The document discusses key components of an effective marketing plan, including conducting industry and competitor analyses, gathering market research through primary and secondary sources, and determining marketing objectives and strategies. A marketing plan should answer questions about a company's past marketing performance, future goals, and specific strategies to achieve those goals. It should be based on facts, describe how the plan will be implemented, provide continuity, and specify metrics to monitor performance. The marketing mix section notes that an effective plan will outline product, pricing, distribution, and promotion strategies.

1. 9/14/2010 8:03:52 PMby Dr.Rajesh Patel, Director1Marketing Plan

2. 9/14/2010 8:03:52 PMby Dr.Rajesh Patel, Director2A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

3. 9/14/2010 8:03:55 PMby Dr.Rajesh Patel, Director3A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors:Description of the product or service, including special features.Marketing budget, including the advertising and promotional planDescription of the business location, including advantages and disadvantages for marketing Pricing strategyMarket Segmentation

4. 9/14/2010 8:04:02 PMby Dr.Rajesh Patel, Director4I. INDUSTRY ANALYSIS A. The industry analysis section of the business plan is completed prior to the preparation of the marketing plan. 1. The primary focus of the industry analysis is to provide sufficient knowledge of the environment that can affect marketing strategy decision making. 2. It begins with the broadest based assessment of environmental and industry trends then proceeds to more local market trends. 3. Secondary sources can provide much of the information needed. 4. To secure more specific information the entrepreneur may also want to undertake a market research initiative. 5. The upside down pyramid approach to industry analysis helps the entrepreneur understand the competitor strengths and weaknesses.

5. 9/14/2010 8:04:07 PMby Dr.Rajesh Patel, Director5 Competitor Analysis. 1. This step begins with documenting the current strategy. a. This information can be gathered using as much public information as possible then complementing this with a marketing research project. b. Articles on competitors can be found using a computer search. c. These articles should be scanned to identify names of individuals who can be contacted for further information. 2. All of this information can then be utilized to formulate the market positioning strategy of the new venture.

6. 9/14/2010 8:04:11 PMby Dr.Rajesh Patel, Director6MARKET RESEARCH FOR THE NEW VENTURE

7. 9/14/2010 8:04:12 PMby Dr.Rajesh Patel, Director71. Marketing research involves the gathering of data in order to determine such information as: a. Who will buy the product? b. What price should be charged? c. What is the most effectivepromotion strategy?

8. 9/14/2010 8:04:15 PMby Dr.Rajesh Patel, Director82. Marketing research may be conducted by the entrepreneur or by an external supplier or consultant.

9. 9/14/2010 8:04:21 PMby Dr.Rajesh Patel, Director9Step 1:Defining the Purpose or Objectives. 1. One effective way to begin the marketing plan is to make a list of the information that will be needed to prepare the marketing plan. 2. Possible objectives: a. Determine what people think of the product or service and if they would buy it. b. Determine how much customers would be willing to pay for the product or service. c. Determine where the customer would

10. 9/14/2010 8:04:23 PMby Dr.Rajesh Patel, Director10Step 2:Gathering Data from Secondary Sources. 1. Secondary sources such as trade magazines, newspaper articles, and government agencies can provide information on the industry market and competition. 2. The Internet can be used to gather informal primary data through chat groups. 3. Commercial data may also be available, but the cost may be prohibitive. 4. Free secondary information is available through: a. The U.S. Bureau of Census and the Department of Commerce. b. State Departments of Commerce, Chambers of Commerce, and local banks. c. Private sources of data, such as Reuters Business Insight, Dun and Bradstreet’s Million Dollar Directory, and the SBA’s Directory of Business Development Publications, can be found in a good business library.

11. 9/14/2010 8:04:24 PMby Dr.Rajesh Patel, Director11:Gathering Information from Primary Sources.a. Networking, an informal method to gather primary data from experts in the field, can be a valuable low-cost research method.b. One study of new ventures found that the most successful ventures were focused on information about competitors, the customer, and the industry.c. Less successful ventures were more focused on gathering information on general economic and demographic trends. 3. Interviewing or surveyingis the most common approach; it is more expensive, but more likely to generate meaningful information.4.The questionnaireused by the entrepreneur should include questions designed to fulfill one or more of the objectives of the entrepreneur.a.Questionsshould be designed so they are clear and concise, without bias, and easy to answer.b. If the entrepreneur has no experience in designing questionnaires, they should seek assistance for this important step.5. Focus groups.a. A focus group is a sample of 10 or 12 potential customers who participate in a discussion.b.Groupsdiscuss issues in an informal, open format.c.Thesegroups should be led by an experienced monitor or by someone other than the entrepreneur.

12. 9/14/2010 8:04:24 PMby Dr.Rajesh Patel, Director12Step 4:Analyzing and Interpreting the Results:1. The entrepreneur can enter the results on a computer or hand tabulate the results.2.Summarizing the answers to questions will give preliminary insights.3.Data can then be cross tabulated to provide more focused results.

13. 9/14/2010 8:04:25 PMby Dr.Rajesh Patel, Director13III. UNDERSTANDING THE MARKETING PLAN A. The marketing plan serves a number of important functions or purposes.1.It establishes how the entrepreneur will compete and operate in the marketplace. 2. Once the strategies have been established, the entrepreneur can assign costs to these strategies.

14. 9/14/2010 8:04:25 PMby Dr.Rajesh Patel, Director14The marketing plan should answer three basic questions:1. Where have we been?—The history of the marketplace, marketing strengths and weaknesses, and market opportunities and threats.2. Where do we want to go in the (short term)?—Marketing objectives and goals of the new venture in the next twelve months.3. How do we get there?—Specific marketing strategy that will be implemented. C. The marketing plan should be a guide for implementing marketing decision making and not a superficial document. D. Organizing the thinking process in order preparing a marketing plan helps in understanding and recognizing critical issues.

15. 9/14/2010 8:04:26 PMby Dr.Rajesh Patel, Director15CHARACTERISTICS OF AMARKETING PLAN

16. 9/14/2010 8:04:27 PMby Dr.Rajesh Patel, Director161. Provide a strategy to accomplish the company mission.

17. 9/14/2010 8:04:28 PMby Dr.Rajesh Patel, Director172. Be based on facts and valid assumptions.

18. 9/14/2010 8:04:31 PMby Dr.Rajesh Patel, Director183.Describe an organization to implement the plan.

19. 9/14/2010 8:04:33 PMby Dr.Rajesh Patel, Director194. Provide for continuity.78

20. 9/14/2010 8:04:33 PMby Dr.Rajesh Patel, Director205.Be simple and short.

21. 9/14/2010 8:04:34 PMby Dr.Rajesh Patel, Director216. Be flexible.

22. 9/14/2010 8:04:34 PMby Dr.Rajesh Patel, Director227. Specify performance criteria that can be monitored and controlled.

23. 9/14/2010 8:04:35 PMby Dr.Rajesh Patel, Director23THE MARKETING MIX

24. 9/14/2010 8:04:36 PMby Dr.Rajesh Patel, Director24A. The actual short-term marketing decisions in the marketing plan will consist of four important marketing variables, called the marketing mix: 1. Product or service. 2. Pricing. 3. Distribution. 4. Promotion.

25. 9/14/2010 8:04:37 PMby Dr.Rajesh Patel, Director25

26. 9/14/2010 8:04:39 PMby Dr.Rajesh Patel, Director26