Transcript Unit B Planning and Preparing to Manage a Small Business

Unit B
Planning and Preparing to Manage a
Small Business
Competency 5.00
Understand pricing,
promotion, and market
planning.
Market Planning
5.06 Employ marketing
information to develop a
marketing plan.
The Basics of a Marketing Plan
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Marketing Objectives
Marketing Budget
Marketing Metrics
Sales Forecasting
The Marketing Objectives
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Increase in sales
What you want to achieve
Keeps the business focused on the goals.
Specific:
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Example: Increase profit by 6% next year.
How to set SMART goals
The Marketing Budget
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Develop AFTER determining objectives.
Helps to control spending.
What is cost of marketing activities?
Use the percentage-of-sales method =
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Allocate a certain amount based on goods and
services sold the previous year.
Marketing Metrics
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A measurement tool…
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Statistical measurements by which companies judge
effectiveness
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Gauge market’s buying habits and
attitudes…compared to profitability
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Must relate to objectives of Marketing Plan
Marketing Metrics
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Businesses select tools that will help
compare current market share to market
potential.
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Must relate to objectives of Marketing Plan
Sales Forecasting
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Used as a standard of measurement.
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What is competitor’s market share?
External Factors Affecting Forecast
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Inflation? Lower forecast. (quantitative)
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Increase in population in area. (quantitative)
Strategies for Forecasting
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Ask experienced sales people. (qualitative)
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Opinions of industry experts. (qualitative)