THE

MARKETING
PLAN
PRESENTED BY:
KARLA JOYOSA
&
JAMES ESTROPIA

LEARNING OBJECTIVES:
To understand the relevance of
industry and competitive
analysis to the market planning
process
To describe the role of marketing
research in determining
marketing strategy for the
marketing plan.
To illustrate an effective and
feasible procedure for
entrepreneur to follow engaging
in a market research study

LEARNING
To define the steps in
OBJECTIVES:
preparing the

marketing plan
To explain the
marketing system and
its key components
To illustrate different
creative strategies that
may be used to
differentiate or position
the new ventures
products or services.

INDUSTRY ANALYSIS:
Prior to the preparation
of the marketing plan,
the entrepreneur will
need to complete the
industry analysis
section of the business
plan. The primary focus
of the industry analysis
is to provide sufficient
knowledge of the
environment that can
affect marketing
strategy decision

INDUSTRY ANALYSIS:
This market research
may add important
valuable insights that
can assist the
entrepreneur in
determining the most
effective market
position, setting market
goals, objectives and
determining what action
programs are necessary
to meet those goals and
objectives.

COMPETITOR ANALYSIS
The entrepreneur should begin
this step by first documenting the
current strategy of each primary
competitor. The information on
competitors can be gathered initially
by using as much public information
as possible and the complementing
this with a marketing research
project.
Newspaper articles, web sites,
catalogs, promotions, interviews
with distributors and customers, and
any other marketing strategy or
company information available
should be reviewed.

MARKETING RESEARCH FOR THE

NEW VENTURE:
Information for developing the marketing
plan may necessitate conducting some
marketing research. Marketing research
involves the gathering of data 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, since marketing
research costs vary significantly, the
entrepreneur will need to assess available
resources and the information needed.

STEP 1: DEFINING THE PURPOSE

OF THE STUDY
The most effective way to begin
is for the entrepreneur to sit
down and make a list of the
information that will be needed
to prepare the marketing plan.

For example, the

entrepreneur may think there
is a market for his or her
product but not be sure who
the customers will be or even
whether the product is
appropriate in its present
form.

STEP 1: DEFINING THE PURPOSE

OF THE STUDY
One objective would be to ask people what
they think of a product or service and
whether they would buy it, and to collect
some background demographics and
attitudes of these individuals. This would
satisfy the objective or problem that the
entrepreneur. Other objectives may be to
determine the following:
How much would potential customers be
willing to pay for the product or service?
Where would potential customers prefer to
purchase the product or service?
Where would the customer expect to hear
about or learn about such a product or
service?

STEP 2: GATHERING DATA FROM

SECONDARY SOURCES
Secondary sources, offer a means
of gathering information for the
industry analysis section of the
business plan. There are many
other market research secondary
sources that may be used to
address the specific objectives of
the project identified in step one.
As mentioned, trade magazines,
newspaper articles, libraries,
government agencies, and the
internet can provide much
information on the industry market
and competitors.

STEP 3: GATHERING INFORMATION

FROM PRIMARY SOURCES
Information that is new primary
data. Gathering primary data
involves a data collection procedure
such as observation, networking,
interviewing, focus groups, or
experimentation and usually a data
collection instrument, such as
questionnaire.
Observation is the simplest approach.
The entrepreneur might observe
potential customers and record some
aspect of their buying behaviour.

STEP 3: GATHERING INFORMATION

FROM PRIMARY SOURCES
Interviewing or surveying is
the most common approach
used to gather market
information. It is more
expensive that observation
but is more likely to generate
more meaningful information.
Interviews may be conducted in
person, by telephone, through
the mail or online, an approach
growing in popularity ,
particularly for firms with an
existing customer base

STEP 4: ANALYZING AND

INTERPRETING RESULTS
Depending on the size of the sample, the
entrepreneur can hand tabulate the results or enter
them on a computer. In other case, the results
should be evaluated and interpreted in response to
the research objectives that were specified in the
first step of the research process. Often,
summarizing the answers to questions will give
some preliminary insights.

UNDERSTANDING THE
MARKETING PLAN
Once the entrepreneur has
gathered all the necessary
information, he or she can
sit down to prepare the
marketing plan.
The marketing plan
represents a significant
element in the business
plan for a new venture. It
serves a number of
important functions or
purposes

UNDERSTANDING THE
MARKETING PLAN
It is designed to provide answers to
these basic questions:

Where have we been?

Where do we want to go?
How do we get there?

CHARACTERISTICS OF A
MARKETING PLAN
The marketing plan should
be designed to meet certain
criteria. Some important
characteristics that must be
incorporated in an effective
marketing plan are as
follows:
It should provide a strategy
for accomplishing the
company mission or goal
It should be based on facts
and valid assumptions.

CHARACTERISTICS OF A
MARKETING PLAN
Allocation of all equipment, financial resources, and human resources
must be described.
An appropriate organization must be described to implement the
marketing plan
It should provide for continuity so that each annual marketing plan can
build on it, successfully meeting longer term goals and objectives.
It should be simple and short. A voluminous plan will be placed in a
desk drawer and likely never used. However, the plan should not be so
short that details on how to accomplish goals are excluded.
The success of the plan may depend on its flexibility. changes, if
necessary, should be incorporated by including what-if scenarios and
appropriate responding strategies.
It should specify performance criteria that will be monitored and
controlled.

FACTS NEEDED FOR MARKETING

PLAN:
Who are the users, where they are
located, how much do they buy,
from whom do they buy and why?
How have promotions and
advertising been employed and
which approach has been most
effective?
What are the pricing changes in the
market, who has initiated theses
changes, and why?
What are the markets attitudes
concerning competitive products?

FACTS NEEDED FOR MARKETING

PLAN:
Who are the competitors, where they
are located, and what advantages/
disadvantages do they have?
What marketing techniques are used
by the most successful competitors?
By the least successful?
What are the overall objectives of
the company for the next years and
five years hence?
What are the companys strengths
and weaknesses?
What are the ones productions and
capabilities by product?

FACTS NEEDED FOR MARKETING

PLAN:
In addition to the external
environmental factors, there are
internal environmental factors which,
although more controllable by the
entrepreneur, can also affect the
preparation of the marketing plan
and implementations of an effective
marketing strategy. Some of the
major internal variables are as
follows:

FACTS NEEDED FOR MARKETING

PLAN:
FINANCIAL RESOURCES:
The financial plan, should outline the
financial needs for the new venture. Any
marketing plan or strategies should
consider the availability of financial
resources as well as the amount of funds
needed to meet the goals and objectives
stated in the plan.

FACTS NEEDED FOR MARKETING

PLAN:
MANAGEMENT PLAN:
It is extremely important in any organization to
make appropriate assignments of responsibility
for the implementation of the marketing plan. In
some cases, the availability of a certain
expertise may be uncontrollable. In any event,
the entrepreneur must build an effective
management team and assign the
responsibilities to implement the marketing plan.

FACTS NEEDED FOR MARKETING

PLAN:

SUPPLIERS
The suppliers used are generally based on the number
of factors such as price, delivery time, quality and
management assistance. In some cases, where raw
materials are scarce or there are only few suppliers of
a particular raw material or part, the entrepreneur has
little control over the decision. Since the price of
supplies, delivery time, and so on, are likely to impact
many marketing decisions, it is important to
incorporate these factors into the marketing plan.

FACTS NEEDED FOR MARKETING

PLAN:
COMPANY MISSION
Every new venture should define the nature of its
business. This statement helps to define the
companys mission and basically describes the
nature of the business and what the entrepreneur
hopes to accomplish with that business. This
mission statement or business definition will guide
the firm through long term decision making.

THE MARKETING MIX:

The preceding environmental
variables will provide much
important information in
deciding what will be the most
effective marketing strategy to
be outlined in the marketing
plan.
The actual short term marketing
decisions in the marketing plan
will consists of four important
marketing variables: product or
services, pricing, distribution and
promotion. These four factors are
referred as the marketing mix.

CRITICAL DECISIONS FOR MARKETING MIX:

PRODUCT:
Quality of components or materials, or style,
features, options, brand names, packaging, sizes,
service availability and warranties.
PRICE:
Quality image, list price, quantity, discounts,
allowances, for quick payment, credit terms, and
payment period

CRITICAL DECISIONS FOR MARKETING MIX:

CHANNELS OF DISTRIBUTION:
Use of wholesalers 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 and media interest
in publicity

STEPS IN PREPARING
MARKETING PLAN:
Illustrates the various stages
involved in preparing the marketing
plan. Each of these stages, when
completed, will provide the
necessary information to formally
prepare the marketing plan

DEFINING THE BUSINESS SITUATION:

The situation analysis is a review of where we
have been. It also considers many of the
factors that were defined in both the
environmental analysis section of the business
plan and the industry analysis At this point, the
entrepreneur should simply review some of the
key elements of this section to help provide a
context for the marketing segmentation and
actions that will be stated in this section of the
business plan.

DEFINING THE TARGET

MARKET:
Either from the industry
analysis or from the
marketing research done,
the entrepreneur should
have a good idea of who
the customer or target
market will be.
Knowledge of the target
market provides a basis for
determining the appropriate
marketing action strategy
that will effectively meet its
need.

 MARKET SEGMENTATION: is the process of

dividing the market into small homogenous
groups. Market segmentation allows the
entrepreneur to more effectively respond to
the needs of more homogenous consumers.
Otherwise the entrepreneur would have to
identify a product or service that would meet
the needs of everyone in the marketplace.

CONSIDERING STRENGTHS AND

WEAKNESSES:
It is important for the entrepreneur to
consider strengths and weaknesses
in the target market.

ESTABLISHING GOALS AND OBJECTIVES:

Before any marketing strategy decisions can be
outlined, the entrepreneur must established
realistic and specific goals and objectives.
These marketing goals and objectives respond to the
questions where do we want to go and should
specify things such as market share, profit, sales,
market penetration, number of distributors,
awareness level, new product launching, pricing
policy, sales promotion, and advertising support.

DEFINING MARKETING STRATEGY AND

ACTION PROGRAMS:
Once the marketing goals and objectives
have been established, the entrepreneur
can begin to develop the marketing strategy
and action plan to achieve them. These
strategy and action decisions respond to the
question how do we get there

DEFINING MARKETING
STRATEGY AND ACTION
PROGRAMS:
PRODUCT OR SERVICE
PRICING
COSTS
MARKUPS AND MARGINS
COMPETITION
DISTRIBUTION

MARKETING STRATEGY: CONSUMER

VERSUS BUSINESS-TO-BUSINESS
MARKETS
Marketing strategy decisions for a
consumer product may be very different
from the decisions for a business to
business product. In business to business
markets, the entrepreneur sells the product
or service to another business that uses the
product or service as part of its operations.

SUMMARY:
The marketing strategy section or action
plan describes how to achieve the goals and
objectives already defined. There may be
alternative marketing approaches that could
be uses to defined goals. The use of creative
strategies such as internet marketing may
give the entrepreneur a more effective entry
into the market.
The action programs should be also assigned
to someone to ensure their implementation.
If the plan has been detailed, the
entrepreneur should be able to assign some
costs and budgets for implementing the
marketing plan. During the year, the market
signals will provide the entrepreneur with the
opportunity to modify the plan or develop a
contingency plan.

BUDGETING THE MARKETING STRATEGY:

Effective planning decisions must also
consider the costs involved in the
implementation of these decisions. If the
entrepreneur has follow the procedures of
detailing the strategies and action programs
to meet the desired goals and objectives
costs. It should be reasonably clear.

IMPLEMENTATION OF THE MARKET

PLAN:

The marketing plan is the meant to

be a commitment by the
entrepreneur to a specific strategy
that it is not a formality that serves
as a superficial document to outside
financial supporters or suppliers that
it is meant to be a formal vehicle for
answering questions earlier.

MONITORING THE PROGRESS OF MARKETING THE

ACTIONS:
Generally, monitoring of the plan that involves tracking
the specific results of the marketing effort. Sales data by
the product, territory, sales rep, and outlet are few of
the specific results that should be monitored. What is
monitored is dependent on the specific goals and
objectives outlined earlier in the marketing plan. That
any weak signals from the monitoring process will
provide the entrepreneur with the opportunity to
redirect or modify the existing marketing effort to allow
the firm to achieve its initial goals and objectives.

A GOAL
WITHOUT A
PLAN IS JUST A
WISH