Chapter 10

10.1 Devising a Marketing Plan

Objective:
 Identify the role of marketing objectives in
developing a marketing plan.
 Name the five marketing strategies that make up the
marketing mix.
 Describe the part marketing tactics play in the
marketing plan.
To succeed and grow, a business must have a
marketing plan with realistic objectives, the
proper mix of the five Ps, and an action plan for
implementation.

Marketing is the process of developing, promoting,

and distributing products to satisfy customers
and businesses.

The success of a business is determined in the

marketplace.
 The Marketing Plan

A convincing marketing plan includes a rationale

for your selection of marketing strategies and
tactics.
marketing
marketingplanplan
aaplan
planused
usedby
byaabusiness
businesstoto
guide
guide its marketing processto
its marketing process toaa
desired
desiredconclusion
conclusionbased
basedonon
information obtained through
information obtained through
market
marketresearch
researchand
andtarget
target
market decisions
market decisions
 Forming Marketing Objectives

A successful marketing plan contains specific

marketing objectives.
marketing
marketingobjectives
objectives
what
whataabusiness
businesswants
wantsto to
accomplish
accomplishthrough
throughits
its
marketing efforts
marketing efforts
 Forming Marketing Objectives

In a start up marketing plan, the objectives should

include:
1.Creating awareness of your business
2.Educating the target market about features and benefits
of your products
3.Understanding of the current and future needs of your
target market
4.Reaching specific sales projections

5.Obtaining projected market share

6.Building a repeat customer and/or referral base

 product
introduction
or innovation
team sales or
organization market share

Marketing
Objectives projected
advertising profitability

distribution pricing
Developing a marketing mix enables an
entrepreneur to map out how to accomplish
marketing initiatives.

marketing
marketingmixmix
the
thefive
fivemarketing
marketingstrategies
strategies
used to reach a market:
used to reach a market:
product,
product,place,
place,price,
price,promotion,
promotion,
and
andpeople
people
The Five Ps of Marketing

Product

Place

Price

Promotion

People
 The product strategy deals with the goods or
services your business will provide.

 Product considerations include:

 features and benefits
 branding, packaging, and labeling
 selection
 positioning
 mix
A product’s brand, package, and label
serve as strategies for maintaining
customer loyalty.
label
label
the
thepart
partof
ofthe
thepackage
packageused
usedto
to
present information about the
present information about the
product
product
Branding, packaging, and labeling can have a
bearing on product positioning.
product
productpositioning
positioning
how
howconsumers
consumerssee
seeaaproduct
productinin
comparison
comparisonto
toanother
anotherproduct
product
The final consideration in your product strategy
is determining your company’s product mix.

product
productmixmix
all
allof
ofthe
theproducts
productsaacompany
company
makes or sells
makes or sells
 What is your product mix?
 How do you position your product?
 What benefits or features do your products

offer?
 How are you building your brand?
 The place strategy deals with how you will
deliver your goods and services to customers.
 Place strategy considerations include:

• channels of distribution

• intensity of distribution
• transportation
• location, layout, and availability
To formulate a place strategy, the
entrepreneur needs to understand the
channel of distribution.
channel
channelof ofdistribution
distribution
the
thepath
pathaaproduct
producttakes
takesfrom
from
producer
produceror ormanufacturer
manufacturertoto
final user or consumer
final user or consumer
There are two basic types of channels of distribution
in the place strategy—direct and indirect.

A direct channel moves a product from producer to

customer with no other businesses involved.

An indirect channel of distribution employs

intermediaries. intermediaries
intermediaries
people
peopleor
orbusinesses
businessesthat
thatmove
move
products between producers
products between producers
and
andfinal
finalusers,
users,including
including
wholesalers,
wholesalers,retailers,
retailers,
distributors,
distributors, andagents
and agents
 Direct

Producer Consumer

Indirect

Producer Intermediary Consumer

 There are three ways to distribute a product:

• intensive distribution

• selective distribution exclusive

exclusivedistribution
distribution
placement
placementof ofaaproduct
productwhere
where
• exclusive distribution its
itsnumber
numberof ofsales
salesoutlets
outletsare
are
limited to one per area
limited to one per area
 Do you offer your products at locations other than
your store?
 The people strategy involves assembling,
preparing, and maintaining the people who will
help the business achieve success.
 What do you look for in an employee?
 What specialized skills or education to you

require?
The price strategy is a financial decision and a
marketing strategy that affects the customer’s
motivation to buy.

The promotion strategy is designed to tell

potential customers about a business’s products
and their characteristics, benefits, and
availability.
 How will you price your product in relation to similar
businesses?
 What is the message you want to share through
promotion?
 What forms of promotion will your business use?
 To apply marketing strategies, entrepreneurs
employ marketing tactics

marketing
marketingtactics
tactics
activities
activitiesthat
thatare
aretaken
takento
to
carry
carryout
outaamarketing
marketingplan
plan
10.2 Reviewing and Revising the
Marketing Plan
 The Importance of Ongoing Market Research

 In business, change is constant. In order to

stay up-to-date with changes as they occur:

• Gather primary data from customers.

• Gather secondary data from business records.
• Collect information that affects your operation.
 Reviewing Your Marketing Plan and Mix

There are many benefits to ongoing market

research.

The research provides information you need to

make adjustments to your marketing plan and
allows you to revise and rework your marketing
mix strategies to make them more effective.
 adding eliminating
products products

revising Product
guarantees changing
Strategy products
and service Changes
policies
changing brands,
identifying new
packaging,
uses for
or labels
products
You may want to consolidate products you
manufacture under different brands or under a
single brand.
You may also choose to sell your own private
brand.

private
privatebrand
brand
aabrand
brandthat
thatisisowned
ownedand
and
initiated
initiatedby
byaawholesaler
wholesaleror
or
retailer
retailer
 To build customer confidence and increase
sales, a business can offer a service policy or a
guarantee.

guarantee
guarantee
an
anassurance
assuranceof
ofthe
thequality
qualityof
ofaa
product
product
improving rearranging layout
location
Place
Strategy
Changes
changing channels
of distribution increasing
availability
 number of
people

system employee
rewards People qualifications
Strategy
Changes
human
resource team-building
responsibilities responsibilities
 pricing for profit

Price and
Promotion
revising Strategy
Changes reacting to market
terms of sale
prices
Reviewing and revising your marketing plan
and mix regularly will help you identify and
make necessary strategy changes.
Such a review sets the stage for longer-term
market planning, such as expansion, revision,
or diversification.
 diversification
diversification
 the
the process
process of
of investing
investing in
in
products
products or
or businesses
businesses with
with
which
which an
an existing
existing business
business is
is
not
not currently
currently involved
involved