ENTR 452ENTR 452Chapter 8: Chapter 8:

The Marketing PlanThe Marketing Plan

UNDERSTANDING THE UNDERSTANDING THE MARKETING PLANMARKETING PLAN

Marketing plan – Written statement of marketing objectives,

strategies, and activities

Provides answers to three basic questions– Where have we been? – Where do we want to go (in the short term)? – How do we get there?

STEPS FOR A MARKET STEPS FOR A MARKET RESEARCH STUDYRESEARCH STUDY

1. Define the purpose or objectives

2. Gather data from secondary sources

3. Gather information from primary sources

4. Analyze and interpret the results

You should be analyzing the industry and the competition.

- Customer surveys and questionnaires

- Focus groups

- Daily transactions (company records)

- Suggestion boxes/systems

- Contacting suppliers about trends

- Customer advisory panel

- Surveying customers that have not purchased recently

PRIMARY RESEARCHPRIMARY RESEARCH

- Internet

- Business directories/Direct-mail lists

- Demographic information (census data)

- Government forecasts

- Market research conducted by other organizations

- Magazine and journal articles

- Local data (Chamber of Commerce, City Hall)

SECONDARY RESEARCHSECONDARY RESEARCH

1. Should determine customer needs and wants through market research.

2. Should pinpoint the specific target market the company will serve.

3. Should analyze the firm’s competitive advantages and build a marketing strategy around them.

4. Should help create a marketing mix (4 P’s) that meets customer needs and wants.

FOUR OBJECTIVES OF A FOUR OBJECTIVES OF A MARKETING PLANMARKETING PLAN

- What is it?

- Stage of development (product life cycle)

- Features

- Quality

- Packaging

- Branding

- Guarantees

- Assortment

PRODUCTPRODUCT

- Location

- Methods/channels of distribution

- “Middlemen”

- Storage

- Transportation

PLACEPLACE

- List price

- Credit terms

- Discounts

- Selection and allowances

Consider cost structure, market acceptance, and desired image

Alternative pricing strategies (skimming, exploiting the experience curve, meeting the market price, achieving maximum market penetration, “low ball” strategy).

PRICEPRICE

• Promotion blend - Advertising - Media - Copy/Press Releases - Timing

• Personal selling - Training - Motivation

• Publicity/Buzz

PROMOTIONPROMOTION

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

1. Defining the business situation– Situation analysis: Describes past and present

business achievements of new venture– After the start of venture, information should

relate to:Present market conditionsPerformance of the company’s goods and

servicesFuture opportunities or prospects

2. Defining the target market/opportunities and threats – Target market: Specific group of potential

customers toward which the venture aims its marketing plan

– Market segmentation: Dividing a market into definable and measurable groups for purposes of targeting marketing strategy

– Identify strengths and weaknesses in the target market

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

3. Establishing goals and objectives– Marketing goals and objectives: Statements

of level of performance desired by new venture– Respond to the question, “Where do we want to

go?”– Organizational goals should:

Represent key areas Be limited in number (between six and eight)

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

4. Defining marketing strategy and action programs – Marketing strategy and action plan

Specific activities outlined to meet the venture’s business plan goals and objectives

– Product or service Describe the product or service

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

– Pricing - Three important elements includeCostsMargins or markupsCompetition

– Distribution Evaluate the choice of distribution channel

– Promotion Identify the medium to inform potential

consumers about the products

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

5. Marketing strategy: Consumer versus business-to-business markets– Business-to-business markets - Selling

products or services to another business– Consumer markets - Sales to households for

personal consumption

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

6. Budgeting the marketing strategy– Identifying costs to meet desired goals and

objectives

7. Implementation of market plan

8. Monitoring the progress of marketing actions– Tracking results of the marketing effort– Preparing for contingencies

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

9. Understand weaknesses in market planning– Poor analysis of the market and competitive

strategy– Unrealistic goals and objectives– Poor implementation of the outlined plan

actions– Unforeseen hazards like weather or war

STEPS IN PREPARING THE STEPS IN PREPARING THE MARKETING PLANMARKETING PLAN

5-FORCES MODEL5-FORCES MODEL

Substitute Products(from other industries)

BuyersSuppliers ofKey Inputs

Potential NewEntrants

Rivalry AmongCompeting Firms

Lack of a real plan

Lack of adequate situation analysis

Unrealistic goals

Unanticipated competitive moves, productdeficiencies and acts of God

WHY SOME MKTG PLANS FAILWHY SOME MKTG PLANS FAIL