Section Objectives Identify the purpose of the marketing plan. Name the five marketing strategies that make up the marketing mix. Describe the part that marketing tactics play in the marketing plan.

The Main Idea To succeed and grow, a business must have a marketing plan with realistic objectives, the proper mix of the five Ps, and an action plan for implementation.

Content Vocabulary marketing plan marketing objectives marketing mix brand package label product positioning product mix channel of distribution intermediaries intensive distribution selective distribution exclusive distribution marketing tactics

The Marketing Plan Marketing Objectives product introduction or innovation team organization sales or market share Marketing Objectives projected profitability advertising distribution pricing 4

Forming Marketing Objectives A convincing marketing plan includes a rationale for your selection of marketing strategies and tactics. marketing plan a plan used by a business to guide its marketing process to a desired conclusion based on information obtained through market research and target market decisions A blueprint to guide marketing activities

The Marketing Plan A successful marketing plan contains specific marketing objectives. Examples: Create awareness of your brand Build a repeat customer referral base marketing objectives what a business wants to accomplish through its marketing efforts

Developing the Marketing Mix Developing a marketing mix enables an entrepreneur to map out how to accomplish marketing initiatives. marketing mix the five marketing strategies used to reach a market: product, place, price, promotion, and people

The Product Strategy The product strategy deals with the goods or services your business will provide. Product considerations include: features and benefits branding, packaging, and labeling selection positioning mix

The Product Strategy A product’s brand, package, and label serve as strategies for maintaining customer loyalty. label the part of the package used to present information about the product brand the name, symbol, or design used to identify a product package the physical container or wrapper used to present information

The Product Strategy Branding, packaging, and labeling can have a bearing on product positioning. Prestigious (high end) Bargain High quality product positioning how consumers see a product in comparison to another product

The Product Strategy Positioning can be achieved through quality, availability, pricing and uses. Branding, packaging and labeling can have an impact on product’s image so also on positioning of the product.

The Product Strategy The final consideration in your product strategy is determining your company’s product mix. product mix all of the products a company makes or sells

The Place Strategy The place strategy deals with how you will deliver your goods and services to customers.

The Place Strategy Place strategy considerations include: channels of distribution intensity of distribution transportation location, layout, and availability

The Place Strategy To formulate a place strategy, the entrepreneur needs to understand the channel of distribution. channel of distribution the path a product takes from producer or manufacturer to final user or consumer

The Place Strategy There are two basic types of channels of distribution in the place strategy—direct and indirect.   A direct channel moves a product from producer to customer with no other businesses involved.

The Place Strategy An indirect channel of distribution employs intermediaries. The more intermediaries involved in the place strategy the higher the price of the product intermediaries people or businesses that move products between producers and final users, including wholesalers, retailers, distributors, and agents

Channels of Distribution The Place Strategy Channels of Distribution Direct Producer Consumer Indirect Producer Consumer Intermediary 19

The Place Strategy There are three ways to distribute a product: exclusive distribution placement of a product where its number of sales outlets are limited to one per area selective distribution placement of a product where its number of sales outlets are limited in an area intensive distribution placement of a product in all suitable sales outlets intensive distribution selective distribution exclusive distribution

The People Strategy The people strategy involves assembling, preparing, and maintaining the people who will help the business achieve success. Make sure to hire people who can help you reach your marketing objectives Developing employees – orientation and training Maintain a healthy productive environment – respect and trust Reward your employees – show appreciation through words & $$

The Price Strategy The price strategy is a financial decision and a marketing strategy that affects the customer’s motivation to buy. Make sure your costs are covered! Impacts customer’s motivation to buy Price too high and you might turn away customers Price too low and they may see your product as low quality

The Promotion Strategy The promotion strategy is designed to tell potential customers about a business’s products and their characteristics, benefits, and availability. Might include: Advertising Publicity Sales Promotion Internet Marketing Personal Selling

Marketing Tactics To apply marketing strategies, entrepreneurs employ marketing tactics. marketing tactics activities that are taken to carry out a marketing plan