Building Strategies Forecasting Costs

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Building StrategiesForecasting Costs Revenues

• Business Plan Preparation
• Lundquist College of Business
• University of Oregon

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Todays Agenda

• Marketing Plan Presentations
• Introduction to Building Strategy

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Course Outline
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(No Transcript)
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(No Transcript)
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Building Strategy
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Building StrategyOutline

• Marketing Plan
• Advertising and Promotion Strategy
• Sales Strategy
• Operations Strategy
• Development Strategy

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BUILD STRATEGY
MarketingStrategy
OperationsStrategy
DevelopmentStrategy
Target Customer Benefits Positioning Differentiati
on
Add Value
Steps to Accomplish
Drivers to the Financial Plan
Income Statement
Balance Sheet
Cash Flow
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Marketing PlanAdvertising Strategy

• How will we advertise and promote our product or
  service?
• How will we communicate with our customers?
• Advertising?
• Public relations?
• Personal selling?
• Printed materials?
• Other means of promotion?
• Why will this be strategy be effective in
  reaching our target customer?

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Marketing PlanSales Strategy

• How will orders be taken?
• Personal selling?  
• Online purchasing?
• TV infomercials?
• Direct mail?
• 800 telephone?
• Who will do the selling?
• An internal sales force?
• Manufacturer's reps?
• Telephone solicitors?

• How will we recruit, train, and compensate our
  sales force?
• How will we support our sales effort?  
• Internal staff
• Service operations

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Operations PlanOperations Strategy

• How will we use operations to add value for
  customers in our target market?
• Operations can add value through
• Quality
• Flexibility
• Timeliness
• Price
• Which dimensions will we stress and which will we
  de-emphasize?
• What comparative advantages do we have with our
  operational design?

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Development PlanDevelopment Strategy

• What work remains to launch our company and our
  products?
• What factors need to come together to make our
  concept work?
• What are we doing to bring them together?
• What are the risks to the successful
  implementation of our development plans?
• Technological risks
• Cost risks
• Competitive risks
• How will we mitigate these risks?

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Differentiation Road Map
Brand Trademark Bundling
Communications
Features Packaging Quality Color Size Style Option
s Timeliness Customize
Delivery Warranty Installation Service After
sales Special terms Usergroups Design help
Augmented Benefits
Tangible Benefits
Core Benefits
Whats it for? Whats it do?
Example Morton Salt
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Morton Salt

• Core Benefit
• Flavor enhancer, preservative
• Tangible Benefit
• Iodized, pourability, granual size, color,
  flavor, packaging, sea salt
• Augmented
• Delivery (restaurant, ODOT), healthy recipes
• Communication
• When it rains it pours (girl with umbrella)

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Morton Salt
1848 trademark
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Questions?