Download Session 7-59

Session 7-59
Introduction to Marketing Strategies
This portion of your plan maps out your strategies for marketing your products. The information you
gathered through your marketing research is used to make decisions
on the position your products will have in the marketplace, the packaging of your product or
service, the price you charge, and your promotional efforts including your distribution system, public
relations and networking, advertising plans, and how to build customer satisfaction through customer
service. Your marketing strategies explain how you want to communicate with, and attract the
attention of, prospective customers. Creativity, customer knowledge, and cost are important factors
in determining the use of your marketing methods and tools.
A. Positioning
Positioning is a technique for creating perceived value. Your positioning strategy will allow you to
penetrate niche markets more effectively.
Positioning is determined by your ability to meet your customer’s needs compared to the
competition. Therefore it requires you to know what makes your product unique when compared to
those of your competitors?
1. After reviewing the features and benefits you developed in Session 4, explain what makes
your products unique and superior enough to cause customers to purchase from you?
(Do you offer more value than your competitors? Higher quality? New technology?)
_[Click Here and enter your response]_________________________________________
2. Describe your position in the market. Use the benefits you identified earlier to describe your
position relative to that of your competition. (For example, do you offer high quality and
moderate prices? Or moderate quality and low prices? Or is your quality and price high
because you offer more individualized service and want to position yourself as a premium
business?)
_[Click Here and enter your response]_________________________________________
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B. Business Location
The location of your business will depend on what kinds of products you will provide, what kind and
amount of space you need, and what impact the location may have on marketing, production, and
distribution of your product. Remember, your ideal location may change as you learn more about
your industry and your business.
3. Where will the business be located? Explain why you chose this location, including how this
location will affect your marketing?
_[Click Here and enter your response]_________________________________________
4. What are the advantages or disadvantages of this business location in terms of
production, marketing, and distribution?
Advantages
Disadvantages
5. How does the cost of this location compare to other potential locations?
_[Click Here and enter your response]_________________________________________
C. Your Distribution System
Distribution refers to how you get your products or services to your customers. There are two
methods: direct sales or indirect sales. Direct sales is distributing your product directly to the
customer. Indirect sales means using agents, sales reps, distributors, or wholesalers, etc. The key is
for you to determine the best distribution method given your resources, your competitors' method,
growth goals, etc. Answering the following questions will help you to create an appropriate
distribution system:
6. How will you make your products or services available to potential customers in your start
up phase? (Consider direct sales, distributors, sales reps, direct mail, internet, etc.)
_[Click Here and enter your response]_________________________________________
7. Why did you choose the distribution system described above? What are the benefits of this
method? (Time, energy, finances, competitors' method, contacts already in place, etc.) How
will the use of this distribution system enhance or detract from your overall marketing effort?
_[Click Here and enter your response]_________________________________________
8. Are there additional distribution systems you would like to add in the future? Which
systems, and why?
_[Click Here and enter your response]_________________________________________
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D. Packaging Your Product or Service
Most people think of packaging as the physical package that surrounds a product. In fact, packaging
includes everything from your stationery, business cards and brochures, to
Your marketing slogan, your advertising, the layout of your store or Website, your business and
environmental ethics and the way you and your employees present yourselves to the public.
Decisions about packaging should be based on your marketing research. What is your brand
identity? How does it position you in the marketplace? If you offer American-made goods, is your
packaging made in America too? If your business is green, do your packaging decisions
communicate concern about resource use, waste reduction and so forth?
If you are marketing a service, the packaging of your company is just as important. A negative
impression of your company can dilute all of the positive aspects of your actual service. Packaging
in this sense includes such things as how you and your workers dress, the cleanliness of your work
vehicles, the attitude of the service provider, and so on.
9. How will you package your products or services? How will the packaging help to create the
image you want? How will it add value? What (if anything) will you do to reduce its
environmental impact)
_[Click Here and enter your response]_________________________________________
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E. Pricing Your Product or Service
Pricing strategy requires striking a balance between price and quality that will appeal to your
customers, while covering your costs and earning your desired profit margin.
Most businesses price their products services between the price ceiling and the price floor. The price
ceiling is the highest price a customer will pay, while price floor is the lowest price you can charge
and still make your minimum required profit. In general, as price increases, the number of customers
willing to purchase your product shrinks, and vice versa. The challenge is to arrive at a price that is
beneficial to both you and the customer.
10. How will you determine the price for your products?
_[Click Here and enter your response]_________________________________________
11. Is the price of your products or services high, average, or low in comparison to the
competition?
_[Click Here and enter your response]_________________________________________
12. Why did you decide on this pricing structure?
_[Click Here and enter your response]_________________________________________
13. Will you offer credit? On what terms? Will you offer discounts for quantity buying? Onsale policies
_[Click Here and enter your response]_________________________________________
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F. Promotion
Your previous research determined the needs and wants of your target customer. The next step is to
determine how to reach them with your promotional message in a cost-effective way.
Advertising
Complete the worksheet below to begin sorting out your advertising options and defining their
effectiveness for your market.
Advertising Worksheet
Step 1: Put a check mark by the advertising tools you intend to use.
Step 2: Fill in an estimate in the “What I think now...” column of what you think the cost
per month will be for each item you checked. Research the actual costs of each of
those tools, then fill in the “What research revealed...” column. Add up the
researched column and fill in the total cost at the bottom of the worksheet.
Step 3: Research how many of your targeted customers you can reach with each of the
tools you checked, and fill in the “Anticipated Reach” column.
(double-click to edit)
Tool
Newspaper
Magazines
Online ads
Yellow Pages
Online Yello
Pages
Billboards
Radio
Network TV
Cable TV
Novelties (e.g.,
caps, pens, etc.
Brochures
Trade Shows
Signage
Other
Intend to Use
Cost
Cost
What
What I think now…
research revealed…
Anticipated Reach
Researched
Monthly Cost
Total
0.00
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14. What advertising tools do you currently plan to use? How do they communicate your
brand identity? How will you track their effectiveness?
_[Click Here and enter your response]_________________________________________
15. Are there additional tools you might like to use in the future? Which ones and why?
_[Click Here and enter your response]_________________________________________
16. What is the average total cost per month of the advertising tools you plan to use? How does
this compare to what your industry research indicated to be an appropriate advertising cost for
your type of business?
_[Click Here and enter your response]_________________________________________
Public Relations and Networking
Public relations and networking can enhance the potential for positive word of mouth about you
and your business. Community involvement, sponsoring of worthwhile events and activities, and
participating in activities that nurture the networking process can build rapport with your customers
and the community.
17. List three potential public relations activities for your business. How can you make these
activities newsworthy?
_[Click Here and enter your response]_________________________________________
18. What networking activities are available within your market area?
_[Click Here and enter your response]_________________________________________
G. Customer Service Strategy
Customer service can be your best marketing strategy because satisfied customers help build your
business’s reputation and image. Successful business stay in touch with their customers, respond to
their concerns, and develop strategies for handling customer problems. As you grow your business,
you will need to develop a comprehensive customer service plan.
19. How will you measure customer satisfaction? How will you show your commitment to
customer satisfaction?
_[Click Here and enter your response]_________________________________________
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20. Who in your organization will handle customer complaints and problems? How?
_[Click Here and enter your response]_________________________________________
21. How does your customer service policy reinforce your marketing efforts and adhere to
your business’s mission statement and brand identity?
_[Click Here and enter your response]_________________________________________
22. How will you use technology to enhance your customer service strategy? How can
technology help you reach and stay in touch with your customers, suppliers, employees, etc?
_[Click Here and enter your response]_________________________________________