New Venture Planning Workshop January 2003

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New Venture Planning WorkshopJanuary 2003

• Successful Marketing Planning and Guerilla
  Marketing Techniques

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What is Marketing?
Business function
Business philosophy
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Marketing as a business philosophy
The Marketing Concept
Organizing all the firms activities around the
goal of being profitable by satisfying the wants
and needs of its customers.
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Marketing as a business function

• Managing exchange relationships

Sellers----------------- Buyers
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New Ventures

• Limitations
• Resources
• Size
• Reputation
• Business expertise
• Short-term
• Mgmt by crisis

• Advantages
• Speed
• Flexibility
• Focus
• Closeness to customer
• Motivation
• Guerrilla weaponry

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Crucial Marketing Skills

• Ability to make decisions under uncertainty
• Ability to make plans and contingency plans
• Creativity and resourcefulness
• Evaluative thinking

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Marketing Overview

• Strategic Marketing Planning
• Segmentation, Targeting, Positioning
• Competitive Advantage
• Forecasting
• Marketing Research
• Marketing Management
• Evaluation/Assessment
• Control

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Why Do Marketing Planning?

• It takes a lot more than a good idea
• If a man can write a better book, preach a
  better sermon, or make a better mousetrap than
  his neighbor, though he builds his house in the
  woods the world will make a beaten path to his
  door. (attributed to Ralph Waldo Emerson)

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Why Do Marketing Planning?

• better by whose standardsproducer VS consumer
  orientation
• better is not enoughbetter at an acceptable
  price
• make a beaten pathnot likely the product must
  be available
• the world?only those who know about it and
  believe in it

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Marketing PlanningThink of a Road Map
A (start)
B (destination)
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Marketing PlanningThink of a Road Map
Macro-environment
A (mission statement)
Micro-environment
B (objectives)
Marketing execution
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Strategic Marketing
Your firm
Your buyers
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Marketing Planning/Situation Analysis

• Who are you trying to be?
• Mission statement
• Resources
• Where do you want to go?
• Financial/Personal
• Society
• Environment

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Marketing Planning/Situation Analysis, cont.

• Who are the other players?micro-environment
• Customers, segments
• Suppliers
• Competitors, direct and indirect
• Substitutes
• Colleagues/agents

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Marketing Planning/Situation Analysis, cont.

• Rules of the gameMacro-environment
• Economy
• Technology
• Regulation
• Socio-cultural factors

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SWOT Analysis

• Compare yourself with your competitors
• Strengths
• Weaknesses
• Consider yourself relative to the
  macro-environmental factors
• Opportunities
• Threats

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SWOT Analysis, cont.

• Strategic Matching
• strengths relevant to opportunities
• weaknesses relevant to threats

Environment is favorable Environment is unfavorable
Firm is relatively strong Focus Here Push forward Monitor Things may change
Firm is relatively weak Resist Know your limits Focus Here Defend
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Planned Marketing Execution

• Product/Position
• Pricing

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Planned Marketing Execution, cont.

• Channels
• Promotion

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Evaluation/Control

• Methods/metrics
• Key forecast points

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An Example Case
Young Canada Dock Builders
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YCDB Mission Statement?
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YCDB Resources?
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YCDB Objectives

• Financial/personal
• Social
• Environment

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YCDB Micro-environment

• Customers
• Suppliers
• Competitors
• Substitutes
• Other players

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YCDB Macro-Environment

• Economy (1987)
• Technology
• Regulation
• Socio-cultural

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YCDB SWOT

• Strengths
• Weaknesses
• Opportunities
• Threats

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YCDB Marketing Execution

• Product/Position
• Pricing

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YCDB Financial Estimation

• Average (high) selling price 4000
• Unit costs 2700
• Unit contribution 32.5 1300
• Fixed costs 50,000 overhead 10,000
  marketing 60,000
• Break even FC/(P-VC) 46.15 units
• Market share? 400,000 cottages replacement
  every 10 years-----40,000 docks per year
  approximately 1/3 in Quality segment (13,333).
• So, market share to break even 46/13,333 .35

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YCDB Financial Estimation

• Selling price (low, kit) 1200
• Lumber store margin 300
• Unit costs 650
• Unit contribution 28 250
• Breakeven 60,000/250 216.7 units
• Market share 216.7/26,667 .8

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YCDB Marketing Execution

• Channels
• Penetration?
• Exclusivity?
• Intermediaries

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YCDB Marketing Execution

• Promotion
• AIETA Goals (Awareness, Interest, Evaluation,
  Trial, Adoption)?
• Direct
• Advertising
• Trade show
• Selling

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YCDB Promotion Alternatives
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YCDB Evaluation/Control

• Progress toward strategic goals
• Metric
• Method
• Progress toward marketing objectives
• Metric
• Method
• Contingencies

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Guerrilla Marketing Toolbox

• Complimentary alliances
• PR
• Creative promotions
• Internet Marketing

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Complimentary Alliances

• Relationships with other businesses
• Aim is to build both
• Usually, cross-promotions
• Add value to customer relationships

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Forming Complimentary Alliances

• Identify firms that serve your customers
• Decide how you want the partnership to
  workdevelop a proposal
• Approach the decision maker
• Explain the mutual benefits anticipate
  objections
• Be sure the results are measurable

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Publicity

• Newsworthy
• Two-edged sword
• Requires work
• Press releases
• Headlinenews angle
• First paragraphbasic facts
• Second paragraphlively quote
• Third paragraphelaborate basic facts
• Fourth paragraphdetails
• Send it to your contacts (You DO have contacts!)

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Etc.

• Web Page UncertaintyWhat gives consumers
  confidence?
• E-mail considerations
• Add valuewin-win
• Put the consumer in control
• Creativity
• Advertising
• Creative
• Simple
• Driven by objectives

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Guerrilla Marketing Steps

1. Find the inherent drama in your offering.
2. Translate that drama into meaningful benefits.
3. State your benefits in a believable way.
4. Get the attention of your target.
5. Motivate your audience to do something.
6. Confirm the clarity of your action.
7. Test your finished product against your strategy.

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Carl Obermiller carlo_at_seattleu.edu