The Direction of the Plan

IMG_0344.JPGHave you ever taken a cruise? While on that cruise, can you remember when the boat backed away from its dock and how it felt? If the mood was right, and you were in Cozumel, lol, than you can remember feeling a little dizzy and off balance as the ship backed up and turned towards its direction.

However, you can probably also remember what it felt like when the ship finally locked in on its direction, and then how it felt to sail off smoothly. Now take that experience and apply it to setting the direction of your marketing plan. After backing up and analyzing the situation; turning around by understanding your targets and markets, as well as your purpose, you should be ready to sail off smoothly, as you now have the keys to set the direction of your marketing plan.

Setting the direction of your marketing plan can at first seem daunting and overwhelming. However, with good background research and work, you will quickly find that you are setting a direction that aligns and supports your marketing goals and long-term company objectives is easier than it seems..photo 1

The first question(s) you want to ask when setting your plan’s direction are: Where do we want to be in the future? How will we get there? After understanding your target customers and markets, these two questions should be easy to answer and for the most part involve an overall expectation of growth. That’s right, I said all of that to say-you want your marketing plan to be set in growth direction. Yeah buddy, growth is when the ink turns from red to black, and we all want that! When it comes to growth, there are 4 strategies that you can use to achieve it, and selecting the right one will determine whether or not you get there.

photo 2Growth Strategies:
*Market Penetration- Same product infused into the same market.
*Market Development- Same product infused into a new market.
*Product Development-New or enhanced products that are introduced to the same market.
*Diversification- Completely new product in an entirely new market.                                       .

Of course there are non-growth strategies as well. They normally involve keeping with the same products in the same markets. In some cases, it works because its a matter of seeking the best profit from a existing market while maintaining or “holding on” to it.

Your selected growth strategy will help define your future marketing efforts. After choosing the strategy that best suits your company’s objectives, focus next on setting marketing objectives that will serve as benchmarks toward your long term organizational goals.

Thank you for reading, see you next post!

 

 

 

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Segmenting and Targeting…Who’s Your Market?

Target MarketNo two attitudes are alike!  Because of this, identifying and evaluating your market segments can guarantee that you will be successful in your marketing efforts.  As the markets shift and environments evolve, what used to be considered a mass market has now become a highly segmented, fragmented market.  Because of this, segment marketing will become more and more popular.

Market segmentation is the process of grouping customers within a marketing, according to their similar needs, wants, and attitudes.  It allows you to focus your resources on the most promising opportunities or the “target markets” you want to pursue, that will provide best ROI. Image

 

Segmentation:

  • Select the Market
  • Apply the Variables, ie…age, income, gender demographics
  • Assess and Select the promising Targets

On you select your targets:

  • Determine what markets to enter
  • Prioritize segments according to the resources needed to enter
  • Plan a coverage strategy

The purpose of segmentation is to form groups of customers who are similar enough in certain areas and sufficient enough to form a market.  See you next time as we discuss specific market variables, and how being specific as possible will contribute to your marketing success!

 

A Couple of Factors to Consider when Improving your Market Segments, Targets and Position!

Segment Market

Market segmentation is an essential element to any  business success. By identifying which customers your product or service will serve,  you create a value proposition that will meet your customers need, as well as communicate the product’s value.
Improving segmentation allows marketers to focus their resources toward the most promising opportunities.  Additionally, it will increase conversion rates; improves your return on investment, and reduces the waste of time and expenses.Segments are defined through a variety of variables.  The following are  few factors to consider as you improve your market segment, as well as define your target markets and customers.

Market segmentation

Segmentation improves marketing efficiency and effectiveness.  It allows companies to find new customers in new markets based on:

  1. Geography(Where do they live, work, or play)
  2. Industry Sector -(NAICS Code)
  3. Company size(1-10 Employees)
  4. Decision-maker roles and levels(Business Diversity Officer)
  5. Products or Services currently used-(IOS vs. Android users)

Behavioral segmentation

Behavioral segmentation are in some cases considered the best way to find a consumer group.  This is primarily due to the variables that allow marketers to analyze specific data and get information about consumers. When considering behavioral data, think about your customers:

  1. Pain – customers may have different problems, issues, fears, buying triggers and so on.  Understanding this can help you and your marketing in many ways, from what topics and messages you put in marketing headlines, direct mail copy,adverts, blog articles, and much more.
  2. Aspirations – what hopes, dreams, ambitions, change and goals do your potential buyers wish to satisfy? Identifying and engaging with the buyer helps align the marketing messages that you create and use to engage the customer and eventually close the sale.
  3. Information sources used – where do your buyers go to investigate the need that you can satisfy? They may go online to forums and discussion groups, to trade events and conferences, to advisers and trade associations, to company websites, or probably a mix of them all.

Market segmentation and Customer Definition

Defining your ‘ideal’ customer based on a mix of the customer  market and behavior segmentation can give you very useful customer data.

Identify Multiple NichesSegmentation

Identifying several niches, along with outline forecasts for revenue potential and marketing and sales expenditure will help you in short-listing the more attractive segments.

Understanding your Markets and Customers

Good Morning and welcome back!  This week, I will offer you a short video uploaded by Mastermind Solutions, LLC.   Remember last week we talked about researching and analyzing the current market situation, this brief video provides great information about understanding your markets and customers, which is the next step to developing a strong marketing plan.

I hope you found this short video helpful, see you next week when we talk about Segmentation, Targeting and Positioning.

Do you Have a 2014 Plan for Success?

Success ImageWelcome to PlansForSuccess, a blog applicable to the start-up, seasoned or just need to know entrepreneur.  The purpose of this blog is to take you on an in-depth journey into the world of Marketing Planning…Why?  Well, per Winston Churchill “failing to plan is planning to fail’…right?  Of course it is:)  No really,  according to the Small Business Administration,  “a sound and well thought-out marketing plan is an essential part of a firm’s ability to compete in today’s marketplace” http://www.sba.gov/content/value-marketing-plan.  However, failure to understand marketing, market planning or industry markets for that matter, can and does contribute to small business failure!  Did you know that about 75% (if not more) of the small businesses started today, will NOT be around in 2019.  That means you need to pull out that business plan and make sure it includes a detailed marketing plan that is sound and relevant,  if you expect to achieve measurable business growth in 2014 and beyond. Go ahead….I’ll wait:)

Before we begin, I need to first point out that there is a distinct difference in marketing planning and marketing. Although they are interconnected…which means one “should not, could not, would not” exist without each other,(well they can, but they shouldn’t)-they are  completely different activities.  In fact, it is my suggestion that not another penny is spent toward marketing activities until you sit down and write, type or Dragon:), a solid marketing plan…ok, ok, maybe that’s a little extreme, but you get the point.

In order to clarify the difference between the above activities, this week’s blog will focus primarily on defining the concepts and terms that will become pertinent to future discussions.

To get started, let’s become familiar with  a few term definitions below:

  • Marketing-The activity, set of institution’s, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
  • Marketing Objectives– Targets for performance in managing specific marketing relationships and activities.
  • Marketing Planning-The process of determining how to provide value to customers , the organization, and key stakeholders by researching and analyzing the market, the situation; developing and documenting marketing objectives, strategies, and programs; and implementing, evaluating, and controlling marketing activities to achieve the objectives.
  • Marketing Plan-A document that summarizes marketplace knowledge and the strategies and steps to be taken in achieving the objectives set by marketing managers for a particular period.           “The Marketing Plan Handbook 5th Edition”,  Marian Burk Wood

For the most part this blog series will follow A to Z the details of a marketing plan,  and through a series of Blog Post’s, Video’s, Tutorial’s, Link’s and on and on, it is my goal to aid you in understanding the intricate details of your firm’s marketing plan and why it’s essential…no it is imperative to the success of your business.

Thank you for tuning in this week, come back next week as I begin discussing in detail, the Purpose of a Marketing Plan.

Understanding Your Markets and Customer with a few Questions

Market ShareHello and welcome back!

I hope you found that short video on the fundamentals of understanding your “Markets and Customers”last week helpful,  this week I will list a series of questions that you should consider when you are searching for your Customer and your Market, so it basically adds on to the video that was presented last week.

Understanding your Market and Market Share:

  • How can your market be described in terms of product, customer need, and geographic location? For instance, a market can be described as “walking shoes for the active urban professional” (Of course, your description should be more in detail and the example being used here is a general breakdown of a market description) You would then break down each segment by describing the walking shoes-product; defining “active professional”, and geographically placing “urban”, i.e. Chicago, Illinois.
  • What is your industry definition and the activities defined within that industry?  If you are unfamiliar with your industry involves, look up your NAICS code via the Small Business Administration website at www.sba.gov.
  • What are the demographics, characteristics, behaviors, needs, and preferences related to your product or service in this market? Are the demographics changing? If so, how often? For example, does your “working class” market include a large share of individuals who plan on retiring within the next five years?
  • What is the market share for your product or service and how can you monitor your share?  Additionally, how is your market share changing compared to the market share of your competitor?
  • How can you use your marketing plan to make the most of the identified by market opportunities, while minimizing threats that are result of the market’s characteristics?

Understanding your Customers, B2B and B2C:

  • What are the customer needs that can be efficiently and profitably satisfied? Are your customers B2B or B2C?  Do they need a service like marketing, or a product like paper?
  • How do your customers perceive the value of products and services, similar to yours? Does your competitor offer a similar product at a better price?  For instance, have you ever had to replace an Apple I-Phone charger?
  • Who are your customers in each market, what are their buying habits? Additionally, you should always know who makes the buying decisions for your targets, in addition to how they prefer their sales pitches.  For instance, a baby-boomer might be fine with an hour long in person sales appointment; whereas, a millennial may prefer that you email the information first, and a sales contact will be made if they are interested.
  •  Are there any cultural practices or societal issues that should be taken into consideration?Market animation

Of course this is not a one size fits all list, it is just some of the essential areas that should be taken into consideration when you are researching your customer behavior and most profitable market.  Come back next week as I discuss “Plan Segmentation, Targeting and Positioning” and we get one step closer to finalizing your marketing plan!

What Does it Look Like? Understanding your Current Market Situation

Hello and welcome back! Now that we have went over the preliminary details of marketing planning and developing a marketing plan, now let’s get down to the nitty gritty.

Survey 5This week’s topic will focus solely on the 1st step to developing a marketing plan: “Analyzing the Current Market Situation.”  Before you can understand where you need to invest your marketing resources, you must, I repeat MUST understand your current market situation. Studying the environmental trends to stay aware of any political, economic, social-cultural, technological or ecological changes in advance, will help you avoid negative consequences of marketing decisions later.  Completing this process thoroughly, sets the foundation for a marketing plan that provides value to your stakeholders and makes a difference to your community.

To analyze your market for planning purposes, consider these factors:

Internal Factors-What are the internal factors within the organization, that could potentially positively or negatively affect the marketing plan and subsequently the organization?

  • Mission of the Organization
  • Human, Financial and Informational Resources
  • Product or Service Offering(s)
  • Previous Results (Sales and Marketing)
  • Business Relationships (Suppliers, Customers, Strategic Partners)
  • Key Success Factors

External Factors- What are the external factors outside the organization, that could potentially positively or negatively affect the marketing plan and subsequently the organization?

  • Political-Legal Trends
  • Economic Trends (Remember the 2008 Recession)
  • Social-Cultural Trends (I-phone user vs. Galaxy user)
  • Technological Trends (Mobile Ready Websites vs HTML)
  • Ecological Trends
  • Competitive Trends (What is my Competitors doing)
  • Industry Success Factors (What are the Key Success Factors for the Industry I am in)

Competitor Analysis-What is my competitor doing?Blog 5

  • Who are my competitors?
  • What are my competitor’s Key Success Factors?
  • What is my competitor’s market share, objectives, resources, and strengths and weaknesses?

Armed with this information, you will find out pertinent information about your current situation, this will help you either prepare or refine your SWOT, which we will discuss in detail next week!  Again, thank you for returning this week, I hope that this information is helpful to you as you revise your marketing plan for 2014 and beyond.  Please feel free to comment for suggestions or share with others!