Your Market Analysis and Marketing Plan

Berkley Center for Entrepreneurial Studies

YOUR MARKET ANALYSIS AND MARKETING PLANPresented by: Cynthia FranklinSenior Associate Director, Berkley Center


What’s the Difference?

Customers Competition Competitive

Advantage Critical Success Factors Critical Risks Potential Sales/Market

Share

Product Positioning

Price Placement Promotion Sales Process Partnerships

Market AnalysisDescribes Targets (Who & Why)

Marketing PlanDescribes Tactics (How)


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.


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


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


Tips for Identifying Market Segments

Secondary Research Databases & Reports Newspapers & Magazines Trade publications and Trade shows

Ask Industry players Potential customers Suppliers

Observe


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?


Who Is My Competition?Competition = everybody who’s after the same consumer dollar you are. Direct Competitors Indirect Competitors Possible New Entrants


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


Your Competitive Landscape

Company A

Company B

Company C

Company D

Your Compa

nyModels 1 5 4 2 ?Avg. Price

$23,270 $18,430 $24,170 $19,330 ?

Warranty

Y N N Y ?

Distribution

National South Northeast

National ?


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.


Creating a Competitive Advantage Tangible Items

Intellectual property rights Exclusive license


Creating a Competitive Advantage Intangible Items

Superior Product/Brand Quality Selection Availability

Operational Excellence Innovation Leadership Intimate Customer

Relationships/Experiences Cost Advantage


Your Critical Success FactorsCSF = 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.


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.


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.


Your Go-to-Market Strategy

The Marketing Plan


Your ProductCommunic

ated

Core Product

Core Product: Primary benefit

Tangible Product: Features

Augmented Product: Enhances purchase exp.

Communicated Product: Branding


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.


Placement: Getting It to the Customer

Direct to your customer Online Own physical location

Indirect to your customer Through retailers Through wholesalers


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


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.


What Happens When CustomersRaise Their Hands?

What systems do I need in place to handle customer inquiries and process orders? Fulfillment Shipping Brochures/Sales literature Website


Partners Seek out partners for all phases of the

Go-To-Market Strategy. Collaborate with potential “competitors”.

Documents

Your Market Analysis and Marketing Plan