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Marketing Planning for
Synopsis
This chapter covers basic principles of marketing
considered necessary for business start-ups.
Marketing planning will be explained as a process
with serial steps to completion.
Business Start-ups 5
Objectives
The objectives of this chapter are:
 To introduce the basic concepts in marketing.
 To demonstrate the elements of marketing mix.
 To discuss the relevance of marketing in
entrepreneurship.

Learning Outcomes
At the end of this chapter, students should be able
to:
 Describe the basic concepts in marketing.
 Explain marketing mix.
 Explain the importance of marketing for
entrepreneurs.
Introduction
 Kotler (2014) defines marketing as “the science
and art of exploring, creating, and delivering
value to satisfy the needs of a target market at
a profit. Marketing identifies unfulfilled needs
and desires”. This chapter focuses on the basic
knowledge about principles of marketing and
some of the approaches applicable for start-ups
and small business companies.
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List of Topics
 Important Concepts in Marketing—Needs,
Wants, Demand, Values and Satisfaction
 Market Segment, Target Customers and
Positioning
 Marketing Plan
 Marketing Mix
 Marketing and Entrepreneurship
 Customer Relationship Management
Important Concepts in
Marketing—Needs, Wants,
Demand, Values and SatisfactIon
 An entrepreneur must understand the target
customers in terms of needs, wants and demands, so
he can develop products or services that are of value
to the customers.
 He may have to invest in information gathering and
analysis which will enable him to understand his
customer’s motivation and behaviour. This will help
develop marketing strategies and tactics that are
suitable and fit the customers’ characteristics.

Important Concepts in Marketing—
Needs, Wants, Demand, Values and
Satisfaction (cont.)
 “Needs” refer to a person’s feelings of a state of
inadequacy.
 “Wants” refer to what a customer desires beyond
basic needs. “Wants” are often influenced by many
factors, i.e. psychographics, demographics,
economics and cultural factors.
 “Demands” refer to the needs and wants that can be
translated into real purchases by customers because
they can afford it and are willing to pay for it.
Important Concepts in Marketing—
Needs, Wants, Demand, Values and
Satisfaction (cont.)
 Customer satisfaction is very important as it
will translate into repeated sales.
 Satisfied customers contribute to sales growth
because they will promote the products (word-
of-mouth) to friends and family.
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Important Concepts in Marketing—
Needs, Wants, Demand, Values and
Satisfaction (cont.)
 “Value” is the benefit received when buying a product
or service. “Price” is what is paid for a product or
service. Customers will be easily persuaded to part
with their money to buy something if they perceive it
to have greater value than what it cost them to buy.
 Therefore, a marketer will try to package his products,
price, promotion, distribution channels and selling
outlets to suit and fit the target market customers and
to make them consider it to be of higher value than its
price.
Neuromarketing: You're Being Manipulated
https://www.youtube.com/watch?v=LxmlgUjtKY8
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Market Segment, Target

Market Segment, Target
Customers and Positioning
Customers and Positioning
(cont.)
 In the marketplace, sellers compete with each other  “Positioning” refers to how customers perceive a
to sell to customers. A marketer needs to identify the brand or a company and its offerings as compared to
target customers. One may divide potential other company’s offerings.
customers into segments of customers that share  Customers’ perceptions can also be influenced by
common characteristics. how a company communicates and projects its image
 This practice may facilitate the entrepreneur to to the customers. Some companies use taglines to
package suitable marketing strategies that suit position, reflect and differentiate their products from
customers’ characteristics. competitors’ product. For example, Subway
restaurants use “Eat Fresh” as their tagline to show
them as a restaurant selling fresh products.

Target Marketing Strategy Market segmentation

Evaluation and selection of
appropriate segments and
the development of
appropriate offers.
Segmentation
Identification of different groups
within a target market in order
to develop different product
offerings and communications
for those groups.
Source: Dave Chaffey (2015), Digital Marketing: Strategy.
Implementation and practice
In a marketing planning,
market segments will be
analysed to assess:
1. their current market size or
value, future projections of
size and the organisation’s
current and future market
share within the segment;
2. competitor market shares
within the segment;
3. needs of each segment, in
particular unmet needs;
4. organisation and competitor
offers and proposition for
each segment across all
aspects of the buying
process.
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Market segmentation Value Proposition

 A clear differentiation of the proposition from

competitors based on product features or service
quality.
 Target market segment(s) that the proposition will
appeal to.
 How the proposition will be communicated to
customer and in all marketing communications.
 Developing a tag line can help this.

4 Main Types of Market Segmentation & Their Benefits

https://www.youtube.com/watch?v=EQ2pgHbvK0A

Can you guess the brand of Can you guess the brand of
these taglines? these taglines?
1. Just do it. 1. Just do it- Nike
2. Finger Lickin' Good. 2. Finger Lickin' Good – KFC
3. Have a break, have a… 3. Have a break, have a Kit Kat
4. Think Different 4. Think Different - Apple
5. Open Happiness/ Taste the feeling 5. Open Happiness/ Taste the feeling – Coca Cola
6. I'm Lovin' It 6. I'm Lovin' It – McDonald’s
7. So Good You Can Even Eat It On Its Own 7. So Good You Can Even Eat It On Its Own- Gardenia
8. Fuel for Champion 8. Fuel for Champion - Milo
9. There are some things money can't buy. For everything else, there's ….. 9. There are some things money can't buy. For everything else, there's
10. Melts in Your Mouth, Not in Your Hands MasterCard
11. Because You're Worth It 10. Melts in Your Mouth, Not in Your Hands -M&M
12. Maybe she's born with it. Maybe it's … 11. Because You're Worth It - L'Oreal
13. Power of Dream 12. Maybe she's born with it. Maybe it's Maybelline
14. Connecting people 13. Power of Dream – Honda
14. Connecting people - Nokia
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Marketing Plan The 7P’s of Marketing Mix

 Successful marketers usually develop a marketing

plan as their road map. The plan serves as a
guideline to specific analysis, marketing strategies,
tactics and programmes.
 A marketing plan requires data collection and
analysis of customers, competitors and marketing
environment. Based on this, realistic and suitable
marketing objectives, strategies and marketing
budget are outlined for implementation.

The 7 P’s of Marketing Mix Product

https://www.youtube.com/watch?v=Mco8vBAwOmA

 In simple terms, what is being sold to the customer is the product. It is the
‘Core’ which is offered to the customer.
 Marketers develop product strategies that can create and provide values to
target customers. Among product strategies that need to be developed
include components of a product, branding, packaging, and other elements
that add value to the core product.
 Components of a product include the core function of a product, plus other
elements that can add value to the product, such as innovative design,
extended warranty, after sales service, etc.
 It is often better to do market research before developing a product to save
on unnecessary development cost and time on product that’s nobody need
to buy.
 It is true that customers do not always know what they want. They do,
however, often have an idea of what they lack, or the problem they are
trying to solve.
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YED 2018 YED 2018

Friendzone drink

YED 2018 Product (cont.)

Presentation & clear display

Buy Sangkaya get free sweets of menu & price
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Price Place

 The marketer needs to plan prices in such a way that customers can afford
to pay, are willing to pay, and the price can provide a profit margin.
 Price can be fixed based on a number of strategies:
– Cost-based pricing, i.e. cost plus targeted profit margin.
– Value-based pricing, i.e. based on customers value evaluation and
perception.
– Competitor-based pricing, i.e. price is fixed relative to competitor’s price.
– All of the above.
 Pricing also sends a signal to your customers:
– Cheap often indicates a ‘no-frills’ product, without any added extras.
– Expensive may indicate a ‘luxury’ product, or one that has some added
value such as improved customer service.
 ‘Place’ describes where and how your customers will buy your product or
service, and how it will reach them.
 Place is the strategy to make products available and accessible to target
customers.
 In considering ‘place’, a business owner need to decide two things:
– How to get the goods to that place?
– How to get the goods to the customer?
 Important functions that need to be performed in any type of channel of
distribution includes selling, providing information, logistics, research,
financing, etc.
 Direct channel is where producers deliver products to customers directly
without a middleman. One of the fastest-growing direct sales distribution
method is online sales (through Internet).

Promotion Posters YED

 Promotion is how marketers communicate what they do and/or sell to their

customers.
 'Promotion' includes a whole range of activities, from branding through
social media activity and advertising to sales management and special
offers. It is designed to show customers why they should buy your product
or service, and should therefore focus on benefits, and not just features.
 Promotion is NOT one-way.
 In today’s business environment, it is not only important for marketers to
communicate with customers and potential customers (start a conversation
about the product), but it is also crucial that marketers communicate with
suppliers, distributors, competitors and at the same time, provide avenues
for customers to communicate with each other.
 Market segmentation helps a great deal in knowing who your customer is
and then you can effectively promote to them.
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Promotion (cont.) The main elements of the

promotional mix

 Promotional strategies involve the use of sales

promotion, advertising, public relations, publicity,
direct marketing, personal selling and social media
marketing.
 Sales promotion is commonly used to entice or
persuade customers to buy within a short period of
time. Examples of sales promotion include contests,
price reductions, rebates, and coupons.

Promotions YED YED

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Promotion (cont.) Promotion (cont.)

 Advertising is communication from the marketer to the
target audience through medium such as printed,
electronic, outdoor and online advertising. The
objectives of advertising can be to persuade, to
remind or to inform the target audience about
products and/or about the firm.
 However, a marketer’s challenge is always to identify
a promotional method that is cost effective, i.e. to
achieve maximum impact at the lowest possible price.
 With the advancement of telecommunication
technologies, promotional strategies today are more
innovative and can reach audiences 24/7 all over the
world.
 Social marketing use the Internet as a platform to
communicate with stakeholders and customers.
 Popular social media instruments include Instagram,
Twitter, Facebook , TikTok and interactive websites
and are most commonly used today.

Promotion – Video Marketing Promotion – Video Marketing

Statistic 2021
 Video had become the major element in marketing
and communications plans.
 Businesses more and more utilize video marketing to
boost their sales, create brand awareness and trust,
reach out to prospects, and better sustain their
existing clientele.
 Why video marketing is the preferred tool used by
marketers nowadays—it can communicate so much
about a product or service in a very short period, in a
visually engaging format that is enjoyable to watch
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Promotion –Video Marketing Promotion –Video Marketing

Strategy Strategy (cont’)
2. Choose the content format.
1. Set goals for your – Marketer need to pick the right content format. It’s necessary to be
content. able to communicate even a commercial message in an engaging,
– Buyer journey stages relevant form.
• Product demonstrations • Q&A videos
characterized by • Webinars
• How-to guides
specific behavior • Presentations • Funny commercials
patterns and the • Video blogs (vlogs) • Customer testimonials
audience’s needs. By • Tutorials • Interviews
considering those • White board animations • Live streams
need, marketer able – Make sure your videos are not too long because viewers will lose
to create engaging interest. Videos under 2 minutes have the highest engagement
video content. level.

Promotion –Video Marketing Promotion –Video Marketing

Strategy (cont’) Strategy (cont’)
3. Select the right platform. 4. Decide who’ll create video content.
– Marketer should post videos on several different I. Craft video content with internal team - This approach has its
benefits. You can develop and keep the expertise inside the team,
platforms to expand their reach. This ensures maximum communicate frequently, and quickly change the marketing strategy
exposure for business product or service. if necessary.
• YouTube II. Hire an external professional or team – it will take business video
• Facebook Watch content to another level with high-quality production, animations,
• IGTV by instagram effects, and so on.
• TikTok III. Team up with bloggers or influencers that’ll create content for the
business. Such collaboration can be fruitful since the business can
• Vimeo
attract the blogger’s audience and expand reach.
• Wistia
• SproutVideo
• VEED
• Etc..
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Promotion –Video Marketing Promotion –Video Marketing

Strategy (cont’)
5. Optimize your videos for search engines.
I. Look for relevant keywords - keywords help users find video marketing
content and rank at the top. Use tools like Ahrefs to find out the best
keywords.
II. Optimize video title - Placing a keyword closer to the beginning of the video
title gives the video a slight boost. At least 5 words in the title will help in
creating an organically SEO-optimized text.
III. Optimize video description - YouTube marketers recommend keeping it
concise and short (up to 250 words). Again, place the keywords in the first
25 words and include them several times for better rankings.
IV. Work on Audience Retention - Audience Retention is the number of video
people is watching. According to YouTube, the Audience Retention rate
must be as close to 100% as possible. Besides, the audience’s activity also
counts. Comments, likes, subscriptions, and transitions to another video
help business YouTube video rank higher.
Strategy (cont’)
6. Distribute the video content.
 The strategies for content distribution can be divided into three groups.
1. Owned Media like business website, blog, social media accounts, and emails.
This way of promotion has its pros: it’s basically free and the business fully in
control. But as a rule, the company’s communication isn’t as trusted as
communication via earned media.
2. Earned Media is when customers become the business distribution channel
which includes social shares, mentions, reposts, and reviews. While earned
media is credible and plays a significant role in sales, the results are hard to
measure and scale. However, this process can be simplified and automated by
using some social media suites which will help business manage, track and
analyze their earned media metrics.
3. Paid Media such as paid advertisement, sponsorships, PPC, paid influencers
and affiliates, etc. The benefit of paid media is being in control (business can
moderate the audience’s activity), ability to scale, and creating the demand.
However, paid media is characterized by poor credibility and might be pricey.

Promotion –Video Marketing

People
Strategy (cont’)
7. Measure the success of video marketing strategy.
• Anyone who comes into contact with the customers will make an
 It is important to distinguish vanity and actionable metrics. impression, and that can have a profound effect — positive or negative
— on customer satisfaction. They must, therefore, be appropriately
• Vanity metrics are tricky. For trained, well motivated and have the right attitude.
example, vanity metrics
• It is essential to ensure that all employees who have contact with
include likes, followers,
branded search lift, etc. Such
customers are not only properly trained, but also the right kind of people
metrics usually don’t for the job
represent a direct impact on • The level of after sales support and advice provided by a business is one
the business. way of adding value to what company offer and can give company an
• The actionable metrics important edge over their competitors. This will probably become more
provide business with useful important than price for many customers once they start to use company
insights and allow business product or service.
to make impactful • Look regularly at the products that account for the highest percentage of
conclusions. They include
sales. Do these products have adequate after sales support? Could
video clicks, view-through
company enhance the support without too much additional cost?
rate, watch time, etc.

Process
• The process of giving a service, and the behavior of those who deliver are crucial
to customer satisfaction. Issues such as waiting times, the information given to
customers and the helpfulness of staff are all vital to keep customers happy.
• Process is one of the 'P's that is frequently overlooked. The reason for this is that
the systems are not usually designed by marketers - they are designed for the
company's benefit, not the customer's.
• This part of the process is the first experience of a company that many
customers have. There's no value in making the rest of the company run
perfectly if this part is faulty. As a consequence, this 'P' could be a great source
of competitive advantage if used wisely.
• Customers are not interested in the detail of how your business runs. What
matters to them is that the system works.
• Customer concerned about
• Do customers have to wait?
• Are they kept informed?
• Are the employees helpful?
• Is the service efficiently carried out?
• Does employees interact in a manner appropriate to the service?
Marketing and Entrepreneurship
 In general, marketing is a business approach that is
based on principles of understanding customers,
delivering values to satisfy customers, and doing it at
a profit.
 The implementation of effective marketing strategies
(7Ps) reflects a firm’s understanding of its target
customers’ needs and wants. However, marketing
today is becoming more interesting and challenging.
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Physical
• Physical evidence provides tangible cues of the quality of experience that a
company is offering. It can be particularly useful when a customer has not bought
from the organization before and needs some reassurance or is expected to pay
for a service before it is delivered.
• For a restaurant, physical evidence could be in the form of the surroundings, staff
uniform, menus and online reviews to indicate the experience that could be
expected.
• For an agency, the website itself holds valuable physical evidence – from
testimonials to case studies, as well as the contracts that companies are given to
represent the services they can expect to be delivered.
Marketing and Entrepreneurship
(cont.)
 For example, many young entrepreneurs are involved
in online businesses, services and mobile
applications. Thus, entrepreneurs need to be creative
and willing to take risks in developing new ways of
marketing new products/services to target customers.
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Customer Relationship
Summary
Management (CRM)

 Customer relationship management or customer  A marketer’s role is to find an opportunity to sell

relationship marketing is focused on building products and/or services to his target customers
relationships with existing customers to turn them into using the most suitable, cost-effective marketing
loyal customers. strategies, in order to create profit to the marketer and
to benefit the customers.
 The objective of relationship marketing is to build a
win-win and satisfying relationship with the
customers.
 Researches have shown that it is less expensive to
maintain current customers and develop good
relationships with them.