Marketing Plan Example
Our marketing plan example now turns to 6. Pricing, Positioning & Branding.
Firstly, the best definition of positioning that I have heard is choosing a marketing niche for a product, considering “the marketing mix” price, promotion, distribution, packaging, competition, marketplace needs’. Here we are considered with i) Price Positioning and ii) Brand Positioning.
There are several elements to consider in deciding your pricing strategy. Costs, demand, competition, desired profit margin and external factors. Your strategy may be to be the cheapest available in the market. The stack them up high and sell them cheap philosophy. Or it could be that there is a value placed on your product or service due to your own name maybe – Jimmy Choo would be a good example. An ex-MD of Thomson Holidays once said he would prefer to ‘Sell one holiday at a million pounds than a million Holidays for a pound each’.
Remember that the competition will be watching you like a hawk. They will observe with interest how your pricing strategy sits in the market place and will react accordingly.
Stating the obvious but it is possible to offer discounts on a higher price, whereas at a rock bottom position it is very, very difficult to increase your prices. Exceptions would be general increases in costs that also affect your competitor(s) and also if your competitor(s) increase their own prices that give you some ‘wriggle room’ to increase also.
It would be an understatement to say that pricing is one of the biggest issues you will have to get to grips with. Get it right and it will make sales all the more easier. Get it wrong and well, quite frankly, you’re ‘stuffed’.
A site called Brand Doctors states that ‘The object of positioning a brand is to cause people to feel that there is no completely satisfactory substitute for the brand’.
An interesting book to read is Anyone Can Do It by Sahar and Bobby Hashemi, the co-founders of the Coffee Republic coffee shop chain. They write much about how important building a brand was for their business. Starting with a recognisable logo (and working with a limited budget) that would be featured on everything from headed stationery to uniforms, mugs and napkins. It had to speak of quality for gourmet coffee (their product) was essentially an affordable luxury. Their brand positioning was therefore up market. Someone like Tesco, for example have (despite their size and profitability) kept things simple. Their logo reflects their brand and its position in the grocery trade. They have probably placed as much emphasis on their strap line – “Every Little Helps” – as part of their brand positioning. It says look at us we price competitively and care about your increasingly thinly spread household budgets.
Be in no doubt that your brand – name and logo – and where you position it in the market place can be critical to the success of your business. Think hard about where you wish your business to be and where it would best stand in order to flourish.
So then our marketing plan sample now moves on to 7. Budgets
The First Steps In Your Market Planning Strategy
Definitions Of Marketing
Preparing Your Small Business Marketing Plan
Small Business Marketing Plans Stage 2
Small Business Marketing Strategy
Direct Business Marketing Plan
Sample Marketing Plan – SWOT Analysis
Outlining For Budgets
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