Marketing Strategy
This section on developing an exploitation strategy will show how the company will develop its USP, whether it be lower manufacturing cost, better quality product, better service and technical support or lower price.
Obviously a price will have to be established for the product. If the product is completely new this may be difficult. However it is usually possible to determine a price based on analysing the added value offered to the customer by the product.
In addition, all costs associated with the manufacture, marketing and distribution of the product must be calculated and apportioned on a unit basis. This is the benchmark from which the value of the product to the client must be decided as distinct from its cost.
The sales process must be addressed once the marketing stage has been completed and the pricing strategy decided. It is important to distinguish between sales and marketing since these are sometimes considered to be the same thing. Marketing is the process whereby a customer need is identified, and quantified. Sales, on the other hand, is the process of communication with the potential customers and converting their interest into firm orders and cash.
Once it has been established that a given market demand exists, it is essential to devise a workable sales strategy. The essential elements of this will include:
the identification of a sufficiently large number of individual potential customer companies
identification of individual purchasing decision makers within each company
establishment of a priority listing of customers according to sales potential
training of sales personnel in selling techniques
development of an effective sales message
communication of the sales message to potential purchasers
provision of suitable answers to sale resistance and objections
conversion of customer interest into a purchase
This procedure calls for a plan involving the use of a sales force, distributors, agents, advertising, publicity, and the production of promotional brochures and videos. Management monitoring and control procedures will have to be installed to ensure that the right customers are being contacted, at the right frequency and that target performances are being achieved. Decisions on all of these points must be translated into the resulting commitment to staffing levels and associated costs.
CHECK LIST
- Have you obtained prices of competitive products or processes?
- Have you prepared a detailed cost breakdown for each stage of the product’s manufacturing and sales?
- Have you developed a price performance analysis comparing your product with that of competitors?
- Have you set a price based on steps 1 to 3 including discounts and terms?
- Have you prepared product literature / leaflets or datasheets on the product?
- Prepare a press release for the media and articles for serious journals
- Prepare an advertising and promotional budget.
- Prepare salesforce training programmes and possible responses to enquiries.