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Slide 1 - Your Market Analysis and Marketing Plan Presented by: Cynthia Franklin Senior Associate Director, Berkley Center Berkley Center for Entrepreneurial Studies
Slide 2 - 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 Berkley Center for Entrepreneurial Studies Market AnalysisDescribes Targets (Who & Why) Marketing PlanDescribes Tactics (How)
Slide 3 - Why Segment the Market? Berkley Center for Entrepreneurial Studies 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.
Slide 4 - What Makes a Market Segment Promising? Berkley Center for Entrepreneurial Studies 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
Slide 5 - Ways to Target the Market Berkley Center for Entrepreneurial Studies 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
Slide 6 - Tips for Identifying Market Segments Berkley Center for Entrepreneurial Studies Secondary Research Databases & Reports Newspapers & Magazines Trade publications and Trade shows Ask Industry players Potential customers Suppliers Observe
Slide 7 - Make Sure Your Product Is Compelling Berkley Center for Entrepreneurial Studies 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?
Slide 8 - Who Is My Competition? Berkley Center for Entrepreneurial Studies Competition = everybody who’s after the same consumer dollar you are. Direct Competitors Indirect Competitors Possible New Entrants
Slide 9 - How Stiff Is the Competition? Berkley Center for Entrepreneurial Studies Analyze your competition. Look for marketplace gaps you can fill. Develop a competitive matrix.
Slide 10 - Your Competitive Landscape Berkley Center for Entrepreneurial Studies
Slide 11 - Creating a Competitive Advantage Berkley Center for Entrepreneurial Studies 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.
Slide 12 - Creating a Competitive Advantage Berkley Center for Entrepreneurial Studies Tangible Items Intellectual property rights Exclusive license
Slide 13 - Creating a Competitive Advantage Berkley Center for Entrepreneurial Studies Intangible Items Superior Product/Brand Quality Selection Availability Operational Excellence Innovation Leadership Intimate Customer Relationships/Experiences Cost Advantage
Slide 14 - Your Critical Success Factors Berkley Center for Entrepreneurial Studies 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.
Slide 15 - Critical Risks Berkley Center for Entrepreneurial Studies 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.
Slide 16 - Examples of Common Critical Risks Berkley Center for Entrepreneurial Studies 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.
Slide 17 - Your Go-to-Market Strategy The Marketing Plan Berkley Center for Entrepreneurial Studies
Slide 18 - Your Product Core Product: Primary benefit Tangible Product: Features Augmented Product: Enhances purchase exp. Communicated Product: Branding Berkley Center for Entrepreneurial Studies
Slide 19 - Pricing Berkley Center for Entrepreneurial Studies 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.
Slide 20 - Placement: Getting It to the Customer Berkley Center for Entrepreneurial Studies Direct to your customer Online Own physical location Indirect to your customer Through retailers Through wholesalers
Slide 21 - Promotion: Getting Their Attention Berkley Center for Entrepreneurial Studies Common Tools Advertising (print, broadcast, online) Direct mail Email/website Social networking Trade shows/events Cold calling/telemarketing Face-to-face Public relations
Slide 22 - Choosing Your Marketing Mix Berkley Center for Entrepreneurial Studies 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.
Slide 23 - What Happens When CustomersRaise Their Hands? Berkley Center for Entrepreneurial Studies What systems do I need in place to handle customer inquiries and process orders? Fulfillment Shipping Brochures/Sales literature Website
Slide 24 - Partners Berkley Center for Entrepreneurial Studies Seek out partners for all phases of the Go-To-Market Strategy. Collaborate with potential “competitors”.
 

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