Developing a Marketing Plan. 10.1. Section. p g g. p g g. Updating the Marketing
Plan. 10.2. Section. Glencoe Entrepreneurship: Building a Business.
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The Marketing Plan
SECTION
10.1
Developing a Marketing Plan
SECTION
F Forming i Marketing M k ti Objectives Obj ti Section
10.1
Developing p g a Marketing g Plan
Section
10.2
Updating the Marketing Plan
A convincing marketing plan includes a rationale for your selection of marketing strategies and tactics.
Th success off a business The b i iis d determined t i d iin th the marketplace.
SECTION
10.1
Developing a Marketing Plan
F Forming i Marketing M k ti Objectives Obj ti
Marketing is the process of developing, promoting, and distributing products to satisfy customers t and db businesses. i
Glencoe Entrepreneurship: Building a Business
10.1
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
Developing a Marketing Plan
SECTION
10.1
marketing plan ap plan used by y a business to guide its marketing process to a desired conclusion based on information obtained through market research and target market decisions
Developing a Marketing Plan
The Marketing Plan Th Marketing The M k ti Plan Pl
D Developing l i the th Marketing M k ti Mix Mi
product introduction or innovation
A successful marketing plan contains specific marketing objectives.
sales or market share
team organization
marketing objectives what a business wants to accomplish through its marketing efforts
advertising
M k ti Marketing Objectives
distribution
Developing a marketing mix enables an entrepreneur to map out how to accomplish marketing initiatives.
projected profitability
marketing mix the five marketing g strategies g used to reach a market: product, place, price, promotion, and people
pricing
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
5 Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a Marketing Plan
SECTION
10.1
Developing a Marketing Plan
Developing the Marketing Mix The Five Ps of Marketing
Th Product The P d t Strategy St t
P d t Product
The product strategy deals with the goods or services your business b i will ill provide. id
P Place
Product considerations include: • • • • •
Price P Promotion P p People
features and benefits branding, packaging, and labeling selection positioning mix
Th Product The P d t Strategy St t brand
A product’s brand, package, and label serve as strategies for maintaining customer loyalty. package the physical container or wrapper used to present information
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
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the name, symbol, or design used to identify a product
label the p part of the p package g used to present information about the product
SECTION
10.1
Developing a Marketing Plan
Th Product The P d t Strategy St t product positioning
Branding, packaging, and l b li can h labeling have a b bearing i on product positioning.
The final consideration in your product strategy is determining your company’s product mix.
how consumers see a product in comparison to another product
SECTION
10.1
Developing a Marketing Plan
The Place Th Pl Strategy St t The place strategy deals with how you will deliver your goods and services to customers. Place strategy considerations include: • • • •
product mix all of the products a company makes or sells
channels of distribution intensity of distribution transportation location, layout, and availability
SECTION
10.1
Developing a Marketing Plan
Th Place The Pl Strategy St t
To formulate a place strategy, the entrepreneur needs to understand the channel of distribution.
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
SECTION
10.1
Developing a Marketing Plan
SECTION
10.1
channel of distribution the p path a p product takes from producer or manufacturer to final user or consumer
Developing a Marketing Plan The Place Strategy
Th Place The Pl Strategy St t
Channels of Distribution
Th Place The Pl Strategy St t
Direct
There are two basic types of channels of distribution in the place strategy—direct and i di t indirect.
An indirect channel of distribution employs intermediaries.
A direct di t channel h l moves a product d t ffrom producer d to customer with no other businesses involved. Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
intermediaries
Producer
p p or businesses that people move products between producers and final users, including wholesalers, retailers, distributors, and agents
Consumer
Indirect Producer
Intermediary
Consumer
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SECTION
10.1
Developing a Marketing Plan
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10.1
Developing a Marketing Plan
SECTION
10.1
Developing a Marketing Plan
intensive distribution
Th Place The Pl Strategy St t
placement of a product in all suitable sales outlets
There are three ways to distribute di ib a product: d selective distribution
• intensive distribution • selective distribution • exclusive distribution
placement of a product where its number of sales outlets are limited in an area
Th People The P l Strategy St t
The people strategy involves assembling, preparing, and maintaining the people who will h l th help the b business i achieve hi success.
Th Price The P i and d Promotion P ti Strategies St t i
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.
exclusive distribution placement of a product where its number of sales outlets are limited to one per area
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
SECTION
Developing a Marketing Plan
10.1
SECTION
M k ti Tactics Marketing T ti
10.2
Updating the Marketing Plan
SECTION
Th Importance The I t off Ongoing O i Market M k t Research R h
To apply marketing strategies, entrepreneurs employ marketing tactics.
activities that are taken to carry out a marketing plan
• • •
Updating the Marketing Plan
R i i Your Reviewing Y Marketing M k ti Plan Pl and d Mix Mi
There are many benefits to ongoing market research.
In business business, change is constant constant. In order to stay up-todate with changes as they occur:
marketing tactics
10.2
Gather primary data from customers. Gather secondary data from business records. Collect information that affects your operation.
The research provides information you need to make adjustments to your marketing plan and allows ll you tto revise i and d rework k your marketing k ti mix strategies to make them more effective.
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Chapter 10 The Marketing Plan
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
Glencoe Entrepreneurship: Building a Business
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Possible Changes to the Product Strategy adding products p
revising guarantees t and service policies
changing brands, packaging, or labels
Updating the Marketing Plan Possible Changes to the Place Strategy
Possible Changes to the Product Strategy You may want to consolidate products you manufacture under g different brands under a single brand. You may also choose to sell your own private i t brand. b d
eliminating products p
Product Strategy Changes
10.2
changing products
T build To b ild customer t confidence fid and increase sales, a business can offer a service policy or a guarantee.
identifying new uses for products p
private brand a brand that is owned and initiated by a wholesaler or retailer
improving po g location
rearranging ea a g g layout
Place Strategy St t Changes changing channels of distribution
guarantee an assurance of the quality of a product
increasing availability
Chapter 10 The Marketing Plan
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SECTION
Possible Changes to the People Strategy
Possible Changes to the Price and Promotion Strategies
Reviewing and revising your marketing plan and mix regularly will help you identify and make necessary strategy changes. h Such a review sets the stage for longer longer-term term market planning, such as expansion, revision, or diversification.
pricing i i ffor profit fit
People Strategy Changes
human resource responsibilities
employee qualifications q
P i and Price d Promotion Strategy Changes
revising terms of sale
team-building responsibilities
Updating the Marketing Plan
R i i Your Revising Y Marketing M k ti Plan Pl and d Mix Mi
number of people
system rewards
10.2
reacting to market k t prices
Chapter 10 The Marketing Plan
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diversification the p process of investing g in products or businesses with which an existing business is not currently involved