Download Market Opportunity

Marketing Strategy
Module 4
Business Plan Course
Ryan Murray MBA, CBA
5 Points to Market
1.
2.
3.
4.
5.
Product/Service
Relative Price Point
Target Market
Market Mediums
Marketing Strategy
These Become Your Market
Opportunity
Your Marketing Strategy is unique to your business, but
Opportunity is the same for everyone
the Market
5 Points to Market
1.
2.
3.
4.
5.
Product/Service
Relative Price Point
Target Market
Market Mediums
Marketing Strategy
These are used to develop Your
Marketing Strategy
Your Marketing Strategy is unique to your business, the
Market Opportunity is the same for everyone
Relative Price Point
$$
$
Relative in terms of your competition
Developing Your Strategy
Price
Differentiation
Quality
Developing Your Strategy
Price
$
Relative Price Point
$$$
Differentiation
Quality
Developing Your Strategy
Price
Differentiation
Quality
Understanding Competition
• Competitive Advantage
• Rate your company’s competitive advantage from 1 – 5
• (1 being little to none and 5 being virtually untouchable)
1 through 3: little to no chance of being profitable in the long
run
4 or 5: good competitive advantage
Understanding Competition
4 Types of Competition
1.
Competition is defined as
“ANYTHING that eats
into your revenue”
Direct Competition
• Businesses that provide the same product/service
2.
Indirect Competition
• Businesses that provide a different product/service that meets the
same need
3.
Open Market
• Customers in your market area that should be buying your
product /service but aren’t
4.
Yourself
• Customers that already buy from you but should or would buy more
Competition
Open Market
5%
Existing
Customer Base
17%
Indirect
Competition
23%
Direct
Competition
55%
Fruit Tree Theory
1. Pick the low hanging fruit first
2. Go for the abundant fruit next
• (Don’t worry about the other 2)
Existing
Customer Base
17%
Open Market
5%
Indirect
Competition
23%
Competition
Direct
Competition
55%
Discussion Points (if we have
time)
• Market Mediums
• Marketing ROI
• Measuring your results
• Using a “control group” in your marketing
• Marketing Budgets
• Marketing Mistakes
•
•
•
•
•
Not doing it consistently
Not budgeting for it
Not planning
Buying “whatever”
Not buying anything
Homework
• Establish a marketing budget and implement it into your
financial forecasting. Make sure that your sales forecast is a
function of marketing and write the relation as part of your
business plan.
• Determine whether you are focusing on price, quality, and/or
differentiation.
• If your competitive advantage is below 4, brainstorm with
your management team ways to strengthen your competitive
advantage.
• Provide a written description of your marketing strategy.
Make sure that it is well enough written that someone outside
of the business could implement the strategy based on your
description.