New Venture Planning Workshop January 2003

1. New Venture Planning WorkshopJanuary 2003 Successful Marketing Planning and Guerilla Marketing Techniques

2. What is Marketing? Business function Business philosophy

3. Marketing as a business philosophy The Marketing Concept Organizing all the firm’s activities around the goal of being profitable by satisfying the wants and needs of its customers.

4. 4 Ps Marketing as a business function Managing exchange relationships Sellers----------------- Buyers

5. Limitations Resources: $$ Size Reputation Business expertise Short-term Mgmt by crisis Advantages Speed Flexibility Focus Closeness to customer Motivation Guerrilla weaponry New Ventures

6. Crucial Marketing Skills • Ability to make decisions under uncertainty • Ability to make plans and contingency plans • Creativity and resourcefulness • Evaluative thinking

7. Marketing Overview • Strategic Marketing Planning • Segmentation, Targeting, Positioning • Competitive Advantage • Forecasting • Marketing Research • Marketing Management • Evaluation/Assessment • Control

8. Why Do Marketing Planning? • It takes a lot more than a good idea “If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbor, though he builds his house in the woods the world will make a beaten path to his door.” (attributed to Ralph Waldo Emerson)

9. Why Do Marketing Planning? • “better” by whose standards—producer VS consumer orientation • “better” is not enough—better at an acceptable price • “make a beaten path”—not likely; the product must be available • “the world”?—only those who know about it and believe in it

10. Marketing Planning—Think of a Road Map A (start) B (destination)

11. Marketing Planning—Think of a Road Map Macro-environment A (mission statement) Micro-environment B (objectives) Marketing execution

12. Consumers Suppliers Competitors Other buyers Macro-environmental conditions Strategic Marketing Your firm Your buyers

13. Marketing Planning/Situation Analysis • Who are you trying to be? • Mission statement • Resources • Where do you want to go? • Financial/Personal • Society • Environment

14. Marketing Planning/Situation Analysis, cont. • Who are the other players?—micro-environment • Customers, segments • Suppliers • Competitors, direct and indirect • Substitutes • Colleagues/agents

15. Marketing Planning/Situation Analysis, cont. • Rules of the game—Macro-environment • Economy • Technology • Regulation • Socio-cultural factors

16. SWOT Analysis • Compare yourself with your competitors • Strengths • Weaknesses • Consider yourself relative to the macro-environmental factors • Opportunities • Threats

17. SWOT Analysis, cont. • Strategic Matching • strengths relevant to opportunities • weaknesses relevant to threats

18. Planned Marketing Execution • Product/Position • Pricing

19. Planned Marketing Execution, cont. • Channels • Promotion

20. Evaluation/Control • Methods/metrics • Key forecast points

21. An Example Case Young Canada Dock Builders

22. YCDB Mission Statement?

23. YCDB Resources?

24. YCDB Objectives • Financial/personal • Social • Environment

25. YCDB Micro-environment • Customers • Suppliers • Competitors • Substitutes • Other players

26. YCDB Macro-Environment • Economy (1987) • Technology • Regulation • Socio-cultural

27. YCDB SWOT • Strengths • Weaknesses • Opportunities • Threats

28. YCDB Marketing Execution • Product/Position • Pricing

29. YCDB Financial Estimation Average (high) selling price = $4000 Unit costs = $2700 Unit contribution = 32.5% = 1300 Fixed costs = $50,000 overhead + $10,000 marketing = $60,000 Break even: FC/(P-VC) = 46.15 units Market share? 400,000 cottages; replacement every 10 years-----40,000 docks per year; approximately 1/3 in Quality segment (13,333). So, market share to break even = 46/13,333 = .35%

30. YCDB Financial Estimation Selling price (low, kit) = $1200 Lumber store margin = $300 Unit costs = $650 Unit contribution = 28% = $250 Breakeven = $60,000/$250 = 216.7 units Market share: 216.7/26,667 = .8%

31. YCDB Marketing Execution • Channels • Penetration? • Exclusivity? • Intermediaries

32. YCDB Marketing Execution • Promotion • AIETA Goals (Awareness, Interest, Evaluation, Trial, Adoption)? • Direct • Advertising • Trade show • Selling

33. YCDB Promotion Alternatives

34. YCDB Evaluation/Control • Progress toward strategic goals • Metric • Method • Progress toward marketing objectives • Metric • Method • Contingencies

35. Guerrilla Marketing Toolbox • Complimentary alliances • PR • Creative promotions • Internet Marketing

36. Complimentary Alliances • Relationships with other businesses • Aim is to build both • Usually, cross-promotions • Add value to customer relationships

37. Forming Complimentary Alliances • Identify firms that serve your customers • Decide how you want the partnership to work—develop a proposal • Approach the decision maker • Explain the mutual benefits; anticipate objections • Be sure the results are measurable

38. Publicity • Newsworthy • Two-edged sword • Requires work • Press releases: • Headline—news angle • First paragraph—basic facts • Second paragraph—lively quote • Third paragraph—elaborate basic facts • Fourth paragraph—details • Send it to your contacts (You DO have contacts!)

39. Etc. • Web Page Uncertainty—What gives consumers confidence? • E-mail considerations • Add value—win-win • Put the consumer in control • Creativity • Advertising • Creative • Simple • Driven by objectives

40. Guerrilla Marketing Steps • Find the inherent drama in your offering. • Translate that drama into meaningful benefits. • State your benefits in a believable way. • Get the attention of your target. • Motivate your audience to do something. • Confirm the clarity of your action. • Test your finished product against your strategy.

41. Carl Obermiller carlo@seattleu.edu