The Marketing Plan

What is Marketing?
all of the processes used to determine and satisfy the needs of
customers and the company
 Planning

 Pricing

 Promoting

 Distributing

 Selling
 A successful marketing
concept will
Identify what will satisfy the customers’ needs and
wants

Develop and market products or services that customers

consider better than other choices

Operate profitably
 Marketing Mix
Reaching the target market through a blend of:

Product

Price

Distribution

Promotion
 The Marketing Strategy
a plan that identifies how business goals will be achieved
through marketing efforts

Product introduction or innovation

Pricing

Distribution

Promotion

Sales or Market share

Projected Profitability
 Marketing goals should
Be achievable with your available resources

Be written following the SMART guidelines

Reflect short, medium and long-term goals

 Short-Term Goals
Achievements for the next year are the focus of short-
term goals.
 Number of Customer

 Level of Sales

 Level of Profit
 Medium-Term Goals

Achievements for the next two to five years are the

focus of medium-term goals.

Make sure your marketing strategy facilitates

achievement of medium-term goals.
 Long-Term Goals

Achievements for a 5, 10, or 20 year time horizon are

the focus of long-term goals.

Long-term goals can help define current marketing

plans.
 Marketing Plan
The marketing plan should include following information

Product or Service

Target Market

Competition

Marketing Budget

Business Location

Pricing Strategy

Promotional Strategy

Distribution Strategy
Marketing plans should include performance standards
that are measurable.

Actual results should be compared to performance

standards quarterly.
 Consumer-Driven Market

The wants and needs of customers are the most

important consideration when developing any product or
marketing effort.

The U.S. has changed from a product- driven market to

a consumer-driven market.

Consumers are more educated.

Competition includes the global market.
 Product Mix
product mix
the different products and services a business sells

Entrepreneurs may carry some products that are not

profitable just to please customers.

A small percentage of the product selection often makes

up the majority of sales revenue.
 Product Management
There is more to a product than consumers may realize.

Features

Branding

Packaging

Labeling

Positioning
 Select Product Features

 Features
product characteristics that will satisfy customer needs

 The target market should be considered when selecting

product features.
 Consider Branding,
Packaging, and Labeling
 Brand

 The name, symbol, or design used to identify your

product

 Package

 The box, container, or wrapper in which the product is

placed
 Label
 where information about the product is given on the
package

 The brand, package, and label that you choose for a

product help differentiate it from others on the market.
 Position Your Products or
Services
Different products and services within the same
category serve different customer needs.

Positioning

Creating an image for the product in the customer’s

mind
 Market Share

A business’s percentage of the total sales generated by

all companies in the same market

The total market for a product must be known in order

for market share to be determined.
 Market Share

Amount of Sales ÷ Total Market Size

There are multiple ways to increase market
share including
 lowering prices
 advertising and promotion
 networking with potential customers
 Demand-Based Pricing

Demand-based pricing

pricing that is determined by how much customers are

willing to pay for a product or service

Survey potential customers to determine what they

would be willing to pay for a product.

The highest price identified is the maximum price that

can be charged.
 Cost-Based Pricing

cost-based pricing- determined by using the wholesale

cost of an item as the basis for the price charged

markup price -determined by adding a percentage

amount to the wholesale cost of an item
 Competition-Based Pricing

competition-based pricing

pricing that is determined by considering what

competitors charge for the same good or service
 Price a Service or an Idea

To set a price for a service, consider the following:

The cost of items used in providing the service

The amount of time required to produce the service

 Pricing Strategies

Pricing can make or break a business.

Pricing techniques may change over time.

 Introductory Pricing

price skimming - used for products that are new and

unique ;a high price is charged to cover product
development costs

penetration pricing- a low introductory price is charged

to build

a strong customer base  discourages competition

 Psychological Pricing

Psychological pricing
Certain prices have an impact on how customers
perceive a product

Used most commonly in retail

 Techniques used in psychological
pricing include the following
 prestige pricing- a high price to create a feeling of
superiority

 odd/even pricing- prices ending in odd numbers are

perceived to be bargains

prices ending in even numbers suggest higher quality

 Discount Pricing

discount pricing
offers customers a reduced price  encourages
purchases
Trade discount
price reductions granted by a manufacturer or
wholesaler to buyers in the same trade

seasonal discounts - used to sell seasonal merchandise

out of season