ONE IDEA CHANGES EVERYTHING! MARKETING PLAN DECEMBER 07, 2013

1. ONE IDEA CHANGES EVERYTHING! MARKETING PLAN DECEMBER 07, 2013

2. Marketing plan • Overall Objectives • Market Analysis • Customer needs, market size • Distribution • Pricing strategy • Sales/promotion strategy • Sales projections, 3 scenarios marketing plaN: CONTENTS

3. Marketing means communication of actions during • Design • Manufacturing • Promoting • Selling • Delivering • Servicing marketing plaN: What Does it mean

4. Questions that should be answered • How big is your target market? • What are major segments of you market? • Who are your customers? • What are their needs? • What are their preferences? • Where do they buy? • Why do they buy? • How do they pay? • Is your market shrinking or expanding, or stable? • Who are your competitors? • Their location? • What are their strengths and weaknesses • Do they share the same opportunities and threats as you? • Product, Pricing marketing plaN: market Analysis

5. Who are your competitors? • Their location? • What are their relative strengths and weaknesses • Unique opportunities and threats • Product • How are they unique? • Pricing • What is their pricing structure? • How are they positioned? • Promotion • How do they promote? • Do they have a brand identity? • What is their advertising message? • Placement • Where are they located? Advantage or disadvantage? • How do distribution channels differ? marketing plaN: market Analysis

6. Objectives (SMART) • Create a timetable • Establish performance goals and standards • Create budgets • Evaluate your strategies • Business goal examples • Market share 20% in the next six months • Increase sales by 20% in the next six months marketing plaN: Objectives, Strategies, and tactics

7. Strategies • Your plans for achieving your objectives • Segmentation strategies - Targeting customers • Demographic – age, gender, income level • Psychographic – interests, activities, beliefs • Behavioral – observations of consumer shopping pattern and placement based on those patterns • Geographic – location (neighborhood, rural, suburb) marketing plaN: Objectives, Strategies, and tactics

8. Competitive advantages • Proprietary technology • Specialized niche • Product advantage due to better sourcing, location,or processes • Unique brand identity • Positioning • How products are positioned in the market to key in on competitive advantages or segmentation strategy marketing plaN: Objectives, Strategies, and tactics

9. Product position should: • Benefit target audience • Separate yourself from competitors • Be unique difficult to copy • Tactics • The specific actions businesses take to produce, price, place, and promote their products • Should be unique • Use creativity, insight, and innovation • 2-1 promotions • Selling through specialty boutiques marketing plaN: Objectives, Strategies, and tactics

10. What do you plan to offer? • Product lines • Product mix • Brand your product/service • Brand identity – how you choose to present your product • Brand image – association that your brand evokes in consumers’ mind • Branding strategy – telling thestory of your business and products in an enticing way • CREATE YOUR BRAND • Choose a logo • Build & manage your brand marketing plaN:Product

11. Basic Concepts • Cost – What you spend to produce your product • Price – What you will charge for your product • Value – What does your consumer believe your product is worth • Demand – amount of your product that customers are willing and able to buy at a specific price • Pricing Objectives • Maximizing profits (skimming strategy) – high short-term profits • Maximizing sales volume (penetration strategy) – sacrifice $ to gain market share • ROI – Achieve target return on investment • Meeting or beating the competition – Matches competitors’ prices • Quality leadership – Price implies quality (Rolex) marketing plaN:Price

12. COSTS • Variable • Fixed • Total costs • Break-even analysis • TR = P*Q • TC=TFC + (AVC per unit *Q) • Break-even point = TR = TC • Break-eve quantity = TFC/(Price-AVC) marketing plaN:PRice

13. Strategies • Cost-plus • Premium pricing – pricing above market price • Skimming – Maximizing profit margin setting price high in the short-term (Unique or innovative products) • Penetration pricing – setting price low to enter the market • Pricing strategy should align with • Product strategy • Distribution strategy • Promotional strategy marketing plaN:Price

14. Promotional Mix • Advertising • Potentially expensive and flashy way to communicate your product information to a consumer to persuade them to purchase • Sales promotion • Consumer • Trade • Publicity • PR relations • Strategies • Pull – target an end consumer (consumer will “pull” the product through distribution channel • Push – target wholesale and retailers (They will “push” product to consumer) marketing plaN:PRoMoTion

15. Strategies • Pull – target an end consumer (consumer will “pull” the product through distribution channel • Push – target wholesale and retailers (They will “push” product to consumer) • Manage Promotions • Set a budget • Create a calendar • Evaluate effectiveness • Sale Projections • Forecast 3 scenarios (realistic). Based on (estimated market size) x (price). marketing plaN:PRoMoTion

16. Placement/Distribution • Activities involved in moving good from producer to consumer • Identify partners • Retailers • Wholesalers • Distributors • Creative Placement Strategies • “Piggybacking” (Free X with the purchase of Y) marketing plaN:Placement

17. As a small business owner you may have some of additional burdens compared to larger businesses • Loan payments • Additional job • Familial responsibilities • Good marketing plans help • Organize thought / focus efforts • Prevents duplication of efforts • Avoids wasting precious resources marketing plaN: Importance

18. Investor/lenders • Potential of the business • Target audience- Who are you selling to? • How will you position yourself in the market? • How well do you know the customer and the market? • How realistic are your goals? • What make your product unique? marketing plaN: Importance

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