Professional Documents
Culture Documents
The Marketing Plan
The Marketing Plan
8 Plan
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Explain the marketing planning process;
2. Write a detailed description of a companyÊs marketing plan and
strategies; and
3. Explain what are included in a marketing plan.
X INTRODUCTION
Marketing has always been misinterpreted as merely advertising a product or
service to potential consumers. There is actually more to marketing than just that.
This topic intends to highlight the marketing plan and execution process briefly.
Readers will then be exposed to how to present their strategy to both internal and
external stakeholders.
118 X TOPIC 8 THE MARKETING PLAN
(a) Identifying segments that are clearly distinct from each other so that its
members can be easily identified. Markets can be segmented based on
several factors as described by Table 8.1.
Factors Description
(b) Determining the sizes of these segments and estimate the earning potential
of these segments. In order to earn profit and experience substantial
growth, it is advisable to explore segments with greater earning potential.
ACTIVITY 8.1
1. Why do you think it is important for a firm to segment the
market and select a target market carefully?
2. Using Air Asia as an example, how do you think it has
positioned itself in the airlines industry? Contrast its positioning
strategy with those of other players in the airlines industry.
(a) Product
In the earlier section about product or service description, the features of
the product or service are discussed. In this section, entrepreneurs should
highlight what they intend to sell with their product or service. In other
words, what benefits can customers expect from their offering. Besides, the
product identities such as branding, packaging and labelling practices also
need to be included.
(b) Price
The pricing section should cover essential information related to the
ventureÊs pricing objective, pricing method, and pricing strategy:
(c) Promotion
This section should draw out the communication plan to promote the
product or service in hand. Areas of concern that must be addressed are:
(i) The promotional goals
The promotional goals have a certain influence on the type of
promotion that needs to be used. The goals include achieving a certain
sales target, increase sales, to create awareness about the product
among consumers, or even to differentiate the product from the
competitors. Clear and measurable goals are needed to ensure
effective achievement of the goals.
(ii) The promotional budget
Preparing a budget based on the goals set is a better approach to
achieve the goals. Failure to do so may cause the ventures to resort to
irregular promotional activities that may not be effective.
(iii) The type of promotion that will be used
There is a vast choice of methods available such as advertising, sales
promotion, print media, broadcast media, outdoor advertising, trade
126 X TOPIC 8 THE MARKETING PLAN
shows, direct mails and flyers, and the list goes on. Factors that need
to be considered when deciding on an appropriate method include:
9 Cost of advertising?
9 Will potential customers have
access to the media?
9 How many times will they be
exposed to the promotion?
9 Will customers notice the
promotion?
SELF-CHECK 8.1
1. State five factors that should be included inside marketing
pelan.
2. Explain the four major aspects with reference to direct
measures for marketing performance evaluation.
TOPIC 8 THE MARKETING PLAN W 129
ACTIVITY 8.2
Writing a marketing plan helps one organise the ideas and analyse the strength
and pitfalls of those ideas.
A marketing plan spans over a time period of one to two years. A well-written
marketing plan will capture and store the idea and action plan. This prevents the
loss of essential information over time or when a member of the marketing team
leaves. It also helps one remember their priorities and not change the plan on
impulse whenever there is a change in the business environment.
130 X TOPIC 8 THE MARKETING PLAN
SELF-CHECK 8.2
1. What other potential benefits of a marketing plan can you think of?
2. „Preparing a marketing plan prevents flexibity in modifying the
strategy to suit changes in the business environment.‰ Do you
agree? Why or why not?
ACTIVITY 8.3