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DEFINE POSITIONING, BRAND STRATEGY, DISTRIBUTION and PRICING for a New Product Or Service ››› Marketing Guide CONTENTS Marketing Guide DEFINE POSITIONING, BRAND STRATEGY, DISTRIBUTION AND PRICING for a New Product or Service ››› Marketing Guide CONTENTS 5 RESEARCH THE DEMOGRAPHICS 36 DETERMINE HOW WE TRULY OF OUR MARKET PROVIDE VALUE TO OUR MARKET 5 Quantitative Market Research 36 Method for Delivering Value and Market Lifecycle Select Value Proposition 37 Define Market Size 6 Review Competitors Value Propositions 39 Market Size 6 Analyze the Market 40 Outline Market Characteristics 11 Current Characteristics 11 42 DEFINE OUR POSITIONING STRATEGY Influences 12 42 Competitive Positioning Strategy Decisions Makers & Influences 12 Create Competitive Positioning Matrix 43 Knowledge of Pain 13 Define Competitive Positioning Trends 14 & Strategy 46 Determine Market Lifecycle Stage 14 Select Positioning Approach Based on 48 DETERMINE THE BASICS Market Lifecycle 16 FOR THE FOUNDATION OF OUR BRAND 48 Brand Basics 19 RESEARCH THE PSYCHOGRAPHICS Determine Brand Type 49 OF OUR MARKET Product Band 49 19 Qualitative Market Research Family Brand 50 and Market Segments Idea Brand 50 Understand Market Pains 20 Confirm Value Proposition 51 Data Collection Options 20 Identify Brand Theme 53 Responses and Analysis 23 Define Market Segments/Personas 24 55 CREATE OUR BRAND ARCHITECTURE BY EVALUATING THE BENEFITS WE PROVIDE 28 EVALUATE OUR COMPETITION 55 Brand Architecture 28 Competitive Analysis Explore Brand Emotions Benefits 56 Research Competition 29 The Brand Experience and Emotion 56 Direct Competitors 30 Level of Importance 58 Indirect Competitors 30 Select Brand PIllars 60 Future Competitors 30 Test Your Brand Pillars 64 Final Competitor List 31 Determine Brand Means 65 Evaluate Competition and Complete SWOT 31 Ratings 32 Perform SWOT Analysis 34 ››› Marketing Guide 68 DEFINE THE PERSONALITY OF OUR 97 OUTLINE OUR HIGH-LEVEL BRAND AND OUR BRAND PROMISE PRICING STRATEGY 68 Brand Experience 97 Pricing Strategy Select Brand Personality Traits 69 Align Value Proposition to Marekt Share Goals 98 Human Personality Traits 69 Define Pricing Strategy 101 Determine Brand Promise 70 Competitors’ Promises 71 104 MATCH PRICE TO Summarize Brand Strategy 72 PROFITABILITY TARGETS 104 Profitability Targets 75 WRITE OUR BRAND STORY Determine Cost of Goods Sold 105 AND POSITIONING STATEMENT Steps to Calculate Cost of Goods 106 75 Brand Story & Positioning Statement Set Price Floor 106 Create Brand Positioning Statement 76 Steps to Establish a Price Floor 106 Write Brand Story 77 108 ANALYZE COMPETITOR’S PRICES 81 DEVELOP OUR VISUAL AND DETERMINE OUR PRICE BRAND REQUIREMENTS 108 Pricing Analysis 81 Visual Brand Requirements Analyze Competitor’s Pricing and Value Propositions 109 Evaluate Brand Visual Requirements 82 Determine Price 111 Brand Consistency 82 Logo 84 112 EVALUATE IF WE SHOULD PURSUE Print & Digital Design 84 ADDING A NEW DISTRIBUTION CHANNEL Marketing Campaign Design 84 112 Distribution Channel Analysis Retail Location 85 Determine If a New Distribution Channel Is Employee Location 85 Right for You 113 Create Brand Visuals 86 Business Goals 113 Color 86 Distribution Channel Examples 117 Logo 89 Evaluate an Existing Distribution Channel 118 Typestyle / Font 90 121 DEFINE WHAT OUR CHANNEL WILL LOOK LIKE 93 EVALUATE HOW OUR PEOPLE 121 New Distribution Channel Outline AND OPERATIONS REPRESENT Establish Distribution Goals 122 OUR BRAND Select Channel Type 123 93 Operational Brand Requirements Project Channel Revenue 129 Define Brand Operational Requirements 94 ››› Marketing Guide 131 FIND CHANNEL PARTNERS 148 DRIVE REVENUE THROUGH AND CREATE OUR CHANNEL PLAN THE CHANNEL 131 New Distribution Channel Plan 148 Channel Marketing Campaigns and Support Design Channel 132 Outline Channel Support 149 Logistics 134 Partner Training 151 Find Channel Partners 135 End-User Training 153 Partner Sales Pitch 137 Sales Literature & Tools 154 Pitching Big Consumer Retailers 137 Design Channel Marketing Campaigns 155 Partner On-Boarding Plan 138 Create Channel Partner Management Plan 139 Channel Management Areas 140 141 CREATE OUR CHANNEL PRICING STRATEGY 141 Channel Pricing Strategy Minimize Channel Pricing Conflict 142 Determine Channel Markups 146 Set Channel Pricing 146 ››› 5 Marketing Guide RESEARCH THE DEMOGRAPHICS OF OUR MARKET QUANTITATIVE MARKET RESEARCH AND MARKET LIFECYCLE A good positioning strategy requires a careful evaluation of market research. The first step is to evaluate the total market size and opportunity. Market data (including industry reports, external market data, and our own experience with the market) will help us outline the total number of potential customers in the market, as well as the total potential sales in the market. These are the demographics of our market. The next step is to outline the market TASKS TO COMPLETE: characteristics, to determine whether our market is growing, stable or contracting, and what external 1 Define Market Size factors or trends are influencing our market. An analysis of the market lifecycle stage— 2 Outline Market Characteristics introductory, growth, maturity or decline—will help us determine the best positioning approach: Do we need to educate our market? Focus on the value 3 Determine Market Lifecycle Stage of our offering? Position our features and benefits against our main competitors? Compete on price? Select Positioning Approach 4 Or re-segment our market? Based on Market Lifecycle For 100s of plans like this, check out our © Moderandi Inc. 2014 Marketing Planning and Management App www.marketingmo.com 6 Marketing Guide DEFINE MARKET SIZE Competitive positioning is about defining how much of the cost comes from creating focus groups you’ll differentiate your offering and create value and interviewing the market. for your market. It’s about carving out a spot in the Yet it’s common for mid-size B2B firms, and some competitive landscape and focusing your company/ small B2C firms, to conduct little market research as product/service to deliver on that strategy. Your they’re shaping their positioning strategy. Without ultimate goal is to win mindshare in the market—to strong market data, it’s difficult to understand be known as a “certain something” in the market’s true positioning and new opportunities that might mind. present themselves, so if you haven’t completed Your positioning strategy is one of the most your market research, start here. important strategic marketing decisions you’ll make. It’s the foundation for your brand strategy and MARKET SIZE serves as your compass for all your marketing and sales activity over the years. The first step to creating a market profile is to evaluate the total market size and opportunity. To start developing your positioning strategy, begin You’ll need access to as much market numerical researching your market to create a market profile. data as you can find—industry reports, external What is the size of your market? To whom are you market data and your own experience with the selling? What does a typical customer look like? market. Most companies have a few people on staff who have a good understanding of the total Consumer products and services companies market size, so make sure to get their opinion while almost always conduct detailed market research conducting your research. BEFORE making a decision to enter a market and position themselves. If Proctor and Gamble If you sell multiple products/services, or if you is evaluating whether to launch a new line of sell to multiple markets, you may wish to create toothpaste, they want to understand the exact size a separate positioning strategy for each one. of the opportunity so they forecast market share and sales figures, before they commit millions of Your goal is to make your market profile as dollars to product development, launch, distribution complete as possible. If you’re researching a portion and advertising. of a market, or a portion of a vertical or sub-market, repeat this task, if necessary, for each. It’s better to For big companies, this often requires months of have multiple profiles of targeted markets than to research and could cost upwards of hundreds of have a single profile of a huge market that provides thousands of dollars. Market research firms often little useful information on how to gain even a single perform much of this work for big companies, and percentage point of market share. For 100s of plans like this, check out our © Moderandi Inc. 2014 Marketing Planning and Management App www.marketingmo.com 7 Marketing Guide MARKET NAME: PRODUCT/SERVICE: Depending on your situation, you may wish You might also consider joining the Marketing to purchase market reports or hire an outside Research Association or searching the Blue Book research firm. If you’re pressed for time, start with Marketing Research Services Directory which lists estimates, and iterate over time. specialty marketing research companies around the world. Begin by estimating the total number of potential customers in your market. This number may be If you’re completing your market research in house difficult to estimate if you’re in an early-stage and don’t have the budget to hire an outside firm, growth market. If you’re in a mature market without you’ll most likely need to compile information from room for growth, it will simply be the total number numerous sources. Here are a few helpful general of unit sales in the existing market. information sources on the Web: If you need to hire a market research firm, here ■ United States Bureau of Labor Statistics are some global innovative firms listed in the ■ Hoovers GreenBook Research
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