Value Proposition, Business Plan, & Marketing Mix PDF

VALUE PROPOSITION, BUSINESS PLAN, & MARKETING MIX Marketing is everything you do to find customers VALUE PROPOSITION an...

VALUE PROPOSITION, BUSINESS PLAN, & MARKETING MIX Marketing is everything you do to find customers VALUE PROPOSITION and satisfy their needs while making profit VALUE – the importance of something V. OPERATIONAL/ORGANIZATIONAL PLAN VALUE PROPOSITION – why a customer should buy a Manpower, machinery, materials, & methods that product/service will help you to start your business ○ Major driver in customer purchase VI. FINANCIAL PLAN TAGLINES – eternal Starting capital to run the business SLOGANS – for campaigns & promotions How will you sustain such business in your daily TIPS IN MAKING AN EFFECTIVE VALUE PROPOSITION operations 1. Prepare a situation analysis Preparation of financial statements 2. Make your value proposition straight to the point, VII. APPENDIX simple, & specific Documentations 3. Highlight the value of your product or service References to mentors 4. Adapt the language of your market MARKETING MIX 5. Add credibility enhancing elements such as actual testimonials from customers, partners, and other MARKETING MIX stakeholders Refers to the set of actions, or tactics, that a 6. Differentiate your value proposition with your company uses to promote its brand or product in competitors the market The combination of marketing components that will BUSINESS PLAN maximize customer satisfaction and ensure profits I. EXECUTIVE SUMMARY CUSTOMERS – lifeblood of business Outline of your business idea SATISFACTION – meet customer expectations Need to complete all the other parts of the business DELIGHT – exceed expectations plan before doing the ES USES OF 7Ps MODEL Must be clear and organized because it is the first Conduct a situation analysis impression one gets on your business idea Set objectives II. STUDY BACKGROUND Conduct a strength, weakness, opportunity, & threat All business ideas are based on an idea & (SWOT) opportunity Come up with marketing strategies and tactics Concept of your business PRODUCT Business logo, vision, mission, objectives, & VP BUSINESS LOGO – identity; symbolizes the business A product is any physical good, service, or idea that a. Monogram – letter marks; letters usually is created by an entrepreneur or an innovator in brand initials serving the needs of the customers and addressing b. Wordmarks – logotypes; font-based logo their existing problems. focused on the business name The product or service should not be created before c. Pictorial marks – brand mark/logo symbols finding the right customers, because this is very d. Abstract mark – abstract geometric form risky and the resources and time might be put to e. Mascots – illustrated character waste. f. Combination mark THREE-LEVEL CONCEPT OF PRODUCTS/SERVICES g. Emblem – font inside a symbol; like badges LEVEL 1: Core Benefits (basic features) VISION – where you want to be. Communicates - Major factors why a customer buys both the purpose and values of your business. LEVEL 2: Physical Characteristics (Expected features) About your future - Better packaging for products or a better physical MISSION – how you will get to where you want to be. evidence or customer experience for services Purpose & primary objectives related to your LEVEL 3: Augmented benefits (Unexpected features) customer needs and team value - Additional benefits III. MACROENVIRONMENTAL & MICROMARKET ANALYSIS PRICE MACRO – STEEPLED analysis MICRO – consumer preferences, interests, and Peso value that the entrepreneur assigns to a perceptions; competitors; and location certain product or service after considering its costs, IV. MARKETING PLAN  competition, objectives, positioning, and target Make the product conveniently available to the market. target market consistent with their purchasing The only P that generates income pattern PRICING STRATEGIES DISTRIBUTION CHANNEL – a medium by which 1. Bundling goods and services are made available to the Customer buys two or more products or services consumers for use or consumption together for one price instead of buying items MAIN CATEGORIES OF MARKETING INTERMEDIARIES separately for individual prices. 1. Wholesaling intermediaries E.X.: 3 in 1 coffee for PHP 8.00, manicure and 2. Retailers pedicure for PHP 150.00 FUNCTION OF MARKETING INTERMEDIARIES 2. Penetration pricing Buying, selling, sorting, storing, and transporting Attract customers to a new product or service by TYPES OF DISTRIBUTION CHANNEL offering a lower price initially but the entrepreneur 1. Direct marketing channel – has no middleman & will eventually increase the price once the desired intermediary levels market share is achieved. 2. Retailer marketing channel – has middle man & 1 Isn’t sustainable in the long run, however, and is intermediary level typically applied for a short time. 3. Wholesaler/retailer marketing channel – has 3. Skimming middleman & 2 intermediary levels Opposite of penetration pricing where prices are 4. Wholesaler/jobber/retailer marketing channel - initially high and then they are lowered to offer the has middleman & 3 intermediary levels product or service to a wider market and as the PROMOTION product becomes less and less popular. 4. Competitive pricing Presenting the products or services to the public & Benchmarking prices with competitors how these can address the public’s needs, wants, 5. Product line pricing problems, or desires Pricing different products/services within a parallel Primary target market → the main audience product array using varying price points PROMOTIONAL TOOLS 6. Psychological pricing 1. Advertising Considers the psychology & positioning of price in Communication that influences the behavior of a the market customer to choose the product/service over the E.X.: Using 99.99 instead of 100 competitors 7. Premium pricing Informing, educating, & familiarizing the public with Setting a very high price to reflect elitism & the product and service offerings superiority Building a trustworthy image 8. Optional pricing Increasing the sales Adding an extra product or service on top of the Forms: TV, radio, internet, mobile phones, print original to generate more revenue 2. Selling 9. Cost-based pricing The act of trading a product/service for a price Basis of markup is the cost of sales 3. Sales promotion 10. Cost plus pricing Short-term promotional gimmicks wherein Markup is based on a certain percentage of cost practical incentives & appealing activities are CLASSIFICATION OF COSTS incorporated to entice the customers to buy the VARIABLE/CONTROLLABLE COSTS – directly product or avail the service proportional to the number of products Sales discounts, discount coupons, free taste, manufactured or number of services performed raffles, premiums, reward cards, contests, games, (raw materials used) promo items, product or service bundles, trade fairs, FIXED/UNCONTROLLABLE COSTS – not directly exhibits proportional to the manufacturing of a product or 4. Public relations performance of service (cost of equipment, rental Image-building initiatives of the entrepreneur to cost, and utilities make the name of the business reputable to stakeholders, such as target customers, PLACE government agencies, business partners, media, Location or the medium of transaction and the public Covers the product distribution & the whole Press conference, launching events, strong media business logistics relations through press kits, social responsibility events (charity/community events), lobbying (good  relationship with govt.), web public relations (blogs, socmed, emails, word of mouth) PEOPLE Additional 3Ps; included in operational plan People play a vital role in servicing customers even the entrepreneur sells only physical goods. Employees have become a major influence in the customer’s buying behavior. Leadership skills, qualities, skills PACKAGING How it is presented Overall identification (look & feel) First element that the customers will see Includes the VP PROCESS Marketers began to realize the importance of the internal and external operations of the business to serve customers better. Step by step procedure / overall workflow FUNDAMENTALS OF BRAND MANAGEMENT 1. Brand refers to the identity of a company, of a product or a service, or of an entrepreneur - Gives credibility / trustworthiness 2. Brand is a symbol of promise or assurance from the entrepreneur that what it purports to the customer will happen 3. Brand management is the tangible & intangible elements of a brand BRANDING – process of integrating the strategies formed from the marketing mix to give identity to the product or service. BRAND NAME should be: unique, extendable, easy to remember, can describe the benefits, positive & inspiring, can be converted to other dialect/language, can describe a product strategy, can describe concrete qualities