Download Updating the Marketing Plan

10
The Marketing
Plan
Section
10.1
Developing a Marketing Plan
Section
10.2
Updating the Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
Content Vocabulary
marketing plan
marketing objectives
marketing mix
brand
package
label
product positioning
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
product mix
channel of distribution
intermediaries
intensive distribution
selective distribution
exclusive distribution
marketing tactics
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
Forming Marketing Objectives
A convincing marketing
plan includes a rationale for
your selection of marketing
strategies and tactics.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
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
SECTION
10.1
Developing a
Marketing Plan
The Marketing Plan
A successful marketing plan
contains specific marketing
objectives.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
marketing objectives
what a business wants to
accomplish through its marketing
efforts
The Marketing Plan
product
introduction
or innovation
sales or
market share
team
organization
advertising
Marketing
Objectives
distribution
projected
profitability
pricing
8
SECTION
10.1
Developing a
Marketing Plan
Developing the Marketing Mix
Developing a marketing
mix enables an
entrepreneur to map out
how to accomplish
marketing initiatives.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
marketing mix
the five marketing strategies used
to reach a market: product, place,
price, promotion, and people
Developing the Marketing Mix
The Five Ps of Marketing
P
Product
P
Place
P
Price
P
Promotion
P
People
10
SECTION
10.1
Developing a
Marketing Plan
The Product Strategy
The product strategy deals with the goods or services your business
will provide.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
The Product Strategy
Product considerations include:
•
•
•
•
•
features and benefits
branding, packaging, and labeling
selection
positioning
mix
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
The Product Strategy
A product’s brand,
package, and label serve
as strategies for
maintaining customer
loyalty.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
label
brand
package
the part
name,
physical
of symbol,
the
container
package
or design
orused
wrapper
used
to
to identify
used
present
to present
information
a product
information
about the
product
SECTION
10.1
Developing a
Marketing Plan
The Product Strategy
Branding, packaging, and
labeling can have a bearing
on product positioning.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
product positioning
how consumers see a product in
comparison to another product
SECTION
10.1
Developing a
Marketing Plan
The Product Strategy
The final consideration in
your product strategy is
determining your
company’s product mix.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
product mix
all of the products a company
makes or sells
SECTION
10.1
Developing a
Marketing Plan
The Place Strategy
The place strategy deals with how you will deliver your goods and
services to customers.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
The Place Strategy
Place strategy considerations include:
•
•
•
•
channels of distribution
intensity of distribution
transportation
location, layout, and availability
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
The Place Strategy
To formulate a place
strategy, the entrepreneur
needs to understand the
channel of distribution.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
channel of distribution
the path a product takes from
producer or manufacturer to final
user or consumer
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
The Place Strategy
An indirect channel of
distribution employs
intermediaries.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
intermediaries
people or businesses that move
products between producers and
final users, including wholesalers,
retailers, distributors, and agents
The Place Strategy
Channels of Distribution
Direct
Producer
Consumer
Indirect
Producer
Intermediary
Consumer
21
SECTION
10.1
Developing a
Marketing Plan
The Place Strategy
There are three ways to
distribute a product:
• intensive distribution
• selective distribution
• exclusive distribution
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
intensive
selective distribution
exclusive
distribution
placement of a product in
all its
where
suitable
sales
outlets
number of
sales
outlets are limited
in an
to
onearea
per area
SECTION
10.1
Developing a
Marketing Plan
The People Strategy
The people strategy involves assembling, preparing, and maintaining
the people who will help the business achieve success.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
Marketing Tactics
To apply marketing
strategies, entrepreneurs
employ marketing tactics.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
marketing tactics
activities that are taken to carry
out a marketing plan
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
After You Read
2.
Name the five marketing strategies that make up the marketing
mix.
product, place, people, price, and promotion
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a
Marketing Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
Content Vocabulary
private brand
guarantee
diversification
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Possible Changes to the Product Strategy
adding
products
revising
guarantees
and service
policies
eliminating
products
Product
Strategy
Changes
changing
brands,
packaging,
or labels
changing
products
identifying
new uses for
products
34
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
private brand
a brand that is owned and initiated
by a wholesaler or retailer
SECTION
10.2
Updating the Marketing
Plan
Possible Changes to the Product Strategy
To build customer
confidence and increase
sales, a business can offer
a service policy or a
guarantee.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
guarantee
an assurance of the quality of a
product
Possible Changes to the Place Strategy
improving
location
rearranging
layout
Place
Strategy
Changes
changing
channels of
distribution
increasing
availability
37
Possible Changes to the People Strategy
number of
people
system
rewards
People
Strategy
Changes
human
resource
responsibilities
employee
qualifications
team-building
responsibilities
38
Possible Changes to the
Price and Promotion Strategies
pricing for profit
Price and
Promotion
Strategy
Changes
revising
terms of sale
reacting to
market
prices
39
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
diversification
the process of investing in
products or businesses with which
an existing business is not
currently involved
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
SECTION
10.2
Updating the Marketing
Plan
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.
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
10
The Marketing
Plan
End of
Chapter 10
Section
10.1
The Plan
Marketing
Developing a Marketing
Plan
Section
10.2
Updating the Marketing Plan
Glencoe Entrepreneurship: Building a Business