entrep

• a document containing the marketing objectives, marketing strategies, and the activities that will be undertaken to execute these strategies.

• must consider the overall goals of the enterprise, which must take precedence over the specific marketing objectives.

• must also be based on valid assumptions about the financial resources, physical resources, and human resources that will be available to the business venture.

• must have specific and measurable objectives that will allow the entrepreneur to monitor performance and control business activities.

• must also be able to anticipate certain scenarios that will allow the entrepreneur to adjust his strategies accordingly.

marketing plan

must be based on an intelligent assessment of the business environment

marketing strategies

must consider the purchasing power of the customers as well as the price levels of similar products available in the market.

pricing strategies

must consider transportation costs or the costs of operating a retail outlet.

distribution strategies

4ps of marketing

• product

• price

• place (distribution)

• promotion

the entrepreneur can get hold of the relevant information by visiting the competitors’?

• websites

• getting hold of company catalogs

• flyers and brochures

• reading newspaper and magazine articles

• interviewing customers, suppliers, and distributors

benchmarks that must be met or surpassed

competitors’ strengths

gaps in the execution of the strategy

competitors’ weaknesses

who proposed the MADI questions?

Dr. Ned Roberto

• provides a useful way of identifying unmet or unsatisfied customer needs and expectations.

• this require the entrepreneur to interview customers or to conduct a focus group discussion (fgd)

MADI questions

MADI questions

• M - What is missing (kulang)?

• A - What is annoying (nakakabuwisit)?

• D - What is disappointing (nakakabanas)?

• I - What is irritating (nakakainis)?

What are the steps in preparing the marketing plan? (5)

1. assessing the business situation

2. defining the target market

3. setting the marketing goals and objectives

4. developing the marketing strategy and action programs

5. preparing the budget for the action plan

It should describe the present market conditions and how the company’s goods and services fare against those of its competitors. any future opportunities must also be presented.

assessing the business situation

businesspersons now recognize the value of focusing on a particular segment of the market, given that people have different needs, wants, preferences, and expectations.

defining the target market

• a process of dividing the market into small groups that have some similar characteristics.

• by focusing only on a particular segment, the entrepreneur can develop a product or service that is responsive to the needs of this specific group.

market segmentation

process of segmenting and targeting customers: (4)

1. decide what general market or industry you wish to enter

2. divide the market into smaller groups based on customer characteristics:
   - demographic (age, gender, educational attainment, occupation, income level)
   - psychographic (personality, lifestyle)
   - geographic (barangay, city/municipality, province, region)

3. select segment or segments to target

4. prepare a marketing plan integrating product, price, distribution, and promotion

• before strategies can be formulated, the entrepreneur must know where he intends to bring the business. “Where do we want to go?”

• SMART goals come into play

setting the market goals and objectives

SMART

• specific

• measurable

• attainable

• realistic

• time-bound

marketing goals can be expressed in terms of? (8)

• market share

• market penetration

• revenue by territory

• new products launched

• number of distributors

• customer service responsiveness

• sales promotion

• advertising expenditures

• once the marketing goals and objectives have been set, the entrepreneur can proceed with developing his marketing strategy and accompanying action plan.

• “How do we get there?” strategies should be formulated for each element of the marketing mix

developing marketing strategy and action programs

marketing mix (4)

1. product

2. price

3. place

4. promotion

• this must include a description of the product or service that will be offered by the business.

• there must be also a description of other important components that add value to the customer, such as the brand name, image, packaging, delivery time, after-sales service, and warranty,

• product features, style, options, quality of materials or components, product-bundling, sizes

product

• an important consideration for many buyers, and must therefore be given appropriate attention by the entrepreneur.

• quality image, list price, quantity, discounts, allowances for quick payment, credit terms, and payment period.

price

what should be considered when deciding on the price of a product?

• cost

• competition

• perceived value

types of pricing: (3)

• cost-based pricing

• competition-based pricing

• value-based pricing

entrepreneurs must make sure that they calculate both variable costs and fixed costs.

cost-based pricing

are those incurred on each unit that is produced, such as direct labor, raw materials, commission given to a salesperson, or the cost of packaging.

variable costs

refer to costs of things such as facilities and equipment that do not change with the number of units that are produced.

fixed (overhead) costs

entrepreneurs must consider the prices of existing products or services in the market.

competitor-based pricing

entrepreneurs must be aware of the value attached by customers to products or services.

value-based pricing

• what is the best way of getting the product to the customer?

• setting up of own distribution outlet, use of wholesalers and/or retailers, number of distributors, number of channels. geographic coverage, inventory, transportation, and use of electronic channels

place (distribution)

when deciding on a channel for distributing one’s product, the entrepreneur must consider:

• the channel’s directness

• the customer’s convenience

• cost-effectiveness

• it is essential for the entrepreneur to make his product known to his potential consumers.

• he can do this by utilizing traditional media such as print, radio, and television, or by tapping new media, such as the internet.

• media alternatives, message, advertising budget, sales promotion, use of social networking, website design and interface, publicity efforts

promotion

needed to execute the marketing strategies and activities

budget