Course Outline Market Analysis Competitive Advantage
Competitive Matrix Market Strategies Marketing Mix Pricing
Promotional Mix Marketing Your Business Idea2
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Market Analysis: Competitive Advantage Competitive advantage is
a companys ability to perform in one or more ways that competitors
cannot or will not match. P. Kotler, Marketing Management, 2008 Who
are your major competitors? Marketing Your Business Idea3
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Market Analysis: Competitive Advantage StrengthsWeaknesses
OpportunitiesThreats External Factors S W O T Analysis Internal
Factors 4Marketing Your Business Idea
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Market Analysis: Competitive Advantage Strengths Technological
skills Leading Brands Customer Loyalty/relationship Product quality
Scale Management Weaknesses Absence of Important skills Weak brands
Poor access to distribution Low customer retention Unreliable
product/service Management 5Marketing Your Business Idea S W O T
Analysis
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Opportunities Changing customer tastes Liberalization of
geographical markets Technological advances Changes in government
politics Lower personal taxes Change in population age structure
New distribution channels Threats Changing customer tastes Closing
of geographical markets Technological advances Changes in
government politics Tax increases Change in population age
structure New distribution channels 6Marketing Your Business Idea
Market Analysis: Competitive Advantage S W O T Analysis
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Market Analysis: Competitive Matrix 7Marketing Your Business
Idea
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Marketing Strategies Marketing Your Business Idea8
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Marketing Strategies Marketing strategies are the decisions
marketers (owners) make to ensure that products/services satisfy
the needs of their target market products/services are sold at the
price a customer is ready to pay and at the same time that will
promote business growth the distribution channels are convenient to
the customer the company communicates with the customers
effectively 9Marketing Your Business Idea
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Marketing Strategies Marketing Mix 4Ps Product Price Place
Promotion 4Cs Customer solution Customer cost Convenience
Communication 10Marketing Your Business Idea
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Marketing Strategies Marketing Mix Customer Solution
Communication Customer Cost Convenience Product variety Quality
Design Features Brand name Packaging Sizes Services Warranties
Returns List price Discounts Allowance Payment period Credit terms
Sales promotion Advertising Sales force Public relations Direct
marketing Channels Coverage Assortment Locations Inventory
Transportation 11Marketing Your Business Idea
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Pricing
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What is your strategy? First determine your market position
Match your positioning with pricing strategy Example: Market
Position: Offering high quality products and services Pricing
Strategy: Premium Pricing 13Marketing Your Business Idea
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Pricing Economy Penetration Skimming Premium Quality of Product
LowHigh Price HighLow 14Marketing Your Business Idea Identifying A
Strategy
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Pricing Strategies Penetration Pricing Pricing products and
services at or below competitors Used to gain market share, often
times prices are increased once a customer base is established
Premium Pricing Pricing products and service above competitors Used
when substantive competitive advantage is present, creates an image
of quality 15Marketing Your Business Idea
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Pricing Strategies Economy Pricing Pricing just above
production and sales costs Used to create an image of low cost
Price Skimming Charging a high price for new products to the market
when competition is low, prices drop as competition enters the
market with similar products 16Marketing Your Business Idea
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Pricing Other Pricing Strategies Value Added Pricing Pricing
products and services to create an image of value added Often times
used in times of recession to generate continued consumer spending
Total Cost Pricing Looking at the total cost to produce and sell
your products and services Including costs in the front up price
verses charging extra at later service dates - Example: Service
Contract or Warrantee 17Marketing Your Business Idea
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Pricing: 3 Cs of Pricing Cost Competition Customers 18Marketing
Your Business Idea
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Pricing: 3 Cs of Pricing Costs Cost of Production Products: -
Materials, Labor, Packaging and Shipping Services: - Time and
Salaries, travel Overhead Cost What does it cost of run your
business day in and day out? - Examples: Rent, Utilities, Taxes,
Advertising, Loan Payments 19Marketing Your Business Idea
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Competition Research, Research, Research What does your
competition charge for their products and services? What is your
competitions market position and pricing strategy? Do the market
suppliers have control over mandating market pricing? Evaluate how
this relates to your business Example: If your competition is
charging $20/hour for service calls, but your internal cost
structure requires you to charge $25/hour, Penetration Pricing is
not feasible. 20Marketing Your Business Idea Pricing: 3 Cs of
Pricing
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Customers Research, Research, Research What are your customers
willing to pay for your products or services? What does industry
research say consumers are spending on your products and services?
And how often are they buying? 21Marketing Your Business Idea
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Promotional Mix Marketing Your Business Idea22
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Promotional Mix Promotion is communicating with customers and
giving them information that assists them in making a decision to
purchase a product or service. The elements of the promotional mix
are: Personal Selling Sales Promotion Public Relations Advertising
Trade Fairs and Exhibitions 23Marketing Your Business Idea
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Promotional Mix Personal Selling Personal selling is one-to-one
communication with potential buyers of a product or service with
the intention of making a sale. Personal selling involves the use
of a sales force to: encourage customers to buy the product or
service, support retailers and provide after-sales service.
24Marketing Your Business Idea
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Promotional Mix Sales Promotion Sales Promotions are incentives
that are designed to encourage the purchase or sale of a product or
service, usually in the short term Examples: Coupons, sweepstakes,
contests, product samples, rebates, tie-ins, point of purchase
displays, trade shows, trade-ins, and exhibitions 25Marketing Your
Business Idea
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Public Relations Public relations (PR) is the practice of
managing the flow of information between an organization and its
publics. PR is a means of keeping in touch with the audience using
topics of interest and items that do not require any payment.
Example: speaking at conferences, working with the press, and
employee communication. PR can be used to build a rapport with
employees customers, investors or the general public. Promotional
Mix 26Marketing Your Business Idea
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Advertising Advertising is a persuasive message to potential
customers to purchase or consume more of your product or service.
Media used: Television, radio, cinema, magazines, newspapers, video
games, the internet and billboards. Examples: Wall paintings,
billboards, printed flyers, radio, cinema and television adverts,
web banners, mobile telephone screens, shopping carts, web popups,
skywriting, bus stop benches, magazines, newspapers, sides of
buses, taxicab doors, roof mounts, subway platforms and trains, the
opening section of streaming audio and video, posters, and the
backs of event tickets and supermarket receipts. Promotional Mix
27Marketing Your Business Idea
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Trade Fairs and Exhibitions Trade fairs or exhibitions help
companies in a specific industry showcase their latest products and
services, study activities of rivals, examine recent trends and
opportunities, contact potential clients, enhance the company
image, network, and get new ideas. Things to keep in mind when
planning to attend trade fairs: location, what kind of people
attend the fair, participation cost (participation fee, space
rental, construction of advertising displays, travel,
accommodations, promotional literature, giveaways), and staffing
capabilities of the trade fair. Promotional Mix 28Marketing Your
Business Idea
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Marketing to Businesses (B2B) As a Supplier: through agents,
brochures/ catalogues, website, trade shows, telemarketing, direct
mail. Media used: Newspapers, magazines, cinema, radio, television,
internet, and public relations releases Third Parties: Family,
friends, associates, acquaintances, customers, and competitors
http://www.businessknowhow.com/marketing/marketingmix.htm Copyright
1995, 1997, 1999, 2000, 2001, 2002 Alan J. Zell, Ambassador of
Selling, Portland, OR. All rights reserved. 29Marketing Your
Business Idea
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Marketing to Consumers (B2C) Mass Media: Print, broadcast,
internet, direct mail, telemarketing, fax & Email, public
relations releases Display Presentations (as applicable): Location,
building, signage, windows/counters/shelf display, printed
materials, website, attire, business environment One-on-One: In
person, letter, Email, fax, telephone Follow-up: In person, letter,
Email, fax, telephone
http://www.businessknowhow.com/marketing/marketingmix.htm Copyright
1995, 1997, 1999, 2000, 2001, 2002 Alan J. Zell, Ambassador of
Selling, Portland, OR. All rights reserved. 30Marketing Your
Business Idea
Slide 31
You have reviewed: Market Analysis Competitive Advantage
Competitive Matrix Market Strategies Marketing Mix Pricing
Promotional Mix Marketing Your Business Idea31