MGT 368

Entrepreneurship

Lecture 6- Marketing Plan ​

MD Asif Hossain
Today’s Topic

 Marketing
 Market Plan Outline
 Steps before creating the marketing plan
 Marketing Mix 4Ps
 Task
Marketing Plan
 Marketing plan - A written statement of marketing
objectives, strategies, and activities to be followed
in the business plan.
 It is designed to provide answers to three basic
questions:
 Where have we been?
 Where do we want to go (in the short term)?
 How do we get there?
Industry Analysis

 It provides sufficient knowledge of the environment that

can affect marketing strategy decision making.
 Information can be gathered through secondary sources
and market research.
 The entrepreneur can begin to understand competitors’
strengths and weaknesses; provides insight into how to
position products or services.
 To analyze you can use: Competitors analysis,
environment analysis etc.
Marketing Research for the New Venture
 Step One: Defining the Purpose or Objectives
 Make a list of the information that will be needed to
prepare the marketing plan.
 How much would potential customers be willing to pay for the
product or service?
 Where would potential customers prefer to purchase the
product or service?
 Where would the customer expect to hear about or learn
about such a product or service?
Marketing Research for the New Venture
(Cont.)
 Step Two: Gathering Data from Secondary Sources
 Secondary sources can include trade magazines, newspaper
articles, libraries, government agencies, the Internet, and
commercial data.
 Step Three: Gathering Information from Primary
Sources
 Data collection procedures - Observation, networking,
interviewing, focus groups, and experimentation.
 Data collection instrument - Questionnaire.
Methods
of
Survey
Marketing Research for the New Venture
(Cont.)
 Step Four: Analyzing and Interpreting the Results
 Results can be tabulated by hand or on a computer.
 Evaluated and interpreted should be based on research
objectives.
 Cross-tabulated data can provide more focused results.

 If you do primary research you can use google form.

Characteristics of a Marketing Plan

 A marketing plan should:

 Provide a strategy.
 Be based on facts/assumptions.
 Describe an organization for implementation.
 Provide for short-term and long-term continuity.
 Be simple and short.
 Be flexible.
 Specify criteria for control (monitoring).
Facts Needed for Market Planning
 Who are the users, where are they located, how much do they buy, from whom do they
buy, and why?
 How have promotion and advertising been employed and which approach has been
most effective?
 What are the pricing changes in the market, who has initiated these changes, and why?
 What are the market’s attitudes concerning competitive products?
 What channels of distribution supply consumers, and how do they function?
 Who are the competitors, where are they located, and what advantages/disadvantages
do they have?
 What marketing techniques are used by the most successful competitors? By the least
successful?
 What are the overall objectives of the company for the next year and five years hence?
 What are the company’s strengths? Weaknesses?
 What are one’s production capabilities by product?
Outline for a Marketing Plan
 Situation analysis
 Background of venture
 Strengths and weaknesses of venture
 Market opportunities and threats
 Competitor analysis
 Marketing objectives and goals
 Marketing strategy and action programs
 Budgets Have a separate budget for the marketing plan

 Controls
The Marketing System
Steps in Preparing the Marketing Plan

 Defining the Business Situation

 Defining the Target Market/ Opportunities and
Threats (specific group of potential
customers/Market segmentation)
 The Process of segmenting and targeting
customers (Divide market into smaller groups
based on characteristics/buying situation/segment)
 Establishing Goals and Objectives
Marketing Goal Examples

 Build Brand Awareness

 Grow Market share
 Target new sets of customers
 Increase sales
 Increase website traffic
 Increase the rate of conversion on website/store
Steps in Preparing the Marketing Plan
(cont.)
B-B vs B-C

 Marketing Strategy: Consumer versus Business-to-Business

Markets
 Business-to-business markets involve the selling of products or
services to another business.
 Usually aims at selling a large volume in one transaction.
 Involves a more direct channel of distribution.
 Use trade magazine advertising, direct sales, and trade shows.

 Consumer markets involve sales to households for personal

consumption.
Steps in Preparing the Marketing
Plan (cont.)
 Budgeting and Implementation
 Budgeting
 Costs should be reasonably clear.
 Assumptions, if necessary, should be clearly stated.
 Useful in preparing the financial plan.
 Implementation
 Theplan is meant to be a commitment by the entrepreneur to a
specific strategy.
 Theentrepreneur(s) should ensure coordination and
implementation of the plan.
Steps in Preparing the Marketing
Plan (cont.)
 Monitoring the Progress of Marketing Actions
 Involves tracking results of the marketing effort.
 Entrepreneur should prepare for contingencies.
 Minor adjustments in the plan are normal; significant changes
indicate a poorly prepared plan.

 Weaknesses in market planning may be due to:

 Poor analysis of the market and competitive strategy.
 Unrealistic goals and objectives.
 Poor implementation of the outlined plan actions.
 Unforeseen hazards like weather or war.
The Marketing Mix

 Definition: The marketing mix refers to the set of

actions, or tactics, that a company uses to
promote its brand or product in the market.
 https://www.youtube.com/watch?v=Mco8vBAwO
mA
4Ps & 7Ps of Marketing
Marketing Mix 4 Ps- Product
 A product has a certain life cycle that includes the growth
phase, the maturity phase, and the sales decline phase. It is
important for marketers to reinvent their products to stimulate
more demand once it reaches the sales decline phase.
Marketers must also create the right product mix. It may be
wise to expand your current product mix by diversifying and
increasing the depth of your product line.
 In developing the right product, you have to answer the following questions:
 How will the customer use it?
 Where will the client use it?
 What features must the product have to meet the client’s needs?
 Are there any necessary features that you missed out?
 Are you creating features that are not needed by the client?
 What’s the name of the product? Does it have a catchy name?
TVC Example

 Educating Customer how to use their

Product/Service:
 https://www.youtube.com/watch?v=opjzDwwYftI
Marketing Mix 4 Ps- Price
 The price of the product is basically the amount that a
customer pays for to enjoy it. Price is a very important
component of the marketing mix definition.
 Determines the firm’s profit and survival.
 If a company is new to the market and has not made a name
for themselves yet, it is unlikely that your target market
will be willing to pay a high price.
 Pricing always helps shape the perception of your product in
consumers eyes.
 Low Price = Inferior Goods compared to competitors
 High Price= Cost Out weights the benefits in consumers
eyes
Example of high and low price

Evian Tk 120 Mum Tk 15

Marketing Mix 4 Ps- Price (Cont.)

 When setting the product price, marketers should

consider the perceived value that the product offers.
There are three major pricing strategies, and these are:
 Market penetration pricing (Low pricing initially; switch
to a new brand cause of low price)
 Market skimming pricing (Charge high price initially for
maximum profit; then lower price over time)
 Neutral pricing: Prices set in general with competitors in
mind.
 Other: Premium pricing
Marketing Mix 4 Ps- Place
 Placement or distribution is a very important part of the
product mix definition. You have to position and distribute
the product in a place that is accessible to potential
buyers.
 There are many distribution strategies, including:
 Intensive distribution (Distribute in as many places as possible)
 Exclusive distribution (Distribute in a single place)
 Selective distribution (Distribute in selected places)
 Franchising
Example of Product Places
A product such as blue berry Whereas a product such as
can not be expected to be rice could be found in any
found everywhere super shop/stores
Marketing Mix 4 Ps- Promotion
 Promotion is a very important component of marketing as it can boost
brand recognition and sales. Promotion is comprised of various elements
like:
 Sales Organization
 Public Relations
 Advertising
 Sales Promotion
 Public relation= Not paid for but they do cost. (Press release, exhibitions,
sponsor deals, seminars, events etc.)
 From traditional advertising, the focus has shifted to online marketing.
 There has been an increase in interest of Word of Mouth advertisement
Marketing Mix 4 Ps- Promotion (Cont.)
 In creating an effective product promotion strategy, you
can answer the following questions:
 How can you send marketing messages to your
potential buyers?
 When is the best time to promote your product?
 Willyou reach your potential audience and buyers
through television ads?
 Is it best to use social media in promoting the product?
 What is the promotion strategy of your competitors?
Marketing Mix 4 Ps- Promotion (Example)
Summary
 Marketing plan is a written statement of
marketing objectives, strategies, and activities to be
followed in the business plan. It is designed to give an
outline to short-term goal through analyzing trends.
 Market Plan Outline includes Situation
analysis, Marketing objectives and goals, Marketing strategy
and action programs, Budgets and, Controls
 Steps before creating the marketing plan are: define
the Business Situation and the Target Market/
Opportunities and Threats; the Process of segmenting and
targeting customers; and establish Goals and Objectives
 The 4Ps of marketing
Further Read
 https://economictimes.indiatimes.com/definition/marketing-
mix
 http://marketingmix.co.uk/
 Chapter 8- Entrepreneurship 10th Edition, Robert D.Hisrich