CHAPTER 8:
BUSINESS PLAN:
MARKETING PLAN
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
MARKETING PLAN
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
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
MARKETING PLAN
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
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MARKETING PLAN
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
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MARKETING PLAN
Steps in Preparing a Marketing Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
Setting Marketing Objectives
Determining product or service
Identifying target market
Analyzing market trend and size
Assessing competition
Forecasting sales
Developing marketing strategy
Planning for marketing personnel
Preparing marketing budget
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MARKETING PLAN
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
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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.
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MARKETING PLAN
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?
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MARKETING PLAN
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
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MARKETING PLAN
Target Market Alternatives
Mass-Marketing
ignoring market segment differences
go after the whole market with one offer
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MARKETING PLAN
Common Bases For Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Occasions
Benefits Sought
User Status
Usage Rate
Loyalty Status
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MARKETING PLAN
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.
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MARKETING PLAN
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
performance against the competition
assess
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MARKETING PLAN
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
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MARKETING PLAN
6. Forecasting Sales
Past performance
Break-even to set the minimum
Secured projects
On-going contracts
Anticipated or intended growth
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MARKETING PLAN
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
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MARKETING PLAN
Marketing Strategy ( 4Ps)
Product Strategy
Pricing Strategy
Place or Distribution Strategy
Promotion Strategy
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MARKETING PLAN
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
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Product Strategy
Product attributes
Quality
Design
Trade name
Brand name
Packaging
Labeling
Warranty
After sales service
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Marketing Strategies for Services
Service quality
Service package
Combination of services at competitive price
Service differentiation
consistency
Offering that is unique and
differentiated from the competitors
After sales services
Follow-up
can
be
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MARKETING PLAN
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
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Pricing Strategy
Common Pricing Methods:
Based on Cost
Fixed Cost + Variable Cost + Mark-up
Based on Perceived Value
Based on Competition
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Pricing Tactics
Price lining
Discounting
Purchase with purchase
Psychological pricing
Captive pricing
Product bundle pricing
Segmentation pricing
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MARKETING PLAN
Factors to Consider When Setting
Price
Marketing objectives
Demand and supply
Competitors pricing
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MARKETING PLAN
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
Distribution Strategy
Manufacturer/Producer
Wholesaler
Wholesaler
E-Intermediaries
Retailer
Retailer
Consumer
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MARKETING PLAN
Factors to Consider When
Determining Distribution Strategy
Type of product
Target market
Market coverage
Transportation ease
Product standardization
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MARKETING PLAN
Promotion Strategy
Promotion is any coordinated effort
taken to supplement the product, price
and place strategies in order to achieve
marketing objectives.
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MARKETING PLAN
Promotion Strategy
Advertising
Sales promotion
Personal Selling
Publicity
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MARKETING PLAN
Promotion Strategy
Advertising
Paid, non personal sales effort through a medium to influence
a large number of consumers.
Channel of advertising:
Printed
Newspaper
Magazines
Yellow pages
Brochures
Business cards
Electronic and Digital
Television
Radio
Internet
Sort messaging system
Outdoor
Billboards
Banners
Transportation
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Promotion Strategy
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
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Promotion Strategy
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.
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MARKETING PLAN
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
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MARKETING PLAN
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
2. Allocation for working capital for marketing
activities
3. Other marketing expenses
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MARKETING PLAN
THE END!
Marketing Budget Table
Items
Fixed Asset
Signboard
Working Capital
Salary/EPF/SOCSO
- Marketing Manager
- Sales Consultant
- Promotion
Lain-Lain
Grand Opening
Total (RM)
Fixed
Asset
(RM)
Working
Capital
(RM)
Other
Expenses
(RM)
4,000
3,000
1,500
500
5,000
4,000
5,000
5,000
