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1、MARKETING YOUR BUSINESS FOR SUCCESSWORKSHOP INTRODUCTIONMARKETING YOUR BUSINESS FOR SUCCESS WORKBOOKTraining Module - 3Workshop ObjectivesBy the end of this workshop, you should be able to:* Determine the purpose of the marketing plan- Identify strategies for conducting market research- Identify adv
2、antages of market research* Determine what the marketing plan contains- Target market- Competition- Product/service- Marketing budget- Location- Pricing strategy- Promotional strategy* List- advantages of developing a marketing plan- disadvantages of developing a marketing plan* Prepare a marketing
3、plan outline* Develop an effective marketing strategy- Advertising strategy- Promotional strategyMARKETING YOUR BUSINESS FOR SUCCESS - THE MARKETING PLAN - UNDERSTANDING THE MARKETPLACEMarketing plays a vital role in successful business ventures. How well the plan you develop markets your business,
4、along with the management and financial management plans, will ultimately determine your degree of success or failure. The key elements of a successful marketing plan are to 1) know your customers -their likes, dislikes and expectations, and 2) to know your competitors - their strengths and weakness
5、es. By identifying these factors, you can develop a marketing strategy that will allow you to arouse and fulfill customers needs, better understand competitors and identify changes in the marketplace that can affect your bottom line.The purpose of the marketing plan is to define your market, i.e., i
6、dentify your customers and competitors, to outline a strategy for attracting and keeping customers and to identify and anticipate change. Your business will not succeed simply because you want it to succeed. It takes careful planning and a thorough understanding of the marketplace to develop a strat
7、egy that will ensure success.Understanding the MarketplaceGenerally, the first and most important step in understanding the market is to study it through market research. In the case of a franchise, the franchisor has developed a marketing program, so you will need to review the program he or she ha
8、s provided. Look over the plan to determine what product/service you will offer and write a description of it. Even though a franchisor has described your product or service, it is a good idea to develop and write your own description because this process helps you to know your product or service-a
9、key variable in any successful marketing plan. When describing your product or service outline what you feel are its unique aspects, and explain how or why these aspects will appeal to customers. Emphasize the special features that you feel are its selling points. These features are what you will us
10、e to convince customers to purchase your product or service.Next go over sales projections, determining if there is a demand for the product or service. In the case of a franchise, the franchisor will have developed the projections. Study this data to see how he or she arrived at these projections.
11、This will help you to better understand how the marketplace operates relative to your product/service, and it can help you develop the skills necessary to identify and anticipate changes in the marketplace. Start your own file on marketplace trends. Periodically review your data, looking for shifts
12、in the market. If changes are occurring, you should modify the marketing plan to coincide with these changes. In franchise operations, it is customary for the franchisor to update the marketing plan periodically to reflect changes in the marketplace and to keep the marketing program current.A market
13、ing plan should answer these questions:* Is this product or service in constant demand?* How many competitors provide the same product or service?* Can you create a demand for your service or product?* Can you effectively complete in price, quality and delivery?* If a franchise, will the franchisor
14、price the product or service to give you the projected profit?Review your program to ensure that it answers these questions. If your plan doesn't answer the questions, it will need to be modified, or you will need to devise a strategy that will provide a means for answering them. When you are sa
15、tisfied that you understand the program, how the market operates and how to identify market shifts and trends, start writing the marketing section of your business plan.Even if you adopt a marketing program that has been developed elsewhere, it is your responsibility to promote your product or servi
16、ce by cultivating the marketplace, i.e., attracting and keeping customers. You can accomplish this aim by knowing your market, your customers, your competitors and your product/ service. Don't rely solely on the program provided by a franchisor or others, gather and assess your own data using th
17、e techniques outlined in your plan. By gathering and analyzing this information, you will be better able to determine if your program is in line with your competitors, if it is in line with industry averages and what adjustments you can make to improve your overall competitiveness.A sample "Mar
18、keting Plan" is attached as part of Appendix I. Study it carefully, then try to develop a similar program for your business plan.MARKET RESEARCHStrategies for Researching the MarketResearching your market is perhaps the easiest way to assess it. Market research does not have to be costly, nor d
19、oes it have to be a complex process. It can be as simple and as easy as surveying a cross-section of your consumers (focus group) to get their opinions about the product or service you will be offering, or conducting a telephone or mail survey. The disadvantages of using the telephone or mail survey
20、 method are the individuals you contact may not be interested in responding to a survey. Other market research techniques include analyzing demographic data, such as population growth/decline rate; age range, sex, income/educational level; brainstorming with family and friends, focus group interview
21、s. Whatever method you use, your focus should be on gathering enough information to determine who your potential customers are-their needs, wants and expectations; if there is a demand for your product or service; who your competitors are and how well they are doing.Market research should answer que
22、stions such as:* Who are your customers and potential customers?* What kind of people are they?* Where do they live?* Can and will they buy the product or service you're offering?* Are you offering the kinds of goods or services they want - at the best place, the best time and best amounts?* Are
23、 your prices consistent with what the buyers view as the products' values?* Are you applying the promotional programs in a way that will bring about success?* What do customers think of your franchise?* Who are your competitors?* If a franchise, how does your operation compare with the competiti
24、on?While there are some disadvantages to market research-it's a costly, time-consuming process, builds in biases that distort information, ignores answers or lets arrogance or hostility cut off communications at some point in the marketing process-the advantages, however, outweigh the disadvanta
25、ges. Don't foregothis process or stop halfway because you are not getting the desired results. This may be an indication that you are going into the wrong business or that there isn't a market for your product or service. Don't be discouraged. You simply may need to modify your original
26、plan.A few of the benefits of market research are outlined below.* Learning who your customers are and what they want.* Learning how to reach your customer and how frequently you should try to communicate with them.* Learning which appeals are most effective and which ones aren't.* Learning the
27、relative successes of different marketing strategies in relation to their return on investment.While market research may appear to be a tedious, time-consuming process, it is necessary if you want to be successful. Think of market research as simply a method of finding out what catches customers'
28、; attention by observing their actions and drawing conclusions from what you see and as an organized way of finding objective answers to questions every business owner and manager must answer in order to succeed. Market research focuses and organizes marketing information, ensuring that it is timely
29、 and that it provides what you need to:* reduce business risks,* spot problems and potential problems in your current market,* identify and profit from sales opportunities, and* get basic facts about your markets to help you make better decisions and set up plans of action.If viewed from this stand
30、point, market research is an invaluable tool that can save you time, effort and money.SELF-PACED ACTIVITYDuring this activity you will answer the following questions:* Do you have a marketing plan? Yes_ No_* If yes, which elements described in pages 1-5 did you NOT include?* Have you conducted any m
31、arketing research?* If yes, how and what methods did you use?* If no, why?MARKETING YOUR BUSINESS FOR SUCCESS - WHAT DOES A MARKETING PLAN CONTAIN?Many first-time business owners think that by simply placing an ad in a local newspaper or a commercial on a radio or a television station, customers wil
32、l automatically flock to purchase their product or service. This is true to a certain extent. Some people are likely to learn about your product or service and try it, just out of curiosity. But hundreds, even thousands, of other potential customers may never learn of your business. Just think of th
33、e money you'll lose, simply because you didn't develop an adequate marketing program!Marketing is an essential part of business operations. And, it oftentimes determines how successful your business will be. What you as a potential business owner must do is maintain a thorough understanding
34、of the marketing program, and use it to extract advantages from the marketplace. Go over the strategies and techniques until you understand how to apply them to get the results you desire. Remember, your aim is not only to attract and keep a steady group of loyal customers, but also to expand your c
35、ustomer base by identifying and attracting, new customers and to reduce risks by anticipating market shifts that can affect your bottom line.To help you accomplish this aim, your marketing plan should include strategies typical of any marketing plan. The plan should especially include what marketeer
36、s dub as the 4 P's of Marketing (PRODUCT/SERVICE, PRICE, PLACE AND PROMOTION). Review your plan. Make certain it contains the strategies listed below, then determine how these strategies are applied. Include a brief explanation for each strategy.Describe the target market by- age- sex- professio
37、n/career- income level- educational level- residenceIdentify and describe your customers (target market) by their age, sex, income/educational levels, profession/career and residence. Know your customers better than you know anyone-their likes, dislikes, expectations. Since you will have limited res
38、ources target only those customers who are more likely to purchase your product or service. As your franchise grows and your customer base expands, then, you may need to consider modifying this section of the marketing plan to include other customers.* Identify Competition- market research data- dem
39、and for product or service- nearest direct and indirect competitors- strengths and weaknesses of competitors- assessment of how competitors businesses are doing- description of the unique features of your product or service- similarities and dissimilarities between your product or service and compet
40、itor's- pricing strategy for and comparison of yours and the competition'sIdentify the five nearest direct competitors and the indirect competitors. Start a file on each identifying their weaknesses and strengths. Keep files on their advertising and promotional materials and their pricing st
41、rategies. Review these files periodically determining when and how often they advertise, sponsor promotions and offer sales.* Describe Product/Service- describe your product or serviceTry to describe the benefits of your goods or services from your customer's perspective. Emphasize its special f
42、eatures-i.e., the selling points. Successful business owners know or at least have an idea of what their customers what or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty.* Develop Marketing Budget- advertising and promotional plan- costs allo
43、cated for advertising and promotions- advertising and promotional materials- list of advertising media to be usedOperating an effective marketing plan requires money, so you will have to allocate funds from your operating budget to cover advertising, promotional and all other costs associated with m
44、arketing. Develop a marketing budget based on the cost for the media you will use, and the cost for collecting research data and monitoring shifts in the marketplace.* Describe Location (Place)- description of the location- advantages and disadvantages of locationAgain, try to describe the location
45、of your business from your customer's perspective. Describe its assets - i.e., the convenience, whether or not public transportation is accessible, the safety aspects-street lighting, well lit parking lot or facility, decor, etc. Your location should be built around your customers, it should be
46、accessible and should provide a sense of security. An advantage of purchasing a franchise is the franchisor oftentimes assist in site selection and decorating.* Develop Pricing strategy- pricing techniques and brief description of these techniques- retail costing and pricing- competitive position- p
47、ricing below competition- pricing above competition- price lining- multiple pricing- service costs and pricing (for service businesses only)- service components- material costs- labor costs- overhead costsAlthough your pricing strategy may be based on the strategy devised by others, you should study
48、 this plan and the strategies used by competitors. That way you will acquire a thorough understanding of how to price your product or service, and you can determine if your prices are in line with competitors, if they are in line with industry averages and what adjustments you can make to bring them
49、 in line.The key to success is to have an well-planned strategy, to establish your policies and to constantly monitor prices and operating costs to ensure profits. Keep abreast of changes in the marketplace because these changes can affect your bottom line.* Develop an effective Promotional Strategy- advertising media- print media (newspaper, magazine, classified ads,Yellow Pages advertising, brochure)- ra