Transcript Chapter#8 The Marketing plan by Shepherd Hisrich

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ALIA ASHRAF(07-19)
SAIMA ASGHAR(07-20)
SHAFAQUE MAHMOOD(07-02)
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PRESENTED TO:
SIR GHULAM ABBAS
GROUP MEMBERS:
Chapter
ENREPRENEURSHIP
8
McGraw-Hill/Irwin
Entrepreneurship, 7/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
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Entrepreneurship 8th edition
Author:
Robert D Hisrich,
Micheal P. Peters
Dean a Shepherd
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Written Statement Of Marketing
objectives, strategies and
Activities to be followed in
Business Plan
 MP
responds to three Q’s
have we been ?
 Where are we going ?
 How do we get there ?
 ‘E’
conduct market research to respond to these Q’s
 Research
involves Secondary / Primary data process
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 Where
 Who
Market Research involves gathering of data in order
to determine such information:
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will buy the product or service ?
 What is the size of the potential market ?
 What price should be charged ?
 what is the most appropriate distribution
channel ?
 What is the most effective promotional
strategy to reach and inform potential
customers ?
Step Two: Gathering Data from Secondary Sources
Step Three: Gathering Information from Primary Sources
Step Four: Analyzing and Interpreting the Results
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Step One: Defining the Purpose or Objectives
 Sit
down & Make a list of the information that will
be needed to prepare the marketing plan.
So ask people what they think of the product or service
and if they would buy it & background demographics
 How much potential customers would be willing to pay
for the product or service
 Where the potential customers would prefer to
purchase the product or service
 Where the customer would expect to hear about or
learn about such a product or service
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Ex: ‘E’ may think there is a market for his product but is
not sure who the customers will be
Newspaper articles Libraries:
 Government agencies Trade magazines: dept & Chamber of commerce
 Internet

Local Media
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Dept & Chamber of
Commerce
Local Banks/ Dept
of Labor
Data collection procedures
 interviewing:
 focus

telephone- Mail- personal
groups: 10-12 potential customers
Questionnaire: sample questionnaire
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 Observation: record customers buying behaviors
 Can
be hand-tabulated or entered on a computer
should be evaluated and interpreted in
response to the research objectives
 Data
can be cross-tabulated in order to provide
more focused results.

Example: Entrepreneur compare results of Q’ by
different Age, Occupation, Location- fine tuning can
provide valuable insights particularly regarding the
segmentation of the market
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 Results
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SAIMA ASGHAR(07-20)
to provide answers to three basic questions:

Where have we been?(operational plan)
History of marketplace
Marketing Strengths & Weaknesses of the firm
Market Opportunities & Threats

Where do we want to go (in the short term)?
‘Q’ addresses marketing Objectives & Goals- in next 12 months

How do we get there?
Q discusses Marketing strategy
implementation- when it will occur- who will
be responsible for monitoring
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 Designed
A




Provide a strategy.
Be based on facts/assumptions
Be simple and short.
Be flexible.
Specify criteria for control.
Assignment “Exams”
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
marketing plan should:

Marketing Mix
Variable
Critical Decisions
Product
Quality of components or materials, style, features,
options, brand name, packaging, sizes, service availability,
and warranties.
Price
Quality image, list price, quantity, discounts, allowances for
quick payment, credit terms, and payment period.
Channels of
distribution
Use of wholesalers and/or retailers, type of wholesalers or
retailers, how many, length of channel, geographic
coverage, inventory, and transportation.
Promotion
Media alternatives, message, media budget, role of
personal selling, sales promotion (displays, coupons, etc.),
and media interest in publicity.
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Combination of product, price, promotion, and
distribution and other marketing activities needed to
meet marketing objectives.
 Define
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the business situation.
 Define the target market: opportunities and threats.
 Consider strengths and weaknesses.
 Establish goals and objectives.
 Define marketing strategy.


Describe how the product or service was developed.
Why it was developed.(satisfy consumers needs)
 Information



for a new venture:
after a new venture has started up:
Present market conditions.
Performance of the company’s goods and services.
Future opportunities or prospects.
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 Information
 Target

Knowledge of this provides a basis for determining the
appropriate marketing action strategy.
 Market
segmentation: process of dividing a market
into definable and measurable groups for purposes
of targeting marketing strategy


Otherwise ‘E’ have to identify a product or service that
would meet the needs of everyone in the marketplace
Allows the entrepreneur to more effectively respond to
the needs of more homogeneous consumers.
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market: specific group of potential
customers toward which venture aims its marketing
plan.
 Decide

on general market or industry to pursue.
Henry ford manufactured a single product(one color,
 Divide

Characteristics of the customer




market into smaller groups based on:
Geographic
Demographic
Psychographic
Buying situation




Desired benefits (e.g., product features)
Usage (e.g., rate of use)
Buying conditions
Awareness of buying intention
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one style, one size, etc)
 Reebok Discovered that many customers who bought running
shoes were not athletes (comfort & Style)
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 Select
segment or segments to target.
 Develop a marketing plan integrating product, pric
distribution, and promotion.
Restaurant market is segmented by state,
type of restaurant (fast food, family)
R part of hospital, school, company etc
 Establish

Marketing goals and objectives respond to the
question: “Where do we want to go?”.

( market share, profits, sales, number of distributors,
new product launch, pricing policy, sales promotion &
advertising support).
 Number
of goals or objectives can be limited to
between six and eight.
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realistic and specific goals and
objectives.
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SHAFAQUE MAHMOOD
(07-02)
 Specific
 Product


or service
May consider more than the physical characteristics.
Packaging, brand name, price, warranty, image, service,
delivery time, features, style, and even the Web site.
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activities outlined to meet the venture’s
business plan goals and objectives.
Costs
 Competition
 Margins or markups

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Pricing

Provides utility to the consumer.

Must also be consistent with other marketing mix
variables.
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Distribution

Entrepreneur needs to inform potential
consumers about the product’s availability or to
educate the consumer

Methods include: print, radio, or television,
Internet, direct mail, trade magazines, or
newspapers.
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Promotion
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