The Marketing Plan Back to Table of Contents Chapter 10 The Marketing Plan The Marketing Plan 10.1 Devising a Marketing Plan 10.2 Reviewing and Revising the Marketing Plan 2 The Marketing Plan 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 3 The Marketing Plan 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 4 The Marketing Plan 10.1 marketing plan marketing objectives marketing mix brand package label product positioning Section 10.1 Devising a Marketing Plan product mix channel of distribution intermediaries intensive distribution selective distribution exclusive distribution marketing tactics 5 The Marketing Plan 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. Section 10.1 Devising a Marketing Plan 6 The Marketing Plan Forming Marketing Objectives A convincing marketing plan includes a rationale for your selection of marketing strategies and tactics. Section 10.1 Devising a Marketing Plan 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 7 The Marketing Plan The Marketing Plan A successful marketing plan contains specific marketing objectives. Section 10.1 Devising a Marketing Plan marketing objectives what a business wants to accomplish through its marketing efforts 8 The Marketing Plan product introduction or innovation sales or market share team organization advertising Marketing Objectives distribution Section 10.1 Devising a Marketing Plan projected profitability pricing 9 The Marketing Plan Developing the Marketing Mix Developing a marketing mix enables an entrepreneur to map out how to accomplish marketing initiatives. Section 10.1 Devising a Marketing Plan marketing mix the five marketing strategies used to reach a market: product, place, price, promotion, and people 10 Developing the Marketing Mix The Five Ps of Marketing P Product P Place P Price P Promotion P People Section 10.1 Devising a Marketing Plan 11 The Marketing Plan The Product Strategy The product strategy deals with the goods or services your business will provide. Section 10.1 Devising a Marketing Plan 12 The Marketing Plan The Product Strategy Product considerations include: features and benefits branding, packaging, and labeling selection positioning mix Section 10.1 Devising a Marketing Plan 13 The Marketing Plan The Product Strategy A product’s 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 Section 10.1 Devising a Marketing Plan 14 The Marketing Plan The Product Strategy Branding, packaging, and labeling can have a bearing on product positioning. Section 10.1 Devising a Marketing Plan product positioning how consumers see a product in comparison to another product 15 The Marketing Plan The Product Strategy The final consideration in your product strategy is determining your company’s product mix. Section 10.1 Devising a Marketing Plan product mix all the products a company makes or sells 16 The Marketing Plan The Place Strategy The place strategy deals with how you will deliver your goods and services to customers. Section 10.1 Devising a Marketing Plan 17 The Marketing Plan The Place Strategy Place strategy considerations include: channels of distribution intensity of distribution transportation location, layout, and availability Section 10.1 Devising a Marketing Plan 18 The Marketing Plan The Place Strategy To formulate a place strategy, the entrepreneur needs to understand the channel of distribution. Section 10.1 Devising a Marketing Plan channel of distribution the path a product takes from producer or manufacturer to final user or consumer 19 The Marketing Plan The Place Strategy 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. Section 10.1 Devising a Marketing Plan 20 The Marketing Plan The Place Strategy An indirect channel of distribution employs intermediaries. Section 10.1 Devising a Marketing Plan intermediaries people or businesses that move products between producers and final users, including wholesalers, retailers, distributors, and agents 21 The Place Strategy Channels of Distribution Direct Producer Consumer Indirect Producer Section 10.1 Devising a Marketing Plan Intermediary Consumer 22 The Marketing Plan The Place Strategy There are three ways to distribute a product: intensive distribution selective distribution exclusive distribution Section 10.1 Devising a Marketing Plan 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 exclusive distribution placement of a product where its number of sales outlets are limited to one per area 23 The Marketing Plan The People Strategy The people strategy involves assembling, preparing, and maintaining the people who will help the business achieve success. Section 10.1 Devising a Marketing Plan 24 The Marketing Plan The Price and Promotion Strategies 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. Section 10.1 Devising a Marketing Plan 25 The Marketing Plan Marketing Tactics To apply marketing strategies, entrepreneurs employ marketing tactics. Section 10.1 Devising a Marketing Plan marketing tactics activities that are taken to carry out a marketing plan 26 The Marketing Plan 10.1 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 27 The Marketing Plan 10.1 2. Name the five marketing strategies that make up the marketing mix. product, place, people, price, and promotion. Section 10.1 Devising a Marketing Plan 28 The Marketing Plan 10.1 3. 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 29 The Marketing Plan 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 30 The Marketing Plan 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. Section 10.2 Reviewing and Revising the Marketing Plan 31 The Marketing Plan 10.2 private brand guarantee diversification Section 10.2 Reviewing and Revising the Marketing Plan 32 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. Section 10.2 Reviewing and Revising the Marketing Plan 33 The Marketing Plan 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. Section 10.2 Reviewing and Revising the Marketing Plan 34 Possible Changes to the Product Strategy adding products revising guarantees and service policies eliminating products Product Strategy Changes changing brands, packaging, or labels Section 10.2 Reviewing and Revising the Marketing Plan changing products identifying new uses for products 35 The Marketing Plan 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. Section 10.2 Reviewing and Revising the Marketing Plan 36 The Marketing Plan Possible Changes to the Product Strategy To build customer confidence and increase sales, a business can offer a service policy or a guarantee. Section 10.2 Reviewing and Revising the Marketing Plan guarantee an assurance of the quality of a product 37 Possible Changes to the Place Strategy improving location rearranging layout Place Strategy Changes changing channels of distribution Section 10.2 Reviewing and Revising the Marketing Plan increasing availability 38 Possible Changes to the People Strategy number of people system rewards People Strategy Changes human resource responsibilities Section 10.2 Reviewing and Revising the Marketing Plan employee qualifications team-building responsibilities 39 Possible Changes to the Price and Promotion Strategies pricing for profit Price and Promotion Strategy Changes revising terms of sale Section 10.2 Reviewing and Revising the Marketing Plan reacting to market prices 40 The Marketing Plan Revising Your Marketing Plan and Mix Reviewing and revising your marketing plan and mix regularly will help you identify and make necessary strategy changes. diversification the process of investing in products or businesses with which an existing business is not currently involved Such a review sets the stage for longer-term market planning, such as expansion, revision, or diversification. Section 10.2 Reviewing and Revising the Marketing Plan 41 The Marketing Plan 10.2 1. 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 42 The Marketing Plan 10.2 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 43