Entrepreneurship Training

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					Module: 5                                                Revised: 23/12/2010




                       CIPSED Project
             State University of Gorontalo [UNG]
            Entrepreneurship ToT Program

 Developing Winning Marketing
          Strategies

   Canada-Indonesia Private Sector Enterprise Development [CIPSED] Project
    Contents
    1.     INTRODUCTION
           ◦ Purpose & Objectives
           ◦ Marketing Effectiveness
           ◦ Positioning, Identity, Branding
    2.     MARKETING MIX
           ◦   Product
           ◦   Price
           ◦   Place
           ◦   Promotion
    3.     MARKETING STRATEGY IMPLEMENTATION
           ◦ Consistency, Integration, Synergy
           ◦ Setting Targets & Tracking Progress


CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         2
    1. Introduction




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         3
    The Purpose of this Module
    •   EFFECTIVE MARKETING IS A KEY FACTOR FOR
        THE SUCCESS OF ANY BUSINESS
    •   THIS MODULE WILL HELP TO CREATE AN
        UNDERSTANDING OF:
        ◦ the role of marketing;
        ◦ the key elements of the marketing mix, showing how how
          they work together to form a marketing strategy;
        ◦ Important considerations for each element in the
          marketing mix; and,
        ◦ ways to evaluate the effectiveness of marketing efforts.




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                         4
    Objectives of Marketing
    •   MOVE CUSTOMERS                               TARGET MARKET
        THROUGH THE
        MARKETING FUNNEL:
                                                      AWARENESS
     • Generate awareness within
       the target market segments                       INTEREST
     • Stimulate interest                            CONSIDERATION
     • Facilitate favourable
       consideration                                   PURCHASE
     • Enable the purchase
     • Cultivate customer loyalty
                                                     CUSTOMERS!

                                                         LOYALTY

CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                         5
    Marketing Effectiveness
    •   DEPENDS ON MUCH MORE THAN ‘ADVERTISING’
    •   ULTIMATELY, EFFECTIVE MARKETING ENSURES
        BUSINESSES:
        ◦ provide a product or service that the target market
          actually wants;
        ◦ will make the products/services available where
          customers want to buy them;
        ◦ when they want to buy them; and,
        ◦ at a price they are willing and able to pay for them.
        •   IMPORTANTLY, MARKETING INFORMS THE
            TARGET MARKET[S] OF AVAILABILITY AND
            FEATURES IN A WAY THAT GENERATES ENOUGH
            SALES TO BE PROFITABLE.
                                         …Marketing is all about building relationships.

CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                               6
    Positioning & Identity
         •   FUNDAMENTAL TO DEVELOPING STRATEGIES
             AND MAKING MARKETING MIX CHOICES
         •   POSITIONING:
             ◦ Where products are placed in the marketplace:
                • quality, price, availability, convenience, innovation
         •   IDENTITY:
             ◦ How the business wants to be perceived
                •   Low price
                •   High quality
                •   Personalized service
                •   Wide selection
             ◦ Must be able to back up marketing claims



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                              7
    Your BRAND
    •   EVERYTHING A BUSINESS DOES WITH MARKETING
        CREATES A BRAND FOR THE BUSINESS
    •   SUCCESSFUL BUSINESSES ARE BUILT ON STRONG
        BRANDS
        ◦ Even small businesses can benefit from brand recognition
    •   PROMOTE YOUR BRAND FOR LONG-TERM
        SUCCESS
    •   PROTECT YOUR BRAND AS YOU BUILD IT!




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                         8
    Exercise: Positioning & Identity
    •   BASED ON THE PHOTO, COME UP WITH SOME
        IDEAS ON POSITIONING & IDENTITY FOR THIS
        BUSINESS
        •   What do you think about
            the POSITION of this
            business, relative to
            competition?
        •   What IDENTITY do you
            think they could create in
            the minds of customers or
            potential customers?




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         9
    2. Marketing Mix




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         10
    Elements of a Marketing Strategy

                   PRODUCT                                              PRICE
            (What you are selling)                                    (How much)
                      - quality                                       - objectives
                     - features                                         - method
                     - benefits                                          - tactics
                    - attributes
                       - range
                                                     MARKETING
                                                       MIX
              DISTRIBUTION                                         PROMOTION
              (Getting to market)                                (Informing the market)
                     - location                                    - personal selling
                      - service                                       - advertising
                     - channels                                   - sales promotions
                     - intensity                                   - public relations


CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                              11
    Choosing the Marketing Mix
    •   AN APPROPRIATE MARKETING MIX DEPENDS ON:
        ◦ Characteristics and buying behaviour of target market[s].
        ◦ Features, benefits, attributes of your product[s].
        ◦ Your desired position in the marketplace.
        ◦ The strengths and weaknesses of your competitors.
        ◦ Resources available – human, financial & physical.
        ◦ YOUR GOALS FOR THE BUSINESS!




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                          12
    Marketing Strategy: PRODUCT
    •   What range of products/services will attract
        customers in the target market area?
    •   What specific benefits of the product[s] are
        valuable to the target customers?
    •   What level of quality does the customer expect
        [and is willing to pay for]?
    •   What complimentary products can you sell
        alongside your core products to enhance
        profitability?




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                             13
    Product Characteristics
    •   SIZE
    •   PACKAGING
    •   NAME
    •   MATERIALS / INGREDIENTS
    •   TECHNOLOGY
    •   PRODUCT RANGE / VARIETY
    •   FUNCTION / USE
    •   STYLE / AESTHETICS
    •   TRENDS
    •   ENVIRONMENTAL
                               Match your product to your target market[s].
CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                  14
    Exercise: Product Characteristics
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ Describe important attributes of the product being offered
          – recall your Kevin Lancaster Exercise in Module 3
        ◦ Indicate how these features meet the demands of the
          target market cohorts




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                           15
       Marketing Strategy: PRICE
       •   PRICE CAN CONVEY A RANGE OF MESSAGES:
           ◦ Affordability
           ◦ Quality
           ◦ Relative value compared to competitors
       •   IMAGE OF THE PRODUCT IS CONVEYED BY PRICE
           MORE THAN ANY OTHER MARKETING MIX
           COMPONENT
           ◦ Apply it carefully
                                                          Rp
                                                            .2
                                                              90
                                                                 ,00
                                                                    0
…Remember the pricing strategies exercises in Module 3:
            Market Analysis Techniques

   CIPSED Project State University of Gorontalo [UNG]
   Entrepreneurship ToT Program                                         16
    Pricing Objectives
    •   CONSIDER HOW PRICE WILL RELATE TO YOUR
        BUSINESS OBJECTIVES:
        ◦ Sales volume
        ◦ Revenue goals
        ◦   Profitability
        ◦   Competitiveness
        ◦   Image
        ◦   Marketplace positioning
    •   DESIRED PRICE CHARACTERISTICS:
        ◦ Straightforward
        ◦ Easy to understand
        ◦ Related to VALUE


CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         17
    Approaches to Price Setting
    •   PRICE SETTING SHOULD BE CONSIDERED IN THE
        CONTEXT OF YOUR OVERALL STRATEGY
    •   BASIC METHODS:
        ◦ Cost Plus
        ◦ Competitor matching
        ◦ Negotiation
    •   STRATEGIC PRICING POLICIES:
        ◦ One price/fixed
        ◦   Flexible pricing
        ◦   Skimming price
        ◦   Penetration/introductory price
        ◦   Discounts: volume, cumulative quantity, seasonal

CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                   18
    Exercise: Price Setting
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ Identify pricing objectives
        ◦ Explain the price-setting approaches that will be used

                                  Remember the role that PRICE plays in market positioning.




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                  19
    Marketing Strategy: DISTRIBUTION
    •   ‘DISTRIBUTION’ REFERS TO GETTING GOODS AND
        SERVICES TO THE CUSTOMER. PARAMETERS:
        ◦ Location of operations
        ◦ Location of sales transactions
        ◦ Movement of goods to market
    •   LOCATION CAN BE CRITICAL – PROVIDE EASY
        ACCESS TO CUSTOMERS
    •   WHAT DISTRIBUTION OPTIONS ARE OPEN FOR
        THE TYPE OF BUSINESS?


                    …an old marketing adage has Location, Location, Location as the
                           top three priorities for the success of a business.

CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                      20
    Location Considerations
    •   CLOSE TO MARKET VERSUS CLOSE TO SUPPLIERS
    •   COST VERSUS CONVENIENCE
    •   URBAN VERSUS RURAL
    •   VISIBILITY
    •   ACCESSIBILITY
    •   SIZE
    •   FACILITIES
    •   INDUSTRY CLUSTER




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         21
    Distribution Channels
    •   SELECT THE DISTRIBUTION CHANNEL THAT
        WORKS FOR YOU & FOR YOUR CUSTOMERS
    •   COSTS & BENEFITS OF EACH CHANNEL

                                                        Producer

                        1.            2.                3.          4.
                                                      Wholesaler   Agent/Broker

                                                     Retailer



                                                        Customer



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                      22
    Exercise: Distribution
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ Identify the locations for facility and for sales
        ◦ Determine how the customer will access the product




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                   23
    Marketing Strategy: PROMOTION
    •      COMMUNICATING WITH THE MARKETPLACE –
           WITH YOUR TARGET MARKET COHORTS!
    •      OBJECTIVES:
           1. Provide information and awareness
           2. Differentiate your products
           3. Accentuate the value
           4. Stabilize sales




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         24
    Promotional Activities
     Limited only by creativity
                                                                                   Public Relations
                                                                           Press Releases
               Personal Selling                                                Public Speaking
          Sales calls                                                                 Sponsorship
                        Walk-in
                                                 Advertising      Sales Promotions

                                      Business Cards                Free Samples

                                Newspaper               Website      Price Reductions
                                                      Brochures
                                       Signs                         Coupons
                                                     Radio
                                                                       Volume Discount



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                          25
    Low-Cost Promotional Tactics
    1.        ENCOURAGE WORD OF MOUTH
    2.        NETWORKING
    3.        BUSINESS CARDS
    4.        TESTIMONIALS
    5.        PROVIDE REFERRAL INCENTIVES
    6.        FOCUS ON THE BENEFIT
    7.        PASSION AND PERSISTENCE




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         26
    Exercise: Promotion Brainstorming
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ Brainstorm as many promotional ideas as you can think of




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                         27
    Selecting Media
                IT ALL DEPENDS ON WHERE & WHO THE TARGET MARKETS ARE …


    Business cards                          Cheap, personal, limited information
    Brochures                               Detailed information, photos, limited reach
    Signage                                 Flexible, good exposure, permanence, builds
                                            identity, minimal information + limited reach
    Newspaper                               Immediacy, frequency, wide reach, short lifespan
    Radio                                   Intimacy, audience selection, temporary,
                                            expensive
    Email                                   Cheap, wide reach, targeted, measurable
    Website                                 Cheap, flexible, measurable, may have limited
                                            reach



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                   28
    Online Marketing Opportunities




                                                           Paid listing
                                                     Automatic listing




    •   MEET THE SEARCHER’S
        INTENT
CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                              29
    Advertising Materials
    1.     FIND THE DRAMA IN THE OFFERING
    2.     TRANSLATE THE DRAMA INTO A MEANINGFUL
           BENEFIT
    3.     STATE BENEFITS IN A BELIEVABLE WAY
    4.     GET PEOPLE’S ATTENTION
    5.     MOTIVATE THE AUDIENCE
    6.     COMMUNICATE CLEARLY
    7.     ENSURE THE MESSAGE IS RIGHT FOR THE
           TARGET AUDIENCE.




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         30
    Exercise: Promotional Materials
    FOR THE SEAWEED EXTRACT BUSINESS:
    • SELECT ONE TYPE OF PROMOTIONAL ACTIVITY
      APPROPRIATE TO THE BUSINESS AND DEVELOP
      THE MATERIALS FOR THE PROMOTIONAL
      ACTIVITY.



               For example: a customer testimonial




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         31
    3. Marketing Strategy Implementation




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         32
    Marketing Strategy Implementation




                                              Synergy

                                         Integration

                                        Consistency



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                            33
    Exercise: Marketing Strategy
      For the Scuba Diving Business, fill in the Marketing Strategy:

                   PRODUCT                                         PRICE




                                                     MARKETING
                                                       MIX
              DISTRIBUTION                                       PROMOTION




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                 34
    Marketing Calendar & Budget
       •   HAVE A PRIORITIZED MARKETING PLAN
              •   Timing of activities
              •   Cost of activities


            Period                    Focus              Media   Frequency   Cost (Rp)
     Week 1                    Grand opening Sign                   1        XX,XXX,XXX
     Week 1,2                  Grand opening Newspaper              4         X,XXX,XXX
     Week 2                    New products          Brochure      200        X,XXX,XXX




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                              35
    Aspects of Implementation
                                                                              Planning the Path
    1.     COMPANY IDENTITY
    2.     BRAND IDENTIFICATION
    3.     SALES TECHNIQUES
    4.     CUSTOMER SERVICE
    5.     ADVERTISING TECHNIQUES
    6.     PUBLIC RELATIONS
    7.     TIMING AND PATIENCE


                                        The Implementation needs to be planned from A to Z




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                      36
    Setting Marketing Targets
    •   TARGETS DRIVE THE MARKETING STRATEGY
        ◦ With a marketing strategy in place, targets can be set to
          maintain priorities
        ◦ Targets are useful for making effective decisions about
          allocating marketing resources.
        ◦ Targets may be broken down by product, region, target
          market, etc.
    •   TARGETS MAY RELATE TO:
        ◦   Revenue in rupiah
        ◦   Number of unit sales
        ◦   Number of customers
        ◦   Number of locations
                    …a note of caution: in a situation like this, marketing and sales could be used
        ◦   Etc.    interchangeably, and they often are ---but be careful they are not the same thing!!
                             Marketing encompasses selling, but the reverse is not true.

CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                              37
    Exercise: Marketing Targets
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ Set sales targets for the first year; and,
        ◦ Monthly.




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                           38
    Tracking, Evaluation & Review
    1.     IDENTIFY KEY INDICATORS FOR THE BUSINESS
    2.     DETERMINE ‘BASELINE’ MEASURES
    3.     MEASURE RESULTS
    4.     COMPARE RESULTS WITH OBJECTIVES
    5.     LOOK AT THE SPECIFICS
    6.     MAKE CHANGES WHERE NECESSARY
           l But not too quickly! Be careful not to react to blips in the
                  marketplace; but, keep on top of trends.




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                39
    Exercise: Tracking
    •   FOR THE SEAWEED EXTRACT BUSINESS:
        ◦ In addition to sales, identify the key indicators that you
          will want to track to measure marketing success.


          Volume produced?



                                                                                  Spin-off Opportunities



   Quality standards met?

                                                 Customer Satisfaction?

                                                                          Complementary products?



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                               40
    Survey Monkey: Free Online Survey Tool




CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                         41
                    Objective
                    Reflective
                    Interpretive
                    Decisional
                                                     ORID: use it to gain an advantage over the competition!



CIPSED Project State University of Gorontalo [UNG]
Entrepreneurship ToT Program                                                                               42

				
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