Developing Winning Marketing Strategies

1. 5 23/12/2010 Developing Winning Marketing Strategies

2. Contents • Introduction • Purpose & Objectives • Marketing Effectiveness • Positioning, Identity, Branding • Marketing mix • Product • Price • Place • Promotion • Marketing strategy implementation • Consistency, Integration, Synergy • Setting Targets & Tracking Progress CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

3. 1. Introduction CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

4. The Purpose of this Module • Effective marketing is a key factor for the success of any business • This module will help to Create an understanding of: • the role of marketing; • the key elements of the marketing mix, showing how how they work together to form a marketing strategy; • Important considerations for each element in the marketing mix; and, • ways to evaluate the effectiveness of marketing efforts. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

5. Objectives of Marketing • Move customers through the marketing funnel: TARGET MARKET AWARENESS Generate awareness within the target market segments Stimulate interest Facilitate favourable consideration Enable the purchase Cultivate customer loyalty INTEREST CONSIDERATION PURCHASE CUSTOMERS! LOYALTY CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

6. Marketing Effectiveness • Depends on much More than ‘advertising’ • Ultimately, effective marketing ensures businesses: • provide a product or service that the target market actually wants; • will make the products/services available where customers want to buy them; • when they want to buy them; and, • at a price they are willing and able to pay for them. • Importantly, marketing informs the target market[s] of availability and features in a way that generates enough sales to be profitable. …Marketing is all about building relationships. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

7. Positioning & Identity • Fundamental to developing strategies and making marketing mix choices • Positioning: • Where products are placed in the marketplace: • quality, price, availability, convenience, innovation • Identity: • How the business wants to be perceived • Low price • High quality • Personalized service • Wide selection • Must be able to back up marketing claims CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

8. Your BRAND • Everything a business does with marketing creates a brand for the business • Successful businesses are built on strong brands • Even small businesses can benefit from brand recognition • Promote your brand for long-term success • Protect your brand as you build it! CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

9. Exercise: Positioning & Identity • Based on the photo, come up with some ideas on positioning & identity for this business • What do you think about the POSITION of this business, relative to competition? • What IDENTITY do you think they could create in the minds of customers or potential customers? CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

10. 2. Marketing Mix CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

11. Elements of a Marketing Strategy • PRICE • (How much) • objectives • method • tactics • PRODUCT • (What you are selling) • quality • features • benefits • attributes • range MARKETING MIX • DISTRIBUTION • (Getting to market) • location • service • channels • intensity • PROMOTION • (Informing the market) • personal selling • advertising • sales promotions • public relations CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

12. Choosing the Marketing Mix • An Appropriate marketing mix depends on: • Characteristics and buying behaviour of target market[s]. • Features, benefits, attributes of your product[s]. • Your desired position in the marketplace. • The strengths and weaknesses of your competitors. • Resources available – human, financial & physical. • YOUR GOALS FOR THE BUSINESS! CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

13. Marketing Strategy: PRODUCT • What range of products/services will attract customers in the target market area? • What specific benefits of the product[s] are valuable to the target customers? • What level of quality does the customer expect [and is willing to pay for]? • What complimentary products can you sell alongside your core products to enhance profitability? CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

14. Product Characteristics • Size • Packaging • Name • Materials / ingredients • Technology • Product range / variety • Function / use • Style / aesthetics • Trends • environmental Match your product to your target market[s]. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

15. Exercise: Product Characteristics • For the seaweed extract business: • Describe important attributes of the product being offered – recall your Kevin Lancaster Exercise in Module 3 • Indicate how these features meet the demands of the target market cohorts CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

16. Marketing Strategy: PRICE • Price can convey a range of messages: • Affordability • Quality • Relative value compared to competitors • Image of the product is conveyed by price more than any other marketing mix component • Apply it carefully Rp. 290,000 …Remember the pricing strategies exercises in Module 3: Market Analysis Techniques CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

17. Pricing Objectives • CONSIDER HOW PRICE WILL RELATE TO YOUR BUSINESS OBJECTIVES: • Sales volume • Revenue goals • Profitability • Competitiveness • Image • Marketplace positioning • Desired price characteristics: • Straightforward • Easy to understand • Related to VALUE CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

18. Approaches to Price Setting • Price setting should be considered in the context of your overall strategy • Basic methods: • Cost Plus • Competitor matching • Negotiation • Strategic Pricing policies: • One price/fixed • Flexible pricing • Skimming price • Penetration/introductory price • Discounts: volume, cumulative quantity, seasonal CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

19. Exercise: Price Setting • For the seaweed extract business: • Identify pricing objectives • Explain the price-setting approaches that will be used Remember the role that PRICE plays in market positioning. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

20. Marketing Strategy: DISTRIBUTION • ‘distribution’ refers to getting goods and services to the customer. Parameters: • Location of operations • Location of sales transactions • Movement of goods to market • Location can be critical – provide easy access to customers • What distribution options are open for the type of business? …an old marketing adage has Location, Location, Location as the top three priorities for the success of a business. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

21. Location Considerations • Close to market versus close to suppliers • Cost versus convenience • Urban versus rural • Visibility • Accessibility • Size • Facilities • Industry cluster CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

22. Distribution Channels • Select the distribution channel that works for you & for your customers • costs & benefits of each channel Producer 1. 2. 3. 4. Wholesaler Agent/Broker Retailer Customer CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

23. Exercise: Distribution • For the SEAWEED EXTRACT business: • Identify the locations for facility and for sales • Determine how the customer will access the product CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

24. Marketing Strategy: PROMOTION • Communicating with the marketplace –with your target market cohorts! • Objectives: • Provide information and awareness • Differentiate your products • Accentuate the value • Stabilize sales CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

25. Promotional Activities Limited only by creativity Public Relations Press Releases Personal Selling Public Speaking Sales calls Sponsorship Walk-in Sales Promotions Advertising Business Cards Free Samples Website Price Reductions Newspaper Brochures Coupons Signs Radio Volume Discount CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

26. Low-Cost Promotional Tactics • Encourage word of mouth • Networking • Business cards • Testimonials • Provide Referral incentives • Focus on the benefit • Passion and persistence CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

27. Exercise: Promotion Brainstorming • For the SEAWEED Extract business: • Brainstorm as many promotional ideas as you can think of CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

28. It all depends on where & WHO the TARGET MARKETs are … Selecting Media CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

29. Online Marketing Opportunities • Meet the searcher’s intent Paid listing Automatic listing CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

30. Advertising Materials • Find the drama in the offering • Translate the drama into a meaningful benefit • State benefits in a believable way • Get people’s attention • Motivate the audience • Communicate clearly • Ensure the message is right for the target audience. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

31. Exercise: Promotional Materials For the SEAWEED EXTRACT business: • Select one type of promotional activity appropriate to the business and Develop the materials for the promotional activity. For example: a customer testimonial CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

32. 3. Marketing Strategy Implementation CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

33. Marketing Strategy Implementation Synergy Integration Consistency CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

34. Exercise: Marketing Strategy For the Scuba Diving Business, fill in the Marketing Strategy: PRICE PRODUCT MARKETING MIX DISTRIBUTION PROMOTION CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

35. Marketing Calendar & Budget • have a prioritized marketing plan • Timing of activities • Cost of activities CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

36. Aspects of Implementation Planning the Path • Company identity • Brand identification • Sales techniques • Customer service • Advertising techniques • Public relations • Timing and Patience The Implementation needs to be planned from A to Z CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

37. Setting Marketing Targets • targets drive the marketing strategy • With a marketing strategy in place, targets can be set to maintain priorities • Targets are useful for making effective decisions about allocating marketing resources. • Targets may be broken down by product, region, target market, etc. • targets may relate to: • Revenue in rupiah • Number of unit sales • Number of customers • Number of locations • Etc. …a note of caution: in a situation like this, marketing and sales could be used interchangeably, and they often are ---but be careful they are not the same thing!! Marketing encompasses selling, but the reverse is not true. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

38. Exercise: Marketing Targets • For the SEAWEED EXTRACT business: • Set sales targets for the first year; and, • Monthly. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

39. Tracking, Evaluation & Review • Identify key indicators for the business • Determine ‘baseline’ measures • Measure results • Compare results with objectives • Look at the specifics • Make changes where necessary • But not too quickly! Be careful not to react to blips in the marketplace; but, keep on top of trends. CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

40. Exercise: Tracking • For the SEAWEED EXTRACT business: • In addition to sales, identify the key indicators that you will want to track to measure marketing success. Volume produced? Spin-off Opportunities Quality standards met? Customer Satisfaction? Complementary products? CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

41. Survey Monkey: Free Online Survey Tool CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program

42. Objective Reflective Interpretive Decisional ORID: use it to gain an advantage over the competition! CIPSED Project State University of Gorontalo [UNG] Entrepreneurship ToT Program