1. Unit B Planning and Preparing to Manage a Small Business
Competency 5.00
Understand pricing, promotion, and market planning.

2. 5.06 Employ marketing information to develop a marketing plan.
Market Planning
5.06 Employ marketing information to develop a marketing plan.

3. The Basics of a Marketing Plan
Marketing Objectives
Marketing Budget
Marketing Metrics
Sales Forecasting

4. The Marketing Objectives
Increase in sales
What you want to achieve
Keeps the business focused on the goals.
Specific:
Example: Increase profit by 6% next year.

5. How to set SMART goals

6. The Marketing Budget Develop AFTER determining objectives.
Helps to control spending.
What is cost of marketing activities?
Use the percentage-of-sales method =
Allocate a certain amount based on goods and services sold the previous year.

7. Marketing Metrics A measurement tool…
Statistical measurements by which companies judge effectiveness
Gauge market’s buying habits and attitudes…compared to profitability
Must relate to objectives of Marketing Plan

8. Marketing Metrics
Businesses select tools that will help compare current market share to market potential.
Must relate to objectives of Marketing Plan

9. Sales Forecasting Used as a standard of measurement.
What is competitor’s market share?

10. External Factors Affecting Forecast
Inflation? Lower forecast. (quantitative)
Increase in population in area. (quantitative)

11. Strategies for Forecasting
Ask experienced sales people. (qualitative)
Opinions of industry experts. (qualitative)