The first step is to establish your underlying objectives. What are you looking to do?
introduce a new product line
develop a new marketing segment
open a new territory
The marketing objectives can be identified and listed
using the following criteria:
Share of Market
market-need satisfying objectives
The objectives will become the guiding
point as you develop your marketing expansion strategy.
Step2: Analyzing Your Market Position
Analysis: Market Assessment
The Situation Analysis makes an assessment
of your marketing strengths and capabilities. The analysis has eight components. You may review
all eight or a combination of analytical components
as it relates to your business.
First download and print
this section of the Market
Planning Model as a guide.
The competitive analysis includes both primary and
the competitor growth and size
the competitor share of the market
the competitor strength and weakness
the competitor's possible behavior when you make
Factors that can impact your competitive position include:
barriers of market entry and exit:
the stronger the barriers, the less likely that new
entrants or existing competitors coming into or exiting
the weaker the barriers, the more likely you will
face new players that can play havoc on your marketing
A prime example are Internet plays. There are zero
barriers to entry or exit. Internet leaders are constantly
battling upstarts that challenge their online position. A great example of this is how Michael Fertik was able to establish Reputation.com and keep it afloat with constant newly created competitors.
the strength of your suppliers / buyers: what prevents your suppliers or buyers
from moving forward or backward in the chain to compete
in your market
could these players become a competitor?
industry rivalry: for example, the threat of a "Wal-Mart"
moving into your area may force a shift in your product
strategy to stay competitive
Analysis: Assess Your Internal Capabilities
This requires a SWOT analysis, meaning:
define your company's strengths. It could be your
product line, sales force, location, operation efficiency
in comparison, you
need to outline your company weakness. This too may
by your product line, sales force, location, operation
efficiency or other.
list the opportunities
that may be available under a strategic play. This
could include a product line expansion, opening a
new market, streamlining an operation for better efficiency,
in comparison, you need
to also list the potential threats. This may include
price competition, new competition from a major player,
There is a generic life cycle that all businesses
Cycle 1: Introduction or
This is when a business first comes into the market.
The market is fairly new and needs to be developed.
Cycle 2: Growth
This is the period when the business begins experiencing
rapid growth. The business will expand its operations,
hire new people, and move into new markets and territories.
Cycle 3: Maturity
This is when the business begins to mature. Competitors
have entered the market to challenge the market
leader. To stay competitive, the business tightens
its operations, increases productivity, and sheds
Cycle 4: Decline
This is when the business begins to decline due
to competitive pressures or changes in the market.
There are different marketing strategies that work
for different life-cycles. Understanding your business
cycle will help define your marketing play.
effective marketing plan will likely require a segmentation of your current markets. Each
market segmentation may have its own "product-price-place-promotion"
to maximize sales.
Segmentation comes in many forms. The most common include:
Physical Description Segmentation:
Industry Markets: SIC code, size, usage rate,
Consumer Markets: age, sex, income, family life
General Behavioral Segmentation:
Industry: Industry buying situation
Most small businesses use physical descriptors for
segmentation. Large corporations use a combination of
segmentation strategies depending on brand and product.
The objective of segmentation is to develop
a market within a market to maximize sales.
For example, we completed a segmentation strategy for
a carpet-cleaning franchise. There were two distinct
segments that we identified:
we further broke these segmentations down using physical
descriptors and customer-needs segmentation.
What Type Segmentation
What we have found was distinct marketing components
that helped our client to target and grow their business.
We targeted high-income households within a geographic
area. Price was the segmentation strategy. Even though
the target could afford multiple carpet cleanings,
the business wanted to convey to the target that they
were getting great value at a minimum price.
We used selective coupons and seasonal incentives
in print media and direct mail campaigns.
Service was the segmentation strategy for hotels and
restaurants. They needed carpet cleaning that can
be performed in the off-hours with the least amount
Our client assigned a dedicated service professional
to each respective account. That person was on the
job almost daily building the reliability of their
From this segmentation came a new product
concept: concrete washing and cleaning.
Our client was able to expand their service offering
to the hospitality industry using customer-needs segmentation
for reliable and dedicated service.
Segmentation marketing allows you to develop a product
service that addressed different needs. Segmenting your
market can open business expansion opportunities.
strategies are often supported by marketing
research and positioning analysis. This is
very common with brand marketers such as Kelloggs, General
Mills, and other brand-oriented companies.
They use segmentation research to determine whether
a market exists. Often, new product concepts may be
discovered and tested.
This component is beyond our brief discussion, but
included in the download for review. We have within
our network marketing research experts who can address
any marketing research project.
Distribution channels are becoming an important play
in many marketing strategies. With the advent of the
Internet and online auction houses, businesses are expanding
operations that reach around the world.