You are on page 1of 32

'

- ,.i, ;:.'i:-1:r: .:, ..
;.. ...i..J.
:.

::i-"

:-:

.....-:..:....:

THE MARKETING PLAN

ng researeh in

-:

I

..
-r' : ----- !r:
-.;: ,_.
-.rr....-::i

OPENING PROFILE

WÁRREN'G. JACKSON
that organizing and launching a business is the easiest part of
getting started, while sustaining the business is the most difficult and challenging part.

Some experts argue

As we've seen in earlier chapters, buiinesses fail at an alar:ming rate, yet too often we
blame lack of finances or pool.flianagement for the demise. A closer look often reveals
that the reat problems relate to marketing issues such as

identifying.the customer, defining the right product or
servíce to meet customer needs, pricing. distribution, and
:;

... '

'

.:: ,,
. :,'

r

,ti '. .::.

...

As technology continues to.change, providing easier access to extended interna,.' tional rnarkets, it is significantly mo re important that today,s entrepreneur become
., more focused on developing a- comprehensive and detailed marketing plan. Markets

''
-r: ' "
' t'. . '. . ..t' .,' -. are much more dynamic than ever before. making it necessary to anticipate changes in
1:::-: :i '"- -- 'consumer needs and make the necessary changes in marketing actions. Planning, as
:-:1:¡-.:..:: ,,.,.,

: :':

:

:;ffi'"il

:i,"iill

í;iiiT#il:ff:;ffill::;:ilil::1."-:1,'l:tT:i;
The marketing plan is a tool that can assist the entrepreneur
-term goalsand objectives and marketing strategies, as well

entrepreneurto make necessary changes in those strategies
ant marketing challenges facing the entrepreneur is to effec's products or services in a highly competitive environment.
tain major players that may dominate the market and have

efend against any new venture. However. within many of
are custorners who are not completely satisfied with the
marketing planning that targets and positions the new vencan meet the needs of these customers, leading to opportu. Such an approach was taken by Circulation Expertí, Ltd.
y is a wholly black-owned public relations. advertising, marm. lt officially began in 1968 as the brainstorm of Warren
d that major newspapers were not effectively reaching the
i.

irr
.,.
223

224

PART 3

FROM THE OPPORTUNITY TO THE BUSINESS PLAN

Warren Jackson entered the newspaper busíness atThe New York Times in 1952,
where he eventually became an assistant manager in the circulation department. Later
working for the Amsterdam News, he was asked by Time, lnc., to assist that firrn in the

circulation and distribution of a new general market daily afternoon publication.
Although it was never published, Warren realized that his newspaper knowledge and
expertise could be beneficial to media and major corporations all across the country.
With this knowledge and a $12,500 contract 'from Tuesday magazine, he then started
Circulation Expertí out of his home. With¡n a year of this beginning, Expertí's contract
volume reached $200,000, leading Warren to move the business out of his home to a
new small office in Hartsdale, New York. Although he was not armed with a formal
marketing plan. Waren's understanding and recognition of the unmet needs of a sig-

nificant and growing consumer target market led Expertí to become the largest and
most prominent minority-owned public relations agency ¡n the Un¡ted States.
This successful company is unique-not only in the growth it has experienced over the
years but also because the firm has remained a family-owned organization involving

Warren's wife, Tena, who came on as CFO in 1972. and their three children, Tenley-Ann,
Terrance, and Garrison. Warren and Tena have since given up the reins of the day-to-day

activities, with Garrison now assuming the position of president and cEo.
Over the years the company has added an advertising division (1978) and a Hispani<

division (1988). Both new divisions have allowed the company to offer one-stop
shopping to clients looking for African American and Hispanic marketing. This effort
has provided opportunities

to add major clients to an already noteworthy list.

The

comp¿ny has serviced many major Fortune 500 clients such as JPMorgan Chase. ColgatePalmolive, lBM, Miller Brewing, seven-up, Kraft, General Motors, Reebok, sears. Ryder

to name a few- Billings have also grown, from
around $1 to $2 million in the early years to $20 million in more recent years. The company has positioned itself well to withstand the current economic downturn. Anticipating minimal growth in 2009 from large multination¿l clients, the company has shifted

Systems, unilever, and General Mills,

its primary focus toward rnidsize companies and welf-funded start-ups that can benef

it

from Expertí's marketing and multicultural experience. The agency will continue to
manage several company-owned initiatives launched in 2006 as well.
The Jacksons represent a unique success story dating back to Warren's recognition of a
need that he felt he could meet with a marketing plan. This firm's success is not notable

for its client base alone but also because of the significant amount of charity and philanthropic work in which all members of the family are actively engaged. For its success in
business and related philanthropic endeavors the company has been recognized with numerous awards from PRWeek, Black Enterpnse magazine, National Association of Market
Developers, Public Relations Society of America, and Family Digest magazine, in addition

to receiving numerous

awards from major corporations and the New York City Department of Health. The firm was inducted into the Business Council of Westchester's Cham,
ber of Commerce Hall of Fame in 2006. Under the direction of Garrison and his brother
and siste¡ and with Warren and Tena always there for support, the firm's outlook is ex-

tremely favorable. Today the company plans and sets clear goals and objectives and continues to evaluate market opportunities to sustain successful long-term growth.l

Factiva. promotions. One of the important benehts of the upside-down pyramid approach to industry analysis is that the entrepteneur can begin to understand competitors' strengths and weaknesses. Then it proceeds to more local market environmental and industry trends. distribution.1. or MSN search can link the entrepreneur to many good sources of information on competitors. Competitor Analysis The entrepreneur should begin this step by hrst documenting the current strategy of each primary competitor. It begins with the broadestbased assessment of environmental and industry trends. and any other marketing strategy or company information available should be reviewed. In Chapter 7 we described this informationseeking process as an upside-down pyramid (see Figure 7. The informa- tion on competitors can be gathered initially by using as much public information as possible and then complementing this with a marketing research project. This market research project may add important valuable insights that can assist the entrepreneur in determining the most effective market position. promotion. In addition to the secondary sources.CHAPTER 8 THEMARKEflNGPLAN 225 As we can see from the example of Circulation Expertí. INDUSTRY ANAL}si5 Prior to the preparation of the marketing plan the entrepreneur will need to complete the industry analysis s€ction ofthe business plan.1). which may provide valuable insight into how to position the products or services of the new venture. Newspaper articles. setting market goals and objectives. interviews with distributors and customers. A simple Google. and determining what action programs are necessary to meet those goals and objectives. Techniques for recording and evaluating this information on the competitive environment are discussed in the following section. A library search using such databases as Business Source Complete. Developing an appropriate strategy to meet those needs includes an understanding and assessment of the industry. The primary focus ofthe industry analysis is to provide suffrcient knowledge of the environment (national and local market) that can affect marketing strategy decision making. Sample sources along with an appropriate example are also identihed in Chapter 7. The steps in the market research process and the avenues available to the entrepreneur for obtaining assistance in this process are discussed later in this chapter. including competition. and product or service benefrts. catalogs. This can be organized by using the model in Table 8. or Hoover's can also provide access to any newsworthy articles on specific competitors. the entrepreneur may also decide that a market research initiative is needed to secure more specihc information on such variables as customer needs. warren's efforts in creating the venture began with an understanding and assessment of the needs of a particular segment of the market. many opportunities exist in a competitive environment. competitive strengths and weaknesses. price. Yahoo!. The entrepreneur should review this section of Chapter 7 to understand what information is included and how it can be obtained. These articles should be scanned for information on competitor . Web sites. LexisNexis. which is where we will begin our discussion in this chapter. Secondary sources can provide much of the information needed on each of these issues.

226 PART 3 FROMTHEOPPORTUNITYTOTHEBUSINESSPLAN ':. Once the strategy has been summarized. Since marketing research costs vary signihcantly.1 can then be utilized to formulate the market positioning strategy of the new venture. at least initially. the following paragraphs will help explain the steps in gathering primary data as well as some of the secondary sources that can provide data to the entrepreneur. Marketing research involves the gathering of data to determine such information as who will buy the product or service. If a more formal data collection process is being considered.::::. There are also some research techniques that are not costly and can provide. . Suggestions on how to conduct market research are discussed next. There are also opportunities for entrepreneurs to contact theirlocal colleges or universities to identify faculty who teach marketing and are wilting to have external clients for student resea¡ch projects. MARKETING RESEARCH FOR THE NEW VETdTURE lnformation for developing the marketing plan may necessitate conducting some marketing research. One ofthese techniques is the focus group. as shown in the table. Will the new venture imitate a particular competitor or will it try to satisfy needs in the market that are not being hlled by any other company? This analysis will enlighten the entrepreneur and provide a solid basis for any marketing decision making discussed in the marketing plan.:-::' strategies and should identify the names of individuals who were interviewed. Any of these individuals as well as the author of the article can then be contacted to obtain further information. what is the most appropriate distribution channel. referenced. which is discussed later in this sectlon.1. All the information included in Thble 8. or even mentioned in the article. signihcant evidence to support the market potential for the new venture. All the information can then be summarized in the model provided in Table 8. the entrepreneur will need to assess available resources and the information needed. Marketing research may be conducted by the entrepreneur or by an external supplier or consultant. the entrepreneur should begin to identify the strengths and weaknesses of each competitor. and what is the most effective promotion strategy to inform and reach potential customers. what is the size of the potential market what price should be charged.

in which case a primary data gathering will then need ro be planned. However. Before considering either primary sources or commercial sources of information. as does the Department of commerce.gov). but the cost may be prohibitive to the entrepreneur.S Census Bureau publishes a wide range of census reports. local banks.2. and Information Resources. .2. state departments of labor and industry.CHAPTER 8 THEMARKETINGPLAN 227 Step One: Defining the Purpose or Objectives The most effective way to begin is for the entrepreneur to information that will be needed to prepare the marketing p neur may think there is a market for his or her product but will roduct is appropriate in its present fo*n Thus. one objective wou they think of the product or service and whether they would buy ackground demographics and attitudes of these individuals.sba. the entrepreneur possible sources of research data at the Small Business Admin_ istration Web site (www. Audits and Surveys' National Market Indexes. the U. chambers of commerce. and local media. Inc. Other objectives may be to determine the following: " " ' 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 leam about such a product or service? Step Two: Gathering Data from Secondary Sources Commercial data may also be available. This would satisfy the objective or problem that the entrepreneur defined earlier. business libraries may subscribe to some of these commercial services such as Nielsen Indexes. Other excellent sources at the state and local levels a¡e the State Department of Commerce. Some of the actually be accessible through a local university or community all the sources of data described in Table g. The mo that will as product or tive source pletion of this task will also determine if more da¡aare needed. A comprehensive list of Web sites (some a¡e fee based and others are free) as well as a number of excellent databases can be found in Table 8. the entr€preneur should exhaust all free secondary sources. At the federal level.

228 PART 3 FROMTHEOPPORruNFYTOTHEBUSINESSPLAN .

:How would I find them.T"fJ1[iiii". redefine the profile of your ideal customer .. "your money will be better spent hiring someone 2. . l. We need additional sales reps that are very well connected with buyers.áse our corporate profile?-D.. you can find them through associations such as the Manufacturers.stee/ gy. Calif. One study of new ventures found that . a speaker.'-- l .we clusive contract with Ford Mototi but that contract 'gxpired in 2009. but without a coherent marketing strategy.:iil. such as a questionnaireObservation is the simplest approach.""s. ¡t'. says Trailer.Til1. and what else can t do to íncre. Escondido. l once yo: l:u" developed the marketing strategy. and identify half a dozen new industry segments. they won. a research *source:ReprintedfromAugust28. Agents National Association and Web sites such as ing a government division that supplies federal or RepHunter. or experimentation-and usually a data collection instrument. for instance. ar: yo. Networking. They can havethe best products and the most innovative technology.. focus groups. .-: . build a brief but concise go-to-market strategy. interviewing.while automakers struggle.:-.¡¡'. says Joanne Black. Do you still need to who does strategic planning or marketing plans and developa marketing strategyfirst? can help you devise a strategy and implement it.e.rhe ¡Hffiil.* state agencies with stainless steel tubing? Evaluate your technology's bottom-line value and find a way After reading the above article how would you to demonstrate it to customers. Barry Traile¡ founder of CSO Insights.u better off hiring your own sales staff or Rather than bringing in commission-based sales reps using independent reps or both? who don't know your product or how best to sell it. Gathering primary data involves a data collection procedure-such as observation.t succeed. which is more of an informal method to gather primary data from experts in the field. she says..: -.in a crowded those contracts expire.com. and customer relationships. www. can also be a valuable low-cost method to learn about the marketplace.-1 a small ss.exclusive can help you educate. or whether you shouid expand your sales team with independent reps..businessweek. Before you hire additional sales staff. and founder of NoMoreColdcalling.net. can you find applications for your products and technology in other markets? Should you think about start- new markets.G. Step Three: Gathering Information from Primary Sources Information that is new is primary data.:' - .. A: Small companíes that rely on long-term.lXrilLfilf#Z:1ff". respond to the following questions? Next.200gissueof BusinessWeek rirm that studies sates effectiv"n"rr.:' : r . train. sales trainer. "The bad news is that. networking. What if your company has both excf usive contracts and open contracts. you'll know whether you can handle sales in-house.The entrepreneur might observe potential customers and record some aspect of their buying behavior. and manage your sales contracts often find themselves in difficult straits when team. .'. saleJ infrastructuré.'" notion of investing in infrastructure in sales ano Krein.

Interviews may be conducted in person. used by the entrepreneur should include questions specifrcally designed to fulfrll one or more of the objectives the entrepreneur listed earlier.3 Interviewing or surveying is the most common approach used to gather market information. using networking. Each ofthese methods offers advantages and disadvantages to the entrepreneur and should be evaluated accordingly. It is more expensive than observation but is more likely to generate more meaningful information.a Table 8. trade associations. such as the venture Gopher It. The questionnaire. or data collection instrument. Less successful ventures were more focused on gathering information on general economic and demographic trends and hence had less of a sense of what was happening in their specific target market. whose business plan is used as an example in Chapter 7. the customer. which are to ascertain the need. by telephone. and are easy to answer. Thble 8. particularly for frrms with an existing customer base. do not bias the respondent. and the industry. Questions should be designed so they are clear and concise.230 PART 3 FROMTHEOPPORTUNIWTOTHEBUSINESSPLAN the most successful ventures (based on growth rate) were focused on information about competitors.3 provides comparisons ofeach ofthese three methods of data collection. an approach growing in popularity. or online. through the mail. Mail Personal .4 illustrates a sample questionnaire employed by an entrepreneur trying to assess the need for a personal errand service. and recent publications. The questions are designed to satisfy the objectives ofthe entrepreneur.

CHAPTER 8 THEMARKETINGPLAN 231 .

Step Foun Anatyzing and Interpreting the Resutts Depending on the size of the sample. like any other type of plan. It serves a number of important functions or purposes. It is designed to provide answers to three basic questions:5 1. The marketing plan represents a signihcant element in the business plan for a new venture. marketing strengths and weaknesses of the hrm. Primarily the marketing plan establishes how the entrepreneur will effectively compete and operate in the marketplace and thus meet the business goals and objectives of the new ventur€. the entrepreneur can hand-tabulaúe the results or enter them on a computer. In either case. may be compared to a road map used to guide a traveler. sex. focus groups of a cross section of African American women were organized. UNDERSTANDING THE MARKETING PLAN Once the entrepreneur has gathered all the necessary information. Continuing this fine-tuning can provide valuable insights. The focus group discusses issues in an informal. which then serves the important purpose of establishing budgets and making financial projections. Often this is a good project for students at a college or university in a marketing research class. occupation. which is discussed later in this chapter. For example. this segment would focus on some history of the marketplace. he or she can sit down to prepare the marketing plan. it is recommended that enhepreneurs seek assistance if they have no experience in designing questionnaires. members of the Service Corps of Retired Executives (SCORE). Then datacan be cross-tabulated to provide more focused results. Focus groups are a more informal method for gathering indepth information. and so on. The focus groups were designed to ascertain what services should be offered.e in hair styling and hair ca¡e services for African Americans. Since the instrument is important in the research process.To understand the hair ca¡e needs and most effective marketing strategy for this market. two entrepreneurs were considering a chain of hair salons that would specializ. pricing strategy. and the most effective advertising/promotion strategy. open format. location. . or students in marketing resea¡ch classes at a local college or university. For example. Support in the design of questionnaires can often be attained through small-business development centers. When the marketing plan is integrated as part of the business plan. The marketing plan. A focus group is a sample of l0 ro 12 potential customers who are invited to participate in a discussion relating to the entrepreneur's resea¡ch objectives. particularly regarding the segmentation of the ma¡ket. this would imply some background on the company. and ma¡ket opportunities and th¡eats. the demand for these services. summa¡izing the answers to questions will give some preliminary insights. enabling the enfepreneur to ascertain certain information. the entrepreneur can assign costs to these strategies. the results should be evaluated and interpreted in response to the research objectives that were specified in the first step of the research pftrcess. Once the strategies of how the business will operate have been established. the entrepreneur may want to compare the results to questions by different age groups. Someone other than the entrepreneur should lead the focus groups.232 PART 3 FROMTHEOPPORruN$YTOTHEBUSINESS PLAN locatiorL and determination of the most important services to offer and price. its strengths and weaknesses. and a discussion ofthe opportunities and threats in the marketplace. Often. The information gathered was then used in the preparation of the marketing plan. Where have we been? When used as a stand-alone document (operational plan). some background on the competition.

Management should understand that the marketing plan is a guide for implementing marketing decision making and not a generalized. It should be .rcial document. Some important characteristics that must be incorporated in an effective marketing plan are as follows: ' ' It should provide a strategy for accomplishing the company mission or goal. as well as the general company mission.6. or financial resources sis 9. CHARACTERISTICS OF A MARKETING PLAN The ma¡keting plan should be designed to meet certain criteria. superf. the objectives and goals often go beyond the frrst year because ofthe need to project profrts and cash needs for the first tfuee years. personnel changes. The remainder of this chapter focuses on the shortt'erm aspects of the ma¡keting plan.CHAPTER 8 THEMARKETINGPLAN 233 2. Some of the facts needed are illustrated in Table 8. mined and used in the income and cash flow projections. while not ignoring the fact that the entrepreneur will also need to provide market projections for years 2 and3 as part ofthe business plan.5 on siness and marketing or service. In the initial business plan. where do we want to go (in the short term)? This question primarily addresses the marketing objectives and goals of the new venture in the next 12 months. The mere or- recognize the c¡itical issues but also to be prepared in the event that any change in the environment occurs. 3. It must provide for the use of existing resources. Each year the entrepreneur should prepare an annual marketing plan before any decisions a¡e made regarding production or manufacturing. based on facts and valid assumptions.

A voluminous plan will be placed in a desk drawer and likely never used. strategies. [f not attained. and human resources must be described. The success of the plan may depend on its flexibility. To attain this goal. .1 provides a summary of the components that constitute the marketing system-Ó As can be seen from Figure 8. However. These factors should be identihed and discussed in the industry analysis section of the business plan discussed earlier in this ten and then put aside. An appropiate organization must be described to implement the marketing plan. both internal and external to the firm. Changes. For example. It should be simple and short.g. successfully meeting longer-term goals and objectives.1. [t should provide for continuity so that each annual marketing plan can buitd on it.234 PART 3 FROMTHEOPPORTUNITYTOTHEBUSINESSPLAN Allocation of all equipment. markeling plan It is clear from the preceding discussion that the market plan is not intended to be writ- Written statement of marketing objectives. the plan should not be so short that details on how to accomplish a goal are excluded. then new strategy or performance standards may be established. It should specify performance criteria that will be monitored and controlled. the entrepreneur may establish an annual performance criterion of l0 percent of ma¡ket share in a designated geographic area. if necessar¡ should be incorporated by including what-if scenarios and appropriate responding . it is important to understand the marketing slstem. Since the term mnrketing plan denotes the signihcance of marketing. at the end of three months we shouldhave a 5 percent share of market). . The marketing system identihes the major interacting components. the environment (external and internal) plays a very important role in developing the market plan. financial resources. that enable the hrm to successfully provide products and/or services to the marketplace.. . a . certain expectations should be made at given time periods (e. . Figure 8. and activities to be followed in business plan mrketing sJStem lnoeracting intemal and external factors that affect venture's ability to provide goods and services to m€et customer needs It is intended to be a valuable document that is referred to often and guideline for the entrepreneur during the next time period. strategies.

á. In addition to the external environmental factors.. although more controllable by the entrepreneur. the " entrepreneu-r must build an effective management team and assign the responsibilities to implement the marketing plan. should outline the hnancial needs for the new venture. Since the price of supplies. where raw materials are scarce or there are only a few suppliers of a particular raw material or paf. . and management assistance. The financial plan. ' S-uwliers' The suppliers used are generally based on a number of factors such as price. can also affect the preparation of the marketing plan and implementation of an effLctive marketing strategy. quality. discussed in chapter 10.CHAPTER 8 THEMARKETINGPLAN 235 chapter' It should also be noted that these factors are typically uncontrollable but need to be recognized as part of the marketing plan. delivery time.It is extremely important in any organization to make appropriate assignments of responsibility for the implementation of the marketing pran. " Management team. it is important to incorporate these factors into the marketing plan. there are internal environmental fac- to-rs which. In some cases. and so on' are likely to impact many marketing decisions. Any marketing phn ár strategy shourd consider the availability of hnancial resources as well as the amount of funds needed to meet the goals and objectives stated in the plan. the entrepreneur has little control over the decision. Some of the major internal variables are as follows: ' Financial resources. In some cases the availability of a certain expertise may be uncontrollabl @.a shortage of certain types of technical managers). delivery time. In any event.

the entrepreneur needs a strong . suppliers. The problem may be easily corrected by a sit-down with the employee and by taking time to reíterate company ethics policies. entrepreneurs know that selling with a conscience makes good balancesheet sense over time. Here are a few reaSons to encourage your sales force to behave honorably in a frequently shameful world: . McCall. Source: Adapted from Kimberly L. your ethics be clear In establishing about which behaviors are acceptable and which cross theline.. ing unethical behavior. pricing. These four factors are referred to as the marketing mix. By requiring your reps to sell with class. Every business owner understands that an impaired reputation is death to trade.DEVITS ADVOCATE Do your sales ieps know how far is too far when it comes to landing that sale? Ethics in sales may not be the quickest róute tó suicess-cutting corner3 is almost always a more expeditious. distribution. in addition to the morality of adhering to ethical business practices.2003). You must piact¡ce what you preach. Dell Computer.Eachvariable will be described in detail in the strategy or action plan section of the marketing plan discussed later in this chapter. and then hold your emp[oyees accountable. you'll prove to your staff you do more than just lip-sync empty dogmas about values. Reputation rules. This mission statement or business definition will guide the frrm through long-term decision making. 5elling ethically translates into treating . customers. Although flexibitity may be an important consideration. There will be times when a¡ employee will need to be disciplined or even fired. route to riches.. Cynicism is nipped in the bud. o Reps are your brand's emissaries. p. price.ETHIC5 . if shortlived. Company mission. Keep tabs on employees by investigating credible ethics violations claims from co-workers and customers..rne the nature of its business. lf a salesperson crosses the ethical line-whether by lowballing a price or by making unrealizable promises-the client will not trust your product or service in the future. encourages its employees to report integrity issues. This statement helps to dehne the company's mission and basically describes the nature of the business and what the entrepreneur hopes to accomplish with that business. and employees with integrity. and distribution and other marketing activities needed to meet marketing objectives 236 The preceding environmental va¡iables will provide much important information in deciding what will be the most effective marketing strategy to be outlined in the ma¡keting plan. Having been burned by companies ranging from telecommunications to financial services. . _. As indicated in Chapter 7. every new venture should def.. for instance. The actual short-term marketing decisions in the ma¡keting plan will consist of four important marketing variables: product or service. . "Devil's Advocate.75. and promotion. But. Working with clients in an aboveboard way helps you surpass less trustworthy competitors and make your company a safe place to do business. parameters. " good for business. lt thus sets high standards for émployee conduct and gives employees a forum for report." Entrepreneur tn gazine (May 3. THE MARKETING MIX marketing mLv Combination of product. consumers are warier than ever. promotion.

If the plan is being wrifte. Defining the Target Market 0pportunities and Threats Either from the industry analysis or from the marketing resea¡ch done earlier. To fully respond to this question. after the new venture has started up.g-' to satisfy consumer needs). The defined target market will usually re-present one or more .been discussed in an earlier section of the business plan. describing how the product or service was developed and why it was de_ veloped (e. Knowledge of the target market provides a basis for determining the appropriate marketing action strategy that will effectively meet its needs. Any future opportunities orprospects should also be included in this section of the plan. Thus. the entrepreneur should have a good idea of who the customer ot target nnrkel will be. It also considers many ofthe factors that were dehned in both the environmental analysis section of the business plan (see Chapter 7) and the industry analysis section discussed earlier in this chapter.nio.7.CHAPTER 8 THEMARKETINGPLAN 237 base to provide direction for the daytoday marketing decisions. at this point the entrepreneur should simply review some of the key elements of this section to help provide a context for the marketing segmentation and actions that will be stated in this section of the business plan. Each of these stages' when completed. the entrepreneur should provide a review of past performance of the product and the company. It responds to the hrst of the three questions mentioned earlier in this chapter. STEPS IN PREPARING THE MARKETING PLAN Figure 8. it would contain information on piesent market conditions and performance ofthe company's goods and services. the background will be more personal. trims is u n"* u.2 illustrates the various stages involved in preparing the marketing plan. Each of the steps is outlined anddiscussed. Some of the critical decisions in each areaate described in Thble g. The industry and competitive environment has already.". will provide the necessary information to fbrmally prepare the marketing plan. using examples to assist the reader in fully undcrstanding the necessary information and procedure fbr preparing the marketing plan-7 Defining the Business Situation situttion analysis Describes past and present business achievements of new venture lnrget market Specific group of potential customers toward which venture aims its marketing plan The sítuation analysis is a review of where we have been.

Market segmentation allows the entrepreneur to more effectively respond to the needs of more homogeneous consumers. His Model T was produced in large numbers on assembly lines. p. Henry Ford's vision was to manufacture a single product (one color. one SiZe. Although tify . 198t). it is important even before beginning the research to understand what market segmentation is before determining the appropriate target ma¡ket. Otherwise the entrepreneur would have to idena product or service that would meet the needs of everyone in the marketplace. Thus. Market segmentation is the process of dividing the market into small homogeneous groups. etc. one style.238 PART 3 FROM THE OPPORÍUNITYTO THE BUSINESS PLAN Sourca: Adapied t-rcm David mnrkel segmentatian Process of dividing a market into definable and measurable groups tbr purposes of targeting marketing strategy S HopkinlThe Mtrkering Plan (NewYork: The Conferene Boad.) for the mass market. l7 segments of the entire market. enabling the hrm to reduce costs through specialization of labor and materials.

roadditioll . both spouses working (most likely professionals). and cace) 3. and employment. PTA members. Psychographic (e. is to identify candidate communities that would match the user profile. and young children typically between 10 and 15 years old.g.g. Awareness of buying intention (e. Buying conditions (e. Decide what general market oc industry you wish to pursue. Usage (e.g. With a clear understanding of . time available and product purpose) 4. Buying situation 1. the venture might choose to sponsor sehool events and activities. Divide the market into smaller groups based on characteristics of the customer or buying situations. The major issues initially involve careful targeting. This would help the entrepreneur understand the needs and buying intentions of any potentíal target market. occupation. product features) 2. rate of use) 3. education.. The buying situation is dependent on the venture's establishing credibility in the community. They bought the shoes for eomfort and style. pecsonality and lifestyle) B. Select segment oc segments to target. sueh as schooI administrators. age. price. appoint local respected community members to its board. or send company information through direct mai!. Charaeteristics of the customer L Geographic (e. distribution. the entrepreneur can then conduct marketing researeh in the identified towns that seem to match the target market profile.. as well as understanding the needs of this target market... or other local agencies. any successful mass-market strategy employed today would be unlikely. country. since we know the target market.. The first decision to be made. The service wiU be marketed to households that have high income. and promotion.CHAPTER 8 THE MARKETING PLAN 239 his strategy was unique. Once this step is complete and a few towns have been identified. income. ages of children. Firestone then developed a marketing plan dlat was targeted direetly to this segmento The process of segmenting and targeting customers by the entrepreneur should proceed as follows :8 1. region) 2. Demographic (e.. Town census research and any othee available secondary soueces are a logical starting place and wiU reveal demographic data on income. A. The shuttle service is designed to taxi children (lO to 15 years old) using a minivan or similar vehicle to medicaI or othee related appointments and after-school aetivities.g. Pau l F"lreslone of Reebok discovered that many consumers who bought running shoes were not aLhletes. city.g. using che approach mentÍoned earlier.g. For example. place advertisements in local newspapers. The analysis from this research would then assist the entrepreneur in selecting the cornmunity in which to launch the service. Desired benefits (e. Even if specific households can be targeted. sex. marketing actions will need to focus on getting the targel rnarket's anention and creating an awareness of the benefits chat this service can provide. IV. the marketing strategy (particularly sales strategy) wi ll /leed to concentrate on firsl e tablisbing credibility and community trust T his can be accompLished in a number of ways but will likely begin with an effort to gain the support of the key townspeople. These aetivities wouId be non-school-related activities since sehools would most likely offer bus service foc their students. In 1986. familiarity of produet and willingness to buy) liI..g. state. Let's assume that an entrepreneur is eonsidering offering an after-sehool student shuttle service in a local community in the suburbs of Boston. Develop a marketing plan integrating product. n.

For example. the success sensitive to drivers. A continued presence in the community may also allow the entrepreneur to expand this shuttle service to include other segments of the market. Foi example. its primary stfengths tition. Once credibility has been established in one community. it will be important to carefully select Estabtishing Goats and Objectives marketing goals and objecüves Statementsof level of performance desired by new venture resent key areas to ensure marketing success- Defining Marketing Strategy and Action Programs s marketing strategy and actinn plan Specific activities outlined to me€t the venture's business and objectives g strategy and to the question: marketing mix made for each variable are discussed next- plan goals and objectives ProdUct Or Service Thís element of the marketing mix indicates a description of the product or service to be marketed in the new venture. such as senior citizens.24O PART 3 FROMTHEOPPORruNITYTOTHEBUSINESSPLAN who the customer is and a combined sales effort and marketing progranl the entrepreneur can be more assured of sales gtowth and increased revenue. in its market are: r strengths and weaknesses in the target mafshuttle service venture. Considering Strengths and Weaknesses It is important for ket. This product or service dehnition may consider more than the physical characteristics. the company has the support of local schools. and its usage base in the selected community is an excellent match for the pronce gained from initiating this service in one jected g new business in other communities' comm inability to gain complete credibility in the We of children. it will be easier to expand to other communities. Dell Computer's . all train and consumer needs. Thus.

.CHAPTER 8 THE MARKETING PI.AN 241 In each of these examples the entrepreneur may frnd it necessary to consider the role of com-petition and markups (discussed later) as well as an overall positioning strategy befbre finalizing price.

Channel of distribution strategy considerations are summa¡ized in Table 8.ü).00 price and decide that. Although these services would increase the costs to the entrepreneur.00 for the T-shirt if it is unique enough. this service is more likely to be considered a convenience by the target market. if consumers are unable to discern any difference. the entrepreneur may f. Often. The lower markup and hence lower proht accepted by the entrepreneur in this case is a strategy used to increase demand in the short term (market penetration strategy) but could influence the competition to also lower its price. the entrepreneur is forced to charge the same price as the competition. the entrepreneur has more flexibility and should have a clea¡ understanding ofthe inherent costs.8.242 PART 3 FROMTHEOPPORruNFYTOTHEBUSINESSPI-AN the final price to the consumer would be $3. If the market for a new venture is highly concentrated. it is more difficult to compare prices with competitors since the competition is more indirect. Distribution This factor provides utility to the consumer.89.00 price may be charged. Any attempt to increase profits in this situation would have to come from reduced costs. price may not be a concern. If the . Competition. a high-quality product will not only carry a high price but should also be distributed in outlets that have a quality image. it makes a product convenient to purchase when it is needed. they would establish a distinctive image for the product in a nondifferentiated product category. In our student shuttle example. or free long-term repair. Given that the re0ailer maintains costs equivalent to the industry standards. A higherprice may also be supported by market research data. Here we might compare taxicab prices or bus prices. since competition offers the same product for $2. allowing a higher price and. A ret¿iler may look at the $3.75 because the product has unique benefits (oxygen and other ingredients). In a nondifferentiated product market (such as clothing or a portable radio). For those situations where the product or service is unique in the marketplace. However. marketing research may reveal that consumers are willing to pay more if you offer service benefits such as free home delivery. If competitors'T:shirts are $9. this markup would be expected to cover overhead costs and some profit. then a higher than $9. guarantees on the life of the item. potentially. the price will need to be equivalent to that of the competition. Otherwise. The ctothing retailer may be able to charge more than $9. thus eventually reducing the profit margins for everyone.This variable must also be consistent with other ma¡keting mix variables. a higher quality image than that of the competition. Standard markups can be ascertained from trade publications or by asking suppliers. such as a major metropolitan a¡ea the entrepreneur mav consider direct sales to the customer or to a retailer rather than usins a wholesaler. when products cannot be easily differentiated (see the earlier T:shirt example). that is. Thus.50) than the competition's price of $5. Generall¡ in a nondifferentiated product market there is little room for price variations from the competition. The important thing to remember is that there is a total cost and proht margin to get to the final price. For the oxygen-based rug cleaner. Innovations such as technology products (LCD televisions or interactive games such as those for the Wii) or new drug products may warrant a higher price or skimming straúegy for the new venture to recover some of its high development costs. he or she would like to offer the item at $2.rnd it possible to justify a higher price (say $6. Changing one of these items will impact the other two factors ln some manner. and as such.99.00 but the quality of our clothing retailer's shirts is graphically superior. The target market is also in the upper-income category. and therefore convenience may be more important than the cost of the service.

or bullry. th" will "o.."p. . a sales staff. Dell Computer initially chose to use direct maiiand the Internet to distribute its products. and the use Middlemen such as wholesalers and retailers can add important value to the product. Middlemen also have important experience in the marketplace that can suppof and assist the entrepreneur in his or her marketing strategy. a more direct channel would make sense because the costs of handling and shipping would drive the costs up to a prohibitive level. Environmental issues may also be important in channel strategy.CHAPTER 8 THEMARKEflNGPLAN 243 market is dispersed across a wide geographic are4 the cost of direct sales may be prohibitive of a longer channel with wholesalers and retailers may be necessary.. delivery. ro name a few. singleproduct start-up because they operate with economies of scale by representing many other businesses. creating a major differentiation from its direct competitors. it then sought other channels such as electronics retailers. Ifihe product is very expensive. and maintenance that would not be feasible for a siart-. Their costs for providing these benefits are much lower thanihe costs for a small. are too costly for a small start-up to absorb. Special considerations and regulations regarding such products as chemicals or food unJá*i products. . Attributes ofthe product also affect the channel decision. perishable. In our oxygen-based rug cleaner that "*u-!t". new venture may also consider brokers'or manufacturers' representatives to reach re. Competitor strategf is also important to consider since alternative choices may help to differentiate the product.They can provide functions such as storage.4 tailers or end users. For example. Once it became esiablished in the market.u. Manufacturers' representatives do not take title Lr physical possession of any products' Theirrole is to act on behalf of a number of noncompetingtompanies share the cost of their services. promotion or advertising."rr.rp venture.

storage. a nutrient-enhanced water. or carpeting) that would add the rug cleaner as a complement to their other products. and newspapers.L. or newspapers. The entrepreneur should carefully evaluate each alternative medium. all sell their products using multipte channels such as retail stores. In this case the entrepreneur may look for those representatives that a¡e presently marketing household cleaners or other similar products to retail outlets. Clothing retailers such as Sports Authority. Tom recently launched a new venture Owater. the entrepreneur should look at all the preceding factors. As the venture grows. radio. A local service or retail company such as a pet store may find that using community cable stations is the most cost-effective method to reach customers.Busiñess Markets Marketing strategy decisions for a consumer product may be very different from the decisions for a business-to-business product. Web sites. Los Angeles. using advertising media such as print. furniture. Channel decisions will also change over time. Each of these may require a different communications channel to enable the customer to buy the desired products. In selecting the channel. As stated earlier. and multiple shipping points. .24 PART 3 FROM THE OPPORTUNITY TO THE BUSINESS P|. Tom has chosen to promote his productthrough an intensive sampüng campaign. is usually necessary for the entrepreneur to inform potential consumers about the product's availability or to educate the consumer. Bean. Usually television is too expensive unless the entrepreneur considers cable television a viable outlet. The consumer marketing effort. [n marketing to consumers. The ability to focus on specihc large markets has enhanced sales at a rate that would have been much more costly using more traditional mass media-e Marketinq Strateqv: Consumer versus Busi ness'-to . Orders then would be sent directly to the new venture and would be shipped from there to the end user This saves on the costs of a sales staff. Larger markets can be reached using the Internet. considering not just costs but the effectiveness of the medium in meeting the market objectives mentioned earlier in the marketing plan. catalogs. Dell Computer markets its products to both consumers and businesses.business markets the entrepreneur sells the product or service to another business that uses the product or service as part of its operations. New York. and Phitadelphia. In some instances it may be necessary to use more than one channel to service customers more efficiently as well as increase sales potential.AN may consider contracting with manufacturers'representatives that sell commercial producs (such as cleaning supplies. Chicago. the company uses direct mail and the lnternet. the entrepreneur may hnd that hiring its own sales force is more efficient and is no longer cost prohibitive. trade magazines. and to businesses it uses its own sales force. Wal-Mart. as he learned as one of the founders of Nantucket Nectars. Sometimes the entrepreneur has to be creative with the existing budget and costs of buying major media space or time. Not able to compete with larger companies in this market. Manufacturers'representatives could also be used to market to the consumer or household market. This sales force calls on businesses with the intent of selling a larse volume of PCs or accessories in one transaction. or television. L. Macy's. [n business-to. direct mail. a Web site may also be valuable to create awareness and to promote the products and Promotion It services of the new ventute. Owater may do as many as Six or seven sampling events a day in key markets such as Boston. Brokers a¡e similar to manufacturers' representatives and are cornmon in food or dry goods businesses. Denver. They would be paid a commission only when a product was sold (usually 6 to 8 percent depending on the product). and Targeq to name a few. Tom First is not new to being creative.

For a starr_up venrure. problems. The .t pitch your ADVICE TO AN ENTREPRENEUR business.r lf you üould like feedback ¡n aá¿¡_ . Rather. the fitness expert. With a simple click 2. you aren't limited to providing articles 3. and computers would be a few examples. Consumer markets involve sales to households fbr personal consumption. rooms.? lt.d if írelp th:eii visitors. At trade ribute material on the venture. :. Tell web site managers.what site content' But because you're an expert'in.to educate prospects about your proiluct gr.publisher.' benefits by offer_ free pR ing relevant information to itssite visitors. run a keyword ford webmasters whose only job is to develop new qr"ry i. does support the business marketing effort since the advertising and promotions will be seen ot read by both markets. Just don't put sorneone else.PROVIDE ADVICE TO AN ENTREPRENEUR It5 eqsy.p"ny does and how your information can field' many companies will be more than thrill. Food. Try asking for a link to your site or a link more suitable for this approach? trade.dustry web sites you frequent. househord products. share some educational information An entrepreneur who has a Web site for his business to establish trust and brand awareness. Usually b nvolve because business tion the advertising be sh the ne the bu more trade magazine shows. ¡osr1¡on in search enging¡ -that rqnk sites according tor' lo: rlink popularity.s link on your home page-that encourages people to leave your site as soon as they arrive! Link from sites related ther to yours provide another benefit: They boost your site. you may be offered a link or a you give them content in exchange for a link to. Don. content may still be king.your yorr..s products and services and to keep a log of all interested visitors to the trade show booth. prospects can travel to your site and dis_ and above simply a cost saving? cover your company. do you think that this apreaders will want to know how you.. Of course. As a fitness people what preve tenily. Seems like a lot of work in writing articles and . . site. Are there particular businesses and products to Web sites. Your content can be posted on Web sites or sent valuable out in their e-mail.s however. furniture. you also create a "soft sell" marketing opportunity. Although it might if yo equipment. search.s content '| .tion to getting free . you can probe a way of getting people to my Web site with vide istics about fitness.o.r search engines.Many organizations can't af. has read the above article and comes to you for advice: Just what is "educational information. spending time in chat rooms. your only a small expense. when you can lead to immediate and long-term sales. Chat room partic¡pants may háppily share their thoughts with you online. attendance at a trade show can means to reach many potential buyers in one location. teach these visitors something new. Let people -..s line of fitness products. beverages. that For example.. Also.your addition. your What on are the other benefits of this approach over URL. proach is worth the investment of time? can help them achieve their goals. but it's án expensive Find your target audience by starting with the inkingdom to maintain.

it is impofant that the marketing strategy and action programs be specifrc and detailed enough to guide the entrepreneur through the next year. a follow-up lette¡ be sent to all visitors thanking them for thei¡ interest and explaining how they might be contacted.Any "weak" signals from the monitoring process will provide the entrepreneur with the opportunity to redirect or modify the existing marketing effort to allow the firm to achieve its initial goals and objectives. or poor implementation of the outlined plan actions. a venture-capital fum) will understand these implications. Budgeting the Marketing Strategy Effective planning decisions must also consider the costs involved in the implementation of these decisions. However. lmplementation of the Market Ptan The ma¡keting plan is meant to be a commitment by the entrepreneur to a specihc strategy. and outlet are a few ofthe specifrc results that should be monitored. lt is not a formality that serves as a superficial document to outside financial suppofers or suppliers. territor¡ sales rep.. For example. the techniques and strategies within the mix of these factors will often vary signifrcantly. What is monitored is dependent on the specific goals and objectives outlined earlier in the marketing plan. Overall. It is also important that.rc results of the marketing effort. If the entrepreneur is constantly faced with significant changes in the marketing strategy. All these marketing mix variables will be described in detail in the marketing strategy or action plan section of the marketing plan. There are also acts of God-such as weather or war-rhat can affect a marketing plan. reliance on a single supplier in a geographic area that is vulnerable to hurricanes could be disastrous if that supplier were to be shut down as a result of a hurricane. monitoring of the plan involves tracking specif. In addition to monitoring the progress of the existing plan. This budgeting of marketing action and strategy decisions will also be useful in preparing the hnancial plan. then it is likely that the plan was not prepared properly. the marketing mix for the consumer or business ma¡kets is the same. Sales data by product.246 PART 3 FROMTHEOPPORruNFYTOTHEBUSINESS PLAN Have visitors sign in or leave their business cards. Details of how to develop a financial plan are discussed in Chapter 10. If the entrepreneur has followed the procedure of detailing the strategy and action programs to meet the desired goals and objectives.g. Weaknesses in market planning are usually the result of poor analysis of the market and competitive strategy. As indicated ea¡lier. the entrepreneur should also be prepared for contingencies. If assumptions are necessary they should be clearly stated so that anyone else who reviews the written marketing plan (e. costs should be reasonably clear. Adjustments in marketing actions are usually minor if the plan has been effectively devetoped and implemented. right after the trade show. From the log or business ca¡ds. It is meant to be a formal vehicle for answering the three questions posed earlier in this chapter and a commitment to make adjustments as needed or dictated by market conditions. These are usually diffrcult to predict but may be considered in a contingency plan- . a list can then be prepared and used as a prospect list for sales reps. Monitoring the Progress of Marketing Actions Generally. Someone in the venture should be assigned the responsibility ofcoordinating and implementing the plan. unrealistic goals and objectives.

.g. Next. it is importan.poor product bul beca use the plan was not specific or had an inadequate situation analysis. Choose an industry and then use the library or the Internet to find data from secondary sources that will be highly useful in developing a marketing plan.ere have we beenr' Market segrnerits must be defined and opportunities ~dentified:. of~e busineSs pla. Find five examples of product advertising (e. 3.'factors ·or the marketing strategy to be implemented in the marketing plan. Bring them to class and be prepared to . the'marketing strategy and action programs must be defined. many plans fai!. it 15 generqlly necessary for the entrepreneur to conduct some marketing research.1d mark¡. advertisements cut out of a magazine or recorded on videotape). Goals and objectives must be establíshed. a comprehensive. The marketing strategy section or áctionplari describes how to achieve . RESEARCH TASKS 1. unrealistic goals. Then conduct research on the advantages and disadvantages of conducting a focus group online versus a "face-to-face" focus group. Ir'l addition. From this analysis thé entrepreneur can·begin to formulate 'the marketing plan sectlo.e w an"d ass~s~ment of the indllstry ~t.should be ableto assign some costs and budgets for implementing tbe marketing plan. During the year. Ágain. First.IN REVIEW SUMMARY Before beginning the marketing plan sectiorj. The marketing plan entail~ a number of ~~jor~~eps. .repreneur should provide a c0rriprehensive revi. product deficiencies. The marketing plan designates the rE)~ponse 19 t. Any "weak" signals will provide the entrepreneur with the opportunity to modify the plan and/or develop a contingency plan.levels. If the plan has been detailed. these should bé detailedso that the entrepreneur clearfy understands how 'the venture is gOlng t~ get ~here it wants to go. However. This research m.ay lnvolve'secondary sources or a primary data collection process. The action programs should also be assigned to someone to ensure their implementation. and acts of God.. the entrepreneur. the marketing plan wiIJ be monitored to discern the success of the action programs.This will help the elitrepre'neur determine a profile of the ·customer. 2. . There may be alternative marketing approaches that could be used to achieve these defined goals: The use of creative strategles such as Internet marketing may give the entrepreneur a more effective enti"y into the market. aSSE.. "Wh. not because of poor management or a. Participate in an online focus group. . do we g~~ th~rel ' To be able to respond effectively to these questions. Information from the research Will pe very important in determjning the marketi~g mix.~ tp c.d. TheSe goals and objectives must be realistic and detail~d (quantifíed if possiqle).nf " tb~. or did not anticipate competitive moves..hree questions: Where have we been? Where are we goin97 and How.onduct a situation analysis to assess the question.n of the business plan.:t trends at the national and local .the goals and objectives already defined. Careful scrutiny of the marketing plan can enhance its success. ent.ssment of competitor strategies ahd their Strengths and weaknesses should b$ docu~ehte.

(2002). 1. vol.4. and distribution strategy. Cardamone. lssue 41 19.10-11. wants. Resu/fs indicate that both. ls market segmentation just a nice way of using "steréotypes" to sell your : products? Can people really be classified so easily into groups that share cornmon needs.. 3. What are the three most effective advertisements on television? Why are they effective? What are the three least effective advertisements on television? Why are they ineffective? Are they really ineffective if you have been able to recall them? 2.23.4649. Marjorie J. BusinessWeek. and demands? SELECTED READII{GS Baker. Sally. pp. Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices. promotion. (January 26. The site attracts advertisers and with increased popularity provides a means of enhancing the reputation of firms that have satísfied customers willíng to praise their transactions. Journal of Small Business Management. Each stage of the marketing planning process is described in . The Marketing Revíew. This article illustrates how an online social Web site. ThisNexl allows entrepreneurs to build their image and enhance sales through social interaction. no. Summer 2002.2. Open a New Business Now.(February 16. The importance of customer relationship management implementation among family and nonfamily businesses is analyzed. 2. Nancy Upton. vol. no. and determine a specific demand that is unique to each group. Dibb. Customers log their satisfactions or experience with a product on this platform that is seen by other interested shoppers. The author offers tips for entrepreneurs who are trying to start a business during an economic crisis. vol. 242-56. DISCUSSION 1. Cooper. 2009). Have some fun in coming up with a particularly creative marketing mix. Marketing Planning Best Practice. Stephen. pp. Accounting To: day. pp. no. and people will have a chance to respond to your classification. label those groups. 43. Segmentthe class into groups. You may be asked to reveal your rnarket (class) segmentation to the rest of the class. Guerrilla marketing techniques are also mentioned as strategies to keep cosS at a minimum. 2009). 4. Define a customer group and then invent a product and come up with a price. and Samuef Seaman. 4. Emphasis is placed on launching businesses with products and services that are needed or a necessity during economíc decline. However. the study found that actual implementation strategies differ significantly between these two types of firms. Joseph R. 3. Find a marketing strategy that ís being used now that you believe will be ineffective.types of organizations show similar attitudes toward the implementation of customer relationship management. Will Work for Praise.248 PART 3 FROMTHEOPPORruNIWTOTHEBUSINESSPLAN expla¡n how they fit in with the rest of the marketíng mix and which group of customers is being targeted. Be prepared to justify your answer. p. Thís paper explains the role that marketing planning plays and shows how it is used by organizations. (July 2005).

Renata L. no. winer. lL: McGraw-Hill/lrwin). Donald R. no. and Fatemeh Mariam Zahedi. Reid' (November 2008).p.CHAPTER 8 THEMARKETINGPLAN 249 market¡ng plan document are explored. for di- Marketing pranning. and Russelr s. Social Networks vs. three se Lehmann. and Akin Kocak. vol. Discussion Groups. (July 2005).7. 68.. Internet Market strategies: Antecedents and fmplications. (January/February 2009). rnformation & Managemenf vol. Michael Morris. plan Schindehutte. Jaeki. appropriaie channel. vol. . Pilma[ John. 4-26. Public Relations Tactics.43. 12. Lerch. (Burr Ridge. 1. (2006).46. understanding Market-Driving Behav¡or: The Role of Entrepreneurship. The ustrated usíng a detailed case example from and guidance on óest marketing planning Goldsborough. pp. Small Business? Small Budget? How to Measure for Success. no. pp-222-3g. Song. 23. This article su small business more competi research. i. pp. Home Business Magazine. ln this paper the autho ternet and traditiona! market channels and define t They develop a concep ¡ operaung on the lnternet. Minet. Tech Directiont vol. (200g). vol. no. p. International Marketing planning for Home Business Entrepreneurs. Blogs vs. no. 4. f. 16. 14-15. (January 200g). 36_39. 2. Anatysis 7th ed. Journal of Smalt Business Management.

Lehman and R. NJ: Prentice-Hall. pp. Peters. M. and Kevin Celuch. 1. P Peters and C.. Marketing. 2009).com. Marketing Plan for a Business-to-Business Company. mar-kets.:"::. 9.i::::. Kerin. and www. pp. D. 2. 10-11. (2005). Ortinau.81-89. Marketing Plan for a Service Company. pp. Brush. pp. and W. Analysis for Marketing Planning.:h'"::{"!::'. David.:' ' ': of the marketels time and effort.i:::. lL: McGraw-Hill/lrwin. lL: McGraw-Hill/lrwin. 84- . al. : END NOTES. Marketing. Gwen Moran. p. This article looks at the process of construding a basic marketing rePott an area Y:i".I:::. Rudelius.experti..3. r. Journal of Business-to-Business Marketing.:. 37-70.9th ed." ' : ' lt. (Burr Ridge. Exhibit 3.:#f:f:.. D. 6. 236-65. Hair. Kerín et al. Tth ed. vol' 12. no.::..?. Jr.. W¡lli"¡¡r. 1-16. R. 1991).363-72. (2001). Hartley. "Try 5ampling. 5. 5-50.23042. pp. 42-51Activities and Growth . (2005). (8urr Ridge. '!. Wendy Beech.2nd ed. pp." Entrepreneur (October 2008).2. P.. APPENDIX lt Black Eniterpnse (November 1998).. Stephen Goodwin.:.#:#:"i'::::.98-104: Agency Profile. 7.' Black Enterprise (July 1975).Garrison Jackson. The research provides managerial and research implications regarding the use of the lnternet ín industrial Taylor. 63-78. lL: McGraw-Hill/lrwin. "Making 'Family. Joseph F. 8. Ltd. Steven A. Hair et 5. piésident and CEO. 2008). "Keeping in the tion Expertí. 2009). Hisrich and M. pp. 5. (Upper Saddle River. Marketing Research.250 PA RT 3 FROM IH€ OPPORruNTY TO THE BUSINESS PLAN An Exploratory Inveligation into the Question of Direct Selling via the lnternet in Industrial Equipment Mar' kets. also contributed 4. This study seeks to provide exploratory insight into considerations of tnternet-based direct marketing strategíes aimed at industrial consumers. pp. Marketing Decisions for New and Mature Products. Robert P." Journal of Business Research (May 1996). R. "Market Information Scanning in New Ventures: A Comparison of Service and Manufacturing Businésses. Citcula' 8A: MARKETING Exhibit 'l . PLAN OUTLINES Marketing Plan for a Consumer Products Company- Exhibit 2. R. pp.5. pp. The Marketing Revievl vol. PP. Wiiting a Marketing Report. ' 4th ed. Winer. p. (Bur¡ Ridge. Discussionswith to this profile. and David J. Bush. Marketing Research.

)? Surce:DavidS. t981).Reprintedwith¡rcrmissionofTheConferen@Board .TheMarkeilzgPlan(NewYorkTheConferenceBoard. 4. 6.8.Hopkins. 5. reg¡ont etc.. I D. V. U.

de for management. lt should include a discussion of the internal and external problems we can control. lt is intended as a brief gui. VI. or are there opportunities we have not taken advantage of? This section will include a frank commentary on both inhibit¡ng problems and unrealized opportunities. dollar volume. ECONOMTC OUTLOOK What factors in the overall economy and industry and how? This section will affect the marketing of the product in the plan period. TREND ANALYSIS Eased on the history of this product. Short-range goals should be specif¡c and will apply to next year. Intermediate to long-range goals will necessar¡ly be less specific and should project for the next three to five years and beyond. and Five-Plus Years I. for example. OBJECTIVES AND GOALS Where do we want to go with this product? This section will outline the immediate short. THE MARKET---quant¡tative the potential market for this product? will apply specific quantit¿tive measures to this product. lll. along with the results €xpected from implementing theplan. and/or consumers of the product. are there problems ¡nhibiting the marketing of this product. schedules for completion. how successful they are. Here we want to include numbers of potential custdmert dollar vdlú¡ne of business. Hopkins. and profit goals. These would include the full range of factors comprising our marketing mix. PROBLEMS AND OPPORTUNITIES Internally and externally.. where do we appear to be headed? Thissection is a review of the past history of this product. COMPÉTIÍION Who are our competitors for this product. lt should be a thoughtful analysis outlining who our competitors are. and all other applicable historical data. specifiers. and how do we stand competitively? This section should define our current competition. will contain a summary of the specific ecoñomic and industry factors that will affect the marketing ofthis product during the plan period. VII. il.and long-range objectives for this product. competition. share of market. the economy. accounts opened. users. MANAGEMENT SUMMARY What is our marketing plan forthis product in brief? This is a one-page summary of the basic factors involving the marketing of the product in the plan period. we should include annual f¡gur€s forthe last five years show¡ng dollar volume. and what actions they might be expected to take regarding this product during the com¡ng year. our currentshare of the market-any ipecific measures that will outline our total target for the product and where we stand competit¡vely now. methods of evaluation.The Marketing Plan (NewYork: The Confe¡ene Board. and assignment of accountability for executing the program and measuring results- This section Source: David S. What is This section V. IX. what must we do to reach the goals we have set for this product or service? will be a description of the spec¡f¡c actions we plan to take during the coming plan period to ensure reaching the objectives we have set for the product in Vlll. l98l). lt will include definitive descriptions and profiles of major distributors. VIII. ACTION PROGRAMs Given past history.252 PART 3 FROMTHEOPPORTUNITYTOTHEBUSINESS PLAN Marketing Plan Outline For each major producVproduct categorlx Time Period-One. Three. ldeally. etc. the market. by changes in policies or operational programs. lt should also point to areas of opportunity regarding this product that we are not now exploring. Reprinted with pernission ofThe Conference Boa¡d . The discussion should cover what is to be done. accounts closed. THE MARKET--qualitative Who or what kinds of market segments const¡tute the major prospects for this product? This section will define the qualitative nature of our market segments. (l) Qualitative-reasoning behind the offering of this product and what modifications or other changes we expect to make. lV. (2) Quantitative-number of accounts. Objectives should be stated in two forms. share of market.

and how do we stand competitively? This section should define our current competition. inflationary llt. what must we do to reach the goals we have set for this service? This section will be a description of the specific actions we plan to take during the coming year to ensure reaching the objectives we have set for the service in Vlll. IX. lt should also point to areas of opportunity regarding this service that we ar€ not now exploiting. (2) Quantitative-numberof accountt dollar volume. we should include quarterly figures for the last five years showing dollar volume. accounti opened. ACTION PROGRAMS Given past history the economy. changes in policies or operational procedures. share of markei. and brochure development. and so on. business profiles. and officers in charge of executing the program and measuring results."cted ECONOMIC PROJECTTONS What factors ín the overall economy will affect the marketing'of tñis service next yeai and how? a summary of the specific economic factors that will affect the marketing of this service These might include employment. MANAGEMENT SUMMARY What . Long-range goals wiil necássaríly be less specific and shoulJprá¡ect for the next f¡ve years. business expectations.ry of this service.g". the m¿rket. The discuss¡on should coverwhat is to be done. personál i¡rcome. profit goals. COMPETITION who are our competitors for this VII. II. THE lV.r ii. Objectives should be fated in two forms: (1) Qualitative-reasoningbehindtheofferingofthisserviceandwhatmodificationsorotherchangesweexpect to make. direct mail.CHAPTER 8 THEMARKMNGPLAN 253 Marketing Plan Outline For each major bank service: t. etc.. lt is intended as a biief guide for *"nrg".lt will ¡nclude demographic information.Hopkins'theMcrketingPLan(NewYork:TheConferenceBoard. MARKET-qúantitative Who or what kÍnds of organizations could conceivably be considered prospécts for this service? fhis sectionwill define the qu¿litative nature of our market. competition. accounts closed.o on. lt should be a thouQhtful analysis outl¡ning who our competitors are. be customers for this service. THE MARKET-quantitative What is the potential markét for this service? -rla This section'wil} apply specÍfic quantitative measures V. TREND ANALYSI5 Based. or are there opportunities we have not taken advantaoe of? This section will contain a frank commentary on both inhibit¡ng problems and unrealized opportunit¡es. where do we appear to be headed? This sectl-on is a review of the past histo.'. methods of evaluation. VIII. share of market.lt should include a discussion of the internal and external problems we can control. service.. for example. PROBLEMS AND OPPORTUNITIES Internally and externally. are there problems inhibiting the maiketing of this service. to this bank service. schedules for completion. Source:DavidS. how successful they are. for atl people o. l"^t!!tt_9lp. why they have (or have not) been iulcessfuf. VI. our curent share of the market-any specific measures that will outline our total target for ihe service ánd where we stand compétitively now. and what actions they might be expected to take regarding this servicé during the coming year. These would include advertising and promotion. both bank and nonbank.and long-range objectives for this service.Here we want to include numbers of potential cüfómers. -nd .on the_:history gf this service. dollar-volume of business. is our marketing plan for this sérvice in brief? This is a one-page summary of the basic factors involving the marketing of the service next year along with the from implementing the plan. lt would also include programs to be designed and implemented by line officers.i. Short-range goals should be specific and will apply to next year.it". OBJECTIVES AND GOALS Where do we want to go with this service? This section will outline the immediate short. fdeally. and all olher applicable historicaf data."Át... e5.lg8t) ReprintedwifhpermissionofTheCon{erenceBoard . industrial profites.