This document outlines the steps and components of preparing a marketing plan for a small business. The 9 steps are: 1) setting marketing objectives, 2) determining product/service, 3) identifying target market, 4) analyzing market trends and size, 5) assessing competition, 6) forecasting sales, 7) developing marketing strategy, 8) planning marketing personnel, and 9) preparing a marketing budget. Key marketing strategies include product, pricing, placement, and promotion strategies. The marketing plan helps entrepreneurs evaluate market acceptance, develop marketing strategies, and estimate required resources.

1. MARKETING PLAN Dr. Zarina Salleh Hjh. Zanariah Zainal Abidin

2. LEARNING OUTCOME Understand the importance of preparing a marketing plan Describe the steps in preparing a marketing plan Identify components of a marketing plan Prepare a marketing plan for a small business

3. Module Outline Introduction Steps in Preparing a Marketing Plan for Small Businesses. Marketing Objectives Product or Service Target Market Market Trend and Market Size Competition Sales Forecast Marketing Strategy Marketing Personnel Marketing Budget

4. Introduction A well prepared marketing plan helps entrepreneurs to: evaluate market acceptance develop strategies to market products or services of the business identify required resources to execute the marketing strategy estimate marketing financial requirement

5. Steps in Preparing a Marketing Plan Setting Marketing Objectives Determining product or service 3. Identifying target market 4. Analyzing market trend and size 5. Assessing competition 6. Forecasting sales 7. Developing marketing strategy 8. Planning for marketing personnel 9. Preparing marketing budget

6. 1. Setting Marketing Objectives: New business: Introduce new products/services Estimate market acceptance and sales Existing business Introduce new products/services Inform market of product improvement Enter new market Increase sales of existing products Increase market share Market penetration Regain market for existing product

7. 2. Determining product or service Needs & wants of customers Marketability of a product or service Guide in describing product or services State clearly the value and benefits of product or service to customers. Capitalize on the uniqueness or strengths of the product or services such as on its formulation, ingredients used, safety, ease of use, life span, flexibility, assortment, location, operation hours, personalization, extended warranty etc.

8. 3. Identifying target market Who is the consumer of the product or service? What is their common needs or wants that would be satisfied by the product or service? What is their common characteristics?

9. Target Market Alternatives Segmented Marketing target several or a particular market segments design separate offers for each segment Niche Marketing: Targeting a large share of one or a few segments or niches Micromarketing: Tailoring products to suit the tastes of specific individuals and locations

10. Target Market Alternatives Mass-Marketing ignoring market segment differences go after the whole market with one offer

11. Common Bases For Segmentation Demographic Segmentation Psychographic Segmentation Behavioral Segmentation Occasions Benefits Sought User Status Usage Rate Loyalty Status

12. 4. Analyzing Market Trend and Market Size What is the trend in the market? What is market potential? Size of the market - what is the RM value? Customer profiles of relevant market segments.

13. Market Size : - Total potential purchase of target market - Should be translated into monetary value - Growing, remain the same or shrinking Market Share : a comparative measure to assess performance against the competition

14. 5. Assessing Competition Identify Competitors Assess their market positions and strategies i.e.; product quality, pricing, distribution and promotion Strengths and weaknesses Duration in market Customers

15. 6. Forecasting Sales Past performance Break-even – to set the minimum Secured projects On-going contracts Anticipated or intended growth

16. 7. Developing Marketing Strategy To enable business to plan for its limited resources in order to achieve stated marketing objectives The key idea is to deliver customer satisfaction yet provide business with a competitive advantage

17. Marketing Strategy Product Strategy Pricing Strategy Place or Distribution Strategy Promotion Strategy

18. Product Strategy Include product and service strategy Product is a physical item that can be seen, owned, used or consumed Ideas and creations of the minds can also be regarded as product Service is intangible and cannot be seen or owned, but is useful, can be experienced and able to satisfy customer needs and wants Product strategy refers to a product, service or a combination of both

19. Product attributes Quality Design Trade name Brand name Packaging Labeling Warranty After sales service Product Strategy

20. Marketing Strategies for Services Service quality consistency Service package Combination of services at competitive price Service differentiation Offering that is unique and can be differentiated from the competitors After sales services Follow-up

21. Pricing Strategy Price is the value exchanged between the seller and the buyer in order for the buyer to possess, use or experience the product or service offered Most often, price is in the form of monetary value paid by the buyer to obtain the product or service

22. Common Pricing Methods: Based on Cost Fixed Cost + Variable Cost + Desired Margin Based on Perceived Value Based on Competition Pricing Strategy

23. Pricing Tactics Price lining Discounting Purchase with purchase Psychological pricing Captive pricing Product bundle pricing Segmentation pricing

24. Factors to Consider When Setting Price Marketing objectives Demand and supply Competitor’s pricing

25. Place or Distribution Strategy Place strategy refers to the decision made on the location of the business Choice of location is crucial for most brick and mortar businesses Channel of distribution is a network developed to ensure product or services reach target consumers Distribution strategy for consumer product and industrial product may vary

26. Distribution Strategy Manufacturer/Producer Wholesaler Retailer Retailer Wholesaler Consumer E-Intermediaries

27. Factors to Consider When Determining Distribution Strategy Type of product Target market Market coverage Transportation ease Product standardization

28. Promotion Strategy Promotion is any coordinated effort taken to supplement the product, price and place strategies in order to achieve marketing objectives.

29. Advertising Sales promotion Personal Selling Publicity Promotion Strategy

30. Channel of adverting: Printed Newspaper Magazines Yellow pages Brochures Business cards Electronic and Digital Television Radio Internet Sort messaging system Promotion Strategy Advertising Paid, non personal sales effort through a medium to influence a large number of consumers. Outdoor Billboards Banners Transportation

31. Sales promotion Promotional activities or incentives carried out or offered within a set time frame to influence purchase Common sales promotion strategies: Rebates Coupons Purchase-with-purchase Samples Premiums Contest Rebates Point-of-purchase promotion Sweepstakes Free delivery Extended warranty Promotion Strategy

32. Personal Selling Personal sales presentation conducted by a trained sales person to influence potential customers. It is most often used for products that require demonstration or explanation Publicity Efforts taken to develop and maintain good relationship with the public to ensure good favorable public image of the business. Promotion Strategy

33. 8. Planning For Marketing Personnel Determine number of supporting personnel needed to undertake the marketing tasks – in-house or outsource? Examples: Marketing manager or executives Sales personnel Promotion personnel Distribution personnel

34. 9. Preparing Marketing Budget Marketing budget refers to expenses incurred in planning for the marketing aspect of the proposed business or project. It consists of 3 components. 1. Investment on fixed assets Allocation for working capital for marketing activities Other marketing expenses

35. END OF MODULE 8

36. Marketing Budget Table 5,000 5,000 4,000 Total (RM) 5,000 3,000 1,500 500 4,000 Fixed Asset Signboard Working Capital Salary/EPF/SOCSO Marketing Manager Sales Consultant Promotion Lain-Lain Grand Opening Other Expenses (RM) Working Capital (RM) Fixed Asset (RM) Items