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    Competative Advantage Business Plan

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    josh mukwenda

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    Competative Advantage Business Plan

    Uploaded by

    josh mukwenda
    109 views23 pages

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    competative advantage business plan

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    Copyright:

    © All Rights Reserved
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    Download as ppt, pdf, or txt
    109 views23 pages

    Competative Advantage Business Plan

    Uploaded by

    josh mukwenda

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 23

    Chapter

    Building competitive
    advantage

    McGraw-Hill/Irwin
    Entrepreneurship, 7/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
    Industry Analysis

     Provides sufficient knowledge of the environment that can affect


    marketing strategy decision making.
     Begins with broadest-based assessment.
     Proceeds to local market analysis.
     Information can be gathered through:
     Secondary sources.
     Market research initiatives.

     Benefits:
     Entrepreneur can understand competitors’ strengths and weaknesses.
     Swort analysis
    Competitor Analysis

     Document current strategies of primary competitors.


     Information can be utilized to formulate the market
    positioning strategy.
     This analysis:
     Enlightens entrepreneurs.
     Provides a solid basis for marketing decision making.
    Marketing Research
    for the New Venture
     Defining the purpose or objectives
     Make a list of the information that will be needed to
    prepare the marketing plan.
     Gathering data from secondary sources
     Trade magazines
     Newspaper articles
     Libraries

     Government agencies
     Internet
    Marketing Research
    for the New Venture )
     Gathering information from primary sources
     Data collection procedures: Observation, networking, interviewing,
    focus groups, and experimentation.
     Data collection instrument: Questionnaire.

     Analyzing and interpreting the results


     Can be hand-tabulated or entered on a computer.
     Results should be evaluated and interpreted in response to the
    research objectives
     Data can be cross-tabulated in order to provide more focused
    results.
    Understanding the Marketing Plan

     Marketing plan: written statement of marketing


    objectives, strategies, and activities to be followed in
    business plan.

     Designed to provide answers to three basic questions:


     Where have we been?
     Where do we want to go (in the short term)?
     How do we get there?
    Characteristics of the Marketing Plan

     A marketing plan should:


     Provide a strategy.
     Be based on facts/assumptions.
     Describe an organization for implementation.
     Provide for short-term and long-term continuity.
     Be simple and short.
     Be flexible.
     Specify criteria for control.
    The Marketing System

    External
    Environment
    Economy
    Culture
    Technology
    Demand
    Legal considerations
    Raw materials
    Competition
    Market- Marketing Purchase
    Entrepreneur strategies decisions
    planning
    decisions directed to of
    customers customers

    Internal
    environment
    Financial resources
    Suppliers
    Goals and objectives
    Management team
    Factors Affecting the Marketing System

     Marketing system: interacting internal and external factors


    that affect venture’s ability to provide goods and services
    to meet customer needs.
     Internal variables that affect the marketing plan:
     Financial resources
     Management team
     Suppliers

     Company mission
    The Marketing Mix

     Combination of product, price, promotion, and distribution


    and other marketing activities needed to meet marketing
    objectives.
    Marketing Mix Variable Critical Decisions
    Quality of components or materials, style, features, options,
    Product brand name, packaging, sizes, service availability, and
    warranties.
    Quality image, list price, quantity, discounts, allowances for
    Price quick payment, credit terms, and payment period.

    Use of wholesalers and/or retailers, type of wholesalers or


    Channels of distribution retailers, how many, length of channel, geographic coverage,
    inventory, and transportation.

    Media alternatives, message, media budget, role of personal


    Promotion selling, sales promotion (displays, coupons, etc.), and media
    interest in publicity.
    Steps in Preparing the Marketing Plan

     Define the business situation.


     Define the target market: opportunities and threats.
     Consider strengths and weaknesses.
     Establish goals and objectives.
     Define marketing strategy and action programs.
    Defining the Business Situation

     Situation analysis: describes past and present business


    achievements of new venture.
     Information for a new venture:
     Describe how the product or service was developed.
     Why it was developed.
     Information after a new venture has started up:
     Present market conditions.
     Performance of the company’s goods and services.
     Future opportunities or prospects.
    Defining the Target Market

     Target market: specific group of potential customers


    toward which venture aims its marketing plan.
     Knowledge of this provides a basis for determining the
    appropriate marketing action strategy.

     Market segmentation: process of dividing a market into


    definable and measurable groups for purposes of targeting
    marketing strategy.
     Allows the entrepreneur to more effectively respond to
    the needs of more homogeneous consumers.
    Process of Segmenting and Targeting (1 of 2)

     Decide on general market or industry to pursue.


     Divide market into smaller groups based on:
     Characteristics of the customer
    Geographic

    Demographic

    Psychographic

     Buying situation
    Desired benefits (e.g., product features)
    Usage (e.g., rate of use)
    Buying conditions
    Awareness of buying intention
    Process of Segmenting and Targeting (2 of 2)

     Select segment or segments to target.

     Developa marketing plan integrating


    product, price, distribution, and promotion.
    Establishing Goals and Objectives

     Establish realistic and specific goals and objectives.


     Marketing goals and objectives respond to the question:
    “Where do we want to go?”.
     Not all goals are quantifiable.
     Number of goals or objectives can be limited to between
    six and eight.
     Goals should represent key areas to ensure marketing
    success.
    Defining Marketing Strategy and Action
    Programs (1 of 2)
     Specific activities outlined to meet the venture’s business plan goals and
    objectives.

     Product or service
     May consider more than the physical characteristics.
     Packaging, brand name, price, warranty, image, service, delivery time, features,
    style, and even the Web site.
     Pricing
     Costs
     Margins or markups
     Competition
    Defining Marketing Strategy and Action
    Programs (2 of 2)
     Distribution
     Provides utility to the consumer.
     Must also be consistent with other marketing mix variables.

     Promotion
     Entrepreneur needs to inform potential consumers about the product’s availability
    or to educate the consumer
     Methods include: print, radio, or television, Internet, direct mail, trade magazines,
    or newspapers.
    Major Considerations in Channel Selection

     <<Insert Table 8.7>>


    Marketing Strategy: Consumer versus
    Business-to-Business Markets
     Business-to-business markets
     Selling of products or services to another business.
     Usually aims at selling a large volume in one transaction.
     Involves a more direct channel of distribution
     Use trade magazine advertising, direct sales, and trade shows.
     Consumer markets
     Involve sales to households for personal consumption.
     Marketing mix for both is the same.
     Techniques and strategies within the mix of these factors vary significantly.
    Budgeting and Implementation

     Budgeting
     Costs are reasonably clear if the entrepreneur has followed the procedure of
    detailing the strategy and action programs.
     If assumptions are necessary, they should be clearly stated.
     Useful in preparing the financial plan.
     Implementation
     The plan is meant to be a commitment by the entrepreneur to a specific strategy.
     Entrepreneur should ensure coordination and implementation of the plan.
    Monitoring the Progress of
    Marketing Actions (1 of 2)
     Involves tracking specific results of the marketing effort.
     Depends on specific goals and objectives outlined in the marketing plan.

     Entrepreneur should be prepared for contingencies.


     Minor adjustments in the plan occur normally.
     Significant changes indicate a poorly prepared plan.
    Monitoring the Progress of
    Marketing Actions (2 of 2)
     Weaknesses in market planning due to:

     Poor analysis of the market and competitive strategy.


     Unrealistic goals and objectives.
     Poor implementation of the outlined plan actions.
     Unforeseen hazards like weather or war.

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