Download Market Plan – Outline

Market Plan – Outline
“How do we communicate with our customers?”
“What should I include in my marketing plan?”
Prepared by: Navigate Entrepreneurship Centre
Grenfell Campus, Memorial University &
College of the North Atlantic – Corner Brook Campus
Prepared for: Existing and Potential Entrepreneurs
Date: February 2016
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Market Plan – Outline
A marketing plan is a part of an overall business plan. A strong market strategy is the
foundation of a well-written marketing plan.
A marketing plan will detail how a business intends to identify its customers, meet their needs
and communicate the benefit of its product(s) or service(s) to them. When deciding about
market positioning, pricing, promotions and sales, your clients/customers’ needs and/or
requirements should be the focus of your business.
The marketer E. Jerome McCarthy proposed the 4 Ps’ of marketing in 1960, which has since
been used by businesses throughout the globe. In addition over the years, 3 new Ps’ have been
added to address the changing world economy. Today it is very important for companies to
understand and use the 7 Ps’ of marketing.
The 7 Ps’ are:
Product
Price
Promotion
Place
Physical “evidence”
People
Process
Product – a product is a physical item that satisfies a customer’s needs or it can be an
intangible service. A computer is a physical product. Computer repair is a service.
Price - When setting a price, the business owner must be aware of their customer and how they
perceive the value of the product that the company is selling. Three basic pricing strategies can
be used, they are:
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 Market Skimming Pricing – is a strategy where a marketer establishes a relatively high price for a
product or service at first and then reduces the price overtime
 Market Penetration Pricing – is a pricing strategy used by marketers when the price of a product
or service is initially set low in order to rapidly reach a wide fraction of the marketplace. This
strategy works best in a market with growth potential. The focus is also to get a large share of the
market
 Neutral Pricing – is a strategy where you set your price at the price set by your competitors. It
works but playing it safe means you will give up any opportunity to make additional profit based
on the value of your product or service. It also means you limit your ability to gain market share
The 'Reference Value' (where the consumer refers to the prices of competing products) and the
The 'Differential Value' (the consumer's view of this product's attributes versus the attributes of
other products) must be taken into account.
Promotion - All of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements such as:
advertising, public relations, sales organization and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and
Internet advertisements through print media and billboards. Public relations is where the
communication is not directly paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any informal
communication about the product by ordinary individuals, satisfied customers or people
specifically engaged to create word of mouth momentum. Sales staff often plays an important
role in word of mouth and public relations (see 'product' above).
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Place - The word place or distribution refers to providing the product at a place which is
convenient for consumers to access. Various strategies such as intensive distribution, selective
distribution, exclusive distribution and franchising can be used by the marketer to complement
the other aspects of the marketing mix.
The above four points use to be called the 4 Ps’ of Marketing. It has evolved to the 7 Ps’ of
Marketing. The 7 Ps’ marketing model has added to the original 4 Ps’ and includes three
additional points. They are used when the product in question is a service, not just a physical
good. They are:
Physical “evidence” – This means the evidence which demonstrates that a service has been
performed, such as the delivery packaging for the item delivered by a delivery service, or a scar
left by a surgeon. This reminds or reassures the consumer that the service took place, either
positively or negatively.
People - The employees/staff that execute the service, this is mainly concerning the manner
and skill in which they do so. Are they dressed properly, polite, friendly, knowledgeable about
the service and able to deliver a quality experience to the customer?
Process - The processes and systems within the business or organization that affect the
implementation of its service, such as organizing work and ensuring work is handled in an
efficient and timely manner.
Summary
A marketing plan is designed to direct company’s selling activities towards the satisfaction of
customer needs; steps include determining what the customer wants or needs, developing
product(s)/service(s) to meet these wants/needs, getting the product/service to the end user
and communicating with the customer on a regular bases – all of this with the goal of
increasing sales and profits for the long term. The 7 Ps’ of Marketing can serve as a guide in this
work.
Introduction
WHO:
Is the company, principals/owners, employees, community – location/area for
sales and actual site of company operations?
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WHAT:
Is the company’s product/service, what is the company’s goal(s)?
WHERE:
Is a plant/office or warehouse to be established?
WHY:
Is the product/service of value to potential customers - what are its attributes or
qualities, and how is it superior to existing products/services?
HOW:
Does the company intend to meet its objectives, production levels, customer
service, sales volumes etc…?
Target Markets
What is the company’s initial proposed market?
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Local
Provincial
National
How does the Company fit into the current markets?
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Consumer
Industrial
Government
International
Supplier
Manufacturer
Wholesaler
What are the target market boundaries at this time?
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By consumer group
Geographically
Define the dollar value of total potential sales within the proposed target market.
Describe the targeted user groups by age, gender, lifestyle, values.
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Define the company’s sales level objectives and what percentage of total market share this
represents.
Describe how planned production/service capability compares to proposed market demand.
Outline any outside influencing factors which may affect the marketability of the
product/service, and how they can be overcome:
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Packaging/labeling regulations etc…
HST and GST
Buyer preferences
Technology changes to production and service delivery
Describe when the product/service is usually purchased; on impulse or as a regular
grocery/shopping item. Does the proposed marketing strategy address these trends?
Who usually does the purchasing of the product/service? Who makes the purchasing decision?
Is the marketing strategy properly directed to this specific buyer group?
Describe the varieties of the product/service the company will make available:
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By flavor
By size of packaging
By variety of quality offerings
By style, shape, colour etc…
By service offering (limited service, special service, deluxe/extra service with special
pricing etc…)
What are the markets for each of the above?
Where is the product normally purchase?
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Supermarkets
Grocery stores
Convenience stores
Snack bars
Gas bars
Vending machines
Schools
Shopping Malls
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Box Stores
Online – website, Facebook etc…
Others?
Are the marketing efforts properly targeted to these locations/channels?
Market Demands
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Who is the competition? (list them)
What are their products/services?
How does your company’s product(s)/service(s) compare by quality, price, packaging
and variety?
What percentage of the total market does each competitor enjoy?
What can your company realistically expect to obtain as market share (provide sales
forecasts)
What does the public normally demand from this type of product/service? Does it meet
these demands?
Does the packaging/customer service commitment emphasize the qualities of the
product/service?
What level of sales growth is anticipated over the next three years? Can the plan deliver
the production/customer service levels necessary to support this growth?
What are the company’s long range business plans?
Product Pricing
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What is the consumer acceptance price range for this type of product(s)/service(s)?
How does the proposed product’s/service’s price compare?
Is there sufficient margin between the manufacturer’s cost and the consumer
acceptance price level to provide for markups at the wholesale, distributor and retail
level?
Does the price allow for freight, projected profit, price fluctuations in the market place
and consumer interpretation of value?
Are coupons or discounts being considered to promote consumers to try other flavors,
etc.? Product introduction.
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What is the product cost breakdown?
Cost of goods sold.
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Direct labor
Direct materials
Operating expenses
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Selling expenses
Communications expense
General and administration expenses (including freight)
What markups are allowed at each level of distribution (mark-up chain and channel pricing)?
For example:
Manufacturer
Cost
Mark-up
Selling Price
90%
10%
100%
Wholesaler
Cost
Mark-up
Selling Price
80%
20%
100%
Retailer
Cost
Mark-up
Selling Price
60%
40%
100%
Are the most economical cost efficient methods of processing and packaging utilized (including
raw materials inputs) to keep product/service costs down?
Distribution Channels
How does the company plan to get the product(s)/service(s) to the end user?
What channel of distribution is to be used?
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Direct – manufacturer to consumer
One stage – manufacturer to retailer to consumer
Traditional – manufacturer to wholesaler to retailer to consumer
Multi-stage – manufacture to broker to wholesaler to retailer to consumer
Who/what company or companies will carry out the distribution?
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Are commissioned salespersons to be used?
What are the costs associated with the proposed distribution channels?
How do these channels affect delivery/production time frames?
What are delivery terms?
How are products to be packaged for shipping, end-user display? What physical handling is
required?
Are display aids (clip racks, bins, etc.) to be provided to retailers?
Does packaging meet regulatory agency requirements (labeling, seals, etc...) Health Canada?
Is packaging eye appealing, complementary to product, portraying universal labeling, coded,
priced?
Is there a method for feedback on customer satisfaction, quality control?
What minimum shipping orders are required? (Cost efficient)
What minimum inventory levels must be maintained to ensure no loss of sales due to late
deliveries, back order, split shipments?
What system is to be used for processing orders, shipping, and billing?
What trade terms will be offered?
Promotions/Advertising and Communication with Customers
Describe the company’s “communications package”.
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Advertising
Selling
Sales promotions
Publicity
How much is budgeted in Year 1 in each category?
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Advertising
What percentage of each media is to be used in your overall advertising package?
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Television
Radio
Newspaper
Magazines
Billboards
Business cards
Co-operative advertising with wholesalers/retailers
Public Awareness/Relations
Social Media
Other
Selling Procedures
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What type of sales person is to be used, if required – food brokers, commissioned
salespersons, etc.?
What tools are to be provided to salespersons to assist getting orders (volume
discounts, purchasing shelf space, etc.)?
Will a sales training program be offered?
How will sales effectiveness be measured?
What incentives will be offered to salespersons for new accounts, reaching and
exceeding sales targets, and other achievements?
Sales Promotions
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What sales promotion activities are planned?
Point of purchase displays/sales aids
Samples
Coupons
What costs are associated with each?
Other….
Publicity
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How does the company plan to kick off the introduction of the product using publicity?
Endorsements
Testimonials
Referrals
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Truck signs
Consistent visual theme
Social Media
Social Media has become a new and important tool in marketing. Social Media includes the
following:
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Blogs
Facebook
Twitter
YouTube
LinkedIn
Pinterest
Social Media enables a business to have two way communications with customers. This
communications can be with groups or individual and can include voice, text, video and
photography. These means of communications can consist of all or in various combinations.
Using a more traditional website a business can determine the best approach to reach its
customers using blogs, Facebook, twitter, YouTube, LinkedIn and Pinterest. Using these means
of communicating, you should then drive existing/potential clients to your website. Through
your website, you then present your product and/or services and make available the means or
methods whereby they can purchase these product(s)/service(s).
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Blogs – a website that consist of writing (content) usually by one person. Often, there is
a main topic and/or theme. The writer can post a variety of content: written comments;
pictures; links to other websites regarding products, services, information etc…; music
and ongoing commentary regarding their opinions, business or community happenings.
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Facebook – is extremely popular and used by many people all over the globe. For these
reasons, it is important that business owners use this communication tool. A business
owner can create a Facebook page to promote their business. They can then prepare
selected advertisement to direct customers to the company website. Business owners
can go further by making fan or customer pages where buyers can register. When
updates are posted to these pages they will serve as news on your product(s) and/or
service(s). In this way customers are kept knowledgeable on any changes to your
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product(s)/service(s) and the status of competitors. In addition, business owners can
gain information from customers that will keep the company’s customer profiles/market
share current.
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Twitter – Enables business owners and customers to post text messages or small blogs
on a topic or news item. The benefit of twitter is that you can follow people or company
twitter accounts. In addition, you can repost (distribute to your own followers/friends)
with permission. This can be a great way to establish a cost effective communication
with customers and create public awareness of your activities, product(s) and/or
service(s).
An example would be an owner of a restaurant who sends out every day her/his daily
menu.
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YouTube – enables a person, group of people or a company to post a short video clip
online as well as to share videos within a network groups. Videos that are highly
entertaining and/or informative have the potential to reach many views. Going viral on
YouTube requires thousands of views to recommend to their friends that they view
certain video(s). But, very few YouTube video posting go viral. Those that do become
well viewed tend to be created by well-funded marketing specialists. If/when a video
does become popular the viewership may or may not create higher sales for a
company’s product or service. However, if you have a business and develop a video of
your product/service, it becomes an excellent tool for advertising/promoting your
product/service to the market segment you have identified in your marketing plan. It
can also serve in any public awareness/relationship campaign.
An example is the recent entrepreneurial videos developed by the Navigate
Entrepreneurship Centre to create additional public awareness of entrepreneurship
among residents of the City of Corner Brook and Western Newfoundland.
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LinkedIn – is an important social media venue for users/members to build a network of
business and professional contacts. You can also introduce new members. Members can
post their resumes, job postings and/or share business profiles. There is also space for
members to buy ads to advertise (with text and images) their business
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product(s)/service(s). The purpose of LinkedIn is to build an online network to promote
both you as a professional and/or your business product(s)/service(s).
An example is a person promoting their professional training business and the services
you offer.
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Pinterest – is an online site that enables people to upload, share and display
pictures/visual images. You can develop space, with a theme where you would place
images. These images/pictures can be personal or copies from other Pinterest users. A
business could set up their own display(s) to promote their product(s)/service(s). Then,
buyers could share pictures of themselves using your product(s)/service(s).
An example would be a person selling high end jewelry (pictures on Pinterest would
show these items) and buyers could be shown using the goods they have purchased from
you.
In summary, business people will need to look at social media and determine what can work for
them and their business. Cost must be considered as well as the return on the investment. Not
all social media will be needed for each business. Find out (through trial and error) what is best
for your business and then put the resources in place to make it happen. Developing a social
media strategy/plan within your marketing plan will help you make the best use of limited
marketing dollars. Proactive planning will answer questions like: who to target with social
media; what type of social media works best with different customers/clients; how much
money should be invested in the use of social media; how do you measure results from social
media activities etc…
For additional information, please see info sheet – Social Media and Marketing Facts 2016
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Sources of Marketing Data and Financial/Technical Assistance
When you are writing your market and business plan, you will need to have a good
understanding of the business sector you intend to entre and local, provincial & national data
that pertain to the sector you are planning to enter as a business owner.
 Please go to the Canadian Business Network, established by the Government of Canada,
to get an overview of the industry/sector you are considering for a business start-up.
The Canadian Business Network also has a great deal of information to assist business
owners in marketing etc… go to www.canadabusiness.ca . To find information on
communities in Newfoundland and Labrador please go to www.communityaccounts.ca
and click on profiles and then select the Rural Secretariat Region where you are planning
to start a business
 Average sales in an industry and items like revenue to sales can be found at national
industry association websites, i.e. Food & Consumer Products of Canada www.fcpc.ca –
go to industry facts; Canadian Federation of Independent Grocers www.cfig.ca – go to
Innovative Thinkers etc… for other industries google items like the Canadian association
of manufacturers etc…
 In addition, Industry Canada has significant market data and information for
entrepreneurs, i.e. go to website, www.ic.gc.ca and look at: Find Statistics by Industry;
Access Industry Profile and Analysis; Review Financial Performance Benchmarks; Find
Companies by Industry Sectors etc… In Newfoundland and Labrador go to NL Stats
Agency for local data, www.stats.gov.nl.ca ; go to statistics where you will find; Trade &
Business Stats; Industry Stats and Population Data.
Note: for information on how to register a trademark or patent and to establish franchise
agreements, go to Industry Canada for descriptions and instructions on how to achieve these
important intellectual property items for your business, i.e. patent for your business
ideas/products. www.ic.gc.ca
- For information on businesses in the City of Corner Brook region and networking
opportunities with fellow business owners go to the Greater Corner Brook Board of Trade
www.gcbbt.com
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- For information on the tourism sector go to the Western Destination Management
Organization, one of the regional tourism industry association in the province of Newfoundland
and Labrador, www.gowesternnewfoundland.com
- Licenses required, town permits, washroom requirements, disability requirements/public
access, occupational health & safety and food inspection etc… please go to the City of Corner
Brook: www.cornerbrook.com , click on business and then click Starting or Expanding a
Business. For occupational health & safety, food establishment inspection, etc… go to the
Government of Newfoundland and Labrador, www.gov.nl.ca , click on departments and
agencies, then click on Service NL.
There are a number of agencies that assist entrepreneurs with financial and technical
support. Entrepreneurs/business owners should review the services of these agencies and
contact any that may assist them with either technical or financial assistance. Agencies and
department include:
 Aboriginal Financial/Business Support agencies:
- Aboriginal Business Canada www.aadnc-aandc.gc.ca
- Ulnooweg Development Group Inc. www.ulnooweg.ca
- Qalipu Mi’kmag First Nation Band www.qalipu.ca
 Other Financial/Business Support Agencies/Departments:
- Community Business Development Corporations, a national group of
community based corporations www.cbdc.ca
- Atlantic Canada Opportunities Agency, a Government of Canada Agency in
Atlantic Canada, www.acoa-apeca.gc.ca
- Business Development Back of Canada, a Government of Canada Agency,
www.bdc.ca
- Newfoundland and Labrador Provincial Department of Business, Tourism,
Cultural and Rural Development www.btcrd.gov.nl.ca
- Newfoundland Labrador Organization of Women Entrepreneurs, a
Government of Canada funded support agency in Newfoundland and
Labrador, www.nlowe.org
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