The Organizational plan

Developing the management team

Developing an entrepreneurial team Full time commitment is a prerogative More than the skills and the experience they bring. It is

imperative that they share the vision and plan of the Entrepreneur.

Legal forms of Business – on ownership lines….

Sole proprietorship Partnership Company

Decisions for deciding forms of ownership

Ownership Liability of owners Costs of starting a business Continuity of business Transferability of interest Capital requirements Management control Distribution of profits and losses Attractiveness of raising capital

Other decisions…..

Organization structure Building a management team and a successful

organization culture Appointment of board of directors Appointment of board of advisors

The Marketing Plan

A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.

The Marketing plan needs to answer these questions:

• -What are your business marketing goals ?

• -What is your target audience ?

• -Deciding business marketing system

SWOT Analysis

A basic marketing plan begins with SWOT analysis

about your company and the SWOT should be : A summary of the key elements in your business Brief, concise and interesting, without being too

abbreviated Focused on the real issues facing your company Action-oriented, so that positive proposals can be

envisaged

Strengths- You can bank upon these.

Weaknesses- Definitely need to be corrected

Opportunities- Help you in setting the target where you want to reach.

Threats- Make necessary contingency plan to combat threats which would automatically become a part of the marketing plan.

Scope of Marketing Research Identifying Target Market Identifying Market Characteristics Measurement of Marketing Potential Competitors Analysis Sales Analysis Identify and forecast Business Trends Sales Forecasting New Product/Service Acceptance and Potential Long Range Forecasting of Marketing Mix Variables Pricing Strategies and Studies

Market ResearchHow to collect certain information about your customers, market

and competitors?????

This information tells you about your potential market, prices, trends, competition, target customer, its preferences, income, habits, accessibility, convenient time and plans.

This information should be accurate, and reliable to help you make the right business decision.

Market Research

Step One : Defining the Purpose or Objectives Ask people what they think of the product or service and

collect some background demographics & attitudes of these individuals.

How much potential customers would be willing to pay for the product or service.

Where potential customers would prefer to purchase the product or service.

Where the customer would expect to hear about or learn about such a product or service.

Market ResearchStep Two: Gathering Data from Secondary Sources

Data that already exists i.e information from Trade magazines Libraries Government Agencies Universities Internet

The entrepreneur should exhaust all possible secondary data sources, observation, and networking before beginning any more costly primary data research.

Market ResearchStep Three: Gathering Information from Primary Sources

Information that is new is Primary data and involves data collection procedures like Observation Networking Interviewing Focus Groups Experimentation

Data collection is done with the help of Data Instruments like Questionnaire.

.Step Four: Analyzing & Interpreting the results

The results should be evaluated and interpreted in response to the research objectives. The data can then be cross tabulated to give better insights and interpretations regarding the segmentation of the market.

Marketing Research – Analyse Complexity of Buying Behaviour

CULTURALBELIEFS & VALUES, LIFE STYLES

SOCIOLOGICALSOCIAL CLASS,STRUCTUREFAMILY/GROUP INFLUENCE,LIFECYCLE, OPINION LEADERSHIP

ECONOMICPRICE, DELIVERY,PAYMENT TERMS,SALES SERVICE

INDIVIDUAL PSYCHOLOGICALFACTORSCOGNITION, LEARNING PROCESSES,INTERPERSONAL RESPONSE, ATTITUDESMOTIVATION, PERSONALITY THEORIES

BUYING PROPOSITION PRODUCT OR SERVICE

Understanding Consumer CharacteristicsCHARACTERISTICS Innovators

2-3%

Early Adopters

12-15%

Early Majority

33%

Late Majority

34%

Laggards

12-15%

PERSONAL

Social,

Income, Occupation,

Education,

Housing,

Family Influence,

Time orientation

PSYCHOLOGICAL

Nature of needs, Perceptions,

Self-concept, Aspiration Groups, Reference Groups

Changing PrioritiesStage Priorities Major Purchases

Fledging : Teens & early 20s Self,Socialising, Education Appearance Products, Clothing, Automobiles, Recreation, Hobbies, Travel

Courting :20s Self & Other, Pair bonding,Career

Furniture & Furnishing, Entertainment, Savings

Nest Building:20s &early 30s Babies & Career Home, Garden,,Baby Care products, insurnce

Full Nest 30-50s Children, Career, Midlife crisis

Children Food, clothing, education, transportation, life counseling

Empty Nest 50-70 Self & others, relaxation Furniture, Entertainment, Travel, Hobbies, Luxury Automobiles, Investments

Sole survivor 70-90 Self, health,loneliness Health care , Diet, Security, Comfort, TV, Books, Long distance telephone services

Analyse Target Market

OCCUPANTS WHOSERVICES WHATOCCASION WHEN

ORGANISATION WHO IS INVOLVEDOBJECTIVES WHY

OPERATION HOW

Marketing Strategy to be Based on WHO MAKES THE BUYING DECISIONS INITIATOR INFLUENCER DECIDER BUYER USER GATE KEEPER

Characteristics of a Marketing Plan Should provide a strategy for accomplishing

company goals and missions Should be based on facts and valid assumptions Should provide for continuity so that future plans

can be built on it for long-term goals Should be simple and short Should be flexible i.e. should provide scope for

inclusion of “what if” scenarios Should specify performance criteria that will be

monitored and controlled

Why some Plans fail ? Lack of a real plan (particularly regarding goals &

objectives) Inadequate situational analysis – There is no point in

deciding where you want to go if you do not know “where you are?” and “where you have been?”

Lack of Goal Clarity and Unrealistic Goals – This generally happens due to lack of understanding of the situation.

Unexpected competitive moves, product deficiencies, Delay in Getting Finance, and acts of God.