Marketing: OBJECTIVES, STRATEGIES & TACTICS
Product Strategies Worksheet
In Session 4, you analyzed your customers and competitors and estimated your market potential. Now, you will use this information to develop product strategies that will make your target customers more likely to buy.
1.	Which stage of the product life cycle is your product in (introduction, growth, maturity, decline)? Explain how this will affect your product and pricing strategies, and your potential for growth.
2.	Describe your product line. If you’re planning to sell only one product, explain why you made that choice and describe any service enhancements that will complement the product. If you’re selling more than one product, describe how they fit together in your product line, and why you believe this mix of products is the right one for your target market.
Positioning Statement Worksheet
Look back at the Competitive Analysis Worksheet and Customer Analysis Worksheet from Session 4, and think about where you want to position your products relative to your competitors. Then, write a positioning statement for each market segment you target. A positioning statement consists of a couple of sentences that explain what you offer that your competitors don’t. Once you’ve explained this to yourself, you can use it to guide your marketing messages.
Based on your previous worksheets, answer the following questions very briefly.
1.	Who is your target customer? Where are they? What problem or need do they have?
2.	What product will you offer to solve their problems or meet their needs?
3.	Who are your primary competitors? What solutions do they offer?
4.	What is the primary benefit of the solution you offer?
5.	What is the differentiator that makes your primary benefit better than what your competitors offer? What evidence can you cite to support this claim?
6.	Use your answers to Questions 1 through 5 to write a simple, clear positioning statement. Here’s a template:
[Your company] has the only [product type] that provides [your target customer] in [your area] with [your primary benefit], because unlike [your competitors], [your company] offers [your differentiator].
Branding Worksheet
A brand is a name or symbol—or some combination of the two—that represents your product. Your brand identity is how you present your product to the world. Your brand image is how your product looks to your customers. In other words, brand identity is how you want to be seen, while brand image is how you are seen.
1.	If you’ve already chosen business and product names, explain how they communicate your brand identity. If you haven’t, make a list of words or emotions that describe the kind of brand identity you want. Explain why this brand identity will appeal to your target market.
2.	What kind of logo is appropriate for your business? Something humorous? Classy? Down to earth? Professional? What kind of message do you want it to send? What colors and style suit your type of business?
3.	Now, write your branding statement. A branding statement is a short, clever or humorous sentence that gives customers a simple, memorable concept of your business. Example: Green Thumb Plant Care makes a day at the office like a walk in the park.
Packaging Ideas Worksheet
Your packaging decisions should fit your positioning statement and brand identity. If you sell toys, is the packaging child-safe? If you are a green business, does your packaging demonstrate your commitment to environmental health? If you sell locally made goods, are your packaging materials local?
Use this worksheet to describe packaging ideas for your business. Explain how the idea will help to create the brand identity you want.
Packaging idea | Brief description | How it builds your brand identity
Clear outer wrapper | Clear plastic wrapper around the cookies, tied with a bright bow. | Cookies look clean and fresh. The bow attracts attention and looks homemade.
Cookie-shaped business card | Business cards in shape of chocolate chip cookie. | Makes the customer think of my cookies just by looking at the card. Different from other cards.
Pricing Strategy Worksheet
Pricing is critical to the success of your business. Pricing strategy involves figuring out how much it costs you to make and deliver your product, adding your cost of doing business (including taxes), and then adding your desired profit margin.
Price is partly determined by the things you looked at in your market research: who your customers are, how much they will pay, how much your competition charges and your positioning statement.
Businesses must price their products between the ceiling (the highest price a customer will pay, based on perceived value) and the floor (the total cost of producing and delivering your product), while earning a desired level of profit. Underpricing can cause a business to fail. Overpricing can drive customers to lower-priced competitors, which can also cause a business to fail.
Customers will evaluate your products by some combination of price, value and quality:
Low price/high quality. This is an ideal profile because it balances price and quality in the customer’s favor. Many new businesses establish themselves in this way.
High price/high quality. As demand for a product increases, producers realize they can increase the price as long as the quality remains high. BMW, Rolex and Nikon are examples, as are some organic and green products.
High price/low quality. Companies with well-established products sometimes cheapen their goods while coasting on a quality reputation. (Once they’ve been disappointed, however, customers may not give these products another chance.)
Low price/low quality. This is typically used for disposable convenience goods where low price is the primary attraction. However, low price may not be enough to lure customers more than once if the quality falls below their definition of “standard.”
1.	Which pricing objective makes the most sense for your product? Why?
2.	Which pricing strategy makes the most sense for your product? Why? How will you set the price of your product?
3.	Will your price be high, average or low compared to the competition? How does this fit your brand identity and positioning?
4.	Explain how your pricing strategy fits in with the other parts of your marketing mix. Why is it right for your product? How will it affect promotion and placement?
5.	Explain how your pricing strategy fits your financial goals. How will it affect your business’s break-even point and profitability?
7.	What factors will influence your decision to change your pricing to maintain your target growth rate (e.g., recession, new competitors)? Explain your plans to review the effectiveness of your pricing strategies over the next three years.
Promotional Strategies Worksheet
Promotion is everything you do to let people know that your product exists. Promotional strategies are built around advertising, public relations, networking and other tools discussed in this session. We’ll start with some general promotional possibilities for your business. Then, we’ll research specific advertising tools and develop other promotional strategies.
Your business: |  | Example: Small restaurant.
Who is the target customer for this promotional campaign? (basic description)
|  | Busy working people.
What are the relevant characteristics of this group?
|  | About 60 percent women, 40 percent men.
|  | Average income is $40,000 per year.
|  | They only have an hour for lunch.
|  | They work at or near the local university.
|  | They’re surrounded by fast food restaurants.
What are their needs?
|  | They need lunch for $4 to $8.
|  | They need fast service.
|  | They need to stay near the university.
Which features and benefits will you promote to attract customers?
Features | Benefits | Features Healthy $4.99 lunch Served within 7 minutes Near university Made to order | Benefits Cheap, healthy food Customers won’t be late Saves time Personalized; healthier
What promotional methods can you use?
|  | Signs on the outside of my building and by the road (they drive by on the way to work).
|  | Radio ads during drive time (morning) and just before lunch (10:30 a.m. to 1 p.m.).
|  | Frequent buyer cards earn a free lunch after 10 punches (to get repeat business).
|  | Fliers at surrounding businesses and at the university.
Advertising Tools Worksheet
Here are the basic considerations when choosing advertising media:
Quality. Does this medium reach your target customers, and do they pay attention to it?
Cost. How much does it cost (per time used, or per contract) compared to other media?
Effectiveness. Does it increase customer traffic and sales?
Knowing your target markets, determining your trade area, and defining the features and benefits of your products should prepare you to choose the appropriate advertising tools. Although there are many ways of developing an advertising budget, here are three methods you should definitely not use:
Buying advertising as you go indicates there is no real plan or budget process in place. Overspending is the usual result.
Matching competitors’ advertising. Unless you have some insight into the effectiveness of their promotional strategies, you may be attempting to duplicate something that doesn’t work or that you can’t afford.
Spending whatever is left over on marketing. How can you be sure there will be anything left over? What if you are in an industry that relies heavily on advertising to promote sales? How will you measure effectiveness if you have no plan?
Instead, identify which advertising tools you want to use, and choose specific events or seasons during which you want to advertise. Then, use industry information as a gauge of what others in your industry have determined to be an “appropriate” annual advertising budget. A percentage of your annual sales can then serve as a target dollar amount, which you can check against the advertising budget you will develop from your list of specific marketing activities.
Advertising Tools Worksheet—continued
1.	What does your industry research say businesses like yours should be spending on advertising per month or per year (i.e., what percentage of gross sales)?
2.	For each advertising tool you’re considering, research how many target customers it’s likely to reach in your trade area. Research the monthly cost of each tool. To find out the cost per customer, divide Cost by Estimated Reach. Last, total the costs and decide which tools to use.
Tool | Estimated reach | Monthly cost | Cost per customer | Will I use it?
Newspaper ads
Classified ads
Magazine ads
Online ads
Online directories
Social media
Signage
Yellow Pages
Radio
Network TV
Cable TV
Newsletters
Brochures
Novelties (caps, pens, mugs, etc.)
Street corner ads / sign spinning
Other:
Estimated Annual Cost
3.	What percentage of your annual gross sales does the estimated total cost in Step 2 represent? How does that percentage compare to the industry standard you identified in Step 1? Is it too much or too little? If so, consider making changes to conform with industry standards.
Sales Promotions Worksheet
Sales promotions are tactics you can take to attract customers, move sluggish inventory, motivate intermediaries, or increase sales or profit margins. Consumer promotions target customers directly, while trade promotions target wholesalers, retailers and other intermediaries.
Common sales promotions include:
•	Coupons | •	Contests, games and prize drawings
•	Discounts and sales | •	Bundling complementary products
•	2-for-1 offers | •	Gifts and rewards
•	Frequent buyer cards | •	Geosocial promotions (e.g., Foursquare)
•	In-store events (tastings, free samples, demonstrations, classes) | •	Donating a percentage of each sale to a social cause
1.	Which consumer and trade promotions will you use? Why?
2.	How will you use sales promotions to enhance growth?
3.	How will you measure the effectiveness of your promotions? How often will you do this?
Business Commercial Worksheet
You’ll meet many new people as you launch your business, so you should decide in advance how to explain who you are and what your business does to solve customer problems. Preparing a short “business commercial” will help you come across as a professional. When used to raise money for a business, this is often referred to as an “elevator pitch.”
Here’s an example:
I’m Joe Smitty, the owner of Smitty’s Hand Car Wash. We specialize in hand-detailing luxury vehicles, whenever and wherever it’s convenient for our clients.
A business commercial should be no more than 15 seconds long.
Use the space below to write a business commercial you can use the next time you meet a new network contact. Explain what you do, how you do it and how you help your customers. Practice your commercial in front of a mirror, and try it out on friends and family.
Business commercial:
Public Relations and Networking Strategies Worksheet
Public relations is a planned effort to influence public opinion through honest, unpaid publicity efforts. Common events that present public relations opportunities include:
•	Company anniversary	•	Change of ownership
•	New employee hired	•	Awards received
•	Employee promotion	•	Event sponsored
•	Change of location	•	Charitable activities
•	Introduction of new products	•	Human interest stories
Once you choose an event, you can issue press releases, call the media, create brochures or other advertising tools, and talk about the activities in public. Here are a few low-cost or no-cost activities that can help promote public relations events:
•	Community education seminars	•	Meeting presentations
•	TV or radio talk shows	•	Briefings with news editors
•	Community bulletin boards	•	Participation in fundraising events
•	Enclosures in monthly statements	•	Articles in magazines and journals
•	Sponsorship of community athletic events	•	Displays
1.	List three possible public relations activities for your business. How can you make these activities newsworthy? (For example, could a press release get you an interview on local radio or TV?)
2.	What service or community clubs in your area offer good networking opportunities? (List the service organization or club name, as well as the key contact person. Also, explain why you chose these clubs.)
3.	Will you choose a charitable organization or a cause to support? If so, which one? How much time or money will you donate? How will you inform and involve the public? How will this aid your networking and growth strategies?
Placement Strategies Worksheet
Placement, or distribution, is the process of getting your products to your customers. There are two basic methods. Direct sales means distributing your products directly to the customer, either in person, through your own retail location, by mail order, or online. Indirect sales means using intermediaries, such as agents, sales reps, distributors or wholesalers. Intermediaries take a percentage of each sale; however, they may achieve a higher sales volume or save you time and money.
1.	How will you make your products available to potential customers in the startup phase of your new business opportunity? (Consider direct sales, distributors, sales reps, mail order, Internet, etc.)
2.	Why did you choose each distribution strategy described above? What are the costs and benefits? Why is it right for your customers and business location?
3.	Explain how your placement strategy fits in with the other parts of your marketing mix. Why is it right for your product? How will it affect your pricing, promotion and growth goals?

Worksheets Assignment for Session 6
You will need to complete all of the worksheets for this session before trying to write the Marketing Objectives, Strategies and Tactics section of your business plan. It’s also a good idea to complete and understand the Pricing and Break-Even Example on the next page, which will help you create a shrewd pricing strategy. As you learn more over the following sessions, you may need to revise your product and pricing strategies. Writing them down now will make this process easier.
Writing Your Business Plan
Use the information from this session to write the sections of the NxLeveL® Business Plan shown below. Start with the headings and subheadings just as they are shown here. Then, follow the instructions in italics under each subheading. Section IV. Marketing Plan C. Marketing Objectives, Strategies and Tactics Product Strategy Review the Product Strategies Worksheet and describe your mix of products and services. If you’re planning to sell only one product, explain why you made that choice and describe any service enhancements that will complement the product. If you’re selling more than one product, describe how they fit together in your product line, and explain why this mix of products is a good one for your target market. Product Positioning Review the Positioning Statement Worksheet and describe how you plan to position your product within your target market. Include your positioning statement, and explain why you think this is a good strategy given your customers and competitors. Branding and Packaging Look back at the Branding Worksheet and the Packaging Ideas Worksheet. Explain your brand identity and include your branding statement, if you have one. Explain why your brand identity will appeal to your target customers. Describe how you’ll package your product, and how you’ll “package” your business as a whole. Explain how your packaging reinforces your brand identity and positioning. Pricing Strategy Review the Pricing Strategy Worksheet. What are your pricing objectives? What pricing strategies will you use? Describe how you want your prices to compare with the competition. Also, explain how your pricing strategy fits in with the rest of your marketing mix, your product’s stage in its life cycle, and your branding strategy.

Writing Your Business Plan—continued
Placement Strategy Review the Placement Strategies Worksheet. Then, discuss the distribution strategies you’ve chosen. Explain why you picked these strategies, how they fit with the other elements of the marketing mix, and how they will get your products to your customers when and where they need them. Promotional Strategy Advertising Review the Promotional Strategies Worksheet and the Advertising Tools Worksheet. Describe the advertising tools you’ll use, and explain why you chose them. State the size of your advertising budget, and explain how you determined it. Explain how you plan to measure the effectiveness of the tools you chose. If you have specific advertising events in mind for the first year, describe them. Also, review your answers to the Sales Promotions Worksheet and describe any consumer or trade promotions you plan to use. Public Relations and Networking Review the Public Relations and Networking Strategies Worksheet. Discuss how public relations and networking will help your business. Describe any public relations events you will plan. Then, discuss any plans for community involvement and networking (clubs or organizations you may join, or planned participation in high-profile club or organization events). Other Promotional Tools Review the Advertising Tools Worksheet. What other promotional tools might you use besides advertising and public relations? You’re limited only by your imagination, so get creative! Explain why you think these promotional ideas would be good for your business. (You can also add online marketing strategies here after researching them in the next session.)

Pricing and Break-Even Example
You make personalized T-shirts. Your competitors sell a similar shirt for between $8 and $11. Therefore, you decide to price your T-shirt at $10. Let’s see how many T-shirts you must sell to cover your fixed and variable expenses, and thus to break even.
Here’s a list of your expenses:
T-shirt | $3.00 | Insurance per month | $50.00
Rent per month | $800.00 | Shipping expense | $ 0.50
Hourly labor | $1.00 | Bookkeeping per month | $100.00
Sales commission | $1.00 | Loan payment per month | $300.00
Telephone | $100.00
Now, sort these expenses into variable expenses and fixed expenses:
Variable Expenses |  | Fixed Expenses
| $ |  | $
| $ |  | $
| $ |  | $
| $ |  | $
| $ |  | $
Total Variable Expenses (per unit) | $ | Total Fixed Expenses (per month) | $
The contribution margin is the selling price per unit, minus variable expenses per unit. It represents the amount that each unit of sale contributes toward fixed expenses and profits.
What is the selling price of a T-shirt? |  | $ _________
What are the variable expenses for a T-shirt? | ( - ) | $ _________
What is the contribution margin? | ( = ) | $ _________
How much does each T-shirt you sell contribute toward your fixed expenses? | $ _________
What are your total fixed expenses for a month? | $ _________ per month
What is your contribution margin per T-shirt sold? | $ _________ per T-shirt
How many T-shirt sales will it take to pay for your monthly fixed expenses? | __________ T-shirts
(Fixed Expenses ÷ Contribution Margin = Number of shirts you must sell to break even.)
What happens to the break-even number if you decide to lower the price to $9?