Your Market Analysis and Marketing Plan

1. Berkley Center for Entrepreneurial Studies Your Market Analysis and Marketing Plan Presented by: Cynthia Franklin Senior Associate Director, Berkley Center

2. What’s the Difference? Market AnalysisDescribes Targets (Who & Why) Marketing PlanDescribes Tactics (How) • Customers • Competition • Competitive Advantage • Critical Success Factors • Critical Risks • Potential Sales/Market Share • Product Positioning • Price • Placement • Promotion • Sales Process • Partnerships Berkley Center for Entrepreneurial Studies

3. Why Segment the Market? • All firms have limited resources. They can’t be all things to all people. They must decide where to focus their limited time, money and human capital so that they yield the greatest return. • That means identifying “right-sized” pieces of the market to go after. Berkley Center for Entrepreneurial Studies

4. What Makes a Market Segment Promising? • Measurable: possible to determine size • Significant: large enough to be profitable • Recognizable: distinct enough so that you can identify its members • Compatible: with your venture’s mission, strengths, ability Berkley Center for Entrepreneurial Studies

5. Ways to Target the Market • Geographic • local, regional, national, international • Demographic • B2C: gender, age, income, education, ethnicity • B2B: revenues, # employees, industry • Psychographic • values, lifestyles, hobbies • Behavioral • benefits sought, usage rate Berkley Center for Entrepreneurial Studies

6. Tips for Identifying Market Segments • Secondary Research • Databases & Reports • Newspapers & Magazines • Trade publications and Trade shows • Ask • Industry players • Potential customers • Suppliers • Observe Berkley Center for Entrepreneurial Studies

7. Make Sure Your Product Is Compelling • What problem will you solve? What need/desire does your product address? • How will your product make their lives better, easier, happier? • Know what your customers are currently doing: • Going to the competition • Using another solution • Nothing • Know how satisfied they are with existing options. • How hard will it be to get them to change what they’re currently doing? Berkley Center for Entrepreneurial Studies

8. Who Is My Competition? Competition = everybody who’s after the same consumer dollar you are. • Direct Competitors • Indirect Competitors • Possible New Entrants Berkley Center for Entrepreneurial Studies

9. How Stiff Is the Competition? • Analyze your competition. • Look for marketplace gaps you can fill. • Develop a competitive matrix. Berkley Center for Entrepreneurial Studies

10. Your Competitive Landscape Berkley Center for Entrepreneurial Studies

11. Creating a Competitive Advantage Having a Sustainable Competitive Advantage allows you to distinguish your product from the competition’s. It’s what gives you a significant edge. The basis of your SCA must not be able to be duplicated or imitated and is not substitutable. Berkley Center for Entrepreneurial Studies

12. Creating a Competitive Advantage • Tangible Items • Intellectual property rights • Exclusive license Berkley Center for Entrepreneurial Studies

13. Creating a Competitive Advantage • Intangible Items • Superior Product/Brand • Quality • Selection • Availability • Operational Excellence • Innovation Leadership • Intimate Customer Relationships/Experiences • Cost Advantage Berkley Center for Entrepreneurial Studies

14. Your Critical Success Factors CSF = What absolutely must happen in order for you to be successful. In other words, “If I don’t do X, then my venture will fail.” • Identify five or fewer CSFs. • CSFs will be driven by your industry, business model, target markets, etc. Berkley Center for Entrepreneurial Studies

15. Critical Risks • Investors aren’t looking for risk-free businesses; there is no such thing. • What they are looking for is evidence that you know where potential trouble lies and that you’ve thought of contingency plans. • Be forthright in your assessment of risk. Berkley Center for Entrepreneurial Studies

16. Examples of Common Critical Risks • Competitor response to your entry into the market. • Sales projections below expectations. • Unable to find suppliers. • Inability to find a distributor. • Inability to get shelf space. Berkley Center for Entrepreneurial Studies

17. The Marketing Plan Your Go-to-Market Strategy Berkley Center for Entrepreneurial Studies

18. Your Product • Core Product: Primary benefit • Tangible Product: Features • Augmented Product: Enhances purchase exp. • Communicated Product: Branding Berkley Center for Entrepreneurial Studies

19. Pricing • How much can you charge? • Will your products be bundled? • Will you be offering discounts, leasing, financing, coupons, etc.? • Avoid competing on price—for most, it’s not a winning strategy. Customers who shop based on price tend not to be loyal. Berkley Center for Entrepreneurial Studies

20. Placement: Getting It to the Customer • Direct to your customer • Online • Own physical location • Indirect to your customer • Through retailers • Through wholesalers Berkley Center for Entrepreneurial Studies

21. Promotion: Getting Their Attention • Common Tools • Advertising (print, broadcast, online) • Direct mail • Email/website • Social networking • Trade shows/events • Cold calling/telemarketing • Face-to-face • Public relations Berkley Center for Entrepreneurial Studies

22. Choosing Your Marketing Mix Factors to consider • Choose media your target segments use most. • Take into account how complex your sale is (big ticket, new technology, multiple decision makers). • Use media appropriate for your product. • Target your message so that your customer receives it when they’re most receptive. • Use an assortment of tactics to send a unified message. • Be focused. Berkley Center for Entrepreneurial Studies

23. What Happens When CustomersRaise Their Hands? • What systems do I need in place to handle customer inquiries and process orders? • Fulfillment • Shipping • Brochures/Sales literature • Website Berkley Center for Entrepreneurial Studies

24. Partners • Seek out partners for all phases of the Go-To-Market Strategy. • Collaborate with potential “competitors”. Berkley Center for Entrepreneurial Studies