Continued from last week's 1-minute article overview on the subject. [T-17] Let us start with 7. Marketing > The Marketing Strategy Process. Credit goes to Steven Silbiger; the process is adapted from the 2nd edition of his book.
- Analyze the Costumer: Need category, buying process/ AIDA, high- or low-involvement products, market segmentation.
- Makable or marketable product?
- Demography of the consumers.
- Who’s buying, Who’s using?
- What is the buying process?
- Who are the Influencers?
- How important is it to the consumer?
- Who needs it and why?
- What is the value to the end user?
- Is it a planned or impulse buying?
- What are the perceptions of our product?
- Does it meet their needs?
- Are we able to keep our customers for long term?
- Are we able to attract the competitors’ customers?
- Are we ourselves a cause for decreasing the market demand?
- How is the consumer knowledge about our product?
- Analyze the Market: Market relevance, product life cycle, key competitive factors.
- What is the market’s nature? - Size, growth, segments, geography, PLC.
- Competitive Factors? - Quality, price, advertising, R&D, services.
- What are the trends?
- Is there any unsupplied demand in the market?
- Is there any hidden demand in the market?
- What is the supply & demand balance of the market?
- Who are the competitors?
- Who are the potential competitors?
- Analyze the Competition and Yourself: Entry barriers, market share, perceptual mapping.
- What is the company good at, poor at?
- What is the position in the market? Size, share, reputation, historical performances.
- What are the resources? Trade relations, sales forces, cash, tech, patents, R&D.
- Who is gaining or loosing share?
- What do they do well?
- Compare your resources to theirs.
- What are the barriers to entry?
- What are your objectives and strategy?
- Any contingency plans?
- Short term and long term plans and goals?
- Review the Distribution Channels: Channel intermediaries, margin/ markup and selling prize, channel power.
- How can my product reach to the consumer?
- How much do the players in each distribution channel benefit?
- Who holds the power in each distribution channel available?
- Develop the Marketing Mix: Product Place Prize Promotion.
- Who is the target?
- Product: Fit whit other product? Differentiation, PLC, perception, packaging, features.
- Place: How best to reach the segment, channel mathematics, draw channels.
- Exclusive, selective, intensive distribution? Fit with products?
- Who has the power?
- How to motivate the channels?
- Price: What strategy? Skim, penetrate.
- Seek volume or profits?
- Perceived value, cost-plus pricing?
- How does price relate to the market, size, PLC, competition?
- Promotion: What is the buying process? How is money targeted to buying process goals?
- Push or pull strategy?
- Media type, measure, message.
- Dealer incentives.
- Consumer promos.
- Evaluate the Economics: Costs, break even, payment period.
- Break even in units.
- Fixed Cost/(Selling - Variable Cost). Include fixed marketing and promo costs in fixed costs of the plan!
- Relate break even to relevant market.
- What is the payback period? Exclude sunk costs!
- Are goals reasonable? Attainable?
- Revise and Extend: Tweak or discard your plans entirely.
Nice article.