Marketing mix, operational plan, financial plan

Marketing Mix

- It is a widely accepted strategic marketing

tool that combines original 4P's with the

additional 3P's in formulating marketing

tactics for product or service.

Purpose of Creating 7P's Model

• For conducting situation analysis

• For setting objectives

• For conducting a strength, weakness,

opportunity and threat (SWOT) or

competitive analysis

Product / Service

It is any physical good, service, or idea that is

created by an entrepreneur or an innovator

in serving the needs of customers and

addressing their existing problem

Place

- What location is best suited for the business

where there are more potential customers?

Can they conveniently transact on-site or online? How is the process of distribution of

products or performance of services?

Place

Refers to a location or the medium of

transaction

Physical Location

• Area's population

• The traffic

• People's common paths

• Population's buying behavior

• Population's preferences for the location

Cyber Location

- The entrepreneur must use web analytics

data to understan website performances

Price

- What is the most appropriate price, and

what pricing strategies will be used to the

target markets?

Price

is the peso value that the entrepreneur

assigns to a certain product or service after

considering its costs, competition,

objectives, positioning, and target market.

Penetration Pricing

- this refers to setting

low prices to increase market share, but the

entrepreneur will eventually increase the

price once the desire market share is

achieved.

Skimming

- this is the opposite of

penetration pricing where prices are initially

high and then they are lowered to offer the

product or service to a wider market.

Cost-plus pricing

- the markup is based on a

certain percentage of cost

Cost-based pricing

- the basis of markup is

the cost of sales

Bundling

- this refers to two or more

products or services in one reduced price

Competitive pricing

- this refers to

benchmarking prices with the competitors

Premium pricing

- this refers to setting a

very high price to reflect elitism and

superiority

Promotion

- What is the most effective advertisement or

combination of advertisements, and which

advertising tool should be used to drive

awareness and increase sales?

Promotion

It involves presenting the product or services

to the public and how these can address the

public needs, wants, problems, or desires

Gain attention

Main goal of promotion

Advertising

- this type of communication influences

the behavior of a customer to choose the

product or service of the entrepreneur

over the other competitors

Television

- regular channels, cable TV

Radio

AM and FM radio

Internet

- emails, websites, blogs, social

media

Mobile phones

- text messages, mobile

applications, mobile internet

Print

- newspapers, magazines, flyers,

signages, posters

Out-of-home

- billboards, buses, bus stops,

trains, taxis, street advertisements

Selling

- it is an act of trading a product or service

- it is an act of trading a product or service

for a price or a fee.

after sales

He

or she must monitor the customer's

satisfaction, which is called the

Sales promotions

- these are short-term promotional

gimmicks where in practical incentives

and appealing activities are incorporated

to entice the customers to buy the

product or avail of the service.

Sales promotions

These are

also called "below-the-line" promotions

Public relations

- these are image-building initiatives of

the entrepreneur to make the name of

the business reputable to stakeholder,

such as the target customers,

government agencies, business partners,

media, and the public.

People

- What type of people need to be hired? What

are the basic skills needed for the job? What

leadership style will be applied by the

entrepreneur?

People

One of the 3 additional P's in the marketing

mix

People

Plays a vital role in servicing customers

People

Have a major influence in the customer's

buying behavior

People (in service)

- Since the actual service provider is often not

visible, creating artifacts through photos of

the experts creates the element of trust.

People (in service)

Consumers prefer to see a "human face" in

the email contact details rather than a blank

space or an emoticon.

Packaging/ Physical Evidence

- What is the best packaging for the product

that is attractive enough to customers and

cost-effective at the same time? What

physical evidence does the entrepreneur

need to set up so as to sell the service?

Packaging/ Physical Evidence

It is the overall identification (look and feel)

of the product or service.

Packaging/ Physical Evidence

It preserves the shelf life of the product or

service

Servicescape

- It refers to the overall ambiance of the place

where the service is performed.

Process

- What is the most compelling feature of the

product or the business that will make a

difference in the lives of the customers?

What sets of the product or service from the

rest?

Process

- It is the step-by-step procedure or activity

workflow that the entrepreneur or

employees follow to effectively and

efficiently serve customers

Input-Throughput-Output

Components of process

WHO

: the personnel or departments who

are in charge of completing specific tasks

WHAT

: a description of what each

department is responsible for

WHERE

: The information on where daily

operations will be taking

WHEN

: the deadlines for when the tasks and

goals are to be completed

• Method

• Manpower

• Machine

• Materials

4M's of Operations:

Method

- It is a detailed procedure for accomplishing

something

Method

It is also a systematic way of doing a

particular job

Method

was used in business when

developing or innovating new products or

services, expanding your business

enterprise, searching for skilled workers to

include in the workforce, and for improving

the efficiency of its process

Production Process Section

lays out the

details of your business' day to day

operations.

Manufacturing Site

- where the manufacturing process will take

place

Home-based

- this option is the cheapest and highly

flexible. Most start-ups do not have the

capacity to establish a manufacturing site.

Commercial Space for Rent

- this is advisable if the business really

requires a commercial space for the

processing of goods and if the home option

is not viable anymore. It gives the

entrepreneur a more specialized and suited

manufacturing site than manufacturing at

home.

Commercial Space Purchase

- this option requires the biggest amount of

capital expenditure, but it also provide the

entrepreneur substantial freedom and

flexibility to design and run the commercial

space.

Internal Layout/ Floor Plan

affects the efficiency of

business operations. Each space should be

maximized to save on manufacturing costs.

Product-based layout

- facilities are

prearranged according to the flow of the

manufacturing operations.

Process-based layout

- facilities are

grouped according to their function.

Payment Process

- The entrepreneur must also establish a

seamless ______. There are

instances when the customers do not want

to pay in cash and are usually attracted by

flexible and customer friendly-payment

terms such as credit cards, installment plans,

or simple accounts payable or pautang.

Manpower

It is the workforce of the company

Manpower

They provide strategic solutions in

promoting a sustainable competitive

advantage that quickly adapts to changing

demands in business and its operations.

organizational chart

is a diagram that

visually conveys a company's internal

structure by detailing the roles,

responsibilities, and relationships between

individuals within an entity

Organizational charts

either broadly depict

an enterprise company-wide or drill down to

a specific department or unit.

manpower requirements

also known as workforce planning or

manpower planning

Manpower Requirements

outlines the number

and types of employees needed to support

the business's operations and goals.

Manpower Requirements

This section of the business plan helps

ensure the organization has the right

number of people with the right skills at the

right time.

Manpower Requirements

It's a strategic process that

involves analyzing current workforce,

forecasting future needs, and identifying

potential gaps or shortages

job description

summarizes the essential

responsibilities, activities, qualifications and

skills for a role. This describes the type of

work performed.

job description

- An effective _____ will provide

enough detail for candidates to determine if

they're qualified for the position.

Personnel policies

are the rules that govern

how to deal with a human resources of

personnel related situation.

Personnel policies

They are

guidelines to decision making that help keep

the system as fair and unbiased as possible

Machine

- Plays a vital part in operating a business.

Machine

Refers to the devices and equipment used to

perform specific type of work and usually

uses energy (electricity) to perform a task.

Machine

is important nowadays to make the process

of production more effective and efficient.

Materials

are used in the primary production

or manufacturing of goods and is very

important in the business operation.

high

quality raw materials.

. For the

big companies especially, which sell high

priced products, they always look for _________

Raw Material Requirement

- The raw materials section details the types

and quantities of raw materials needed to

produce goods or services.

Raw Material Requirement

This section is crucial for understanding

production costs, inventory management,

and supply chain dependencies.

Indirect materials

- are those essential for the manufacturing

process but are not directly incorporated

into the final product.

Indirect materials

They support operations but are not a

component of the finished product

Stock Control and Inventory

is used to show how much stock you

have at any one time, and how you keep

track of it.

Raw materials and components

- ready to

use in production

Work in progress

- stocks of unfinished

goods in production

Finished goods

- ready for sale

Consumables

- for example, fuel and

stationery

Minimum Stock Level

- You identify, and re-

order when stock reaches that level. This is

known as the Re-order level.

Stock Review

- You have regular reviews of stock. At every

review you place an order to return to stocks

to a pre-determined level.

Just In Time (JIT)

- This aims to reduce costs by cutting stock to

a minimum. Items are delivered when they

are needed and used immediately.

First In, First Out

- A system to ensure, that perishable stock is

used efficiently so that it doesn't deteriorate.

Stock is identified by date received and

moves on through each stage of production

in strict order.

supplier

is the entity providing goods or

services that a business needs to operate.

Identifying Key Suppliers

- outline the

primary suppliers and their roles in the

supply chain

Supplier Evaluation

- assess potential

supplier based on factors like reliability,

quality, pricing, and delivery times

Contingency Planning

- consider alternative

suppliers to mitigate potential disruptions or

shortages.

Quality Control Requirements

- is the process of

ensuring that a product or service meets

defined quality standards. It involves

monitoring, evaluating, and improving

quality throughout the process.

Quality Control Requirements

aims to minimize defects, reduce waste,

and increase customer satisfaction by

maintaining consistent quality

FINANCIAL PLAN

The financial section of your business plan

determines whether or not your business idea is

viable and will be the focus of any investors who may

be attracted to your business idea

Legal Form of Ownership

- When forming a business, the owners must

decide which legal form of ownership is best

for them and for the business.

Legal Form of Ownership

No single form of ownership will provide

everything.