MARKETING ASPECT

Marketing Aspect

The Marketing Plan section explains how you're going to get your customers to buy your products and/or services.

Marketing Plan: (4 P’s) Products and/or Services and your Unique

Selling Proposition Pricing Strategy Sales/Distribution Plan Advertising and Promotions Plan

Marketing Plan

Products and/or Services focuses on the uniqueness of your

product or service how the customer will benefit from

using the products or services you're offering

Marketing Plan

Products and/or Services What are the features of your product or service?

Describe the physical attributes of your product or service, and any other relevant features, such as what it does, or how your product or service differs from competitive products or services.

How will your product or service benefit the customer?Brainstorm as many benefits as possible to begin withChoose to emphasize the benefits that your targeted

customers will most appreciate in your marketing plan.

Marketing Plan

Products and/or Services What is it that sets your product or

service apart from all the rest?  What is your Unique Selling PropositionThe message you want your customers

to receive about your product or service

Communicating this central message to your customers (the heart of your marketing plan)

Marketing Plan

Pricing Strategy Portion of the marketing plan involves

determining how you will price your product or service.

The price you charge has to be competitive but still allow you to make a reasonable profit.

set a "reasonable price“ There is a limit as to how much the consumer

is willing to pay. needs to take the consumer threshold into

account.

Marketing Plan

Pricing Strategy "How do you know what price to charge?“1. Calculating your costs2. Estimating the benefits to consumers

Examining how much it cost you to produce the product or service and adding a fair price for the benefits that the customer will enjoy.

3. Comparing your products, services, and prices to others that are similar.

Examining what others are charging for similar products or services will guide you when you're figuring out what a "fair" price for such

Marketing Plan

Pricing Strategy What is the cost of your product or service?

include all your fixed and variable costsFixed costs are costs that are independent of output.

These remain constant throughout. (example – rent)Variable costs are costs that vary with output.

Variable costs may include wages, utilities, materials used in production

include freight costs, administrative costs, and/or selling costs,

How does the pricing of your product or service compare to the market price of similar products or services?

Marketing Plan

Pricing Strategy Explain how the pricing of your product or

service is competitive. – lower price– Higher price (customer’s willingness to pay?)• Will your business be more competitive if

you charge more, less, or the same as your competitors and why?

Marketing Plan

Pricing Strategy 1. New Product Strategies2. Competitor-Based Pricing3. Product-Mix Pricing Strategies4. Price Adjustment strategies

Marketing Plan

Pricing Strategy New Product Strategies

Market Penetration- the company initially sets a low price for its product in order to enter the market quickly that is to attract large number of buyers and capture a large market share in the process

Market Skimming- under this approach the company initially sets high prices to skim revenues layer by layer from the market.

Marketing Plan

Pricing Strategy Competitor-Based Pricing

Going-rate pricing- in this pricing approach, a company bases its price largely on the prices of the competitors without due regard to its own costs and to its own demand.

Marketing Plan

Pricing Strategy Product-Mix Pricing Strategies

Product line pricing- this is a pricing approach applicable to firms that develop product lines rather than single products. In this type of pricing, the firm may set different prices for its product line depending on the feature assortment.

Optional-Product pricing- This approach offers to sell optional or accessory products along with the main product.

Marketing Plan Pricing Strategy Product Mix Pricing

Captive –product pricing- instead of offering accessories to the main product, captive-product pricing would offer products that are essential to the main product itself.

By product pricing- A by product pricing is a surplus product or item coming from the main product itself. Some companies decide to market by-products and deduct the proceeds of the by product from the price of the main product.

Product bundle pricing- a company combines several of its products into a bundle and offers the bundle for sale at a reduced price.

Marketing Plan

Pricing Strategy Price Adjustment strategies

Discount pricing1. Cash discounts- this is being given to buyers who

pay their bills on time2 . Quantity discounts- These are price reductions given

to a buyer who purchases a product in large volumes.3 . Seasonal discounts-price reductions given to buyers

who purchase a product or services that are out of season.

Marketing Plan

Pricing Strategy Price Adjustment Strategies

Segmented pricingCustomer-segment pricing- is a strategy in

which different customers pay different rates or prices for the same product /service

Example: Enchanted Kingdom charges different rates for children, students, adults and senior citizens.

Marketing Plan Pricing Strategy Price Adjustment Strategy

Segmented pricing Product form pricing- is another strategy in which different

versions of a product or service are priced differently, but not according to differences in their costs.

For instance, an ordinary stand fan may be sold at 400.00. The same stand which has an added feature, like timer that costs 120.00 to install may be sold at 1500.00

Location pricing- different location are priced differently, even though the cost of offering each location is the same.

Time pricing- varies the price of a certain product or service according to time and season of the year.

Marketing Plan Sales and Distribution Plan

The primary goal of the marketing plan is to get people to buy your products or services. The Sales and Distribution part of the marketing plan details how this is going to happen.

Three parts to the Sales and Distribution section of the marketing planOutline the distribution methods to be used.Outline the transaction process between your

business and your customers. If it's applicable to your business, outline your sales

strategy.

Marketing Plan

Sales and Distribution Plan Outline the distribution methods to be used.

How is your product or service going to get to the customer? For instance, will you distribute your product or service through a Web site, through the mail, through sales representatives, or through retail?

What distribution channel is going to be used? In a direct distribution channel, the product or service goes

directly from the manufacturer to the consumer. In a one stage distribution channel it goes from manufacturer

to retailer to consumer. The traditional distribution channel is from manufacturer to

wholesaler to retailer to consumer.

Marketing Plan

Sales and Distribution Plan Outline the distribution methods to be used.

Outline all the different companies, people and/or technologies that will be involved in the process of getting your product or service to your customer.

What are the delivery terms? How will the distribution methods affect production time

frames or delivery? (How long will it take to get your product or service to your customer?)

If your business involves selling a product, you should also include information about inventory levels and packaging in this part of your marketing plan.

Marketing Plan

Sales and Distribution Plan Outline the distribution methods to be used.

For instance:• How are your products to be packaged for shipping and for

display?• Does the packaging meet all regulatory requirements (such

as labeling)?• Is the packaging appropriately coded, priced, and

complementary to the product?• What minimum inventory levels must be maintained to

ensure that there is no loss of sales due to problems such as late shipments and back orders?

Marketing Plan

Sales and Distribution Plan Outline the transaction process between your

business and your customers. What system will be used for processing orders,

shipping, and billing? What methods of payment will customers be able to

use? What credit terms will customers be offered? If you

will offer discounts for early payment or impose penalties for late payment, they should be mentioned in this part of your marketing plan.

Marketing Plan

Sales and Distribution Plan Outline the transaction process between your

business and your customers. What is your return policy? What warranties will the customer be offered?

Describe these or any other service guarantees. What after-sale support will you offer customers and

what will you charge (if anything) for this support? Is there a system for customer feedback so customer

satisfaction (or the lack of it) can be tracked and addressed?

Marketing Plan

Sales and Distribution Plan If it's applicable to your business, outline your

sales strategy. What types of salespeople will be involved (commissioned

salespeople, product demonstrators, telephone solicitors, etc.)? Describe your expectations of these salespeople and how sales

effectiveness will be measured. Will a sales training program be offered? If so, describe it in this

section of the marketing plan. Describe the incentives salespeople will be offered to

encourage their achievements (such as getting new accounts, the most orders, etc.).

Marketing Plan

Advertising and Promotion Plan Describes how you're going to deliver

your Unique Selling Proposition to your prospective customers.

Think first of the message that you want to send to your targeted audience.

Look at these promotion possibilities and decide which to emphasize in your marketing plan

Marketing Plan Advertising and Promotion Plan

Advertising - The best approach to advertising is to think of it in terms of media and which media will be most effective in reaching your target market. Then you can make decisions about how much of your annual advertising budget you're going to spend on each medium.

What percentage of your annual advertising budget will you invest in each of the following: Internet - billboards Television - bench/bus/subway ads Radio - direct mail Newspapers - cooperative advertising with wholesalers, Magazines retailers or other businesses? Telephone books/directories

Marketing Plan

Advertising and Promotion Plan Sales Promotion - If it's appropriate to your

business, you may want to incorporate sales promotion activities into your advertising and promotion plan, such as: offering free samplescouponspoint of purchase displaysproduct demonstrations

Marketing Plan

Advertising and Promotion Plan Marketing Materials - Every business will

include some of these in their promotion plans. The most common marketing material is the business card, but brochures, pamphlets and service sheets are also common.

Marketing Plan

Advertising and Promotion Plan Publicity - Describe how you plan to generate

publicity. While press releases spring to mind, that's only one way to get people spreading the word about your business. Consider:product launchesspecial events, including community

involvementwriting articlesgetting and using testimonials

Marketing Plan

Advertising and Promotion Plan Your Business' Web Site - If your business has or will

have a Web site, describe how your Web site fits into your advertising and promotion plan.

Tradeshows - Tradeshows can be incredibly effective promotion and sales opportunities - if you pick the right ones and go equipped to put your promotion plan into action.

Other Promotion Activities

your goal is to plan and carry out a sequence of focused promotion activities that will communicate with your potential customers.