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
The Marketing Plan
10.2
3. 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
44
The Marketing Plan
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.
Section 10.2 Reviewing and Revising the Marketing Plan
45
The Marketing Plan
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
Section 10.2 Reviewing and Revising the Marketing Plan
46
The Marketing Plan
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
Section 10.2 Reviewing and Revising the Marketing Plan
47
End of
The Marketing
Plan
Back to Table of Contents