C8 Marketing Plan

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
MARKETING PLAN
Chapter 8
MARKETING PLAN
Dr. Zarina Salleh

Hjh. Zanariah Zainal Abidin
MARKETING PLAN
LEARNING OUTCOME
• Understand the importance of preparing a
marketing plan
• Describe the steps in preparing a marketing plan
• Identify components of a marketing plan
• Prepare a marketing plan for a small business
MARKETING PLAN
Module Outline
• Introduction
• Steps in Preparing a Marketing Plan for Small
Businesses.
• Marketing Objectives
• Product or Service
• Target Market
• Market Trend and Market Size
• Competition
• Sales Forecast
• Marketing Strategy
• Marketing Personnel
• Marketing Budget
MARKETING PLAN
Introduction
A well prepared marketing plan helps
entrepreneurs to:
– Evaluate market acceptance
– Develop strategies to market products or
services of the business
– Identify required resources to execute the
marketing strategy
– Estimate marketing financial requirement
MARKETING PLAN
Steps in Preparing a Marketing Plan

1. Setting Marketing Objectives
2. Determining product or service
3. Identifying target market
4. Analyzing market trend and size
5. Assessing competition
6. Forecasting sales
7. Developing marketing strategy
8. Planning for marketing personnel
9. Preparing marketing budget
MARKETING PLAN
1. Setting Marketing Objectives:

New Business:
• Introduce new products/services
• Estimate market acceptance and sales
Existing Business
• Introduce new products/services
• Inform market of product improvement
• Enter new market
• Increase sales of existing products
• Increase market share
• Market penetration
• Regain market for existing product
MARKETING PLAN
2. Determining Product or Service

• Needs & Wants of Customers
• Marketability of a Product or Service
Guide in describing product or services

State clearly the value and benefits of product or service to
customers. Capitalize on the uniqueness or strengths of
the product or services such as on its formulation,
ingredients used, safety, ease of use, life span, flexibility,
assortment, location, operation hours, personalization,
extended warranty etc.
MARKETING PLAN
3. Identifying Target Market

• Who is the consumer of the product or
service?
• What is their common needs or wants that

would be satisfied by the product or
service?
• What is their common characteristics?

MARKETING PLAN
Target Market Alternatives

• Segmented Marketing
- Target several or a particular market
segments
- Design separate offers for each segment
• Niche Marketing:
- Targeting a large share of one or a few
segments or niches
• Micromarketing:
- Tailoring products to suit the tastes of
specific individuals and locations
MARKETING PLAN
Target Market Alternatives

• Mass-Marketing
- ignoring market segment differences
- go after the whole market with one offer
MARKETING PLAN
Common Bases For Segmentation

• Demographic Segmentation
• Psychographic Segmentation
• Behavioral Segmentation
• Occasions
• Benefits Sought
• User Status
• Usage Rate
• Loyalty Status
MARKETING PLAN
4. Analyzing Market Trend

and Market Size
• What is the trend in the market?
• What is market potential?
• Size of the market - what is the RM value?
• Customer profiles of relevant market
segments.
Market Size:
MARKETING PLAN
- Total potential purchase of target market
- Should be translated into monetary value
- Growing, remain the same or shrinking
Market size untuk kambing perap:
N9 800,000 x 0.03% = 24,000 ppl
KL 1,000,000 x0.03% = 30,000
Mlk 500,000 x0.03% =15,000
Total 69,000ppl x RM50
RM 3,450,000
Market Share:
- a comparative measure Beforeto assess performance against the
After
competition
Players Market size Market Share Market size Market Share
(RM) (%) RM (%)
A 1,380,000 40% 38%
B 1,035,000 30% 27%
Others 1,035,000 30% 28%
Al Kamperap - - RM241,500 7%
Total RM 3,450,000 100% RM 3,450,000 100%
MARKETING PLAN
Market Size:
- Total potential purchase of target market
(kl 1.000.000 = 0.05% 50.000ppl
MELAKA 700.000, =0.05% 35.000
N9= 900.000 =0.05% 45.000
=130.000ppl xRM40
= RM 5,200,000 total market size kambing perap
- Should be translated into monetary value
- Growing, remain the same or shrinking
Market Share:
- a comparative Before measure to assess After performance
against
Market Sizethe
RM competition
Market Share % Market Size Market Share
RM %
A} 2,080,000 40% 38%

B}1,300,000 25% 24%
Others}1,820,000 35% 30%
Als Rezqi Barakah ---- ------ 416,000 8%

-
RM 5,200,000 100% RM 5,200,000 100%
MARKETING PLAN
5. Assessing Competition
Identify Competitors
• Assess their market positions and
strategies i.e.; product quality, pricing,
distribution and promotion
• Strengths and weaknesses
• Duration in market
• Customers
MARKETING PLAN
6. Forecasting Sales
• Past performance
• Break-even – to set the minimum
• Secured projects
• On-going contracts
• Anticipated or intended growth
Month Sales Remark
MARKETING PLAN
1 20, 125
2 20, 125
3 20, 125
4 17, 000 pendamic
5 18, 125 PKP/mco
6 20, 125
7 20, 125
8 20, 125
9 20, 125
10 20, 125
11 20, 125
12 40,000 Occcasion/event/cuti sekolah
TOTAL YEAR RM 241,500
1
YEAR2 Y1+10%=265,650 Increase 10%
YEAR 3 Y2+20%=318,780 Increase 20%
MARKETING PLAN
Month Sales Remark

1 34,667
2 34,667
3 34,667
4 34,667
5 19,330 *ramdhan
6 34,667
7 34,667
8 34,667
9 34,667
10 34,667
11 34,667
12 50,000 *Occasion
Total Y1 416,000
Year 2 Y1+5% =436800 sales increase 5%
Year 3 Y2+10% =480,480 Sales increase 10%
MARKETING PLAN
7. Developing Marketing Strategy

• To enable business to plan for its limited
resources in order to achieve stated
marketing objectives
• The key idea is to deliver customer
satisfaction yet provide business with a
competitive advantage
MARKETING PLAN
Marketing Strategy
• Product Strategy
• Pricing Strategy
• Place or Distribution Strategy
• Promotion Strategy
MARKETING PLAN
Product Strategy
• Include product and service strategy
– Product is a physical item that can be seen, owned,
used or consumed
– Ideas and creations of the minds can also be

regarded as product
– Service is intangible and cannot be seen or owned,

but is useful, can be experienced and able to satisfy
customer needs and wants
– Product strategy refers to a product, service or a

combination of both
MARKETING PLAN
Product Strategy
• Product Attributes
– Quality
– Design
• Trade name
• Brand name
• Packaging
• Labeling
• Warranty
• After sales service
MARKETING PLAN
Marketing Strategies for Services

• Service quality
– consistency
• Service package
– Combination of services at competitive price
• Service differentiation
– Offering that is unique and can be
differentiated from the competitors
• After sales services
– Follow-up
MARKETING PLAN
Pricing Strategy
Price is the value exchanged between
the seller and the buyer in order for the
buyer to possess, use or experience the
product or service offered
Most often, price is in the form of
monetary value paid by the buyer to
obtain the product or service
MARKETING PLAN
Pricing Strategy
Common Pricing Methods:
• Cost Based Pricing (Based on Cost )
– Fixed Cost + Variable Cost + Desired Margin
• Value Based Pricing (Based on Perceived
Value)
• Competition Based Pricing (Based on
Competition)
MARKETING PLAN
Pricing Tactics
• Price lining
• Discounting
• Purchase with purchase
• Psychological pricing
• Captive pricing
• Product bundle pricing
• Segmentation pricing
MARKETING PLAN
Factors to Consider
When Setting Price
• Marketing objectives
• Demand and supply
• Competitor’s pricing
MARKETING PLAN
Place or Distribution Strategy
• Place strategy refers to the decision made on

the location of the business
• Choice of location is crucial for most brick and
mortar businesses
• Channel of distribution is a network developed
to ensure product or services reach target
consumers
• Distribution strategy for consumer product and
industrial product may vary
MARKETING PLAN
Distribution Strategy
Manufacturer/Producer
Wholesaler Wholesaler
E-Intermediaries
Retailer Retailer
Consumer
MARKETING PLAN
Factors to Consider When

Determining Distribution Strategy
• Type of product
• Target market
• Market coverage
• Transportation ease
• Product standardization
MARKETING PLAN
Promotion Strategy
Promotion is any coordinated effort taken

to supplement the product, price and place
strategies in order to achieve marketing
objectives.
MARKETING PLAN
Promotion Strategy
• Advertising
• Sales promotion
• Personal Selling
• Publicity
MARKETING PLAN
Promotion Strategy
Advertising
Paid, non personal sales effort through a medium to influence a large number
of consumers.
• Channel of adverting: • Outdoor

• Printed • Billboards
• Newspaper • Banners
• Magazines • Transportation
• Yellow pages
• Brochures
• Business cards
• Electronic and Digital

• Television
• Radio
• Internet
• Short messaging system
MARKETING PLAN
Promotion Strategy
Sales promotion
• Promotional activities or incentives carried out or offered within a set time
frame to influence purchase
• Common sales promotion strategies:
– Rebates
– Coupons
– Purchase-with-purchase
– Samples
– Premiums
– Contest
– Point-of-purchase promotion
– Sweepstakes
– Free delivery
– Extended warranty
MARKETING PLAN
Promotion Strategy
Personal Selling
• Personal sales presentation conducted by a trained
sales person to influence potential customers. It is most
often used for products that require demonstration or
explanation
Publicity
• Efforts taken to develop and maintain good relationship
with the public to ensure good favorable public image of
the business.
MARKETING PLAN
e-Marketing
• E-marketing is the efforts to communicate, promote and

sell products and other services using electronic
communication technology.
• E-marketing uses digital technologies to facilitate the
selling of goods and services.
• The purpose of e-marketing are :
– to complement traditional marketing method
– to keep pace with information communication technology (ICT)
business trend
MARKETING PLAN
Traditional Marketing vs e-Marketing Methods
Traditional e-Marketing
Television Website
Classified Search engine marketing (SEM)
Radio Podcast
Word of mouth Blog and social network
Letter (direct mail) Email and short messaging service
MARKETING PLAN
Benefits of e-Marketing
• Reach global market

• Lower cost
• 24 hours per day and 7 days per week marketing
• Personalization
• Interactive marketing
MARKETING PLAN
8. Planning For Marketing Personnel

• Determine number of supporting
personnel needed to undertake the
marketing tasks – in-house or outsource?
• Examples:
– Marketing manager or executives
– Sales personnel
– Promotion personnel
– Distribution personnel
MARKETING PLAN
9. Preparing Marketing Budget
Marketing budget refers to expenses incurred in

planning for the marketing aspect of the proposed
business or project. It consists of 3 components.
1. Investment on fixed assets

2. Allocation for working capital for marketing
activities
3. Other marketing expenses
MARKETING PLAN
Marketing Budget Table

Items Fixed Working Other
Asset Capital Expenses
(RM) (RM) (RM)
Fixed Asset
Signboard 4,000
Working Capital
Salary/EPF/SOCSO
- Marketing Manager 3,000
- Sales Consultant 1,500
- Promotion 500
Lain-Lain
Grand Opening 5,000
Total (RM) 4,000 5,000 5,000
MARKETING PLAN
END OF MODULE 8
MARKETING PLAN

C8 Marketing Plan

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C8 Marketing Plan

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ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP

Dr. Zarina Salleh

Steps in Preparing a Marketing Plan

1. Setting Marketing Objectives:

2. Determining Product or Service

Guide in describing product or services

3. Identifying Target Market

• What is their common needs or wants that

• What is their common characteristics?

Target Market Alternatives

Target Market Alternatives

Common Bases For Segmentation

4. Analyzing Market Trend

A} 2,080,000 40% 38%

Others}1,820,000 35% 30%

Als Rezqi Barakah ---- ------ 416,000 8%

Month Sales Remark

7. Developing Marketing Strategy

• Place or Distribution Strategy

– Ideas and creations of the minds can also be

– Service is intangible and cannot be seen or owned,

– Product strategy refers to a product, service or a

Marketing Strategies for Services

Place or Distribution Strategy

• Place strategy refers to the decision made on

Factors to Consider When

Promotion is any coordinated effort taken

• Channel of adverting: • Outdoor

• Electronic and Digital

• E-marketing is the efforts to communicate, promote and

Traditional Marketing vs e-Marketing Methods

• Reach global market

8. Planning For Marketing Personnel

9. Preparing Marketing Budget

Marketing budget refers to expenses incurred in

1. Investment on fixed assets

Marketing Budget Table

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