BZUPAGES.COM Written Statement Of Marketing objectives, strategies and Activities to be followed in Business Plan
BZUPAGES.COM MP responds to three Q’s Where have we been ? Where are we going ? How do we get there ? ‘E’ conduct market research to respond to these Q’s Research involves Secondary / Primary data process
BZUPAGES.COM Who will buy the product or service ? What is the size of the potential market ? What price should be charged ? what is the most appropriate distribution channel ? What is the most effective promotional strategy to reach and inform potential customers ? Market Research involves gathering of data in order to determine such information: Market Research involves gathering of data in order to determine such information:
BZUPAGES.COM Step One: Defining the Purpose or Objectives Step Two : Gathering Data from Secondary Sources Step Three : Gathering Information from Primary Sources Step Four: Analyzing and Interpreting the Results
BZUPAGES.COM Sit down & Make a list of the information that will be needed to prepare the marketing plan. Ex: ‘E’ may think there is a market for his product but is not sure who the customers will be So ask people what they think of the product or service and if they would buy it & background demographics How much potential customers would be willing to pay for the product or service Where the potential customers would prefer to purchase the product or service Where the customer would expect to hear about or learn about such a product or service
BZUPAGES.COM Newspaper articles- Libraries: Government agencies- Trade magazines: dept & Chamber of commerce Internet Dept & Chamber of Commerce Local Banks/ Dept of Labor Local Media
BZUPAGES.COM Data collection procedures Observation : record customers buying behaviors interviewing: telephone- Mail- personal focus groups: 10-12 potential customers Questionnaire: sample questionnaire
BZUPAGES.COM Can be hand-tabulated or entered on a computer Results should be evaluated and interpreted in response to the research objectives Data can be cross-tabulated in order to provide more focused results. Example: Entrepreneur compare results of Q’ by different Age, Occupation, Location- fine tuning can provide valuable insights particularly regarding the segmentation of the market
Designed to provide answers to three basic questions: Where have we been?(operational plan) Where do we want to go (in the short term)? How do we get there? History of marketplace Marketing Strengths & Weaknesses of the firm Market Opportunities & Threats ‘Q’ addresses marketing Objectives & Goals- in next 12 months Q discusses Marketing strategy implementation- when it will occur- who will be responsible for monitoring
BZUPAGES.COM A marketing plan should: Provide a strategy. Be based on facts/assumptions Be simple and short. Be flexible. Specify criteria for control. Assignment “Exams”
BZUPAGES.COM Combination of product, price, promotion, and distribution and other marketing activities needed to meet marketing objectives. Marketing Mix Variable Critical Decisions Product Quality of components or materials, style, features, options, brand name, packaging, sizes, service availability, and warranties. Price Quality image, list price, quantity, discounts, allowances for quick payment, credit terms, and payment period. Channels of distribution Use of wholesalers and/or retailers, type of wholesalers or retailers, how many, length of channel, geographic coverage, inventory, and transportation. Promotion Media alternatives, message, media budget, role of personal selling, sales promotion (displays, coupons, etc.), and media interest in publicity.
BZUPAGES.COM Define the business situation. Define the target market: opportunities and threats. Consider strengths and weaknesses. Establish goals and objectives. Define marketing strategy.
BZUPAGES.COM Information for a new venture: Describe how the product or service was developed. Why it was developed.(satisfy consumers needs) Information after a new venture has started up: Present market conditions. Performance of the company’s goods and services. Future opportunities or prospects.
BZUPAGES.COM Target market: specific group of potential customers toward which venture aims its marketing plan. Knowledge of this provides a basis for determining the appropriate marketing action strategy. Market segmentation: process of dividing a market into definable and measurable groups for purposes of targeting marketing strategy Otherwise ‘E’ have to identify a product or service that would meet the needs of everyone in the marketplace Allows the entrepreneur to more effectively respond to the needs of more homogeneous consumers.
BZUPAGES.COM Decide on general market or industry to pursue. Henry ford manufactured a single product(one color, one style, one size, etc) Reebok Discovered that many customers who bought running shoes were not athletes (comfort & Style) Divide market into smaller groups based on: Characteristics of the customer Geographic Demographic Psychographic Buying situation Desired benefits (e.g., product features) Usage (e.g., rate of use) Buying conditions Awareness of buying intention
BZUPAGES.COM Select segment or segments to target. Develop a marketing plan integrating product, price, distribution, and promotion. Restaurant market is segmented by state, type of restaurant (fast food, family) R part of hospital, school, company etc
BZUPAGES.COM Establish realistic and specific goals and objectives. Marketing goals and objectives respond to the question: “Where do we want to go?”. ( market share, profits, sales, number of distributors, new product launch, pricing policy, sales promotion & advertising support). Number of goals or objectives can be limited to between six and eight.
Specific activities outlined to meet the venture’s business plan goals and objectives. Product or service May consider more than the physical characteristics. Packaging, brand name, price, warranty, image, service, delivery time, features, style, and even the Web site.
BZUPAGES.COM Distribution Provides utility to the consumer. Must also be consistent with other marketing mix variables.
BZUPAGES.COM Promotion Entrepreneur needs to inform potential consumers about the product’s availability or to educate the consumer Methods include: print, radio, or television, Internet, direct mail, trade magazines, or newspapers.