Fs Lesson 6: How To Write CHAPTER 4 The Marketing Plan

FS LESSON 6
How to Write CHAPTER 4

The Marketing Plan
Powerpoint Templates
Page 1
• The Marketing Plan is considered as the
lifeblood of all feasibility studies. The most
basic question in the conceptualization of
any business endeavor is whether or not
people will patronize the product.
Page 2
• MEASUREMENT OF DEMAND AND
SUPPLY QUANTUM - This is the first
sidehead of the Marketing Plan. It
measures the gap between demand and
supply and identifies whether there exists a
net potential market for the proposed
business.
Page 3
HOW TO COMPUTE FOR ANNUAL
DEMAND
1. Take the population (individual or
household) of the target area where the
proponents plan to sell the proposed
product. The proponents must be ready
to present evidence of population.
Page 4
2. Deduct from the population a portion that is
not qualified as potential market due to age, sex,
income or other exclusion factors. The
proponents must be ready with documents
proving that said number or percentage is really
disqualified. It must never be assumed.
Page 5
Computation of the disqualified portion
must be appended. The difference between
(1) and (2) is called the Net Potential
Market .
Page 6
3. Identify the amount spent per unit of the
product. The data to be used shall come
from the survey. If the proposed product
does not exist in the market, the
proponents may choose a similar product
line or category.
Page 7
4. Multiply the result of (3) with the Net
Potential Market computed in (2). The
result is called Unit Spending.
Page 8
5. Multiply the result in (4) with the annual
buying frequency (which refers to the
number of times or the quantity of products
bought in a year). The result is called
Annual Spending.
Page 9
6. Divide the result in (5) by the proposed
selling price of the product. The proposed
selling price is determined by the
proponents based on the survey. The result
is called the Annual Demand (in units).
Page 10
EXAMPLE OF THE ANNUAL DEMAND COMPUTATION FOR A
PROPOSED BUSINESS OF SELLING MOBILE PHONE HOLDERS
a. Quezon City Population (Based on NSO 2017 data) 2,000,000
b. Population 2,000,000
- 20% thereof 400,000 (portion of population who, because of
age cannot qualify as consumers)
Net Potential Market 1,600,000
c. Multiply: Amount spent for mobile phone holder P100
d. Unit spending on mobile phone holders
(1,600,000 x P100) P160,000,000
e. Multiply: Annual buying frequency 2
f. Annual spending for mobile phone holders P320,000,000
g. Divide: Proposed selling price of mobile phone holders to be sold P100
h. ANNUAL DEMAND FOR MOBILE PHONE HOLDERS 3,200,000

units
Page 11
HOW TO COMPUTE FOR ANNUAL
SUPPLY
1. Take the annual sales of a direct business
competitor. If the proposed business is
the first of its kind, take the sales of a
similar and comparable business.
Page 12
2. Multiply the annual sales in (1) by the
number of competitors or suppliers in the
area and vicinity of the proposed sales
location. The result is called Annual
Supply in Pesos.
.
Page 13
3. Divide the Annual Supply in Pesos (2)
by the average price of the product based on
the survey or interview with current
suppliers or businesses. The quotient is
called Annual Supply in Units.
.
Page 14
EXAMPLE OF THE ANNUAL SUPPLY COMPUTATION FOR A
PROPOSED BUSINESS TO SELL MOBILE PHONE HOLDERS
a. Monthly sales of mobile phone holders P300,000
Multiply: Months in one year 12
Annual sales of mobile phone holders P3,600,000
b. Multiply: Number of sellers of mobile phone
holders within the proposed location 75
c. Annual earning P270,000,000
d. Divide: Average price of mobile phone holders
based on survey of suppliers’ opinion P120
e. ANNUAL SUPPLY OF MOBILE PHONE HOLDERS 2,250,000 units
Page 15
C. THE DEMAND AND SUPPLY GAP
Annual Demand - Annual Supply = Demand-Supply Gap
3,200,000 - 2,250,000 = 950,000
INTERPRETATION:
Based on the Demand and Supply Quantum, it is very clear
that the market for mobile phone holders is not yet fully
penetrated. There is still demand for 950,000 mobile phone
holders that is still unsatisfied. Therefore, the proposed
business has marketing feasibility since there is still a lot of
unsatisfied demand for the product.
Page 16
THE MARKETING PROGRAM - This
is the second sidehead of the Chapter.
This contains all the marketing plans
based highly on the results of the
marketing survey conducted. The 4P’s
are also discussed in this part.
Page 17
• THE PROPOSED TARGET MARKET
- This is the first sub-head under The
Marketing Program. It identifies (in
statement form) the proposed target
market for the product.
Page 18
• The target market statement must
make use of the three types of
segmentation variables: demographic,
psychographic, and benefit.
Page 19
AN EXAMPLE OF A TARGET MARKET
STATEMENT FOR A PROPOSED BRAND
OF MOBILE PHONE HOLDER:
The target market for the product are men
and women who are 25 to 40 years old,
active and highly-spirited professionals
belonging to middle –to upper – income
families, and who seek for sleek design and
affordability when buying phone holders.
Page 20
• PRODUCT STRATEGY – This is the
second sub-head. It discusses the
product strategies, including but not
limited to: appearance, design, colors,
shapes, sizes, unique characteristics,
benefits, etc. You must include here
pictures of the proposed product.
Page 21
• PRICE STRATEGY - This is the third sub-
head. It identifies the selling price of the
proposed product and explains the pricing
strategy and the process used in arriving at
the proposed selling price. A detailed
computation of the price must be included
here. It is important that before setting price,
the proponents must know exactly the
manufacturing cost.
Page 22
• PLACE STRATEGY - This is the fourth
sub-head. It discusses the place strategy,
including but not limited to: sales location,
mode of distribution, distribution channels,
delivery, warehousing, transportation, etc. A
diagram showing the distribution channel
must be provided in this section.
Page 23
• PROMOTION STRATEGY - This is the
fifth sub-head. It explains in detail the plans
of the proponents on how to market and
promote the product. It includes plans about
advertising, sales promotion, publicity, and
public relations and includes sample
brochures, storyboard, leaflets, etc. Actual
designs must be included here.
Page 24
PRESENTATION, ANALYSIS AND
INTERPRETATION OF DATA - This is the
last sidehead. This part presents, analyzes
and interprets the data gathered from the
marketing survey conducted.
Page 25
TABLES - A table is prepared for every
item contained in the questionnaire, starting
with personal information up to the last
question.
The tables are frequency distribution tables
having 3 columns, namely: Choices,
Frequency (f) and Percentage (%).
Page 26
 For questions where respondents are
required to choose only one answer, the total
of the frequency must be equal to the sample
size. The percentage distribution is
computed by dividing each frequency by the
total frequency x 100%. Percentages must
be written as whole numbers (no decimals).
Page 27
 When writing the individual percentage
values, please do not write % anymore. It is
understood to be in % already.
For multiple response items (where the
respondents are allowed to check more than
one answer), the frequencies are divided by
the total number of respondents. Total
frequency and percentage are NOT shown.
Page 28
TABLE 1
Color Preference
CHOICES f %
Black 42 10
Blue 125 30
Red 47 11
White 63 15
Yellow 143 34
TOTAL 420 100
Page 29
 ANALYSIS merely restates the table in
words or textual form.
 Table 1 shows that 42 or 10% of the
respondents prefer black as the product’s
color, 125 or 30% prefer blue, only 47 or
11% prefer red, 63 or 15% prefer white, and
143 or 34% prefer yellow.
Page 30
 INTERPRETATION: Discusses what the
numbers mean and how the result will be
used in your proposed business.
 Based on Table 1, it is very clear that the
most preferred color for the proposed
product is yellow, comprising 34% of total
responses, followed closely by blue, which is
equal to 30%. Initially, the proposed product
will be sold in yellow and blue colors.
Page 31
TABLE 2
Amount Spent per Unit
CHOICES f %
Below P50.00 124 30
P50.00-P100.00 279 66
Above P100.00 17 4
TOTAL 420 100
Page 32
• Measurement of Demand and Supply Quantum
• Annual Demand
• Annual Supply
• The Demand and Supply Gap
• The Marketing Program
• The Proposed Target Market
• Product Strategy
• Price Strategy
• Place Strategy
• Promotion Strategy
• Presentation, Analysis and Interpretation of Data
Page 33
END OF LESSON 6
Page 34

Fs Lesson 6: How To Write CHAPTER 4 The Marketing Plan

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Fs Lesson 6: How To Write CHAPTER 4 The Marketing Plan

Uploaded by

Copyright:

Available Formats

FS LESSON 6

How to Write CHAPTER 4

h. ANNUAL DEMAND FOR MOBILE PHONE HOLDERS 3,200,000

You might also like