Download Business Plan Preparation ESBM 4830 & EMEN 4825

Business Plan
Preparation
Frank Moyes
Leeds College of Business
University of Colorado
Boulder, Colorado
Marketing Strategy
Tonight
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Marketing Strategy
Revenue Model
Customer Surveys
In the Fire – Industry Analysis & Model
Company
Hand-in
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10 Call Reports
Competitive matrix
Marketing Strategy
Next Week
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Business Analysis Assignment
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Present Mar 5
PowerPoint 10 minutes, 6-8 slides
Market Analysis
 Industry Analysis
 Product/Service Description
 Profitability
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Marketing Strategy
Business Analysis Assignment (cont)
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Hand-in 3 ring binder
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Market Analysis - draft
Industry Analysis - draft
Product/Service Description - draft
Value Chain analysis
Competitive matrix
Financial COMP’s
Revenue Model
20 interview Call Reports
Marketing Strategy
Business Plan Elements
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Executive Summary
Company Overview
Market & Industry Analysis
Product/Service Description
 Marketing Plan
 Operations Plan
 Development Plan
 Management
 Competitive Advantage
 Financial Plan
 Funding
Marketing Strategy
Marketing Plan Objectives
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Build on Market & Industry Analysis
Define the strategies & key actions to
exploit the opportunity
Marketing Strategy
Marketing Plan Outline
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Customer Research
Target Market Strategy
Channel Strategy
Positioning
Product/Service Strategy
Pricing Strategy
E-commerce
Communications Strategy
Sales Strategy
Revenue Model
Marketing Strategy
Customer Research
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Show your results
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Prove
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George’s Questionnaire - qualitative 20 people
Surveys – walk-up, mailed, email, on-line
You solve a problem
Features are wanted
Customer understands the benefits
Customer will pay your price
You know how customer decides
Don’t cook the books
Marketing Strategy
How Do Customers Make Decisions?
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Decision making process – where, when &
how
Initiator, Influencer, Decider, Purchaser &
User
Identify criteria used to make decisions
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Criteria may be different than your features
Customers buy benefits
Marketing Strategy
Target Market Strategy
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Consumers vs. purchasers
Profile of the customers you will serve
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Consumer: demographics, psychographics & values
Business: industry, size, location, purchase decision
How will you overcome brand loyalty? What
will cause customers to switch?
Future markets
Marketing Strategy
Channel
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Describe and justify the distribution channels
Potential channels
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Describe how you will gain access to the
channels
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Distributors, wholesalers, retailers
OEM’s & VAR’s
E-commerce
Identify specific companies
Decision making process
Delivery to your customers, e.g. UPS is not the
channel
Marketing Strategy
Positioning
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Positioning is in the mind of the customer,
relative to the competition
What must target customer believe about you
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“perceptions, impressions and feelings”
How are you unique & different?
Other considerations
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Name of your company
Company characteristics – essence of personality,
tone & manner
Marketing Strategy
Attribute Map
Attribute 1
Competitor 3
You
Competitor 1
Competitor 2
Marketing Strategy
Attribute 2
Hot Chocolate
Flavour
Brown Palace
HC
Ski Resort
cafe
Hershey
packets
Marketing Strategy
Convenience
Hot Chocolate
“Coolness”
HC
Ski Resort
cafe
Hershey
packets
Brown Palace
Marketing Strategy
Price
Product/Service Strategy
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Not the description
Product/service roll out
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Enhance the product/service with
operations & service
Actions to sustain competitive advantage
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Initial product/services
Future product/services
New features & benefits
New technology
New process
What features & benefits are most
persuasive to get the customer to act?
Marketing Strategy
Pricing Strategy
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Describe and justify your pricing strategy
Provide evidence that your target market
will accept your price
Position your pricing relative to current
and potential competition
Low price usually is NOT a good
strategy!
Measure of management
Marketing Strategy
What Are the Pricing Methods?
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Value pricing - how much is customer willing to pay?
Commodity pricing
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Set by the market
Supply and demand
Seasonality & perishability
Competition
Payback period – depends on impact on company profit
Rule of thumb – Keystone
Introductory low price to get customers to use
Cost plus – markup
Transaction fee
Razor & razor blade
A la carte
Marketing Strategy
Communications
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How you will communicate with current and
potential customers?
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Advertising – paid advertising newspapers,
magazines, TV, internet
Public relations – articles in paper, journals, blogs,
websites
Printed materials – flyers, brochures
Performances, concerts, exhibitions
Exhibitions
Why is this the most effective strategy?
 Be imaginative! Be a guerilla!
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Marketing Strategy
Guerilla Examples I
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New restaurant invites local hairdressers for free
meal just after opening
Mattress retailer has sleep over advertising on the
ceiling of a retail store
News is created so it will be covered in local
newspaper
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Computer store does computer training for underprivileged
kids
Owner makes bold predictions, does something unusual
Articles are written by the entrepreneur for
newspapers
Mike Morris, Syracuse University
Marketing Strategy
More Guerilla Examples II
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Reciprocal advertising: two businesses mention one
another in their ads
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Store offers discount card/coupon that appreciates in
value each time it is used
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Coupon that is worth something different each time it
is used
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Theatre places speakers outside front of facility with
movies soundtracks playing; bakery purposely lets
smells waft into customer passageway of mall
Mike Morris, Syracuse University
Marketing Strategy
More Examples III
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Bowling alley charges based on number of
bowling pins customer knocks down
Bicycle retailer puts promotional tags on bike
racks around town
Day care center adds cameras and streaming
videos so parents can see how children are
treated
Flower shop with lack of visibility at their
location decorates popular park and some small
cafes in the area with creative and simple flower
arrangements
Mike Morris, Syracuse University
Marketing Strategy
Sales Strategy
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How will you get orders?  How will you recruit,
 Personal selling
train, and compensate
 Online purchasing
our sales force?
 TV infomercials
 Direct mail
 How will you support
 800 telephone
the sales effort?
Who will do the selling?
 Internal staff
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An internal sales force
Field sales force
Manufacturer's reps
Telephone solicitors
Marketing Strategy
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Service operations
Revenue Model
Marketing Strategy
Two Approaches
down – market penetration &
timing
 Bottom up – pipeline, revenue by
customer
 Top
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model Variables
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Market potential - number of customers, transactions or
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Market share - penetration rate
Product/Services offered
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units, purchases
 Size & growth
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Roll-out strategy
Range & mix
New Products/Services
Obsolescence
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Price per customer, transaction or unit
Average revenue per customer or transaction
Frequency of purchase – per day/week/month
Capacity Utilization – per time period, event
Prices
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Channel strategy - discount
Marketing Strategy
Revenue Model (Bottom-up)
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Identify specific customers
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Determine
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Identify decision maker
Annual purchases today & future
Who purchase from & level of satisfaction
What do you need to do to get an order?
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If you meet the criteria, how much business can
you expect?
Marketing Strategy