Section Objectives Identify the purpose of the marketing
plan.
Name the five marketing strategies that make up the marketing mix.
Describe the part that marketing tactics play in the marketing
plan. The Main Idea To succeed and grow, a business must have a
marketing plan with realistic objectives, the proper mix of the
five Ps, and an action plan for implementation. Content Vocabulary
marketing plan marketing objectives marketing mix
brand package label product positioning product mix channel of
distribution intermediaries intensive distribution selective
distribution exclusive distribution marketing tactics Forming
Marketing Objectives
Marketing is the process of developing, promoting, and distributing
products to satisfy customers and businesses. The success of a
business is determined in the marketplace. Forming Marketing
Objectives
A convincing marketing plan includes a rationale for your selection
of marketing strategies and tactics. marketing plan a plan used by
a business to guide its marketing process to a desired conclusion
based on information obtained through market research and target
market decisions The Marketing Plan A successful marketing plan
contains specific marketing objectives. marketing objectives what a
business wants to accomplish through its marketing efforts The
Marketing Plan Marketing Objectives
product introduction or innovation team organization sales or
market share Marketing Objectives projected profitability
advertising distribution pricing 8 Developing the Marketing
Mix
Developing a marketing mix enables an entrepreneur to map out how
to accomplish marketing initiatives. marketing mix the five
marketing strategies used to reach a market: product, place, price,
promotion, and people Developing the Marketing Mix
The Five Ps of Marketing P Product P Place P Price Promotion P P
People 10 The Product Strategy The product strategy deals with the
goods or services your business will provide. The Product Strategy
Product considerations include:
features and benefits branding, packaging, and labeling selection
positioning mix The Product Strategy A products brand, package, and
label serve as strategies for maintaining customer loyalty. label
the part of the package used to present information about the
product brand the name, symbol, or design used to identify a
product package the physical container or wrapper used to present
information The Product Strategy Branding, packaging, and labeling
can have a bearing on product positioning. product positioning how
consumers see a product in comparison to another product The
Product Strategy The final consideration in your product strategy
is determining your companys product mix. product mix all of the
products a company makes or sells The Place Strategy The place
strategy deals with how you will deliver your goods and services to
customers. The Place Strategy Place strategy considerations
include:
channels of distribution intensity of distribution transportation
location, layout, and availability The Place Strategy To formulate
a place strategy, the entrepreneur needs to understand the channel
of distribution. channel of distribution the path a product takes
from producer or manufacturer to final user or consumer The Place
Strategy There are two basic types of channels of distribution in
the place strategydirect and indirect. A direct channel moves a
product from producer to customer with no other businesses
involved. The Place Strategy An indirect channel of distribution
employs intermediaries. intermediaries people or businesses that
move products between producers and final users, including
wholesalers, retailers, distributors, and agents Channels of
Distribution
The Place Strategy Channels of Distribution Direct Producer
Consumer Indirect Producer Consumer Intermediary 21 The Place
Strategy There are three ways to distribute a product:
exclusive distribution placement of a product where its number of
sales outlets are limited to one per area selective distribution
placement of a product where its number of sales outlets are
limited in an area intensive distribution placement of a product in
all suitable sales outlets intensive distribution selective
distribution exclusive distribution The People Strategy The people
strategy involves assembling, preparing, and maintaining the people
who will help the business achieve success. The Price and Promotion
Strategies
The price strategy is a financial decision and a marketing strategy
that affects the customers motivation to buy. The promotion
strategy is designed to tell potential customers about a businesss
products and their characteristics, benefits, and availability.
Marketing Tactics To apply marketing strategies, entrepreneurs
employ marketing tactics. marketing tactics activities that are
taken to carry out a marketing plan After You Read 1.Identify the
role of marketing objectives in developing a marketing plan.
Marketing objectives state what a business wants to accomplish
through its marketing efforts. After You Read 2.Name the five
marketing strategies that make up the marketing mix. product,
place, people, price, and promotion After You Read 3.Describe the
part marketing tactics play in the marketing plan. Marketing
tactics are the activities used to put the marketing mix and the
marketing plan into action. Section Objectives State the importance
of ongoing market research.
List the factors to consider for each strategy when reviewing the
marketing mix. Describe how to update the marketing mix and
marketing plan. The Main Idea The target markets, customer demands,
and competition of a business change over time. For a business to
succeed, you must make timely adjustments to your marketing plan.
Content Vocabulary private brand guarantee diversification The
Importance of Ongoing Market Research
In business, change is constant. In order to stay up-to-date with
changes as they occur: Gather primary data from customers. Gather
secondary data from business records. Collect information that
affects your operation. Reviewing Your Marketing Plan and Mix
There are many benefits to ongoing market research. The research
provides information you need to make adjustments to your marketing
plan and allows you to revise and rework your marketing mix
strategies to make them more effective. Product Strategy
Changes
Possible Changes to the Product Strategy adding products
eliminating products revising guarantees and service policies
ProductStrategyChanges changing products changing brands,
packaging,or labels identifying new uses for products 34 Possible
Changes to the Product Strategy
You may want to consolidate products you manufacture under
different brands under a single brand. You may also choose to sell
your own private brand. private brand a brand that is owned and
initiated by a wholesaler or retailer Possible Changes to the
Product Strategy
To build customer confidence and increase sales, a business can
offer a service policy or a guarantee. guarantee an assurance of
the quality of a product Place Strategy Changes
Possible Changes to the Place Strategy improving location
rearranging layout PlaceStrategyChanges changing channels of
distribution increasing availability 37 People Strategy
Changes
Possible Changes to the People Strategy number of people system
rewards employee qualifications PeopleStrategyChanges humanresource
responsibilities team-building responsibilities 38 Price and
Promotion Strategy
Possible Changes to thePrice and Promotion Strategies pricing for
profit Price and PromotionStrategy Changes reacting to marketprices
revisingterms of sale 39 Revising Your Marketing Plan and Mix
Reviewing and revising your marketing plan and mix regularly will
help you identify and make necessary strategy changes. Such a
review sets the stage for longer-term market planning, such as
expansion, revision, or diversification. diversification the
process of investing in products or businesses with which an
existing business is not currently involved After You Read 1. State
the importance of ongoing market research.
Ongoing market research provides information that enables a
business owner to make decisions that ensure the profitability of
the business. After You Read 2.List the factors to consider for
each strategy when reviewing the marketing mix. For product
strategy: goods and services to offer, differentiation from
competitors products, and clear product identification. For place
strategy: changes in location, layout, availability, and channels
of distribution. For people strategy: shifts in demand, changes in
the nature of the business, and growth. For price strategy: pricing
for profit, reacting to market prices, and revising terms of sale.
For promotion strategy: making the most of advertising dollars,
stimulating sales, and planning for the long term. After You Read
3.Describe how to update the marketing mix and marketing plan.
Updating the marketing mix involves reviewing individual strategies
for recent adjustments and needed changes. Changes and proposed
changes are then reviewed for consistency with marketing objectives
and budget considerations.Based on these reviews, adjustments are
made to ensure that all strategies are coordinated to accomplish
the marketing objectives. Finally, the revised mix is incorporated
into the marketing plan and supporting elements of the plan are
modified accordingly. End of Chapter 10 The Marketing Plan