Business Plan Development: Marketing Plan. Session 8. Powerpoint Presentation by: RD VELASCO Entrepreneurship and Business Planning
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1 Business Plan Development: Marketing Plan Session 8 Powerpoint Presentation by: RD VELASCO Entrepreneurship and Business Planning
2 MARKET DEFINED - Is where and to whom a product is sold. - All potential customers who have the ability and willingness to buy - TWO TYPES - Consumer Markets - Consist of consumers who purchase goods and services for personal use. - Industrial Markets - Business-to-business (B-to B) markets include all businesses that buy products for use in their operations.
3 MARKETING DEFINED Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus much more!
4 MARKETING DEFINED continuation Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals - American Marketing Association Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
5 MARKET SHARE A company s percentage of the total sales volume generated by all companies that compete in a given market.
6 TARGET MARKETING Focusing all decisions on a very specific group of people who you want to reach. Customer Profile To develop a clear picture of their target market, businesses create a customer profile. It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence
7 TARGET MARKETING Customers people who buy the product Consumers people who actually use the product
8 The Four Ps of the Marketing Mix Marketing is all about managing the four P s Product Place C Price Promotion
9 Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts WHAT DO WE MARKET?
10 CORE CONCEPTS OF MARKETING Based on : Needs, Wants, Desires / demand Need food ( is a must ) Want Pizza, Burger, French fry's ( translation of a need as per our experience ) Demand Burger ( translation of a want as per our willingness and ability to buy ) Desire Have a Burger in a five star hotel Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.
11 PRODUCT STRATEGIES What product to make How to package it What brand name to use What image to project
12 PLACE STRATEGIES How and where a product will be distributed. PRICE STRATEGIES Reflect what customers are willing and able to pay. PROMOTION STRATEGIES How potential customers will be told about the new product What the message will be When and where it will be delivered What inducements are there to buy
13 Strategy Decision Areas Organized by the Four Ps Product Place Promotion Price Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances
14 Basic Channels of Distribution for Consumer Products Manufacturer or producer Metrobank Ford Lamoiyan Unilever Wholesaler Wholesaler Wholesaler Retailer Retailer Retailer Consumer
15 DEMAND The demand analysis is meant to determine the pattern of consumption for the product and the characteristic of the market in the immediate past in order to determine what is likely to happen to the consumption pattern in the near future. Market demand for a product is the total volume that would be bought by a defined customer group, in a defined geographical area, in a defined period, in a defined marketing environment, under a defined marketing program -Philip Kotier
16 Published statistics DEMAND Theoretical Demand Measurements The National Statistics Office (NSO) The National Economic Development Authority (NEDA) The Department of Trade and Industry (DTI) Bangko Sentral ng Pilipinas (BSP) Cons: RELIABILITY and ACCURACY Remedy : correction factor
17 DEMAND Theoretical Demand Measurements Per Capita Consumption (Product of PCC and Target Market Consumption) Percentage Share Computations based on using various market data.
18 DEMAND Analytical Demand Measurements Chain Method Total Population x population of target market x personal estimates of per capita income x target market s average percentage of calculated income spent of food x average amount of this spent on food.
19 DEMAND Analytical Demand Measurements Market Build Up Method
20 DEMAND Analytical Demand Measurements Index-of-Buying-Power Method
21 SUPPLY ANALYSIS The supply situation for the product in a particular market is likewise assessed as to source and the quantity and quantity and quality available. Quantity Supplied refers to the amount (quantity) of a good that sellers are willing to make available for sale at alternative prices for a given period.
22 PROJECTION METHODS PLASTIC IMPORTS YEAR ACTUAL VOLUME , , , , , , , , , , , ,232 Foreign trade statistics, Central Bank of the Philippines
23 A. Arithmetic Method PROJECTION METHODS 1. Take the actual demand for the last year (1979) 64, Less: Demand for the 1 st Year 14, Difference (inc/dec) 49, Average (inc/dec) over the same number of years in question/number of years 49,597/12 4,133
24 PROJECTION METHODS A. Arithmetic Method (continuation ) 5. Use the figure in step 4 to compute for projections annually. This figure will then be the inc/dec for your projections starting 1980: Projected Years Projected Demand 1980: (1979) 64, ,133 68, : (1980) 68, ,133 72,498
25 DEMAND-SUPPLY GAP The Demand-supply Gap refers to the difference between the demand and supply.
26 Output # 4 MARKETING PLAN
27 REFERENCES Entrepreneurship, Fajardo, Feliciano R.; Capitol Publishing House Inc Management, Robbins, Stephen & Coulter, Mary; Prentice Hall, 2009
28 Other Matters Learning Materials and Powerpoint Lectures are available online
29 End of Presentation
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