Download The Marketing Plan

Chapter 10
10.1
Devising a Marketing Plan
Objective:
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Identify the role of marketing objectives in
developing a marketing plan.
Name the five marketing strategies that make up
the marketing mix.
Describe the part marketing tactics play in the
marketing plan.
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.
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.
The Marketing Plan
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
Forming Marketing Objectives
A successful marketing plan contains specific
marketing objectives.
marketing objectives
what a business wants to
accomplish through its
marketing efforts
Forming Marketing Objectives
In a start up marketing plan, the objectives should
include:
1.
2.
3.
4.
5.
6.
Creating awareness of your business
Educating the target market about features and benefits
of your products
Understanding of the current and future needs of your
target market
Reaching specific sales projections
Obtaining projected market share
Building a repeat customer and/or referral base
product
introduction
or innovation
team
organization
advertising
sales or
market share
Marketing
Objectives
distribution
pricing
projected
profitability
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
The Five Ps of Marketing
Product
Place
Price
Promotion
People
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The product strategy deals with the goods or
services your business will provide.
Product considerations include:
features and benefits
branding, packaging, and labeling
selection
positioning
mix
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
Branding, packaging, and labeling can have a
bearing on product positioning.
product positioning
how consumers see a product in
comparison to another product
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
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What is your product mix?
How do you position your product?
What benefits or features do your products
offer?
How are you building your brand?
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The place strategy deals with how you will
deliver your goods and services to customers.
Place strategy considerations include:
channels of distribution
intensity of distribution
transportation
location, layout, and availability
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
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.
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
Direct
Producer
Consumer
Indirect
Producer
Intermediary
Consumer
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There are three ways to distribute a product:
• intensive distribution
• selective distribution
exclusive distribution
• exclusive distribution
placement of a product where
its number of sales outlets are
limited to one per area
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Do you offer your products at locations other than
your store?
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The people strategy involves assembling,
preparing, and maintaining the people who will
help the business achieve success.
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What do you look for in an employee?
What specialized skills or education to you
require?
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.
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How will you price your product in relation to similar
businesses?
What is the message you want to share through
promotion?
What forms of promotion will your business use?
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To apply marketing strategies, entrepreneurs
employ marketing tactics
marketing tactics
activities that are taken to
carry out a marketing plan
10.2 Reviewing and Revising the
Marketing Plan
The Importance of Ongoing Market Research
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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.
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.
adding
products
eliminating
products
revising
Product
changing
guarantees
Strategy
products
and service
Changes
policies
changing brands,
identifying new
packaging,
uses for
or labels
products
You may want to consolidate products you
manufacture under different brands or 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
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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
improving
location
rearranging layout
Place
Strategy
Changes
changing channels
of distribution
increasing
availability
number of
people
system
rewards
People
Strategy
Changes
human
resource
responsibilities
employee
qualifications
team-building
responsibilities
pricing for profit
revising
terms of sale
Price and
Promotion
Strategy
Changes
reacting to market
prices
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.
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diversification
the process of investing in
products or businesses with
which an existing business is
not currently involved