VentureONE Market Strategy

Transcription

1 VentureONE Market Strategy Objectives: Upon completion of this lesson you will be able to: Identify target markets Write a brand positioning statement Create a market strategy Complete a SWOT analysis Topic 1: Target Market Your overall market is all those potential customers who have the need for your product or service and the ability and readiness to buy it. Your target market is those specific potential customers you wish to attract to buy your product. It is to them that you want to focus your marketing efforts. You identify your target market by segmenting the overall market into potential customers with common characteristics. Common market segments: Geographic--the location of your target market; i.e., town, city, state, continent, hemisphere, geology, etc. Demographic the gender, age, income, occupation, education, household size, nationality, religion, social class, etc. of you target market. Psychographic the values, lifestyles, interests, attitudes, and activities of your target market. Behavioral the actual behavior towards your product or service; i.e., usage, loyalty, type (first time, potential, regular), readiness to buy, occasions (holiday, birthday, time of day etc.), the benefit sought of your target market. Topic 2: Branding A brand is more than just a logo, design, or a name. It is the emotional and psychological relationship you have with your customers. Strong brands elicit opinions, emotions, and sometimes physiological responses from customers. 1 P a g e

2 A brand positioning statement summarizes in one or two sentences your product or services unique value or benefit to your target market in relation to your competitors in a given product category and gives them a reason to believe. o It is not a marketing slogan, but a lense for staff and stakeholders to focus marketing activities and strategies. Topic 3: SWOT Analysis SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT Analysis is a structured planning method that identifies the key internal and external factors that favorably or unfavorably impact your firm s ability to achieve your objectives in your targeted market. Set your objective first and do the SWOT in relation to your objective. Objective include things like: o Increase sales by 20% o Increase market share by 10% o Generate $100,000 in sales Strengths are internal factors: o Those assets, tangible and intangible, that give your company an advantage over your competitors in the target market. o Examples of strengths: Plant & equipment Financial resources Recognized brand Superior technology Experience of owner Intellectual property Cost effective supply chain o You leverage you strengths to maximize your competitive advantage in your target market. Weaknesses are internal factors you have control over: o Those assets, tangible and intangible, that your competitors have an advantage over your company in the target market. 2 P a g e

3 o Examples of weaknesses: Insufficient financial resources High cost structure Poor reputation Inferior technology, and equipment Bad location o You improve your weaknesses to minimize you competitive disadvantage in your target market. Opportunities are external factors: o An opportunity is an environmental condition, situation, or circumstance in your target market that improve your company s competitive position. o Examples of opportunities: Growth in existing market New distribution channels Emerging new markets Favorable change in legislation & regulation Expanding economy Competitor goes out of business o You use opportunities to extend your customer base, expand your business, increase your market penetration and competitive advantage, and increase your profitability. Threats are external factors you have little control over : o A threat is a forecast environmental condition that has the potential to negatively impact your company s profitability. o Examples of threats: New competitors enter the market New product or services enter the market Change in customers needs Change in regulations Decrease in customers ability to buy o You act to mitigate and respond quickly and appropriately to emerging threats. 3 P a g e

4 Last step in the SWOT analysis is to create actions that leverage strengths, improve weakness, take advantage of opportunities, and mitigate threats SWOTs are most useful when focused on a specific target market and specific market objectives. SWOT Analysis is a dynamic ongoing process. Topic 4: Market Strategy The market strategy is the foundation of a marketing plan. It is research driven. The elements of a marketing strategy include: o Executive Summary a narrative summary of all the information in the market strategy, usually written last. o Target Market per Topic 1 o Market Analysis an in depth look at the metrics and structure of the target market. Size Trends Growth rate Profitability Industry cost structure Distribution Channels o Competitors Analysis a robust analysis of who your competitors are, their competitive advantages, strengths and weaknesses, the threat they pose. o SWOT (Topic 3) strengths, weaknesses, opportunities, & threats o Branding includes your branding statement and brand message. o Price Strategy how you will market you pricing; i.e., promotional, bundling, market rate, economy, premium. o Tactics the marketing activities you will engage in; i.e., TV, radio, , direct mail, social medial, etc. 4 P a g e

5 o Budget your overall marketing budget and how it will be allocated to your tactical priorities. o Goals what the objective of you marketing is; i.e., increase market share, enter a new market, increase sales, etc. Search Terms Mission statement, market strategy, competitor analysis, brand positioning statement, market analysis, market goals, 5 P a g e

6 MARKET SEGMENTATION WORKSHEET Segment Name: SEGMENT TARGET Geographic Location, country, geology, etc. Demographic / Socioeconomic Gender, age, income, occupation, education, household size, nationality, religion, social class, etc. Psychographic Values, lifestyles, interests, attitudes, and activities Behavioral Usage, loyalty, type (first time, potential, regular), readiness to buy, occasions (holiday, birthday, time of day etc.), benefit sought 6 P a g e

7 Exercise: Brand Positioning Statement Use the following guide to write your brand positioning statement To: {Target market} {Your brand} is the: {Product Category} That: {Value, benefit, promise} Because: {Reason to believe} Example: To young successful men, FASTKAR is the luxury sports car that shows you have arrived. It is the number one selling $100,000+ sports care in America. Statement 7 P a g e

8 MARKETING STRATEGY WORKSHEET Executive Summary Write this section last. It is a brief narrative of the information that follows. Target Market(s) [From Worksheets] Market Analysis What is the current situation in your target market. This is a research driven section. Market Size: Market Trends: Market Growth Rate: Market Profitability: How profitable are firms in this industry? Industry Cost Structure: What costs are typically associated, industry wide, with your product or service? Distribution Channels: How are the products distributed to the customers? 8 P a g e

9 Competitors Who are your competitors and what is their market share and position? What is their competitive advantage? What are the strengths and weaknesses of your competitors? What threats do they pose? SWOT [See Worksheet] Branding Identify your brand s reason for existing and the value it delivers to consumers. What is your brand s position relative to its direct and indirect competitors? What is your message? Positioning statement-- This is an internal dialog. Marketing Message--A catchy tag line or slogan, based on you positioning statement used in marketing to your customers. This is an external dialog. Price Strategy. What is the pricing strategy for your product or service economy, premium, market rate, promotional, bundling, penetration, etc? 9 P a g e

10 Tactics What marketing activities will you do TV, radio, newspaper, social media, , word of mouth, direct mail, sandwich boards, other? Budget What is your overall budget for marketing and how will it be distributed to your tactical priorities? Goal What is the goal of your marketing strategy; i.e., enter a new targeted market, increase target market share, increase sales, etc.? The goals should be specific, measurable, attainable, realistic, and time bound. 10 P a g e

11 SWOT WORKSHEET Market Segment Objective Strengths (Internal) What you do exceptionally well? What is your competitive advantage? What unique resource or expertise do you have? What are your financial strengths? Action What can you do to take advantage of your strengths to achieve your objective? Weakness (Internal) What areas do you need to improve? What expertise and resources do you lack? Action What can you do to strengthen you weaknesses to maximize your chance of achieving your objective? Opportunites (External) What opportunities do you see now and down the road in your targeted market? Action How can you take advantage of the opportunities you see to achieve your objective in your target market? Threats (External) What are the obstacles to your success? Action How can you mitigate the threats to achieving your objectives in your target market? 11 P a g e

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