I. Selecting a Market and Establishing a Position
1. Segmenting the Market
Study the industry in which the firm intends to compete and determine the different potential target markets in that industry. Markets can be segmented in many ways, such as by geography, demographic and psycho-graphics variables, etc.
2. Selecting a Target Market
3. Crafting a Unique Market Position
Establish a “position” within the target market that differentiates a firm from its competitors. A helpful technique is to develop a product attribute map, which illustrates a firm’s positioning strategy relative to its major rivals.
II. Branding
The set of attributes - positive or negative - that people associate with a company. The customer loyalty a company creates through its brand is one of its mot valuable assets. On a philosophical level, a firm must have meaning in its customers’ lives. On a more practical level, brands are built through advertising, public relations, sponsorship, support of social causes, social media or good performance.
III. The 4Ps of Marketing for New Ventures
Marketing mix is the set of controllable, tactical marketing tools that it uses to produce the response it wants in the target market.
1. Product
The good or service it offers to its target market. A product is something that takes on physical form and a service is an activity or benefit that is intangible and does not take on a physical form. The most important attributes of a product is that it adds value in the minds of its target customers.
2. Price
The amount of money consumers pay to buy a product. Methods to set products’ price:
a. Cost-Based Pricing
The list price is determined by adding a markup percentage to a product’s cost.
b. Value-Based Pricing
The list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.
3. Promotion
The activities the firm takes to communicate the merits of its product to its target market.
a. Advertising
Making people aware of a product in hopes of persuading them to buy it.
b. Public Relations
The effort to establish and maintain a company’s image with the public. Public relations is not paid for directly. The cost is the effort to network with journalist blog authors, and other people to try to interest them in saying or writing good things about the company and its products.
c. Social Media
Blogging and establishing a presence and connecting with customers and others through social networking sites. It help build a community around their products and services. The benefits include brand building, engaging customers, and getting lead generation and online sales.
d. Other Promotion-Related Activities
l Viral Marketing: Facilitates and encourages people to pass along a marketing message.
l Guerrilla Marketing: Low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.
IV. Sales Process and Related Issues
A firm’s sales process depicts the steps it goes through to identify prospects and close sales.
Step 1. Prospects for (or gather) sales leads
Step 2. Make the initial contact
Step 3. Qualify the lead
Step 4. Make the sales presentation
Step 5. Meet objections and concerns
Step 6. Close the sale
Step 7. Follow up
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