BUSINESS EGDE TRAINING A FOCUS ON MARKETING-GROW YOUR BUSINESS

1. BUSINESS EGDE TRAINING A FOCUS ON MARKETING-GROW YOUR BUSINESS

2. Goal • Introduce Business Edge Training Module with a focus on marketing-growth strategies • Sensitise you on the need for Training staff • Enroll your enterprise

3. About Business Edge • Brand Name for IFC Management training products and services • International Standards • Practical workbooks, Blended seminar and self study approach

4. About Business Edge • Practical and flexible programs • Designed for the managers to improve performance for SMEs • Covering issues on enterprisemanagement

5. Why Its Unique • Designed for SMEs • Equips the management with skills and practical solutions • Can be localised • Draws case studies from the business • Innovative and interactive training delivered by accredited trainers

6. Why Train • Age of the knowledge worker and the people are driving the means of production • Talent and passionate execution comes through motivation • People are the differentiators

7. Peter Drucker. • “The most important contribution management needs to make in the 21st century is to increase the productivity of the KNOWLEDGE WORK and the KNOWLEDGE WORKER’

8. The Most valuable assets of the 21st c. institution will be the knowledge worker and their productivity

9. MODULE III HOW CAN I GROW MY BUSINESS? By the end of module III, participants have formulated draft growth strategy for their own business

10. Why are we here?

11. What is a business growth strategy? • Expanding sales leads to business growth • A business growth strategy specifies the road you intend to take • And how you intend to drive along to expand your sales • Must be within the broader framework laid out by your business vision and your business objectives.

12. Session 7: Analyze the spectrum of distinct growth strategies Why is it important to analyze the spectrum (variety) of growth strategies? Businesses have a broad range of growth options and you need to be able to choose the option that suits your business best. A business growth strategy gives your growth effort direction.  A business growth strategy clarifies the means you will apply to reach your target. As a result of a growth strategy, you will be able to grow your business later in a structured and well-planned manner, resulting in higher resource allocation efficiency and increased success chances.

13. Planned Growth Unplanned Growth • New markets are selected strategically, not by gut feeling • New employees are planned in anticipation of new markets • New lines of business are not started unless they meet with stated plans and goals. • Ownermanager focus on leadership & entrepreneurship. • Grab new customers as they come along • Last minute hiring decisions-staff is added in response to crisis • New lines of business are taken on without establishing whether they can be absorbed. • Owner manager suffers from stress & unsustainable workload Planned vs Unplanned Growth

14. Managed Growth Unmanaged Growth • Business has expanding sales and profits • Business has enough cash at the end of each month • Customer orders always delivered on time • Inventory levels are appropriate for sales levels • Business has expanding sales but elusive profits • Business perpetually runsout of cash, pays late • Customer orders frequently late and incomplete • Poor inventory management. Managed vs Unmanaged Growth

15. 1. Study the principal growth directions a business might take (where to go) 2. Study the main sources of thrust that drive business growth (how to grow) 3. Study how direction and thrust can be combined to become distinct growth strategies Session 7: Analyze the spectrum of distinct growth strategies How to analyze the spectrum of business growth strategies

16. 6.1 Study the principal growth directions a business might take • Market Penetration: means that you sell more of the same products in existing markets, either by way of increasing market share or product usage. • Market Development: means you sell more of the same products to markets locally or abroad. When you aim for new markets, you can either focus on untapped segments in your existing markets, or on new markets. • Product Development: means you sell new products to existing markets. This entails developing new products or refining / upgrading existing products. • Product Diversification– means you sell new products to new markets, typically by setting up a new business or taking stake in an existing business.

17. Session 7: Analyze the spectrum of distinct growth strategies Where to go EXISTING PRODUCTS NEW PRODUCTS Market penetration (Unsaturated Markets) Product development (Need, early entry, revitalizing or re-branding) EXISTING MARKETS Market development (Saturated markets) Product diversification (Spread risk, synergy) NEW MARKETS

18. 6.2 Study the main sources of thrust that drive business growth • To drive growth, a business strategy might emphasize on: • (a) Differentiation: The business aims at expanding sales by distinguishing one’s offer more clearly from competing substitutes, e.g., branding your product to give it some special features that make it unique in the eyes of the customers. • (b) Focus: The business aims at expanding sales by (re) positioning one’s offer in a particular market segment thought of as highly attractive, e.g., entering a high potential export market with your existing product. • (c) Cost: Business aim at expanding sales by undercutting prices of competitors. The option requires you to have a cost advantage.

19. Session 7: Analyze the spectrum of distinct growth strategies The growth strategy matrix

20. Session 8: Marketing initiatives in support of business growth 8.2 Export marketing Export marketing means expanding with existing products to new markets outside your country. Export marketing can help you to escape a growth deadlock in your existing local markets and to unlock new customer segments in lessprice-sensitive markets

21. 3. Set up a distribution network 2.Adapt your offer Carry out 1.market research Session 8: Marketing initiatives in support of business growth 8.2.1 How to market your products abroad

22. Personal contacts Internet First hand impressions Sources of market information Print media Specialized providers Electronic media Session 8: Marketing initiatives in support of business growth 1. Carry out market research

23. Session 8: Marketing initiatives in support of business growth 2.Adapt your offer Less customized Less expensive Maintain a uniform product and promotion Retain a uniform product, but adapt promotion Adapt the product offer only and retain promotion Adapt both product and promotion More customized More expensive

24. Session 8: Marketing initiatives in support of business growth 3. Enter the market Directly sell to your customers Through a market intermediary = Supplier = Target market = Supplier = Independent Intermediary = Target market Invest in a subsidiary A license franchise agreement = Supplier = Subsidiary- intermediary = Target market = Supplier = Franchisee-intermediary = Target market Set up a joint venture Build up strategic alliances = Supplier = Joint venture intermediary = Target market = Supplier = Target market