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Marketing Your Business Idea
Marketing Your Business Idea
Course Outline
 Market Analysis
• Competitive Advantage
• Competitive Matrix
 Market Strategies
• Marketing Mix
 Pricing
 Promotional Mix
Marketing Your Business Idea
2
Market Analysis:
Competitive Advantage
 Competitive advantage is a
company’s ability to perform in
one or more ways that
competitors cannot or will not
match.
P. Kotler, Marketing Management, 2008
 Who are your major competitors?
Marketing Your Business Idea
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Market Analysis:
Competitive Advantage
S W O T Analysis
Internal Factors
Strengths
Weaknesses
Opportunities
Threats
External Factors
Marketing Your Business Idea
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Market Analysis:
Competitive Advantage
S W O T Analysis
Strengths
Weaknesses
 Technological skills
 Leading Brands
 Customer
Loyalty/relationship
 Product quality
 Scale
 Management






Absence of Important skills
Weak brands
Poor access to distribution
Low customer retention
Unreliable product/service
Management
Marketing Your Business Idea
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Market Analysis:
Competitive Advantage
S W O T Analysis
Opportunities
Threats
 Changing customer tastes
 Liberalization of
geographical markets
 Technological advances
 Changes in government
politics
 Lower personal taxes
 Change in population age
structure
 New distribution channels
 Changing customer tastes
 Closing of geographical
markets
 Technological advances
 Changes in government
politics
 Tax increases
 Change in population age
structure
 New distribution channels
Marketing Your Business Idea
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Market Analysis:
Competitive Matrix
Competitors’
Names
Competitive Indices
Product Type
Location
1 store –
wants to add 3
additional
Hours
Service
Price
Delivery
Mon – Sat
10 - 6
Sun 11 - 4
Excellent
High End
Yes; free
with 10 miles
Website
Wind In Your
Face Bicycle
Store
High End niche
ABC Bicycle
Store
Chain Store, Focus on
Low End
2 locations in
Houghton; 7 in
Michigan
Mon – Sat
10 - 6
Good
Lower
Yes, free
with a
purchase of $
150
Yes, user
friendly,
interactive
Jim’s Store
Independent - Main
focus – Low End;
some High End
1 store
Mon – Sat 11 - 7
Good to
Excellent
Lower for
most;
competitive
on High End
No
Under
construction
Marketing
Company
Chain Store – Low
End
1 location in
Houghton;
Mon – Sun
10-6
Good
Lower
Yes
Yes, too busy
Mon - Fri 10 -6
Sat 9- 8
Sun 10 -5
Good
Lower
No
No
Etc.
Yes, user
friendly
Offers online
sales
9 in Michigan
Paul’s Bike Shop
Independent – Low
End
1 store
Marketing Your Business Idea
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Marketing Strategies
Marketing Your Business Idea
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Marketing Strategies
Marketing strategies are the decisions
marketers (owners) make to ensure that
 products/services satisfy the needs of their
target market
 products/services are sold at the price a
customer is ready to pay and at the same
time that will promote business growth
 the distribution channels are convenient to
the customer
 the company communicates with the
customers effectively
Marketing Your Business Idea
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Marketing Strategies
Marketing Mix
4P’s
4C’s
Product
Price
Place
Promotion
Customer solution
Customer cost
Convenience
Communication
Marketing Your Business Idea
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Marketing Strategies
Marketing
Mix
Customer
Solution
• Product variety
• Quality
• Design
• Features
• Brand name
• Packaging
• Sizes
• Services
• Warranties
• Returns
Convenience
Customer
Cost
Communication
• Channels
• List price
• Sales promotion
• Discounts
• Allowance
• Payment period
• Credit terms
• Advertising
• Sales force
• Public relations
• Direct marketing
Marketing Your Business Idea
• Coverage
• Assortment
• Locations
• Inventory
• Transportation
11
Pricing
Pricing
What is your strategy?
 First determine your market position
• Match your positioning with pricing
strategy
 Example:
• Market Position: Offering high quality
products and services
• Pricing Strategy: Premium Pricing
Marketing Your Business Idea
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Pricing
Identifying A Strategy
Low
High
Economy
Penetration
High
Price
Low
Quality of Product
Skimming
Marketing Your Business Idea
Premium
14
Pricing
Strategies
 Penetration Pricing
• Pricing products and services at or below
competitors
• Used to gain market share, often times prices are
increased once a customer base is established
 Premium Pricing
• Pricing products and service above competitors
• Used when substantive competitive advantage is
present, creates an image of quality
Marketing Your Business Idea
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Pricing
Strategies
 Economy Pricing
• Pricing just above production and sales costs
• Used to create an image of low cost
 Price Skimming
• Charging a high price for new products to the
market when competition is low, prices drop as
competition enters the market with similar
products
Marketing Your Business Idea
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Pricing
Other Pricing Strategies
 Value Added Pricing
• Pricing products and services to create an image of
value added
• Often times used in times of recession to generate
continued consumer spending
 Total Cost Pricing
• Looking at the “total cost” to produce and sell your
products and services
• Including costs in the front up price verses charging
extra at later service dates
- Example: Service Contract or Warrantee
Marketing Your Business Idea
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Pricing: 3 C’s of Pricing
 Cost
 Competition
 Customers
Marketing Your Business Idea
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Pricing: 3 C’s of Pricing
Costs
 Cost of Production
• Products:
- Materials, Labor, Packaging and Shipping
• Services:
- Time and Salaries, travel
 Overhead Cost
• What does it cost of run your business day in
and day out?
- Examples: Rent, Utilities, Taxes, Advertising, Loan
Payments
Marketing Your Business Idea
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Pricing: 3 C’s of Pricing
Competition
 Research, Research, Research
• What does your competition charge for their products and
services?
• What is your competition’s market position and pricing
strategy?
• Do the market suppliers have control over mandating
market pricing?
 Evaluate how this relates to your business
• Example: If your competition is charging $20/hour for
service calls, but your internal cost structure requires you to
charge $25/hour, Penetration Pricing is not feasible.
Marketing Your Business Idea
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Pricing: 3 C’s of Pricing
Customers
 Research, Research, Research
• What are your customers willing to pay for your
products or services?
• What does industry research say consumers are
spending on your products and services? And
how often are they buying?
Marketing Your Business Idea
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Promotional Mix
Marketing Your Business Idea
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Promotional Mix
 Promotion is communicating with
customers and giving them information
that assists them in making a decision to
purchase a product or service.
 The elements of the promotional mix are:
•
•
•
•
•
Personal Selling
Sales Promotion
Public Relations
Advertising
Trade Fairs and Exhibitions
Marketing Your Business Idea
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Promotional Mix
Personal Selling
 Personal selling is one-to-one communication
with potential buyers of a product or service
with the intention of making a sale.
 Personal selling involves the use of a sales
force to:
• encourage customers to buy the product or service,
• support retailers and provide after-sales service.
Marketing Your Business Idea
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Promotional Mix
Sales Promotion
 Sales Promotions are incentives that are
designed to encourage the purchase or sale
of a product or service, usually in the short
term
 Examples: Coupons, sweepstakes, contests,
product samples, rebates, tie-ins, point of
purchase displays, trade shows, trade-ins,
and exhibitions
Marketing Your Business Idea
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Promotional Mix
Public Relations
 Public relations (PR) is the practice of managing
the flow of information between an organization
and its publics. PR is a means of keeping in touch
with the audience using topics of interest and
items that do not require any payment.
 Example: speaking at conferences, working with
the press, and employee communication.
 PR can be used to build a rapport with
employees customers, investors or the general
public.
Marketing Your Business Idea
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Promotional Mix
Advertising
 Advertising is a persuasive message to potential
customers to purchase or consume more of your
product or service.
 Media used: Television, radio, cinema, magazines,
newspapers, video games, the internet and billboards.
 Examples: Wall paintings, billboards, printed flyers,
radio, cinema and television adverts, web banners,
mobile telephone screens, shopping carts, web
popups, skywriting, bus stop benches, magazines,
newspapers, sides of buses, taxicab doors, roof
mounts, subway platforms and trains, the opening
section of streaming audio and video, posters, and the
backs of event tickets and supermarket receipts.
Marketing Your Business Idea
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Promotional Mix
Trade Fairs and Exhibitions
 Trade fairs or exhibitions help companies in a specific
industry showcase their latest products and services,
study activities of rivals, examine recent trends and
opportunities, contact potential clients, enhance the
company image, network, and get new ideas.
 Things to keep in mind when planning to attend
trade fairs: location, what kind of people attend the
fair, participation cost (participation fee, space
rental, construction of advertising displays, travel,
accommodations, promotional literature,
giveaways), and staffing capabilities of the trade fair.
Marketing Your Business Idea
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Marketing to Businesses (B2B)
 As a Supplier: through agents, brochures/
catalogues, website, trade shows,
telemarketing, direct mail.
 Media used: Newspapers, magazines, cinema,
radio, television, internet, and public relations
releases
 Third Parties: Family, friends, associates,
acquaintances, customers, and competitors
http://www.businessknowhow.com/marketing/marketingmix.htm
Copyright © 1995, 1997, 1999, 2000, 2001, 2002
Alan J. Zell, Ambassador of Selling, Portland, OR. All rights reserved.
Marketing Your Business Idea
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Marketing to Consumers (B2C)
 Mass Media: Print, broadcast, internet, direct
mail, telemarketing, fax & Email, public
relations releases
 Display Presentations (as applicable): Location,
building, signage, windows/counters/shelf
display, printed materials, website, attire,
business environment
 One-on-One: In person, letter, Email, fax,
telephone
 Follow-up: In person, letter, Email, fax,
telephone
http://www.businessknowhow.com/marketing/marketingmix.htm
Copyright © 1995, 1997, 1999, 2000, 2001, 2002
Alan J. Zell, Ambassador of Selling, Portland, OR. All rights reserved.
Marketing Your Business Idea
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Marketing Your Business Idea
You have reviewed:
 Market Analysis
• Competitive Advantage
• Competitive Matrix
 Market Strategies
• Marketing Mix
 Pricing
 Promotional Mix
Marketing Your Business Idea
31
Marketing Your Business Idea
32
Operations and HR in Your Business
33