Transcript Marketing Plan

Marketing Plan
IT Entrepreneurial Work Term
Presentation
Marketing Plan
This presentation will introduce you to the 5 P’s of Marketing. In
addition, the marketing plan portion of a business plan typically
includes a Market Analysis (market research) overview which includes:
customer profile, market size and competitor analysis.
Industry Analysis should also be included in this section. PESTEL Scan is
a form of this exploration that gives an overview of the industry as a
whole in which your business idea operates by looking at trends and
finding supportive statistics.
The 5 P’s-An Overview
The objective is to get you thinking about the 5P’s of marketing so you can consider what is
involved in that section of a business plan. It’s an extremely important part of your
business planning and usually takes the most time to complete because RESEARCH is
required.
We will go through each of the following:
 Product/Service
 People
 Price
 Placement
 Promotion
These are also known as Marketing Mix.
The 5P’s of Marketing
Product and/or Service
The 5P’s of Marketing-Product/Service
In this section you describe all of your products and services and why there is a
need for them. Offer reasoning as to why your product or service is superior to
others selling similar product/service.
Consider what you are really selling. What’s in it for the customer?
Features are a description of the product or service.
Ex. Long-lasting, lash extending mascara. Cruelty-free, organically
sourced.
Benefits describe how the product/service solve a problem, makes us feel better,
stronger, healthier, gives us status, saves us time or money etc.? Benefits are the
‘why should I buy’?
Ex. Using the above mascara benefits may include: you feel good knowing
no animals were used for testing, organic ingredients are less irritating and harmful,
gives you sexy, enduring lash coverage, makes you feel youthful and beautiful.
The 5P’s-Product/Service
Questions to consider:
• What need will your
product/service fulfill?
• What is unique? What makes you
different or special compared to
your competitors?
• Who is the end user?
• Will your product/service change
over time?
• Do you offer any additional service
with your products/services?
• Have you considered the need to
trademark to patent your
product/service?
• Are there any training
requirements associated with
selling your product/service? Ex. If
you are selling pools, clients will
need to know about chemicals and
maintenance.
The 5P’s of Marketing
People and Market Research
People-Target Market
A target market is a specific group of consumers at which a company aims its products and services. All your marketing
activities must be directed to your target market. Not all customers may fit perfectly into the description of your ideal target
market, but generally marketing efforts are aimed at your ideal and realistic target market.
Examples to consider:
• Babies, children, men, women
• Young, old, single, married, divorced
• Lower, middle, upper income
• Blue collar worker, professional, student, retired
• Apartment living, home owner, cottage owners
• Where they live-rural, urban, suburban
• What they do-work, interests, hobbies, lifestyles
• Keep in mind 3rd part relationships (Ex. An infant cannot make buying decisions but a caregiver such as a parent buys
products/services on their behalf)
 Husband, wife, partner
 Parent or caregiver, child
 Business to business
People-Target Market Research
You can begin to identify your target market/ideal customer by examining
characteristics that groups may share such as:
Demographics: Are measurable statistics such as age, income and
occupation
Psychographics: Anything relating to customer personality, attitudes, values,
interests/hobbies or lifestyle such as gaming lovers or yoga enthusiasts
Geographics: The physical location of where you might find your customers
such as online, home or business
Status: Or, benefit and the desire to obtain product benefits such as
comfort, luxury or thriftiness
Frequency: How often purchases are made, how often they are used such as
buying habits, who might make those decisions and how often like traveling
or eating out
People-Target Market Research
Knowing your target market(s) allows
you to develop an effective strategy on
how to reach them First you must
gather information about your
customers and consider some of the
following questions:
• How many are in your targeted area?
• How often do they buy your type of
product/service?
• How much do they spend on those
purchases (weekly, monthly,
annually)?
• When do they typically buy (time of
day)?
• Where do they currently purchase the
product/service?
• Do they currently have loyalty with
another purveyor? Would they be
willing to switch to using your product
or service?
• What would it take to ‘lure’ clients
away from other businesses with
similar products/services?
*Keep in mind that through research,
you may identify that you have multiple
target markets.
People-Competition
There will always be competition for your business. If you can’t
identify any competitors then perhaps their isn’t a need or a market for
your type of product or service.
When writing a business plan, you must clearly identify who you
believe your significant competitors to be. If you can’t find direct
competition, then you should be looking for an alternative that your
customer would choose.
Ex. The customer is interested in self-defence lessons but purchased a
local gym membership instead.
People-Competition
Attempt to briefly describe 3-5 of
your strongest competitors; don’t
worry too much about
overestimating the number of
competitors. It will help to give you
a clear picture of where you need to
position your business.
Questions to consider:
• Where are they located?
• How long have they been in
business?
• Is there room for you to compete?
• What are their strengths and
weaknesses?
• What can you do better than they
do (quality, customer service,
specialization, custom orders etc.?)
People-Suppliers
You also have to look into
suppliers. You will describe the
process of supply in the
Operational plan.
• What do they charge? Do they
offer discounts?
• Do they ship? How much?
• How long will it take to receive
orders?
• Who is available out there?
Alternatives?
• How long have they been
around? Are they reliable?
• Where are they located?
• What are their payment
policies? Upon receipt? Do they
offer credit terms?
The 5P’s of Marketing
Price
Price
• This section of the marketing plan describes the pricing strategies for
your products and/or services. When setting prices, a lot of Market
Research goes into that final price. You need to realistically consider:
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How many hours can I work?
How many hours do I want to work?
What are my costs to produce, package and distribute my product/service?
How much profit do I want to make?
What are my expenses?
Do you offer any terms of credit? What are they?
Do you offer rebates, quantity discounts (volume, wholesale) or discounts for
certain customers such as students or seniors?
Price
There are only three (3) places your price can be: below average, at
average or higher than average.
If you plan to charge less than average then you will need to sell more
volume to make enough profit (like Dollar Stores or second hand
clothing boutiques).
Be cautious of under pricing your product/service as a new business;
people may be suspicious of your low prices or question the quality. If
you charge more than average, there needs to be a reason why people
will pay more! This could be your unique selling proposition (USP),
extra benefits that you offer, special features or benefits, availability
etc.
Price
Ask yourself:
• How do your prices compare to your industry average?
• What are your competitors charging?
• What will the market bear?
The 5P’s of Marketing
Placement
Placement
• This section of a business plan describes the distribution or ‘channels’
of how your product/service gets to your customer.
• This can be direct or indirect. For example, Old Navy sells in retail
locations/face to face and online
• Explain the distribution channel(s) through which your
product/service reaches your customers:
• How do you sell your products?
• How do you offer your services?
• What combination of distribution channels will you use?
The 5P’s of Marketing
Promotion
Promotion
It can be difficult to break into an established market with a new
business so is very important to choose the right promotional
strategies to attract and convince customers to buy from you instead of
your competitor(s).
The purpose of this section is to identify the form(s) of
communication(s) you intend to use to promote your product/service.
There are many methods to consider, each have advantages and
disadvantages; let’s explore some examples of promotional methods
and their possible advantages and disadvantages.
Promotion
Type of Media
Advantages & Disadvantages
• Print Ads: newspapers,
magazines, yellow pages, radio,
TV
• In person: face to face visit, cold
calling (phone)
• Mail outs: flyers in the paper or
mail
• Networking
Reaches a large audience BUT
expensive and not very direct
Reaches specific market BUT
time consuming
Reaches large audience, can be
targeted BUT may be expensive,
environmental impact
Reaches interested audience
BUT time consuming
Promotion
Type of Media
• Website
• Newsletters: press releases,
editorials in publications
• Social Networking Platforms:
b/vlog, YouTube channel,
Twitter, Facebook, LinkedIn
• Signage: vehicle, location, lawns
Advantages & Disadvantages
Replaces costly print, expected to
have web presence BUT may be costly
to build and maintain
Establishes you as content expert BUT
time consuming, long time to be
recognized
Direct contact, builds relationships,
partnership opportunities BUT could
be costly, effectiveness takes time
Visible to everyone BUT time
consuming, costly, by-laws to consider
Promotion
• All types of promotional activities have associated costs, even a
simple business card. Whether you are planning a grand opening or
other type of promotional event (Ex. Pop up shop), you need to be
aware of how much they will cost.
• It’s a good idea to have a promotional marketing budget mapped out
a targeted schedule/timeline (excellent to include a ‘calendar’ in
Appendix)
• Consider the best way(s) to reach your target market(s), what are
your competitors doing for promotional activities? Are they
effective? Can you take advantage?
Promotion-Branding
• Branding is the image and identity of you and your business; it’s how
you choose to present yourself. This includes price, packaging,
personal appearance, marketing materials and website etc.
• Brand is anything that is used to identify or distinguish a product,
service or business such as a name, slogan, sign or symbol.
• To have effective branding you must be CONSISTENT and have the
same look and feel (logo, colours, web design, uniforms)
• All branding efforts should be directed toward your target market to
communicate a clear message about your business and what you
stand for.