CHAPTER 7 The Marketing Plan

PowerPointPresentationbyCharlieCookTheUniversityofWestAlabamaLongenecker•Moore•Petty•Palich©2008CengageLearning.Allrightsreserved.CHAPTER7TheMarketingPlanDevelopingtheNewVentureBusinessPlanPart3©2008CengageLearning.Allrightsreserved.7–2LookingAHEAD1.Describesmallbusinessmarketing.2.Identifythecomponentsofaformalmarketingplan.3.Discussthenatureofthemarketingresearchprocess.4.Definemarketsegmentationanditsrelatedstrategies.5.Explainthedifferentmethodsofforecastingsales.Afteryouhavereadthischapter,youshouldbeableto:©2008CengageLearning.Allrightsreserved.7–3WhatisSmallBusinessMarketing?•MarketingActivitiesdirectingtheflowofgoodsandservicesfromproducertoconsumeroruser.•Smallbusinessmarketingconsistsofthosebusinessactivitiesthatrelatedirectlyto:IdentifyingatargetmarketDeterminingtargetmarketpotentialPreparing,communicating,anddeliveringabundleofsatisfactiontothetargetmarket©2008CengageLearning.Allrightsreserved.7–4TheThreeLevelsofaProduct/Service7-1Fundamentalbenefitorsolutionsoughtbycustomers.Basicproduct/serviceplusextraorunsolicitedbenefitstotheconsumerBasicphysicalproduct/servicethatdeliversthebenefits.©2008CengageLearning.Allrightsreserved.7–5MarketingPhilosophiesMakeaDifference•Production-OrientedEmphasizesdevelopmentoftheproductandproductionefficienciesoverotheractivities.•Sales-OrientedFavorsproductsalesoverproductionefficienciesandcustomerpreferences.•Consumer-OrientedAllmarketingeffortsbeginandendwiththecustomer;focusisontheconsumer’sneeds—thisphilosophyisthemostconsistentwithlong-termsuccessofthefirm.©2008CengageLearning.Allrightsreserved.7–6ConsumerOrientation—TheRightChoice•ReasonsforNotAdoptingaConsumerOrientationStateofcompetitionWithnocompetitionorhighdemand,firmsfocusonproduction.ProductionfocusEntrepreneursmayhavestrongproductionskillsandweakmarketingskills.FocusonthepresentEntrepreneurstendtofocusoncurrentsuccesswhichistheresultofanoveremphasisonselling.©2008CengageLearning.Allrightsreserved.7–7TheMarketingPlanandSupportingMarketingActivities7-2©2008CengageLearning.Allrightsreserved.7–8MarketingResearchActivities•MarketAnalysisAnevaluationprocessthatencompassesmarketsegmentation,marketingresearch,andsalesforecasting•DevelopingtheMarketingMixThecombinationofproduct,pricing,promotion,anddistributionactivities.©2008CengageLearning.Allrightsreserved.7–9TheFormalMarketingPlan•MarketAnalysisCustomerprofileAdescriptionofpotentialcustomersinatargetmarketSalesforecasts“Mostlikely,”“pessimistic,”and“optimistic•TheCompetitionProfileofkeymanagementpersonnelOverallstrengthsandweaknessesRelatedproductsbeingmarketedortestedLikelihoodofcompetitors’entryintotargetmarket©2008CengageLearning.Allrightsreserved.7–10TheFormalMarketingPlan(cont’d)•MarketingStrategyProductand/orservicesectionDecisionsaffectingthetotalproductDistributionsectionDecisionsregardingproductdeliverytocustomersPricingsectionSettinganacceptablevalueontheproductPromotionalsectionCommunicatinginformationtothetargetmarket©2008CengageLearning.Allrightsreserved.7–11TheNatureofMarketingResearch•MarketingResearchThegathering,processing,reporting,andinterpretingofmarketinformation•OutsideSourcesHiringprofessionalmarketingresearchersUsingtheInternetforweb-basedsurveysandonlinefocusgroups©2008CengageLearning.Allrightsreserved.7–12TheNatureofMarketingResearch•StepsIntheMarketingResearchProcess1.IdentifyingtheinformationalneedWhydoweneedtoknowthis?2.SearchingforsecondarydataWhohasresearchedthistopicalready?3.CollectingprimarydataWhodoweaskandwhatdoweaskthem?4.InterpretingthedataGottheinformation,nowwhatdoesitmean?©2008CengageLearning.Allrightsreserved.7–13MethodsforCollectingPrimaryData•ObservationalMethodsHumanMechanical•QuestioningMethodsSurveysMailTelephonePersonalinterviewsExperiments©2008CengageLearning.Allrightsreserved.7–14DesigningandTestingaQuestionnaire•Askquestionsthatrelatetotheissue.•Useopen-endedandmultiple-choicequestions.•Carefullyconsidertheorderofthequestionstoavoidproducingbiasedanswerstolaterquestions.•Asksensitivequestionsneartheendofthequestionnaire.•Wordquestionsassimply,clearly,andobjectivelyaspossible.•Pre-testthequestionnaireonasmallrepresentativesampleofrespondents.©2008CengageLearning.Allrightsreserved.7–15SmallBusinessSurveyQuestionnaire7-3©2008CengageLearning.Allrightsreserved.7–16InterpretingtheDataGathered•TransformingDataintoInformationTablesandchartsDescriptivestatistics•WhenResearchisTooExpensiveNewspaper,magazine,andindustrytradejournalarticlesandtraderesearchInternetsearchesCheckoutthecompetitionUsestudentstostretchresearchbudget©2008CengageLearning.Allrightsreserved.7–17UnderstandingPotentialTargetMarkets•MarketAgroupof(1)customersorpotentialcustomerswhohave(2)purchasingpowerand(3)unsatisfiedneeds•MarketSegmentationThedivisionofamarketintoseveralsmallergroupswithsimilarneeds•FocusStrategyAtypeofcompetitivestrategyinwhichcostanddifferentiation-basedadvantagesareachievedwithinnarrowmarketsegments.©2008CengageLearning.Allrightsreserved.7–18MarketSegmentationVariables•Segm