1. ENTR 452 Chapter 8: The Marketing Plan

2. UNDERSTANDING THE MARKETING PLAN
Written statement of marketing objectives, strategies, and activities
Provides answers to three basic questions
Where have we been?
Where do we want to go (in the short term)?
How do we get there?

3. STEPS FOR A MARKET RESEARCH STUDY
Define the purpose or objectives
Gather data from secondary sources
Gather information from primary sources
Analyze and interpret the results
You should be analyzing the industry and the competition.

4. PRIMARY RESEARCH - Customer surveys and questionnaires - Focus groups
- Daily transactions (company records)
- Suggestion boxes/systems
- Contacting suppliers about trends
- Customer advisory panel
- Surveying customers that have not purchased recently

5. SECONDARY RESEARCH - Internet - Business directories/Direct-mail lists
- Demographic information (census data)
- Government forecasts
- Market research conducted by other organizations
- Magazine and journal articles
- Local data (Chamber of Commerce, City Hall)

6. FOUR OBJECTIVES OF A MARKETING PLAN
1. Should determine customer needs and wants through market research.
2. Should pinpoint the specific target market the company will serve.
3. Should analyze the firm’s competitive advantages and build a marketing strategy around them.
4. Should help create a marketing mix (4 P’s) that meets customer needs and wants.

7. PRODUCT What is it? Stage of development (product life cycle) Features
Quality
Packaging
Branding
Guarantees
Assortment

8. PLACE Location Methods/channels of distribution “Middlemen” Storage
Transportation

9. PRICE List price Credit terms Discounts Selection and allowances
Consider cost structure, market acceptance, and desired image
Alternative pricing strategies (skimming, exploiting the experience curve, meeting the market price, achieving maximum market penetration, “low ball” strategy).

10. PROMOTION Promotion blend - Advertising - Media - Copy/Press Releases
- Timing
Personal selling
- Training
- Motivation
Publicity/Buzz

11. STEPS IN PREPARING THE MARKETING PLAN
1. Defining the business situation
Situation analysis: Describes past and present business achievements of new venture
After the start of venture, information should relate to:
Present market conditions
Performance of the company’s goods and services
Future opportunities or prospects

12. STEPS IN PREPARING THE MARKETING PLAN
2. Defining the target market/opportunities and threats
Target market: Specific group of potential customers toward which the venture aims its marketing plan
Market segmentation: Dividing a market into definable and measurable groups for purposes of targeting marketing strategy
Identify strengths and weaknesses in the target market

13. STEPS IN PREPARING THE MARKETING PLAN
3. Establishing goals and objectives
Marketing goals and objectives: Statements of level of performance desired by new venture
Respond to the question, “Where do we want to go?”
Organizational goals should:
Represent key areas
Be limited in number (between six and eight)

14. STEPS IN PREPARING THE MARKETING PLAN
4. Defining marketing strategy and action programs
Marketing strategy and action plan
Specific activities outlined to meet the venture’s business plan goals and objectives
Product or service
Describe the product or service

15. STEPS IN PREPARING THE MARKETING PLAN
Pricing - Three important elements include
Costs
Margins or markups
Competition
Distribution
Evaluate the choice of distribution channel
Promotion
Identify the medium to inform potential consumers about the products

16. STEPS IN PREPARING THE MARKETING PLAN
5. Marketing strategy: Consumer versus business-to-business markets
Business-to-business markets - Selling products or services to another business
Consumer markets - Sales to households for personal consumption

17. STEPS IN PREPARING THE MARKETING PLAN
6. Budgeting the marketing strategy
Identifying costs to meet desired goals and objectives
7. Implementation of market plan
8. Monitoring the progress of marketing actions
Tracking results of the marketing effort
Preparing for contingencies

18. STEPS IN PREPARING THE MARKETING PLAN
9. Understand weaknesses in market planning
Poor analysis of the market and competitive strategy
Unrealistic goals and objectives
Poor implementation of the outlined plan actions
Unforeseen hazards like weather or war

19. (from other industries)
5-FORCES MODEL
Substitute Products
(from other industries)
Buyers
Suppliers of
Key Inputs
Potential New
Entrants
Rivalry Among
Competing Firms 19

20. WHY SOME MKTG PLANS FAIL
Lack of a real plan
Lack of adequate situation analysis
Unrealistic goals
Unanticipated competitive moves, product
deficiencies and acts of God