MARKETING ASPECT

 The Marketing Plan section explains how you’re going to get your customers to buy your products and/or services.  Marketing Plan (4 P’s)  Product and/or Services and your Unique Selling  Proposition  Pricing Strategy  Sales/Distribution Plan  Advertising and Promotions Plan

MARKETING PLAN  Products and/or Services  Focuses on the uniqueness of you product or service.  How the customer will benefit from using the products or services you’re offering.

MARKETING PLAN  Products and/or Services  What are the features of your product or service?  Describe the physical attributes of your product or service, and any other relevant features, such as what it does, or how your product or service differs from competitive products or services.  How will your product or service benefit the customer?  Brainstorm as many benefits as possible to begin with.  Choose to emphasize the benefits that you targeted customers will most appreciate in your marketing plan.

MARKETING PLAN  Products and/or Services  What is it that sets your product or service apart from all the rest?  What is your Unique Selling Proposition  The message you want your customers to receive about your product or service  Communicating this central message to your customers (the heart of your marketing plan)

MARKETING PLAN  Pricing Strategy  Portion of the marketing plan involves determining how you will price your product or service.  The price you charge has to be competitive but still allow you to make a reasonable profit.  Set a “reasonable price”.  There is a limit as to how much the consumer is willing to pay.  Needs to take the customer threshold into account.

MARKETING PLAN  Pricing Strategy  “How do you know what price to charge?”  Calculating your cost  Estimating the benefits to consumer Examining how much it cost you to produce the product or service and adding a fair price for the benefits that the customer will enjoy.  Comparing your products, services, and prices to others that are similar Examining what others are changing for similar products or services will guide you when you figuring out what a “fair” price for such.

MARKETING PLAN  Pricing Strategy  What is the cost your product or service?  Include all your fixed and variable costs Fixed costs are costs that are independent of output. These remain constant throughout. (example – rent) Variable costs are costs that vary with output. Variable costs may include wages, utilities, materials used in production.  Include freight costs, administrative costs, and/or selling costs.

MARKETING PLAN  Pricing Strategy  How does the pricing of your product or service compare to the market price of similar products or services?  Explain how the pricing of your product or service is competitive.  Lower price.  Higher price (customer’s willingness to pay?) Will your business be more competitive if you charge more, less, or the same as you competitors

MARKETING PLAN  Pricing Strategy  New Product Strategies  Competitor-Based Pricing  Product-Mix Pricing Strategies  Price Adjustment Strategies

MARKETING PLAN  Pricing Strategy  New product Strategies Market Penetration – the company initially sets a low price for its product in order to enter the market quickly that is to attract large number of buyers and capture a large market share in the process. Market Skimming – under this approach the company initially sets high prices to skim revenues layer by layer from the market.

MARKETING PLAN  Pricing Strategy  Competitor-Based Pricing Going-rate pricing – in this pricing approach, a company bases its price largely on the prices of the competitors without due regard to its own costs and to its own demand.

MARKETING PLAN  Pricing Strategy  Product-Mix Pricing Strategies Product line pricing – this a pricing approach applicable to firms that develop product lines rather than single products. In this type of pricing, the firm may set different prices for its product line depending on the feature assortment. Optional-Product pricing – this approach offers to sell optional or accessory products along with the main product.

MARKETING PLAN  Pricing Strategy  Product-Mix Pricing Strategies Captive-Product pricing – instead of offering accessories to the main product, captive-product pricing would offer products that are essential to the main product itself. By product pricing – a by product pricing is a surplus product or item coming from the main product itself. Some companies decide to market by-products and deduct the proceeds of the by product from the price of the main product. Product bundle pricing – a company combines several of its products into a bundle and offers the bundle for sale at a reduced price.

MARKETING PLAN  Pricing Strategy  Price Adjustment Strategies Discount pricing  Cash discounts – this is being given to buyers who pay their bills on time  Quantity discounts – these are price reductions given to a buyer who purchases a product in large volumes.  Seasonal discounts – price deductions given to buyers who purchase a product or services that are out of season.

MARKETING PLAN  Pricing Strategy  Price Adjustment Strategies Segmented pricing  Customer-segment pricing – is a strategy in which different customers pay different rates or prices for the same product/service Example: Enchanted Kingdom charges different rates for children, students, adults, and senior citizens.

MARKETING PLAN  Pricing Strategy  Price Adjustment Strategies Segmented pricing  Product form pricing – is another strategy in which different versions of a product or service are price differently, but not according to differences in their costs. For instance, an ordinary stand fan may be sold at the same stand which has an added feature, like timer that costs to install may be sold at

MARKETING PLAN  Pricing Strategy  Price Adjustment Strategies Segmented pricing  Location pricing – different location are priced differently, even though the cost of offering each location is the same.  Time pricing – varies the price of a certain product or service according to time and season of the year.

MARKETING PLAN  Sales and Distribution Plan  The primary goal of the marketing plan is to get people to buy your products or services. The Sales and Distribution part of the marketing plan details how this is going to happen.  Three parts to the Sales and Distribution section of the marketing plan:  Outline the distribution methods to be used.  Outline the transaction process between your business and your customers.  If it’s applicable to your business, outline your sales strategy.

MARKETING PLAN  Sales and Distribution Plan  Outline the distribution methods to be used.  How is your product or service going to get to the customer?  For instance, will you distribute your product or service through a Web site, through the mail, through sales representatives, or through retail?  What distribution channel is going to be used?  In a direct distribution channel, the product or service goes directly from the manufacturer to the customer.  In a one stage distribution channel

MARKETING PLAN  Sales and Distribution Plan  Outline the distribution methods to be used.  What distribution channel is going to be used?  In a direct distribution channel, the product or service goes directly from the manufacturer to the customer.  In a one stage distribution channel it goes from manufacturer to retailer to customer.  The traditional distribution channel is from manufacturer to wholesaler to retailer to customer.

MARKETING PLAN  Sales and Distribution Plan  Outline the distribution methods to be used.  Outline all the different companies, people and/or technologies that will be involved in the process of getting your product or service to your customer.

MARKETING PLAN  Sales and Distribution Plan  Outline the distribution methods to be used.  What are the delivery terms?  How will the distribution methods affect production time frames or delivery? ( How long will it take to get your product or service to your customer? )  If your business involves selling a product, you should also include information about inventory levels and packaging in this part of your marketing plan.

MARKETING PLAN  Sales and Distribution Plan  Outline the distribution methods to be used.  For instance:  How are your products to be packaged for shipping and for display?  Does the packaging meet all regulatory requirements (such as labelling?)  Is the packaging appropriately coded, priced, and complementary to the product?  What minimum inventory levels must be maintained to ensure that there is no loss of sales due to problems such as late shipments and back orders?

MARKETING PLAN  Sales and Distribution Plan  Outline the transaction process between your business and your customers.  What system will be used for processing orders, shipping, and billing?  What methods of payment will customers be able to use?  What credit terms will customers be offered? If you will offer discounts for early payment or impose penalties for late payment, they should be mentioned in this part of your marketing plan.

MARKETING PLAN  Sales and Distribution Plan  Outline the transaction process between your business and your customers.  What is your return policy?  What warranties will the customer be offered? Describe these or any other service guarantees.  What after-sale support will you offer customers and what will you charge (if anything) for this support? Is there a system for customer feedback so customer satisfaction (or the lack of it) can be tracked and addressed?

MARKETING PLAN  Sales and Distribution Plan  If it’s applicable to your business, outline your sale strategy.  What types of sales people will be involved (commissioned sales people, product demonstrators, telephone solicitors, etc.)?  Describe your expectations of these sales people and how sales effectiveness will be measured.  Will a sales training program be offered? If so, describe it in this section of the marketing plan.  Describe the incentives sales people will be offered to encourage their achievements (such as getting new accounts, the most orders, etc.)

MARKETING PLAN  Advertising and Promotion Plan  Describes how you’re going to deliver your Unique Selling Proposition to your perspective customers.  Think first of the message that you want to sent to your targeted audience.  Look at these promotion possibilities and decide which to emphasize in your marketing plan.

MARKETING PLAN  Advertising and Promotion Plan  Advertising – the best approach to advertising is to think of it in terms of media and which media will be most effective in reaching your target market. Then you can make decisions about how much of your annual advertising budget you’ve going to spend on each medium.

MARKETING PLAN  Advertising and Promotion Plan  What percentage of your annual advertising budget will you invest in each of the following: InternetTelephone books/directories TelevisionBillboards RadioBench/bus/subway ads NewspapersDirect mall MagazinesCooperative advertising with wholesalers, retailers or other business?

MARKETING PLAN  Advertising and Promotion Plan  Sales Promotion – if it’s appropriate to your business, you may want to incorporate sales promotion activities into your advertising and promotion plan, such as: Offering free samples Coupons Point of purchase displays Product demonstrations

MARKETING PLAN  Advertising and Promotion Plan  Marketing Materials – every business will include some of these in their promotion plans. The most common marketing material is the business card, but brochures, pamphlets and service sheets are also common.

MARKETING PLAN  Advertising and Promotion Plan  Publicity – describe how you plan to generate publicity. While press releases spring to mind, that’s only one way to get people spreading the word about your business.  Consider: Product launches Special events, including community involvement Writing articles Getting and using testimonials

MARKETING PLAN  Advertising and Promotion Plan  Your Business’ Web Site – if your business has or will have a website, describe your website fits into your advertising and promotion plan.  Tradeshows – tradeshows can be incredibly effective promotion and sales opportunities – if you pick the right ones and go equipped to put your promotion plan into action.  Other Promotion Activities Your goal is to plan and carry out a sequence of focused promotion activities that will communicate with your potential customers.