METRO BUSINESS COLLEGE

2OO Arnaiz Street, Avenue Pasay City

CHAPTER - 5

Subject: The Entrepreneurial Mind

Topic: Marketing Plan
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
• Define what a marketing plan is
• Explain the relevance of the industry analysis to the market
planning process
• Identify the steps preparing the marketing plan
• Determine the elements that must be considered in developing
strategy for each component of the marketing mix
• Prepare a marketing plan for a product idea

INTRODUCTION
In chapter 4, we discussed the major sections of the business
plan, including the information needed to write those sections. In this
chapter, we look more closely at the marketing plan and spell out the
steps that must be taken in preparing it. We also examine the
components of the marketing mix and discuss what must be considered
in developing what must be considered in developing a marketing
strategy and its accompanying action plan.
 WHAT IS MARKETING PLAN?

A marketing plan is a document containing the marketing

objectives, marketing strategies, and the activities that will be
undertaken to execute these strategies. The plan must consider the
overall goals of the enterprises, which must take precedence over the
specific marketing objectives. It must also base on valid assumptions
about the financial resources, physical resources that will be available
to the business venture.

COMPETITOR ANALYSIS
The marketing strategies that the entrepreneur will execute must
be based on an intelligent assessment of the business environment.
Pricing strategies, for example, must consider the purchasing power of
the customers as well as the price levels of similar products available in
the market. Distribution strategies, on the other hand, must consider
transportation costs or the cost of operating a retail outlet. In short, a
decision concerning the 4Ps of marketing – product, price, place,
(distribution), and promotion (also known as the marketing
mix) requires the entrepreneur to understand how these four elements
influence each other and how they can be integrated to effectively
exploit business opportunities.

WHAT ARE THE STEPS IN PREPARING THE MARKET PLAN?

Preparing the marketing plan involves the following steps:

a. Assessing goals and objectives

b. Defining the target market
c. Setting the marketing goals and objectives
 d. Developing marketing strategy and action programs
e. Preparing the budget for the action plan

WHAT MUST BE CONSIDERED IN DEVELOPING MARKETING

STRATEGY AND ACTION PLANS?
Marketing Mix Decisions
Marketing Mix Areas for Decision-Making
Product Product features, style, options, brand name, quality
of materials or components, product-bundling,
packaging, sizes, after-sales service, and warranties.
Price Quality image, list price, quantity, discounts,
allowances for quick payments, credit terms, and
payment period.
Place Setting up of own distribution outlet, use of
wholesalers, and or retailers, number of distributors,
number of channels, geographic coverage, inventory,
transportation, and uses of electronic channels.
Promotion Media alternatives, message, advertising budget,
sales promotion, use of social networking, website
design and interface, and publicity efforts.

It must be reiterated that a decision on one element of the

marketing mix must be linked to decisions on the other elements. For
example, a decision to highlight the quality and brand of the product
might be undermined by a decision to offer the product at a lower price
range. Even if the cost of producing the product might be low enough to
justify the low price, offering the product at a much higher price might
be more consistent with the image that it intends to project to its
intended target market.
 METRO BUSINESS COLLEGE
200 St. Arnaiz, Pasay City

Name of Learner: ___________________________

Grade & Section: ___________________________
Subject: The Entrepreneurial Mind

Submission of activities on ______________

QUESTION FOR DISCUSSION?

1. Why is it important to define the target market when

preparing a marketing
plan?_________________________________________
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2. What is the difference between cost-based pricing and
value-based pricing? Which pricing scheme is more
advantageous for the entrepreneur? Explain your answer.
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