The demographics and psychographics of an internet user tend to deviate from that of the traditional consumer, although the profile gaps have greatly narrowed in the recent 3 to 5 years, thanks to recent years’ extensive proliferation of the internet. These differences have given rise to an entire spread of marketing-based activity in cyberworld to generate income.

The unique characteristics of the Internet gives rise to new approaches to bring internet marketing to the next level. The internet has the unique ability to receive and provide response. In addition, it works very hard for you, 24 hours 7 days a week. Customers from all over cyber, of all time zones, are hence exposed to your products and services. By the same token, your potential customers can be reached round the clock, 24by7, enhancing go-to-market strategies. Hence, the internet has a global appeal which is capable of immediately expanding your target segment exponentially worldwide.

So how does one manage such an open market place? The traditional marketing rationales still apply, with additional internet-specific marketing strategies to boost. Both traditional and internet marketing strategies synergize to support the overall business model. A broad internet marketing model would include namely, Search Engine Marketing (SEM), display advertising, behavioral marketing, email marketing, newsletter marketing, affiliate marketing, blog marketing, viral marketing, CRM marketing etc.

Search Engine Marketing includes broadly keyword search, search engine optimization (SEO). I would consider keyword search and SEO as trend-mapping marketing model. By maximizing the exposure of certain related keywords, the internet crawlers and search engines would be able to better locate your site and materials and you are able to maximize your website profile and increase traffic for potential business generation.

Display advertising, namely CPA, PPC, is simply the internet version of your press ads and they cost less. There are ways to help you further narrow down your specific target segment. This is not to specially advertise for Google Adwords, but to highlight how display advertising works at a more efficient level. You create display ads, choose your relevant keywords, and when netizens Google search using one or some of your keywords, your ad may just appear in the search results. So you are effectively advertising to a very focused and interested target segment.

Behavioral Marketing tracks a user’s surfing or searching content & path on the web. Essentially, it bears resemblances to LSI, latent semantic indexing. They are then provided with relevant predefined categories of information which might interest them.

Small Business Email Marketing is all about list building, email delivery and tracking to help you keep in touch with customers, drive traffic to your site, sign up for newsletters or buy your products. With an active and high quality email list, you manage run email marketing campaigns. Should you intend to utilize email marketing as one of your tool, be reminded to apply permission marketing which lets you politely ask your customers to opt-in, which positions you as a considerate marketer who does not engage in spamming. Small business email marketing, when done correctly, could multiply your business many folds.

Affiliate marketing is the web-based version of physical network marketing. Affiliate marketing essentially leverages on the various online marketing approaches to maximize sales revenue, namely, search engine marketing, online display ads, email and newsletter marketing etc. The beauty of Affiliate marketing is that if done correctly, you can generate a comfortable income with low cost model and of course with a lot of hard work as well.

Viral marketing is essentially word of mouth marketing leveraging on the latest craze in social networking sites and Twitter. Social networking potentials or SNPs are members of such social websites which has great word of mouth marketing power.

To formulate successful Internet marketing strategies requires certain level of internet understanding, whilst not necessary IT-in depth. Such knowledge is easily acquired. More significantly, you must retain the primal creative instinct of a marketer.

For brick and mortar businesses, the Internet Marketing serves as an additional tool which adds ammunition for you to drive your revenue generating goals. However, if you run an online e-business, you will surely need to adopt a very focused Internet Marketing business model which utilizes much of the above tools mentioned.

Having carefully weighed the various models namely Target Segment Analysis, Product life cycle, Competitive Advantage Model, Product Growth Directions as well as the BCG Matrix and concluded the broad business strategies to adopt, we are now ready to explore Your Marketing Plan which will help you investigate your Marketing Mix (4Ps), Internet Marketing, Integrated Marketing Communications, Marketing Budget plan as well as Marketing Implementation plan.

1. Value Proposition > Unique Selling Point (USP) >> The Positioning Statement

Value propositions are product characteristics turned benefits. Your Value Proposition must be clear and to the point. Having defined your value proposition, you can craft the UPS. With creativity, you then come up with the Positioning Statement. Of course, your positioning statement must map to match your target segments identified in Part 1 of your marketing plan.

2. Marketing Mix (4Ps)

The 4Ps essentially denotes Product, Pricing, Promotion, Placement decisions which interplay to cumulatively create compelling value proposition, UPS and positioning statement for your potential customer.

Product decisions define the real physical product characteristics which might include your product brand name, quality, packaging, functions, after sales services, etc. Not that Product benefits give rise to USPs which allow you to provide your customers with a compelling purchase reason.

Pricing Decisions includes list, retail, wholesale, seasonal pricing, volume discounts, early-bird discounts, bundled pricing, flexible pricing, consignment options etc. Depending on your viability analysis strategies and in particular, your Competitive Advantage strategy and which you adopt in Marketing Plan Part 1, you might consider pegging your pricing with a cost leadership model, or cost focus model.

Placement Decisions essentially means distribution channels which you utilize to bring your products to your customers. Extent of coverage in your market could be defined by inclusive or exclusive or selective distribution. Distribution and warehousing centers, inventory management as well as logistics. Internal extension of sales distribution is a common consideration. If you are selling mass retail products, you might consider using a broad network of distributors to maximize your sales, hence the inclusive distribution approach. You may also need to decide on applicable warehousing, inventory and logistics methods which fit your mode of operations and budget.

Promotions Decisions is the final phase of the Marketing mix which, to certain extent could make or break a product. This is the phase whereby you successfully communicate your product to your target segments with communication tools available. Your promotional mix includes Advertising & Promotions, personal selling, sales promotions, public relations and publicity as well as sponsorships. Essentially, what promotional mix you apply to your business is largely determined by your marketing communications budget.

Advertising Strategies were traditionally considered to be an expensive medium, and it still is. One can, however, consider cross “advertising”, or what I might consider “barter-advertising” by cross-advertising in a collaborative channel partner’s newsletter and allowing your partner to cross-advertise in yours. Internet advertising if controlled well, could also generate better lead to sales potential.

Internet Marketing Strategies are the latest most popular approach to tap on huge potential business revenues. Driving Traffic is the key critical element in this equation. Check out more of this in Internet Marketing Category.

Personal Selling Strategies not only include individual sales persons, but more extensively of late – telemarketing as well as direct-marketing. To cascade you sales more exponentially, you may consider a mix remuneration package combining the benefits of network marketing model and the traditional sales force structure. (of course, do ensure clearance for authorities as certain countries may impose restrictions to this mode of sales structure)

Publicity is initiated by your company. It is the deliberate attempt to manage the public’s perception of your company or products. Publicity is internally created news for external dispersion to subtly portray the desired positive image. Publicity activities include speaking engagements at public seminars, contests, exhibitions, testimonials, interviews with the CEO, award presentations etc. Publicity could also take the form of free featured news and business information in trade magazines and websites to enhance company’s positioning. Sponsorship is a very effective exposure tool for the company, and monetary benefits could be exchanged for database listing from participant lists.

Events Management is a tool which many marketers tend to ignore and believe that they can manage the process should they be required to do so. Event management should instead be viewed as a tool for lead generation as well as positioning your business. Sometimes it can be closely tied to sponsorship where organsing events become a part of the “package”. Very few materials have been written in this area whereby ready-to-use templates may be tweaked to fit your business process.

About 70% of all businesses are Small Businesses. And you can never be more wrong should you feel that this viability analysis outline is only for corporate businesses. The framework below is met out for both segments with the basic fundamentals in place.

I have segregated the Business Viability Analysis into two major categories, namely Overview Evaluation models and Your Domain Business Evaluation models. The former includes Porter’s 5 Competitive Forces Model, P.E.S.T. Analysis. The latter includes SWOT Analysis Matrix, Target Segment Analysis, Product Life Cycle Analysis, Competitive Advantage Model, Product Growth Directions, BCG Matrix. Both set of models will help you to qualify if the business in question is viable from market demand supply as well as potential market perspectives.

1. Porter’s 5 Competitive Forces Model

Porter’s 5 Competitive Forces model is developed by Michael E. Porter, an important strategic analysis from a broad market environment perspective. It explores the 5 major factors namely Bargaining Power of Supplier, Customer Power/Buyer Power, New Entry Threats, Substitution Threats & Competition Rivalry.

These 5 forces are interdependent, influencing and interplaying with each other at any given point in time. This is a model which needs to be revisited on a consistent basis, usually, over a half yearly time frame for re-evaluation of market trend.

2. P.E.S.T. Analysis

Doing your “PEST control” ensures good health a strong pulse for your business. PEST analysis essentially means macro environmental evaluations such as Political & Legal, Economic, Social & Cultural, as well as Technological.

Economic environment could make or break your business. In 2008, the US sub-prime issue became a global financial crisis which not only affected the housing market but nearly every facet of the economy by virtue of its spillover effect. The interest rate at time of writing, is 2%, a far cry from 4% a year ago. Banks tighten their lending belts and business loan borrowing become more difficult to obtain. But if you manage to get that business loan, you should be incurring a much lower interest repayment.

One Social factor which is growing in importance is the environment. Every large corporation nowadays are involved in one way or another in reducing carbon emission to the ozone and in dealing with climate change.

3. SWOT Analysis Matrix

SWOT Analysis, is the acronym for Strengths, Weaknesses, Opportunities & Threats affecting your business. Strengths component analyses internal capabilities throughout all business functions which could become unique propositions when mapping out business strategies. Weaknesses analyses the internal gaps in current state. Likewise, Opportunities & Threats analyse your business’s external environment which could give rise to opportunities or threats to your business. This is a fluid cheat sheet (not totally exhaustive & you should add on to it to cater to your own business type) which should be revisited annually as a reality business stop-check.

4. Target Segment Analysis

This is a very critical section of the marketing plan which helps you with your market segmentation and defines your target markets. Define & segment your clientele-base into Primary & Secondary Target market groups using demographic and psychographic information. Demographic data includes age, income group, geographic location etc. Psychographic data includes life-stage needs, lifestyle, consumer purchasing behavior etc. Upon completion, you would have a better gauge on the potential size of your target segments. You may adjust the segments to match your products, thereby expanding your segments for greater potential.

5. Competitive Advantage Model

The Competitive Advantage Model by Michael E. Porter suggests 4 approaches benchmarking against your competitors namely, Cost Leadership, differentiation or focus with 2 variants.

Cost Leadership strategy means leading in a low cost pricing strategy within your industry. This is achieved from economies of scale. You must almost solely dominate this competitive space otherwise more than one company in this space will cause a price war.

Differentiation strategy indicates unique value proposition, namely in areas such as the product, service, image, distribution, marketing etc or a combination of them.

Focus strategy aspires to be the best in a focused segment, with 2 variants of cost focus and differentiation focus

6. Product Life Cycle Analysis

The Product Life Cycle Analysis helps you to identify the stage of your product. All products go through four stages, namely the Introduction, Growth, Maturity & Decline stage. Every product has a life cycle. You need to know each of your products’ life cycles thoroughly in order to plan to phase their life-stage across the horizon.

This analysis is a fluid document which needs to be revisited annually for planning purpose. If you believe that your product has other potential uses not maximized currently, you should pro-actively look to rejuvenating the life cycles of such products at their matured and declining stages.

7. Product Growth Directions

Product Growth Directions shed light on the possible growth approaches you can adopt in driving your product sales. This is a matrix which maps your product growth strategies across new vs existing markets and products. Potentially, the four segments are Market penetration, Market development, Diversification as well as Product Development. Market penetration essentially denotes leveraging new markets with existing products. Market development means making inroads on existing markets & products. Diversification indicates leveraging on existing markets with new products. And of course, Product development is expansion into new markets with new products.

8. BCG Matrix

Boston Consulting Group developed this BCG Matrix which helps you to determine what priorities should be given in your product portfolio of a product. It has essentially two dimensions – market share and market growth rate, with 4 categories fitting into these quadrants.

Stars = Leaders of the Business – Products with high growth rate & high market share. Generates high cashflow and requires high cash input. Usually, Net cashflow is flat.

Cash Cows = Foundation of the Business (stars of yester years) – Products with low growth rate & high market share. They generates high cashflow with low cash input requirements.

Dogs = Drags of the Business – Products with low growth rate & low market share. They must be avoided whenever possible. Liquidate as many as possible.

Question Marks = Ambiguity of the Business – Products with high growth rate & low market share. Have high cash demand and low returns. If keeping question marks, you must ensure increase in market share and deliver cash.

The identification of your products at the various categories will enlighten you to apply the correct growth & funding strategy. For instance, cash infusion could be provided to fund Question Marks &/or Stars to drive them towards the next level – Cash Cow positions.

True application of all the above mentioned viability analyses is a cumulative interplay of the different models, although they are developed separately by separate strategists. I advocate a broad yet conjugative approach to the application as therein lies great interdependence of each to the other.

Statistics show that Small Businesses take up about 70% of all businesses. Below is a comprehensive framework of Strategic Management applicable for small businesses in most industries. This is a step by step template attempts to cover as comprehensively as possible the critical analyse you will need to prepare your strategic management proposal. Since every business has its own peculiarities, you may use this structure and tweak it for your respective industry and business.  Almost every framework eventually focuses on small business marketing strategies. This will be the topic of our discussion throughout this blog, both online and offline.

1) SITUATIONAL ANALYSIS

• SWOT Analysis – Internal Factors
• Tangibles
• Physical Resources
• Intangibles
• Patents, R&D
• Brandname
• First Mover’s Advantage
• Organizational Capabilities
• People Power
• Functionality
• Vertical Integration, Backward integration, Horizontal integration
• Supply Chain Capabilities
• Partnerships, Strategic Alliances
• Weaknesses
• Unclear strategic direction
• Obsolescence
• Financial issues
• Lack of Tangible/Intangibles/Organizational Capabilities

Evaluating Resources

• Portability
• Demand
• Scarcity
• Appropriateness

SWOT Analysis – External Factors

• Competition
• Strategic Industry Groups
• Environmental Scan – PEST Analysis – Industry Economics
• Demand & Supply
• Risks; Capital costs vs variable costs
• Industrial Norms

Environmental Scan – PEST Analysis – Industry Transformations

• Globalization
• Technology
• Demographic Changes
• Psychographic Changes
• Regulatory Transformation / Deregulation
• Risk factors – War, Economic Downturns, Recession, Business Cycle Vulnerability

Porter’s 5 Forces – THREATS

• New Entry Threats
• Customer Power/Buyer Power
• Substitution Threats
• Supplier Power
• Rivalry

2) DEFINE STRATEGIC OPPORTUNITIES

• Define Business Vision & Mission Statement
• Core Values
• Core Purpose
• Visionary Goals
• Define Strategic Decisions
• Expansion Decisions in Scale or Scope or Diversification using the following:
• Target Segmentation Analysis
• BCG Matrix
• Product Growth Direction Strategies i.e. Ansoff Matrix
• Competitive Advantage Model
• Product Life Cycle Analysis
• Focus of Resources
• Set Goals, Product & Market Strategy, Business Strategy

The above are supported by:

• Strategic Drivers – “7S”
• Strategy
• Structure
• System
• Style
• Staffing
• Shared Values
• Skills

3) IMPLEMENTAITON

• Define Chosen Strategy – Expansion in Scale/ Scope/ Diversification with set timelines and milestones
• Apply decisions on the following:
• Major Competitive or Market Strategies Adopted
• Scope of Products mapping Target Markets needs
• Quality
• Pricing
• Branding
• Product Innovation
• Distribution
• Service

4)IDENTIFY, PRIORITIZE & IMPLEMENT CHANGE

• Priority via Achieving Competitive Advantage
• Market Segmentation
• Key Success Factors By Segment
• Access & Anticipate of Competitive Response
• Exploitation vs Competition
• Reinforce Culture & Improve Communications
• 3 Phase Planning – Short, Mid, & Long Term Plan

5) CONTINGENCY PLANNING

• Scaling Down strategies should original plan meets with unforeseen financial or economic crisis
• Plan an exit strategy should the original plan fails

6) CONTINUOUS MONITORING WITH PRE-DETERMINED TIME LINE

Review Strategy – 3 Phase Planning – Short, Mid, & Long Term Plan

• Improve
• Monitor