Marketing Plan Outline for a Marketing Plan: Situational Analysis  Background of venture  Market opportunities and threats  Competitor

analysis  Strengths and weaknesses of venture Marketing objectives and goals Marketing strategy and action programs Budgets Controls The above table provides a suggested outline for a marketing plan. Variations of this outline will depend on the market and nature of the product, as well as the general company mission.

Information for developing the market plan may necessitate conducting marketing research which involves: the gathering of information in order to determine such information as who 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, and what is the most effective promotion strategy to inform and reach potential customers. Market Research for the New Venture Step 1: Defining the purpose or objectives  How much potential customers would be willing to pay for the product or service  Where potential customers would be prefer to purchase the product or service  Where the customer would expect to hear or learn about such a product or service.

Step 2: Gathering Data from Secondary Sources This is usually found in trade magazines, libraries, government agencies, the internet, and universities. Published information on industry, competitors, trends in consumer tastes and preferences, innovations in the market, and even specific information about strategies now being employed by competitors already in market. Step 3: Gathering Information from Primary Sources Information that is new is primary data. It involves a data collection procedure such as observation, networking, interviewing, focus groups, or experimentation, and usually a data collection instrument, such as a questionnaire. Step 4: Analyzing and Interpreting the Results The result should be evaluated and interpreted in response to the research objectives that were specified in the first step of the research process. Summarizing the answers to questions will give some preliminary insights.

Understanding the Marketing Plan It is designed to provide answers to three basic questions: 1. Where have we been? 2. Where do we want to go ( in the short term)? 3. How do we get there? Characteristics of a Marketing Plan  Provide strategy for accomplishment of companys mission or goal;  Based on facts and figures  Provide for the use of existing resources. Allocation of equipment, financial and human resources;  Organizational needs for implementation;  Continuity so that each annual plan can build on it for successfully meeting long-term goals;  Simple and short;  Flexible  Specify performance criterion for monitoring and control;

The Marketing System

External Environment Economy Culture Technology Demand Legal considerations Raw materials Competition Feedback

Entrepreneur

Marketing-mix decisions Market- Marketing Purchase planning Strategies decisions decisions directed to of customers customers

Internal environment Financial resources Suppliers Goals and objectives Management team It can be seen that the environment plays a very important role in developing the market plan. Thus, some research on these variables can be a good staring point for the entrepreneur before preparing the market plan.

Environment Analysis It attempts to give the entrepreneur extensive insight as to the current market conditions and the possible impact of external environmental factors that are uncontrollable by the entrepreneur. Some of the variables:  Economy  Culture  Technology  Industry Demand  Legal Concerns  Competition  Raw materials  Financial resources  Management team  Suppliers  Company Mission

Marketing Mix
The above environmental variables will provide much important information in deciding the most effective marketing strategy to be outlined in the marketing plan. Critical Decisions for Marketing Plan Marketing Mix Variable Critical Decisions Product Quality of components, 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 Use and type of wholesalers and/or retailers, how many, length of channel, geographic coverage, inventory, and transportation Media alternatives, message, media budget, role of personal selling, sales promotion and media interest in publicity

Channels of distribution

Promotion

Steps in Preparing the Marketing Plan

1. Critically examine present and prospective market situation Take into account company goals and restraints Set marketing objectives that are specific and measurable

2.

3.

4.

Determine marketing strategies and prepare action program (responsibilities and dates )

5.

Revaluate program against objectives from step 9

6. Objectives attainable not attainable

7.

Draft marketing plan, with steps to monitor progress of program

Step 2

Step 1

8.

Match feasibility of programs against available resources or restraints

9.

Feasible

Not feasible

10.

Submit marketing plan for approval

Defining the Target Market/ Opportunities and Threats 1. Target market : Specific group of potential customers toward which venture aims its marketing plan 2. Market Segmentation : Process of dividing a market into definable and measurable groups for purposes of targeting marketing strategy 3. Considering Strengths and Weaknesses: 4. Establishing Goals and Objectives: Statements of level of performance desired by new venture 5. Defining Marketing strategy and Action Program: Specific activities outlined to meet the venture business plan goals and objectives; Product or Service; Pricing; Distribution; Promotion;

6. Coordinating of the Planning Process 7. Designing Responsibility for Implementation 8. Budgeting the Marketing Strategy 9. Implementation of the Market Plan 10. Monitoring Progress of Marketing Actions Contingency Planning Generally, the entrepreneur does not have time to consider alternative plans of action, should the initial plan fail. However, it is important to be flexible and prepared to make adjustments where necessary. It is unlikely that any marketing plan will succeed exactly as planned. Why Some Plans Fail? Some of the more common reasons for failure that can be controlled are as follows: Lack of real plan Lack of an adequate situation analysis Unrealistic goals Unanticipated competitive moves, product deficiencies

and acts of God- With a good situation analysis, as well as an effective monitoring process, competitive decisions can be assessed and predicted with some degree of accuracy. Deficiencies in the product often result from rushing the product to the market. For act of God, such as an oil spill, flood, cyclone, or war, the entrepreneur has no control. Establishing Goals and Objectives Before any marketing strategy decisions can be outlined, the entrepreneur must establish realistic and specific goals and objectives. These marketing goals and objectives respond to the question: Where do we want to go? Should specify such things as market share, profits, sales ( by territory and region ), market penetration, numbers of distributors, etc. Awareness level, new product launching, pricing policy. Sales promotion, and advertising support. Obviously, these goals should represent key areas to success.

ANNEXURE: What Market Planning Can and Cannot Do Can Do Cannot Do

1. It will enhance the firms ability to integrate all marketing activities so as to maximize efforts toward achieving the corporate goals and objectives. 2. It will minimize the effects of surprise from sudden change in the environment. 3. It establishes a benchmark for all levels of the organization It will not provide a crystal ball that will enable management to predict the future with extreme precision. It will not prevent management from marketing mistakes. It will not provide guidelines for every major decision. Judgment by management at the appropriate time will still be critical. It will not go through the year without some modifications as the environment changes.

4. It can enhance managements ability to manage since guidelines and expectations are clearly designated and agreed to by many members of the marketing organization.