1. 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.

2. 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.

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

13. 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

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

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

16. 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

17. 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.

18. 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

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

20. 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

21. 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 & $$

22. 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

23. 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

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