Business Studies in Action: HSC Course 3rd edition
Chapter summaries
Topic 3: Marketing
Chapter 10 Elements of a marketing plan
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An integrated marketing plan gives purpose and direction to all the business’s
activities.

There are five steps involved in developing a marketing plan.
Step 1 Situational analysis: A precise understanding of the business’s current
position and where it is heading.
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SWOT (strengths, weaknesses, opportunities and threats)
analysis: provides the information needed to complete the
situational analysis and assesses the business’s position compared
with its competitors.
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Product life cycle analysis: At each stage of the cycle a different
marketing strategy is necessary. A business must be able to launch,
modify, and delete products in response to changes in the product
life cycle.
Step 2 Establish marketing objectives: The realistic and measurable goals to
be achieved through the marketing plan. The marketing objectives should be
more customer oriented than the objectives for the entire business, and should
include specific targets to be met – for example, ‘Increase market share by 5
per cent over twelve months’. Marketing objectives include:
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Increase market share. Market share refers to the business’s total
share of the total industry sales for a particular market.
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Expand the product range. Product mix is the total range of
products offered by a business.
Business Studies in Action: HSC Course 3rd ed. Chapman, Norris, Devenish and Merritt. Chapter summary Page 1
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Expand existing markets. Geographical representation refers to
the presence of a business and the range of products across a
geographical area.
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Maximising customer service. Customer service means
responding to the needs and problems of the customer.
Step 3 Identify target markets: Specific groups of customers with similar
characteristics. Two broad approaches can be used when selecting a target
market:
1. Total market: a vast number of people. Example: Basic food
items.
2. Market segmentation: the total market is subdivided into groups
of people who share common needs. Example: HSC Business Studies
students.
Step 4 Develop marketing strategies: Actions to achieve marketing
objectives based on the ‘four Ps’ which make up the marketing mix: product,
price, promotion and place.
Step 5 Implement, monitor and control the marketing plan:
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Implement: decide which marketing strategies will be put into
action.
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Monitor:
o check and observe progress of the marketing plan.
o establish a performance standard
o develop a financial forecast
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Control: compare actual performance against planned through
the use of sales analysis, market share analysis/ratios,
marketing profitability analysis.
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Corrective action may need to be undertaken and revise the
marketing strategy through:
o changes in the marketing mix
o new product development or product deletion.
Business Studies in Action: HSC Course 3rd ed. Chapman, Norris, Devenish and Merritt. Chapter summary Page 2