Download Marketing Plan - michellevillanda

MARKETING ASPECT
Marketing Aspect
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The Marketing Plan section explains how you're
going to get your customers to buy your products
and/or services.
Marketing Plan: (4 P’s)
 Products
and/or Services and your Unique Selling
Proposition
 Pricing Strategy
 Sales/Distribution Plan
 Advertising and Promotions Plan
Marketing Plan
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Products and/or Services
 focuses on the uniqueness of your product or
service
 how the customer will benefit from using the
products or services you're offering
Marketing Plan
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Products and/or Services
 What are the features of your product or service?
 Describe the physical attributes of your product or
service, and any other relevant features, such as what it
does, or how your product or service differs from
competitive products or services.
 How
will your product or service benefit the customer?
 Brainstorm as many benefits as possible to begin with
 Choose to emphasize the benefits that your targeted
customers will most appreciate in your marketing plan.
Marketing Plan

Products and/or Services
 What is it that sets your product or service apart
from all the rest?
 What is your Unique Selling Proposition
 The message you want your customers to
receive about your product or service
 Communicating this central message to your
customers (the heart of your marketing plan)
Marketing Plan
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Pricing Strategy
 Portion of the marketing plan involves determining
how you will price your product or service.
 The price you charge has to be competitive but still
allow you to make a reasonable profit.
 set a "reasonable price“
 There is a limit as to how much the consumer is
willing to pay.
 needs to take the consumer threshold into account.
Marketing Plan
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Pricing Strategy
 "How
do you know what price to charge?“
1. Calculating your costs
2. Estimating the benefits to consumers
Examining how much it cost you to produce the
product or service and adding a fair price for the
benefits that the customer will enjoy.
3. Comparing your products, services, and prices to others
that are similar.
Examining what others are charging for similar
products or services will guide you when you're figuring
out what a "fair" price for such
Marketing Plan
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Pricing Strategy
 What
is the cost of your product or service?
 include all your fixed and variable costs
 Fixed costs are costs that are independent of output.
These remain constant throughout. (example – rent)
 Variable costs are costs that vary with output. Variable
costs may include wages, utilities, materials used in
production
 include freight costs, administrative costs, and/or selling costs,
 How does the pricing of your product or service compare to
the market price of similar products or services?
Marketing Plan
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Pricing Strategy
 Explain how the pricing of your product or service is
competitive.
– lower price
– Higher price (customer’s willingness to pay?)
• Will your business be more competitive if you charge
more, less, or the same as your competitors and why?
Marketing Plan
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Pricing Strategy
1.
2.
3.
4.
New Product Strategies
Competitor-Based Pricing
Product-Mix Pricing Strategies
Price Adjustment strategies
Marketing Plan
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Pricing Strategy
 New Product Strategies
 Market Penetration- the company initially sets a low
price for its product in order to enter the market quickly
that is to attract large number of buyers and capture a
large market share in the process
 Market Skimming- under this approach the company
initially sets high prices to skim revenues layer by layer
from the market.
Marketing Plan
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Pricing Strategy
 Competitor-Based Pricing
 Going-rate pricing- in this pricing approach, a company
bases its price largely on the prices of the competitors
without due regard to its own costs and to its own
demand.
Marketing Plan
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Pricing Strategy
 Product-Mix Pricing Strategies
 Product line pricing- this is a pricing approach
applicable to firms that develop product lines rather
than single products. In this type of pricing, the firm may
set different prices for its product line depending on the
feature assortment.
 Optional-Product pricing- This approach offers to sell
optional or accessory products along with
the main product.
Marketing Plan
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Pricing Strategy
Product Mix Pricing
 Captive –product pricing- instead of offering accessories
to the main product, captive-product pricing would offer
products that are essential to the main product itself.
 By product pricing- A by product pricing is a surplus
product or item coming from the main product itself. Some
companies decide to market by-products and deduct the
proceeds of the by product from the price of the main
product.
 Product bundle pricing- a company combines
several of its products into a bundle and offers
the bundle for sale at a reduced price.
Marketing Plan
Pricing Strategy
 Price Adjustment strategies
 Discount pricing
1. Cash discounts- this is being given to buyers who pay their
bills on time
2 . Quantity discounts- These are price reductions given to a
buyer who purchases a product in large volumes.
3 . Seasonal discounts-price reductions given to buyers who
purchase a product or services that are out of season.
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Marketing Plan
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Pricing Strategy
Price Adjustment Strategies
 Segmented pricing
 Customer-segment pricing- is a strategy in which
different customers pay different rates or prices for the
same product /service
 Example:
Enchanted Kingdom charges different rates for
children, students, adults and senior citizens.
Marketing Plan
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Pricing Strategy
Price Adjustment Strategy
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Segmented pricing
 Product form pricing- is another strategy in which different
versions of a product or service are priced differently, but not
according to differences in their costs.
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For instance, an ordinary stand fan may be sold at 400.00. The
same stand which has an added feature, like timer that costs
120.00 to install may be sold at 1500.00
 Location
pricing- different location are priced differently, even
though the cost of offering each location is the same.
 Time pricing- varies the price of a certain product or service
according to time and season of the year.
Marketing Plan
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Sales and Distribution Plan
 The primary goal of the marketing plan is to get people to buy
your products or services. The Sales and Distribution part of the
marketing plan details how this is going to happen.
 Three parts to the Sales and Distribution section of the
marketing plan
 Outline the distribution methods to be used.
 Outline the transaction process between your business and
your customers.
 If it's applicable to your business, outline your sales strategy.
Marketing Plan
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Sales and Distribution Plan
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Outline the distribution methods to be used.
 How
is your product or service going to get to the customer? For
instance, will you distribute your product or service through a Web
site, through the mail, through sales representatives, or through
retail?
 What distribution channel is going to be used?
 In a direct distribution channel, the product or service goes
directly from the manufacturer to the consumer.
 In a one stage distribution channel it goes from manufacturer to
retailer to consumer.
 The traditional distribution channel is from manufacturer to
wholesaler to retailer to consumer.
Marketing Plan
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Sales and Distribution Plan
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Outline the distribution methods to be used.
 Outline
all the different companies, people and/or technologies
that will be involved in the process of getting your product or
service to your customer.
 What are the delivery terms?
 How will the distribution methods affect production time frames or
delivery? (How long will it take to get your product or service to your
customer?)
 If your business involves selling a product, you should also include
information about inventory levels and packaging in this part of your
marketing plan.
Marketing Plan
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Sales and Distribution Plan
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Outline the distribution methods to be used.
 For
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instance:
How are your products to be packaged for shipping and for display?
Does the packaging meet all regulatory requirements (such as
labeling)?
Is the packaging appropriately coded, priced, and complementary to
the product?
What minimum inventory levels must be maintained to ensure that there
is no loss of sales due to problems such as late shipments and back
orders?
Marketing Plan
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Sales and Distribution Plan
 Outline
the transaction process between your business and
your customers.
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What system will be used for processing orders, shipping,
and billing?
What methods of payment will customers be able to use?
What credit terms will customers be offered? If you will
offer discounts for early payment or impose penalties for
late payment, they should be mentioned in this part of your
marketing plan.
Marketing Plan
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Sales and Distribution Plan
 Outline
the transaction process between your business and
your customers.
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What is your return policy?
What warranties will the customer be offered? Describe
these or any other service guarantees.
What after-sale support will you offer customers and what
will you charge (if anything) for this support?
Is there a system for customer feedback so customer
satisfaction (or the lack of it) can be tracked and
addressed?
Marketing Plan
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Sales and Distribution Plan
 If
it's applicable to your business, outline your sales
strategy.
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What types of salespeople will be involved (commissioned
salespeople, product demonstrators, telephone solicitors, etc.)?
Describe your expectations of these salespeople and how sales
effectiveness will be measured.
Will a sales training program be offered? If so, describe it in this
section of the marketing plan.
Describe the incentives salespeople will be offered to encourage their
achievements (such as getting new accounts, the most orders, etc.).
Marketing Plan
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Advertising and Promotion Plan
 Describes how you're going to deliver your Unique
Selling Proposition to your prospective customers.
 Think first of the message that you want to send to
your targeted audience.
 Look at these promotion possibilities and decide
which to emphasize in your marketing plan
Marketing Plan
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Advertising and Promotion Plan
 Advertising
- The best approach to advertising is to think of it
in terms of media and which media will be most effective in
reaching your target market. Then you can make decisions
about how much of your annual advertising budget you're
going to spend on each medium.
 What percentage of your annual advertising budget will you
invest in each of the following:
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Internet
Television
Radio
Newspapers
Magazines
Telephone books/directories
- billboards
- bench/bus/subway ads
- direct mail
- cooperative advertising with wholesalers,
retailers or other businesses?
Marketing Plan
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Advertising and Promotion Plan
 Sales Promotion - If it's appropriate to your business, you
may want to incorporate sales promotion activities into
your advertising and promotion plan, such as:
 offering free samples
 coupons
 point of purchase displays
 product demonstrations
Marketing Plan
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Advertising and Promotion Plan
 Marketing Materials - Every business will include some of
these in their promotion plans. The most common marketing
material is the business card, but brochures, pamphlets
and service sheets are also common.
Marketing Plan
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Advertising and Promotion Plan
 Publicity - Describe how you plan to generate publicity.
While press releases spring to mind, that's only one way to
get people spreading the word about your business.
Consider:
 product launches
 special events, including community
involvement
 writing articles
 getting and using testimonials
Marketing Plan
Advertising and Promotion Plan
 Your
Business' Web Site - If your business has or will have a
Web site, describe how your Web site fits into your advertising
and promotion plan.
 Tradeshows - Tradeshows can be incredibly effective
promotion and sales opportunities - if you pick the right ones
and go equipped to put your promotion plan into action.
 Other Promotion Activities
your goal is to plan and carry out a sequence of
focused promotion activities that will communicate with
your potential customers.