ENT300 Chapter 8

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CHAPTER 8:

BUSINESS PLAN:

MARKETING PLAN

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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP

MARKETING PLAN

LEARNING OUTCOME

Understand the importance of

preparing a marketing plan

Describe the steps in preparing a

marketing plan

Identify components of a marketing

plan Prepare a marketing plan for a small

business

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MARKETING PLAN

Module Outline

Introduction

Steps in Preparing a Marketing Plan for Small Businesses.

Marketing Objectives

Product or Service

Target Market

Market Trend and Market Size

Competition

Sales Forecast

Marketing Strategy

Marketing Personnel

Marketing Budget

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MARKETING PLAN

Steps in Preparing a Marketing Plan

1. Setting Marketing Objectives

2. Determining product or service

3. Identifying target market

4. Analyzing market trend and size

5. Assessing competition

6. Forecasting sales

7. Developing marketing strategy

8. Planning for marketing personnel

9. Preparing marketing budget

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MARKETING PLAN

1. Setting Marketing Objectives:

New business:

Introduce new products/services

Estimate market acceptance and sales

Existing business

Introduce new products/services

Inform market of product improvement

Enter new market Increase sales of existing products

Increase market share

Market penetration

Regain market for existing product

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MARKETING PLAN

2. Determining product or service

Needs & wants of customers

Marketability of a product or service

Guide in descr ib ing prod uct o r serv ices:

State clearly the value and benefits of product or

service to customers. Capitalize on the

uniqueness or strengths of the product or servicessuch as on its formulation, ingredients used,

safety, ease of use, life span, flexibility,

assortment, location, operation hours,

personalization, extended warranty etc.

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MARKETING PLAN

3. Identifying target market

Who is the consumer of the product or

service?

What is their common needs or wants that

would be satisfied by the product or service?

What is their common characteristics?

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MARKETING PLAN

Target Market Alternatives Segmented Marketing

- target several or a particular market

segments- design separate offers for each segment

Niche Marketing:

Targeting a large share of one or a fewsegments or niches

Micromarketing:

Tailoring products to suit the tastes of

specific individuals and locations

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MARKETING PLAN

Target Market Alternatives

Mass-Marketing

- ignoring market segment differences

- go after the whole market with one offer

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MARKETING PLAN

4. Analyzing Market Trend andMarket Size

What is the trend in the market?

What is market potential? Size of the market - what is the RM value?

Customer profiles of relevant market

segments.

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MARKETING PLAN

Market Size:- Total potential purchase of target market

- Should be translated into monetary value

- Growing, remain the same or shrinking

Market Share:

- a comparative measure to assess

performance against the competition

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MARKETING PLAN

5. Assessing Competition

Identify Competitors

Assess their market positions and

strategies i.e.; product quality, pricing,distribution and promotion

Strengths and weaknesses

Duration in market

Customers

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MARKETING PLAN

6. Forecasting Sales

Past performance

Break-evento set the minimum

Secured projects

On-going contracts

Anticipated or intended growth

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MARKETING PLAN

7. Developing Marketing Strategy

To enable business to plan for its limited

resources in order to achieve stated

marketing objectives

The key idea is to deliver customer

satisfaction yet provide business with a

competitive advantage

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MARKETING PLAN

Marketing Strategy ( 4Ps)

Product Strategy

Pricing Strategy

Place or Distribution Strategy

Promotion Strategy

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MARKETING PLAN

Product Strategy

Include product and service strategy Product is a physical item that can be

seen, owned, used or consumed

Ideas and creations of the minds canalso be regarded as product

Service is intangible and cannot be seen

or owned, but is useful, can beexperienced and able to satisfy customerneeds and wants

Product strategy refers to a product,

service or a combination of both

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MARKETING PLAN

Product Strategy

Product attributes

Quality

Design

Trade name

Brand name

Packaging

Labeling Warranty

After sales service

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MARKETING PLAN

Marketing Strategies for Services

Service quality

consistency

Service package

Combination of services at competitive price

Service differentiation

Offering that is unique and can bedifferentiated from the competitors

After sales services

Follow-up

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MARKETING PLAN

Pricing Strategy

Price is the value exchanged between the

seller and the buyer in order for the buyer

to possess, use or experience the productor service offered

Most often, price is in the form of monetary

value paid by the buyer to obtain theproduct or service

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MARKETING PLAN

Pricing Strategy

Common Pricing Methods:

Based on Cost

Fixed Cost + Variable Cost + Mark-up

Based on Perceived Value

Based on Competition

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MARKETING PLAN

Pricing Tactics

Price lining

Discounting

Purchase with purchase

Psychological pricing

Captive pricing

Product bundle pricing

Segmentation pricing

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MARKETING PLAN

Factors to Consider When SettingPrice

Marketing objectives

Demand and supply

Competitors pricing

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MARKETING PLAN

Place or Distribution Strategy

Place strategy refers to the decision madeon the location of the business

Choice of location is crucial for most brickand mortar businesses

Channel of distribution is a network

developed to ensure product or servicesreach target consumers

Distribution strategy for consumer product

and industrial product may vary

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Manufacturer/Producer

Distribution Strategy

Wholesaler

Retailer

Retailer

Wholesaler

Consumer

E-Intermediaries

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MARKETING PLAN

Factors to Consider WhenDetermining Distribution Strategy

Type of product

Target market

Market coverage

Transportation ease

Product standardization

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MARKETING PLAN

Promotion Strategy

Promotion is any coordinated effort

taken to supplement the product, price

and place strategies in order to achieve

marketing objectives.

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MARKETING PLAN

Promotion Strategy

Advertising

Sales promotion

Personal Selling

Publicity

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MARKETING PLAN

Promotion Strategy

Channel of advertising:

Printed

Newspaper

Magazines

Yellow pages

Brochures Business cards

Electronic and Digital

Television

Radio

Internet

Sort messaging system

Advertising

Paid, non personal sales effort through a medium to influence

a large number of consumers.

Outdoor Billboards

Banners

Transportation

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MARKETING PLAN

Promotion StrategySales promotion

Promotional activities or incentives carried out or offered within a

set time frame to influence purchase

Common sales promotion strategies: Rebates

Coupons

Purchase-with-purchase

Samples

Premiums

Contest

Rebates

Point-of-purchase promotion

Sweepstakes

Free delivery

Extended warranty

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MARKETING PLAN

Promotion Strategy

Personal Selling

Personal sales presentation conducted by a trained sales

person to influence potential customers. It is most oftenused for products that require demonstration or explanation

Publicity

Efforts taken to develop and maintain good relationship

with the public to ensure good favorable public image of the

business.

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MARKETING PLAN

8. Planning For Marketing

Personnel

Determine number of supporting personnel

needed to undertake the marketing tasks

in-house or outsource?

Examples:

Marketing manager or executives

Sales personnel

Promotion personnel

Distribution personnel

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MARKETING PLAN

9. Preparing Marketing Budget

Marketing budget refers to expenses

incurred in planning for the marketing aspect

of the proposed business or project. Itconsists of 3 components.

1. Investment on fixed assets

2. Allocation for working capital for marketing

activities

3. Other marketing expenses

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MARKETING PLAN

THE END!

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Marketing Budget Table

Items Fixed

Asset

(RM)

Working

Capital

(RM)

Other

Expenses

(RM)

Fixed Asset

SignboardWorking Capital

Salary/EPF/SOCSO

- Marketing Manager

- Sales Consultant

- Promotion

Lain-Lain

Grand Opening

4,000

3,000

1,500

500

5,000

Total (RM) 4,000 5,000 5,000

Documents

ENT300 Chapter 8