DEVELOPING A WINNING MARKETING PLAN

Transcription

1 DEVELOPING A WINNING MARKETING PLAN

2 SESSION OBJECTIVES Understand Marketing and definition Difference between sales and marketing The marketing mix Tools of promotion and determining which works best Online and social media marketing Developing your marketing plan

3 MARKETING DEFINED Approved definition by American Marketing Association- Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers.

4 MARKETING DEFINED. The process of getting the right products and services to the right customers at the right place and price using the right promotions and publicity.

5 MARKETING. Marketing is getting the emotions you want from your target customers meeting customer needs profitably.

6 WHAT IS SELLING? Selling is the exchange of goods for money or compensation. Selling is satisfying the customer s need or want.

7 WHAT IS SELLING? The last step in the chain of commerce, where a buyer exchanges cash or value for a seller s good or service.

8 Selling is simply that part of marketing concerned with persuading customers to acquire the product or service of an organization.

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11 MARKETING MIX A unique blend of products, pricing, promotion and distribution (place) targeting a specific group of people. Expanded Marketing Mix. People- customer service Process- i.e. process of handling customer complaint Physical Environment- i.e clothing stores

12 THE 7PS OF MARKETING Product Place Price Promotion People Process Physical Environment

13 PRODUCT It must meet a defined need. Establish demand - market testing. Your USP- Unique Selling Proposition; these are the clear benefits and features that differentiate your product from competitors. Your USP can change as business evolves.

14 PLACE Where product is sold to customers. Location where sales are made. Intermediaries such as wholesalers, retailers or sales agents. How to reach end users.

15 PRICE This generates income, more importantly PROFIT! All other elements of the marketing mix incur Costs. Understand the relationship between Cost, Price and Profit. COST PRICE PROFIT What it costs to make including time, materials and overheads What you can charge in the market place based on value and cost = Price - Cost

16 PROMOTION Consider who your customers are and how best to reach them. Market segmentation; divide your overall target market into smaller sub markets made up of people with same needs. Helps you target them in the right way.

17 PROMOTION - SUB MARKETS You can use the following to profile and divide your consumer markets: Behaviour- usage, frequency, impressions, convenience Character- lifestyle, personality, trendsetter / follower Socio economic factors- profession, income, location, buying patterns / loyalty, age and gender

18 PROMOTION- SUBMARKETS If segmenting business market, you could consider the following Company size Industry type location

19 THE MARKET Potential Market- Those in the total population who have interest in acquiring the product. Available Market Those in the potential market who have enough money to buy the product. Qualified available Market- Those in the available market who legally are permitted to buy the product. Target market- The segment of the qualified available market that you have decided to SERVE.

20 MARKET SEGMENTATION Is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. They are based on lifestyles, demographics and personality of target market.

21 MARKETING AND PROMOTIONAL TOOLS Now getting your products noticed! Not every method will work for your business, and the methods can change as the business develops or grows. However you must be clear on the following:

22 PROMOTIONAL TOOLS What message do you want to communicate? Who is the audience? What is the best way to communicate with them? What budget do I have? What measure will I use to know if I have been successful?

23 SIX MAIN TOOLS FOR PROMOTION Public Relations- PR is about creating and maintaining an image for your business or product that s the essence of its value and integrity, and that forms your reputation. Advertising 3 main reasons for advertising; create awareness among target audience, persuade customers to buy your product by promoting the benefits Keep up company profile

24 PROMOTION TOOLS Internet & online marketing- A well designed and managed website can allow a company of any size reach customers all over the world. If you plan to sell your product online then the structure and functionality must allow you meet promises and fulfil orders.. LinkedIn, Facebook, Twitter, Instagram Direct Marketing- direct mailing, marketing and telemarketingworks best with existing customers

25 DIGITAL MARKETING TIPS Separate your personal handle from business handle. Build a strategy around how you use the social media platforms. Learn to sell without selling. Have a smart phone.

26 TOOLS OF PROMOTION Sales promotion - Short term activities to encourage customers to buy, and boost sales for a limited period of time. Price reductions, vouchers, BOGOF, extended guarantees. However consistent discounting will damage the image. Personal selling - This enables you to listen to prospective or existing customers needs and allows you to convey the ethos and values of your business. This personal interaction also offers valuable opportunity to get first hand feedback on your products, and your competition.

27 THE MARKETING PROCESS Understand customer needs and wants Design a customer driven market strategy Construct a marketing program Build profitable relationships

28 MARKETING PROCESS I Understand Customer Needs and Wants Research Consumers and the Marketplace Manage Marketing Information and customer data

29 MARKETING PROCESS II Design a customer driven Marketing Strategy Select customers to serve- Market Segmentation and targeting Value Propositiondifferentiation and positioning

30 . MARKETING PROCESS III Construct a marketing program that delivers value Product and service designs- build strong brands. Price- create real value Place- Manage demand and supply Promotion- Create the value proposition

31 MARKETING PROCESS IV Build Profitable Relationships Customer Relationship Management- with existing customers Product Relationship Management with selected suppliers

32 MARKETING PROCESS V Capturing Value from customers in Return Generate revenue, Earn profit Create loyal satisfied customers Increase Market Share

33 WHAT YOU SHOULD KNOW ABOUT YOUR MARKET Target Who are they decision maker? Needs, Wants What do you need to solve? What motivates them to buy Value Perception Their perceived value equation.

34 THE VALUE EQUATION Value = Benefit/Cost

35 WHO IS YOUR COMPETITION? After identifying your target market, you must build an understanding of the competitive conditions

36 The Marketing Plan ACTIVITIES PLANNING PROCESS

37 WHAT IS A MARKETING PLAN A Marketing Plan is a written document that outlines in great detail what the organization hopes to accomplish by following the Plan. The Plan should have specific strategies that will be implemented and should help the organization achieve its goals.

38 You have got this product or service you want people to know about it in the most effective way and at the lowest cost. So you need a marketing plan.

39 A desired Result STEP 1 Clearly define the results you want to achieve as clear as possible in your mind, then write it down on a piece of paper. Sounds simple? You can easily have an ineffective Marketing Plan when you have more than one desired result.

40 Three main points of step 1 STEP 1 a. It must be something worthwhile- For you b. It must be a single desired result c. It must have great clarity and be very easily understood.

41 STEP 1. EXAMPLE Redcup is a brand new company which plans to supply high quality beverages, primarily coffee, to offices. The desired result for red cup is to be the beverage supplier to 5,000 clients within 12 months.

42 What is it worth? STEP 2 After you have clearly defined the outcome( desired result) you need to calculate what its worth.

43 Key points: STEP 2 a. Work out what your desired result (step one) is worth b. Make sure you identify the profit or contribution as well as the turnover c. Depending on the time scale for your desired result, you may like to identify the value in the short, medium and longer term

44 STEP 2 EXAMPLE Redcup treats every employee as a client, so 5000clients spending N500 a week on orange juice and other beverages equals 130,000,000. Redcup works on a 40% gross margin,( prior to overheads, interest and tax) which means that its profit will be 52,000,000

45 STEP 3 What are your Consequences? Think really hard about all the consequences your plan might have before you start it. This is where you identify all upsides, not just financial, but all the good stuff and include the downsides. The biggest consequence of not achieving the desired result would be the sense of frustration at having missed an opportunity.

46 Key points: STEP 3 a. Identify the upsides and possible downsides of your marketing plan. b. Spell out what might happen if you don t pursue your desired result(i.e. do nothing) c. Be realistic and honest It will help persuade doubters that you ve considered all consequences.

47 STEP 3 EXAMPLE Positives Growth Profit Security Negatives Lose Money Let team down Reputation of Failure Prove the concept- Missed opportunity

48 TARGETS STEP 4 Who are you after? Who will be buying your product or service? Or significantly influence the buyer? You need to know and you need to be right. Many companies just don t know who they re targeting or don t know enough about them. You cant know too much!

49 Key points: STEP 4 a. List out all your targets, be as specific as possible b. Describe what these people like and don t like, paint a clear picture c. Your end markets might not be the people you need to get to- often its key influencers who will communicate your message more effectively d. Thinking always precedes doing so understand what you want your targets to think e. And then ofcourse what you want them to do

50 STEP 4 EXAMPLE Female Bank managers aged between of Victoria Island branches with 50 or more staff in each branch. Beverages vending machine.

51 What s the BIG story? The story of the elevator pitch STEP 5 How would you start your presentation? What would you particularly emphasise? Which of your product or service features and benefits would you amplify? If you cant describe, compellingly your business to an audience of 1, how on earth can you expect a group, possibly thousands, to understand or be interested in your advertisement or other communication? Your one BIG thing.. 10 seconds or less.

52 Key points: STEP 5 a. State in as few words as possible what it is your products and services actually do b. Cut out all the peripheral stuff c. Keep focused on the meat and potato of your offer. d. Summarize in 10 seconds or less what you do in a compelling way. e. Rather than tell the whole story create a statement that leaves your audience wanting more. f. Make sure that this message comes across in all communication consistently.

53 STEP 5 EXAMPLE Redcup will put Starbucks in your office.

54 STEP 6 What is the Benefit of that? Your one big thing is actually your customers one big thing- customers create brands, companies provide the framework and continuous development. Your one big thing should be motivating to customers on both a rational and emotional level.

55 Key points: STEP 6 a. Things which benefit you might not always benefit your customer b. Check that your ten seconds sell has real benefit for your customer

56 STEP 6 EXAMPLE Juicecup saves companies a fortune by stopping employees wasting valuable time visiting cafes. Juicecup makes you more money because customers will find a reason to make extra visits.

57 Know yourself STEP 7 So far we have addressed a lot of what? What you want, what product/service you offer, what the one big thing you have is, what benefits this is to customers? Now look at your company s personality, who are you? Some are traditional, solid and safe, cool and trendy. The most important thing is that your company personality must appeal to your main target audience and consistently.

58 Key points: STEP 7 a. Every company has a personality- what's yours? b. Your personality needs to appeal to your target audience- if it doesn t then change your personality, easier than changing customers c. Make sure that your personality is consistent and comes across in all communications

59 STEP 7 EXAMPLE Airline TV cable company Food retail Cars clothing

60 STEP 8 How will you speak to your targets? Many people ignore all other steps and come right here. TV advertising- you probably still remember some of those adverts from when you were a kid coca cola, your daily need!!! Etc TV adverts are expensive CINEMAS cinema viewing is on the increase. Radio- Radio is still overlooked, but the most effective advertisers tend to use radio a lot, recognizing that they can build relationship with their targets.

61 For café quality coffee in your office visit Posters: STEP 8 Press advertising; newspapers and magazines Sponsorship- association with sports success is very powerful, soccer, tennis, car racing. Internet: the web is the single most powerful new media since television, if you don t have it in your communication strategy, you have are likely to fail. It s a TV, radio, newspaper all in one with a billion people locked in. On the pavement. Your client is on the phone but you re not there

62 Key points: STEP 8 a. There are lots of communication options available to you. b. Understand what is and is not possible from each type of communication medium. c. Choose very carefully the most relevant and cost effective.

63 How much? STEP 9 What's your budget? Compare this with the numbers written in Step 2, is it realistic? Compare this also with your choices in Step 8, is it realistic, if not then some rethinking needs to be done. What percentage of revenue should be invested in Marketing? Lord Leverhulme, the English industrialist and philanthropist who set up unilever said half the money I spend on advertising is wasted, and the trouble is I don t know which half.

64 Key points: STEP 9 a. Always have a marketing budget b. Set the budget in advance and expect to spend it c. Let you key people know budget, so they can know the limits of communication choice and strategy

65 STEP 9 EXAMPLE Redcup had just 7,500,000 to invest in marketing communications which needed to generate 130,000,000 income in 12months. This will clearly influence the communication strategy.

66 Measure it: STEP 10 How will you know that your HEMP is on track? How will you measure it? Many plans fail to do this. If you can t measure it, you can t manage it How will you measure your marketing investment? The most obvious measurement is sales, most people do measure this in fairness.

67 STEP 10 Sales measurement should be detailed with factors like : 1. Product line 2. Territory 3. Time period 4. Individual performance But is this enough? How you measure is largely determined by the type of business you have and the sector. The web provides a brilliant feedback and measurement tool One of the very few constants in life is change.

68 STEP 10 Key points: a. Measure your return on marketing by identifying up-front the things to measure b. Sometimes it s the less obvious indicators which are the most effective c. If you rely on sales figures or income alone your measurement might be too late to take action

69 STEP 10 EXAMPLE Redcup measures all enquiries via a dedicated phone line and asks everyone where they discovered REDCUP. The Redcup website has detailed reporting system and for special initiatives a dedicated separate website has been used.

70 STEP 11 The key to effective marketing plan is to keep it simple, relevant and above free from content you don t understand. Remember your marketing plan is an internal document and very important your team understands it very well.

71 Key points: STEP 11 a. All plans have a start point b. Its useful to identify the first 5 steps, particularly if the plan will take some time to implement c. You feel better about completing stages of a plan rather than waiting until its completed. Set out stages.

72 THANK YOU FOR LISTENING!!!