1. Chapter 8 The Marketing Plan McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
To understand the relevance of industry and competitive analysis to the market planning process
To describe the role of marketing research in determining marketing strategy for the marketing plan
To illustrate an effective and feasible procedure for the entrepreneur to follow in engaging in a market research study

3. Learning Objectives
To define the steps in preparing the marketing plan
To explain the marketing system and its key components
To illustrate different creative strategies that may be used to differentiate or position the new venture’s products or services

4. Industry Analysis
Provides knowledge that can affect marketing strategy decision making
Identifies competitors’ strengths and weaknesses
Competitor analysis
Documenting current strategies of primary competitors

5. Table 8.1- An Assessment of Competitor Marketing Strategies and Strengths and Weaknesses

6. Marketing Research for the New Venture
Step one - Defining the purpose or objectives
Step two - Gathering data from secondary sources
Step three - Gathering information from primary sources
Step four - Analyzing and interpreting the results

7. Difference Between a Business Plan and a Marketing Plan
Road map for the entire organization over time
Focuses on decisions pertaining to all the functional departments and future growth strategies
Marketing plan
Focuses on marketing activities of a venture
Integral part of a business plan

8. Understanding the Marketing Plan
Written statement of marketing objectives, strategies, and activities
Provides answers to three basic questions
Where have we been?
Where do we want to go (in the short term)?
How do we get there?

9. Characteristics of a Marketing Plan
A marketing plan should:
Provide a strategy
Be based on facts/valid assumptions
Describe an appropriate organization for implementation
Provide for short-term and long-term continuity
Be simple and short
Be flexible
Specify criteria for control

10. Table 8.5 - Outline for a Marketing Plan

11. Characteristics of a Marketing Plan
Marketing system
Interacting internal and external factors that affect:
Venture’s ability to provide goods and services to meet customer needs

12. Figure 8.1 - The Marketing System

13. The Marketing Mix
Combination of product, price, promotion, distribution:
Needed to meet marketing objectives

14. Table 8.7- Critical Decisions for Marketing Mix

15. Steps in Preparing the Marketing Plan
Defining the business situation
Situation analysis: Describes past and present business achievements of new venture
After the start of venture, information should relate to:
Present market conditions
Performance of the company’s goods and services
Future opportunities or prospects

16. Steps in Preparing the Marketing Plan
Defining the target market/opportunities and threats
Target market: Specific group of potential customers toward which the venture aims its marketing plan
Market segmentation: Dividing a market into definable and measurable groups for purposes of targeting marketing strategy
Identify strengths and weaknesses in the target market

17. Steps in Preparing the Marketing Plan
Establishing goals and objectives
Marketing goals and objectives: Statements of level of performance desired by new venture
Respond to the question, “Where do we want to go?”
Organizational goals should:
Represent key areas
Be limited in number (between six and eight)

18. Steps in Preparing the Marketing Plan
Defining marketing strategy and action programs
Marketing strategy and action plan
Specific activities outlined to meet the venture’s business plan goals and objectives
Product or service
Describe the product or service

19. Steps in Preparing the Marketing Plan
Pricing - Three important elements include
Costs
Margins or markups
Competition
Distribution
Evaluate the choice of distribution channel
Promotion
Identify the medium to inform potential consumers about the products

20. Steps in Preparing the Marketing Plan
Marketing strategy: Consumer versus business-to-business markets
Business-to-business markets - Selling products or services to another business
Consumer markets - Sales to households for personal consumption

21. Steps in Preparing the Marketing Plan
Budgeting the marketing strategy
Identifying costs to meet desired goals and objectives
Implementation of market plan
Monitoring the progress of marketing actions
Tracking results of the marketing effort
Preparing for contingencies

22. Steps in Preparing the Marketing Plan
Weaknesses in market planning
Poor analysis of the market and competitive strategy
Unrealistic goals and objectives
Poor implementation of the outlined plan actions
Unforeseen hazards like weather or war