Chapter ENREPRENEURSHIP

8
BZUPAGES.COM

Entrepreneurship 8th edition Author: Robert D Hisrich, Micheal P. Peters Dean a Shepherd
McGraw-Hill/Irwin Entrepreneurship, 7/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

BZUPAGES.COM

Written Statement Of Marketing objectives, strategies and Activities to be followed in Business Plan

COM conduct market research to respond to these Q‟s involves Secondary / Primary data process  Research . MP responds to three Q‟s  Where have we been ?  Where are we going ?  How do we get there ?  „E‟ BZUPAGES.

 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 ? BZUPAGES.COM Market Research involves gathering of data in order to determine such information: .

Step One: Defining the Purpose or Objectives BZUPAGES.COM Step Two: Gathering Data from Secondary Sources Step Three: Gathering Information from Primary Sources Step Four: Analyzing and Interpreting the Results .

COM Ex: „E‟ may think there is a market for his product but is not sure who the customers will be So ask people what they think of the product or service and if they would buy 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 learn about such a product or service . BZUPAGES. Sit down & Make a list of the information that will be needed to prepare the marketing plan.

COM Dept & Chamber of Commerce Local Banks/ Dept of Labor Local Media .Newspaper articles Libraries:  Government agencies Trade magazines: dept & Chamber of commerce  Internet  BZUPAGES.

COM  Observation: record customers buying behaviors  interviewing: telephone.Mail.personal  focus groups: 10-12 potential customers  Questionnaire: sample questionnaire .Data collection procedures BZUPAGES.

COM  Results should be evaluated and interpreted in response to the research objectives can be cross-tabulated in order to provide more focused results.   Data Example: Entrepreneur compare results of Q‟ by different Age. Occupation. Location. Can be hand-tabulated or entered on a computer BZUPAGES.fine tuning can provide valuable insights particularly regarding the segmentation of the market .

in next 12 months  How do we get there? Q discusses Marketing strategy implementation.who will be responsible for monitoring .when it will occur.COM Where have we been?(operational plan) History of marketplace Marketing Strengths & Weaknesses of the firm Market Opportunities & Threats Where do we want to go (in the short term)?  „Q‟ addresses marketing Objectives & Goals. Designed  to provide answers to three basic questions: BZUPAGES.

COM   Provide a strategy. Specify criteria for control. Be based on facts/assumptions Be simple and short.A    marketing plan should: BZUPAGES. Be flexible. Assignment “Exams” .

list price. allowances for quick payment. credit terms. and warranties. and transportation. promotion. etc.). options. type of wholesalers or retailers. features. media budget. quantity. coupons. Critical Decisions Quality of components or materials. brand name. Combination of product. how many. length of channel.COM Marketing Mix Variable Product Price Channels of distribution Promotion . message. geographic coverage. inventory. and payment period. packaging. Use of wholesalers and/or retailers. Quality image. BZUPAGES. and distribution and other marketing activities needed to meet marketing objectives. price. Media alternatives. sizes. sales promotion (displays. role of personal selling. service availability. and media interest in publicity. style. discounts.

 Consider strengths and weaknesses.COM .  Define the target market: opportunities and threats. Define the business situation. BZUPAGES.  Establish goals and objectives.  Define marketing strategy.

. Performance of the company‟s goods and services. Why it was developed.(satisfy consumers needs)  Information  after a new venture has started up:   Present market conditions.BZUPAGES.COM  Information   for a new venture: Describe how the product or service was developed. Future opportunities or prospects.

 BZUPAGES. Target market: specific group of potential customers toward which venture aims its marketing plan.COM Knowledge of this provides a basis for determining the appropriate marketing action strategy.  Market segmentation: process of dividing a market into definable and measurable groups for purposes of targeting marketing strategy   Otherwise „E‟ have to identify a product or service that would meet the needs of everyone in the marketplace Allows the entrepreneur to more effectively respond to the needs of more homogeneous consumers. .

g...g. Henry ford manufactured a single product(one color. Decide   on general market or industry to pursue. etc) Reebok Discovered that many customers who bought running shoes were not athletes (comfort & Style) BZUPAGES. rate of use) Buying conditions Awareness of buying intention  Buying situation     .COM  Divide     market into smaller groups based on: Characteristics of the customer Geographic Demographic Psychographic Desired benefits (e. product features) Usage (e. one size. one style.

company etc . pric distribution. Restaurant market is segmented by state. family) R part of hospital.COM  Select segment or segments to target.  Develop a marketing plan integrating product. and promotion. type of restaurant (fast food.BZUPAGES. school.

. sales promotion & advertising support). Marketing goals and objectives respond to the question: “Where do we want to go?”. profits.COM   Number of goals or objectives can be limited to between six and eight. Establish  realistic and specific goals and objectives. number of distributors. BZUPAGES. new product launch. sales. pricing policy. ( market share.

brand name. Specific activities outlined to meet the venture‟s business plan goals and objectives. style. Packaging. warranty. delivery time. image. and even the Web site. service. .COM  Product   May consider more than the physical characteristics. features. or service BZUPAGES. price.

COM Costs  Competition  Margins or markups  .Pricing BZUPAGES.

Must also be consistent with other marketing mix variables.Distribution   BZUPAGES.COM Provides utility to the consumer. .

or newspapers. Internet.  . trade magazines. direct mail. radio.COM Entrepreneur needs to inform potential consumers about the product‟s availability or to educate the consumer Methods include: print. or television.Promotion  BZUPAGES.