Entrepreneurial

1. • MARKETING
PLAN
• INTRODUCING
NEW PRODUCTS

2. MARKETING PLAN
A marketing plan is an outline of actions designed to
achieve a specific seat of goals. It should be based
on available resources. Likewise, a marketing plan
must be compatible with marketing resources and the
external environment of the enterprise. The latter
greatly affects – and in most cases uncontrollably –
marketing operations. The external environment
consist of:

3. The external environment consist of:
Economic forces – such as
inflation and unemployment
which directly influence the
purchasing power of the
consumers. For instance,
when prices are high, people
can only buy a lesser number
of goods and services.

4. The external environment consist of:
Societal Forces- like social
and cultural values and
traditions that greatly affect
the choices of goods and
services by consumers.

5. The external environment consist of:
Political forces– in the form of
government laws and policies
that regulate marketing
activities. These can be
favorable or unfavorable.

6. The external environment consist of:
Technological forces– such
as new methods and new
machines can be both
positive and negative to
marketing.

7. Developing marketing Plan
Assess the marketing environment:
- Present and potential market
- Marketing programs/strategies
- Availability of resources

8. Developing marketing Plan
Formulate specific marketing objectives:
- Reasonable
- Realistic
- Relevant to firm’s goals

9. Developing marketing Plan
Choose a target market with strategies on:
- Product
- Pricing
- Promotion
- Distribution

10. Developing marketing Plan
Monitor and evaluate the operations of the marketing
program through:
- Marketing research
- Marketing information system (computer-
based)

11. Why Do Consumers Buy?
As an entrepreneur, you should know the reasons why
people buy a certain product or service. Such
knowledge provides you with not only a competitive
advantage, but also an opportunity to increase your
sales. People have various needs. Naturally, they like
to satisfy such needs created by economic, social,
educational, and cultural influences.

12. People buy a certain product for the following
reasons
The product satisfies their basic needs. All basic
needs like food, clothing, shelter, transportation,
,medicare, and education.

13. People buy a certain product for the following
reasons
The product gives them convenience. Examples
of these products are washing machines, vacuum
cleaners and other tools and appliances.

14. People buy a certain product for the following
reasons
The product provides a future – People buy
products for investment purposes, like stamps,
paintings, coins and other antiques. They also
buy stocks and bonds of stable corporations
hoping to get more incomes in the near future.

15. People buy a certain product for the following
reasons
The product offers fame– Not few people buy
products not for their uses but for their status
symbol.

16. People buy a certain product for the following
reasons
The product protects them– People buy health, life
and fire insurance for protection. They also buy
alarm and safety devices for protection against
thieves.

17. INTRODUCING NEW PRODUCTS
Products have their life cycles, from
introduction to growth and maturity, and finally
to decline. Because of this nature of product
life, there is a need to introduce new products
or improved products.

18. Here are the main reasons of new
product failures:
1. Inadequate market analysis about market needs and size
2. Product defects such as poor quality and design
3. Underestimated costs resulting in higher prices.
4. Poor timing in developing the product
5. Competitors driving away from the new products with lower
prices.
6. Weak sales force for lack of training and motivation
7. Wrong channel of distribution.

19. Promotions
The two most widely methods of promotion
are advertising and personal selling. Advertising
utilizes the media: newspapers, magazine, radio,
television, billboard, mail, and yellow pages.
Personal selling is done on a person-to-person
basis with a customer.

20. Distribution Channels
Products move from the producer to the
consumer either directly or indirectly. If it is direct,
producers deliver the goods to the consumers. If it
is indirect, a middleman sells the goods to the final
users.

21. Pricing Strategies
Price is the value or service expressed in
money. In our capitalist economy, price
allocates goods and services. Those who
have more money acquire more goods and
services.

22. Prestige price – A very high price is set to
project an aura of quality and status.
Penetration pricing – A very low price for the
new product is offered. The objective is to
develop a large market for the new product as
soon as possible.