1. Business Planning for Entrepreneurs

2. The Market Planning Process Market planning is the process of – Identifying your customers – Defining their needs, wants and expectations – Developing your strategies and tactics for satisfying them.

3. Pricing Pricing is a balancing act – You must support your costs – While meeting your customer’s limits – And giving you your desired profit.

4. How Do I Set a Price Supply and Demand (Equilibrium Price) Economics of One Unit Breakeven Analysis plus desired gross profit (Breakeven units = Fixed cost / gross profit per unit)

5. Pricing Basics Price Quantity Supply Demand Equilibrium (Market) Price $1 $20 1 100 Breakeven Price Profit- Maximizing Quantity Breakeven Quantity

6. Pricing Strategies Markup Pricing Penetration Pricing Price Skimming

7. Pricing Strategies Continued Follow the Leader Price Lining Variable Pricing

8. Product (or Service) Bundle of attributes that a customer perceives Package of value from the various features, benefits, and intangible rewards

9. Types of Products / Services Convenience goods/services Shopping goods/services Specialty goods/services

10. Product/Service Planning Strategy Product Mix and Positioning Product life Cycle Product Branding

11. Promotion The Ultimate Goal: increase sales Purposes of Promotions: – Communicate information – Position products/services – Add value – Control sales volume

12. Promotional Mix of Tools Advertising Sales Promotions Publicity Personal Selling

13. Principles of Selling Make a good personal impression Know your product or service Believe in your product or service Know your field (company, industry) Know your customers Make an appointment Treat everyone you sell to like gold Think positively Keep good records Make no truly “cold” calls Prepare your sales presentation

14. Place / Distribution Channels of Traditional Distribution and Intermediaries Warehousing and Transportation Operations

15. Location Planning Importance of Location Key Factors in Location Decisions Challenges in Designing and Equipping the Physical Facilities

16. Internet-Based Businesses Perhaps the hottest and fastest growing area of entrepreneurial activities Essential technologies for success in I-business – Traffic-driving technologies Search engines, directories, listfeed programs, viral affiliate marketing, targeted e-mail, wireless mobile e-commerce – Site-enhancing technologies Personalization, shopping wizards, multiple currencies, real-time access to order/inventory status, content management solutions – Customer-servicing technologies Real-time pre-sales chat, multi-channel customer service

17. Ascent of Internet-Based Businesses E-intermediaries: on-line service providers Functions – Collect and present information – Help deliver internet products

18. Types of E-Intermediaries Syndicated Sellers Shopping Agents Electronic Retailing

19. Electronic Storefronts Electronic Catalogs Cybermalls Interactive and Video Marketing

20. Activities Business Plan Question 29 to 35 Debate: Internet-based businesses – Fad or Future? (3 groups: 2 debaters, 1 observe/eval)