VENTURE NEW MANAGEMENT
AGENDA FIVE
WRITE A MARKET PLAN
Group Meeting
Group Meeting
Market Data Presentation of Data
Next week:
Discussions/ Business Plan
INTRO:
I: Sorry I wrote you a long letter. I didnt have time for a short one
N: Taking all the information and summarize for the Investor to be in seek with
Marketing Objectives, Strategy and Action Plan
T: Agenda Go over the Market Plan
R:
Quiz #1
hour presentations
1 hour of Lecture on Market Plan - the Four points/Research
meeting for presentation next week (Research)
O:
Learn how to write a winning Market Plan
Lecture
MARKETING PLAN (Chapter 4 p. 104)
4 concepts need to be on your Market Plan:
1.
2.
3.
4.
Analyze the Environment situation / market opportunity
Develop Marketing Objective
Formulate Marketing Strategy
Create an Action Plan
1. Analyze the Environment situation / market opportunity
1
Are
your
products/services
or
product/service lines?
Description:
Despite unique features and attributes for each Product and Services
What is the target market?
Product life-cycle
Demonstrate evidence of need and problems solved
Why hasnt need been filled?
Need
Benefits
What are the benefits to users
How is it better than alternatives or substitutes
Pricing Model
What is the price (pricing table if necessary)
How much will it cost?
How does it compare with competitors P/S
Current Stage Development
Where the P/S stands now
What else needs to be done and how much $
R&D activities (present and future)
Future Plans and Development
Follow-on products or upsells
New markets or expansion opportunities?
2
Intellectual Property
What IP does the product/service have
Who owns the IP?
Are there any potential limitations/litigation
Other
Images, diagrams or screenshots
Etc.
B. What is the dollar size of your markets?
Note: use the Chain Ratio Method estimate Market size
Demographics
Geographics
Psychographics
Geo/Demo/Phycho-graphics
Total Population
Total Adult
North East
Gender- Female
Income - $75,000 Plus
Physically Active
Percent of Polulation
100%
67/5%
25.0%
51.0%
19.6%
40.0%
Target Market Size
289,354,000
195,192,000
48,798,000
24,887,000
4,878,000
1,951,200
Other Data:
% that purchase expensive shoes (over $100): 40%
Average number of purchases per year: $5
Average Purhase price: $150
$1,951,200 * .40 * 5 * 150 = $585.4 Million Market
Mapquest Method to estimate market size
MAP WITH CIRCLES (5 MILES, 10 MILES)
Industry Analysis
o (Trends, Growth Patterns, Five Force Analysis)
C. What is your sales and distribution setup?
3
Target Market
D. What geographic area do you sell to?
Target Describe market
E. your audience in terms of population, demographics, income levels and
so on.
Market Analysis
o (Market Overview trends, growth, target market (size)
o Buying Behavior
F. What competitors exist in this marketplace?
Competitive Analysis
Overview
Current Competitive landscape
How competitive is the industry?
How will company capture the competitions share of the market?
Identify the service, quality and cost leaders in the area
Direct & Indirect Competitors
Identify most important direct and indirect competitors
Strengthe and weaknesses of each
What is the market share of the market?
What are the product/services features
What are the revenues, number of employees, location, ADR, OR
Provide a Chart
Competitor Reaction
What is the importance of the target market to the competitor?
What are their likely responses?
How quick of a response
How will you mitigate comp. Reactions
G. Historically, how well have your products sold?
4
Current situation Opportunities
2. Develop Marketing Objective
State for each target market in terms of sales, profit contribution and other
qualitative aims, such as building an image
o Market Performance Objectives (sales and profits)
o Marketing Support Objectives (tasks that precede final performance
outcomes such as building customer awareness and engaging in
educational efforts.
Objectives Must be measurable
Worden Carefully to achieve that Image in the minds of Investors
3. Formulate Marketing Strategy
Marketing Strategy Overview
How will you create awareness within customers?
Identify specific marketing philosophies and strategies
Market penetration strategy
Positioning
Identify the unique selling proposition (does it satisfy a need?)
Describe the companys image and positioning statement
What are the costs? Media and production
% target market reach and frequencies
PR and Promotions
Describe overall strategy, goals and objectives
What are the material and other costs?
Outsource or in-house
4. Create an Action Plan
Sales Strategy Overview
Identify specific sales philosophies and strategies
How will you acquire customers?
What are the distribution channels?
Are relationships established? Whom?
Sales Force
How many people involved in sales?
In-house or outsource? How much?
Special training or expertise needed?
Sales Process Description
How will the customer pay?
How will customer receive services
5
What is the typical cycle/season
After sales support?
Describe discounts, guarantees, warrantees, etc.
Sales Projections
Describe major assumptions
What is sales growth rate and how it is determined
6