2. 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.

3. 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.

4. 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

5. Forming Marketing Objectives
Marketing is the process of developing, promoting, and distributing products to satisfy customers and businesses.
The success of a business is determined in the marketplace.

6. 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

7. The Marketing Plan
A successful marketing plan contains specific marketing objectives.
marketing objectives
what a business wants to accomplish through its marketing efforts

8. The Marketing Plan Marketing Objectives
product introduction or innovation
team organization
sales or market share
Marketing
Objectives
projected profitability
advertising
distribution
pricing 8

9. 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

10. Developing the Marketing Mix
The Five Ps of Marketing P
Product P
Place P
Price
Promotion P P
People 10

11. The Product Strategy
The product strategy deals with the goods or services your business will provide.

12. The Product Strategy Product considerations include:
features and benefits
branding, packaging, and labeling
selection
positioning
mix

13. 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

14. The Product Strategy
Branding, packaging, and labeling can have a bearing on product positioning.
product positioning
how consumers see a product in comparison to another product

15. 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

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

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

18. 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

19. 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.

20. The Place Strategy
An indirect channel of distribution employs intermediaries.
intermediaries
people or businesses that move products between producers and final users, including wholesalers, retailers, distributors, and agents

21. Channels of Distribution
The Place Strategy
Channels of Distribution
Direct
Producer
Consumer
Indirect
Producer
Consumer
Intermediary 21

22. 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

23. The People Strategy
The people strategy involves assembling, preparing, and maintaining the people who will help the business achieve success.

24. The Price and Promotion Strategies
The price strategy is a financial decision and a marketing strategy that affects the customer’s motivation to buy.
The promotion strategy is designed to tell potential customers about a business’s products and their characteristics, benefits, and availability.

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

26. After You Read
1. Identify the role of marketing objectives in developing a marketing plan.
Marketing objectives state what a business wants to accomplish through its marketing efforts.

27. After You Read
2. Name the five marketing strategies that make up the marketing mix.
product, place, people, price, and promotion

28. After You Read
3. Describe the part marketing tactics play in the marketing plan.
Marketing tactics are the activities used to put the marketing mix and the marketing plan into action.

29. Section Objectives State the importance of ongoing market research.
List the factors to consider for each strategy when reviewing the marketing mix.
Describe how to update the marketing mix and marketing plan.

30. The Main Idea
The target markets, customer demands, and competition of a business change over time.
For a business to succeed, you must make timely adjustments to your marketing plan.

31. Content Vocabulary
private brand
guarantee
diversification

32. The Importance of Ongoing Market Research
In business, change is constant. In order to stay up-to-date with changes as they occur:
Gather primary data from customers.
Gather secondary data from business records.
Collect information that affects your operation.

33. Reviewing Your Marketing Plan and Mix
There are many benefits to ongoing market research.
The research provides information you need to make adjustments to your marketing plan and allows you to revise and rework your marketing mix strategies to make them more effective.

34. Product Strategy Changes
Possible Changes to the Product Strategy
adding products
eliminating products
revising guarantees and service policies
Product Strategy Changes
changing products
changing brands, packaging, or labels
identifying new uses for products 34

35. Possible Changes to the Product Strategy
You may want to consolidate products you manufacture under different brands under a single brand.
You may also choose to sell your own private brand.
private brand
a brand that is owned and initiated by a wholesaler or retailer

36. Possible Changes to the Product Strategy
To build customer confidence and increase sales, a business can offer a service policy or a guarantee.
guarantee
an assurance of the quality of a product

37. Place Strategy Changes
Possible Changes to the Place Strategy
improving location
rearranging layout
Place Strategy Changes
changing channels of distribution
increasing availability 37

38. People Strategy Changes
Possible Changes to the People Strategy
number of people
system rewards
employee qualifications
People Strategy Changes
human resource responsibilities
team-building responsibilities 38

39. Price and Promotion Strategy
Possible Changes to the Price and Promotion Strategies
pricing for profit
Price and Promotion Strategy
Changes
reacting to market prices
revising terms of sale 39

40. Revising Your Marketing Plan and Mix
Reviewing and revising your marketing plan and mix regularly will help you identify and make necessary strategy changes.
Such a review sets the stage for longer-term market planning, such as expansion, revision, or diversification.
diversification
the process of investing in products or businesses with which an existing business is not currently involved

41. After You Read 1. State the importance of ongoing market research.
Ongoing market research provides information that enables a business owner to make decisions that ensure the profitability of the business.

42. After You Read
2. List the factors to consider for each strategy when reviewing the marketing mix.
For product strategy: goods and services to offer, differentiation from competitors’ products, and clear product identification. For place strategy: changes in location, layout, availability, and channels of distribution. For people strategy: shifts in demand, changes in the nature of the business, and growth. For price strategy: pricing for profit, reacting to market prices, and revising terms of sale. For promotion strategy: making the most of advertising dollars, stimulating sales, and planning for the long term.

43. After You Read
3. Describe how to update the marketing mix and marketing plan.
Updating the marketing mix involves reviewing individual strategies for recent adjustments and needed changes. Changes and proposed changes are then reviewed for consistency with marketing objectives and budget considerations. Based on these reviews, adjustments are made to ensure that all strategies are coordinated to accomplish the marketing objectives. Finally, the revised mix is incorporated into the marketing plan and supporting elements of the plan are modified accordingly.

44. End of
Chapter 10
The Marketing Plan