On 6 December 2019 SCI held its entrepreneurial training day for this year’s Bright SCIdea Challenge. The first article in our How to series will take a look at what we learned from Neil Simpson, R&D Director at Borchers, in his training session on how to market and brand your idea.
In order to successfully promote a product or service, it is essential to understand the customer and the market. It is important to be more effective than your competitors in creating, delivering and communicating your idea.
Segmentation, Targeting and Positioning (STP) is a useful tool to help you to define your product and customer base.
When segmenting your customer base, consider the demographics including age, income and gender, as well as their geographical location and behavioural traits.
Once you have segmented your customer base, you will be able to identify which groups are the most suited for your product.
After you have considered which segments to target, you need to take into consideration what your product solves for these people – what is your unique selling point?
The 4 Ps – Marketing Mix
Once you have used the STP framework to define your product and customer base, you can use the 4 Ps Marketing Mix to develop a strategy to bring your product to the market.
Product – This can be a tangible product, for example clothing, or a service. You should consider: What does your product stand for? What needs does it satisfy? How does it differ to your competitors?
Price – It is vital to think carefully about the pricing of your product. Do you compete on price or quality? Consider the perceived value of your product, along with supply costs and competitors’ prices. Pricing your product too high or too low could harm your sales and reputation.
Place – Where is the best location to provide your product to your customer base, and how do you distribute it to them? If you understand your customer base, you will be able to answer important questions such as: Where do your target customers shop? Do they buy online, or in high street shops?
Promotion – What is the most effective way to market your product and which channels should you use? Will you run a social media and email campaign? Would you benefit from attending conferences and exhibitions?
Finally, a useful tool to analyse your current position is the SWOT model. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths – How are you perceived by your customer base? What separates you from your competitors?
Weaknesses – What do others see as your weaknesses? What do your competitors do better than you?
Opportunities – What are current market trends? Are there any funding opportunities you could apply for? Are there any gaps in the market?
Threats – Are there any emerging competitors? Do you have any negative media or press coverage?
Using STP, the 4 Ps, and SWOT will be invaluable when it comes to completing your business plan. The more you understand your product, your customer base, where you sell it, and how you sell it, the more successful you will be!