Nick WebbeNick Webbe

Trevor Lever

Creating a Marketing Plan

Where are you now?

Developing an agreed understanding ofDeveloping an agreed understanding of where the business currently stands

Where are you now?y

• Write a brief summary of your currentWrite a brief summary of your current business position.

• Things you might mention include: – Sales– MarketsMarkets– Customers

Competition– Competition– Products

Internal Information

• Too much data not enough informationToo much data not enough information• Information is not always agreed on• Information is in the wrong format

• Have you defined what information you need, j t ki ith h tor are you just working with what you can

get?

External Information

• What external information do you have accessWhat external information do you have access to as well?

Where are we now?

• Consists of documenting both internal andConsists of documenting both internal and external information relative to the business

• Internal InformationHi t i l S l P&L S l F t A t– Historical Sales, P&L, Sales Forecast, Account Analysis, Turnover / Market Segment / Product…

E l I f i• External Information– Market Reports, Government Statistics, Trade

Directories, Web, Competition, Trade Forums, Companies House…

SWOT Analysisy

• SWOT =SWOT – Strengths

Weaknesses– Weaknesses– Opportunities– Threats

• For a company, product, market etc.

SWOT Analysisy

Positive NegativePositive Negative

Strengths WeaknessesInternal

Opportunities ThreatsExternal

SWOT Analysis: Companyy p y

Strengths WeaknessesStrengthsPart of large UK groupGood Image – Quality Company

WeaknessesSales in UK stagnantProducts thought of as “old f hi d”Good Resources – financial,

technicalEstablished export sales

fashioned”Few marketing staffWebsite is datedp

OpportunitiesParent company in acquisitive

ThreatsLow-priced Japanese competitionParent company in acquisitive

modeNew group R& facilityAcademic joint ventures

Low priced Japanese competitionLocal niche competitorsExchange rateL f t tAcademic joint ventures

Asia factoryLoss of patent

SWOT Analysis: Product ABCy

Strengths WeaknessesStrengthsMarket LeaderEstablished

WeaknessesLimited options and accessoriesPoor academic position

Large customer base Service Reliability

OpportunitiesMove manufacturing to Asia

ThreatsAlliance between competitorsMove manufacturing to Asia

New accessories open new marketsLow-Cost 2nd generation model

Alliance between competitorsImproved service from XYZNew product from DEF

Low-Cost 2nd generation model

SWOT Analysisy

• Strengths => Exploitg p• Weaknesses => Overcome• Opportunities => Grasp• Opportunities => Grasp• Threats => Defend

One of the most important parts of the planning p p p gprocess. SWOT Analysis asks the questions that enable you to decide if the company and its y p yproducts can fulfil your plan

Opportunities / Threatspp /

LLikelihood

High

High

Low

orta

nce

Impo

Low

Situation Analysisy

• Review Economic & Business ClimateReview Economic & Business Climate

How do we do this?• How do we do this?

PEST Analysisy

Political Economic

Social Technology

Summaryy

• Should now be able to agree and documentShould now be able to agree and document the current position of the company. This might be stated by:• This might be stated by: – Product– Market– GeographyGeography– Competition

Oth ?– Other?

Where might we go?

A collection of tools and ideas that can beA collection of tools and ideas that can be used to develop different business strategies

Destination Options?p

• Sell up after 3 years with quantified equity toSell up after 3 years with quantified equity to retireGrow business to turnover X by buying others• Grow business to turnover X by buying others

• Pass profitable business onto kidsp• Be first person in my street with a Mercedes

W k 3 d k b t i t i t• Work 3 days a week but maintain current income

What are your destination options?y p

• If you have had to think for more than 5If you have had to think for more than 5 seconds – then you’ve just made it up

What is marketing?g

• Marketing is the vehicle that gets the business g gto its destination

• However, it cannot function without a defined destinationdestination

A business going nowhere will usually get• A business going nowhere – will usually get there

• You cannot get to London on the M5

Marketing is notg

• Something that only big companies dog y g p

• Something that always costs lots of money

• Something that is always very difficult to do

S thi th t i f ll f j• Something that is full of jargon

• Something that is an optional extraSomething that is an optional extra

What is Marketing?g

• Marketing is a business philosophy It’s a• Marketing is a business philosophy. It s a way of thinking

• The company seeks to solve customers’ problems to their complete satisfaction whilstproblems to their complete satisfaction whilst creating maximum profit to the company

• It’s a long term thing

• Marketing means solving customers’ problems profitablyproblems profitably

How do you do it?y

• Define the problem(s) that the company• Define the problem(s) that the company can solve

• Define the customer group(s) who have these problemsthese problems

• Define the customer group(s) with these• Define the customer group(s) with these problems the company can serve profitably

• Define the method(s) of communicating with themwith them

Four Step Programmep g

• Define the problem(s)• What are the problems that we can solve could we solve others• What are the problems that we can solve, could we solve others

• Define the customer group(s)• How can we segment into meaningful groups

• Define the group(s) that can be served profitably• Which can we serve profitably and which will cost us money

• Define the method(s) of communicating with themDefine the method(s) of communicating with them• What is the best medium to convince customers that we

can solve their problems

Customers / Problems Matrix/

Problem 1 Problem 2 Problem 3

Group A

Group Bp

Group C

Marketing Summaryg y

• Marketing places the customer at the centre of the businesscentre of the business

• The objective of the enterprise is toThe objective of the enterprise is to satisfy customers above their expectation and make a good profitand make a good profit

• This is very difficult to achieve. If it wasThis is very difficult to achieve. If it was easy, then everybody could do it

Key Statement No.1 y

CUSTOMERS ARE THE MOST IMPORTANTMOST IMPORTANT

PEOPLE IN YOUR WORLDPEOPLE IN YOUR WORLD

Customers

And solving their problemsAnd solving their problems

Customers Cost Moneyy

• The real cost of doing business is the sum of the costs incurred in finding satisfying and keepingcosts incurred in finding, satisfying and keeping customers

• Customers are the only real assets of a company as they are the only source of revenue.

• Costs fall into four categories– Acquisition costsq– Product/Service cost– Fulfilment costs

R i– Retention costs

Customers Cost Moneyy

Fi di t A i iti C t• Finding customers - Acquisition Costs– All those marketing and communication costs targeted at

potential customerspotential customers

• Making it - Product / Service Costs– The prime manufacturing or service delivery costs -The prime manufacturing or service delivery costs

materials, labour and overhead

• Delivering it - Fulfilment CostsDelivering it Fulfilment Costs– All costs incurred in creating the product and delivering it

from the point of creation to the point of consumption

• Keeping customers - Retention Costs– All those marketing and customer care costs targeted at

existing customersexisting customers

Finding and Keeping Customersg p g

• Finding Customers - Acquisition Costs– You must be able to able to communicate with potential

customers to convert them into actual customerscustomers to convert them into actual customers– What to say– How to say it– What medium to use

• Keeping Customers – Retention Costs– Customers need to believe that they should continue to

buy from you and not try elsewhere– What to sayWhat to say– How to say it– What medium to use

Customer Segmentationg

• What ways are there to classify the types of y y ypcustomer you currently sell to?

• How do you do this at the moment?

• Here are some options to classify customers…e e a e so e opt o s to c ass y custo e s

Basic Customer Typesyp

Loyaltyy yHigh Low

High Box 2Box 1

True friends ButterfliesButterflies

Profitability

Box 4Box 3

Barnacles Strangers

Low

Add 5 of your customers to each boxy

Loyaltyy yHigh Low

High Box 2Box 1

Profitability

Box 4Box 3

Low

True Friends

True FriendsTrue Friends– Good fit between customer’s needs and

company’s offeringcompany s offering– Highest profit potential

• What actions should we take?– Build loyalty in thought and action– Communicate consistently but not too often– Communicate consistently but not too often– Delight them by delivering superior value– Beware of discounting = Barnacles

Butterflies

ButterfliesButterflies– Good fit between customer’s needs and company’s

offeringoffering– High profit potential

• What actions should we take? – Identify those that can be turned into True Friends– Profit from the remainder– Profit from the remainder– Monitor profitability routinely

Barnacles

BarnaclesBarnacles– Limited fit between customer’s needs and the

’ dcompany’s needs– Low profit potential

• What actions should we take?What actions should we take?– Learn to say “No”

Consider other products– Consider other products– Identify those than can be converted into True

dFriends

Strangersg

StrangersStrangers– Little fit between customer’s needs and the

’ ff icompany’s offering– Lowest profit potential

• What actions should we take?What actions should we take? – Make no investment in these relationships

M k fit h t ti– Make a profit on each transaction

Options for Business Growthp

Products/Servicesoducts/Se v cesExisting New

Existing Box 2Box 1

MarketPenetration

Product Development

Markets/Customers

Development

Markets/CustomersBox 4Box 3

DiversificationMarket DiversificationMarket Development

New

Business Growth• Market Penetration

– This is a safe place to be but will not produce a significant revenue increase unless each customer buys more

• Product Development– A good understanding of customer's needs reduces the risks involved

in selling new products (cross selling up-selling)in selling new products (cross selling, up selling)

• Market Developmentop– Go out and find new customers, either non users or competitive users

• Diversification– Be very bold - develop new products and sell to new

customers Dangerouscustomers. Dangerous

What are your options for growth?y p g

Products/Servicesoducts/Se v cesExisting New

Existing Box 2Box 1

Markets/CustomersMarkets/CustomersBox 4Box 3

New

How are we going to get there?

Brands

What is a brand?

What does it do?

What can be a brand?

How Brands Begang

• Branding cattle with a hot iron goes back to 2,000 BC and still continues today where cattle are allowed to roamy

• This way of identifying ownership was adapted to differentiate one grocery product (tea coffee flour salt etc) from anotherone grocery product (tea, coffee, flour, salt, etc) from another. Prior to that these products were undifferentiated commodities

• The branded product became the way to guarantee the quality and consistency of the product. This offered better value to

f h h h dcustomers for which they were prepared to pay more money

What do Brands do?

• They give the customer reassurance of the quality and i t f th d tconsistency of the product

Th i thi t t th t it d ’t j t• They give something extra to the customer – it doesn’t just play music – it’s an iPod. It’s not just a training shoe it’s a lifestyle – Nikelifestyle Nike

• Because they deliver more to the customer they command a• Because they deliver more to the customer, they command a higher price

The Evolution of the Brand

• When a business starts out the business owner is the brando

• As the business grows and begins to• As the business grows and begins to establish a reputation the businessb th b dbecomes the brand

• As the business matures its product(s)become the brandbecome the brand

Why create Brands?y

• The major payoffs are:The major payoffs are:– Creates consumer preference or even loyalty– Provides greater strength to withstand competitive

pressure– Creates a stronger bargaining position in the

supply chainpp y– Produces an improvement in profit

Your Competitive Advantage

How to develop and maintain itHow to develop and maintain it

How do you compete in your market?y p y

• How many competitors do you have?

• How are you different from them?y

• How do you compete against them?o do you o p aga

• How do they compete against you?How do they compete against you?

What is Sustainable Competitive Advantage?a s us a a e Co pe e d a age

• SCA is a distinctive way of competing. It is not just doing the same things more efficiently

It i not gene ted b ingle ti it th t• It is not generated by a single activity – that competitors can easily copy

• It is achieved by creating advantages in one area which allows you to create advantages in other areawhich allows you to create advantages in other area

Competitive Advantagep g

Do you have a competitive advantage?Do you have a competitive advantage?

What are you doing to create one?What are you doing to create one?

Price Setting

What is the value (£) to the customerWhat is the value (£) to the customer in having their problem solved

What is the price?p

For a glass of water?• For a glass of water?

• For a airline ticket to New York?

• For a printer cartridge?

• For AA breakdown cover?

• For a mobile phone?

Pricing Plang

• Product pricing is one of the most fundamental decisions made by a company.

• Price represents the amount of value that a customer has to give up in order to acquire your product. g p q y p

Pricing Plang

• Almost every aspect of the marketing of a product will impact upon the pricing decisionwill impact upon the pricing decision.

What are the key considerations in setting your price?What are the key considerations in setting your price?

– What is the prime cost of the product– What is the prime cost of the product– What is the product’s perceived competitive advantage– What are the prices of competitive productsWhat are the prices of competitive products– Is the product or service a strong brand

The Pricing Plang

Objectives

CostsCompany’s

marketprofile

Legalconstraints

p

CompetitorsTHE

PRICINGPLAN

Customer’sattitudes

Potentialcompetitors

Differentials

Marketing Communications

What to sayWhat to sayHow to say it

Who to say it toWho to say it toWhere to say it

Marketing Communicationsg

Marketing Communications

Marketing Strategy

Marketing Planning

(Everything we talked about before lunch)

Marketing Communicationsg

Marketing Communications

Marketing Strategy

Marketing Planning

(Everything we talked about before lunch)

There are three different audiences

• First time buyers/non usersFirst time buyers/non users

• Existing buyersExisting buyers

• Competitive buyersCompetitive buyers

What to say and to whom?y

First Time Buyers

- Could this problem be yours?

- Are you concerned by this?

W d t d it ti- We understand your situation

- Here is a possible solutionHere is a possible solution

What to say and to whom?y

- Existing Customers

- Thanks for buying us

Lots of others are like you- Lots of others are like you

- We appreciate your customWe appreciate your custom

- Relax, you’ve made the right decision

- There is no need to look elsewhere

What to say and to whom?y

- Competitive Buyers

- You know you have this problem

- You value an answer to this

Y h i f l ti- You have experience of a solution

- Here is a superior alternativeHere is a superior alternative

How to say ity

When communicating with customers it is not• When communicating with customers it is not sufficient to say we exist and we have things t llto sell you

• It is the first step to building a relationship• It is the first step to building a relationship with the customer which is designed to be long term and mutually beneficiallong term and mutually beneficial

• The communication will be more powerful if itThe communication will be more powerful if it contains and idea which transcends the simple benefits of the productbenefits of the product

Where to say it?y•Advertising

– Powerful, expensive, takes time to work

•Direct marketing•Direct marketing– Powerful, good value, immediate

•Sales Promotion– In store/on pack, good value, immediate

•Internet – Need to promote website, very competitiveNeed to promote website, very competitive

•Events– Expensive but targeted audience

Where to say it?y

•Public Affairs (PR)( )– Slow, opinion forming, not under your control

•Selling•Selling– Requires intense knowledge of product and customers

•Email Marketing– Cheap, low level background, controlled

•Corporate Identity– Low Cost, essential starting-point. Dangerous to do in-houseo Cost, esse t a sta t g po t a ge ous to do ouse

•NetworkingL t t k ti t k N t t ll d– Low cost, takes time to work. Not controlled

Assessing Marketing Communicationsg g

ANALYSEMEASURE ANALYSEMEASURE

MODIFYACTIVITY MODIFYACTIVITY

Marketing Communications g

• Message – what is it you want to say?• Market – who is it you want to say it to?• Motive – why are you sending this message out?• Map – where is the message going to?• Moment – when is the right time to do it?g• Media – how will you communicate the message?• Motivation – what will encourage a response?g p• Measurement – how will you define and measure success?• Management – how will you manage / review the program?g y g / p g

• Money – what are the total costs?

Decision Support Structurepp

WISDOM

KNOWLEDGE

INTERPRETATION

INFORMATION

DATA

INTERNAL / EXTERNAL SYSTEMS

Marketing Consistency

Everything that can be given, shown, heardEverything that can be given, shown, heard or seen by anybody who might want to buy

your product must be consistentyour product must be consistent

Key Statement No.2 y

WHATEVER MARKETING MATERIAL YOU CREATEMATERIAL YOU CREATE

BE CONSISTENT– BE CONSISTENT

Marketing Materialg

• There must be a consistent and appropriate look pp pand feel to all your business material:

Business CardsLetterheadBrochuresProduct InformationPresentationsPresentationsCase StudiesEmailsNewslettersWeb SitePackaging

Repetition and Consistencyp y

Marketing Collateralg

Make it very easy for a potential customer to:

– Understand what you do Understand what problems you solve– Understand what problems you solve

– Understand you are relevant to them– Make contact with you– Obtain relevant information from youy– Ultimately, to say “yes” to you

Advertisement or Announcement?

An d ti t creates a relationship• An advertisement creates a relationship between the brand and viewer/reader

– It creates an understanding between the seller and the potential buyerand the potential buyer

– It persuades the potential buyer that the sellerIt persuades the potential buyer that the seller is best able to solve his/her problem

• An announcement says we have stuff to sell please will you buy it?p y y

Key Statement No. 3y

TELL THE EXPERTS WHAT YOU WANTWHAT YOU WANT

TO ACHIEVETO ACHIEVE – NOT HOW TO DO IT– NOT HOW TO DO IT

How to brief the expertsp

• Do not tell them what to do

• Tell them what you want to achieve

• Tell them the type of company you are

• Tell them about the target customers• Tell them about the target customers

• Tell them about the problems you solve

Write all this down – use it to judge their work

Creating your Marketing Plan

Putting it all togetherPutting it all together

Stages in creating a Marketing Plang g g

• Defines where are we now• Defines where are we going• Defines where are we going• Defines how will we get thereg• Defines how will we know we have arrived

Marketing Plan - Structureg

• IntroductionIntroduction– Overview of current situation

E ti S• Executive Summary– 1 page A4 summary of the entire plan

• Situation AnalysisWhere are we now– Where are we now• Assumptions

S l Hi t• Sales History• Key Markets

K P d t• Key Products

Marketing Plan - Structureg

• Marketing ObjectivesMarketing Objectives• Marketing Strategies• Sales Tactics• What are we doing & whenWhat are we doing & when• Sales / Promotions• Costs / Projected Profits / Cash-Flow• Controls and Measures• Controls and Measures• Resources

Marketing Planning (What & When)g g ( )2006 Marketing Communications Plan

Messages:

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalAdvertsing

yellow pageslocal presslocal presstrade press

total advertisingLiterature

company brochureproduct overview

case studiesDirect Mail

summer promotionnewsletter

Internetemail newsletteremail newsletter

ad-wordsweb site updates

Eventsseminars

open-housePR

case studiesnew premises

new staffPromotional Gifts

seminar giftseminar giftmouse mats

The Marketing Plang

• Management Summary: Provides an g yoverview of your marketing plan and what you feel the marketing function should deliverg

• Situation Analysis: What business you are• Situation Analysis: What business you are in and the key issues and objectives

• Targets: Sales target for the year ahead + th b f t t / li t ill dthe number of contracts / clients you will need in order to hit your sales target

The Marketing Plang

• Market Overview: Your target market in terms of geography, client types, needs and trends, market growth

• Market Research: How many potential new clients are there? Profiles of different types of client. Analysis of their specific needs

• Competitive Analysis: Approximate number of competito s B ief p ofiles of ke competito scompetitors. Brief profiles of key competitors, including: SWOT analysis; key products / services; how they differentiate themselveshow they differentiate themselves

The Marketing Plang• Segmentation Strategy: Smart businesses focus

i h k t Thi k h d b t thi iton niche market areas. Think hard about this – it may be the single most important thing you do

• Positioning Strategy: How do you want clients to perceive you in your marketplace? For example -p y y p pLowest price? Best service? Highest quality? This is all part of the differentiation process...

• Differentiation: Your decisions on segmentation and positioning, combined with your competitiveand positioning, combined with your competitive analysis, will help you to decide on how you are going to make your business 'stand out from the crowd'crowd'

What do you do with the plan?y p

• Written DownWritten Down• Agreed• Circulated• Acted UponActed Upon• Reference for future decision making

Thank YouEmaiil: trevor@trevorleverconsulting.comWebsite: www trevorleverconsulting comWebsite: www.trevorleverconsulting.com

Blog: www.theorderpreventiondepartment.blogspot.comBlog: www trevorlever co ukBlog: www.trevorlever.co.uk

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