cec session 3

1
cec session 3

• craig milner
• GIO consultants

2
session 2 recap

• GOOD BUSINESS IDEA
• COMPATIBLE visualize
• DEFINED write about it/talk it
• FEASIBLE competitive advantage

3
session 2 recap

• REVENUE
• a monies received by a firm as a result of
  selling a good or service

4
session 2 recap

• MARKET POTENTIAL
• how big is the market?
• DEFINE it
• RESEARCH sales data
• ADJUST

5
session 2 recap contd

• PERCENT MARKET SHARE
• your slice of the pie
• calculate PERCENT
• ADJUST
• SALES potential x share
• ramp up

6
session 2 recap contd

• SWOT ANALYSIS
• SW internal
• OT external
• PEST political, economic, social, technological
• plus competitive

7
session 2 recap contd

• BUSINESS OBJECTIVE
• PLANNING SKILLS
• very useful skill
• THREE key elements
• overall objective (SMART)
• strategy
• detailed action steps

8
practice

• craig milner
• GIO consultants

9
corporate structures

• sole proprietorship
• partnership
• corporation

10
sole proprietorship

• advantages
• freedom
• simple (taxes)
• easy to start-up
• disadvantages
• unlimited liability
• lack of continuity
• difficult raising money

11
partnership

• advantages
• more people/more money
• easy to form
• tax benefits
• disadvantages
• unlimited liability
• lack of continuity
• conflict

12
corporations

• legal entity
• advantages
• limited liability
• raising money
• disadvantages
• cost
• double taxation

13
corporate governance

• shareholders
• board of directors
• senior managers

14
target market types

• CONSUMER market
• INDUSTRIAL market
• EXPORT market

15
target market

• cant be all things to all people
• distinguish yourself
• define your market .. specifically
• then target it

16
target market segmentation/poistioning

• categorize or SEGMENT
• go after or POSITION

17
target market segmentation

• geographic variables
• demographic variables
• psychological variables
• product use variables

18
practice

• craig milner
• GIO consultants

19
target market customer approach

• demographics
• lifestyle
• activities, interests, opinions
• purchase characteristics
• what, where, when, how much
• motivations
• why!!

20
target market sementation/postioning

• KEY to SUCCESS
• KNOW your CUSTOMER

21
product life cycle

• introduction
• growth
• maturity
• decline

22
practice

• craig milner
• GIO consultants

23
4Ps marketing mix

• product price place promotion
• key elements of a marketing plan
• intertwined

24
cec session 3

• craig milner
• GIO consultants

25
4Ps product

• basic design functionality
• packaging
• labelling
• identify
• promote
• describe
• brand

26
4Ps price

• how much do you charge?
• competition-based
• skimming
• penetration pricing
• cost-plus
• loss leader
• premium pricing

27
4Ps price

• things to think about
• time period
• trial
• image
• constant promotion
• matching
• psychological pricing
• can you command a price premium?

28
4Ps promotion

• most visible component
• four types
• advertising
• personal selling
• sales promotion
• public relations

29
practice

• craig milner
• GIO consultants

30
4Ps place

• into your customers hands
• customer versus consumer
• distribution channels

31
distribution

• direct
• intermediaries
• retailers
• wholesalers
• agent/brokers

32
distribution
producer
end user
AGT
WHL
RET
channel 1
consumer
33
distribution
producer
end user
AGT
WHL
RET
channel 1
consumer
channel 2
consumer
34
distribution
producer
end user
AGT
WHL
RET
channel 1
consumer
channel 2
consumer
channel 3
consumer
35
distribution
36
distribution

• every step adds cost
• think about value?
• multiple channels is OK
• but be careful

37
distribution issues

• inventory
• ownership
• loss/damage
• insurance

38
your homework

• target market position
• marketing plan 4Ps
• elevator sales pitch

39
cec session 3

• craig milner
• GIO consultants