The Marketing Plan

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The Marketing

Plan
What is a Marketing Plan?
● Document containing the market objectives, marketing strategies and
activities that will be undertaken to execute theses strategies.

● It must be based on valid assumptions about the financial resources,


physical resources and human resources that will be available to the
venture.
Competitor Analysis
● The marketing strategies that the entrepreneur will execute must be
based on an intelligent assessment of the business environment.

● Pricing strategies- must consider the purchasing power of customers as


well as the price level of similar products available in the market.

● Distribution strategies - must consider the transportation costs or the


costs of operating retail outlet.
Comparison of Marketing Strategies of Major Competitors
Company A Company B Company C Your Company

Target Market

Product / Service Strategies

Pricing Strategies

Distribution Strategies

Promotion Strategies
MADI
● Once the strategies have been summarized, the entrepreneur can now proceed
to identify his competitors’ strength (or benchmarks that must be met or
surpassed) and weaknesses ( or gaps in the execution of the strategy).
● The MADI questions of Dr. Ned Roberto provides a useful way of identifying
unmet and unsatisfied customer needs and expectations.
M- What is Missing?
A- What is Annoying?
D- What is Disappointing?
I- What is Irritating?
Strength and Weakness of Major Competitors

Company A Company B Company C

Strengths
(Benchmarks)

Weaknesses
(Execution Gaps)
What are the Steps in Preparing the Marketing Plan?
1. Assessing the business situations
2. Defining the target market
3. Setting the marketing goals and objectives
4. Developing marketing strategy and action programs
5. Preparing the budget for the action plan
Assessing the Business Situation
● Since the industry and competitive analysis had already been done in the
first section of the business plan, the entrepreneur should just reiterate
some key elements to help provide the context for decisions concerning
the target market and the strategies that will be employed to address the
needs and expectations of this segment of the market.
Defining The Target Market
The process of segmenting and targeting customers include the following
steps:

1. Define what general market or industry you wish to enter.


2. Divide the market into smaller groups based on customer characteristics.
3. Select a segment or segments to target
4. Prepare a marketing plan integrating product, price, distribution and
promotion.
Setting the Marketing Goals
SMART means that marketing objectives must be: S-specific, M- measurable,
A- attainable, R-realistic, T- Time bound.
Developing Marketing Strategy and Action programs
● Once the marketing goals and objective have been set, the entrepreneur
can proceed with developing his marketing strategy.
● Answering the question “How do we get there?” strategies should be
formulated for each element of the marketing mix.
Product
● Include a description of the product or services that will be offered by the
business. There must be also description of other important components
that add value to the customer, such as brand name, image, packaging,
delivery time, after-sales service and warranty.
Pricing
● Cost, competition and perceived value must be considered when deciding
the price of a product.
Promotion
● For start -up businesses, it is essential for the entrepreneur to make his
product known to his potential market.
Preparing the Budget for Action Plan
● The budget needed to execute the marketing strategies and activities can
be included in the marketing plan when prepared as a stand alone
document. However if it is a business plan, then the budget must be
included in the financial projections.
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 payment,
credit terms, and payment period

Place ( distribution) Setting up of own distribution outlet, use of wholesalers and or retailers ,
number of distributors, number of channels, geographic coverage,
inventory, transportation, and the use of electronic channels

Promotion Media alternatives, message, advertising budget, sales promotion, use of


social networking, website design and interface and publicity efforts.

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