Chapter 8 The Marketing Plan 2014 by Mc

Chapter 8 The Marketing Plan © 2014 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may Mc. Graw-Hill/Irwin not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Learning Objectives • To understand the relevance of industry and competitive analysis to the market planning process • To describe the role of marketing research in determining marketing strategy for the marketing plan • To illustrate an effective and feasible procedure for the entrepreneur to follow in engaging in a market research study 8 -2

Learning Objectives • To define the steps in preparing the marketing plan • To explain the marketing system and its key components • To illustrate different creative strategies that may be used to differentiate or position the new venture’s products or services 8 -3

Industry Analysis • Provides knowledge that can affect marketing strategy decision making • Identifies competitors’ strengths and weaknesses • Competitor analysis • Documenting current strategies of primary competitors 8 -4

Table 8. 1 - An Assessment of Competitor Marketing Strategies and Strengths and Weaknesses 8 -5

Marketing Research for the New Venture • Step one - Defining the purpose or objectives • Step two - Gathering data from secondary sources • Step three - Gathering information from primary sources • Step four - Analyzing and interpreting the results 8 -6

Difference Between a Business Plan and a Marketing Plan • Business plan • Road map for the entire organization over time • Focuses on decisions pertaining to all the functional departments and future growth strategies • Marketing plan • Focuses on marketing activities of a venture • Integral part of a business plan 8 -7

Understanding the Marketing 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? 8 -8

Characteristics of a Marketing Plan • A marketing plan should: • Provide a strategy • Be based on facts/valid assumptions • Describe an appropriate organization for implementation • Provide for short-term and long-term continuity • Be simple and short • Be flexible • Specify criteria for control 8 -9

Table 8. 5 - Outline for a Marketing Plan 8 -10

Characteristics of a Marketing Plan • Marketing system • Interacting internal and external factors that affect: • Venture’s ability to provide goods and services to meet customer needs 8 -11

Figure 8. 1 - The Marketing System 8 -12

The Marketing Mix • Combination of product, price, promotion, distribution: • Needed to meet marketing objectives 8 -13

Table 8. 7 - Critical Decisions for Marketing Mix 8 -14

Steps in Preparing the Marketing Plan • 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 conditions • Performance of the company’s goods and services • Future opportunities or prospects 8 -15

Steps in Preparing the Marketing Plan • 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 8 -16

Steps in Preparing the Marketing Plan • 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) 8 -17

Steps in Preparing the Marketing Plan • 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 8 -18

Steps in Preparing the Marketing Plan • Pricing - Three important elements include • Costs • Margins or markups • Competition • Distribution • Evaluate the choice of distribution channel • Promotion • Identify the medium to inform potential consumers about the products 8 -19

Steps in Preparing the Marketing Plan • 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 8 -20

Steps in Preparing the Marketing Plan • Budgeting the marketing strategy • Identifying costs to meet desired goals and objectives • Implementation of market plan • Monitoring the progress of marketing actions • Tracking results of the marketing effort • Preparing for contingencies 8 -21

Steps in Preparing the Marketing Plan • 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 8 -22