The Entrepreneurial Way

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1 The Entrepreneurial Way Workshop Wednesday 30 January The Essentials of Marketing Fiona Mulliner

2 Today s Session What marketing is Where marketing fits into a business How to develop a robust marketing strategy The essentials of marketing The importance of audiences Marketing tools & techniques

3 What is Marketing? The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. Peter Drucker

4 Why does it matter? Marketing is too important to be left to the marketing department. Bill Packard, Hewlett Packard, 1997 Commercial and business development Competition Customers/Audiences/Stakeholders Product Development Pricing Positioning = Strategy

5 Marketing & the Organisation Without consumers there is no organization (Kotler, Drucker 1992) Marketing-led organisations focus on customer retention, satisfaction, experience management and lifetime value. Sales-led organisations focus on customer acquisition, revenue, profit, and market share.

6 The Essentials of Marketing What s the big idea? What s the need? Where s the gap? Who s it for? How will they buy? Why will they buy? How will you reach them? What do you want them to know/remember/do?

7 Creating a Marketing Strategy Corporate Strategy, Goals, Objectives Vision Mission Values Market Analysis Porter s PEST SWOT BCG Ansoff Marketing Strategy Products Target markets/audiences Positioning/differentiation Channels Marketing Planning and Programmes Seven Ps Communications Budgets & resources ROI & Measurement

8 The Essentials of Marketing Vision Mission Values Brand Positioning Unique Selling Proposition

9 Your company s vision Long-term statement of aspiration Destination: not roadmap Direction and inspiration for organisational goal-setting Achievable but challenging Not SMART (ie: not most profitable, cheapest ) Eg: Ikea To create a better everyday life for the many people

10 Your company s mission Statement of purpose, reason for being What, rather than how or when What you do best every day Not the same as a company slogan or strapline Should be clear, crisp, linked to company s goals and strategy Eg: Ikea: To offer a wide range of well designed, functional home furnishing items at prices so low that as many people as possible will be able to afford them.

11 Your company s values A statement of a company s intention and commitment to achieve a high level of performance on a specific qualitative factor

12 Heinz s values Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions. Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short- and long-term. Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

13 Creating a Marketing Strategy Corporate Strategy, Goals, Objectives Vision Mission Values Market Analysis Porter s PEST SWOT BCG Ansoff Marketing Strategy Products Target markets/audiences Positioning/differentiation Channels Marketing Planning and Programmes Seven Ps Communications Budgets & resources ROI & Measurement

14 Market Analysis: theories & tools Porter s Five Forces: understanding your competitive context PEST analysis (STEP/SLEPT/PESTLE): the Political, Economic, Social and Technical factors affecting your business (+Legal, Environmental) SWOT analysis: Strengths, Weakness, Opportunities & Threats for your business Boston Consultancy Group Matrix: understanding your product portfolio (Stars, Question Marks, Cash Cows & Dogs) Ansoff s Matrix: strategies for growth - market penetration, product development, market development, diversification

15 Creating a Marketing Strategy Corporate Strategy, Goals, Objectives Vision Mission Values Market Analysis Porter s PEST SWOT BCG Ansoff Marketing Strategy Products Target markets/audiences Positioning/differentiation Channels Marketing Planning and Programmes Seven Ps Communications Budgets & resources ROI & Measurement

16 Your Brand The intangible sum of a product's attributes: its name, packaging, and price, its history, its reputation, and the way it's advertised. David Ogilvy, Ogilvy & Mather

17 The Importance of Audiences "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. Peter Drucker Who are your target customers and markets? What does your ideal customer look like? Can you create a customer profile? How specific can you get? What other audiences do you need to consider: stakeholders, suppliers, press, regulators, staff?

18 Positioning The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organisation

19 Competitive positioning A means of differentiating your product/service from that of your competitors

20 Positioning statement For (target customer) Who (statement of the need or opportunity) The (product name) is a (product category) That (statement of key benefit: compelling reason to buy) Unlike (primary competitive alternative) Our product (statement of primary differentiation).

21 Positioning statement Our (offering) Is the only (category) That (benefit) Eg: Dyson

22 Unique Selling Proposition By product, or company-wide Better or cheaper? Make money or save money? Features versus benefits ( which means that ) FAB: features, advantages & benefits ( and so you can... ) Are benefits standard to you and your competitors, or different? If they are standard, which are strongest? Can you differentiate further?

23 Creating a Marketing Strategy Corporate Strategy, Goals, Objectives Vision Mission Values Market Analysis Porter s PEST SWOT BCG Ansoff Marketing Strategy Products Target markets/audiences Positioning/differentiation Channels Marketing Planning and Programmes Seven Ps Communications Budgets & resources ROI & Measurement

24 Channels Distribution vs marketing channels B2B vs B2C marketing How can you reach your target market/audience most effectively? Where can you find them? B2B: networking, advertising, direct mail, exhibitions, website, digital marketing ( , webinars, SEO), thought leadership, PR. B2C: social media marketing, advertising, website, digital marketing, PR, direct marketing.

25 Creating a Marketing Strategy Corporate Strategy, Goals, Objectives Vision Mission Values Market Analysis Porter s PEST SWOT BCG Ansoff Marketing Strategy Products Target markets/audiences Positioning/differentiation Channels Marketing Planning and Programmes Seven Ps Communications Budgets & resources ROI & Measurement

26 Marketing Planning Objectives: what do you want to achieve? Audiences/target markets: who are you talking to? Competitive positioning: how will you differentiate? Channels: how will you reach your audience? Measurement and ROI: how will you measure impact?

27 The Marketing Mix: 7 Ps Product Price Place Promotion People Processes Physical evidence

28 Marketing tools & techniques Market research: qualitative, quantitative, social polling. Test new product appeal, explore customer satisfaction levels, understand competitive positioning, identify brand differentiators, establish appropriate pricing strategies, select most effective channels... Customer and product segmentation: how to compete in a crowded market? Diversify, compete on price or segment: differentiate your offer, its communication and delivery. Competitive intelligence: understanding your competitive environment and how you can differentiate your offering most effectively. New product development: focus on customer need, not market need. Measurement and ROI: how to measure the success and impact of your marketing activities? Sales, enquiries, awareness, click throughs, sign ups, perception, competitive reaction.

29 Summary Marketing is strategic and customer-focused Marketing underpins the commercial and strategic development of a company Key questions for your business plan: - what s the customer need? - who s your customer? Specifically? - where can you find them? Online, offline, face-to-face - how and where will they buy? Distribution, pricing - why will they buy? Positioning, differentiation, messaging, WIIFM - how will you measure success?

30 Thank Bringing brands and business to life: Strategic, creative, digital

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