer Engagement This is a methodology that is used as part of the SOSTAC method to plan. SOSTAC® is a planning framework that can be used to structure all types of plans from business, to marketing strategy and communications plans through to Digital Marketing Plans. SOSTAC® stands for Situation, Objectives and Strategy, Tactics, Action and Control. Value addition

Setting marketing objectives
Types NUMERIC These objectives can be quantified and are usually short to mid term focused. They can be easily measures as well. STRATEGIC These are goals that cannot be quantified and usually long term in nature. They spell out the position the business wants to be in. Increase market share Increase total revenues Increase the number of total customers Add distribution channels Overtake the competitor Build brand awareness 01 02 03 04 05 06 Examples Marketing objectives set out what a business wants to achieve from its marketing activities. They need to be consistent with overall aims and objectives of the business. A good plan is governed by the marketing objectives the company wants to achieve. However it is important to set effective objectives. The importance of setting effective marketing objectives include: Ensure functional activities consistent with corporate objectives Provide a focus for marketing decision-making and effort Provide incentives for marketing team and a measure of success / failure Establish priorities for marketing resources and effort Write these on a flip chart. Participants should identify which ones are numeric and which ones are strategic.

Setting marketing objectives
STRATEGIC GOALS NUMERIC GOALS Increase market share Gross (total) revenue 03 01 04 02 03 01 04 02 Overtake competitor Revenue from new customers Better represent value proposition Revenue from existing customers Build brand awareness Number of new customers 07 05 08 06 Add distribution channels Number of total customers 07 05 08 06 Lorem Ipsum Lorem ipsum dolor sit amet, nibh est. A magna maecenas, quam magna nec quis, lorem nunc.. Create strategic partnerships Goals by distribution channel Examples of the setting both numeric Vs strategic goals is as per the slide Lorem Ipsum Lorem ipsum dolor sit amet, nibh est. A magna maecenas, quam magna nec quis, lorem nunc.. Create a lead generation system Goals by customer/client type Enhance online selling ability Goals by product/service line

SMART marketing objectives
SPECIFIC Each objective must define a specific outcome. Understand who, where, what, which and how of the product and or service you intend to market. MEASURABLE The objectives set should have a quantitative and qualitative attributes. Track the set goals depend on the metric and it could be manual or using a marketing tool ACTIONABLE & ACHIEVABLE The staff must agree that the marketing goals are attainable, within the specific time period and that they have the tools and skills needed to reach the objectives REALISTIC Goals must be formed in the context of current economic conditions and realities of the business climate. TIME BOUND Set a real deadline that is reasonable and one that all the team members have consented to. Writing SMART objectives also helps you to think about and identify elements of the evaluation plan and measurement, namely indicators and performance measures Provide the SMART tool for participants to fill Some of the poorly defined objective would be; 1.To increase sales 2.I want more awareness of my product 3.I want bigger list To avoid these pitfall be SMART. For example: 1.I want to increase my sales by 20% by the end of I want to grow my mailing list to 5000 subscribers in two months Ad-lib: By_____/_____/_____, [WHEN—Time bound] ___________ [WHO/WHAT—Specific] From __________ to __________ [MEASURE (number, rate, percentage of change and baseline)—Measurable] Other examples of SMART objectives can be found here:

Activity Note down your marketing objectives and partner up to conduct a peer-to-peer review of the marketing objectives

Incorporate your marketing objectives into the Implementation plan
Activity Incorporate your marketing objectives into the Implementation plan

5. Customer Analysis November 2018 Author : Intellecap

Building your customer profile/ persona
Building the profile helps you build a buyer/ customer persona. Personas are the foundation for all tactical marketing and sales strategies and plans. Demographics Give intricate details of the customer based on the segment Actionable Insights Think about how your products/ services will reach your market/potential clients. First select target markets that are easily reachable at the lowest costs using efficient strategies Psychographics Think about the behavior and beliefs of your customers. Building a customer profile helps you get into the head of your customers, understand their pain points, their motivations, and how they make purchasing decisions. Building Customer profiles requires two types of segmentation (vividly described in the above slides) 1. Demographics — physical characteristics, including age, gender, education, occupation, and income 2. Psychographics — behavior and beliefs, including personality, hobbies, style, and humor Both these must be used in combination Actionable insights (Described more on the slide place/distribution)

Customer archetypes Are you confident enough to draw a day in the life of your customer- in detail? Who are they? Who influences them? Customer archetypes are also referred to as Personas. Personas are fictional characters created to represent the different user types within a targeted demographic, attitude and/or behavior set that might use a site, brand or product in a similar way. Personas are an integral part of building block #1 in business model generation. Personas are a specific outline of one customer within the customer segment to be targeted throughout the next 8 steps in the business model. Personas literally drive every step in the business model. Example: Potential customer for street food Boring version My customer is an year-old working youth with incomes of KES 20,000 per month from middle class families. Customer archetype Njeri is 23 year old intern at Intellecap working 40 hours a week with the hope of being absorbed as a full time employee after she formally graduates in a few months. She commutes daily from Lang’ata as she still lives with her parents. She is yet to pay off her HELB loan and she feels like her income is not necessarily enough to afford lunch that costs approximately KES 200 per day. What matters to them? How do they buy?

Building the customer profile: Activity
Build a customer profile on the persona template

Journey mapping Journey mapping starts by compiling a series of user goals and actions into a timeline skeleton. Next, the skeleton is fleshed out with user thoughts and emotions in in order to create a narrative. Finally, that narrative is condensed into a visualization used to communicate insights that will inform design processes. Note: Customer journey mapping focusses on the experience of the customer while the persona focusses on the person Journey mapping combines both storytelling and visualization. And over time ,you should flesh out your customer journey mapping The journey map is essential because: Shift a company’s perspective from inside-out to outside-in. If an organization lets internal processes and systems drive decisions that affect customer experience, a journey map could help turn the culture of that organization by refocusing on the thoughts, actions and emotions of customers Break down silos to create one shared, organization-wide vision. Because journey maps create a vision of the entire customer journey, they become a tool for creating cross-department conversation and collaboration Assign ownership of key touchpoints to internal departments. Often, areas of inconsistencies and glitches in customer journeys exist simply because no internal team has been tasked with ownership of that element. Target specific customers. Journey maps can help teams focus in on specific personas or customers, whether that means understanding differences or similarities across the journeys of multiple personas, prioritizing a high-value persona or exploring ways to target a new type of customer. Understand quantitative data. If you are aware through analytics or other quantitative data that something specific is happening—maybe online sales are plateauing or an online tool is being underutilized—journey mapping can help you find out why

Journey mapping: Dos and don’ts
Engage others with the end product Don’t jump to visualization Collaborate with others Base it on the truth Establish the why and the what 05 04 03 02 01 Establish the “why and the “what”. First, identify the business goal that the journey map will support. Base it on truth. Journey maps should result in truthful narratives, not fairy tales. Collaborate with others. The activity of journey mapping (not the output itself) is often the most valuable part of the process, so involve others. Don’t jump to visualization. The temptation to create an aesthetic graphic or jump to design can lead to beautiful yet flawed journey maps. Make sure the synthesis of your data is complete and well-understood before moving to creating the visual. Engage others with the end product. Don’t expect to get “buy-in” and foster interest in your journey map by simply sending a lovely graphic as an attachment. Make it a living interactive document that people can be a part of

Activity: Day in the life of a customer
Journey mapping Activity: Day in the life of a customer

Gathering Customer Feedback
Ice Breaker Gathering Customer Feedback

Listening to the customer : The Why…
01 03 05 Reduces chances of miscommunication & builds trust Empathy begins with active listening. Customers have the ultimate buying power 02 04 Feedback is a form of market research 06 Feedback helps you improve Customers like to feel valued What tools… Online communities Suggestion boxes Mailing lists Social media Active listening to the customer is important: Empathy begins with active listening. The absence of empathy is a prominent cause of service failure Live chats & polls Call Backs Customer surveys Discussion forums

Listening to the customer
The How… Step 01 Step 02 Step 03 Step 04 Listen Analyze Engage Take Action

How to interview customers
Interviewing customers is a skill that takes practice to get good at it. A good interviewer is a good detective. Someone that looks for the facts with a critical mind, and does not look to confirm his or her own beliefs. You have to approach interviews with a long-term mindset. It is very likely your idea is not viable and you need to look for that in your interviews. Do not rush the interviewing stage. Interviewing customers takes time and skill, but is the fastest and most powerful way to learn if your business will be viable.

How to interview customers
Get facts not opinions I didn’t go to the gym last year. I plan to go several times a week. How often did you go to the gym last year? How often do you want to go to the gym this year? Q A A Q Opinions are not facts. Sherlock Holmes does not ask people, "Who do you think the murderer is?" He asks them, "Where were you on the night of the murder?“ The biggest mistakes entrepreneurs make when interviewing customers is asking leading questions. If we approach interviewing in order to confirm our own beliefs, we are surely to find what we are looking for. But this will lead to disaster for our startup. Leading questions are any questions that ask for feedback or opinions. These questions are hypothetical in nature and can be helpful to hone in on facts, but feedback should be taken with a grain of salt. We can not trust the success of our business on a customer's feeling about something. But we can trust a customer's current or past behavior. What a customer has done in the past, such as recent stories about their experience of a problem, will tell us what they will do in the future and whether or not our business can be viable.

DO! DON’T! Interviewing Nuggets
As questions about specific past experiences the customer has had: “The last time you…” “When? How? Why?” Ask leading questions “Would you…” “Do you…” Focus on feelings or opinions Create an interview script with your team DO! Ask only the questions on your script Keep it conversational and open-ended DON’T! Be afraid to do it again DO: Create an interview script with your team. This is meant to make your interviews consistent and focused around your riskiest assumption. It's also to help your team avoid asking leading questions. GOOD questions ask about specific past experiences the customer has had. They start with "the last time you..." and ask when, how, and why. You should generously write down observations about your customer in the notes. It's not enough to just have them answer the questions, you want to also write down as much about their background and what type of person they are. By knowing your customers background, you can better interpret the stories and experiences they share with you. DON’T: BAD questions start with "would you..." or "do you..." and focus around people's feelings and opinions. But keep in mind your interview script is not sacred, it is just a starting point. If you conduct interviews and only ask the questions on your script, you will surely miss the most important learnings. Good interviews are a conversation with your customer and are meant to be open-ended. Take good notes, not just the answers but also observations

Check for Understanding
Activity Check for Understanding

Gathering Customer Feedback
Video: The Experiment Board

Incorporate in to the Implementation plan
Activity Incorporate in to the Implementation plan

6. Defining Your Value Proposition
Marketplace for Nutritious Foods Marketing training for Businesses within the CoP 6. Defining Your Value Proposition November 2018 Author : Intellecap

Clarifying your Value Proposition
Video: The Value Proposition Canvas

CLARIFYING YOUR VALUE PROPOSITION
Before we get into the full business model canvas, we are going to deep dive into two segments – the value proposition and the customer segment. Many enterprises we’ve worked with don’t have a clear value proposition, or a clear challenge that they are addressing for customers. Without this as a basis, your BMC will not be effective.

YOUR VALUE PROPOSITION
The Value Proposition Canvas helps to systematically understand what customers want and it creates products and services that perfectly match their needs. It collects customer information in a simple way that suits their needs and requirements which allows a more effective design of business models. When designing new business models, organisations are usually focused internally and they are inclined to forget to look at their customers externally. Anyone can think of good and creative ideas, but the main idea is to design added value for a customer on paper. By using the Value Proposition Canvas organizations identify customer needs in a visual and structured way as a result of which they design a value proposition that perfectly reflects their customer requirements.

Observe CUSTOMER PROFILE
By starting with your customer, focus on what you can observe – this has nothing to do with your product or service, but everything to do with your customers. Understand them, know them – their behaviors, the status quo, what pains them, what would they desire in a different situation. Everything on this side of the canvas should be clearly observed behavior from your customers. Observe

CUSTOMER JOBS Jobs describe the things your customers are trying to get done in their work or in their life. A customer job could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. In the box ‘Customer Jobs’ you gather all the customer needs, the problems that they are trying to solve and the tasks they are trying to perform or complete. Jobs represent the tasks the customer wants get done and which call for the help of a supplier. This is how an organization knows whether their products and/or services are in line with the jobs of the customer. Essentially, it is about the needs and requirements of the customer and his demands. Furthermore, there might be several ‘jobs’ at the same time. What is the one thing that your customer couldn’t live without accomplishing? What are the stepping stones that could help your customer achieve this key job? What are the different contexts that your customers might be in? How do their activities and goals change depending on these different contexts? What does your customer need to accomplish that involves interaction with others? What tasks are your customers trying to perform in their work or personal life? What functional problems are your customers trying to solve? Are there problems that you think customers have that they may not even be aware of? What emotional needs are your customers trying to satisfy? What jobs, if completed, would give the user a sense of self-satisfaction? How does your customer want to be perceived by others? What can your customer do to help themselves be perceived this way? How does your customer want to feel? What does your customer need to do to feel this way? Track your customer’s interaction with a product or service throughout its lifespan. What supporting jobs surface throughout this life cycle? Does the user switch roles throughout this process?

Fill out relevant Customer Jobs
Short Activity Fill out relevant Customer Jobs In the box ‘Customer Jobs’ you gather all the customer needs, the problems that they are trying to solve and the tasks they are trying to perform or complete. Jobs represent the tasks the customer wants get done and which call for the help of a supplier. This is how an organization knows whether their products and/or services are in line with the jobs of the customer. Essentially, it is about the needs and requirements of the customer and his demands. Furthermore, there might be several ‘jobs’ at the same time. What is the one thing that your customer couldn’t live without accomplishing? What are the stepping stones that could help your customer achieve this key job? What are the different contexts that your customers might be in? How do their activities and goals change depending on these different contexts? What does your customer need to accomplish that involves interaction with others? What tasks are your customers trying to perform in their work or personal life? What functional problems are your customers trying to solve? Are there problems that you think customers have that they may not even be aware of? What emotional needs are your customers trying to satisfy? What jobs, if completed, would give the user a sense of self-satisfaction? How does your customer want to be perceived by others? What can your customer do to help themselves be perceived this way? How does your customer want to feel? What does your customer need to do to feel this way? Track your customer’s interaction with a product or service throughout its lifespan. What supporting jobs surface throughout this life cycle? Does the user switch roles throughout this process?

CUSTOMER PAINS Pains describe anything that annoys your customers before, during and after trying to get a job done, or simply prevents them from getting a job done. Pains also describe risks, that is, potential bad outcomes, related to getting a job done badly or not at all. In the box ‘Customer Pains’ you gather all the negative emotions and undesired costs, situations and risk which the customer could experience before, during and after getting the job is done. Be Clear about WHY these jobs are painful. How do your customers define too costly? Takes a lot of time, costs too much money, or requires substantial efforts? What makes your customers feel bad? What are their frustrations, annoyances, or things that give them a headache? How are current value propositions under performing for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite? What are the main difficulties and challenges your customers encounter? Do they understand how things work, have difficulties getting certain things done, or resist particular jobs for specific reasons? What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust, or status? What risks do your customers fear? Are they afraid of financial, social, or technical risks, or are they asking themselves what could go wrong? What’s keeping your customers awake at night? What are their big issues, concerns, and worries? What common mistakes do your customers make? Are they using a solution the wrong way? What barriers are keeping your customers from adopting a value proposition? Are there upfront investment costs, a steep learning curve, or other obstacles preventing adoption?

Fill out relevant Customer Pains
Short Activity Fill out relevant Customer Pains In the box ‘Customer Pains’ you gather all the negative emotions and undesired costs, situations and risk which the customer could experience before, during and after getting the job is done. Be Clear about WHY these jobs are painful. How do your customers define too costly? Takes a lot of time, costs too much money, or requires substantial efforts? What makes your customers feel bad? What are their frustrations, annoyances, or things that give them a headache? How are current value propositions under performing for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite? What are the main difficulties and challenges your customers encounter? Do they understand how things work, have difficulties getting certain things done, or resist particular jobs for specific reasons? What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust, or status? What risks do your customers fear? Are they afraid of financial, social, or technical risks, or are they asking themselves what could go wrong? What’s keeping your customers awake at night? What are their big issues, concerns, and worries? What common mistakes do your customers make? Are they using a solution the wrong way? What barriers are keeping your customers from adopting a value proposition? Are there upfront investment costs, a steep learning curve, or other obstacles preventing adoption?

CUSTOMER GAINS Gains describe the outcomes and benefits your customers want. Some gains are required, expected, or desired by customers, and some would surprise them. Gains include functional utility, social gains, positive emotions, and cost savings. In the box ‘Customer Gains’ you gather all the customer’s benefits and desires, and may span personal, functional, or economical etc. For example, this box could include positive emotions, functional requirements, or specific cost savings. The gain is the positive outcome the customer envisages. It is about what the customer expects and what would surprise him. This could be cost savings, user friendliness, more turnover, service, advice and a pleasant working environment. By responding well to the gain, suppliers can make a difference. Which savings would make your customers happy? Which savings in terms of time, money, and effort would they value? What quality levels do they expect, and what would they wish for more or less of? How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect? What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership? What positive social consequences do your customers desire? What makes them look good? What increases their power or their status? What are customers looking for most? Are they searching for good design, guarantees, specific or more features? What do customers dream about? What do they aspire to achieve, or what would be a big relief to them? How do your customers measure success and failure? How do they gauge performance or cost? What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality??

Fill out relevant Customer Gains
Short Activity Fill out relevant Customer Gains In the box ‘Customer Gains’ you gather all the customer’s benefits and desires, and may span personal, functional, or economical etc. For example, this box could include positive emotions, functional requirements, or specific cost savings. The gain is the positive outcome the customer envisages. It is about what the customer expects and what would surprise him. This could be cost savings, user friendliness, more turnover, service, advice and a pleasant working environment. By responding well to the gain, suppliers can make a difference. Which savings would make your customers happy? Which savings in terms of time, money, and effort would they value? What quality levels do they expect, and what would they wish for more or less of? How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect? What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership? What positive social consequences do your customers desire? What makes them look good? What increases their power or their status? What are customers looking for most? Are they searching for good design, guarantees, specific or more features? What do customers dream about? What do they aspire to achieve, or what would be a big relief to them? How do your customers measure success and failure? How do they gauge performance or cost? What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality??

VALUE MAP Difference between opportunity driven approach and problem driven: Be more excited by the problem and not your solution for it Design

Products & Services are what a value proposition is built around.
It represents a bundle of products and services that helps your customer get either a functional, social, or emotional job done, or helps them satisfy basic needs. In the box ‘Product & Services’ you list all the products and services which your value proposition is build around. This includes for example the services that you offer or the help the customer receives either a functional, social, or emotional.

PAIN RELIEVERS Pain relievers describe how exactly your products and services alleviate specific customer pains. They explicitly outline how you intend to eliminate or reduce some of the things that annoy your customers before, during, or after they are trying to complete a job or that prevent them from doing so. In the box ‘Pain Relievers’ you describe how your products addresses the challenges needs and the pains of the customer, how you eliminate negative emotions, undesired costs or avoidable situations. The simple tip here is to end your Pain Relievers with a noun to describe a feature of your product. Could your product/service: ... produce savings? In terms of time, money, or efforts. ... make your customers feel better? By killing frustrations, annoyances, and other things that give customers a headache. ... fix under-performing solutions? By introducing new features, better performance, or enhanced quality. ... put an end to difficulties and challenges your customers encounter? By making things easier or eliminating obstacles. ... wipe out negative social consequences your customers encounter or fear? In terms of loss of face or lost power, trust, or status. ... eliminate risks your customers fear? In terms of financial, social, technical risks, or things that could potentially go wrong. ... help your customers better sleep at night? By addressing significant issues, diminishing concerns, or eliminating worries. ... limit or eradicate common mistakes customers make? By helping them use a solution the right way. ... eliminate barriers that are keeping your customer from adopting value propositions? Introducing lower or no upfront investment costs, a flatter learning curve, or eliminating other obstacles preventing adoption.

Fill out relevant Customer Pains
Short Activity Fill out relevant Customer Pains In the box ‘Pain Relievers’ you describe how your products addresses the challenges needs and the pains of the customer, how you eliminate negative emotions, undesired costs or avoidable situations. The simple tip here is to end your Pain Relievers with a noun to describe a feature of your product. Could your product/service: ... produce savings? In terms of time, money, or efforts. ... make your customers feel better? By killing frustrations, annoyances, and other things that give customers a headache. ... fix under-performing solutions? By introducing new features, better performance, or enhanced quality. ... put an end to difficulties and challenges your customers encounter? By making things easier or eliminating obstacles. ... wipe out negative social consequences your customers encounter or fear? In terms of loss of face or lost power, trust, or status. ... eliminate risks your customers fear? In terms of financial, social, technical risks, or things that could potentially go wrong. ... help your customers better sleep at night? By addressing significant issues, diminishing concerns, or eliminating worries. ... limit or eradicate common mistakes customers make? By helping them use a solution the right way. ... eliminate barriers that are keeping your customer from adopting value propositions? Introducing lower or no upfront investment costs, a flatter learning curve, or eliminating other obstacles preventing adoption.

GAIN CREATORS Gain Creators describe how your products and services create customer gains. They explicitly outline how you intend to produce outcomes and benefits that your customer expects, desires, or would be surprised by, including functional utility, social gains, positive emotions, and cost savings. In the box ‘Gain Creators’ you describe how your product creates customer gain, how it offers an added value to your customer. How can we create a gain that the customer hasn’t thought of but, if they see it, they will think it is amazing? Which savings would make your customers happy? Which savings in terms of time, money, and effort would they value? What quality levels do they expect, and what would they wish for more or less of? How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect? What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership? What positive social consequences do your customers desire? What makes them look good? What increases their power or their status? What are customers looking for most? Are they searching for good design, guarantees, specific or more features? What do customers dream about? What do they aspire to achieve, or what would be a big relief to them? How do your customers measure success and failure? How do they gauge performance or cost? What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality??

Fill out relevant Gain Creators
Short Activity Fill out relevant Gain Creators In the box ‘Gain Creators’ you describe how your product creates customer gain, how it offers an added value to your customer. How can we create a gain that the customer hasn’t thought of but, if they see it, they will think it is amazing? Which savings would make your customers happy? Which savings in terms of time, money, and effort would they value? What quality levels do they expect, and what would they wish for more or less of? How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect? What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership? What positive social consequences do your customers desire? What makes them look good? What increases their power or their status? What are customers looking for most? Are they searching for good design, guarantees, specific or more features? What do customers dream about? What do they aspire to achieve, or what would be a big relief to them? How do your customers measure success and failure? How do they gauge performance or cost? What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality??

Fill out a Value Proposition ad-lib
Activity Fill out a Value Proposition ad-lib Goal is to fill every box on the canvas Refer to the printed instruction sheet for what goes into each box Keep it simple

Value Proposition Ad- Lib
Our_____________________________________________ Helps____________________________________________ Who wants to_______________ By__________________________ _______________________ (reducing, avoiding) (customer pain) And _________________________ ______________________ (Increasing, enabling) ( customer gain) Unlike________________________________________________ (competing value proposition) (Company) (Customer Segment) (jobs to be done) Activity to clearly bring out your product value proposition

Work together on your value proposition canvas
GROUP WORK Work together on your value proposition canvas Take turns to work on each person’s business Actively listen and give feedback Switch to a new business model every 15 minutes. Goal is to fill every box on the canvas Refer to the printed instruction sheet for what goes into each box Keep it simple

Incorporate in to Implementation Plan
Activity Incorporate in to Implementation Plan

7. Market Analysis Part I November 2018 Author : Intellecap

Collective Discussion
What do you think is the importance of conducting market analysis?

Why conduct a Market analysis
01 Helps you determine whether there’s a need for your product or service 02 Identify and understand potentially new and existing customers 03 The analysis helps you set realistic and effective targets for your business: Based on your results, you can make more informed decisions regarding different facets of the business 04 A market analysis is an assessment, which allows you to determine how suitable a particular market is for your industry. It provides a holistic, a well-rounded picture of the markets you are interested in operating in. When you conduct a market analysis, you are going to look at several characteristics of the market including: (As described in subsequent slides) Definition of your industry (what do you offer) Size of your industry Rate of growth Potential for growth Trends in the industry Sustainability of your industry When doing an analysis, Be specific. Establish a clear understanding of your target market .including user persona and characteristics and market sizing Identify new business opportunities: Conducting market research may help you discover new markets that are under-serviced or demand service.

Do you know your Market?? At what rate is your market growing?
Who is the biggest player in your market? At what rate is your market growing? What's influencing this? Are there any new developments that are affecting the market? What is the total ($) value of this market? Participants should give answers of the below questions on the first try

Understanding your market
When starting or growing your business and determining your fit within the marketplace, your market research should cover the following: Customers Industry Competitors Products & Services Suppliers Be clear on focus on industry for this section, but overall importance of all 5

Dimensions of market analysis
Industry positioning Trends & characteristics Profitability & cost structure Market sizing Who is my competition Competitive positioning Distribution channels Where are they located Customer positioning Potential customers What are they buying How much will they pay These are examples of what analysis will be conducted based on each components of the market understanding Competitive positioning is about defining how you'll differentiate your offering and create value for your market. It's about carving out a spot in the competitive landscape and focusing your company/product/service to deliver on that strategy.

Factors that affect marketing decisions
External Factors Internal Option 2 Political Company Economical Environmental Customers Legal Social Suppliers Technological Political factors: These are all about how and to what degree a government intervenes in the economy. Economic factors: Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on. Social factors: areas that involve the shared belief and attitudes of the population. These factors include – population growth, age distribution, health consciousness, career attitudes and so on Technological factors: Technological factors affect marketing and the management thereof in three distinct ways inluding:New ways of producing goods and services, New ways of distributing goods and services, New ways of communicating with target markets Environmental factors: hey have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments Legal factors: Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. Sometimes PESTEL analysis is also known as PEST analysis. PESTLE analysis is different for each business, depending on their stages, the way a promoter/entrepreneur should position their business is different depending on the growth stage of the industry. Competitors

Fill PESTEL Template Activity
Run through the slides ‘Understanding your Market’ and pause in the presentation on ‘Factors that affect Market Decisions’ to facilitate the following activity: PESTEL Analysis Divide the participants into small groups, based on the similarities of their industries. Provide the participants with the PESTLE toolkit. Instruct the participants to then fill the template. Ask for a volunteer from each of the group to present in front of the larger group.

Do and Don’ts of Market Research
Define your research goals Dive in with unclear objectives Know what you are looking for Forget to reference any material that you use Always make your customer feel important DO! DON’T! Search for a variety resources Cite wikipedia Credible websites include among others: .gov = Government Web Site .edu = Educational Web Site .org = Special Interest Groups (intended for non profit groups) .com .net .biz = Commercial Web Sites (use these with caution) .name = Personal Web Site (Do Not Use!) Scrutinize your sources and use credible websites

Activity Online research Present a two- minute overview of your industry including the market size, growth rate, and the PESTLE framework

Industry Characteristics & Trends-Across Maturity Stages
The market's maturity impacts how you should approach your market and position your company, product or service against your competitors. Stage Characteristics Typical Positioning Approach Introduction Focus on creating a market for your new product or service. Focus on building awareness for the solution in Customer sensitization Build awareness of product features and benefits Growth Build preference for your product/service. Focus on why prospects should buy from you Building a strong following for your brand. Introduction: Characteristics: As the first or second mover in the market, focus on creating a market for your new product or service. Focus on building awareness for the solution in general, rather than positioning yourself against other early entrants. Positioning: Convince prospects that this is the right solution altogether. Build awareness among "early adopters" and educate them about how your solution is new, different and better. Remember: You're "selling the problem," not your offering. Growth Build preference for your product/service versus those of your competitors. Focus on why prospects should buy from you and why your offering is better and Building a strong following for your brand.

Cont’d Stage Characteristics Typical Positioning Approach Maturity
Price is critical in the customer's decision-making process. Focus on why your offering is better Decline As a market declines, the number of competitors decreases as larger competitors move resources toward other markets. You can either continue to focus on price, or try to create niches, while innovating to increase market share and/or increase price. Maturity stage: Characteristics Price is critical in the customer's decision-making process because there is substantial competition and less differentiation among products. The positioning will still focus on why your offering is better, but price will play a more important role than in earlier stages. Positioning: Focus on why your offering is better, but price will play a more important role than in earlier stages.

Characteristics Industry Introduction/ Startup Stage
At the Introduction/ startup stage: There are also lack of complementary products, which add value to the customers, limiting the profitability of the new product. Distribution channels are still underdeveloped, so there are very few product supply and promotional activities. Customer demand is limited due to unfamiliarity with the new product’s features and performance. Companies at the startup stage are likely to generate zero or very low revenue and experience negative cash flows and profits due to large amount of capital initially invested in technology, equipment and other fixed costs.

Characteristics: Continued
Industry Growth Stage As the product slowly attracts attention from a bigger market segment, the industry moves on to the growth stage where profitability starts to rise. 02 Complementary products also start to become available in the market so people have greater benefits purchasing the product and its complements. 01 Improvement in product features leads to easiness to use, thus increasing value to customers. 03 As demand increases, product price goes down which further increase customer demand. At the growth stage, revenue continues to rise and companies start generating positive cash flows and profits as product revenue and costs break-even.

Industry Maturity Stage 01 Majority of the companies in the industry are well established and the industry reaches it saturation point. Companies collectively attempt to moderate the intensity of industry competition to protect themselves and maintain profitability by adopting strategies to deter entry of new competitors into the industry 02 03 Companies also develop strategies to become a dominant and reduce player rivalry 04 Companies realize maximum revenue, profits and cash flows because customer demand is fairly high and consistent. 05 Products become more common and popular among the public, and the prices are reasonable compared to new products

Industry Decline Stage Decline stage is the last stage of an industry life cycle. The intensity of competition in a declining industry depends on several factors: sped of decline, height of exit barriers and level of fixed costs. To deal with decline, some companies might choose to focus on their most profitable product lines or services in order to maximize profits and stay in the industry 01 02 Some larger companies will attempt to acquire smaller or failing competitors to become the dominant player 03 For those who are facing huge losses and do not believe there are opportunities to survive, divestment will be their optimal choice

At what stage do you think your industry is?
Activity Group Discussion: At what stage do you think your industry is? What positioning would you use?

Market segmentation Geographic segmentation Demographic segmentation
Grouping your market into smaller homogeneous subgroups to create efficiencies in marketing messages and campaigns. Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Demographic segmentation Age and Life Cycle segmentation
Market segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation Demographic segmentation Age and Life Cycle segmentation It is associated with behavioral characteristics & buying patterns Divides the market into income groups Differentiates the needs and wants between men & women. Divides customers according to their preferences Income segmentation Gender segmentation Social segmentation Age and life cycle segmentation Consumer’s needs and wants change with age. Marketers using the age and life-cycle segmentation must be careful to guard against stereotypes Income segmentation Income segmentation may not always predict the most suitable customers for a given product due to the fact that some customers may have other preferences and prioritize their money different Gender segmentation Different Men and women have different attitudes toward a product and is Social segmentation Companies design products for specific social classes

Behavioral segmentation
Market segmentation Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation Behavioral segmentation is based on the customers’ attitude toward, use of, or response to a product. Occasions Divides customers based on the time they make purchases User status Segments based on the usage of product/ service Buyer readiness stage Refers to people’s awareness and interest of the product. Occasions Divides customers based on the time of day, week, month and year that they make purchases User status Segments customers according to nonusers, ex-users, potential users, first-time users and regular users of a product Buyer readiness stage Refers to people’s awareness and interest of the product. The purpose is to lead the customer along so they purchase the product

Behavioral segmentation
Cont’d Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation Usage Rate Loyalty status Benefits Benefits Divides customers as per the different benefits they seek from a product. It identifies segments by casual factors rather than descriptive factors Usage Rate Divides customers as per how much they use a product. The groups created are of non-users, light, medium & heavy product users Loyalty status hard-core loyal: customers are always loyal by buying the same product Split loyal: Customers are assumed to be loyal toward two or three brands Shifting loyal: Customers who shift from one brand to another and staying with that brand for a period of time until they shift to another brand. Switchers: Customers who do not show loyalty or preference towards one particular brand Divides customers as per the different benefits they seek from a product. Divides customers as per how much they use a product. The assumption is customers are: Hard-core, Split, Shifting loyal or Switchers

Psychographic segmentation
Market segmentation Demographic segmentation Behavioral segmentation Geographic segmentation Psychographic segmentation Psychographic segmentation divides people according to their attitudes, values, lifestyles, interests and opinions. It is used as a supplement to geographic and demographic segmentation It is derived from derive from two principal types of customers: Personality profiles Lifestyle Psychological variables Psychographic segmentation provides additional information for segmentation. It is used to supplement both demographic and geographic segmentation. It used in understanding the behavior of current and potential target markets/customers.

Geographic segmentation
Market segmentation Demographic segmentation Behavioral segmentation Psychographic segmentation Geographic segmentation The purchasing behavior of the customers are influenced by where they live, work etc. The differences can be caused by cultural factors, traditions, politics Divides customers based on geographical areas such as nations, states, regions, counties, cities or neighborhoods. 01 02 A company can target one or more areas. Geographic segmentation is linked to other differences in socio-economic and demographic characteristics. (geodemographic) 03

Market segmentation: Helpful Nuggets
Customize products/services, advertising, promotion and sales efforts should fit the needs of all the segments Employ different segmentation methods Avoid segmentation bias of any kind Segmentation needs to be practical Manage your segments with a broader geographical view. Remember, geographic segmentation may vary due to population shifts Do not define your segments too broadly Segmentation needs to be practical. i.e segments need to be sufficient in size Avoid segmentation bias of any kind- especially for gender segmentation

Activity Based on your business model, Identify the market segments that you serve Segmentation Always try to divide your target market into useful slices or segments. For years, I consulted with a computer manufacturing company that targeted such market segments as homes, small offices, businesses, educational organizations, and government. Dividing the market into these segments helped the company address the more specific market needs, media, pricing patterns and decision criteria in each of their different market segments. Segmentation helps you target specific people with specific messages and helps you focus on user needs. Families might need quick, consistent service while students might need late-night service. Families read the newspaper; students read posters on bookstore walls. Knowing your market segments will help you make smart decisions when it comes to providing the products and services that will work best for them and for communicating with them. Here’s the simple truth of business: Without customers to buy your products, you’re not going to make any money. Almost every decision you make—what you sell, how much you sell it for, where you’re located, who you hire—is made with the intention of bringing in the maximum number of customers to your store, and to optimize the likelihood that they’ll buy your products while they’re there. To make those decisions easier and more effective, many businesses develop personas (fictional characters that represent the business’s customers or potential customers) to help them make the right choices as they start, grow, and advertise their business.

7. Market Analysis Part II
Marketplace for Nutritious Foods Marketing training for Businesses within the CoP 7. Market Analysis Part II November 2018 Author : Sankalp Consultancy

What to Consider in Market Sizing
01 Size & Growth 02 Attractiveness 03 Organization objectives & Resources

Market Sizing TAM: Total Available/ Addressable Market
This is everyone you wish to reach with your product SAM: Segmented Addressable Market This is the portion of TAM you will target SOM: Share of the Market This is the subset of your SAM that you will realistically reach TAM: Total possible demand for product SAM: Based on current business model SOM: Based on practical limits of your business model Example One of Market sizing: You’re starting a concierge service in your city that focuses on doing tasks/running errands for busy people, and people who need additional assistance (elderly, handicapped, and so on). Your TAM would be all busy people, elderly and handicapped people in your city. If your town has 150,000 people, you may find (through market research) that total possible demand for your business in your city is 15 percent (or 22,500 people). Note: If you have a competitor in your market, your TAM would be smaller since you will be sharing this market with another company. Your SAM would be the portion of that 22,500 whom your current business model is targeting (this will be outlined in your business plan). For example, your business model is being set-up to service 7500 people/year. This means your SAM would be 33 percent of your TAM (or 5 percent of your total city’s population). Your SOM would be the portion of your SAM that your business model can currently realistically serve. For example, you may only have 3 employees (yourself and two others), so realistically what percentage of SAM can you reach in the first two-to-three years? Let’s assume your company can effectively provide concierge services to 100 people/month or 1200 people/year. This means your SOM is about 16 percent of your SAM (or around 5 percent of your TAM, or a little under 1 percent of your total city’s population). If you’re seeking funding, savvy investors will ask you for these items in your business plan, and they’ll want you to be able to back-up your numbers. This is why conducting some market research up front is important—and even advisable before you begin writing your business plan. It gives you the validation of your market potential. Note! There are three ways of calculating TAM: External research: Use the reference professional data that has already been collected and s available. The disadvantage of this method is the methodology of how the number was calculated is unknown and is thus difficult to defend this to a potential investor. Top down also called the Chain ratio method: The top-down analysis follows a process of elimination that starts by taking a large population of a known size that comprises the target market and using it to narrow down to a specific market segment. This method uses industry research and reports to get the estimates of the population. Bottom up: It is a more reliable method because it relies on primary market research to calculate the TAM estimates. It uses more reliable data on the current pricing and usage of a product. The advantage of using a bottom-up approach is that the company can explain why it selected certain customer segments and left others. The company relies on data from its own research or surveys. The disadvantage however is that due to the vast assumptions being made from a figuratively small subset, the TAM can be way off. Value theory: It relies on an estimate of the value provided to customers by the product and how much of that value can be reflected in the product pricing. Value theory is used to calculate TAM when a company is introducing new products into the market or cross-selling certain products to the existing customers. The most common are top-don and bottom-up approaches. Note! For TAM estimates, you’ll require information on; The total population for potential users The exact definition of market segment The estimated percentage of target user How many products will be purchased at a time How often the product will be purchased What is the intended selling price of the product Tip! Components “d” and “e” could be established from the behavioral and psychographic segmentation.

How to Conduct Market Sizing
External research Use the reference professional data that has already been collected and s available Top down Follows a process of elimination that starts by taking a large population of a known size that comprises the target market and using it to narrow down to a specific market segment. Bottom up It is a more reliable method because it relies on primary market research to calculate the TAM estimates. It uses more reliable data on the current pricing and usage of a product. Value theory It relies on an estimate of the value provided to customers by the product and how much of that value can be reflected in the product pricing. There are three ways of calculating TAM: External research: Use the reference professional data that has already been collected and s available. The disadvantage of this method is the methodology of how the number was calculated is unknown and is thus difficult to defend this to a potential investor. Top down also called the Chain ratio method: The top-down analysis follows a process of elimination that starts by taking a large population of a known size that comprises the target market and using it to narrow down to a specific market segment. This method uses industry research and reports to get the estimates of the population. Bottom up: It is a more reliable method because it relies on primary market research to calculate the TAM estimates. It uses more reliable data on the current pricing and usage of a product. The advantage of using a bottom-up approach is that the company can explain why it selected certain customer segments and left others. The company relies on data from its own research or surveys. The disadvantage however is that due to the vast assumptions being made from a figuratively small subset, the TAM can be way off. Value theory: It relies on an estimate of the value provided to customers by the product and how much of that value can be reflected in the product pricing. Value theory is used to calculate TAM when a company is introducing new products into the market or cross-selling certain products to the existing customers. The most common are top-down and bottom-up approaches.

Top-down Vs Bottom- up Approach
CONS PROS Top-down Only accurate when there is reliable market information and as such could be misleading If you miss out on any important assumptions, you may over estimate your TAM This approach hides the difficulties in reaching various segments of your customers Top-down Easy to do Bottom-up Straight forward Gives a clear picture as you start with the basic units of your business Bottom-up May not necessarily be as accurate if data is not readily available. Does not give a comprehensive picture because it assumes there will always be more customers in the segments that you know how to reach. Bottom up approach While relatively straightforward, this approach may not always be as accurate, especially in markets where detailed data is not readily available, because it is often difficult to size individual segments. If, for example, a constraint were that the two segments be literate, the firm may have difficulty obtaining a reliable estimate of the literate population. Note! It is advisable to use both methods because, each on their own, doe not give you a complete picture of the market. If the top-down and bottom-up approach agree with each other, then you may have a good estimate of your market size. However, it may require updating/adjusting your assumptions/ hypothesis to reach to this agreement. Tip! You can get more accurate by looking at comparables. i.e companies that are closely related/similar to yours.

Work on your Total Addressable Market (TAM)
Activity Work on your Total Addressable Market (TAM) Example One of Market sizing: You’re starting a concierge service in your city that focuses on doing tasks/running errands for busy people, and people who need additional assistance (elderly, handicapped, and so on). Your TAM would be all busy people, elderly and handicapped people in your city. If your town has 150,000 people, you may find (through market research) that total possible demand for your business in your city is 15 percent (or 22,500 people). Note: If you have a competitor in your market, your TAM would be smaller since you will be sharing this market with another company. Your SAM would be the portion of that 22,500 whom your current business model is targeting (this will be outlined in your business plan). For example, your business model is being set-up to service 7500 people/year. This means your SAM would be 33 percent of your TAM (or 5 percent of your total city’s population). Your SOM would be the portion of your SAM that your business model can currently realistically serve. For example, you may only have 3 employees (yourself and two others), so realistically what percentage of SAM can you reach in the first two-to-three years? Let’s assume your company can effectively provide concierge services to 100 people/month or 1200 people/year. This means your SOM is about 16 percent of your SAM (or around 5 percent of your TAM, or a little under 1 percent of your total city’s population). If you’re seeking funding, savvy investors will ask you for these items in your business plan, and they’ll want you to be able to back-up your numbers. This is why conducting some market research up front is important—and even advisable before you begin writing your business plan. It gives you the validation of your market potential. Note! There are three ways of calculating TAM: External research: Use the reference professional data that has already been collected and s available. The disadvantage of this method is the methodology of how the number was calculated is unknown and is thus difficult to defend this to a potential investor. Top down: The top-down analysis follows a process of elimination that starts by taking a large population of a known size that comprises the target market and using it to narrow down to a specific market segment. This method uses industry research and reports to get the estimates of the population. Bottom up: It is a more reliable method because it relies on primary market research to calculate the TAM estimates. It uses more reliable data on the current pricing and usage of a product. The advantage of using a bottom-up approach is that the company can explain why it selected certain customer segments and left others. The company relies on data from its own research or surveys. The disadvantage however is that due to the vast assumptions being made from a figuratively small subset, the TAM can be way off. Value theory: It relies on an estimate of the value provided to customers by the product and how much of that value can be reflected in the product pricing. Value theory is used to calculate TAM when a company is introducing new products into the market or cross-selling certain products to the existing customers. Note! For TAM estimates, you’ll require information on; The total population for potential users The exact definition of market segment The estimated percentage of target user How many products will be purchased at a time How often the product will be purchased What is the intended selling price of the product Tip! Components “d” and “e” could be established from the behavioral and psychographic segmentation.

Porter’s 5 Forces Video: Porter’s 5 Forces Model

Market attractiveness: Porter’s model
Porter’s model helps you analyze the attractiveness and potential profitability of an industry sector. Industry rivalry Threat of substitute product Threat of new entrants Bargaining power of buyers (Customers) Bargaining power of suppliers Porter’s model is strategic rather than a tactical tool and highlights the strength of the market position. The model works on the basis that there are five important forces that determine power in the market. The model helps in identifying current sectors and your potential sectors, to see who has the power.

Porters Application Force Market characteristic Threat of new entry
If new businesses can easily start up in your sector, this is a threat. Buyer power Where there are fewer buyers, they often control the market. Threat of substitution If there are easily available alternatives, the threat of substitution increases. Supplier power Markets where there are few suppliers means the suppliers retain the power. Competitive Rivalry Markets where there are few competitors are attractive but could easily be short-lived. Porters Application Competitive Rivalry Markets where there are few competitors are attractive but can be short-lived. These are highly competitive markets with many companies chasing the same work reduce your power in the market.

Activity Using the Porters framework provided, Identify the forces in the market and strategies you can use to mitigate against these forces

8. Competitor Analysis November 2018 Author : Sankalp Consultancy

There is always competition, no matter the business!!
Type of competitors Multiple businesses offering similar products and services create direct competition Business offering slightly different products, but target the same customers and satisfy the same need. Business that have capabilities that would allow them to quickly take market share if they entered your markets. Direct Indirect Future Direct - They offer solutions/products that are similar to your own. For example ArtCaffe and Java Indirect - Their solutions/products are different from yours, but can potentially provide relief for the market. Future - They could easily expand their offerings to compete with yours. There is also other types including: Replacement: A firm that sells products and services that are in a different industry that could be used as a substitute for your products. For example, a restaurant and a supermarket in the same city. Potential: A direct, indirect or replacement competitor that currently has no distribution in your markets. For example, a dry fruits company that is popular in Uganda but that has no sales capabilities in Kenya presents a potential competitor for the Kenyan dry fruits companies Note: Some early-stage companies fail to properly plan for indirect or future competitors. There is always competition, no matter the business!!

Competitive analysis IDENTIFICATION ANALYSIS
Analyze your competitors market size and positioning Examine their value proposition & strength of their brand Compare their pricing points Ask wholesalers and retailers who they stock up Ask your customers who else they considered for the same product or service Do a Google search, check Google trends Interview some of their customers Ask the players: Wholesaler and Retail staff know a lot about what products sell and the feedback customers give for particular products. The end customer is always the best person to ask regarding their preferences, it can however be costly to. It’s not just about knowing the competitor but also making comparison with your own product/ service.

Competitive analysis: Tools- SWOT analysis tool
Existing brand Existing customer base Existing distribution Brand perception Technology skills Intermediary use S W STRENGTHS WEAKNESSES O T OPPORTUNITIES THREATS Cross selling New markets New services Alliances/ co-branding Customer choice New entrants New competitive products Channel conflicts Use SWOT analysis to identify strengths and weakness of your competitors Strength – Threats Weaknesses – Opportunities Through this, the business might find solutions to met the threats its faces will using opportunities to reduce its weaknesses

Fill in a SWOT analysis for your business
Activity Fill in a SWOT analysis for your business Sometimes not all the information is available and you may need to make assumptions. Make sure the assumptions are noted so others are aware.

Identify the market competitors applicable to your business
Activity Identify the market competitors applicable to your business Sometimes not all the information is available and you may need to make assumptions. Make sure the assumptions are noted so others are aware.

Competitive Analysis Tool: Competitive analysis worksheet
My Company Competitor 1 Competitor 2 Competitor 3 Target customers Market Share Price Product Quality Product Uniqueness Innovation Service Level Distribution Channels/Power Product/Brand Awareness Financial Strength Strength Weakness Step 1: List Your Competitors Start by listing at least three of your main competitors. These are the businesses or people who provide a similar product or service to yours. They also tend to serve the same market. It’s also best to look for those businesses that are of a similar size as yours. For example, if you’re a solo entrepreneur selling handmade potholders online, big chain grocery stores usually aren’t your direct competitors, even if they might carry handmade potholders in their inventory. Instead, look for other small to medium scale producers of handmade potholders and similar kitchen accessories. Step 2: Write a Brief Overview Write a brief description of the competitor’s business and why you think they’re a competitor. Also, how much do you know about each competitor in the first place? Do you know the business well enough to fill up most of the worksheet without research or do you have to dig deeper? Note if you've made contact with each competitor, whether as a customer or by meeting them at industry events. Having that information near the top of your competitive analysis will help you quickly see how much you do know about your competitive climate. Step 3: Know Their Target Customers Next, identify the customers that your competitors tend to attract. You can do this by going through their marketing materials, social media pages, website, blog, seeing where they advertise, etc. This material will help you figure out who they are trying to reach. Here are some questions you can work to answer as you attempt to identify your competitor’s target market: Based on your competitor’s marketing message, what kind of customer does the viewer have to be for these messages to appeal to him or her?What is their age range? Where do they have to be located? What's their profession, if any? What other customer demographics can you infer? You're essentially trying to come up with a "buyer persona", a character who best represents the person your competition is trying to reach. Do their marketing materials appear gendered? This just means: do the marketing materials specifically refer to men or women? This could be in the form of the language they use, the images, and illustrations in their ads and other marketing content. Or do they appeal to a broader audience? Are they targeting low, middle, or high income customers? Look at their pricing information, including how they phrase it. If they use words like discounts, sale, affordable, or cheap, then they aren’t targeting the high income crowd. Also look at the marketing materials themselves, whether it’s a brochure or online banner. Are they attention-grabbing or elegant? What is the main messaging of their marketing materials? What common customer problems or goals do they often refer to? Let’s say you’re a pet sitter going through a rival business’ brochure. There is a huge difference between a brochure emphasizing frequent real-time online updates, and another brochure emphasizing pet pampering and grooming. The group of clients who are attracted by frequent real-time online updates are often focused on the safety and welfare of their pets, while those looking for more pampering and grooming services are focused on comfort and appearance. Do they have separate marketing messages for different segments? Sometimes, you might see a stark difference between how your competitor markets their business for one type of customer versus how they present themselves to another type of customer. For example, if you're trying to sell services as a math tutor to high school students who are struggling to pass their math subjects, you'll be making a completely different pitch than you would to those students who need additional help with their SAT math so that they could get into prestigious universities. Your message to the struggling students might be closer to "I'll help you finally pass your math tests!" While your message to the other market will be similar to "I'll help you get into the school of your dreams!" Also, be sure to note if your competitor does something similar with their own customer segments. Step 4: List Their Pricing Don’t forget to list how your competitors price their products and services. Include other information such as pricing for installment plans, pricing for product and service packages, as well as shipping fees. Note in your worksheet how their prices compare with yours—if you’ve already set rates for your products and services. Step 5: Itemize Their Marketing Strategy Though you and your competitors will be running your businesses independently, marketing is one of the areas where you’ll be going head to head. Most small businesses might not have the resources or the opportunities to execute detailed and expansive marketing plans, but your marketing is essentially the message that your customers’ see. The more they are familiar with your message and find an affinity with it, the more likely they are to choose you. This is why it’s important to have an understanding not just of your own marketing messages, but your competitors as well. Deconstruct how their marketing works. Analyze the following: Print Marketing methods such as brochures, posters, billboards, etc. Make note not just of the content but also the materials. Do they use high quality ink and paper? Are they glossy and in color or were they just photocopied? Social Media. Note the social media channels where each of your competitors have a presence. How many fans or followers do they have? How many comments or shares do their posts get? Website. What’s the first thing visitors see in your competitor’s website? Is there much text on the website, and if there is, what does it emphasize about your competitor’s business? Do they have customer reviews and testimonials? Make note of the design as well. Is their website static and minimalist, or does it have animation and other interactive features? Apart from judging the copy, design, and features of the site itself, does the site rank well for relevant search terms that you think your potential customers could use? If you’re selling handmade leather wallets, try doing a Google search for “handmade leather tool wallets” and see if any of your competitors are in the first few pages. Blog. Do they have a company blog? If they do, how often is it updated? Are there comments or social media shares on the blog posts? Advertising. Have you seen any of their ads online, in local newspapers, or in the yellow pages? What is the call-to-action on their ads, is it to call a number, visit a store, or check out a website? Are there coupons attached to the ads? What product features are they promoting? Promotions, Sales, or Events. Do your competitors hold any recurring sales, promos, or events meant to attract new customers? Do they attend trade shows or sponsor third-party events? Partnerships. Do they partner with other businesses or individuals? What types of partners do they choose and what do they typically cross-promote with these partners? Step 6: Identify Their Competitive Advantage Next, find out what makes each competitor unique. This is their “competitive advantage,” the aspect of their business that could help them outperform you and the other businesses on the list. What do they offer that the other businesses on the list don’t? Why would some customers pick them over you or your other competitors? According to the NFIB survey, the most common ways that small business owners compete is by providing the highest quality product or having better service. More than 80-percent of business owners indicate that they compete by using each of these two criteria. Here are some other criteria you should be looking at: targeting an underserved market (these are the people whom most of your competitors don't address or explicitly sell to) targeting a highly specific market lower prices frequent discounts and promos location a long company history a famous or high-profile founder an interesting company story (interesting founding stories tend to be profiled by the media) compelling marketing (such as memorable imagery, taglines, or jingles) large online audience via their website, blog, or social media accounts broader range of products and services As you’re filling up this section, you’ll start thinking about what your own competitive advantage will be. Go through the list above and try to spot areas where you can do much better than the competitors you’ve researched. Step 7: Find Their Strengths and Weaknesses This section serves as a summary and analysis for all of the research you've done so far. You'll review all the aspects of your competition's business and determine whether they are strengths or weaknesses. List their strengths and advantages under "Strengths" in the worksheet. Note down how equipped you are to deal with these strengths. Can you do better than them or would it serve you better to outdo them elsewhere? The same goes for their weaknesses. Do their weaknesses present an opportunity for you? Will they be able to overcome these weaknesses easily? If so, how will it affect your business if a competitor turns their weaknesses into strengths? If you need additional information for this portion, look for any reviews of each competitor’s product or service. Search for their business name or products on social media and see what people are saying. This can help you see a business’ weakness and strengths based on what their customers see.

9. The ‘How’ in Marketing November 2018 Author : Intellecap

The Marketing Mix Video: The Marketing Mix

Introduction to the Marketing Mix
Primary marketing tools Product/ service People Pricing Place Promotion Marketing mix : Set of marketing tools that the company uses to pursue its marketing objectives. It is significant because it is a tool for creating the right marketing strategy and its implementation through effective tactics. Price: Price is the amount the consumer must exchange to receive the offering Place: Place includes company activities that make the product available to target consumers. Product: Product means the goods-and-services combination the company offers to the target market. Promotion: Promotion includes all of the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products. People: All human actors who play a part in service delivery and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment. Product/ service Brand, benefit Promotion Advertising, sales, promotion Place/ distribution Locations, distribution models Pricing Value, discount, rebates, terms People Customer service, After-sales service

Introduction to the marketing mix: The Nuggets
01 The composition of ‘P’s, should creates the highest level of customer satisfaction 02 The mix should be designed keeping the needs of the customers in mind 03 The mix varies from one organization to another depending on available resources and objectives

Identify the 5Ps for Muramo Company
Activity Identify the 5Ps for Muramo Company

10. Defining your Product November 2018 Author : Intellecap

Product & Services Products and Services are what a business is built around. These can be single products/ services or a bundle of products and services that help your customer get either a functional, social, or emotional job done, or helps them satisfy basic needs. In the box ‘Product & Services’ you list all the products and services which your value proposition is build around. This includes for example the services that you offer or the help the customer receives either a functional, social, or emotional.

Product Fit in the Market
Product fit means being in a good market with a product that can satisfy that market. Product fit is providing the right solution to the right person and being able to clearly explain why your product is valuable to them. Product Market Though the term is quite ambiguous, the following are when product market fir has been attained: Customer retention rate and repeat purchases Customer growth from referrals Positive customer feedback and strong loyalty However the following myths should be highlighted Myth #1: Product market fit is always a discrete, big bang event Myth #2: It’s patently obvious when you have product market fit Myth #3: Once you achieve product market fit, you can’t lose it Myth #4: Once you have product-market fit, you don’t have to sweat the competition

Activity Myth Busting Though the term is quite ambiguous, the following are when product market fir has been attained: Customer retention rate and repeat purchases Customer growth from referrals Positive customer feedback and strong loyalty However the following myths should be highlighted Myth #1: Product market fit is always a discrete, big bang event Myth #2: It’s patently obvious when you have product market fit Myth #3: Once you achieve product market fit, you can’t lose it Myth #4: Once you have product-market fit, you don’t have to sweat the competition

Steps in Finding Product Fit
Your market is a group of people and to successfully sell to those people you need to understand them very well. Establish Credibility for your brand Finding product fit is much easier when your buyer personas respect your brand. Focus on specific value proposition More effective to drill down to important feature, quality that buyer personas can’t live without Understand what your customer need now and in the future Anticipate change and be flexible to move with new trend Talk to your Buyer Personas Identify all of the areas where your product can provide value for them How your buyer persona talks about the problems they need to be solved Develop your buyer Persona Focus on: Basic details Background info Demographics learn how your buyer persona talks about the problems they need to be solved or the goals they want to accomplish. Their language creates your perfect marketing message. Too many companies have failed because they misunderstood product/market fit – Nokia is a good example.(Understand now and future) To see this in action, take a look at each new iPhone launch by Apple. Each new version of the phone has dozens of new features, but Apple usually focuses on one feature, such as Siri or the screen size Ask yourself what’s the biggest concern of your buyer personas right now? That’s where you find your value proposition.(Focus on value Proposition) Granted, poor product/market fit can also ruin your credibility, so don’t think your brand is too big to fail because you’ve won the market’s respect Trust is critical for establishing credibility and increasing the lifetime value of your customers.( establish Credibility)

Product Strategy Process
Product Strategy assists defining a company’s approach to entering new markets or introducing products into existing markets. Product Strategy Process Vision Product Roadmap Product Strategy is successful when the vision is aligned with: Value proposition Market Business goal Product strategy is put into action by stating: Measurable goals Selected features The product strategy describes how a visionary, inspirational goal is attained, It includes the product's value proposition, market, stand-out features, and business goals. The product roadmap shows how the product strategy is put into action by stating dates, measurable goals, and selected features. It provides the context for making the right tactical decisions including prioritizing and managing the product backlog.

Product Strategy Product Market Present New Present New
Market Penetration Trying to take a greater share of existing market with existing product for example relaunching Low Risk Product Development Extending existing products with existing markets Medium Risk Present Market Development Finding or creating new markets for existing products Medium Risk Diversification Creating new product lines or ranges for sale in new market High Risk New Each strategy has a different risk profile. Businesses should gauge their risk taking ability as they choose a product strategy to pursue. Marketing Penetration: Expand Advertising, target more segments Market development strategy: Expand distribution, enter new segment, target new market Product development: new feature for existing product Diversification: New product for new market

01 02 03 04 03 05 Product Lifecycle Maturity Growth Introduction
Decline 01 02 03 04 03 05 Reach & Teach Teach & Remind 01 Introduction When a product first enters the marketplace 02 When your product is in the Introductory or Growth stages, use Reach and Teach marketing tactics to educate consumers about your product. Media coverage is an excellent way to Reach and Teachyour audience. One media story can reach tens of thousands ‒ or even hundreds of thousands ‒ of people. And media stories often allow much more time and space than ads. Media coverage enables you to explain your product’s benefits in detail. Also, media coverage is probably much more attainable than you think. Our publicists are industrious and creative. They think of story angles that attract the media’s interest. Find out what happens to your sales when your business or product is showcased in newspapers or magazines, or on television or the radio. Products in the Maturity or Declining phase should use Reach and Remind tactics. With Reach and Remind, the focus is on keeping a product top-of-mind for consumers. Your target market is probably already aware of your product’s benefits, so you’ll want to use simple, short reminders of the product. We can help you get set up with digital ads that reach a carefully targeted audience. Growth When more people are learning about the product and sales are growing 03 Maturity When the target audience is generally familiar with the product and sales are steady 04 Decline When product sales are dropping

Product Lifecyle: Continued
Product Introduction Stage In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: Product Branding and quality level is established to meet market demand and expectations Pricing May be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distribution Is selective until consumers show acceptance of the product. Promotion Is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Product Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share. Product Quality is maintained and additional features and support services added. Pricing Is maintained as the firm enjoys increasing demand with little competition. Distribution Channels are added as demand increases and customers accept the product. Promotion Is aimed at a broader audience.

Product Lifecyle: Continued
Product Maturity Stage At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. Product Features may be enhanced to differentiate the product from that of competitors. Pricing May be lower because of the new competition. Distribution Becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion Emphasizes product differentiation. Product Decline Stage As sales decline, the firm has several options: Maintain Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest Harvest the product - reduce overhead costs and continue to offer it, possibly to a loyal niche segment. Discontinue Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

04 03 02 01 Market Penetration Price adjustment Augmented Promotion
Marketing strategy involves business increase its sales to existing customers. Existing products are sold to existing customers The strategy can be achieved through taking one or more of the following action steps: Price adjustment 04 Augmented Promotion 03 Distribution Channel Market penetration seeks to grow market share by taking it from competitors Price Adjustment: A market penetration example could be lowering of price of a product or service with the aim of increasing sales is a price adjustment tactic. Furthermore, the alteration (increase or decrease) in the price of a product after analyzing the competitors’ products is also a scenario of price adjustment Augmented promotion: The drastic increase in promotion of a product (or service) can lead to dramatic results. For example, advertising can be a wonderful tool for increasing brand awareness. Distribution Channels: opening of new distribution channels through focusing on a particular distribution channel. For example, if selling through retail outlets is your primary channel, then you can learn to gain new channels like telemarketing, marketing, online marketing Improving Products: As a company you can focus on developing a superior product than the competition that addresses the customers unmet needs/ wants. 02 Improved product 01

Market Development Market development strategy is where a business find new potential customers for its existing products and services and expand to untapped market. Ways in which Market development is achieved: Differentiated Pricing Improved distribution Channel Product Dimension Geographical market expansion This strategy focuses on increasing reach and number of customers by targeting previously unserviced customers. Geography: This involve expanding the footprint by expanding our product into new market which you don’t exist This involve repackage the product so that it can open up a whole new market. For example detergent products company selling in 10-liter containers could break into the domestic market by repackaging in smaller quantities and developing a suitable brand image Moving from perhaps street retailer to internet retailers, but you should factor in cost implication of the changes for example sports equipment This approach is whether or not current users can easily alter their purchases to take advantage of the new market pricing

Modify product within the market
Product Development Product development strategy is adopted when a business is developing a new product and offering, those products to current markets. Market Modify product within the market Be unique and think differently Create barriers to entry; it is crucial to leverage your business’s strengths in a correct and just manner. For example, by minimizing your variable costs, you can boost your sales and establish a barrier to entry for others. This is why many firms with superior technology and distinct processes are able to reduce variable costs and earn better gross margins per item sold.

Diversification Diversification
A strategy based on developing new products or modifying existing products so they appear new, and offering those products to current or new markets. Diversification model is further subdivided into the following actions: Diversification Strategy Concentric Diversification (related) Conglomerate Diversification (unrelated) Horizontal (unrelated) Diversification Concentric Diversification: The company develops new products/activities with a complementary technology to existing products/activities. These products may attract a new group of customers and there will be a transfer of key skills. Example: Cocacola with Soft drinks, Juices and Mineral water Diversification by conglomerate: the company has different products/activities for various markets. The firm now settles on a market where it has no previous experience nor industry but it could attract new groups of customers. Example: Tropikal Brands with Air freshners and Tunda Fruit juices, Sameer Group, Tires and Milk, Dangote Group Cement, Oil and Minerals Horizontal Diversification: The company is developing a new product or activity capable of satisfying the same clientele, even if the new products are technologically independent of the existing products Example: Safaricom with Masoko

Group Discussion on ANSOFF Matrix
Activity Group Discussion on ANSOFF Matrix

Product Mix Product mix is the total number of product lines that a company offers to its customers. Product lines when grouped together form the product mix of the company. CocaCola Soft drinks Coke Fruit Juice Mineral Water Fanta Sprite Mango Mixed fruit A company will find that it can use multiple product strategies in its growth. What this gives rise to is a product mix, that seeks to meet the needs/ wants of the customer. Example Coca-Cola deals in juices, soft drinks, and mineral water and hence the product mix of Coca-Cola is three products wide. Success of achieving a product Mix depends on many factors like, Company Age, Financial standing, Area of operation, Brand Identity. These should all be valuated before a company expands its product portfolio too soon. Example of product mix failure: LeEco a Chinese conglomerate had ventures in video streaming, consumer electronics, such as smartphones, smart TVs, VR, electric bicycles, electric cars, film production and distribution, cloud service, real estate, wine, retail, eCommerce, and other business. LeEco later expanded to countries outside of China, such as the United States, India and Russia. Rapid expansion led to the group’s collapse after being unable to attract fresh investments and meet its debt obligations.

Fill out Product Description Template
Activity Fill out Product Description Template

Product/ Service Description
Price Quality Special Benefits Unique Features Suppliers Intellectual Property Special Permits Product/Service Description In the box ‘Product & Services’ you list all the products and services which your value proposition is build around. This includes for example the services that you offer or the help the customer receives either a functional, social, or emotional.

Qualities of a good Brand
Branding Branding is crucial for products and services sold in huge consumer markets. It's also important in B2B because it helps you stand out from your competition. It brings your competitive positioning and value proposition to life; it positions you as a "certain something" in the minds of your prospects and customers. Your brand is the entire experience you deliver Qualities of a good Brand Consistently and repeatedly deliver the same experience Communicates a clearly understandable message Ask participants if they have a brand and what their brand is? Demystify what the brand isn’t Brand isn’t just the company logo Brand isn’t just the product labeling Brand is the sum of all that the customer experiences or expects to experience buy buying your product.

Activity Group Discussion

What do you associate with the following?

Brand Value Proposition
Video: Starting with your WHY Starting with WHY video:

Product Branding vs Corporate branding
Different Branding Product Branding vs Corporate branding PRODUCT BRANDING CORPORATE BRANDING 01 01 Focused on body corporate (as a whole), its belief and ideologies Focused on product or service 02 02 Product branding targets consumers Corporate branding targets all the stakeholders of the company Product branding is responsibility of company’s marketing dept. 03 03 Responsibility of entire organization Corporate branding involves marketing various products or services under the name of a company. Product branding, on the other hand, is a marketing strategy wherein a business promotes and markets an individual product without the company name being front and center in the advertising campaigns or even on the product labeling. 04 04 Must survive both present and future Can be altered in needed

Developing a Product Brand
Value Proposition Brand Promise 06 01 Brand Personality Traits 05 02 Brand Theme 04 03 Brand Means Brand Pillars

Brand Value Proposition
Steps in finding brand value proposition: Step 1: Discover what matters to consumers Step 4 Step 2: Know your competitor Step 3 Step 3: Stand for something Step 2 Step 4: Stay Consistent Step 1

Brand Theme Value Proposition Potential Themes to Explore
Conveys the general personality of your brand. Your value proposition can give you some general guidance about the types of branding themes to explore, as certain types of value propositions lend themselves to certain types of brand themes. Value Proposition Potential Themes to Explore Product Leadership Elite, hip, different, powerful, creative, innovative, cool, coveted, scarce, rare, authoritative, essential Operational Excellence Matter-of-fact, competitive, aggressive, comforting, innovative, blunt, authoritative, powerful, commanding, smart, fast, broad Customer Intimacy Supportive, friendly, warm, caring, kind, gentle, helpful, nurturing, interested

Benefits can be Functional or Emotional:
Brand Pillars Brand Pillars communicate the strongest features and benefits that consumers will receive by buying your products. A feature is an element of what something does or is. It's usually a noun. For example, a car's features may include a ski rack and an upgraded stereo system. A benefit is a positive result that the feature delivers. Benefits can be Functional or Emotional: Functional Benefit This benefit is directly related to the functionality of the feature. An upgraded stereo provides higher- quality sound. Brands that tap into our emotions are far more powerful than brands that don't. Connecting with human emotions is an inexact science at best -- it's more an art, and it's the main thrust of consumer marketing. Studies have shown that business brands can stimulate the human mind and emotions in the same manner as do consumer brands. You may be able to accomplish this if you develop your brand strategy around the emotional benefits of using your product/service. For many consumer products, the emotional component is obvious. For B2B products and services (and some B2C offerings), it's not always obvious. A good way to start exploring the emotional benefits of your brand is to consider the features and benefits of your product/service. Emotional Benefit This benefits the user's feelings. An upgraded stereo may make the user feel like a rock star.

Selecting your Brand Pillars
01 Determine each feature or benefits level of Importance There are three levels of importance: Expected Basic and expected; a customer won't buy without this feature or benefit. Every product/service in the category must offer it. Adds value Adds value but most customers probably won't purchase on this factor alone. Still, it helps differentiate your product/service from those of your competitors. Will buy Customers will definitely choose you over your competitors based on this feature/benefit alone - it's that valuable. Focus on the features that customers expect and ones that they will buy. 01 02 03 Rank the Features and benefits based on the three levels of importance: 02

Sample Pillar assessment
Rating: 1 – 5, 1 being lowest, 5 being highest Importance Will Buy Adds Value Expected Feature Pre-cooked 4 5 2 Organic 3 Functional Benefit Healthy life Time saving Emotional Benefit Giving to the community 1 Saves the environment In this example it can be seen that: Customers will buy if the product is pre-cooked that offers the benefit of saving time Customers also view an organic product as adding value but might not necessarily buy it if that’s all it offers Customers don’t relate with the emotional benefits as reasons for buying the product but do see the value Take out: The highest ratings are typically the strongest pillars to use for your brand. Carefully evaluate all of those rated at or above a 3; you might decide to include a few functional benefits with the emotional benefits. Focus on that which adds value, is expected and customers are willing to pay for. Record the highest scoring features and think of these as your "brand pillars." They'll help guide you as you work toward defining the experience your brand should deliver.

Asses your Company’s brand Pillar
Activity Asses your Company’s brand Pillar

Brand Means Now, consider the brand pillars and brainstorm to create compelling statements about what your brand should mean to your customers. Make sure that they evoke your brand pillars and support your value proposition. You're looking for the answers if you asked your customers What does this brand mean? or How would you describe interacting with your brand? Beware of generic adjectives and ideas! The more specific, unique, and powerful the phrase, the better your prospects and customers will understand it. The phrase applies to any of the competitors, then it's not good enough. Brand means should be unique to the company Choose the top three, are they consistent with your value proposition? If not, don't use them. Only use brand means consistent with the value proposition

Brand Personality Traits
If your brand was a person, what would it be known for??? Adding human personality traits to your brand will help you crystallize the experience you want to deliver. 1 2 3 4 5 Friendly Visionary Creative Brand Personalities Human traits in branding serve as a check and balance mechanism for your campaign creative and messaging to create a memorable experience. Good brands also deliver a promise to the market - communicating a simple, singular idea that supports your positioning and the mindshare that you wish to own. If possible, limit each trait to one word - for example, "knowledgeable," "fun," "visionary," "friendly," or "creative.“ Competent Fun

A brand promise Your brand's human personality traits
Brand Promise – What is the one thing that your product/ service or company stands in the customer's mind The strongest brand promises convey value to your target market or buyer personas. What to consider: Your brand's human personality traits Your value proposition Think of your promise as your core selling idea -- the shortest and simplest way to convey your value to the market. If you can't narrow it down to one phrase that embodies all of these criteria and communicates value, pick the strongest word as it relates to your value proposition and emotional benefits. Continue to iterate until you nail it. It takes years to decades of delivering your brand promise to the market via marketing campaigns through different distribution channels to achieve a singular word mindshare of the market, and most companies will never achieve it. Your brand pillars Your market segments' greatest pains What your brand means

Brand Positioning Statement
A 25-word positioning pitch should contain: Your company/product/service name What you do One or two of the most important reasons customers buy from you For whom (referring to your customers) The goal of the positioning statement is to create a clear, concise, meaningful statement. Don't elaborate on the why, how, and where just yet. The essence of this statement is going to be used throughout your materials, so it may take time to get it right. Here's the original positioning statement from Amazon.com in 2001: For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection. Here's an example from HP: HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society.

Fill out Brand Messaging Template in pairs
Activity Fill out Brand Messaging Template in pairs

Myth Busting: Brand Visuals
Activity Myth Busting: Brand Visuals

Print and digital design Marketing campaign creative
Brand Visual Tips Relevance Do the visuals support the written brand strategy and promise? Quality Are the visuals professionally designed? Consistency Are the visuals consistent at all market touchpoints? When considering your branding visual experience, think about your: 1 Logo 2 Color palette 3 Fonts 4 Print and digital design Activity/Brainstorming Marketing campaign creative Design and feel of any physical location where you interact with the market 5 6

11. Promoting your product
Marketplace for Nutritious Foods Marketing training for Businesses within the CoP 11. Promoting your product November 2018 Author : Intellecap

Guesstimate on Number of Adverts you see on a daily basis
Activity: Polling Guesstimate on Number of Adverts you see on a daily basis

Promotions as part of the Marketing mix
Place Price Refers to providing customer access. Considers providing convenience for consumer. Amount a customer pays for a product. Price may also refer to the sacrifice consumers are prepared to make to acquire a product. Promotion Product All activities that involve communicating that seeks to inform, persuade or remind the market about its product or improve its public image Promotion is the communication aspect of the marketing mix. It is creating a channel for conversation with the targeted consumer base. Through promotion, the company aims to attract the customer’s attention and give them enough information about the product to foster enough interest to motivate them to purchase. None of the elements of the marketing mix work in isolation. Instead a unified body of information acts as the source for all activities within these 4P’s. Collection of benefits that can be either tangible such as a physical item or intangible such as a service or experience.

Targets Of Product Promotions
Influencers These help shape public opinion about the product or service. Influencers are obviously influential individuals that might include athletes, artistes that sway the public perception on a certain product or service. Actual Audience These include current customers, former customers and any potential customers. 01 02 Other Companies These include other entities other than competitors and distribution channel members that hold bearing to the business’ customer base. Distribution Channel Members These can sometimes be the face and advocate of the product. Members of the distribution channel once properly targeted can help position the product at more strategic areas, positions in their operations. 04 03 Any promotional activity is usually designed with a specific target audience in mind. The activity is therefore created using messages, cues and information that they will respond to. Realistically, the major portion of any promotional budget is aimed at this specific targeted audience. However, there may be important fringe groups who may have an influence over the intended target or stake in the product. Some of these fringe groups may include:

Objectives of Product Promotions
03 Providing Information Used to serve an educational purpose, to share more information about products or services that is otherwise unknown to the public. 02 Creating Interest This happens when the potential customer already has knowledge of the product. 01 Building Awareness Promotions are used to introduce new products to the target market. They help inform potential customers on the existence of products at their disposal. Different organizations have different expectations from their promotional activities. These expectations are developed into objectives which then shape the selection and execution of these activities.

Objectives of Product Promotions: continued
06 Reinforce the Brand Helps strengthen the business’ market grasp by cementing its foothold and positioning within the specific product category. 05 Differentiate product The focus here remains on those features, functionalities or benefits that may not be offered by a competitor or may not be offered. 04 Stimulate Demand A company may seek to enhance its sales through promotion. If sales have been lower than usual, then the aim may be to get them back up to target level by re-engaging old customers and encouraging new ones to try a product out. In situations where there are many competitors in the market, a company may seek to use promotional activities to differentiate its product in the market and make it stand out from the crowd. Stimulate demand: In other instances, the aim may be to increase sales further at certain times of the year such as near a major holiday. Free demonstrations or special deals may be used to reach these ends.

The Promotional Mix GUERILLA MARKETING ADVERTISING PR & SPONSORSHIP
SALES PROMOTION PERSONAL SELLING Make the customer aware that the product and brand exist. The other is to persuade them to actually pick this product over all others and continue to buy it. The Promotion Mix is a set of activities used to create demand on a product using elements such as advertising, merchandising, personal selling and sales promotion. Positioning is a process used to let people be aware of a new brand and print a positive or a negative image about it in their minds. Above the Line & Below the Line Promotions Organizations use several methods to promote their products. These methods are divided into Above-the-line and Below-the-line. The Above-the-line method is very expensive and is conducted by advertising agencies. It involves using the media elements such as radio, television, magazines, newspaper tsand the internet in order to attract the biggest number of people and to build a name for the business. A restaurant like KFC or Hardees would use the television as a way to advertise their food and to be visible to people all the time. A fashion retail store like Aishti and Aizone may use the radio to broadcast its sales events. Magazines advertise mainly famous cosmetics products such as Dior and Givenchy. Billboards are used to attract people on the streets by showing the product’s photo for instance, with a competing price. Kia uses this method to be more viewable and to introduce new models. Creating a slogan which can be spread and unforgettable among people is very hard to be promoted. But Nike was able to do so with the “Just Do It” phrase that became very famous. The Below-the-line method involves other activities that are conducted by the company itself, such as direct personal selling, sales promotion, etc. The aim is to increase people’s awareness of the product and expand its reputation. For example, Yves Rocher sends catalogues by regular posts providing its collection of the coming season of the year. Insurance companies usually use the door to door approach to sell their policies and to explain their offers to people. Picon cheese has purchased a temporary location in a mall to advertise the new product by offering small bites to customers. the is the cheapest element of promotion to be used. A company can communicate directly and effectively with its customers. Kia has been recently connected to its customers via Facebook, Twitter and Youtube in order to improve the relationship between them. It has also adopted environmental aspects and encouraged people to plant trees as a way of dedicating itself to sustain environmental concerns. DIRECT MARKETING

The Promotional Mix 01 02 03 Advertising
Promotion through advertising is usually done to share a rather general message to a mass audience. These are usually paid and have proven to be more costly than other promotional activities for instance social media or marketing. 02 Public Relations & Sponsorship These activities are largely impression driven. They help create a positive picture and further improve on the worth of the product to its market. Sponsorships are usually geared to boost visibility especially in areas with a high probability of the presence of their customers for example a golfing shoe company sponsoring a golf tournament. 03 Personal Selling Entails the direct promotion of products to customers through business representatives. These can be in person, over the phone and over or chat. This creates a personal and human touch between the customer and the product.

The Promotional Mix: continued
05 Direct Marketing This channel targets specific influential potential users through telemarketing, customized letters, s and text messages. 06 Sales Promotions These are usually short term activities to push the sale of products/services. These are usually coupled with offers and discounts as well as free sampling. 04 Guerilla Marketing Newer category of marketing communication involving unconventional and usually low-cost marketing tactics to engage consumers, generate attention and achieve maximum exposure. Guerrilla marketing is experiential, creates novel situations or memorable experiences. Guerilla Marketing: Low cost marketing tactics that are intended to yield maximum results. These are usually those that promote products and services in public, highly frequented places like for example in the streets, shopping centers, public parks and beaches,

Considerations In The Promotional Decision Making
Stage In Product Lifecycle In the early days of the product lifecycle, promotions are generally expected to be aggressive in a bid to launch and capture the expected market share. Nature of the Product If a product is not new in its usage or function, there may be less need for information and more focus on brand equity creation as well as on emotional aspects of the product. The Allocated and available budget Some promotional activities might be expensive and others cost effective. The available budget dictates the choice of these activities. For example personal selling is cheaper than mass billboard or media advertising. Cultural Sensitivity Cultures, religion dictate the type of promotional activity. For example experiential marketing of a liquor brand might not be feasible in areas with high presence of schools and religious institutions. Target Market Composition Different promotional activities tend to augur well will different audiences. For example products that have a much older, less digital savvy audience, social media might not be the best promotional activity. Competitor Actions Competitors have a huge bearing on what promotional channels businesses use. For example, there is no need to incur heavy costs for advertising if the market custom is to reach customers through social media.

Types of Promotional Strategies
Push Strategy Manufacturer Reseller/Wholesaler/Retailer Consumer Manufacturer Consumer Reseller/Wholesaler/Retailer Pull Strategy

Types of Promotional Strategies: continued
Push Strategies This is when the product is deliberately taken to the customer by the business. This is mostly used to ignite an impulse purchase. Pull Strategies This involves attempts to attract customers towards the brand or product. The business here attempts to create brand loyalty and attractiveness. Most companies will use a mix of these two strategies at different points in time. Cost implication

Promotion Through the Product Lifecycle
INTRODUCTION During the introductory phase, businesses tend to use an intertwined promotional mix to build awareness, interest and finally to make sales. At this phase, product offers, discounts are useful. MATURITY In this phase, there will be evident competition from other businesses. Promotional activities here tend to be those that support product diversification. GROWTH Once products are established and known in the market, businesses use promotional activities that drive an emotional connection between customers and the product to boost loyalty. DECLINE Promotional activities here now re-shift to be of informational aspects by constantly reminding customers that the product exists and it’s the best in the market. As mentioned before, different stages of the product life cycle require different types of promotional activities and strategies. This will help prolong the life of the product.

How to select a promotional strategy
STEP 1: Marketing Objectives STEP 2: Promotion Objective Outline exactly what you want the advertising program to accomplish. Mention a specific target market and a time frame to achieve it. What is the Intent, i.e. remind, inform, image building or persuade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 STEP 3: Determine the Budget How much you have available to spend Tip: Your cost of marketing needs to be lower than the profit to be generated from projected new business. There are exceptions STEP 4: Create the Message Messaging needs to be aligned to the promotional objective Tip: Avoid crowding to much into the messaging. Exceptions to the cost rule: if the business is in an industry or segment that needs a lot of sensitization or the introduction phase. New product might also break this rule as nothing is known about the expected returns on products The message is tied to the intent of the communication, avoid conflicting or crowded messaging. This makes the target more confused and pushes them further away from the intent Evaluating results should guide the decision making process of future campaigns. The company can opt to either adopt alternative strategies to reach the target audience or if successful continue promotions if potential for new market still exists. Successful promotions might also need to be halted if no new market exists for the product i.e if your total addressable market was 5,000 people and the 5,000 people buy, there is no need to promoter the product any longer. STEP 5: Select the Media This will be informed by your target audience STEP 6: Evaluate the Results Successful vs Unsuccessful Change, Continue, Stop

12. Placing your product November 2018 Author : Intellecap

Channels of Distribution
Place Place also referred to as Distribution means the process by which goods or the service are made available to the end consumer. Channels of Distribution Channels of distribution Direct Indirect Selective Intensive Exclusive

Direct Channels of Distribution
Direct sale of goods by producer to Consumer Producer Consumer Methods Door to door salesmen Own retailer outlet Direct mail E-commerce Examples Insurance Online Aircraft sale Also called direct-to-consumer (DTC) channel. Keep in mind that while direct distribution may offer advantages, there are also pitfalls when not using middlemen including: You may have limited market coverage More time consuming and expensive for some business owners Further sometimes Direct channels tend to be more expensive to start running and can sometimes require significant capital investment. Warehouses, logistics systems, trucks and driving staff will need to be set up. However in the long run, it is much cheaper and shorter than indirect channel once the infrastructure is in place.

Advantages vs Disadvantages
Higher product margins Immediate payment Complete control over sales process Individual relationship with customer Direct feedback from customer Greater confidentiality especially in regards to trade secrets and pricing Disadvantages Limited reach, dependent on company resources Greater financial risk Lack of local expertise when entering new markets Possible lower distribution costs might accrue to a company if the direct channel distributed isn’t highly capital intensive or the company has a wide range of products that make the cost of distribution per product negligible.

Indirect Channels of Distribution
Producer Retailer Consumer Producer Wholesaler Retailer Consumer Methods Retail stores Wholesalers or distributors International dealers E-Commerce sites Example FMCG products Disadvantages: You will share the profits with distributors. Retailers may sell your competitors’ products in addition to your own. Indirect channels also free the manufacturer from any startup costs. With the right relationship, they are much simpler to manage than direct distribution channels. s

Advantages vs Disadvantages
Access to wider customer base Reduced financial risk Lower selling costs Increased focus on the company’s core competencies Logistic support Access to local expertise and workforce when entering new markets Disadvantages Lower margin per product Loss of control Delayed payment Possible lower distribution costs might accrue to a company if the direct channel distributed isn’t highly capital intensive or the company has a wide range of products that make the cost of distribution per product negligible.

Types of Indirect Distribution
Exclusive A company grants exclusive rights on its products or services to one of two distributors or retailers only on a local area. Lorem Ipsum Selective Lies and operates between intensive and exclusive distribution. Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company’s products on a basis of a company specific set of rules. Intensive Products are made available to customer from all the possible sources by utilizing different distribution channels so that the customer encounters the product at every possible location. Example, Wholesalers, Supermarkets, Retail shops, online. Example: Jameson Example: Apple Example: Majority of FMCG products

Factors to Consider Nature of Product

Mass vs Custom produced
Nature of Product 01 02 03 Perishability Products which are perishable in nature are distributed by employing a shorter channel of distribution so that goods could be delivered to the consumers without delay. Value of a product Products with lower value might be distributed through indirect channels as significant sales volume is required. Whereas high value items might be more suited to direct distribution. Mass vs Custom produced For mass produced products indirect channels might be more suitable as their is need to get them into as many consumers hands as possible. Highly customized products are suited to direct distribution to maintain client relationships and ensure immediate feedback

Factors to Consider Nature of Market

Nature of Market Consumer or Institutional Market Market size
For consumer market, retailer is essential whereas in business market we can eliminate retailing. Market size Large markets require adoption of multiple channels, whereas, for small market size direct selling may be profitable. Market concentration Direct selling is preferred whereas for widely scattered and diffused markets, we have many channels of distribution. Frequency of purchases Products with high frequency require multiple channels whereas products with lower frequencies might adopt direct distribution.

Factors to Consider Nature of Middlemen

Nature of Middlemen Cost Of Distribution Of Goods Terms Of Engagement
This will include the commissions, product margin or compensation requested by the middlemen. These costs will eventually increase the cost of the product to end consumers or decrease the profit margin to the manufacturer. Terms Of Engagement Different middlemen will require different terms, this will include terms regarding, payment, commissions, responsibilities to be undertaken. The manufacturer will need to determine their proposed terms and seek middlemen willing to accept the terms Availability Of Desired Middlemen Desirability might include size, reach, financial stability of the middlemen being considered. This will affect their ability to deliver sales volume and take up risk of holding products. Value Added Services Provided By Middlemen The manufacturer should select those middlemen who provide various marketing services viz, storage, credit and packing etc. At the same time the middlemen should ensure various services to customers.

Factors to Consider Nature of Company

Nature of Company Heavy advertising and sale promotion
Company financial resources A company with a strong financial position may not rely on middlemen and can afford to reduce the levels of distribution. A financially weak company has to depend on middlemen. Company experience New entrants might require multiple channel partners to penetrate the market and create visibility and awareness for their products Heavy advertising and sale promotion Can motivate middlemen in the promotional campaign. In such cases, a longer chain of distribution is profitable. Level of control desired Thus, quantity and quality of marketing services provided by the company can influence the channel choice directly. Company objectives A company’s objectives will assist when making the selection of a distribution channel, e.g a company’s objective of being unique might make it adopt a more direct approach to its distribution

Nature of Company Competitors

Competitors Highly competitive sectors might force a company to either use similar distribution channels where economies of scale for middlemen has already been established or it may also decide to use a direct channel that has less competition For example, company may by-pass retail store channel (used by rivals) and adopt door-to-door sales (where there is no competition) However, the use of competition as a factor is always combined by any of the other factors. As going against the competition might not always be beneficial or logical.

Some Scenarios Business Goal Distribution channel approach
Launch a new product Use distribution channel with large sales force Grow revenue quickly Use multiple channel of distribution Gain traction in new market Use channel partner Exceed the needs of your end-users Offer end user additional product or expertise or after sale service Build a more efficient service operation Look out for channels that support the needs of your customers Generally If you do partner with distributors, do some vetting to ensure that they are capable of selling your products and finding the right market opportunities for them. Prioritize developing a long lasting relationship. Remember! You’re the product expert, but you’re leveraging their sales expertise.

Distribution Case Study
Activity Distribution Case Study

13. People November 2018 Author : Intellecap

Collective Discussion
Activity Collective Discussion Time: 10 minutes Ask the participants how many employees they have working for their organizations. Ask the participants whether they provide any training to their employees. Let them state the reasons why and why not. Note all these down on two separate (reasons why, reasons why not) flip charts and place them in the parking lot.

Customer Service Spectrogram
Activity Customer Service Spectrogram

People Product delivery salesperson Creative Sellers The order taker
Different types of sales teams exist with different customer touch points with the customer. They should work in tandem and maintain sufficient communication. Some examples include: Creative Sellers Product delivery salesperson Technical sales person The order taker The below are types of sales representatives that a company could choose to employ to deliver products. Remember, this is dependent on the type of the business model. A company could also adopt a mix depending on the product type and the capital they are willing to invest. Product delivery salesperson. His or her main task is to deliver the product, and selling is of less importance e.g. fast food, or mail. The order taker, and may be either ‘internal’ or ‘external.’ The internal sales person would take an order by telephone, or over a counter. The external sales person would be working in the field. Missionary sales person: he salesperson builds goodwill with customers with the longer-term aim of generating orders. Again, actually closing the sale is not of great importance at this early stage. Technical salesperson: e.g. a technical sales engineer. Their in-depth knowledge supports them as they advise customers on the best purchase for their needs. Creative sellers. Creative sellers work to persuade buyers to give them an order. This is tough selling, and tends to offer the biggest incentives. The skill is identifying the needs of a customer and persuading them that they need to satisfy their previously unidentified need by giving an order. Missionary sales person

People: Training 5 4 3 2 1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 5
Recruit and hire the right skill set. 5 Step 5 Step 2 Induction into the organization's culture Step 4 4 Step 3 Step 3 Sets out personal, achievable goals 3 Step 2 2 Step 4 Appraisals and goal revisions Step 1 Training your employees that interface with your customers is very important. Recruit people with the right skill set on interacting with customers. Watch out for those tale signs during the interview when hiring. For example, they should be pleasant and their body language should be welcoming. They should be able to practice active listening etc. Further, during all the stages of training the employee, inculcate the need and importance of customer service in the training. Generally, training employees presents an opportunity to expand the knowledge base of all employees. Some of the benefits include: Improved employee performance Increase employee morale and satisfaction Ensures consistency in the workplace Reduces employee turnover Increases innovation in products and new strategies among the employees Enhances company reputation and profile Specifically for the people interfacing with the customers, training should focus on: 1. Training staff to answer basic questions pleasantly. There is no stupid/ trivial question from the customer and all questions should be treated with the same level of seriousness and responses given as adequately as possible. 2. Communication skills. Communication among people interfacing witch customers should be streamlined so as to avoid a recurring complain by the customer that is never addressed. Remember, body language and facial expression is also a communication skill. 3. Satisfying the customer Remember the customers’ needs gets more sophisticated as they interact with the product thus there is need to offer CPD on customer service 1 Step 5 Provide Continuous Professional Development (CPD)

People: Importance of Customer Service
Retains Customers Reduces employee turnover Creates endorsements Prevents business failure Provides value People are the most important element of any marketing experience. Remember, people buy from people that they like, so the attitude, skills and appearance of all staff need to be first class Retaining customers: Keeping loyal customers is way less expensive than getting new ones. Satisfied customers become devoted buyers when a business is trustworthy. Provides Value Great customer service programs should focus on treating customers well, answering questions, and exceeding their expectations. Creates endorsements Loyal customers provide positive endorsements and reviews that can help strengthen the businesses’ brand. Reduces employee turnover When people work for an employer that provides excellent customer service, they are more engaged in their work and become an advocate for the business Prevents business failure When customers become frustrated over small problems that are not addressed, such as unclear communication, slow follow up on questions, or ignored requests, they shift loyalty and thus the business suffers Satisfied customers become devoted buyers. Employees that are satisfied, are more engaged and become advocates for the business. Focus on treating customers well, and exceeding their expectations. Loyal customers provide positive endorsements and reviews. When customers become frustrated, they shift loyalty and thus the business suffers.

People: Developing Good Customer Service
Improve your customer satisfaction Your staff needs to relate to your customer and provide customer service in a thorough way Look at every touchpoint Pay attention to the key points where the customer comes into contact with your brand and have a full view of the customer experience. Strengthen your customer service skills Make sure the customer service team has the right skills for managing your customers’ needs.

Continued Allow avenue for customer feedback Engage your team
To make sure you learn about the good, the bad, and the ugly experience your customers have, create an easily accessible way for customers to give feedback Engage your team All employees should be actively engaged in customer service. An active channel for feedback is important to encourage participation from the team Enhance your customer service strategy Practice proactive customer service. Make sure your organizational strategies have customers service practices embedded

Activity Myth Busting

People: Do’s and Don’t of Customer service
Listen to your customer Be complicated Underestimate the inexperience of your customers Respect your customer Always make your customer feel important DO! Be indifferent Blame the customer Be honest, open and fair DON’T! Ignore customer feedback Take responsibility Listen to your customer Respect your customer: Make your customer always feel important Be honest: Be open and e fair about prices, additional fees and extra charges. Always do what you promised Take responsibility: Always take responsibility for the problems or negative experiences that customers have. Always put yourself in the customer’s shoes: Always think of how you r products /services or the company looks like from a customer’s perspective Express gratitude: Always express gratitude which will make your customers feel appreciated for their loyalty to your brand Don’t be complicated: Never underestimate the inexperience of your customers. Customer service should be easy and straightforward Don’t be indifferent: Treat your customers’ problems as your own problems Don’t blame the customer: This will automatically make the customer lose faith in the product/service Don’t ignore customer feedback: Always listen to your customers and be open to any kinds of suggestions Don’t be afraid of customer Complaints: Don’t discourage complaints because they are inevitable. Any complaint is an opportunity to find and fix. Example for blaming the customer: It’s been known in the past that some companies use the technique of blaming its customers for having a slow and un-responsive customer service team. For example calling a company which has an automated message such as ‘ we are experiencing a lot of phone calls at the moment and be with you when we can’ is in other words blaming the fact there’s too many customers calling rather than seeing a fault in their team. Always put yourself in the customer’s shoes Fear customer complaints Express gratitude

14. Pricing for Fit November 2018 Author : Intellecap

Activity Polling

Tesla vs Mercedes Article
Activity Tesla vs Mercedes Article

Understanding Unit Economics
Video: Safaricom Video Article - Tesla Video - Safaricom

Understanding the Unit Economics: Unit costs
Unit costs are a quick way to check if a company is producing a product efficiently Fixed costs Production expenses that are not dependent on the volume of units produced Overhead costs: Vary depending on the level of output produced. They include direct labor costs and material costs All other variable costs associated with the production of the unit Unit economics, in general, is a profit/loss calculation per customer. It is also defined as the direct revenues and costs directly associated with developing a certain product, specifically expressed on a per unit basis. Analysts, investors, and other stakeholders to will use the unit economics to evaluate/assess a company’s financial performance. Potential investors will certainly ask about this indicator, and you also need to know it to make the right decisions on the project. It is important to identify the unit basis for your company! Gaining an understanding of your unit economics will help you: Put a margin to your product based on the unit cost to get the pricing Understand your business’ financial model Management will have an easier time determining break-even points and contribution margins, to aid in decision-making; Calculation of return on investment and other profitability tests will be facilitated; and Forecasting or predicting the future profitability of the company will be easier. The exact cost per unit will be dependent on things such as (1) product type (2) point of sale (3) delivery fees and (4) any other ‘cost inputs’. Typically, the larger a company grows, the lower the unit cost of production because of economies of scale. Formulae: Unit costs= Total costs/total output Example of fixed costs: Rent, salaries, insurance Variable costs: Direct labor costs are the salaries paid to those who are directly involved in production while direct material costs are the cost of materials purchased and used in production. Example: The total fixed costs of a company are worth KES 40,000. Variable costs worth KES 20,000 and you produced 30,000 units. The total production costs = = 60000 To arrive at the unit costs= /30000= 2 Therefore the unit production cost = KES 2

Pricing strategies: Factors to consider when determining the price
Unit COST COMPETITION DEMAND MARKETING OBJECTIVES REGULATIONS A business can only be sustainable if it is able to cover its costs. Based on what your competition charges & sometimes causes price wars The law of supply and demand and price elasticity, affects pricing Set the price to maximizing profits, sales and have a bigger market share. Prices of some essential goods are sometimes set by the government. In theory, setting a price should be a rational economics problem. You have a set supply of a product and there’s a certain level of demand for it in the marketplace. Since demand tends to increase as prices go down, you simply adjust your price until you’ve maximized profits. In order to set a price, you'll need to form a hypothesis. You can then test it and use other analytics to refine it. But don't rely on data alone to inform your decisions. Also take into account input from your customers and employees, what the competition is doing and your intuition.

Pricing strategies: Fixation methods
Cost Competition Demand Objective Competition Based Pricing Price are usually fixed closer to the price of competing brands. Cost Based Pricing Prices are fixed by adding the amount of desired profit margin to the cost of the product. Demand Based Pricing High prices are fixed when the demand is high regardless of the cost/ competitors and vice versa. Objective Based Pricing Low prices are fixed to attract clients or high prices fixed for exclusive products. Competitive based pricing: The process of fixing prices closer to the price of competing brands is called ‘young rate pricing’ Objective based pricing: It is applicable at the introduction of new products.

Video: Perceived Value
Article - Tesla Video - Safaricom

Perceived value Note! Definition
Perceived value is the worth of a product or service in the opinion of customers. This can include logical evaluations and emotional impressions. Usually, companies fixate on the gap between how much their products cost to make and how much they charge for them. But you should also focus on the gap between your price and how much value customers think it delivers, a concept known as perceived value. Companies often assume that if sales are slow they need to cut prices. But more often, Dearing says, “If nobody’s buying my product, it’s because the gap between price and perceived value either doesn’t exist or it’s not large enough.” Focus on the gap between your price and how much value customers think it delivers If sales are slow, it’s likely because the gap between the price and the perceived value isn’t high enough It’s possible that in some countries, like India or China, $5 a month is too expensive. For the U.S. or Japan it may be that $10 a month is still cheap. The price you set for a product also influences its perceived value. That’s why people assume that a $50 bottle of wine is better than a $10 one. Note! Other examples Cadbury chocolate verses fudge chocolate Dry fruit snacks in Kenya verses the US Beats by Dre verses pace Africa

Differential pricing: Horizontal Assortment
Similar pricing, for different products Note! Definition Differential Pricing is a method of charging different prices for the same type of a product, and for the same number of quantities from different customers based on the product form, payment terms, time of delivery, customer segment One way to expand your customer base is to offer multiple products at similar price points, catering to a range of tastes. This is known as horizontal assortment. The iPhone 5c, which comes in five colors, is a good example. Caters to a range of different tastes

Differential pricing: Vertical Assortment
iPhone 7 iPhone 7 Plus Another approach is vertical assortment, offering versions at multiple price points. While your most expensive model represents what your brand aspires to, customers will value features differently and some who don’t see the value in that high-end version might be willing to pay less for a stripped-down model. e.g: Charging different prices for iPhones with different amounts of storage increases the addressable market for the product with minimal additional cost. Software bundles that come with a maximum number of users or different tiers of customer service accomplish the same thing. No matter how much research you do, you’ll never know for sure what customers want. In addition to offering a variety of products levels, it's good to allow them to add features a la carte. By letting customers create their own packages you get real-time feedback about price and product configurations. Different pricing, for different products & features

Pricing: Helpful Nuggets
Figure out what goes through your customer’s mind when they see your product Logic Kicks in eventually, so your price needs to stand up to scrutiny People overvalue what they already have People don’t act rationally, so design for snap judgements Too much choice can be overwhelming Tip: Too much choice can be overwhelming. People would rather buy nothing than choose the wrong option. Similarly, variable pricing that slides upwards with more usage can scare potential customers. They'll often walk away if they can't easily figure out the right product to buy or if they're forced to make projections about future costs. Tip: Figuring out what goes through a customer’s mind when she first sees your product can help you set a price. write down all the things someone might associate with your product. Include things like whether it’s cool or expensive, but also other products that someone who buys yours might already own. e.g. This phenomenon played out at Weebly, which offers tools that make it easy to build websites. The company on its website emphasized that its service is free and easy. That made sense early on when the product was relatively simple, says David Rusenko, Weebly’s co-founder and CEO. But people associate free and easy with lightweight and cheap. Small-business owners, Weebly’s target customer, didn’t want to pay much for the websites, but they didn’t want their sites to look cheap, either. Weebly has evolved over time into a tool with a lot of features that's still a great value. To make this clear, the company revamped its image. Its new tagline, “create a site as unique as your are,” conveys a special product and its website is now filled with high-quality images from customer websites that look like they cost a million dollars to build. Tip: People don’t act rationally. In fact, in many cases the decision to buy something is a split-second one people make before the parts of their brains that apply logic and reason kick in. To do this people take shortcuts, falling back on a judgment they've already made instead of making the effort to evaluate the value of something new. e.g.: Take a pair of loafers, for instance. It’s hard to judge how much they’re worth just from an online image. But someone who sees a picture of a teenager wearing the loafers along with cutoffs and a hoodie is likely to conclude they should cost less than someone who sees a picture of the same shoes worn by a briefcase-toting businessman. Instead of trying to determine the value of the shoes—a difficult problem that would require the person to assess the material, the stitching and other factors—the customer substitutes a question that's easier to answer: How much would a high-school student or a businessman spend on shoes? That becomes the baseline for deciding whether the loafers are expensive or a bargain. Tip: Logic kicks in eventually, so your price needs to stand up to scrutiny. If your product is priced too low, someone will try to figure out why. If something cheap is dressed up with expensive imagery people will figure that out, too. Big purchases like a million dollar enterprise-software deal are going to require some rigorous analysis no matter how good the messaging. Tip: People tend to overvalue things they already have, a pattern known as the endowment effect. This is something that enterprise companies should be particularly aware of. It’s going to take an extra effort to get a customer to rip out something they already have even if what you’re selling is demonstrably better. That’s one reason why it’s easier to sell to a greenfield customer than to win one away from a competitor.

Advice Muramo Company on best pricing strategy
Activity Advice Muramo Company on best pricing strategy

Work on your unit economics
Activity Work on your unit economics

Activity Use the below worksheet to assess your product's perceived value and the accuracy your pricing. Sometimes not all the information is available and you may need to make assumptions. Make sure the assumptions are noted so others are aware.

Developing your pricing hypothesis
This worksheet can help you assess your product's perceived value and the accuracy of its price. In field (1) write down the things that people will think about when they first encounter your product. Use the left side for things someone might use in place of your product and the right side for things they'd likely use along with it. In field (2) write down the intuitive snap judgments someone will make about your product and what they'll conclude after a more rigorous analysis. Field (3) visualizes your product's perceived value, which should be heavily influenced by substitutes and complements. If your product replaces something that costs $200 it's perceived value likely won't be any higher than that. Field (4) will help you identify how broad of a market you are targeting. As you proceed with your pricing strategy, routinely remind yourself that your customers are analytical, but prone to leaps of logic; that they want bargains, but often base them on arbitrary reference points. Above all, they don't want to feel like they're on the hook if they make the wrong choices. If you can manage these desires while providing a product that customers are eager to pay for, you'll be on your way to building an enduring business.

15. Marketing Budget November 2018 Author : Intellecap

Things to Consider for your Marketing Budget
Set your annual goals Design your plan to achieve the goals that you define: Quantitative (numeric) goals such as total revenue, profit, number of customers, units sold, and breakdowns by product or channel as needed. Strategic goals — for example, you may want to expand into a new market with a new distribution channel, or you may need to reposition your brand to reflect a change in your business. Emphasize your positioning in the marketplace Your positioning strategy defines how you’ll differentiate your offering from your competitors. Your brand strategy defines what you stand for and how you’ll communicate with the market. Outline any plans for your products & services If you need to do anything to strengthen your product line and better support your positioning, address those issues in your plan. The Marketing Goals will help in the selecting the desired marketing activities. Try and set your annual goals in quarterly periods. This will help in the marketing activity results monitoring. Your company and product position in the market place will define the type of campaigns the company will adopt: If launching new

Review what works and doesn’t work in quarterly periods
Continued Outline your major marketing campaigns The top three campaigns you’ll run to generate leads, nurture customers, close, and/or market to existing customers The media you’ll use (for example, , social, print, telemarketing, trade shows, publicity, etc.) Tools, technologies or resources you’ll need – for example, a new website, an service provider, or a new piece of software’ Develop your tactical sales plan Plans for launching any new distribution channels and driving revenue through existing channels The number of sales reps you’ll need and the markets they’ll target Top priority markets, industries or customer segments; if you have a list of key prospects, include them Your plan for managing current customers The Marketing budget isn’t meant to be a static business tool. When your plan, position, strategy change the marketing budget should also be reviewed to align with the rest of the marketing plan Review what works and doesn’t work in quarterly periods This review will support in adjusting the budget on a continuous basis. Don’t be afraid to stop campaigns or strategies that aren’t providing results.

Marketplace for Nutritious Foods Marketing training for Businesses within the CoP Welcome deck 22nd November- 24th November Author : Intellecap.

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Marketplace for Nutritious Foods Marketing training for Businesses within the CoP Welcome deck 22nd November- 24th November Author : Intellecap.

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Presentation on theme: "Marketplace for Nutritious Foods Marketing training for Businesses within the CoP Welcome deck 22nd November- 24th November Author : Intellecap."— Presentation transcript:

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About project

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