The New Business Venture MGT 2230

Chapter 8
The Marketing Plan

Opening Profile: Warren G. Jackson, Circulation Experti, Ltd.

INDUSTRY ANALYSIS
Provide sufficient knowledge of the national and local market that can affect
marketing strategy decision making.
Competitor Analysis is the documentation of the current strategy of each primary
competitor.

MARKETING RESEARCH FOR THE NEW VENTURE

1. Define the purpose and objectives. What is the information needed to
prepare the marketing plan?
How much would potential customers be willing to pay for the
product or service?
Where would potential customers prefer to purchase the product or
service?
Where would the customer expect to hear about or learn about
such a product or service?
2. Gathering Data from Secondary Sources.
Trade magazines, newspapers, government agencies, etc.
Before paying for a company to do this, you should exhaust all these
resources through the internet.
A university library can usually provide access to all of these
secondary database sources.

3. Gathering Information from Primary Sources.

Interviewing, focus groups, networking, etc.
Observation is the simplest approach.
Interviewing or surveys are most common methods. Page 238 & 9,
Tables 8.2 & 8.3.
Questions should be designed to fulfill the objectives.
Focus groups should be led by an experienced monitor.

4. Analyzing and Interpreting the Results.

You can hand tabulate results or enter on a spreadsheet.
The evaluation should be based on the objectives of the venture.
Can provide valuable insights regarding the segmentation of the
market.

Understanding the Marketing Plan

1. Where have we been?
2. Where do we want to go?
 3. How do we get there?
4. Page 241, Table 8.4 Outlines the Marketing Plan.

Characteristics of a Marketing Plan

Should provide a strategy for accomplishing the company mission and goal.
It should be based on facts and valid assumptions.
An appropriate organization must be described to implement the plan.
It should provide continuity so that each annual plan can build upon it.
It should be simple and short.
The success of the plan may depend on flexibility.
It should specify performance criteria that will be monitored and controlled.

Internal Variables of the Marketing Plan

1. Financial resources.
2. Management Team.
3. Suppliers.
4. Company Mission.

STEPS IN PREPARING THE MARKETING PLAN

1. Define the business situation which analyzes past and present business
achievements of the new venture.
2. Define the target market, opportunities and threats. A target market is a specific
group of potential customers toward which the venture aims its marketing plan.
3. Market segmentation is the process of dividing a market into definable and
measurable groups for purposes of targeting marketing strategy.
4. Considering Strength and Weaknesses in the target market.
5. Establish goals and objectives to measure the level of performance desired by the
new venture.

Defining Action Programs

Specific activities to meet the ventures goals.
Create a description of the new product or service in the new venture.
Pricing will need to consider costs, margins or markups, and competition.
Distribution makes the product convenient to the customer.

HOMEWORK
Page 254, Breckenridge Brewery.

Answer all three questions in detail.