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Section3 3DevelopingAMarketingPlan WendyUmberger DawnThilmanyandSusanHineDepartmentofAgriculturalandResourceEconomicsColoradoStateUniversity SectionSummary Analyzestrengths weaknesses opportunitiesandthreatsResearchcustomers costsandcompetitionDevelopthemarketingmixusingproduct price placeandpromotion StrategicMarketingPlan COSTS CUSTOMER COMPETITION StrengthWeaknessOpportunityThreat ProductPricePromotionPlace FINALSTRATEGY RESEARCH MarketingComponent Focusonstrength weakness opportunityandthreat SWOT analysisofyourthreeCs CustomersCostsCompetitionMarketresearchonmarketingmix ProductPricePlacePromotion SWOTAnalysis Strengths OpportunitiesWeaknesses Threats Analyze CompanyperspectiveCompetition sperspectiveWhatcanbeemulatedorlearned ExamplesOfBusinessStrengths GoodmanagementEfficientbusinessorganizationHighemployeesatisfactionExcellentfinancialrecordsFacilitiesinneworgoodconditionUsingcurrenttechnologyandinformationUsingsuccessfulmarketingtechniques ExamplesOfBusinessWeaknesses PoormanagementLackofcommunicationbetweenstaffandmanagement disorganizationHighemployeeturnoverPoorfacilitiesUsingout datedtechnologyPoorfinancialrecords ExamplesOfMarketOpportunities Markettrends changeinconsumertastesandpreferencesAvailablefederalgrantmoneyResearchprovingthehealthbenefitsofacertainproductyouraiseZerotoslightcompetitionfromothersinyourregion ExamplesOfMarketThreats Researchindicatingproductisnolongersafeforconsumers healthNewentrantsintothemarket i e supermarketssellingownbrandof organicbeef Existenceofsubstituteproducts ortheinabilitytotrulydifferentiateyourproductfromothers SWOTAnalysis YourCompany Whatdoesyourcompanydoverywell Whatareyourcompany sweakareas Whereisyourcompanymostcompetitive Why What sthedifferencebetweenyourproductandothers Whatservicesorattributessetyouapart YourCompany Whereisyourcompanynow Wheredoesyourcompanywanttobe Whatmustbedonetoachievethis Whatisthetimeframe Whataretheobstacles Whatresourcesarerequiredforsuccess Howissuccessmeasured SWOTAnalysis TheCompetition Whereisthecompetition Wherearetheytryingtogo Whatistheirplanofaction Whataretheirperceivedobstacles Whattimeframewilltheyuse Howcanyoumeasuretheirsuccess Whatcanyouemulate TheThreeCsOfMarketing 1 Customer2 Costs3 Competition 1 TheCustomer Whatuniquevaluedoesyourproductbring Whoareyourcustomers clients Describethem Demographics age gender income etc Psychographics buyingpatternsWheredoyoufindyourcustomers 1 TheCustomer Howdoyoureachyourcustomers Whatmotivatesyourcustomers Howdopeoplesatisfytheneedforyourproductrightnow Whoistheretosatisfytheneedforyourproductrightnow yourcompetition 2 YourCosts KnowvariablecostsofproducingyourproductRealizetherearefixedcoststhatmustbepaid whetheryouproduceyourproductornotUsevariableandfixedcoststocalculatethebreak evenpointwherecostsarecoveredwithoutprofitComparebreak evenwithindustrystandardsFinancialanalysis Giventhenumbersandvalueperceivedbythecustomer canyoufeasiblygointoproduction 3 TheCompetition FromSWOTanalysis assessyourbusiness strengthsandweaknessescomparedtoyourcompetitor sEmulateyourcompetition sstrengthsandovercometheirweaknessesDifferentiateyourproductsothecompetition sproductisnotsubstitutable TheMarketingMix PRODUCT PRICE PLACE PROMOTION Marketing 1 Product Goodsthatsatisfytheneedsofatargetmarketshouldhavethefollowingcharacteristics Physicalfeatures designandpackaging Brandingandimage personalityDegreeofcustomerserviceConsistentqualityandsupplyPricingtocovercosts generaterequiredmarginsorreturns 1 Product Productcharacteristics continued Cutstheconsumerwants steak hamburger jerky value addedentr e etc Fresh frozen preparedFormpurchasedversuslivecutup 1 4beef Inspectionrequirements 2 Price Setpricesbasedon Value basedpricing matchpricetoperceivedvaluebycustomer brandloyalty customer orientedprice Competition basedpricing matchpricestosimilarproductsofyourcompetition Cost basedpricing setpricedependentuponproductioncosts Usediscountsorincentivestoboostsales 3 Place DistributionChannel WherecustomerspurchaseproductProductmustbeattherightplace attherighttime inordertosell provideprofittoproducerChannelsinclude Directsales internetsales brokerordistributorDeterminecustomerservicelevelbyyourfirm Risk ReturnTradeoff DirectSales Farmersmarket RevenuesdirecttoproducerTargetmarket growthpotentialaresmallMailorder RevenuesdirecttoproducerGreaterchanceofshippingproblemslikespoilage Risk ReturnTradeoff DirectSales Internetsales IncreasesaccessibilitytoproductfornewandcurrentcustomersLowertransactioncosts fewerlaborhours Requiresalotofplanning attentiontodetailNeedwell designedWebsitetopromoteproduct drawcustomersMustmaximizevalueofcustomer sbusinesstogetrepeatpurchasesNeedtomaintainWebsite keepcurrent Risk ReturnTradeoff Broker Distributor Broker AgentmayincreasesalesandaccesstoretailmarketFewerrevenuestotheproducerDistributor IncreasesaccesstomoremarketsMayalsodistributecompetingproducts IssuesInEstablishingADistributorRelationship Productviability mustassuretheproductwillbenefitdistributor retailerorrestaurateurMarketresearch informdistributorwhereyourproductfitsinmarketplace emphasizeuniquenessorappealCosts averageof 0 25 0 30isspentonmarketingforeachdollarofexpectedsalesFit chooseadistributorwhocarriescomplementaryproductlines visitstorestheyservice 4 Promotion Includesadvertising publicrelations salespromotionsInfluencesattitudes buyingbehaviorsofcustomersinatargetmarketShouldencourageproductpurchase marketexpansionEffectiveifyouhaveaproductconsumerswantImportantforpositioningaproductinthemarket PromotionalObjectives StimulatesalesDifferentiateproductofferingsinvaryingmarketsShareinformationAccentuatevalueofproductStabilizeseasonaldemand Source LouPelton DavidStrutton JamesLumpkin 1997 MarketingChannels ARelationshipManagementApproach pp99 109 PromotionalMethods Advertising newspaper television magazine radio Internet billboardDoesyourbusinesshaveauniquestory Publicrelations communityserviceoreventsSalespromotions point of purchasedisplays tradeshows exhibitionsanddemonstrations freesamples Wordofmouth Source LouPelton DavidStrutton JamesLumpkin 1997 MarketingChannels ARelationshipManagementApproach pp99 109 WhenPromotingYourProduct DeterminedesiredmessageyouwantyourcustomerstohaveaboutyourproductSetgoalspromotionwillaccomplish eitherpublicrelationsforyourbusinessorincreasingproductsalesDesignabudgetforpromotionalexpense
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