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  1. 1. The Marketing Plan Part 3 Developing the New Venture Business Plan
  2. 2. Looking Ahead <ul><li>After studying this chapter, you should be able to: </li></ul><ul><li>Describe small business marketing. </li></ul><ul><li>Identify the components of a formal marketing plan. </li></ul><ul><li>Discuss the nature of the marketing research process. </li></ul><ul><li>Define market segmentation and its related strategies. </li></ul><ul><li>Explain the different methods of forecasting sales. </li></ul>
  3. 3. What is Small Business Marketing? <ul><li>What is marketing? </li></ul><ul><ul><li>simply selling a product or service? </li></ul></ul><ul><ul><li>activities that direct the flow of goods and services from producer to consumer or user? </li></ul></ul><ul><li>Small business marketing consists of business activities that: </li></ul><ul><ul><li>Identify a target market </li></ul></ul><ul><ul><li>Determine target market potential </li></ul></ul><ul><ul><li>Prepare , communicate , and deliver a bundle of satisfaction to the target market ( customers or users ) </li></ul></ul>
  4. 4. Marketing Philosophies Make a Difference <ul><li>Production -Oriented Philosophy </li></ul><ul><ul><li>Emphasizes development of the product and production efficiencies over other activities </li></ul></ul><ul><li>Sales -Oriented Philosophy </li></ul><ul><ul><li>Favors product sales over production efficiencies and customer preferences </li></ul></ul><ul><li>Consumer -Oriented Philosophy </li></ul><ul><ul><li>All marketing efforts begin and end with the customer; focus is on the consumer’s needs — this philosophy is the most consistent with long-term success of the firm </li></ul></ul>
  5. 5. Why Firms Fail to Adopt a Consumer Orientation <ul><li>The State of Competition </li></ul><ul><ul><li>With no competition or high demand , firms focus on production. </li></ul></ul><ul><li>Production Focus of Small Business Managers </li></ul><ul><ul><li>Small business managers tend to have strong production skills and weak marketing skills . </li></ul></ul><ul><li>Focus on the Present </li></ul><ul><ul><li>Small business managers tend to focus on the need for current success which results in an overemphasis on selling and high-pressure sales tactics. </li></ul></ul>
  6. 6. Strategic Marketing Research Activities <ul><li>Market Analysis </li></ul><ul><ul><li>Activities which locate and describe potential customers. </li></ul></ul><ul><ul><li>An evaluation process that encompasses market segmentation , marketing research , and sales forecasting </li></ul></ul><ul><li>Developing the Marketing Mix (The Four “P’s”) </li></ul><ul><ul><li>The specific product or service , price , promotional approach , and distribution (place) channel(s) to be used for each target market ( customer group ). </li></ul></ul>
  7. 7. The Marketing Plan and Supporting Marketing Activities Exhibit 7.1
  8. 8. The Formal Marketing Plan <ul><li>Market Analysis </li></ul><ul><ul><li>Customer profile </li></ul></ul><ul><ul><ul><li>A description of potential customers in a target market </li></ul></ul></ul><ul><ul><li>Sales forecasts </li></ul></ul><ul><ul><ul><li>Outlook: “most likely,” “pessimistic,” and “optimistic” </li></ul></ul></ul><ul><li>The Competition </li></ul><ul><ul><li>Profile of key management personnel </li></ul></ul><ul><ul><li>Overall strengths and weaknesses </li></ul></ul><ul><ul><li>Related products being marketed or tested </li></ul></ul><ul><ul><li>Likelihood of competitors’ entry into target market </li></ul></ul>
  9. 9. The Formal Marketing Plan (cont’d.) <ul><li>Marketing Strategy (4 “P’s” for each segment) </li></ul><ul><ul><li>Product and/or service section </li></ul></ul><ul><ul><ul><li>Decisions affecting the total product </li></ul></ul></ul><ul><ul><li>Distribution section (Place) </li></ul></ul><ul><ul><ul><li>Decisions regarding product delivery to customers </li></ul></ul></ul><ul><ul><li>Pricing section </li></ul></ul><ul><ul><ul><li>Setting an acceptable value on the product </li></ul></ul></ul><ul><ul><li>Promotional section </li></ul></ul><ul><ul><ul><li>Communicating information to the target market </li></ul></ul></ul>
  10. 10. Analyzing the Competition <ul><li>COMPETITOR ANALYSIS </li></ul><ul><ul><li>Who are your five nearest direct competitors? </li></ul></ul><ul><ul><li>Who are your indirect competitors? </li></ul></ul><ul><ul><li>Is their business growing , steady, or declining ? </li></ul></ul><ul><ul><li>What can you learn from their operations or from their advertising ? </li></ul></ul><ul><ul><li>What are their strengths and weaknesses ? </li></ul></ul><ul><ul><li>How does their product or service differ from yours? </li></ul></ul><ul><li>Gathering information about competitors… </li></ul><ul><ul><li>Internet (…what is on their website?) </li></ul></ul><ul><ul><li>Personal visits (…what do the premises look like? …how are the products displayed and priced?) </li></ul></ul><ul><ul><li>What do your customers say about your competitors? (…ask them!) </li></ul></ul><ul><ul><li>Competitor advertisements </li></ul></ul><ul><ul><li>Trade shows and industry association publications </li></ul></ul><ul><ul><li>Industry surveys and computer databases </li></ul></ul>
  11. 11. The Nature of Marketing Research <ul><li>Marketing Research </li></ul><ul><ul><li>The gathering, processing, reporting, and interpreting of market information </li></ul></ul><ul><li>Outside Sources </li></ul><ul><ul><li>Hiring professional marketing researchers </li></ul></ul><ul><ul><li>Using the Internet for web-based surveys and online focus groups </li></ul></ul>
  12. 12. Marketing Research <ul><li>Can help me answer these important questions : </li></ul><ul><ul><li>Who are my customers and potential customers? </li></ul></ul><ul><ul><li>What kind of people are they? </li></ul></ul><ul><ul><li>Where do they live? </li></ul></ul><ul><ul><li>Can and will they buy? </li></ul></ul><ul><ul><li>Am I offering the goods & services they want? …at the best place and time? …in the right amounts? </li></ul></ul><ul><ul><li>Are my prices consistent with the value buyers attach to my products and/or services? </li></ul></ul><ul><ul><li>Are my promotional plans working? </li></ul></ul><ul><ul><li>What do customers think of my business? </li></ul></ul><ul><ul><li>How does my business compare to my competitors? </li></ul></ul>
  13. 13. The Nature of Marketing Research <ul><li>Steps In the Marketing Research Process </li></ul><ul><ul><li>Identifying the information needed </li></ul></ul><ul><ul><ul><li>Why do we need to know this? </li></ul></ul></ul><ul><ul><li>Searching for secondary data </li></ul></ul><ul><ul><ul><li>Who has researched this topic already? </li></ul></ul></ul><ul><ul><li>Collecting primary data </li></ul></ul><ul><ul><ul><li>Who do we ask and what do we ask them? </li></ul></ul></ul><ul><ul><li>Interpreting the data </li></ul></ul><ul><ul><ul><li>Got the information, now what does it mean? </li></ul></ul></ul>
  14. 14. Methods for Collecting Primary Data <ul><li>Observational Methods </li></ul><ul><ul><li>Human </li></ul></ul><ul><ul><li>Mechanical </li></ul></ul><ul><li>Questioning Methods </li></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><ul><li>Mail </li></ul></ul></ul><ul><ul><ul><li>Telephone </li></ul></ul></ul><ul><ul><li>Personal interviews </li></ul></ul><ul><ul><li>Experiments </li></ul></ul>
  15. 15. Designing and Testing a Questionnaire <ul><li>Ask questions that relate only to the issues of interest. </li></ul><ul><li>Use open-ended and multiple-choice questions. </li></ul><ul><li>Carefully consider the order of the questions to avoid producing biased answers to later questions. </li></ul><ul><li>Ask sensitive questions near the end of the questionnaire. </li></ul><ul><li>Word questions as simply, clearly , and objectively as possible. </li></ul><ul><li>Pre-test the questionnaire on a small representative sample of respondents. </li></ul>
  16. 16. Understanding Potential Target Markets <ul><li>Market </li></ul><ul><ul><li>A group of customers or potential customers who have purchasing power and unsatisfied needs </li></ul></ul><ul><li>Market Segmentation </li></ul><ul><ul><li>The division of a market into several smaller groups with similar needs </li></ul></ul><ul><li>Focus strategy </li></ul><ul><ul><li>A type of competitive strategy in which cost and marketing strategies are achieved within narrow market segments </li></ul></ul>
  17. 17. Ingredients of a Market Ingredient 1 Customers : People or businesses Ingredient 2 Purchasing power: Money/credit Ingredient 3 Unsatisfied needs
  18. 18. Market Segmentation Variables <ul><li>Kinds of segmentation variables </li></ul><ul><ul><li>The parameters used to distinguish one form of market behavior from another for the purpose of market segmentation </li></ul></ul><ul><li>Benefit Variables </li></ul><ul><ul><li>Specific characteristics that distinguish market segments according to the benefit sought (toothpaste used to fight cavities vs fresh breath or white teeth) </li></ul></ul><ul><li>Demographic Variables </li></ul><ul><ul><li>Specific characteristics that describe customers and their purchasing power (age, gender, income level, occupation, etc) </li></ul></ul><ul><li>Geographic Variables </li></ul><ul><ul><li>Where do the customers live? </li></ul></ul>
  19. 19. Types of Market Segmentation Strategies <ul><li>Unsegmented Strategy ( Mass Marketing ) </li></ul><ul><ul><li>A strategy that defines the total market as the target market </li></ul></ul><ul><li>Multisegment Strategy </li></ul><ul><ul><li>A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each </li></ul></ul><ul><li>Single-Segment Strategy </li></ul><ul><ul><li>A strategy that recognizes the existence of several distinct segments but only focuses on the most profitable segment </li></ul></ul>
  20. 20. An Unsegmented Market Strategy Exhibit 7.3
  21. 21. A Multisegment Market Strategy Exhibit 7.4
  22. 22. A Single-Segmentation Market Strategy Exhibit 7.5
  23. 23. Estimating Market Potential <ul><li>The Sales Forecast </li></ul><ul><ul><li>A prediction of how much (in units and/or dollars ) of a product or service will be purchased within a market during a specified period of time </li></ul></ul><ul><ul><ul><li>Assesses the new venture’s feasibility </li></ul></ul></ul><ul><ul><ul><li>Assists in planning for product scheduling, setting inventory levels, and personnel decisions </li></ul></ul></ul><ul><li>Limitations to Forecasting (for Entrepreneurs) </li></ul><ul><ul><li>New business circumstances are unique </li></ul></ul><ul><ul><li>Lack of familiarity with quantitative methods </li></ul></ul><ul><ul><li>Lack of familiarity with the forecasting process </li></ul></ul>
  24. 24. Dimensions of Forecasting Difficulty Exhibit 7.6
  25. 25. The Forecasting Process: Two Dimensions of Forecasting <ul><li>The Starting Point </li></ul><ul><ul><li>Breakdown process (chain-ratio method) </li></ul></ul><ul><ul><ul><li>Forecasting begins with macro-level variable and works down to the sales forecast (top-down). </li></ul></ul></ul><ul><ul><li>Buildup process </li></ul></ul><ul><ul><ul><li>All potential buyers in various submarkets are identified, and then the estimated demand is added up (bottom-up). </li></ul></ul></ul>
  26. 26. Sales Forecasting with the Breakdown Method *Figures in this column, for variables 2–7, are derived by multiplying the percentage or number in the Estimating Value column by the amount on the previous line of the Market Potential column. Exhibit 7.7
  27. 27. The Forecasting Process: Two Dimensions of Forecasting (cont’d.) <ul><li>The Predicting Variable </li></ul><ul><ul><li>Direct forecasting </li></ul></ul><ul><ul><ul><li>The use of sales as the predicting variable </li></ul></ul></ul><ul><ul><li>Indirect forecasting </li></ul></ul><ul><ul><ul><li>Variables related to sales are used as proxies to project future sales </li></ul></ul></ul>
  28. 28. LAYING THE FOUNDATION Marketing Plan Questions… <ul><ul><li>What is the customer profile for your product or service? </li></ul></ul><ul><ul><li>How will you identify prospective customers ? </li></ul></ul><ul><ul><li>What geographic area will you serve ? </li></ul></ul><ul><ul><li>What are the distinguishing characteristics of your product or service? (… what’s unique about your product or service?) </li></ul></ul><ul><ul><li>What steps have already been taken to develop your product or service? </li></ul></ul><ul><ul><li>What do you plan to name your product or service? </li></ul></ul><ul><ul><li>Will there be a warranty ? </li></ul></ul><ul><ul><li>How will you set the price for your product or service? </li></ul></ul><ul><ul><li>What type of distribution plan will you use? </li></ul></ul><ul><ul><li>Will you export from other countries? </li></ul></ul><ul><ul><li>What type of selling effort will you use? </li></ul></ul><ul><ul><li>What special selling skills will be required? </li></ul></ul><ul><ul><li>What types of advertising and sales promotion will you use? </li></ul></ul>
  29. 29. LAYING THE FOUNDATION Marketing Research Questions… <ul><ul><li>What types of research should be conducted to collect the information you will need? </li></ul></ul><ul><ul><li>How much will this research cost ? </li></ul></ul><ul><ul><li>What sources of secondary data will address your information needs? </li></ul></ul><ul><ul><li>What sources of relevant data are available in the library ? </li></ul></ul><ul><ul><li>What data will you need to collect yourself ? (primary data) …and how will you collect it ? </li></ul></ul><ul><ul><li>What sources of outside professional assistance would you consider using to help with marketing research? </li></ul></ul>
  30. 30. LAYING THE FOUNDATION Market Segmentation and Forecasting Questions… <ul><li>Market Segmentation Questions… </li></ul><ul><ul><li>Will you focus on a limited market within the industry? </li></ul></ul><ul><ul><li>Which segmentation variables will you use to define your target market? (… benefit or use ? … demographic ? … geographical ?) </li></ul></ul><ul><ul><li>If you determine that several distinct market segments exist, will you concentrate on just one segment ? …or will your pursue several segments simultaneously ( multi-segment strategy)? </li></ul></ul><ul><li>Forecasting Questions… </li></ul><ul><ul><li>How do you plan to forecast sales for your product or service? (… direct sales ? … units sold ? … indirect or surrogate method?) </li></ul></ul><ul><ul><li>What sources of forecasting assistance have you consulted? </li></ul></ul><ul><ul><li>What sales forecasting techniques are most appropriate to your needs? (… breakdown ? … buildup ?) </li></ul></ul><ul><ul><li>What is the sales forecast for your product or service? </li></ul></ul>
  31. 31. SOAPY RIDES CAR WASH POPULATION ESTIMATES <ul><li>Market Segments 2001 </li></ul><ul><ul><li>New Car Owners 7200 </li></ul></ul><ul><ul><li>Older Luxury Car Owners 12500 </li></ul></ul><ul><ul><li>Sports Car Owners 6500 </li></ul></ul><ul><ul><li>Lifetime Owners 17000 </li></ul></ul><ul><li>Assumptions </li></ul><ul><ul><li>We can attract 10-15% of new car owners to our car wash </li></ul></ul><ul><ul><li>We will get 8-10% of older luxury car owners to use our car wash </li></ul></ul><ul><ul><li>15-20% of sports car owners will regularly use our car wash </li></ul></ul><ul><ul><li>We can attract 6-10% of lifetime owners to use our car wash </li></ul></ul><ul><ul><li>New car owners will wash their car 5-6 times a year at our facility </li></ul></ul><ul><ul><li>Older luxury car owners will wash 4-5 times a year at our wash </li></ul></ul><ul><ul><li>Sports car owners will wash 8-10 times a year at our car wash </li></ul></ul><ul><ul><li>Lifetime owners will wash their car 3-4 times a year at our facility </li></ul></ul>
  32. 32. SOAPY RIDES CAR WASH POPULATION ESTIMATES - 2 <ul><ul><ul><li>POTENTIAL CAR WASH CUSTOMERS </li></ul></ul></ul><ul><li>Market Segments Optimistic Pessimistic Most Likely </li></ul><ul><ul><li>New Car Owners 1080 (15%) 720 (10%) 864 (12%) </li></ul></ul><ul><ul><li>Older Luxury Cars 1250 (10%) 1000 (8%) 1125 (9%) </li></ul></ul><ul><ul><li>Sports Car Owners 1300 (20%) 975 (15%) 1105 (17%) </li></ul></ul><ul><ul><li>Lifetime Owners 1700 (10%) 1020 (6%) 1360 (8%) </li></ul></ul><ul><li>Assumed Number of Car Washes per Year </li></ul><ul><ul><li>New Car Owners 6x1080=6480 5x720=3600 5x864=4320 </li></ul></ul><ul><ul><li>Older Luxury Cars 5x1250=6250 4x1000=4000 5x1125=5625 </li></ul></ul><ul><ul><li>Sports Car Owners 10x1300=13000 8x975=7800 9x1105=9945 </li></ul></ul><ul><ul><li>Lifetime Owners 4x1700=6800 3x1020=3060 4x1360=5440 </li></ul></ul><ul><li>Estimated Washes/Year 32530 18460 25330 </li></ul>
  33. 33. SOAPY RIDES CAR WASH POPULATION ESTIMATES – 3 <ul><ul><ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul></ul></ul><ul><li>Regular Washes/Year 32530 18460 25330 </li></ul><ul><ul><li>Businesses with Fleet Cars/Vans within 5 miles = 10 </li></ul></ul><ul><ul><li>All fleet arrangements will receive ~30% discount off the regular price </li></ul></ul><ul><li>Assumptions About Fleet Washes </li></ul><ul><li>Number of fleets 2 0 1 </li></ul><ul><li>Number of cars/vans 50 0 20 </li></ul><ul><li>Number of washes/yr 8 0 5 </li></ul><ul><li>Estimated Fleet Washes/Yr 400 0 100 </li></ul><ul><li>EST TOTAL WASHES/YR 32930 18460 25430 </li></ul>
  34. 34. SOAPY RIDES CAR WASH REVENUE ESTIMATES - 1 <ul><ul><ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul></ul></ul><ul><li>Regular Washes/Year 32530 18460 25330 </li></ul><ul><li>Estimated Fleet Washes/Yr 400 0 100 </li></ul><ul><li>EST TOTAL WASHES/YR 32930 18460 25430 </li></ul><ul><li>Assumptions About Regular Washes </li></ul><ul><li>Exterior Wash Only 60% 90% 75% </li></ul><ul><li>Full Wash (inside & out) 40% 10% 25% </li></ul><ul><li>Assumptions About Fleet Washes </li></ul><ul><li>Exterior Wash Only 80% 100% 90% </li></ul><ul><li>Full Wash (inside & out) 20% 0 % 10% </li></ul><ul><li>Exterior wash = $10.00 Fleet Exterior Wash = $7.00 </li></ul><ul><li>Full wash = $15.00 Fleet Full Wash = $10.50 </li></ul>
  35. 35. SOAPY RIDES CAR WASH REVENUE ESTIMATES - 2 <ul><ul><ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul></ul></ul><ul><li>Regular Exterior n=? 19518 16614 18998 </li></ul><ul><li>Revenue x $10 $195180 $166140 $189980 </li></ul><ul><li>Regular Full n=? 13012 1846 6332 </li></ul><ul><li>Revenue x $15 $195180 $ 27690 $ 94980 </li></ul><ul><li>Fleet Exterior n=? 320 0 75 </li></ul><ul><li>Revenue x $7 $ 2240 $ 0 $ 525 </li></ul><ul><li>Fleet Full n=? 80 0 25 </li></ul><ul><li>Revenue x $10.50 $ 840 $ 0 $ 262 </li></ul><ul><li>TOTAL REVENUE/YR $393440 $193830 $285747 </li></ul>
  36. 36. SOAPY RIDES CAR WASH EXPENSE ESTIMATES <ul><ul><ul><li>DIRECT LABOR ASSUMPTIONS : </li></ul></ul></ul><ul><li>Workers paid $10/hr x 40 hours x 48 weeks/year plus benefit costs = 40% </li></ul><ul><li>Number of car wash workers needed (5 optimistic /4 most likely /3 pessimistic) </li></ul><ul><li>Cost of 1 car wash worker $2240/mo, $ 26880/yr </li></ul><ul><li>OVERHEAD ASSUMPTIONS : </li></ul><ul><li>Building rent $4000/mo, $48000/yr </li></ul><ul><li>Note on equipment $1000/mo, $12000/yr </li></ul><ul><li>Gas/electricity for dryers/heating $2000/mo, $24000/yr </li></ul><ul><li>Water/sewer $1500/mo, $18000/yr </li></ul><ul><li>Soap and supplies $ 500/mo, $ 6000/yr </li></ul><ul><li>Advertising $ 500/mo, $ 6000/yr </li></ul><ul><li>Insurance $ 500/mo, $ 6000/yr </li></ul><ul><li>Office expenses/phone $ 500/mo, $ 6000/yr </li></ul><ul><li>Manager (25k+44% benefits) $ 3000/mo, $36000/yr </li></ul><ul><li>TOTAL OVERHEAD EXPENSES $13500/MO, $162000/yr </li></ul>
  37. 37. SOAPY RIDES CAR WASH ONLY GAIN/(LOSS) ESTIMATES <ul><ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul></ul><ul><li>REVENUES </li></ul><ul><li>Regular Washes $ 390360 $ 193830 $ 284960 </li></ul><ul><li>Fleet Washes 3080 0 787 </li></ul><ul><li>TOTAL REVENUES $ 393440 $193830 $ 285747 </li></ul><ul><li>EXPENSES </li></ul><ul><li>Car Wash Labor Expense $ 134400 $ 80640 $ 107520 </li></ul><ul><li>Car Wash Overhead Expenses 162000 162000 162000 </li></ul><ul><li>TOTAL EXPENSES $ 296400 $ 242640 $ 269520 </li></ul><ul><li>TOTAL GAIN/(LOSS) Car Wash $ 97040 - $ 48810 $ 16227 </li></ul><ul><li>ESTIMATED TOTAL WASHES/YR 32930 18460 25430 </li></ul>
  38. 38. SOAPY RIDES DETAILING ESTIMATES <ul><ul><li>Serve both the public and new/used car dealerships with quality detailing (cleaning) services. </li></ul></ul><ul><ul><li>There are five new/used dealerships within 3 miles of our facility, and fifteen within 7 miles </li></ul></ul><ul><li>ASSUMPTIONS : OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul><ul><li>Dealers we have agreements with 2 0 1 </li></ul><ul><li>Dealer cars we detail per year 200 0 100 </li></ul><ul><li>Dealer rate = $70 per car </li></ul><ul><li>Regular detailing requests/week 6 1 4 </li></ul><ul><li>Regular detailed cars per year 288 48 192 </li></ul><ul><li>Regular rate = $100 per car </li></ul><ul><li>Detailing takes 3 hours per car </li></ul><ul><li>Workers are paid $12/hr and benefit costs average 39% </li></ul><ul><li>Supplies used = $10 per car </li></ul>
  39. 39. DETAILING REVENUE AND EXPENSE ESTIMATES <ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul><ul><li>Dealer cars detailed per year 200 0 100 </li></ul><ul><li>Dealer revenue (x $70) $ 14000 $ 0 $ 7000 </li></ul><ul><li>Detailing cost (3x$12+39%) - 10000 -- -5000 </li></ul><ul><li>Supplies used (cars x $10) - 2000 -- -1000 </li></ul><ul><li>NET GAIN – Dealer Detailing $ 2000 $ 0 $ 1000 </li></ul><ul><li>Regular detailing requests/week 6 1 4 </li></ul><ul><li>Regular cars detailed per year (x48) 288 48 192 </li></ul><ul><li>Regular revenue (x $100) $28800 $ 4800 $19200 </li></ul><ul><li>Detailing cost (3x$12x39%) - 14400 - 2400 - 9600 </li></ul><ul><li>Supplies used (cars x $10) - 2880 - 480 - 1920 </li></ul><ul><li>NET GAIN – Regular Detailing $11520 $ 1920 $ 7680 </li></ul><ul><li>NET GAIN – TOTAL DETAILING $ 13520 $ 1920 $ 8680 </li></ul>
  40. 40. SOAPY RIDES COMBINED GAIN/(LOSS) ESTIMATES <ul><ul><li> OPTIMISTIC PESSIMISTIC MOST LIKELY </li></ul></ul><ul><li>REVENUES </li></ul><ul><li>Regular Washes $ 390360 $ 193830 $ 284960 </li></ul><ul><li>Fleet Washes 3080 0 787 </li></ul><ul><li>Dealer Detailing 14000 0 7000 </li></ul><ul><li>Regular Detailing 28800 4800 19200 </li></ul><ul><li>TOTAL REVENUES $ 436240 $198630 $ 311947 </li></ul><ul><li>EXPENSES </li></ul><ul><li>Car Wash Labor Expense $ 134400 $ 80640 $ 107520 </li></ul><ul><li>Car Wash Overhead Expenses 162000 162000 162000 </li></ul><ul><li> Dealer Detailing Expenses 12000 0 6000 </li></ul><ul><li>Regular Detailing Expenses 17280 2880 11520 </li></ul><ul><li>TOTAL EXPENSES $ 325680 $ 245520 $ 287040 </li></ul><ul><li>TOTAL GAIN/(LOSS) w/detailing $ 110560 - $ 46890 $ 24907 </li></ul>
  41. 41. Key Terms small business marketing market analysis marketing mix customer profile marketing research secondary data primary data market market segmentation segmentation variables benefit variables demographic variables unsegmented strategy (mass marketing) multisegment strategy single-segment strategy sales forecast breakdown process (chain-ratio method) buildup process direct forecasting indirect forecasting
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