Module 3

BUSINESS PLANNING
ENT550
MODULE 3 :
MARKETING PLAN
Entrepreneurship Dept, FBM

(2009)
ETR/ENT300 MODULE 8 : Marketing Plan
LEARNING OUTCOME
Understand the importance of preparing a
marketing plan
Describe the steps in preparing a marketing plan
Identify components of a marketing plan
Prepare a marketing plan for a small business

(2009)
MODULE OUTLINE
Introduction
Steps in Preparing a Marketing Plan for Small
Businesses.
Marketing Objectives
Product or Service
Target Market
Market Trend and Market Size
Competition
Sales Forecast
Marketing Strategy
Marketing Personnel
Marketing Budget

(2009)
INTRODUCTION
A well prepared marketing plan helps entrepreneurs to:
evaluate market acceptance
develop strategies to market products or services of
the business
identify required resources to execute the marketing
strategy
estimate marketing financial requirement

(2009)
STEPS IN PREPARING A MARKETING PLAN

1.
2.
3.
4.
5.
6.
7.
8.
9.
Setting Marketing Objectives

Determining product or service
Identifying target market
Analyzing market trend and size
Assessing competition
Forecasting sales
Developing marketing strategy
Planning for marketing personnel
Preparing marketing budget

(2009)
1. SETTING MARKETING OBJECTIVES:

New business
Introduce new products/services
Estimate market acceptance and sales
Existing business
Introduce new products/services
Inform market of product improvement
Enter new market
Increase sales of existing products
Increase market share
Market penetration
Regain market for existing product

(2009)
2. DETERMINING PRODUCT OR SERVICE

Needs & wants of customers
Marketability of a product or service
Guide in describing product or services
State clearly the value and benefits of product or service to
customers. Capitalize on the uniqueness or strengths of
the product or services such as on its formulation,
ingredients used, safety, ease of use, life span, flexibility,
assortment, location, operation hours, personalization,
extended warranty etc.

(2009)
3. IDENTIFYING TARGET MARKET

Who is the consumer of the product or service?
What is their common needs or wants that would
be satisfied by the product or service?
What is their common characteristics?

(2009)
Target Market Alternatives

SEGMENTED MARKETING
Target several or a particular market segments
Design separate offers for each segment
Niche Marketing:
Targeting a large share of one or a few segments or
niches
Micromarketing:
Tailoring products to suit the tastes of specific individuals
and locations

(2009)
TARGET MARKET ALTERNATIVES

Mass-Marketing
ignoring market segment differences
go after the whole market with one offer

(2009)
10
COMMON BASES FOR SEGMENTATION

Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Occasions
Benefits Sought
User Status
Usage Rate
Loyalty Status

(2009)
11
4. ANALYZING MARKET TREND

AND MARKET SIZE
What is the trend in the market?

What is market potential?
Size of the market - what is the RM value?
Customer profiles of relevant market segments.

(2009)
12
Market Size:
Total potential purchase of target market
Should be translated into monetary value
Growing, remain the same or shrinking
Market Share:
a comparative measure to assess performance
against the competition

(2009)
13
5. ASSESSING COMPETITION
Identify Competitors
Assess their market positions and strategies i.e.;
product quality, pricing, distribution and
promotion
Strengths and weaknesses
Duration in market
Customers

(2009)
14
6. FORECASTING SALES
Past performance
Break-even to set the minimum

Secured projects
On-going contracts
Anticipated or intended growth

(2009)
15
7. DEVELOPING MARKETING STRATEGY

To enable business to plan for its limited
resources in order to achieve stated marketing
objectives
The key idea is to deliver customer satisfaction
yet provide business with a competitive
advantage

(2009)
16
MARKETING STRATEGY
Product Strategy
Pricing Strategy
Place or Distribution Strategy
Promotion Strategy

(2009)
17
PRODUCT STRATEGY
Include product and service strategy
Product is a physical item that can be seen, owned,
used or consumed
Ideas and creations of the minds can also be
regarded as product
Service is intangible and cannot be seen or owned,
but is useful, can be experienced and able to satisfy
customer needs and wants
Product strategy refers to a product,
combination of both
(2009)
service or a
18
PRODUCT STRATEGY
Product attributes
Quality
Design
Trade name
Brand name
Packaging
Labeling
Warranty
After sales service
(2009)
19
MARKETING STRATEGIES FOR SERVICES

Service quality
consistency
Service package
Combination of services at competitive price
Service differentiation
Offering that is unique and can be
differentiated from the competitors
After sales services
Follow-up

(2009)
20
PRICING STRATEGY
Price is the value exchanged between the
seller and the buyer in order for the buyer to
possess, use or experience the product or
service offered
Most often, price is in the form of monetary
value paid by the buyer to obtain the product
or service

(2009)
21
PRICING STRATEGY
Common Pricing Methods:
Based on Cost
Fixed Cost + Variable Cost + Desired Margin
Based on Perceived Value
Based on Competition

(2009)
22
PRICING TACTICS
Price lining
Discounting
Purchase with purchase
Psychological pricing
Captive pricing
Product bundle pricing
Segmentation pricing

(2009)
23
FACTORS TO CONSIDER WHEN SETTING PRICE
Marketing objectives
Demand and supply
Competitors pricing

(2009)
24
PLACE OR DISTRIBUTION STRATEGY

Place strategy refers to the decision made on the
location of the business
Choice of location is crucial for most brick and mortar
businesses
Channel of distribution is a network developed to
ensure product or services reach target consumers
Distribution strategy for consumer product and
industrial product may vary

(2009)
25
DISTRIBUTION STRATEGY
Manufacturer/Producer
Wholesaler
Wholesaler
E-Intermediaries
Retailer
Retailer
Consumer
(2009)
26
FACTORS TO CONSIDER WHEN

DETERMINING DISTRIBUTION STRATEGY
Type of product
Target market
Market coverage
Transportation ease
Product standardization

(2009)
27
PROMOTION STRATEGY
Promotion is any coordinated effort taken to
supplement the product, price and place
strategies in order to achieve marketing
objectives.

(2009)
28
PROMOTION STRATEGY
Advertising
Sales promotion
Personal Selling
Publicity

(2009)
29
PROMOTION STRATEGY
Advertising
Paid, non personal sales effort through a medium to influence a
large number of consumers.
Channel of adverting
Printed
Newspaper
Magazines
Yellow pages
Brochures
Business cards
Electronic and Digital

Television
Radio
Internet
Sort messaging
system

(2009)
Outdoor
Billboards
Banners
Transportation
30
PROMOTION STRATEGY
Sales promotion
Promotional activities or incentives carried out or offered
within a set time frame to influence purchase
Common sales promotion strategies:
Rebates
Coupons
Purchase-with-purchase
Samples
Premiums
Contest
Rebates
Point-of-purchase promotion
Sweepstakes
Free delivery
Extended warranty
(2009)
31
Promotion Strategy
Personal Selling
Personal sales presentation conducted by a trained
sales person to influence potential customers. It is most
often used for products that require demonstration or
explanation
Publicity
Efforts taken to develop and maintain good relationship
with the public to ensure good favorable public image of
the business.

(2009)
32
8. PLANNING FOR MARKETING PERSONNEL

Determine number of supporting personnel
needed to undertake the marketing tasks - inhouse or outsource?
Examples:
Marketing manager or executives
Sales personnel
Promotion personnel
Distribution personnel
(2009)
33
9. PREPARING MARKETING BUDGET

Marketing budget refers to expenses incurred in planning
for the marketing aspect of the proposed business or
project.
It consists of 3 components :
1. Investment on fixed assets
2. Allocation for working capital for marketing activities
3. Other marketing expenses

(2009)
34
MARKETING BUDGET TABLE

Items
Fixed Asset
Signboard
Working Capital
Salary/EPF/SOCSO
- Marketing Manager
- Sales Consultant
- Promotion
Lain-Lain
Grand Opening
Total (RM)
(2009)
Fixed
Asset
(RM)
Working
Capital
(RM)
Other
Expenses
(RM)
4,000
3,000
1,500
500
5,000
4,000
5,000
5,000
35
END OF MODULE 3

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BUSINESS PLANNING

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

STEPS IN PREPARING A MARKETING PLAN

Setting Marketing Objectives

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

1. SETTING MARKETING OBJECTIVES:

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

2. DETERMINING PRODUCT OR SERVICE

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

3. IDENTIFYING TARGET MARKET

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Target Market Alternatives

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

TARGET MARKET ALTERNATIVES

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

COMMON BASES FOR SEGMENTATION

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

4. ANALYZING MARKET TREND

What is the trend in the market?

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Break-even to set the minimum

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

7. DEVELOPING MARKETING STRATEGY

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

ETR/ENT300 MODULE 8 : Marketing Plan

ETR/ENT300 MODULE 8 : Marketing Plan

MARKETING STRATEGIES FOR SERVICES

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

Entrepreneurship Dept, FBM

ETR/ENT300 MODULE 8 : Marketing Plan

FACTORS TO CONSIDER WHEN SETTING PRICE