Berkley Center for Entrepreneurial Studies
YOUR MARKET ANALYSIS
AND MARKETING PLAN
Presented by: Cynthia Franklin
Senior Associate Director, Berkley Center
What’s the Difference?
Market Analysis
Describes Targets (Who & Why)






Customers
Competition
Competitive Advantage
Critical Success Factors
Critical Risks
Potential Sales/Market
Share
Marketing Plan
Describes Tactics (How)






Product Positioning
Price
Placement
Promotion
Sales Process
Partnerships
Berkley Center for Entrepreneurial Studies
Why Segment the Market?


All firms have limited resources. They can’t be all
things to all people. They must decide where to
focus their limited time, money and human capital so
that they yield the greatest return.
That means identifying “right-sized” pieces of the
market to go after.
Berkley Center for Entrepreneurial Studies
What Makes a Market Segment
Promising?




Measurable: possible to determine size
Significant: large enough to be profitable
Recognizable: distinct enough so that you can
identify its members
Compatible: with your venture’s mission, strengths,
ability
Berkley Center for Entrepreneurial Studies
Ways to Target the Market

Geographic
 local,

regional, national, international
Demographic
 B2C:
gender, age, income, education, ethnicity
 B2B: revenues, # employees, industry

Psychographic
 values,

lifestyles, hobbies
Behavioral
 benefits
sought, usage rate
Berkley Center for Entrepreneurial Studies
Tips for Identifying Market Segments

Secondary Research
 Databases
& Reports
 Newspapers & Magazines
 Trade publications and Trade shows

Ask
 Industry
players
 Potential customers
 Suppliers

Observe
Berkley Center for Entrepreneurial Studies
Make Sure Your Product Is Compelling



What problem will you solve? What need/desire does
your product address?
How will your product make their lives better, easier,
happier?
Know what your customers are currently doing:
Going to the competition
 Using another solution
 Nothing



Know how satisfied they are with existing options.
How hard will it be to get them to change what they’re
currently doing?
Berkley Center for Entrepreneurial Studies
Who Is My Competition?
Competition = everybody who’s after the same
consumer dollar you are.
 Direct Competitors
 Indirect Competitors
 Possible New Entrants
Berkley Center for Entrepreneurial Studies
How Stiff Is the Competition?



Analyze your competition.
Look for marketplace gaps you can fill.
Develop a competitive matrix.
Berkley Center for Entrepreneurial Studies
Your Competitive Landscape
Honda
Civic
Mpg
5-Yr Fuel
Cost
Tax
Rebate
Price
Honda
Civic LX
Toyota
Prius
Toyota
Corolla
XLE
Your
Product
37
28
44
32
?
$6,500
$8,500
$5,500
$7,500
?
$525
0
N/A
0
?
$23,270 $18,430 $24,170 $19,330
?
Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage
Having a Sustainable Competitive Advantage
allows you to distinguish your product from the
competition’s. It’s what gives you a significant edge.
The basis of your SCA must not be able to be
duplicated or imitated and is not substitutable.
Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage

Tangible Items
 Intellectual
property rights
 Exclusive license
Berkley Center for Entrepreneurial Studies
Creating a Competitive Advantage

Intangible Items
 Superior
Product/Brand
 Quality
 Selection
 Availability
 Operational
Excellence
 Innovation Leadership
 Intimate Customer Relationships/Experiences
 Cost Advantage
Berkley Center for Entrepreneurial Studies
Your Critical Success Factors
CSF = What absolutely must happen in order for
you to be successful. In other words, “If I don’t do X,
then my venture will fail.”


Identify five or fewer CSFs.
CSFs will be driven by your industry, business model,
target markets, etc.
Berkley Center for Entrepreneurial Studies
Critical Risks



Investors aren’t looking for risk-free businesses;
there is no such thing.
What they are looking for is evidence that you
know where potential trouble lies and that you’ve
thought of contingency plans.
Be forthright in your assessment of risk.
Berkley Center for Entrepreneurial Studies
Examples of Common Critical Risks





Competitor response to your entry into the market.
Sales projections below expectations.
Unable to find suppliers.
Inability to find a distributor.
Inability to get shelf space.
Berkley Center for Entrepreneurial Studies
The Marketing Plan
Your Go-to-Market Strategy
Berkley Center for Entrepreneurial Studies
Your Product

Communicated

Augmented
Tangible
Core
Product


Core Product: Primary
benefit
Tangible Product:
Features
Augmented Product:
Enhances purchase
exp.
Communicated
Product: Branding
Berkley Center for Entrepreneurial Studies
Pricing




How much can you charge?
Will your products be bundled?
Will you be offering discounts, leasing, financing,
coupons, etc.?
Avoid competing on price—for most, it’s not a
winning strategy. Customers who shop based on
price tend not to be loyal.
Berkley Center for Entrepreneurial Studies
Placement: Getting It to the Customer

Direct to your customer
 Online
 Own

physical location
Indirect to your customer
 Through
retailers
 Through wholesalers
Berkley Center for Entrepreneurial Studies
Promotion: Getting Their Attention

Common Tools
 Advertising
(print, broadcast, online)
 Direct
mail
 Email/website
 Social networking
 Trade shows/events
 Cold calling/telemarketing
 Face-to-face
 Public relations
Berkley Center for Entrepreneurial Studies
Choosing Your Marketing Mix
Factors to consider
 Choose media your target segments use most.
 Take into account how complex your sale is (big ticket,
new technology, multiple decision makers).
 Use media appropriate for your product.
 Target your message so that your customer receives it
when they’re most receptive.
 Use an assortment of tactics to send a unified message.
 Be focused.
Berkley Center for Entrepreneurial Studies
What Happens When Customers
Raise Their Hands?

What systems do I need in place to handle customer
inquiries and process orders?
 Fulfillment
 Shipping
 Brochures/Sales
literature
 Website
Berkley Center for Entrepreneurial Studies
Partners


Seek out partners for all phases of the Go-ToMarket Strategy.
Collaborate with potential “competitors”.
Berkley Center for Entrepreneurial Studies