MARKETING PLAN

MARKETING PLANNING
• Marketing planning is the process of determining
a clear, comprehensive approach to the creation
of customers. For developing this plan, the
following elements are critical
– Marketing research
– Sales research
– Marketing information system
– Sales forecasting
– Marketing plans
– Evaluation
 Marketing Research
• The purpose of marketing research is to identify
customers – target markets – and fulfill their
desires.
• For marketing research, the following areas
warrant consideration:
– The company’s major strength and
weaknesses
• These factors offer insights into profitable
opportunities and potential problems
• They provide the basis for effective
decision making
 Marketing Research
• Market profile
– helps a company identify its current market
and services needs
• How profitable are existing company
services
• Which of these services offer the most
potential?
• Which (if any) are inappropriate?
• Which will customers cease to need in the
future?
 Marketing Research
• Current and best customers
– Identifying the company’s current clients
allows management to determine where to
allocate resources
– Enables management to more directly
segment the market niche
 Marketing Research
• Potential Customers
– Enables a company to increase their ability to
target customers
– Thus turning potential customers into current
customers
• Competition
– A company can determine which firms are
most willing to pursue the same basic market
niche.
 Marketing Research
• Outside factors
– Focuses on changing trends in demographics,
economics, technology, cultural attitudes and
governmental policy.
• Legal changes
– Helps to keep management abreast of
significant changes in governmental rates,
standards and tax laws.
 Sales Research
• The major goal of sales research is to match the
correct customer profile with sales priorities. The
following is a list of potential questions to be
answered by this research:
– Do salespeople call on their most qualified
prospects on a proper priority and time
allocation basis?
– Does the sales force contact decision
makers?
– Are territories aligned according to sales
potential and salespeople’s abilities?
 Sales Research
• Are sales calls coordinated with other selling
efforts, such as trade publication, advertising,
trade shows, and direct mail?
• Do salespeople ask the right questions on sales
calls? Do sales reports contain appropriate
information? Does the sales force understand
potential customers’ needs?
• How does the growth or decline of a customer’s
or a prospect’s business affect the company’s
own sales?
Marketing Information System
• A marketing information system compiles and
organizes data relating to cost, revenue, and
profit from customer base.
• Key factors affecting the value of information
system design are:
– data reliability
– data usefulness and understandability
– reporting system timeliness
– data relevancy
– system cost
 Sales Forecast
• Sales forecast is the process of projecting
future sales through historical sales figures
and the application of statistical
techniques.
– The process is limited in value due to its
reliance on historical data, which many times
fail to reflect current market conditions
– As a segment of the comprehensive
marketing-planning process, however, sales
forecasting can be very valuable.
 Marketing Plans
• They are part of a venture’s overall strategic
efforts.
• To be effective, these plans must be based on the
venture’s specific goals.
• A five step program in developing a market plan
– Appraise marketing strengths and weaknesses,
emphasizing factors that will contribute to the
firm’s “competitive edge”
– Develop SMART marketing objectives along
with the short- and intermediate-range sales
goals necessary to meet those objectives
 Marketing Plans
– Develop product/services strategies (identify
the end users, wholesalers, retailers and their
needs and specifications.
– Develop marketing strategies (advertising,
sales promotions, trade shows, direct mail,
telemarketing.
– Determine the pricing structure (this dictates
which customers will be attracted as well as
the type of quality of products
• Competitive pricing structure
• High price structure
 Evaluation
• Is the process of identifying and assessing
deviations from marketing plans.
• evaluate performance to ascertain the variables
that affect marketing planning
• Reports should be generated from a customer
analysis
• The analysis can be measured against
performance in sales volume, gross sales
dollars, or market share.
 TELEMARKETING
• Telemarketing is the use of telephone
communications to sell merchandise directly to
consumers.
• It is one of the fastest-growing direct market
channels available to entrepreneur
• It is estimated that the average households
receives at least 19 telemarketing calls per year
and places 16 orders for products and services
via telephone (America).
 TELEMARKETING
• Advantages
– Receptiveness
– Impressions- judgments can be based only on
the caller’s voice hence reduce biases
– More presentations..
– Unlimited geographical coverage.
– Better time management.
– Immediate feedback.
– Better control.
– Less “piracy”.
– Lower salary and commissions.
 TELEMARKETING
• Pitfalls
– Poor telephone techniques.
– Bad habits.
– Dissension between the field sales staff and
telephone sales personnel can arise.
– Ever-present problem of rapid turnover of
telephone staff.
• To overcome this, the management must make a
sincere effort to create a professional, satisfied
and well trained telemarketing. (and also consider
automation)
MARKETING ON THE INTERNET
• The internet can assist a new venture by:
– allowing the firm to increase its presence and
brand equity in the market place
• Gives an opportunity to communicate the
overall mission of the company/brand
• To provide info on the attributes and/or
ratings
• To give information on the company’s
history
• Firms can easily communicate on the
marketing mix offered.
MARKETING ON THE INTERNET
• It allows the company to cultivate new customers
• It allows website visitors to match their needs
with the offerings of the company. (it is a pull
oriented technique)
• It can improve the customer services by allowing
customers to serve themselves when and where
they choose.
• The web offers a mechanism for the company to
collect similar information at a fraction of the cost
• It allows Provision of catalogs through internet.
MARKETING ON THE INTERNET
• Major concerns over internet marketing
• The limited target audience
• Consumer resistance to change
– The firms must understand how to make
consumers feel more confident when
purchasing over the internet
– Warranties, security measures and other
methods should be introduced to reduce the
perceived risk.
 PRICING STRATEGIES
• There are a number of factors that affect pricing
decisions:
• The degree of competitive pressure
• The availability of sufficient supply
• Seasonal or cyclical changes in demand
• Distribution costs
• The product life cycle stage
• Changes in production costs
 PRICING STRATEGIES
– Prevailing economic conditions
– Customer services provided by the seller
– The amount of promotions done
– The market’s buying power
• The ultimate price decision will balance many of
these factors and, usually, will not satisfy all
conditions.
 PRICING STRATEGIES
• Other psychological considerations):
– The quality of product can be interpreted by
customers according to the level of the item
price
– Printed price schedule is important
– Most buyers expect to pay even-numbered
prices for prestigious items and odd numbered
prices for commonly available goods.
– The greater the number of meaningful customer
benefits the seller can convey about a given
product, generally the less will be price
resistance.
 PRICING STRATEGIES
• Pricing procedures differ depending on the
nature of the venture
– retail
– manufacturing
– service
• Pricing for the product life cycle is presented in
the table and may be applied to any type of
business. The table demonstrates the basic
steps of developing a pricing system and
indicates how that system should relate to the
desired pricing goals.
 OUTPUTS OF MARKET
ASSESSMENT
• Marketing objective (SMART)
• Demand estimates and projections for 3 or 5
years
• A profile (key characteristics) of the targeted
customers and market segments (if applicable)
• A profile of competitors
• A summary of trends in the industry (number and
behaviours of customers and suppliers) and their
implications for the promoter’s business
• List of KSFs in the industry
 ASSIGNMENT
• Prepare a plan for carrying out a market assessment
for your business idea, specifying:
– The business idea
– Objectives of the market assessment
– Methodology for the market assessment
– Expected outputs of the market assessment
• Research and analysis (Target market, market
size and trends, competition and estimated
market share)
– Marketing plan (market strategy – sales and
distribution, pricing, advertising and promotions)
– Present to seminar