BBA Marketing Plan 2

8/3/2019 BBA Marketing Plan 2

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The Marketing Plan

McGraw-Hill/IrwinEntrepreneurship, 7/e Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 8


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Marketing Plan

Written Statement Of Marketingobjectives, strategies and activities to

be followed in Business Plan.


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Marketing Plan

` Critical element in ensuring the long-term success of anyEntrepreneurial effort

` MP responds to three Qs` Where have we been ? (When used a document for the operational

plan, it should imply some company background, and SWOT analysis

of the company. (the new venture which might be a staring a newproduct in the company) ANALYSIS

` When marketing pan is integrated in the BP it would give thebackground/history of the marketplace and SWOT analysis of thefirm.

`Where are we going ? ( this question addresses the marketingobjectives and goals for the new ventures in the next 12 months indetail and next 3 years in general). OBJECTIVES

` How do we get there ? ( this question addresses the marketingstrategy such as when will it occur? who will monitor the activities?Budgets will also be determined)


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Marketing Plan

` Entrepreneur conduct market research to respond to these Qs.

` Research involves Secondary / Primary data process

` Helps in marketing mix ( 4 Ps) & strategies

` Why do many plan fails?

` Often short of finances and lack of management is blamed butreal problem may be the marketing issues.

` Marketing issues might include: (4 Ps)

Identifying the customers

Defining the right product and service to meet customers need Pricing

Distribution

promotion


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Marketing Research for the New Venture

` Who will buy the product or service ?

` What is the size of the potential market ?

` What price should be charged ?

` what is the most appropriate distribution channel ?` What is the most effective promotional strategy to

reach and inform potential customers ?

` Focus Group not expensive technique for research

How to conduct MR difficult for Entr who lackknowledge in marketing- You do the researchfor being more knowledgeable and giving solid

facts rather than talking non sense


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Marketing Research

for the New Venture (1 of 2)

` Defining the purpose or objectives

` Make a list of the information that will be needed toprepare the marketing plan.

Ex: E may think there is a market for his product but is

not sure who the customers will be ,so ask people whatthey think of the product or service and if they wouldbuy it & background demographics

` How much potential customers would be willing to pay

for the product or service` Where the potential customers would prefer to purchase

the product or service

` Where the customer would expect to hear about or learnabout such a product or service


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` Gathering data from secondary sources

` Trade magazines

` Newspaper articles- names, interviewed named shouldbe scanned to make your research more authenticatedwith respect to market issues

` Libraries -- Industry, competitors, trends in consumertastes & preferences, innovation in the market

` Government agencies-suppose i want to knowwhat

is the income level of the people living inhayatabad...so rather than doing all the hard workmyself,i pick up the census dataand extract theinfo that i need

` Internet


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Marketing Research

for the New Venture (2 of 2)

` Gathering information from primary sources

` Data collection procedures:

` Observation: record customers buying behaviors

` networking: experts in the field-valuable low costmethod

` interviewing: telephone- Mail- personal (adv & dis-adv)

` focus groups: 10-12 potential customers

` Experimentation` Questionnaire


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` Analyzing and interpreting the results

` Can be hand-tabulated or entered on a computer.

` Results should be evaluated and interpreted in responseto the research objectives

` Data can be cross-tabulated in order to provide morefocused results.

` Example: E compare results of Q by different Age,Occupation, Location- fine tuning can provide valuable

insights particularly regarding the segmentation of themarket.

`You will study it in research methodology.


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Understanding the Marketing Plan

` Marketing plan: written statement of marketingobjectives, strategies, and activities to be followed inbusiness plan.

` Designed to provide answers to three basic questions:

` Where have we been?

` Where do we want to go? (in the short term)

` How do we get there?


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Characteristics of the Marketing Plan

` A marketing plan should:

` Provide a strategy.

` Be based on facts/assumptions.

`Describe an organization for implementation.

` Provide for short-term and long-term continuity.

` Be simple and short.

` Be flexible.

` Specify criteria for control.


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The Marketing System

ExternalEnvironment

EconomyCultureTechnologyDemandLegal considerationsRaw materialsCompetition

InternalenvironmentFinancial resourcesSuppliersGoals and objectivesManagement team

EntrepreneurMarket

Planning

Decision

Marketing

Strategies

directed towards

customers

Purchase

decision of

customers


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Factors Affecting the Marketing System

` Marketing system: interacting internal and externalfactors that affect ventures ability to provide goodsand services to meet customer needs.

` Internal variables that affect the marketing plan:

` Financial resources

` Management team

` Suppliers

` Company mission


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The Marketing Mix

` Combination of product, price, promotion, and distributionand other marketing activities needed to meet marketingobjectives.

Marketing Mix Variable Critical Decisions

ProductQuality of components or materials, style, features, options,brand name, packaging, sizes, service availability, and

warranties.

PriceQuality image, list price, quantity, discounts, allowances for

quick payment, credit terms, and payment period.

Channels of distributionUse of wholesalers and/or retailers, type of wholesalers orretailers, how many, length of channel, geographic coverage,

inventory, and transportation.

Promotion

Media alternatives, message, media budget, role of personal

selling, sales promotion (displays, coupons, etc.), and media

interest in publicity.


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Steps in Preparing the Marketing Plan

` Define the business situation.

( situational analysis: describe the prospects of the new venture)

` Define the target market: opportunities and threats.

(the specific group of potential customers towards wh/ the new

venture aims its marketing plan)` Consider strengths and weaknesses.

` Establish goals and objectives.

( statements of level of performance desired by new venture)

` Define marketing strategy and action programs. (specific activities outlined to meet the goals and objectives)


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Defining the Business Situation

` Situation analysis: describes past and present businessachievements of new venture.

`Information for a new venture:` Describe how the product or service was developed.

` Why it was developed.

` Information after a new venture has started up:` Present market conditions.

` Performance of the companys goods and services.

` Future opportunities or prospects.


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Defining the Target Market

` Target market: specific group of potential customerstoward which venture aims its marketing plan.

` Knowledge of this provides a basis for determining theappropriate marketing action strategy.

` Market segmentation: process of dividing a market intodefinable and measurable groups for purposes oftargeting marketing strategy.

`Allows the entrepreneur to more effectively respond tothe needs of more homogeneous consumers.


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Process of Segmenting and Targeting (1 of 2)

` Decide on general market or industry to pursue.

` Divide market into smaller groups based on:

` Characteristics of the customer` Geographic

` Demographic

` Psychographic

` Buying situation

` Desired benefits (e.g., product features)

` Usage (e.g., rate of use)

` Buying conditions

`Awareness of buying intention


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Process of Segmenting and Targeting (2 of 2)

` Select segment or segments to target.

` Develop a marketing plan integrating product, price,

distribution, and promotion.


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Establishing Goals and Objectives

` Establish realistic and specific goals and objectives.

It refers to the statements of level of performancedesired by new venture.

`

Marketing goals and objectives respond to the question:Where do we want to go?.

` Not all goals are quantifiable.

` Number of goals or objectives can be limited to

between six and eight.` Goals should represent key areas to ensure marketing

success.


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Defining Marketing Strategy and Action

Programs (1 of 2)

` Specific activities outlined to meet the venturesbusiness plan goals and objectives.

`Product or service` May consider more than the physical characteristics.

` Packaging, brand name, price, warranty, image, service,delivery time, features, style, and even the Web site.

` Pricing` Costs

` Margins or markups

` Competition


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Defining Marketing Strategy and Action

Programs (2 of 2)

` Distribution

` Provides utility to the consumer. (it makes a productconvenient to purchase when it is needed)

` Must also be consistent with other marketing mix

variables. (e.g high quality product not only will carry ahigh price but also should be distributed in outlets thathave a quality image)

` Promotion

` Entrepreneur needs to inform potential consumers aboutthe products availability or to educate the consumer

` Methods include: print, radio, or television, Internet,direct mail, trade magazines, or newspapers.


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Major Considerations in Channel Selection

`


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Marketing Strategy: Consumer versus

Business-to-Business Markets

` Business-to-business markets

` Selling of products or services to another business.

` Usually aims at selling a large volume in one transaction.

`

Involves a more direct channel of distribution` Use trade magazine advertising, direct sales, and trade

shows.

` Consumer markets

`Involve sales to households for personal consumption.

` Marketing mix for both is the same.

` Techniques and strategies within the mix of these factorsvary significantly.


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Budgeting and Implementation

` Budgeting

` Costs are reasonably clear if the entrepreneur hasfollowed the procedure of detailing the strategy andaction programs.

` If assumptions are necessary, they should be clearlystated.

` Useful in preparing the financial plan.

` Implementation

` The plan is meant to be a commitment by theentrepreneur to a specific strategy.

` Entrepreneur should ensure coordination andimplementation of the plan.


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Monitoring the Progress of

Marketing Actions (1 of 2)

` Involves tracking specific results of the marketingeffort.

` Depends on specific goals and objectives outlined inthe marketing plan.

` Entrepreneur should be prepared for contingencies.

` Minor adjustments in the plan occur normally.

` Significant changes indicate a poorly prepared plan.


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Monitoring the Progress of

Marketing Actions (2 of 2)

` Weaknesses in market planning due to:

` 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.

BBA Marketing Plan 2

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