Marketing Plan

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Marketing Plan

• MGMT 610 students
• Don Harkins is speaking across the hall, in 128
  Chiles. Come on over.

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Agenda

• Team Presentations
• Product or Service Description (3-minutes)
• Meetings 2 teams meet with Don tonight
• Other Teams meet with Alan to discuss Marketing
  Plan
• Team meetings to begin work on Step 3

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Team Presentations

• Product or Service Presentation
• 3 minutes
• 1-2 questions only
• Schedule team meetings with Don
• Breakout

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Announcements Logistics
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Entrepreneur on CampusIntels Dave Preston

• Internal VC in Intels New Business Development
  Group Angel Investor
• Elevator Pitches 400 pm, 228 Chiles, Thursday,
  January 24
• First-Years in audience
• Agenda
• 2 minutes to pitch your plan
• Dave will give instant feedback
• QA

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Mentoring

• Don Harkins dharkins_at_cmc.net
• Market Planning Consultant to all teams
• Progress in locating a mentor
• AFS - Bryce Anderson, Crown Capital Securities
• TreeShavers - Clarke McAllister, PSC
• HIP and SchlauTech?
• Spell out expectations

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Elements of a Successful Business Plan

• Executive Summary
• Company Overview
• Industry and Marketplace Analysis
• Marketing Plan
• Operations Plan
• Management

• Financial Summary
• Offering
• Appendices
• 5-yr PL
• 5-yr Balance Sheet
• 5-yr Cash Flow
• 1-yr monthly CF
• Other support docs

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Business Plan Templates

• We will all use the same business plan outline
  and organization
• MS Word template available on course web site
• Please upload to eProject
• MS Excel financial spreadsheets available on
  course website
• Please use them

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How to write a plan?
Linear Model
Done?
Mktg
Ops
Develop
Iterative Model
Business Plan
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Iterative ApproachTwelve Steps Ten Weeks

• Assess Concept
• Industry Analysis
• Marketing Plan
• Operations Plan
• Development Plan
• Build Strategy

• Revenues Expenses
• Financials
• Funding
• Valuation and Offer
• Publish your Plan
• Present your Plan

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12 Steps, Deliverables, Presentations

• 12 Step Assignments
• Parts of the business plan that your team needs
  to work on that week (Tuesday-Monday)
• Listed on pp. 26-34 of Writing a Successful
  Business Plan
• Write and insert in Business Plan Template on
  eProject.
• Deliverables (a subset of 12 Step Assignments)
• Assignments that I will grade and comment on.
• Write and insert in Business Plan Template on
  eProject.
• Presentations (in class)
• Snippets of the presentation your team will make
  on March 12.
• I will grade and comment on these as well.
• Please rotate presenters.

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Step 2 (last week)

• See page 26, LM
• Draft Product/Services Description
• Deliverable 2, due today.
• Research your industry, draft 1st two sections,
  Industry Marketplace Analysis
• Industry Analysis (2/3 page)
• Marketplace Analysis (2/3 page)
• Customer Analysis (write this later)
• Competitor Analysis (write this later)

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Step 3 (this week)

• See page 27, LM
• Write Mission Statement
• Research and draft Customer Analysis section of
  your plan
• Industry Analysis (2/3 page)
• Marketplace Analysis (2/3 page)
• Customer Analysis (write this now)
• Competitor Analysis (write this later)
• Do customer research and draft Intro Target
  Market paragraphs of Marketing Plan Sections
• Draft Company Overview section
• Deliverables See Schedule

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Company Overview

• Introduction (1 paragraph)
• Name, location, organization
• Mission Statement
• History and Current Status (1 paragraph)
• Markets and Products
• Objectives
• Length about 1 page

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Mission Statements

• What is a mission statement?
• What makes a good mission statement?
• Examples

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Mission StatementSemiconductor Equipment
Semiconductor Equipment will become a world
leader in supplying lithography automation and
productivity enhancement products for the
semi-conductor industry through innovative design
and unique customer insights.
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Mission StatementTech Support Company
Tech Support Company exists to provide
outstanding technical support service and
technical training to its customers. The
Companys target customers are developers of
computer applications, companies with high
demands for technical service and support, and
retail consumers of computer products. We are
committed to becoming the premier provider of
technical help desk solutions and professional
training for IT personnel. Towards this end, our
management has affirmed that it will adhere to
the qualities of integrity, challenge,
innovation, enjoyment, shared leadership and
customer satisfaction.
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Mission StatementLL Bean
Sell good merchandise at a reasonable price
Treat your customers as you would your friends.
Leon Bean, 1911
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission StatementGeneral Electric
Become 1 or 2 in every market we serve and
revolutionize this company to have the agility of
a small enterprise. Jack Welch, 1983
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission StatementShipbuilding
We will always build good ships. At a profit if
we can, At a loss if we must, But always good
ships. Bath Ship Works
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Mission StatementGreat Britain WWII
Our whole people and empire have vowed themselves
to the single task of cleansing Europe of the
Nazi pestilence and saving the world from the new
dark ages. We seek to beat the life and soul of
Hitler and Hitlerism. That alone. That all the
time. That to the end. Winston Churchill, 1941
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission StatementsFast Food Industry
To make, distribute and sell the finest quality
all-natural ice cream and related products in a
wide variety of innovative flavors made from
Vermont dairy products. Ben Jerrys To
satisfy the world's appetite for good food, well
served, at a price people can afford. McDona
lds
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Mission Statements

• What makes a good mission statement?

• Compelling
• Inspiring
• Clear, measurable objectives
• Concise

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Next Week

• Business Plan Competition Video
• Deliverables
• Mission Statement
• Industry, Marketplace, and Marketplace Buyer
  Analysis
• Seven-sentence marketing strategy
• Target Market Strategy
• Team meetings

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Team Presentations

• Mission Statement, 7-sentence marketing plan,
  Marketplace Buyer Analysis
• 3 minutes -- strictly enforced
• 1-2 questions only

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Marketing Plan
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Marketing Plan Objectives

• Most important piece of your plan
• Build on industry and marketplace analysis
  define your niche
• Identify your customers
• Demonstrate how you will solve problems for
  customers
• Describe how you will reach customers
  advertising, sales
• Convince reader that there is an eager market for
  your product or service

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Marketing Plan Outline

• Introduction
• Target Market
• Product/Service Strategy
• Pricing Strategy
• Distribution Strategy
• Advertising and Promotion
• Sales Strategy
• Sales and Marketing Forecasts

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Introduction

• Seven sentence introduction
• The first sentence tells the purpose of the
  marketing strategy.
• The second tells how youll achieve this purpose,
  focusing upon your benefits.
• The third tells your target market or markets.
• The fourth, the longest sentence, tells the
  marketing weapons youll employ.
• The fifth tells your niche.
• The sixth tells your identity.
• The seventh tells your budget, expressed as a
  percentage of your projected gross revenues.

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Introduction Example
The purpose of Prosper Press is to sell the
maximum number of books at the lowest possible
selling cost per book. This will be accomplished
by positioning the books as being so valuable to
free-lancers that they are guaranteed to be worth
more to the reader than their selling price.
The target market will be people who can or do
engage in free-lance earning activities.
Marketing tools to be utilized will be a
combination of classified advertising in
magazines and newspapers, direct mail, sales at
seminars, publicity in newspapers and on radio
and television, direct sales calls to bookstores,
and mail-order display ads in magazines. The
niche to be occupied is one that brings together
valuable information that helps free-lancers
succeed. We will become the ultimate authority
for free-lancers. Our identity will be one of
expertise, readability, and quick response to
customer requests. Thirty percent of sales will
be allocated to marketing.
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Target Market Strategy

• Identify the market niche you will serve
• Be as specific as possible
• Better to be too specific
• Benefits to target market
• What problems do you solve?
• What needs do you fulfill?

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Two Types of Benefits

• Emotional
• Hope, fear, love, guilt, greed, convenience
• Financial
• Increased profit, value pricing, save money,
  payback period

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Talk to Your Customers

• Imperative that you talk with customers!
• Casual conversations
• Interviews
• Surveys
• Focus groups
• Identify needs
• Listen!
• NOTE see The New Market Research (online INC
  article)

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Target Market Questions

• What buy now? How get service?
• Would you be interested in ?
• Would you buy?
• Where would you expect us to advertise?
• Who do you consider our competition?
• Other comments?

Levinson, Guerrilla Marketing 3rd edition
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Product/Service Strategy

• Describe how the design of your product/service
  fulfills unmet marketplace needs
• Differentiate your product/service from the
  competition
• Explain why and how customers will switch to your
  product or service
• Describe how you will defend your product or
  service from competition

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Product Attribute Map
Attribute 1
Competitor 3
You
Competitor 1
Attribute 2
Competitor 2
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Pricing Strategy

• Describe and justify your pricing strategy
• Provide evidence that your target market will
  accept your price
• Position your strategy relative to current and
  potential competition
• NOTE Low price often is NOT a good strategy for
  a startup!

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Advertising/Promotion

• Describe how you will communicate with current
  and potential customers
• Advertising
• Public relations
• Personal selling
• Printed materials
• Other means of promotion
• Explain why this strategy is most effective in
  reaching your target market
• Note See Guerrilla Marketing

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Distribution Strategy

• Explain how you will deliver your product or
  service to your customers
• How will your customers acquire your product or
  service?
• Describe and justify the distribution channels
  you will use
• Describe how you will gain access to your planned
  distribution channels

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Sales Strategy

• Describe to whom you must sell your product or
  service (not always obvious)
• Explain how you will sell
• An internal sales force
• Manufacturer's representatives
• Telephone solicitors
• Describe how you will support your sales effort
• internal staff
• service operations

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Goals for Marketing Plan

• Compelling story that there is a need in the
  market
• Need flows logically from industry analysis
• Product/service designed to fulfill market needs
• Advertising, price, distribution, and sales all
  flow logically, convincingly from characteristics
  of the market

• WOW! What a great idea! I wish I had thought of
  that

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