Business Plan Development:

Marketing Plan

Session 8

Powerpoint Presentation by:

RD VELASCO

Entrepreneurship and Business

Planning

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.

MARKETING DEFINED

Selling?

Advertising?

Promotions?

Making products available in stores?

Maintaining inventories?

All of the above, plus much more!

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

MARKET SHARE

A company’s percentage of the total sales volume

generated by all companies that compete in a given

market.

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

TARGET MARKETING

Customers – people who

buy the product

Consumers – people who

actually use the product

The Four Ps of the Marketing Mix

Product Place

Price Promotion

C

Marketing is all

about managing

the four P’s –

WHAT DO WE MARKET?

Goods

Services

Events

Experiences

Personalities

Place

Organizations

Properties

Information

Ideas and concepts

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.

PRODUCT STRATEGIES

What product to make

How to package it

What brand name to use

What image to project

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

Product Physical Goods

Service

Features

Quality Level

Accessories

Installation

Instructions

Warranty

Product Lines

Packaging

Branding

Place 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

Promotion Objectives

Blend

Salespeople

Kind

Number

Selection

Training

Motivation

Advertising

Targets

Kinds of Ads

Media Type

Copy Thrust

Who Prepares?

Sales Promotion

Publicity

Price Objectives

Flexibility

Level over PLC

Geographic Terms

Discounts

Allowances

Strategy Decision Areas Organized by the Four Ps

Manufacturer or producer

Consumer

Unilever Lamoiyan Ford Metrobank

Wholesaler

Wholesaler

Retailer

Wholesaler

Retailer Retailer

Basic Channels of Distribution for Consumer Products

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

DEMAND

Published statistics

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”

Theoretical Demand Measurements

DEMAND

Per Capita Consumption

(Product of PCC and Target Market

Consumption)

Percentage Share

Computations based on using various

market data.

Theoretical Demand Measurements

DEMAND

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….

Analytical Demand Measurements

DEMAND

Market Build Up Method

Analytical Demand Measurements

DEMAND

Index-of-Buying-Power Method

Analytical Demand Measurements

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.

PROJECTION METHODS

PLASTIC IMPORTS

YEAR ACTUAL VOLUME

1968 14,635

1969 16,548

1970 15,968

1971 23,919

1972 25,968

1973 41,854

1974 27,458

1975 25,039

1976 34,320

1977 42,100

1978 61,752

1979 64,232

Foreign trade statistics, Central Bank of the Philippines

PROJECTION METHODS

A. Arithmetic Method

1. Take the actual demand for

the last year (1979)

64,232

2. Less: Demand for the 1st Year 14,635

3. Difference (inc/dec) 49,597

4. Average (inc/dec) over the

same number of years in

question/number of years

49,597/12

4,133

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, 232 + 4,133 68,365

1981: (1980) 68, 365 + 4,133 72,498

DEMAND-SUPPLY GAP

The Demand-supply Gap refers

to the difference between the

demand and supply.

Output # 4

MARKETING PLAN

REFERENCES

Entrepreneurship, Fajardo, Feliciano R.; Capitol Publishing House Inc.

1994

Management, Robbins, Stephen & Coulter, Mary; Prentice Hall, 2009

Other Matters

Learning Materials and Powerpoint

Lectures are available online

http://istudyguide.weebly.com

End of Presentation