Module 4
Startup Marketing
1>
Objectives
Gain an understanding, and knowledge of:
The Concept & Customer Sizing Your Market & The Marketing mix:
Importance of Characteristics & Analysing Your The 4 Ps of Marketing
Marketing Segmentation Competitors Making a Marketing Plan
2>
Intro to Marketing
• Providing the products and services
customers need
• Setting prices that they are willing
and able to pay
• Getting your products and services
to them
• Informing and attracting them to buy
your products or services
…and doing so profitably!
3>
Your Customers
The King!
• Who are your customers?
• What is a customer in any case?
• Why are customers, customers?
• How well do you know your potential customers?
• Do you really know why they buy your products or services?
4>
Underlying needs
The real motivation(s) to buy
A customer’s underlying need is their core motivations
for buying your products.
• Understanding your customer underlying needs will
help you unlock insights useful in product design &
refinement as well as sales and marketing
• Thinking about the need, as opposed to the product,
helps to segment your potential customer better and
more effectively – as well as identify real
competitors!
Thus, understanding the need you are addressing in the
customers’ broader reality is important if you want to be
successful!
5>
Customer Characteristics
Geographic Demographic Psychographic
LOCATION AGE, GENDER, EDUCATION RELIGION, HOBBIES
RURAL vs URBAN INCOME, JOB / OCCUPATION POLITICAL AFFILIATION or OPINIONS
(PERI-URBAN vs SUBURBAN) FAMILY (Lifecycle), MARITAL STATUS LIFESTYLE, CULTURE / ETHNICITY
SEASONALITY FAMILY SIZE, HOME OWNERHIP INTEREST, AMBITIONS & ASPIRATIONS
PHYSICAL SETTING ACCESS TO SMART PHONE FEARS & FOBIAS, VALUES
(Near the Sea, the Road etc.) BANKED, INSURED ATTITUDE
6>
Segmentation Segmentation is the process of dividing the market into groups of consumers with common needs
and/or characteristics.
Why segment?
• You need to focus your scarce marketing resources in the beginning and chose a group of
customers that are ready, willing and able to pay for your product or services
Customer segmentation:
• creates homogenous sub-units that aim to match groups of consumers with the same set of
needs and consumer behaviour.
Customer segmentation exercise!
• allows entrepreneurs/innovators to focus their marketing & sales effort for maximum results.
Segment Ranking Geographic Demographic Psychographic
characteristics characteristics characteristics
7>
Understanding your
customer
To effectively reach a segment of customers,
you must develop a deep understanding of
their needs. Creating and developing a
customer profile will give you the information
you need to develop an effective strategy.
• Imagine one person or organisation that
stands for each segment.
• Write the name and age of that
representative person or organisation in the
middle of the Empathy Map, in addition to
the title of the customer segment.
8>
Market sizing
Total Addressable Market (TAM):
• The total demand for a product or service within a specific market.
• TAM represents the entire market for a product or service, including
all potential customers and scenarios, without any limitations.
Serviceable Addressable Market (SAM):
• The portion of the TAM that your business can realistically target
and serve.
• SAM is a subset of TAM and represents the segment of the market
that your business can effectively reach and serve based on factors
such as location, resources, and capabilities.
Serviceable Obtainable Market (SOM)Target Market:
• The specific group of customers within the SAM that your business
intends to focus on and serve
• The target market is a narrower segment of the SAM that your
business identifies as its primary audience and tailors its marketing
and sales efforts towards
9>
4 Ps
$
Product Place Promotion Price
10 >
Product
Starts from the need of a potential customer. What will fulfil his / her
wishes in the best way? How can the biggest group of customers be
attracted to buy your product or service?
PRODUCT does not just mean something that you can touch. It also
includes the complementary services that come with your product, e.g.
some products come with a guarantee and others come nicely
packaged. These are perceived as part of the product (and increase
the attraction of the product for the customer).
What your product is will decide your approach towards the other
three Ps.
When deciding on your product strategies, you will need to think
about things like:
• features – how can it fulfil the needs of as many people as possible?
• quality – is this high, medium or low?
• packaging – how will you physically package your product and of
what quality will that packaging be?
• branding– what message does the consumption of your product or
service convey to customers?
• after sales service and guarantee – what do your customers want
and what will you offer?
11 >
Product Analysis
Product #1: Product #2:
General A loaf of bread
description
Quality Wheat flour, milk - always fresh out of the oven
Colour 1 colour (white)
Size(s) 400g, 600g & 800g
Packaging Wrapped in branded paper bag
Spare parts N/A
Repair service N/A
Other attributes Slicing available -- Toping available: sesame
seeds, poppy seeds
12 >
$
Price
Is what we charge for our product.
A great deal of time and attention needs to
be devoted to your pricing so that you do
not set it too high (and customers are un-
willing to buy) or too low (giving the wrong
image or not making adequate profit).
Your price for your products is a key
influencer on how many of your products
will sell in the market, and therefore:
• how much profit your business will make;
• how much cash will flow through your
business;
13 >
Price Analysis
$
Product #1: Product #2:
Cost $ 0.85
Customers’ $ 1.00-1.35 (wholesale vs retail sale to individuals)
willingness to pay
Competitor’s price $ 1.00-1.30 (competitors lowest and highest prices)
Our price (policy) $0.95 for wholesale (10+ loaves)
$1.25 for individuals
Reason for pricing A lower price is important to penetrate the market.
(policy) We will keep our price low and market focused!
Discounts No discounts will be given besides the wholesale
price
Reasons for discounts N/A
Credit For wholesale we can give 1 week credit from the
3rd time they order with us
Reasons for credit This is primarily meant for regular customers
whose orders are predictable and timely
14 >
Place
Refers to the way how and where you intend making
your product or service available to your customers.
You need to consider things like:
• where is your business located relative to your
customers?
• your ability to deliver your products where your
customers are located, and the cost in doing so?
• selling directly to customers or selling through
intermediaries like wholesalers, retailers or agents?
• It could also be online through a website or other
online channels.
15 >
Place Analysis
Describe location (as well as distribution details if relevant) – elaborate on reasons for location (pro’s and con’s of the place)
16 >
Promotion
Refers to your way of attracting the attention of
possible clients. You need to think about how you
go about promoting your product by way of:
• personal selling – where you go to customers
and sell face-to-face;
• advertising and promotion – this comes in many
forms, from straight newspaper ads through to
mail shots or leaflet distribution and attendance
at exhibitions; online ads.
• merchandising – how you display your goods at
the point of sales;
• the packaging that goes with your product.
17 >
Promotion Analysis
Type of promotion Details Cost
A sign on the building
Smaller sign by the door
Personal letters
Free deliver
Demonstrations
Handouts
18 >
Competitor Analysis
It’s important to recognise that you do not operate in
isolation with no competitors, even if no one around you
does exactly the same as you. Competition relates to all
products and services that address the same underlying
need as your products or services does; or that fight for
the same share of the wallet as you do.
Thus, you must acquaint yourself with these competitors
by making that same analysis of their products as you just
did for your own products. Try to acquire as much
information about how they handle their 4 Ps.
In addition to this, make a simple SWOT* analysis of their
business too – this might reveal information that is
valuable to you when designing your marketing plan.
*Strengths, Weaknesses, Opportunities & Threats
19 >
Competitor Analysis
Competitor Products Competitor Competitor
Strengths Weaknesses
Make as many bullet Make as many bullet
points of areas where you points of areas where you
Competitor Pricing feel the competitor is feel the competitor is
stronger than you weaker than you
Competitor Place Market Market
Opportunities Threats
You share the market and You share the market and
the external reality is the the external reality is the
Competitor Promotion same as yours – so copy same as yours – so copy
the opportunities you have the threats you have
identified identified
20 >
Marketing Plan
Now that you have analysed your competition;
take a new hard look at your marketing plan and
your 4 Ps, and identify areas for improvement.
Detail the action needed to put these Ps in place
and keep in mind you have limited resources –
both in terms of time and money – so chose
carefully, and focus on what will create results
for you in the short run to begin with…
21 >
Thank you
for today
22 >
