Cost of Marketing Prius by dyu18105

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									                        Berkley Center for Entrepreneurial Studies




YOUR MARKET ANALYSIS
AND MARKETING PLAN
Presented by: Cynthia Franklin
Senior Associate Director, Berkley Center
What’s the Difference?
Market Analysis                               Marketing Plan
Describes Targets (Who & Why)                 Describes Tactics (How)

   Customers                                    Product Positioning
   Competition                                  Price
   Competitive Advantage                        Placement
   Critical Success Factors                     Promotion
   Critical Risks                               Sales Process
   Potential Sales/Market
                                                 Partnerships
    Share

                   Berkley Center for Entrepreneurial Studies
Why Segment the Market?
   All firms have limited resources. They can’t be all
    things to all people. They must decide where to
    focus their limited time, money and human capital so
    that they yield the greatest return.
   That means identifying “right-sized” pieces of the
    market to go after.




                 Berkley Center for Entrepreneurial Studies
What Makes a Market Segment
Promising?
   Measurable: possible to determine size
   Significant: large enough to be profitable
   Recognizable: distinct enough so that you can
    identify its members
   Compatible: with your venture’s mission, strengths,
    ability




                 Berkley Center for Entrepreneurial Studies
Ways to Target the Market
   Geographic
     local,   regional, national, international
   Demographic
     B2C: gender, age, income, education, ethnicity
     B2B: revenues, # employees, industry

   Psychographic
     values,   lifestyles, hobbies
   Behavioral
     benefits   sought, usage rate
                     Berkley Center for Entrepreneurial Studies
Tips for Identifying Market Segments

   Secondary Research
     Databases  & Reports
     Newspapers & Magazines

     Trade publications and Trade shows

   Ask
     Industry players
     Potential customers

     Suppliers

   Observe
                  Berkley Center for Entrepreneurial Studies
Make Sure Your Product Is Compelling
   What problem will you solve? What need/desire does
    your product address?
   How will your product make their lives better, easier,
    happier?
   Know what your customers are currently doing:
     Going to the competition
     Using another solution
     Nothing
   Know how satisfied they are with existing options.
   How hard will it be to get them to change what they’re
    currently doing?

                   Berkley Center for Entrepreneurial Studies
Who Is My Competition?
 Competition = everybody who’s after the same
 consumer dollar you are.
  Direct Competitors

  Indirect Competitors

  Possible New Entrants




             Berkley Center for Entrepreneurial Studies
How Stiff Is the Competition?
   Analyze your competition.
   Look for marketplace gaps you can fill.
   Develop a competitive matrix.




                 Berkley Center for Entrepreneurial Studies
Your Competitive Landscape

               Honda       Honda         Toyota        Toyota        Your
                Civic     Civic LX        Prius        Corolla      Product
                                                        XLE
   Mpg             37            28             44             32     ?
   5-Yr Fuel    $6,500     $8,500         $5,500        $7,500        ?
   Cost
   Tax           $525              0         N/A                0     ?
   Rebate
   Price       $23,270 $18,430 $24,170 $19,330                        ?




                  Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage
 Having a Sustainable Competitive Advantage
 allows you to distinguish your product from the
 competition’s. It’s what gives you a significant edge.
 The basis of your SCA must not be able to be
 duplicated or imitated and is not substitutable.




              Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage
   Tangible Items
     Intellectual property rights
     Exclusive license




                     Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage
   Intangible Items
     Superior    Product/Brand
       Quality
       Selection
       Availability

     Operational  Excellence
     Innovation Leadership

     Intimate Customer Relationships/Experiences

     Cost Advantage


                       Berkley Center for Entrepreneurial Studies
Your Critical Success Factors
    CSF = What absolutely must happen in order for
    you to be successful. In other words, “If I don’t do X,
    then my venture will fail.”

   Identify five or fewer CSFs.
   CSFs will be driven by your industry, business model,
    target markets, etc.



                  Berkley Center for Entrepreneurial Studies
Critical Risks
   Investors aren’t looking for risk-free businesses;
    there is no such thing.
   What they are looking for is evidence that you
    know where potential trouble lies and that you’ve
    thought of contingency plans.
   Be forthright in your assessment of risk.




                 Berkley Center for Entrepreneurial Studies
Examples of Common Critical Risks
   Competitor response to your entry into the market.
   Sales projections below expectations.
   Unable to find suppliers.
   Inability to find a distributor.
   Inability to get shelf space.




                 Berkley Center for Entrepreneurial Studies
The Marketing Plan
Your Go-to-Market Strategy




         Berkley Center for Entrepreneurial Studies
Your Product
                                                 Core Product: Primary
      Communicated                                benefit
                                                 Tangible Product:
      Augmented
                                                  Features
       Tangible                                  Augmented Product:
                                                  Enhances purchase
         Core
                                                  exp.
        Product
                                                 Communicated
                                                  Product: Branding
                  Berkley Center for Entrepreneurial Studies
Pricing
   How much can you charge?
   Will your products be bundled?
   Will you be offering discounts, leasing, financing,
    coupons, etc.?
   Avoid competing on price—for most, it’s not a
    winning strategy. Customers who shop based on
    price tend not to be loyal.



                 Berkley Center for Entrepreneurial Studies
Placement: Getting It to the Customer

   Direct to your customer
     Online

     Own   physical location
   Indirect to your customer
     Through retailers
     Through wholesalers




                   Berkley Center for Entrepreneurial Studies
Promotion: Getting Their Attention
   Common Tools
     Advertising   (print, broadcast, online)
     Direct mail
     Email/website

     Social networking

     Trade shows/events

     Cold calling/telemarketing

     Face-to-face

     Public relations


                    Berkley Center for Entrepreneurial Studies
Choosing Your Marketing Mix
Factors to consider
 Choose media your target segments use most.

 Take into account how complex your sale is (big ticket,
  new technology, multiple decision makers).
 Use media appropriate for your product.

 Target your message so that your customer receives it

  when they’re most receptive.
 Use an assortment of tactics to send a unified message.

 Be focused.


                Berkley Center for Entrepreneurial Studies
What Happens When Customers
Raise Their Hands?
   What systems do I need in place to handle customer
    inquiries and process orders?
     Fulfillment

     Shipping

     Brochures/Sales       literature
     Website




                    Berkley Center for Entrepreneurial Studies
Partners
   Seek out partners for all phases of the Go-To-
    Market Strategy.
   Collaborate with potential “competitors”.




                 Berkley Center for Entrepreneurial Studies

								
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