Entrep Mind - Marketing 1

Agenda
1. Marketing-Orientated Business
2. Product Strategy
3. Customer Analysis
4. Competitor Analysis
5. Industry Analysis
2
Bicol University and Leuphana University of Luneberg │STEP – Student Training for Entrepreneurial Promotion
What Marketing involves
 Ascertain what consumers want and provide it to them at a profit.

 Meet the needs and wants of customers.
 Create a good exchange environment.
 Creates time, place and possession utilities.
Bicol University and Leuphana University of Luneberg │STEP – Student Training for Entrepreneurial Promotion 4
A Market-Oriented Business
 Identify the customers (markets) you want or intend to serve.

 Determine the customers’ needs and wants.
 Develop products to meet the needs of the customers: Deliver the desired
satisfaction with a higher quality or lower price than competitors.
 Match your capabilities with customer needs and wants.
 Continuously monitor your customers (markets).
Session Marketing : Take decision on other marketing

mix elements: product, price, promotion, place.
5
The Product Strategy
 Design a product that is either:

 Unique
 Of high quality
 Low-priced
 Or satisfies other customers’ needs.
 Shift from one product to another, or modify your products to capture better marketing
opportunities.
 Keep quality of product / service to acceptable standards or as per the needs of the
customers.
 Test your product (and its price) on the market before you launch it.
How to achieve Product Quality
 Understand the customer’s perception of quality.

 Work on the mindset towards a quality orientation.
 Use raw material with good quality.
 Use improved and efficient production process / technology.
 Proper finishing.
 Good storage facilities - both for raw material and finished products.
 Use skilled labor.
Key Product Decisions
 Plan and develop the right product(s) or service(s) required by the customer at the right price.
 Determine the range of products / services (product width and depth).
 Keep in mind the product features that are most important for the customers.
 Be mindful of the product quality.
 Think of packaging and labeling your products.
 Think of product maintenance (where necessary).
 Compare your product with the competitors’.
Exercise: Product / Service Description –
The Product or Service
AWS
Complete Action Working Sheet page 19.
03
 What is your product / service about?
• What are the most important functions and features of your product / service?
• What customer need does your product satisfy? What demands do you meet?
• For who is the product or service conceptualized? Who is your target market? Who is the ultimate user
(consumer) of your product?
Unique, Special and Original
AWS Complete Action Working Sheet page 19.

03
 What is unique, special and original about the product / service (what is your competitive
advantage)?
 Highlight the add-on value for the customer and the unmet needs or wants your product /
service fulfills.
 Describe how your product differs from competitors. Competitive advantages can be:
• An all new product or service
• Lowest price • Technically most advanced
• Highest quality • More useful features
• Fastest delivery • Saves time or money; more effective
10
Important Product / Service
Considerations
AWS Complete Action Working Sheet page 19-20.
03
 Are there any weak points regarding your product (e.g.,

special delivery, easy to copy by competitors, etc.)?
 If yes, describe these aspects and explain how you are going to deal with
them.
The Customer Analysis
 Who are your customers?

 What are their needs and wants? What product attributes are most important for them
(Quality? Price? Design? Or something completely different?)
 What does your product do for the customers?
 What do they buy? Why, how, when and from where do they buy?
 Are the buyers the ultimate users of the products?
 How much do they pay for similar / competing products?
 How much are they willing to pay for your product?
 Where are they located?
13
14
How do you segment customers
(markets)?
 Segmentation according to Demography

 According to age e.g. the young, the youths (middle aged) and the old
 According to income levels e.g. the poor, the middle income earners and the rich
 According to gender e.g. the male and the female customers
 According to education levels e.g. those who have attained higher level, middle level or no
formal education at all
 Segmentation according to geography

 Those in urban as opposed to those in rural areas
 According to their physical locations
The Target Market
 Know who you intend to sell to (to be able to plan for them
better).
 Select specific target markets or clients that the business can

efficiently respond to their needs and purchasing power.
 Concentrate more on those markets that bring in the biggest

percentage of sales and profits (Pareto’s 80:20 rule).
17
Exercise: Customer Analysis –
Primary Target Customers
AWS
03
Who is your primary target customer?

 Do a segmentation and describe your target group in detail. If your primary is the end consumer
use the following attributes:
• Age, gender, location, income level, social class
• Occupation, education, other (specific to your industry)
 State precisely how, when, why & where these customers buy.
 If your customer is a business customer provide details about industry location, size of firm, quality,
technology, and price preferences. 18
Exercise: Customer Analysis –
Customer Needs Assessment
AWS
03
 What are the customers’ needs and wants?
• List the product or service attributes or features that are

most important for your customers when they make the
purchase decision.
• Important attributes can be: Quality, price, design, branding,
warranties, follow-up service …
19
Competitor Analysis
 Who are your competitors?
 How do they conduct their business – what are their products

or services?
 How good are their products, prices, promotional and

distribution activities?
 What are their strengths? What are their weaknesses?

 What are their sales levels?
Positioning:
Yourself compared to your competitors
 Plan the position you wish to occupy in the minds of the customer.
 Create a favorable position of your enterprise as well as your products on

the minds of the customers.
 The first steps to identify a favorable position are:

 Pick product / service attributes that are important for your customers (e.g., a high quality
product, a low price, etc.)
 Cross the attributes with your competitors and estimate your and your competitors’ performance
on each attribute.
Positioning strategy is also the basis for marketing

mix decisions (Session Marketing II). 21
Designing a Marketing Strategy
 Draw a good plan to market your products:

 How the market will be segmented
 The target market(s)
 Positioning
 The marketing mix programme / strategies (Marketing II)
 Look at the competitors strategies.

 Strategically stress your strengths over those of the competitor. Capitalize
on the competitors weaknesses to win customers.
 You may not be good in all areas, so capitalize on those areas where you
are really good. 22
Exercise: Competitor Analysis –
Direct and Indirect Competitors
03
 Who is directly and indirectly competing with you?
 Provide details of your direct competitors – that is competitors who offer the
same product or service.
 Give their names, products / services with and their special features (what
makes them unique?), prices, location, promotion strategies, information about
their revenues and profits (if available).
 Give the same details for indirect competitors – that is competitors that offer
substitute products or services.
 Who of your direct and indirect competitors is most serious / threatening and why?
23
Competitor Profile Matrix
03
 Cross all the attributes you listed for the customer needs assessment with key
competitors that offer similar products or services and give an honest assessment
from 1 (very weak) to 5 (very strong) of the performance of each company
regarding each attribute.
My Company <Competitor 1> <Competitor 2> <Competitor 3>

<Attribute 1> 3 5 2 1
<Attribute 2>
<Attribute 3>
<…>
24
Learning from Competitors
AWS
03
 Competitor Profile Matrix Summary: What do you learn from your
competitor profile matrix?
 The summary should be a tool for identifying your strengths and your
weaknesses on the market that you will enter with your business.
My competitive
Their strengths over Their weaknesses over
Main Competitor advantage over
my business my business
competitor
<Competitor 1>
<Competitor 2>
<…> 25
The Industry Analysis
… helps you to understand forces and developments

of your industry.
The Industry Analysis: Understanding
forces and developments of your industry
 What is the exact industry you want to enter?

 What is the market size regarding sales of this industry?
 Is the market growing or declining? What are the trends and
possible future developments in this industry?
 What are the economic, socio-cultural, political, legal /
regulatory and technology factors affecting this industry?
Exercise: Industry Analysis

03
 Describe the industry your business enters: Is the market saturated with many
competitors? Is it an emerging market? What is the size of the market
regarding revenues?
 Describe whether the customer needs are likely to change in the short- or
long-term.
 Describe economic, socio-cultural, political, legal / regulatory and / or

technology factors that might affect the industry.
Back-up your statements with statistics or statements from

reliable sources! 28
Summary: The Purpose of today’s Session
 What did we achieve with the session?

 We specified our target market and identified needs and wants of these customers.
 We designed a product or service that matches our customers’ needs and wants and that has a specific advantage over our
competitors.
 We analyzed the industry our business enters.
 Why is this important for your business?

 Identifying the target market and the specific needs and wants of these customers guarantees that we design a product or
service that sells.
 How did we achieve this?

 We sub-divided the general market and identify our target market.
 We conducted a customer needs assessment.
 We identified distinct features of our product or service.
 We conducted a competitor analysis and develop a product or service that has a specific advantage over products or
services from our competitors.
Agenda
1. Marketing Strategy & Marketing Mix

Product Strategy
Pricing Strategy
Distribution Strategy
Promotion Strategy
2. Relationship Marketing
Marketing Strategy
 To succeed as an entrepreneur, you need to design a

good marketing strategy. This means:
 Developing a product that appeals to the customer,
 Charging prices that fit the consumer, and
 Promoting and distributing the product effectively.
This plan is called the Marketing Mix, also commonly

known as the 4 P’s (product, price, place & promotion)
for goods.
32
Marketing Mix
 A combination of the 4Ps ensures that your product will

conveniently get to the customer at the right time and place at
affordable price, and that the customer is informed about the
availability of the product as well as convincing customers to buy
the product.
Product Strategy
 As an entrepreneur, your task is to plan and develop the right product required by the
customer.
 Make decisions on the product:

 Mix: total number of product lines that a company offers to its customers
 Range: a set of variations of the same product platform that appeal to different market segments
 Characteristics / features
 Packaging
 Branding
 Labelling etc.
34
Exercises: Marketing Plan – Product
Strategy
AWS
03
 How do you differentiate your product from your

competitors?
 Do you plan do offer any additional features such as technical support,
warranties, product upgrades, etc.?
 State or draw precisely how your package and brand, brand mark and brand
name would look like.
Pricing Strategy
 As an entrepreneur you need to decide on the price to charge for the product bearing in
mind the consequences of different price levels.
 Consider the following:
 What price to charge for your product?
 How does your price compare to that of competitors?
 Will this price will give you a profit?
 Will your customers afford the price?
 Do you plan to give discounts?
 What are the terms of payment?
 Will you charge the same price for all the customer segments?
36
Exercise: Marketing Plan – Pricing Strategy
AWS
03
 At what price will you offer your product or service in comparison to your
competitors?
 How important is the price for your target group? Is your target group putting a stronger
focus on service or quality? Refer to your target group described in AWS 01.
 What are your competitors charging?
 State the price level for your product or service and explain the reasoning for your price
level.
 If you segmented your markets: Do you intend to charge different prices across different
customer groups (price discrimination)?
 If you sell on credit: Who will get credit? How you are going to check credit worthiness? Will
you offer prompt payment discounts, follow-up procedures if credit is still due?
37
Distribution Strategy
 You need to carefully choose outlets to deliver the product to the

customers. The chosen channels will affect the sale of your product.
 You will need to answer the following questions:
 How will the products be moved to the customer?
 Will you sell to urban or rural areas or both?
 Will you sell beyond your geographical region?
 Where will you locate the business premises?
 What transport and logistics facilities will you need?
 What will be the cost of moving the goods from one point to another?
38
Exercise: Marketing Plan –
Distribution and Sales Strategy
AWS
03
 How will the product or service reach the customers?

 How are customers currently acquiring the product?
 Which means will you use to distribute your product (e.g., via retail outlets,
wholesalers, sales force, direct via web, mail order, or catalog, independent
representatives, etc.)?
 How you are going to access the channels and means you would like to use?
39
Promotion Strategy
 As an entrepreneur you need to decide on what media to

use and what inducements to make to inform and attract
customers.
 Decide on:
 How will you make your product known to your customers?
 How will you persuade / encourage customers to buy your product?
 Which media will you use to communicate your products and what will it cost you?
 How will you chose between the media?
Promotion Mix
Personal Selling Cinema
Telemarketing Point of sales displays
Direct mail Packaging
Trade fairs and exhibitions Word of mouth / referrals
Commercial television Posters
Newspapers and magazines Flyers
Radio Business cards 41

How to promote good Word of Mouth
 Provide an excellent product / service.

 Encourage your customers to spread information about the good
qualities of your product / service.
 Give incentives to those customers that bring you new customers,
e.g. a free product or discount for every new customer brought in.
Other effective and inexpensive
Marketing Methods
 Combine resources with other businessmen to collectively market the

product.
 Adopt the use of technologies such as telephones, internet etc. for easy
communication with your customers.
 Join the relevant Chambers of Commerce or trade association of your
industry.
 Use networks or super-connectors.
 Make news.
The Promotional Message – AIDA
Grab Attention
Excite Interest
Create Desire
Promote Action
44
Exercise: Marketing Plan –
Promotion Strategy
AWS
03
What can be a campaign that is not costly but customers will
respond to?
 Describe the avenues you are going to use to advertise and promote your
product or service.
 Think about means that are most effective to reach your primary target group.
Think also about small means such as a logo, business cards, brochures, flyers,
and particularly word-of-mouth.
 Mention the associated costs.
45
Relationship Marketing
 Note that customer acquisition and retention are equally important.

 To develop and maintain relationships with customers:
 Recognize the customer as the focal point of business operations.
 Everyone in the business should be committed to the customer.
 Adapt to the changing needs of the customer.
 Create and maintain relationships with customers to retain them.
 Get feedback regarding customer satisfaction and what they think
should be done.
Customer satisfaction is the key to customer

retention and building strong customer base 46
Customer Feedback
 It provides you with insight you can use to improve your

business, products and / or customer satisfaction.
 How will you get feedback from customers?
 Suggestion Box
 Talk to them as they come in
 Questionnaire
Getting Customer Feedback:
Using Questionnaires
 Using the questionnaire, you will collect, analyze and make sense
out of the data.
For example, if you found out that most paper cups are
bought by females during lunch time, what does it mean
for your marketing strategy?
Information
you need to capture in the questionnaire
 Personal Data
 Age
 Gender
 Market Information
 How often do you buy paper cups?
 What is important when you buy cups? (price, durability, handle, etc.)
 Product Information
 What kind of cups do you buy (paper, plastic, ceramic)?
 What size do you prefer (small, medium, large)?
 Competitor Information
 What particular brands do you buy (different brands for paper cups)?
 Why do you buy these brands?
 How satisfied are you with…? (different brands for paper cups)
49
Benefits of Customer Retention
 Positive Word of Mouth

 Reduced cost of service delivery
Remember: Most dissatisfied customers don’t

complain, they just GO.
50
Why Customer leave
Customer
Service
Dissatisfaction
Service
Dissatisfaction
Other
What makes Customers crazy / mad?
Lack of attention / being Poor appearance e.g. sloppy,

ignored untidy, strong breath, smoking
Bad language, rudeness Arrogance, disrespectfulness
Lack of response Denial of responsibility
Lack of trust Poor presentation
Dishonesty and insincerity Time wasting
Lack of knowledge
52
Enhancing Customer Retention
 Keep a record of your customers.

 Try to establish their needs and expectations.
 Aim to provide high quality products or services.
 Make it easy for customers to complain and try to resolve the
matter as soon possible.
 Apologize when in the wrong.
 Build trust between you and the customers.
 Be polite, courteous and respectful to customers.
How to retain Customers:
An Ethical Approach
 Have a duty toward your customers.

 Do not misrepresent.
 Do not take advantage of customers.
 Be fair to customers and other stake holders.
 Avoid deceptive advertising.
 Avoid sale of expired products.
 Avoid taking advantage of minors.
54
Consequences of unethical Marketing
• Litigation
• Loss of market share
• Incurring a bad reputation
• Hostile employee relations
• Government regulation and restrictions
Summary: The purpose of today’s Session
 What did we achieve with the session?

 Designed a marketing strategy for our group business.
 Designed a customer care strategy for our group business
 Why is this important for your business?

 It helped us position our product in the market.
 It enabled our customers to know about our product and how to access it.
 It ensured that our customers are satisfied
 How did we achieve this?

 By deciding on a pricing strategy for our group business.
 By deciding on a distribution strategy for our group business.
 By deciding on a promotion strategy for our group business.
 By designing a customer survey.
56
Take-Home Assignment
 Action Working Sheet 03 – Product Description

 Action Working Sheet 03 – Customer Analysis
 Action Working Sheet 03 – Competitor Analysis
 Action Working Sheet 03 – Industry Analysis
 Action Working Sheet 03 – Marketing Plan
Discuss and identify needs in the market, business opportunities,
and potential customers. Analyze the industry. Come up with a
plan to bring your business to your customers.
57
Definitions
Term Definition
Marketing The action or business of promoting and selling products or services, including market research
and advertising.
Marketing-oriented A business approach or philosophy that focuses on identifying and meeting the stated or hidden
Business needs or wants of customers.
Competitive A condition or circumstance that puts a company in a favorable or superior business position.
Advantage
Emerging Market Emerging markets, also known as emerging economies or developing countries, are nations that
are investing in more productive capacity.
Market Saturation Situation in which no more of a product or service can be sold because there are no more possible
customers.
Need Circumstances in which something is necessary; necessity.
58
Definitions
Term Definition
Pareto’s 80/20 20 percent of your activities produce 80 percent of your financial rewards.
principle
Product An article or substance that is manufactured or refined for sale.
Target Market A particular market segment at which a marketing campaign is focused.
Want A desire for something.
Definitions
Term Definition
Relationship The activity of building good relationships with customers so that they continue to buy a
Marketing company's products or services over a long period of time.
Customer
Tool used to find out the best way to satisfy your customers, to find ways to improve your
Feedback
product, and identify customers who really love your product.
Questionnaire
Customer
Feedback provided to a business by those who use its products or services.
Feedback
This presentation of the Student Training for Entrepreneurial
Promotion and its content is copyright of the STEP Consortium.
Any content may not be used, sold, licensed, transferred,
copied, distributed or reproduced in whole or in part in any
manner or in or on any media to any person without the prior
written authorization of the STEP Consortium.
STEP
Student Training for Entrepreneurial Promotion
61

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Agenda

 Ascertain what consumers want and provide it to them at a profit.

 Identify the customers (markets) you want or intend to serve.

Session Marketing : Take decision on other marketing

 Design a product that is either:

 Or satisfies other customers’ needs.

 Understand the customer’s perception of quality.

 Use improved and efficient production process / technology.

 Use skilled labor.

 Determine the range of products / services (product width and depth).

 Be mindful of the product quality.

 Think of packaging and labeling your products.

 Think of product maintenance (where necessary).

 Compare your product with the competitors’.

 What is your product / service about?

(consumer) of your product?

AWS Complete Action Working Sheet page 19.

 Are there any weak points regarding your product (e.g.,

 Who are your customers?

 Segmentation according to Demography

 According to gender e.g. the male and the female customers

 Segmentation according to geography

 According to their physical locations

 Select specific target markets or clients that the business can

 Concentrate more on those markets that bring in the biggest

Who is your primary target customer?

• Age, gender, location, income level, social class

• Occupation, education, other (specific to your industry)

 What are the customers’ needs and wants?

• List the product or service attributes or features that are

 Who are your competitors?

 How do they conduct their business – what are their products

 How good are their products, prices, promotional and

 What are their strengths? What are their weaknesses?

 Create a favorable position of your enterprise as well as your products on

 The first steps to identify a favorable position are:

Positioning strategy is also the basis for marketing

 Draw a good plan to market your products:

 Look at the competitors strategies.

 Who is directly and indirectly competing with you?

My Company <Competitor 1> <Competitor 2> <Competitor 3>

… helps you to understand forces and developments

 What is the exact industry you want to enter?

AWS Complete Action Working Sheet page 25.

 Describe economic, socio-cultural, political, legal / regulatory and / or

Back-up your statements with statistics or statements from

 What did we achieve with the session?

 Why is this important for your business?

 How did we achieve this?

1. Marketing Strategy & Marketing Mix

 To succeed as an entrepreneur, you need to design a

 Charging prices that fit the consumer, and

 Promoting and distributing the product effectively.

This plan is called the Marketing Mix, also commonly

 A combination of the 4Ps ensures that your product will

 Make decisions on the product:

 How do you differentiate your product from your

 You need to carefully choose outlets to deliver the product to the

 Will you sell to urban or rural areas or both?

 Will you sell beyond your geographical region?

 Where will you locate the business premises?

 What transport and logistics facilities will you need?

 How will the product or service reach the customers?