Marketing Breakthrough S6PEC Framework_An Introduction

MarketingStrategic Marketing PlanStrategic Marketing Plan

How to Develop and Use

for Small Business Owners and Entrepreneurs

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http://marketingplanbook.wordpress.com

@ Mike Entreprenovator

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Table of Contents

1. On SME and Entrepreneur Business

2. Benefits of Marketing Plan e-Book

3. What is Marketing

4. Misconception about Marketing

5. Elements of Marketinga. Market Segment

b. Product

c. Place/Distributionc. Place/Distribution

d. Promotion/Advertising

e. Price

f. People

g. Process

h. Environment

i. Communication

6. S6PEC In One-Pagea. The Simplified Marketing Plan

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On SME and Entrepreneur Business

1. Small scale business is on the rise.

2. Early-stage entrepreneurial business increases.

3. Significant increase of entrepreneurial business in post crisis.

4. Almost 10% of entrepreneurs engaged in self learning and observing.

5. Many entrepreneurs focus on market expansion activity.

6. Education to be better entrepreneur still lacking but growing fast.

7. Perceive perceptions of entrepreneurship doesn’t mean anything.7. Perceive perceptions of entrepreneurship doesn’t mean anything.

8. In growing economies, entrepreneurship is a desirable career choice.

9. Entrepreneurs are engine of growth and contribute to higher GDP.

10. Most entrepreneurs were pulled because of opportunity recognition.

11. About 55% discontinued business because of financial problems.

12. The 25-34 years old age group is the highest to take up entrepreneurship.

13. Innovation is very important in entrepreneurial business.

14. And a lot more….you need to do research to know more… ☺

Source: Author interpretation of GEM Report 20084

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E1

Slide 4

E1 What we can see from the above is that entrepreneurship and small business owners are on the rise. It is never too late to be one and join the bandwagon. What is crucial for most small business owners and entrepreneurs are access to knowledge. Have you heard of the “mis-informed case”? Hear how it goes..

Apparently in one of the wars during the old days, a man in Country A heard that the army troops are coming and going to invade his town. Heran home to tell everybody about it but no one seems to believe him. What he did next was he went home and killed everyone of his family members and later killed himself. The truth was, what he heard was just a rumor.

The learning from this simple story, we do not want to make decision that are not sure about. We don’t want to be mis-informed because it canbe fatal; just like what we hear from the story.

The whole idea of Marketing Plan e-Book is to facilitate this need; to educate more entrepreneurs and small business owners and provide simplified knowledge on how to grow their ideas and business. With limited funds, we need to be very careful with what we need to do. A simple e-Book like this will help you at least write down and cover enough bases to start or grow your business.Entreprenovator, 17/1/2010

Entrepreneurial Process and Definition

Source: GEM Report 2008

The entrepreneurial process starts before the firm is operational. Someone who is just starting a

venture and trying to survive in a very competitive market is an entrepreneur in spite of not having

high-growth aspirations.

On the other hand, a person may be an established business owner who has been in business for quite

a number of years and still be innovative, competitive, and growth minded. This person is also an

entrepreneur.

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Benefits of Marketing Plan e-Book

1. It is SIMPLIFIED!

2. Portable format that you can print, read in laptop and even compose your own slides for

presentation to your partners, bosses, directors etc..

3. Cover all the bases you need in a marketing plan.

4. Affordable source of knowledge! Very cheap!

5. Information provided based on real case studies, happened before, practical approach and

honest.

6. One time download, shareable slides for all your business units and staffs.

7. Extra resources on the blog http://marketingplanbook.wordpress.com7. Extra resources on the blog http://marketingplanbook.wordpress.com

8. Another resource blog http://entreprenovator.wordpress.com

9. Written not by academia or journalist but by practitioners!

10. Combined marketing knowledge from all around the world.

11. Nicely presented with diagrams, colors and highlights.

12. Save lots of $$$ for a marketing consultant or anyone so called consultant!

13. Save lots of $$$ on marketing software, licensing and applications!!

14. Step by step approach.

15. Post worldwide-crisis marketing approach which focus on what-works and profit centric!

16. You can make an income from this book by joining the affiliate program! ☺

For any further inquiry, please do not hesitate to contact us at [email protected] 2010


Future, here I come!

“Let’s make a real difference from now on. You don’t “Let’s make a real difference from now on. You don’t

have to dream anymore. What you wish is already

here. Let’s make sure you can start your business real

soon. You will save $$$ for writing your own Strategic

Marketing Plan. Let’s begin.”

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MarketingMarketing

“Nothing beats powerful communication in marketing implementation.” -

Anonymous

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What Is Marketing

It’s a process of thinking and observing, gathering

information, process information, slice and dice

with few analysis, map it to your business goals,

churn out some strategies to get attention from churn out some strategies to get attention from

your targeted customers (segments). The end

results of marketing are profits creation and

business survival.

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Think

& Observe

Gather Information

Implement

IT’S THE

PROFITS

SURVIVAL

What Is Marketing

Many struggle and sometimes fail to see that

our businesses are all about the customers .

Process Information

AnalyzeMap to

Business Goals

Create Strategies

IT’S THE

CUSTOMER,

STUPID!!

SURVIVAL

If your business does not give sizable profits for

you to survive, obviously you need to do

something about it including cutting your losses

i.e. close shop.

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E2

Slide 10

E2 People are so confused about marketing plan. There are too many versions of it (including mine!) but let me tell you what I am trying to do here. Am going to give you the most simplified, picture-based and gist of how to develop and use your marketing plan. Even during one sessionthat I had with some MBA students, they get freaked out when they hear marketing plan and another set of group who aim to be the consultant started to profess all the jargons and theories of marketing. I chewed both of them! Let’s get to work and be real I said.

Oft times business owners get the consultant to do it and only realizes that it is not implementable because the consultant is not a business owner. A real business owner, if you ever met them are super real people. They are realistic to the extent they don’t need almost anything. But that was traditional type of business owners. Today’s world demand us to work and leverage with other people or knowledge so we can become better and achieve faster results.

The above show a simple marketing processes. This process varies depending on your business specific, but generally it touches all of the above aspects. If you can see, the focus is always on the customer. If you don’t do it for the customer, you are not doing the right thing. Even an NGO has to focus to its customer.

Peter Drucker once said, “An NGO business is more difficult to manage because they don’t have bottom line or profit target!”. Lucky we are not in the business!! If you are, I think you should start setting some goals (numerical) and watch the results manifold. Entreprenovator, 17/1/2010

What Is Marketing

Marketing planning is a repetitive process. It changes because the customers change. It’s the customer, stupid! It

is supremely important to understand really well that marketing must surround the customers, not the products.

Nonetheless the ability to produce what the customer Nonetheless the ability to produce what the customer wants is also very important but that will come after we

truly understand what the customers want.

Marketing is like a rubber band that binds everything in your company. From finance, human resource, production,

administration, sales etc...

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Marketing is a Business

HUMAN RESOURCE

DELIVERY SERVICE

TECHNICAL

SUPPORT

CORPORATE

COMMUNICATION

IT SUPPORT

WEBSITE/BLOG

VENDORS

OTHERS

ALL these, needs to be

managed and fall under

marketing concerns, if not

job. It is marketing

responsibility.

SALES

CUSTOMER

SERVICE

FINANCE

DELIVERY SERVICEMANUFACTURING

PRODUCT

PACKAGING

BRANDING

MANAGEMENT

BUSINESS PROCESS

SPOKEPERSON

COMPANY POLICY

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E3

Slide 12

E3 Marketing is about every facet of your business. Failing to recognize that make your business imbalance. But of course you don’t have to focus on all thing in the name of marketing. I tried that before and I failed miserably!!! Now that I have just told you about it, you just save $50, 000!Yes, it cost me that much.

I recently attended a business brainstorming. The idea owner wanted to start something and as usual it gets wild and wilder until he suddenly owns a few big businesses. I stopped him and asked “why don’t you focus on your core thing first?”. And grow it for few years and then add onother stuffs that he dreamed about.

His answer was, “I don’t know how to write a marketing plan!”. Because of this consistencies that I always get, I came up with this Marketing Plan e-Book. I guess it’s the universe calling for me! J

Entreprenovator, 17/1/2010

New Marketing Realities

1. Network information � information age and mass production, mass consumption

2. Globalization � technological advances in transportation, shipping and communication.

3. Privatization � convert state-owned company to private to increase efficiency.

4. Industry convergence � multi industry converge and create new products / services. new products / services.

5. Deregulation � many countries deregulated to create more opportunities

6. Retail transformation � entrepreneurial retailers / businessman are on the rise (Entreprenovator!!)

7. Disintermediation � direct to customers such as online business

8. Heightened competition � rising cost, shrinking profits and powerful competitors.

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Product Launch People?

I want to HIRE PRODUCT LAUNCH PEOPLE..

I want to hire PEOPLE THAT HAVE EXPERIENCED IN

ADVERTISING..

I want people that HAVE BRAND EXPERIENCE..

I want someone that works in PUBLIC RELATION

Marketing Man needs to have business sense. If you hire

showbiz marketing man, you surely will get the show but at

loss! You end up promoting your marketing manager/director

more than the products!

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E4

Slide 14

E4 Firstly you need a Marketing man, not Advertising, PR or product people, not to mention showbiz man! Marketing needs someone who can understand, chew, work and convince the management about how to approach marketing. The marketing manager/director needs to see the business in totality; not just his own territory.

The above a real case when at one time I was applying a Marketing Manager job. They told me I don’t have product experience and I don’t come from brand agency. The good news was, I am glad I wasn’t in that part of business thought it would have increased my potential to getting the job. I am not a showbiz guy, I am a boring guy with an interesting approach to my work because I love my work. I can make business sense out of every business and understand the gist of it. I am not a subject matter expert either. By the end of that interview, one thing I am glad they picked up was, “ I think you are more marketing strategist than product launch person.” I am really glad they exactly grasped what I am trying to tell them. Obviously they should refine the job title as “Product Launcher or Product Manager”. :P Entreprenovator, 17/1/2010

Misconception of

MarketingMarketing

“If you fail to plan, you plan to fail.” - Anonymous

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Misconception of Marketing

The funny thing is, it is common to observe misconceptions of marketing. There are ubiquitous. While many actually aware that

the new customers are demanding and very different (because we wear customer hat too!), but when it comes to their own

organization, many business chiefs have no clue where to start. Many also still holding on old mantras from old eras and watch

their sales dwindled. What they normally say is, ‘Increase marketing!!”.

What they mean by increase marketing is usually increase sales people, increase advertising, increase commission, launch new

product, expand territory, cut down training, slash cost, cut salary, work longer hours, use manual processes and many more. I am sure many of you also fall into this trap. One big thing they forget, “it’s the customer stupid!”. The new age customers are

unpredictable and everywhere!! Do you agree?

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Many of us forget to come back to our customers (which the very reason

we are in business) and ask them what exactly they want from us. From

my observation, more than 50% of companies don’t track their

customer’s purchases. Because of that they can’t track the purchasing

patterns. And because of that when there is new product launch, they are

struggling to find people to buy and try. The biggest sin of all is not to ask

to our current customers why they buy from us. Let’s don’t make the

same mistake. Track your customer’s purchase please.same mistake. Track your customer’s purchase please.

Another misconception on marketing is “it’s a department that deals with

buntings, brochures, printing and press conferences.”. If you suddenly say

that this is what your marketing department does, don’t tell me you are

in the marketing department. By the way, if you are in that kind of

marketing department, you definitely just made a breakthrough by

purchasing this material. ☺ Congratulations!! If you are about to start

your business, don’t repeat the same mistake.17Copyright 2010



While this is true in the 1950’s era, today’s marketing is a business

function. There was a consulting company that claim to their clients to be

specializing in e-business, but fail to have their own website equipped

with e-business functionalities and tools. The worst is when the website

always jammed because the hosting it uses is the lousiest in town. So

what kind of credibility is that? And how to market “e-business specialist”

when you can’t even fix your own house?

Let’s take a look on how their marketing department works. The

department consists of 4 personnel. The manager deals with endless

press conferences and social events. Wherever the GM will be, there will

be some news about her. Whenever there is launch of new product, the

GM will be there and officiate and the next thing you know that news will

be distributed to few countries where the company has businesses.

Good? Yes, until you ask the actual customers who buy their product.

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The most common complaint was “late and underperform”. The

staffs are complainer lots because their bosses “over promise and

under deliver” the customers. As a result they are not motivated to

work and always criticized by the customers. When things go awry,

the GM will interfere and diplomatically swept the problems under

carpet. And this has been going on for long time and the marketing

has nothing to do with it (that’s what they said). Are you familiar has nothing to do with it (that’s what they said). Are you familiar

with this kind of approach? They need to be rejuvenated.

Another personnel in the marketing department deals with graphic

design. He will design 1001 things squeezing his creative juice but

only to find out that the bosses only like certain type of designs. So

to make his job easier, he only follow what his boss wants instead of

the customers.

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And there is another personnel is to check on daily basis any news featured

about to them. This is a good intelligence work but what they do after that

with all those paper cuts? Collectibles and get dusted. The funny part was

are not about competitive updates. There is no new product specifications

by other competition, new players in the market, new technology adopted

and R&D items. There are all PR works. And worse of they forget to cut

about their clients.

All these “phonies” you can observe mostly in a mammoth, once-succeed

company and high growth industry. In fact in some multinational

corporations (MNCs), it is so centralized that only the few top executives

make decision for the entire strategies for the companies. This also includes

marketing strategy. How can the few top executives that mostly in the high

office can know about their customers? Do they have a comprehensive

marketing information system (MIS)? Not really. Sometimes we don’t know

what we don’t know. Hey, don’t make the same mistakes.

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The rests in the company are just the order takers. It is believed

that time will come when the small business (like your’s and mine)

are the big business because of their ability to change and agility to

move forward. I think we are experiencing it already. This thought

can be observed from Jacques Barzun on what is lacking:

“I grieve to see the most advanced physical and social organization “I grieve to see the most advanced physical and social organization

of the last century go down in shabby disgrace for lack of the same

comprehensive imagination that built it up. What is lacking is the

will of the companies to survive and to satisfy the public

inventiveness and skill.” (marketing myopia- Theodore levitt)

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Summary

ProductSegment/

Market

Place/

Distribution

Promotion/

Advertising

Price People Process Environment

Communication

Summary

“Gifts are like hooks.”- Martial (A.D. 86)

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S6PEC in ONE PAGE

MKTG

Marketing Strategy-How to achieve the

business goals

-what do we need?

Marketing Objectives-How much?

Marketing Budget-Revenue projection

-P&L

BUSINESS GOALS

MKTG

PLAN-How much?

-What measure?

Marketing Elements-Segment

-Product

-Place

-Promotion

-Price

-People

-Process

-Environment

-Communication

Monitoring & Controls-Correction Plan

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S6PEC in Application

Key result for any marketing activity is ACTUAL PURCHASE. If it doesn’t we need to

change or do other activity. Nonetheless there are also other sub-measurement

such as click rates, inquiry, trial, redeem and many more. It depends on what type

of campaigns or activities that you do. Different marketing activities and strategies

will give different results.

Let say after few marketing activities, then you examined that you have low brand

awareness. You can remedy this by improving your media selection and increase a

little bit on your marketing budget. You also want to consider advertise a little bit

more. Show the presence. A small advertisement but in 10 places are a lot better

than 1 supersize advertisement in just one place.

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But then when you realized you have high brand awareness (people heard or know

of your brand), but attitude and purchase don’t follow suit. At this juncture you

need to do a little bit of positioning. In other words you are trying to send a

message to your target group of what your product can do for them.

After positioning, if you still experience weak sales then you probably want to check

your pricing or distribution. Talking about distribution, this is where multi-level-

marketing (MLM) beats many of us. They have very strong network and distributors

(agents).(agents).

Finally if you have achieved high brand awareness, positive attitude, actual

purchase happened but then low repeat purchase in the usual sales cycle, time to

check your product quality or performance.

These are some real-life examples and remedies for your marketing activities. One

key secret is to always going back to S6PEC.

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Low brand

awareness

Negative attitude

and low purchase

intention

Strong brand

awareness, but

weak sales

Strong sales but

low repeat

purchase

1 2 3 4

Improve media

selection

Increase advertising

Increase frequency

Brand positioning

Focus on benefits

Create positive

environment

Test different pricing

Test to different

niches

Increase distribution

Product quality

issue

Increase trials

Purchase points

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E55

Slide 26

E55 The above is to give some ideas what you can do in your existing business or product. Let say you have Low Brand Awareness, you have three areas to look into. Improve media selectionIncrease advertisingIncrease frequencySame goes with the rest. These are quick tips for you. You don’t have to follow exactly like the above and I encourage you to mix-match depending on what you need and suitable for you. Entreprenovator, 17/1/2010

Just in Case

In case, you don’t have much time and you get this

material from someone (but don’t cheat and promise you

will come back and review all the slides!), you can straight

away use the following slides to develop and use your

marketing plans.

But make sure you come back and enhance it, because a But make sure you come back and enhance it, because a

good marketing plan is adaptive to the changing time.

Cheers!

“It is not the strongest of the species that survives, nor the most intelligent, but the

one most responsive to change.” – Charles Darwin

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Market Summary

Market Review: Past, Present, and Future

o Review changes and updates in market share,

management, players, market shifts, new trends,

costs, pricing, advertising and distributioncosts, pricing, advertising and distribution

o Do a simple diagram of Past, Present and Future

o If it’s your new business, based in on your

observation

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Segments

Market Opportunities/Business Gap

o Discuss specific market segment opportunities

o Address distribution strategies for those markets

or segmentsor segments

o What’s the gap?

o How you can fill the gap?

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Product Definition

Describe the product or service being

marketed

o Ask question, What Why When Where Who and

How (5W 1H)How (5W 1H)

o Write them down

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Competition

The competitive landscape

o Provide an overview of product competitors, and

their strengths and weaknesses

o Position each competitor’s product against your o Position each competitor’s product against your

new product

o Also observe other complementing or substituting

products and take notes

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Positioning

Positioning of your product

– Statement that distinctly defines the product in its

market and against its competition over time

– Don’t crack your head, “how is your product

better to the customer?”better to the customer?”

Consumer promise

– What is it that you want to deliver?

– How your customer can benefit from using it?

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Communication Strategies

Message to your target groups

o One message at a time, don’t confuse your

customer

o But you can have multiple promotions at one o But you can have multiple promotions at one

time, the one message is “PROMOTION”

Target customer demographics

o Their age, income group, gender, location, why do

you think they will buy?

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Packaging

• Product packaging

– Discuss form factor, pricing, look, and strategy

– Think on the delivery process

– If you don’t have delivery service, then think how – If you don’t have delivery service, then think how

your customer is going to get access to your

product

– Product performance also is a packaging. So you

induce repeat purchase

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Launch Strategies

Launch plan

o Ask the 5W 1H questions, make sure you know

how each of your people job for the launch

o Over communicate!o Over communicate!

Promotion budget

o Spend with what you can afford. You still have a

long way to go

Post launching monitoring and plan

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Public Relations

Strategy and Implementation

o PR strategies

o Don’t bother PR if you just started doing business

because there is a huge chance that your product because there is a huge chance that your product

needs to be modified

o PR can be expensive such as sponsorship, sponsor

only that aligns with your product values and

message

o Don’t overspend!!

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Advertising

Strategy and Implementation

o Use the easiest-to-you-and-customer strategy first

o Slowly builds up

o Spend with what you can affordo Spend with what you can afford

o Your product performance is also a form of

advertising

o Create the need to repeat purchase such as

coupon, voucher, add-on, membership etc..

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Pricing

Pricing

o Use multiple pricing strategies to the same

product in the different periods

o Compare to similar products in the marketo Compare to similar products in the market

Policies

o Have pricing policies so you know where is your

minimum and maximum (and your profits too!!)

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Distribution

Distribution strategy

Channels of distribution

o Online, Shoplots, Salesman etc..

o Check your incentives too!o

Distribution by channel

o (use mix distribution)

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Performance Monitoring

First year targets (half year is applicable too!)

o How much, what’s the achievement?

Additional year targets

o Is it realistic? Then stretch it a bit. Aha!o Is it realistic? Then stretch it a bit. Aha!

What else do you need to make it more

successful?

o Resources?

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Conclusion

There is nothing to rush for, but don’t procrastinate too

much too. If you loan money from someone for your

business, you need to tighten your seat belt now and

focus on your business.

Don’t forget to smell the roses along the way. I can

assure you a wonderful journey and wish you a blissful assure you a wonderful journey and wish you a blissful

experience!!

Don’t change your goals/dreams, change the platforms.

You will thrive and the rest let the universe decides.

Future, here I come! ☺☺☺☺

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S6PEC in ONE PAGE

1. Marketing Strategy

2. Marketing Objectives

3. Marketing Elements:

1. Segmentation

a. Segment & Business Gap

b. How to Segment

c. Segmentation Strategy

d. Market Research

e. Positioning & Value

Propositions

2. Product

1. Product Levels

6. People

1. People Management

2. People’s Motivation

7. Process

1. Process Strategies

2. Process Management

8. Environment

1. Current Market Position

2. Trends1. Product Levels

2. Product Development

3. Product Design

3. Place/Distribution

1. Distribution Channels

2. Sales Plan

4. Promotion/Advertising

1. Promotional Plan

2. Advertising Approach

5. Price

1. Pricing Strategies

2. Pricing Method

3. Margins and Commissions

2. Trends

3. Government Policies

9. Communication

1. Action Plans

2. Goals Setting

4. Marketing Budget

1. Revenue Projection

2. Profit and Loss

5. Monitoring and Control

1. Correction Plan

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Get this E-book S6PEC Framework

Buy the complete e-Book only for USD 20 (digital content). You can

pay using to [email protected]

(KHAIRUL ANWAR KAMARUDIN).

Want to have more content freely? Visit our blogs Want to have more content freely? Visit our blogs

http://marketingplanbook.wordpress.com and

http://entreprenovator.wordpress.com

See you soon!!

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On Strategy

Title: Strategy B

1. What Do You Want to Achieve

2. Current Situation

3. Goals/Targets

4. Analysis4. Analysis

5. Proposed Solutions

6. Action Plan

7. Follow Up

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Thank YouSegment/ Place/ Promotion/

MY

NEXT

BOOK?

ProductSegment/

Market

Place/

Distribution

Promotion/

Advertising

Price People Process Environment

Communication

http://entreprenovator.wordpress.com

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ABOUT

ME

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