Developing a Marketing Plan

Marketing is discovering the needs and wants of prospective customers and satisfying them in a value exchange (products or services for money). Conversely, marketing is eliminating or reducing nonessential services by learning what customers do not need. A good marketing plan involves a situation analysis, product-market positioning, and a marketing program (product, price, promotion, and place).

Situation Analysis

The first step in a marketing plan is to describe the environment in which your product or service will compete.

Customer needs - problems, desires, wants.
Industry Trends - technology trends, social trends, legal/regulatory trends.
Market growth rate - growing, shrinking, flat.
Competition - direct competition and substitutes.
Qualities your customers value most about your product or service - product features, selection, convenience, service, reliability, availability, affordability.
Your current customer base - age, gender, income, neighborhood, industry segment.
Patterns or habits your customers and potential customers share - where they shop, what they read, watch, listen to.

A useful tool for situation analysis is a SWOT analysis. This identifies the favorable and unfavorable characteristics of your internal resources and capabilites that you can control and the external environment that you cannot control. The result is a list of strengths, weaknesses, opportunities and threats (SWOT) as shown in the following diagram.

strengths, weaknesses, opportunities and threats (SWOT)

Your internal factors include your brand name, reputation, current market share, price, cost structure, quality, service, financial position, patents, and expertise. External factors include competition, substitutes, social values, technological developments, and regulatory environment. Place each of these factors in either a favorable or unfavorable column. Beware of several common but erroneoous assumptions and attitudes:

Continued growth is assured.
There is no competitive substitute.
Dependence on decline of unit costs as output rises.
Preoccupation with product instead of customer.

Product-Market Positioning

Now that you know the environment and your SWOT, identify a target market where your product or service will have a competitive advantage or unique points of difference with respect to the competiton or substitutes. The originators of the product positioning concept, Jack Trout and Al Reis describe positioning as follows:

"... positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position (place) the product in the mind of the prospect."

Product posititoning is often developed using a two-axis grid where each axis is a unique product attribute (e.g. fuel economy versus price for cars). You will need to create such a grid and locate your product or service relative to your competition, substitutes or the rest of your product line.

Another decision to be made is whether to pursue a market specialization or product specialization strategy. For example, suppose you are a manufacturer of a non-powered mower for the city market. A market specialization strategy would be to offer the same product for additional markets (suburban or rural). A product specialization strategy would be to offer new products (powered walk-behind or powered riding) for the same market

The target market is often a niche or subset of a larger market. This niche market will usually have characteristics of high growth potential that is early in the products life cycle. Every product or service has a life cycle that can be broken into several segments: introduction (innovators and early adopters), growth, maturity and decline. You want to pick a market niche that is in the introduction or growth phase.

Product cycle introduction (innovators and early adopters), growth, maturity and decline

Marketing Program

This step establishes what is referred to as the "marketing mix". The previous steps were involved in receiving inbound signals from the market. The marketing program delivers outbound signals from the seller. There are four "P's" to the marketing mix.

Features
Brand name
Packaging
Service
Warranty

List price
Discounts
Allowances
Credit terms
Payment period

Advertising
Personal selling
Publicity

Outlets
Channels
Logistics
Stock level

In summary, understand the environment in which your product or service will compete, identify a target market where your product or service will have a competitive advantage, offer the right product at the right price, and make it easy to buy.

Reducing Operating Costs While Increasing Market Share: Getting Green-er Might be Right for You

Businesses around the world, both large and small, are taking advantage of the opportunities driven by the rising demand for green products. In the business-to-business sector, the growth in demand for green products is highly visible as buildings are going for green certification by the US Green Building Council. The designers and construction managers are looking for environmentally friendly materials to go into the buildings. Multi-nationals are also assessing their suppliers - determining which relationships will positively impact their reputations and ending those relationships which could damage their reputation. Environmentally responsible and socially conscious companies have a competitive advantage when selling to companies like Sony, Wal-Mart and Whole Foods, and government agencies. Consumer demand for green products is on the rise as well, from organic food to hybrid automobiles. The green revolution is partly defensive, and CEOs have come to understand that their brands are a precious equity. It isn't enough anymore to make good products to maintain trust in a brand. Consumers trust companies that are responsible citizens; they mistrust companies that appear selfish or wasteful. There is a balance to be struck between good environmental policy and the cost to implement such programs, but it appears that more industrial and commercial companies are finding ways to turn "green" policies into profitable business strategies.

ITAC is helping companies develop their environmental positions as part of their strategy to differentiate themselves from competitors. ITAC also finds opportunities to reduce costs and improve environmental performance by assessing their operations and products. Currently, low-cost pollution prevention assessments are available for firms in a range of industries, from metal finishing to food processing. Some of our assessments are specific, looking only at wastewater or solid waste recycling, while others are broader overall pollution prevention surveys. ITAC can also help reduce the costs of implementing resulting recommendations. There are grants available to reduce the costs of purchasing new equipment when it will reduce pollution while improving productivity.

For more information about improving the environmental performance at your firm - and turning your environmental performance into a competitive advantage - contact Stefanie Feldman at 212-442-2990

Free, Personalized Technical Advice Available at ITAC Online Solutions

Have you ever had a technical question, or needed research assistance, but you didn't know where to turn or who to ask? ITAC can provide the answers you need through ITAC Online Solutions. Online Solutions is a NO-COST technical assistance service that provides technical, business, research and information assistance quickly and easily. The Online Solutions service includes an on-line library of information with a database of technical business and engineering documents and resources. If you can't find exactly what you need in the library, Online Solutions includes a technical, marketing and problem-solving "Ask an Expert" hotline service that ITAC also provides FREE to our customers. Click here to find answers to your business questions at ITAC Online Solutions.

Upcoming Events

Lean Manufacturing 101 Workshop
Date: September 14, 2006, 8:30 am 4:30 pm
Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY
Cost: $95

Would you like to produce faster, better and less expensively with your existing resources? What if, in doing so, you could increase your sales, improve customer satisfaction and increase profitability? Principals and key managers at local manufacturing firms should attend this workshop to learn how Lean Manufacturing techniques help firms produce more with existing resources by eliminating non-value added activities. Workshop simulation exercises help participants experience first hand how Lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of Lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive.

For more information contact Mei Sit at 212-442-2990 or msit@itac.org

FastTrac
Date: September 20, 2006 to December 6, 2006
Cost: $1000 for technology businesses, $500 for manufacturers.

FastTracis a 12-session business development and growth program that teaches growing companies how to develop or improve their business model, acquire strategic partners, and position their company to attract capital and grow.

For more information, contact Franklin Madison at 212-442-2990 or fmadison@itac.org.

Green Construction Opportunities at FOCUS NYC
Date: Wednesday, September 27, 2006
Location: Gotham Hall, 1356 Broadway at 36th Street, NYC 9:00 am-7:00 pm

The Metropolitan New York Chapter of the Construction Specifications Institute will be hosting its Annual Trade Show & Education Conference Day, FOCUS NYC. This one-day event will include several hundred architects, engineers, designers and construction professionals including exhibits, sponsors, and supporters. Display booth opportunities are available at this "intimate show" for approximately $1,500 and there may be an opportunity for local manufacturers to have their products showcased at the Made in NYC table. Contact Stefanie Feldman at sfeldman@itac.org for more details.

About ITAC

ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive.

ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.

August 2006

ITAC and NYIRN Report Release: Manufacturing Green: Producing a Sustainable New York

Developing a Marketing Plan

Reducing Operating Costs While Increasing Market Share: Getting Green-er Might be Right for You

Free, Personalized Technical Advice Available at ITAC Online Solutions

Upcoming Events

About ITAC


	August 2006 ITAC and NYIRN Report Release: Manufacturing Green: Producing a Sustainable New York Developing a Marketing Plan Reducing Operating Costs While Increasing Market Share: Getting Green-er Might be Right for You Free, Personalized Technical Advice Available at ITAC Online Upcoming ITAC Events About ITAC ITAC and NYIRN Report Release: Manufacturing Green: Producing a Sustainable New York The construction of energy efficient, environmentally friendly "green" buildings in the New York Metropolitan area is creating exciting new opportunities for the City's manufacturers. The latest report by the New York Industrial Retention Network (NYIRN) and the Industrial & Technology Assistance Corporation (ITAC) examines the challenges local companies face when introducing new products. The report discusses existing resources to help companies and includes a blueprint for new assistance programs under development that will provide local manufacturers entrée into this market. To read the entire report and to view the "Guide for Manufacturers" on the green building market, go to www.MadeInNYC.org. While you are on the site, sign up! This will be the primary tool that NYRIN and ITAC will use to outreach to architects, developers, and contractors about the products available in New York City. For more information on how your business can use resources more efficiently, reduce the use of toxic materials, increase energy-efficiency and compete in the green building marketplace, call Stephanie Feldman at 212-442-2990.	Catherine Barton (center) of DFB Sales addresses a press conference announcing the release of Green Manufacturing: Producing a Sustainable NY. The report was jointly authored by ITAC and NYIRN. The NYC Council also announced their Green Manufacturing Initiative which is designed to spur an increase in green manufacturing in NYC, creating green collar jobs. (from left to right behind Barton, Hon. Jim Gennaro, Chair of the Environmental Committee, Sara Garretson, President of ITAC, Hon. David Weprin, Chair of the Finance Committee, Marty Dettling, US Green Building Council, Chair of NYC Chapter, Ed Ott, Central Labor Council)
	Developing a Marketing Plan Marketing is discovering the needs and wants of prospective customers and satisfying them in a value exchange (products or services for money). Conversely, marketing is eliminating or reducing nonessential services by learning what customers do not need. A good marketing plan involves a situation analysis, product-market positioning, and a marketing program (product, price, promotion, and place). Situation Analysis The first step in a marketing plan is to describe the environment in which your product or service will compete. Customer needs - problems, desires, wants. Industry Trends - technology trends, social trends, legal/regulatory trends. Market growth rate - growing, shrinking, flat. Competition - direct competition and substitutes. Qualities your customers value most about your product or service - product features, selection, convenience, service, reliability, availability, affordability. Your current customer base - age, gender, income, neighborhood, industry segment. Patterns or habits your customers and potential customers share - where they shop, what they read, watch, listen to. A useful tool for situation analysis is a SWOT analysis. This identifies the favorable and unfavorable characteristics of your internal resources and capabilites that you can control and the external environment that you cannot control. The result is a list of strengths, weaknesses, opportunities and threats (SWOT) as shown in the following diagram. Your internal factors include your brand name, reputation, current market share, price, cost structure, quality, service, financial position, patents, and expertise. External factors include competition, substitutes, social values, technological developments, and regulatory environment. Place each of these factors in either a favorable or unfavorable column. Beware of several common but erroneoous assumptions and attitudes: Continued growth is assured. There is no competitive substitute. Dependence on decline of unit costs as output rises. Preoccupation with product instead of customer. Product-Market Positioning Now that you know the environment and your SWOT, identify a target market where your product or service will have a competitive advantage or unique points of difference with respect to the competiton or substitutes. The originators of the product positioning concept, Jack Trout and Al Reis describe positioning as follows: "... positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position (place) the product in the mind of the prospect." Product posititoning is often developed using a two-axis grid where each axis is a unique product attribute (e.g. fuel economy versus price for cars). You will need to create such a grid and locate your product or service relative to your competition, substitutes or the rest of your product line. Another decision to be made is whether to pursue a market specialization or product specialization strategy. For example, suppose you are a manufacturer of a non-powered mower for the city market. A market specialization strategy would be to offer the same product for additional markets (suburban or rural). A product specialization strategy would be to offer new products (powered walk-behind or powered riding) for the same market The target market is often a niche or subset of a larger market. This niche market will usually have characteristics of high growth potential that is early in the products life cycle. Every product or service has a life cycle that can be broken into several segments: introduction (innovators and early adopters), growth, maturity and decline. You want to pick a market niche that is in the introduction or growth phase. Marketing Program This step establishes what is referred to as the "marketing mix". The previous steps were involved in receiving inbound signals from the market. The marketing program delivers outbound signals from the seller. There are four "P's" to the marketing mix. I: Product - A good, service, or idea to satisfy the consumer's needs. Features Brand name Packaging Service Warranty II: Price - What is exchanged for the product. List price Discounts Allowances Credit terms Payment period III: Promotion - A means of communication between the seller and buyer. Advertising Personal selling Publicity IV: Place - A means of getting the product into the consumer's hands. Outlets Channels Logistics Stock level In summary, understand the environment in which your product or service will compete, identify a target market where your product or service will have a competitive advantage, offer the right product at the right price, and make it easy to buy. Reducing Operating Costs While Increasing Market Share: Getting Green-er Might be Right for You Businesses around the world, both large and small, are taking advantage of the opportunities driven by the rising demand for green products. In the business-to-business sector, the growth in demand for green products is highly visible as buildings are going for green certification by the US Green Building Council. The designers and construction managers are looking for environmentally friendly materials to go into the buildings. Multi-nationals are also assessing their suppliers - determining which relationships will positively impact their reputations and ending those relationships which could damage their reputation. Environmentally responsible and socially conscious companies have a competitive advantage when selling to companies like Sony, Wal-Mart and Whole Foods, and government agencies. Consumer demand for green products is on the rise as well, from organic food to hybrid automobiles. The green revolution is partly defensive, and CEOs have come to understand that their brands are a precious equity. It isn't enough anymore to make good products to maintain trust in a brand. Consumers trust companies that are responsible citizens; they mistrust companies that appear selfish or wasteful. There is a balance to be struck between good environmental policy and the cost to implement such programs, but it appears that more industrial and commercial companies are finding ways to turn "green" policies into profitable business strategies. ITAC is helping companies develop their environmental positions as part of their strategy to differentiate themselves from competitors. ITAC also finds opportunities to reduce costs and improve environmental performance by assessing their operations and products. Currently, low-cost pollution prevention assessments are available for firms in a range of industries, from metal finishing to food processing. Some of our assessments are specific, looking only at wastewater or solid waste recycling, while others are broader overall pollution prevention surveys. ITAC can also help reduce the costs of implementing resulting recommendations. There are grants available to reduce the costs of purchasing new equipment when it will reduce pollution while improving productivity. For more information about improving the environmental performance at your firm - and turning your environmental performance into a competitive advantage - contact Stefanie Feldman at 212-442-2990 Free, Personalized Technical Advice Available at ITAC Online Solutions Have you ever had a technical question, or needed research assistance, but you didn't know where to turn or who to ask? ITAC can provide the answers you need through ITAC Online Solutions. Online Solutions is a NO-COST technical assistance service that provides technical, business, research and information assistance quickly and easily. The Online Solutions service includes an on-line library of information with a database of technical business and engineering documents and resources. If you can't find exactly what you need in the library, Online Solutions includes a technical, marketing and problem-solving "Ask an Expert" hotline service that ITAC also provides FREE to our customers. Click here to find answers to your business questions at ITAC Online Solutions. Upcoming Events Lean Manufacturing 101 Workshop Date: September 14, 2006, 8:30 am 4:30 pm Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY Cost: $95 Would you like to produce faster, better and less expensively with your existing resources? What if, in doing so, you could increase your sales, improve customer satisfaction and increase profitability? Principals and key managers at local manufacturing firms should attend this workshop to learn how Lean Manufacturing techniques help firms produce more with existing resources by eliminating non-value added activities. Workshop simulation exercises help participants experience first hand how Lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of Lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive. For more information contact Mei Sit at 212-442-2990 or msit@itac.org FastTrac Date: September 20, 2006 to December 6, 2006 Cost: $1000 for technology businesses, $500 for manufacturers. FastTracis a 12-session business development and growth program that teaches growing companies how to develop or improve their business model, acquire strategic partners, and position their company to attract capital and grow. For more information, contact Franklin Madison at 212-442-2990 or fmadison@itac.org. Green Construction Opportunities at FOCUS NYC Date: Wednesday, September 27, 2006 Location: Gotham Hall, 1356 Broadway at 36th Street, NYC 9:00 am-7:00 pm The Metropolitan New York Chapter of the Construction Specifications Institute will be hosting its Annual Trade Show & Education Conference Day, FOCUS NYC. This one-day event will include several hundred architects, engineers, designers and construction professionals including exhibits, sponsors, and supporters. Display booth opportunities are available at this "intimate show" for approximately $1,500 and there may be an opportunity for local manufacturers to have their products showcased at the Made in NYC table. Contact Stefanie Feldman at sfeldman@itac.org for more details. About ITAC ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive. ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.