The Marketing Plan Chapter 10 The Marketing Plan

The Marketing Plan Chapter 10

The Marketing Plan 10. 1 Devising a Marketing Plan Objective: 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.

Developing a 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.

Developing a Marketing Plan 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

Developing a Marketing Plan Forming Marketing Objectives A successful marketing plan contains specific marketing objectives what a business wants to accomplish through its marketing efforts

Developing a Marketing Plan 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

The Marketing Plan product introduction or innovation team organization advertising sales or market share Marketing Objectives distribution pricing projected profitability

Developing the Marketing Mix 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

Developing the Marketing Mix The Five Ps of Marketing Product Place Price Promotion People

The Product Strategy q q q 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

The Product Strategy 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

The Product Strategy Branding, packaging, and labeling can have a bearing on product positioning how consumers see a product in comparison to another product

The Product Strategy The final consideration in your product strategy is determining your company’s product mix all of the products a company makes or sells

Brainstorm the Product Strategy for Your Business 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?

The Place Strategy • • 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

The Place Strategy To formulate a place strategy, the entrepreneur needs to understand the channel of distribution the path a product takes from producer or manufacturer to final user or consumer

The Place Strategy 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 people or businesses that move products between producers and final users, including wholesalers, retailers, distributors, and agents

Channels of Distribution Direct Producer Consumer Indirect Producer Intermediary Consumer

Channels of Distribution 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

Brainstorm the Place Strategy for Your Business Do you offer your products at locations other than your store?

The People Strategy The people strategy involves assembling, preparing, and maintaining the people who will help the business achieve success.

Brainstorm the People Strategy for Your Business What do you look for in an employee? What specialized skills or education to you require?

The Price and Promotion Strategies 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.

Brainstorm the Price and Promotion Strategies for Your Business 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?

Marketing Tactics To apply marketing strategies, entrepreneurs employ marketing tactics activities that are taken to carry out a marketing plan

10. 2 Reviewing and Revising the Marketing Plan

Updating the Marketing Plan The Importance of Ongoing Market Research • • • 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.

Updating the Marketing Plan 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.

Possible Changes to the Product Strategy adding products eliminating products revising Product changing guarantees Strategy products and service Changes policies changing brands, identifying new packaging, uses for or labels products

Possible Changes to the Product Strategy 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 a brand that is owned and initiated by a wholesaler or retailer

Possible Changes to the Product Strategy To build customer confidence and increase sales, a business can offer a service policy or a guarantee an assurance of the quality of a product

Possible Changes to the Place Strategy improving location rearranging layout Place Strategy Changes changing channels of distribution increasing availability

Possible Changes to the People Strategy number of people system rewards People Strategy Changes human resource responsibilities employee qualifications team-building responsibilities

Possible Changes to the Price and Promotion Strategies pricing for profit revising terms of sale Price and Promotion Strategy Changes reacting to market prices

Revising Your Marketing Plan and Mix 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 the process of investing in products or businesses with which an existing business is not currently involved