The Marketing Plan

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Chapter 10
The Marketing Plan
Devising a Marketing Plan
10.1
Reviewing and Revising the Marketing Plan
10.2
3
10.1

• 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.

Section 10.1 Devising a Marketing Plan
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10.1

• 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.

Section 10.1 Devising a Marketing Plan
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10.1

• marketing plan
• marketing objectives
• marketing mix
• brand
• package
• label
• product positioning

product mix channel of distribution intermediaries
intensive distribution selective
distribution exclusive distribution marketing
tactics
Section 10.1 Devising a Marketing Plan
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Forming Marketing Objectives

• 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.

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Forming Marketing Objectives

• A convincing marketing plan includes a rationale
  for your selection of marketing strategies and
  tactics.

marketing plan a plan used by a business to
guide its marketing process to a desired
conclusion based on information obtained through
market research and target market decisions
Section 10.1 Devising a Marketing Plan
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The Marketing Plan

• A successful marketing plan contains specific
  marketing objectives.

marketing objectives what a business wants to
accomplish through its marketing efforts
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The Marketing Plan
product introduction or innovation
sales or market share
team organization
Marketing Objectives
projected profitability
advertising
pricing
distribution
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Developing the Marketing Mix

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

marketing mix the five marketing strategies
used to reach a market product, place, price,
promotion, and people
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Developing the Marketing Mix
The Five Ps of Marketing
P
Product
P
Place
P
Price
P
Promotion
P
People
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The Product Strategy

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

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The Product Strategy

• Product considerations include

• features and benefits
• branding, packaging, and labeling
• selection
• positioning
• mix

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The Product Strategy

• A products brand, package, and label serve as
  strategies for maintaining customer loyalty.

brand the name, symbol, or design used to
identify a product
package the physical container or wrapper used
to present information
label the part of the package used to present
information about the product
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The Product Strategy

• Branding, packaging, and labeling can have a
  bearing on product positioning.

product positioning how consumers see a product
in comparison to another product
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The Product Strategy

• The final consideration in your product strategy
  is determining your companys product mix.

product mix all the products a company makes or
sells
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The Place Strategy

• The place strategy deals with how you will
  deliver your goods and services to customers.

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The Place Strategy

• Place strategy considerations include

• channels of distribution
• intensity of distribution
• transportation
• location, layout, and availability

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The Place Strategy

• To formulate a place strategy, the entrepreneur
  needs to understand the channel of distribution.

channel of distribution the path a product
takes from producer or manufacturer to final user
or consumer
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The Place Strategy

• There are two basic types of channels of
  distribution in the place strategydirect and
  indirect.
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• A direct channel moves a product from producer to
  customer with no other businesses involved.

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The Place Strategy

• An indirect channel of distribution employs
  intermediaries.

intermediaries people or businesses that move
products between producers and final users,
including wholesalers, retailers, distributors,
and agents
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The Place Strategy
Channels of Distribution
Direct
Indirect
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The Place Strategy

• There are three ways to distribute a product

intensive distribution placement of a product
in all suitable sales outlets
selective distribution placement of a product
where its number of sales outlets are limited in
an area

• intensive distribution

• selective distribution

• exclusive distribution

exclusive distribution placement of a product
where its number of sales outlets are limited to
one per area
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The People Strategy

• The people strategy involves assembling,
  preparing, and maintaining the people who will
  help the business achieve success.

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The Price and Promotion Strategies

• The price strategy is a financial decision and a
  marketing strategy that affects the customers
  motivation to buy.
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• The promotion strategy is designed to tell
  potential customers about a businesss products
  and their characteristics, benefits, and
  availability.

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Marketing Tactics

• To apply marketing strategies, entrepreneurs
  employ marketing tactics.

marketing tactics activities that are taken to
carry out a marketing plan
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10.1

• Identify the role of marketing objectives in
  developing a marketing plan.

Marketing objectives state what a business wants
to accomplish through its marketing efforts.
Section 10.1 Devising a Marketing Plan
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10.1

• Name the five marketing strategies that make up
  the marketing mix.

product, place, people, price, and promotion.
Section 10.1 Devising a Marketing Plan
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10.1

• Describe the part marketing tactics play in the
  marketing plan.

Marketing tactics are the activities used to put
the marketing mix and the marketing plan into
action.
Section 10.1 Devising a Marketing Plan
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10.2

• State the importance of ongoing market research.
• List the factors to consider for each strategy
  when reviewing the marketing mix.
• Describe how to update the marketing mix and
  marketing plan.

Section 10.2 Reviewing and Revising the Marketing
Plan
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10.2

• The target markets, customer demands, and
  competition of a business change over time.
• For a business to succeed, you must make timely
  adjustments to your marketing plan.

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Plan
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10.2

• private brand
• guarantee
• diversification

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Plan
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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.

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Plan
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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.

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Plan
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Possible Changes to the Product Strategy
adding products
eliminating products
revising guarantees and service policies
Product Strategy Changes
changing products
changing brands, packaging, or labels
identifying new uses for products
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Plan
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Possible Changes to the Product Strategy

• You may want to consolidate products you
  manufacture under different brands under a single
  brand.

private brand a brand that is owned and
initiated by a wholesaler or retailer
You may also choose to sell your own private
brand.
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Plan
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Possible Changes to the Product Strategy

• To build customer confidence and increase sales,
  a business can offer a service policy or a
  guarantee.

guarantee an assurance of the quality of a
product
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Plan
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Possible Changes to the Place Strategy
improving location
rearranging layout
Place Strategy Changes
changing channels of distribution
increasing availability
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Plan
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Possible Changes to the People Strategy
number of people
system rewards
employee qualifications
People Strategy Changes
human resource responsibilities
team-building responsibilities
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Plan
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Possible Changes to the Price and Promotion
Strategies
pricing for profit
Price andPromotion Strategy Changes
reacting to market prices
revising terms of sale
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Plan
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Revising Your Marketing Plan and Mix

• 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 the process of investing in
products or businesses with which an existing
business is not currently involved
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Plan
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10.2

• State the importance of ongoing market
  research.

Ongoing market research provides information that
enables a business owner to make decisions that
ensure the profitability of the business.
Section 10.2 Reviewing and Revising the Marketing
Plan
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10.2

• List the factors to consider for each strategy
  when reviewing the marketing mix.

For product strategy goods and services to
offer, differentiation from competitors
products, and clear product identification. For
place strategy changes in location, layout,
availability, and channels of distribution. For
people strategy shifts in demand, changes in the
nature of the business, or growth. For price
strategy pricing for profit, reacting to market
prices, and revising terms of sale. For promotion
strategy making the most of advertising dollars,
stimulating sales, and planning for the long
term.
Section 10.2 Reviewing and Revising the Marketing
Plan
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10.2

• Describe how to update the marketing mix and
  marketing plan.

Updating the marketing mix involves reviewing
individual strategies for recent adjustments and
needed changes. Changes and proposed changes are
then reviewed for consistency with marketing
objectives (and budget considerations). Based on
these reviews, adjustments are made to ensure
that all strategies are coordinated to accomplish
the marketing objectives. Finally, the revised
mix is incorporated into the marketing plan and
supporting elements of the plan are modified
accordingly.
Section 10.2 Reviewing and Revising the Marketing
Plan
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E-Commerce Development Options

• Once you decide to start an e-commerce business,
  you will need to plan how your site will be
  developed.
•  
• You may use a Web-development service, such as a
  Web designer or Web developer a hosted service
  that offers turnkey sites a software package or
  templates.

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Plan
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Tech Terms
template a file that establishes the format and
appearance of a Web page   turnkey a
preprogrammed and ready-to-operate hosted
e-commerce site
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Plan
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Tech Terms
Web designer a person who plans the aesthetic
and navigational aspects of a Web site   Web
developer a person who programs a Web site from
a technical standpoint
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Plan
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