More than the skills and the experience they bring. It is imperative that they share the vision and plan of the Entrepreneur.
Legal forms of Business – on ownership lines….
Decisions for deciding forms of ownership
Liability of owners
Costs of starting a business
Continuity of business
Transferability of interest
Distribution of profits and losses
Attractiveness of raising capital
Building a management team and a successful organization culture
Appointment of board of directors
Appointment of board of advisors
The Marketing Plan
A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.
The Marketing plan needs to answer these questions:
-What are your business marketing goals ?
-What is your target audience ?
- Deciding business marketing system
A basic marketing plan begins with SWOT analysis about your company and the SWOT should be :
A summary of the key elements in your business
Brief, concise and interesting, without being too abbreviated
Focused on the real issues facing your company
Action-oriented, so that positive proposals can be envisaged
Strengths - You can bank upon these.
Weaknesses - Definitely need to be corrected
Opportunities - Help you in setting the target where you want to reach.
Threats - Make necessary contingency plan to combat threats which would automatically become a part of the marketing plan.
Scope of Marketing Research
Identifying Target Market
Identifying Market Characteristics
Measurement of Marketing Potential
Identify and forecast Business Trends
New Product/Service Acceptance and Potential
Long Range Forecasting of Marketing Mix Variables
Pricing Strategies and Studies
How to collect certain information about your customers, market and competitors?????
This information tells you about your potential market, prices, trends, competition, target customer, its preferences, income, habits, accessibility, convenient time and plans.
This information should be accurate, and reliable to help you make the right business decision.
Step One : Defining the Purpose or Objectives
Ask people what they think of the product or service and collect some background demographics & attitudes of these individuals.
How much potential customers would be willing to pay for the product or service.
Where potential customers would prefer to purchase the product or service.
Where the customer would expect to hear about or learn about such a product or service.
Step Two: Gathering Data from Secondary Sources
Data that already exists i.e information from
The entrepreneur should exhaust all possible secondary data sources, observation, and networking before beginning any more costly primary data research.
Step Three: Gathering Information from Primary Sources
Information that is new is Primary data and involves data collection procedures like
Data collection is done with the help of Data Instruments like Questionnaire.
. Step Four: Analyzing & Interpreting the results
The results should be evaluated and interpreted in response to the research objectives. The data can then be cross tabulated to give better insights and interpretations regarding the segmentation of the market.
Marketing Research – Analyse Complexity of Buying Behaviour CULTURAL BELIEFS & VALUES, LIFE STYLES SOCIOLOGICAL SOCIAL CLASS, STRUCTURE FAMILY/GROUP INFLUENCE,LIFE CYCLE, OPINION LEADERSHIP ECONOMIC PRICE, DELIVERY, PAYMENT TERMS, SALES SERVICE INDIVIDUAL PSYCHOLOGICALFACTORS COGNITION, LEARNING PROCESSES, INTERPERSONAL RESPONSE, ATTITUDES MOTIVATION, PERSONALITY THEORIES BUYING PROPOSITION PRODUCT OR SERVICE
Understanding Consumer Characteristics CHARACTERISTICS Innovators 2-3% Early Adopters 12-15% Early Majority 33% Late Majority 34% Laggards 12-15% PERSONAL Social, Income, Occupation, Education, Housing, Family Influence, Time orientation PSYCHOLOGICAL Nature of needs, Perceptions, Self-concept, Aspiration Groups, Reference Groups
Changing Priorities Stage Priorities Major Purchases Fledging : Teens & early 20s Self,Socialising, Education Appearance Products, Clothing, Automobiles, Recreation, Hobbies, Travel Courting :20s Self & Other, Pair bonding,Career Furniture & Furnishing, Entertainment, Savings Nest Building:20s &early 30s Babies & Career Home, Garden,,Baby Care products, insurnce Full Nest 30-50s Children, Career, Midlife crisis Children Food, clothing, education, transportation, life counseling Empty Nest 50-70 Self & others, relaxation Furniture, Entertainment, Travel, Hobbies, Luxury Automobiles, Investments Sole survivor 70-90 Self, health,loneliness Health care , Diet, Security, Comfort, TV, Books, Long distance telephone services
Analyse Target Market OCCUPANTS WHO SERVICES WHAT OCCASION WHEN ORGANISATION WHO IS INVOLVED OBJECTIVES WHY OPERATION HOW
Marketing Strategy to be Based on
WHO MAKES THE BUYING DECISIONS
Characteristics of a Marketing Plan
Should provide a strategy for accomplishing company goals and missions
Should be based on facts and valid assumptions
Should provide for continuity so that future plans can be built on it for long-term goals
Should be simple and short
Should be flexible i.e. should provide scope for inclusion of “what if” scenarios
Should specify performance criteria that will be monitored and controlled
Why some Plans fail ?
Lack of a real plan (particularly regarding goals & objectives)
Inadequate situational analysis – There is no point in deciding where you want to go if you do not know “ where you are?” and “ where you have been? ”
Lack of Goal Clarity and Unrealistic Goals – This generally happens due to lack of understanding of the situation.
Unexpected competitive moves, product deficiencies, Delay in Getting Finance, and acts of God.