Goals are the gaps between the company's actual and desired accomplishments, between what the company is and what it seeks to become. Each goal has a corresponding benchmark and a set of controls within the marketing plan.
The SMART acronym can be used to guide the goal setting process. To make goals clear and reachable, each one should be:
Specific (simple, sensible, significant).
Measurable (meaningful,
motivating).
Achievable (agreed, attainable).
Relevant (reasonable, realistic and resourced, results-based).
Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).
Professor Rubin also notes that the definition of the SMART acronym may need updating to reflect the importance of efficacy and feedback. However, some authors have expanded it to include extra focus areas; SMARTER, for example, includes Evaluated and Reviewed.
The
SWOT framework offers a straightforward approach for evaluating a company's overall business condition. As implied by its name, the SWOT framework entails four factors: the company's strengths and weaknesses, and the opportunities and threats presented to the company by the environment in which it operates. The four factors are organized in a 2 X 2 matrix based on whether they are internal or external to the company, and whether they are favorable or unfavorable from the company's
standpoint.
The SWOT framework can also be thought of as a reorganization of the 5-C framework, in which the Five Cs are partitioned into favorable or unfavorable factors. Thus, the analysis of strengths and weaknesses focuses on the company, and the analysis of opportunities and threats focuses on the other four Cs describing the market in which the company operates, defined by customers, collaborators, competitors, and context. (Alexander Chernev) [1]
SWOT is an acronym for Strengths,
Weaknesses, Opportunities and Threats. The SWOT framework is used to analyze the internal condition of a company and the external circumstances of the company. This aids the company in understanding and taking advantages of its strengths while working on its weaknesses, avoiding potential problems and pursuing new opportunities.
Strengths - Strengths are areas in which the organization excels. It represents advantages that the organization has over the competitors in the market. The
Points-of-Difference described in the Three Circles of Brand Positioning worksheet are among these advantages. Strengths can be quite diverse, such as company location, brand awareness, patents, workforce capabilities, market positioning, product portfolio depth and breadth, and channel superiority.
Weaknesses - Weaknesses inhibit the organization from achieving its mission and effectively serving it's target market. The lack of an important and needed strength may be considered a weakness.
Examples of weaknesses include scandalous reputations, poor quality offerings, high employee turn-over and discontent, poor locations, etc.
Opportunities - Opportunities represent potential for growth. These are external to the organization. They are a function of the overall market. Opportunities may be uncovered through market research and competitive intelligence. Growth and expansion opportunities are examined in the Ansoff Matrix, including market penetration, new market development, new
product development, or diversification. Opportunities are also represented as gaps within Perceptual Space where customer needs have been unmet by market offerings.
Threats - Threats are market conditions that can impact the success of a business. Like opportunities, threats are external to the organization. Threats may come in the form of new innovations from competitors or market disruptions. They may precipitated by changes in market context (e.g., Political, Economic, Social,
Technological, Legal, Environmental or PESTLE).
----------
A SWOT analysis is represented as a 2X2 Matrix with appropriate labels, axes and cell content. A respective list of Strengths, Weaknesses, Opportunities and Threats are contained within each quadrant of the 2X2. Analysis and recommendations can then be provided below the completed framework.
For any company looking to move beyond "business as usual," the Ansoff matrix is an invaluable tool to
help analyze and manage risk and strategize growth opportunities. The Ansoff Matrix, also called the product/market growth matrix, is used by the companies to explore product offering expansion strategies. The four quadrants of the Ansoff Matrix are Market Penetration, Market Development, Product Development and Diversification. This is a model used to explore potential growth paths for the company.
The four strategies of the Ansoff Matrix are as follows:
Market Penetration - This strategy
focuses on existing products within existing markets. If the product is still in the growth phase of the market, the company's best strategy may be to pour its resources into garnering additional market share through aggressive marketing communications.
Market Development - This strategy takes existing products into fundamentally new markets (e.g., demographically, geographically). The company does not need to invest in new technologies, manufacturing, or development. Instead, they develop
new distribution channels, brand positioning and marketing communications to meet the unique needs and interests of a new target customer.
Product Development - This strategy introduces new products in existing markets. The company continues to serve the existing target customer through existing channels by offering new products. New skill sets, additional R&D and investments in manufacturing may be required.
Diversification - This strategy involves both market development and product
development. It is the riskiest strategy wherein the customer has a limited knowledge of the market as it introduces new products and technologies into that market.
----------
The Ansoff Matrix is forward looking. It is used to uncover new opportunities for growth and expansion. Use this worksheet to consider potential growth paths using each of the four strategies, market penetration, market development, product development, and diversification. Describe requirements for the company to
successfully pursue each growth paths. Explain why some growth paths might be more logical than others. Consider short-run and long-run strategies.
"A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. Each market segment is unique, and marketers use various criteria to create a target market for their product or service. Marketing professionals approach each segment differently, after
fully understanding the needs, lifestyles, demographics, and personality of the target consumer.
"A market segment is a category of customers who have similar likes and dislikes in an otherwise homogeneous market. These customers can be individuals, families, businesses, organizations, or a blend of multiple types. Market segments are known to respond somewhat predictably to a marketing strategy, plan, or promotion. This is why marketers use segmentation when deciding a target market. As its
name suggests, market segmentation is the process of separating a market into sub-groups, in which its members share common characteristics.
"To meet the most basic criteria of a market segment, three characteristics must be present. First, there must be homogeneity among the common needs of the segment. Second, there needs to be a distinction that makes the segment unique from other groups. Lastly, the presence of a common reaction, or a similar and somewhat predictable response to
marketing, is required. For example, common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral." -- (Adam Hayes) [1]
----------
Many articles about segmentation combine the discussion of 'identifying viable segments' with 'identifying the target customer'. These activities are different. Viable market segments are customer groups with common needs,
lifestyles and behaviors that can be satisfied by an organization. Once identified, these groups are treated as if they are a single target customer. They are profiled based on observable characteristics, such as demographics, geographics and psychographics. In other words, a viable segment must need what the company offers. Once identified, that segment can be profiled using observable characteristics.
Begin with the customer needs uncovered in worksheet 2.1.2 Customer Needs. Consider
different groups that might have these needs. If you are conducting segmentation research, a block of questions in a survey would ask about these needs with the intent of separating out those with needs. A second block would include profiling questions, such as age, marital status, and income, that are likely to differ those with the needs vs. others. A correlation analysis is then conducted to determine which profiling characteristics are uniquely associated with those feeling the need for the
company's offerings.
If you are not conducting a survey to identify needs and profiling characteristics, you will likely need to consider both simultaneously. Look for potential market segments who's needs can be met by the company's offerings. At the same time, carefully observe their observable characteristics. These will be used to profile the selected segment in worksheet 3.1.4 Target Customer Profile.
For this worksheet, identify several plausible market segments that feel the needs
addressed through the company's stated mission (worksheet 1.2 Mission) and achieve its objectives (worksheet 1.3 Goals). Avoid describing these markets using profiling characteristics (e.g., demographics, psychographics, geographics). Instead, choose labels that convey the essence of the market relationship that would exist between these customers and your organization. Use labels that might even infer the underlying needs, wants and demands that are being fulfilled.
Market
segments should be:
Measurable.
Substantial.
Accessible.
Differentiable.
Actionable.
----------
Once potential target markets have been identified, marketers must determine which to pursue using criteria consistent with the organization's mission and objectives.
For this worksheet, list the potential market segments identified in 3.1.2 Potential Market Segments. These market segments are likely to feel the needs and wants documented in the worksheet 2.1.2 Customer Needs.
Next, determine criteria to guide the selection of the first market segment to enter. Build a table similar to the one shown below, listing each of the potential segments in the first column and the segmentation selection criteria along the first row. Add relative weights to each of the selection criteria and rate each of the contending segments using a common scale (e.g., 1-5). Finally, construct a rating score for each segment as the weighted sum of all criteria.
The segments with the
highest scores should be discussed and a decision made regarding the initial market segment to target. If the final ranking scores do not 'feel right' (e.g., if what would otherwise appear to be the best segment is not given the highest score) it is possible that some criteria might be missing, criteria weights might be inappropriate, or initial perceptions of the 'best' segment might be too high. In any case, the Segmentation Selection Criteria table provides a basis for discussion and
adjustment. It offers rationale that can be shared with others (e.g., company executives, sales, channel partners) to tease out information and attitudes that might influence the final selection. It also serves to bring these important stake holders into alignment.
The point of market research is to gather data and give you a comprehensive picture of your target market. When businesses do this, they create a unique customer profile, sometimes called a
persona.
This is the ideal customer who wants and needs your products, and it's very detailed. A good customer profile must be as specific as possible. Lots of companies go so far as to give them names and draw images. They may even post pictures of real people who represent their market. -- (Renee Shupe) [2]
A good customer profile includes the target markets:
Demographic Information
Lifestyles and Hobbies
Morals and Values
Pain Points
Shopping Habits
Stereotyping Can Be
a Good Thing!
Isn't all of this stereotyping? Of course it is! But it works. By creating a profile of your ideal customer, you know exactly where to aim your marketing efforts. Without it, you'll cast your net too wide and your message will be irrelevant to many who hear it, wasting your resources and advertising dollars. Create all of your marketing materials and sales copy by speaking directly to this ideal customer and the right people will get the message. [2]
----------
A target
segment profile is a detailed description of a typical customer within the target market segment. It is a stereotype. For this worksheet, create both quantitative and qualitative profiles. Begin by creating a table that provides statistical information about each of the market segments considered in 3.1.3 Segmentation Selection Criteria. This table should reveal important segment similarities and differences with respect to gender, marital status, wealth, employment, lifestyles, habits, etc.
This quantitative profile can be used to isolate and identify the chosen target market segment.
Next, create a written qualitative profile of the selected target market segment; or, in other words, the stereotypical target customer who represents the selected target market segment. This profile is richer in content than a quantitative profile. It tells us more about how the target customer thinks, acts and behaves. It help us understand the motives behind the behaviors.
Direct competition is a situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market. Apple's iPhone, for example, is in direct competition with Samsung's Galaxy in the smartphone market; the company's Macbook line competes directly with Dell's XPS line in the notebook category.
Vendors often use competitive differentiation strategies to set their products, services and
brands apart from those of its direct competition. The purpose is to convince potential customers not only that your product is different from others in the category but that it is superior to them. Design, quality, price, features and support are among the factors that a vendor might promote as unique selling points (USP).
Direct competition contrasts with indirect competition, in which two or more businesses offer products or services that, although different, might fulfill the same
consumer need. -- (Margaret Rouse) [1]
Depending on whether or not competitive offerings belong to the same industry and product category, competition can be either direct or indirect. Direct competitors are offerings that come from the same industry (or product category) and aim to fulfill the same customer need as the company's offering.
The brand positioning statement is an internal company document—usually consisting of a single sentence—that outlines
the essence of a brand's strategy. The primary purpose of the brand positioning statement is to guide tactical decisions related to managing the brand. Similar to the customer value map, the brand positioning statement aims to succinctly share the essence of a brand's strategy with the relevant entities involved in creating, managing, and supporting the brand. At the same time, the brand positioning statement is much narrower in scope than the customer value map and focuses only on the key
aspects of the brand strategy without addressing brand tactics...
The positioning statement involves three key components: target customers, frame of reference, and primary benefit(s). These three aspects of the brand positioning statement are outlined below.
Target customers are the individuals in whose minds the company aims to establish a meaningful brand image and for whom the brand aims to create value.
The frame of reference identifies the reference point used to define the brand.
The frame of reference can be either noncomparative or comparative. Noncomparative framing relates the brand to the customer need it aims to fulfill without explicitly comparing it to other brands, whereas comparative framing defines the brand by contrasting it with other brands.
The primary benefit identifies the principal reason why customers will prefer the company's brand. Most positioning statements identify a single benefit, although positioning statements featuring multiple benefits
are not uncommon. The primary benefit could also involve -- (Alexander Chernev) [1]
----------
The classic brand positioning statement packs considerable information into a single, succinct sentence. In this worksheet, use the template provided below to create a value proposition for the company. Remember that this is an internal company statement designed to guide organizational activities as they consistently clarify the brand's essence and value to the customer.
Consumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, let's consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a Product.
The CORE product is NOT the tangible physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it
valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of
product.
The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be
converted in to benefits for individuals.
Demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis. With few exceptions, the demand curve is delineated as sloping downward from left to right because price and quantity demanded are inversely related (i.e., the lower the price of a product, the higher the demand or number of sales). This relationship is contingent on certain ceteris paribus (other things equal) conditions remaining constant. Such conditions include the number of consumers in the market, consumer tastes or preferences, prices of substitute goods, consumer price expectations, and personal income. A change in one or more of these conditions causes a change in demand, which is reflected by a shift in the location of the demand curve. A shift to the left indicates a decrease in demand, while a movement to the right an increase. Compare supply curve.
A value chain is used to describe all the business activities it takes to create a product from start to finish (e.g., design, production, distribution, etc.). And a value chain analysis gives businesses a visual model of these activities.
With this analysis, you can take steps to create a competitive advantage, improve efficiency, and increase profit margins.
Let's take a deeper look into value chain analysis and learn how you can analyze your business activities.
Harvard Business School professor, Michael Porter, introduced a simple value chain model in his book, "Competitive Advantage". He developed the steps to perform a value chain analysis and split business activities into two categories: primary and support.
There are five primary activities and they include all the actions that go into the creation of a business' offering.
1. Inbound
Logistics. This is how materials and resources are gained from suppliers before the final product or service can be developed.2. Operations. Operations are how the materials and resources are produced, resulting in a final product or service.3. Outbound Logistics. Once a product or service is finished, it needs to be distributed. Outbound logistics describes this delivery process.4. Marketing and Sales. This is how your product or service is presented and sold to your ideal target market.5.
Services. This is the support a business provides for the customer which can include support and training for the product, warranties, and guarantees.