Lesson 2. Developing a Marketing Plan

Next Generation Science / Common Core Standards Addressed! RST.11 ‐ 12.7 Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. (HS ‐ LS2 ‐ 6),(HS ‐ LS2 ‐ 7),(HS ‐ LS2 ‐ 8) Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. (HS ‐ LS2 ‐ 6),(HS ‐ LS2 ‐ 7),(HS ‐ LS2 ‐ 8)

Bell Work / Student Learning Objectives Define the purpose for developing a marketing plan. Identify the process of developing a market plan. Explain the three essential elements of a marketing program.

Terms Budget Demographics Economics Economist Financial statement List Serve Market research Market segment Marketing plan Price Quality Sales forecast Supply Target market Trade Association Web based sales

Interest Approach Should companies market products to all different groups of people or targets just a few? If just a few, how do you select the group you want?

What are the purposes of developing a market plan? For a business to remain operable, it needs to be profitable. To make a profit means to make money. A marketing plan is a program designed to help a business achieve its estimated sales.

A marketing plan is developed for each of a business’s market segments. A market segment is a group of customers, divided from others by certain characteristics. Each market segment requires a different method of advertisement.

To advertise means to present the positive qualities of a product or service to the public. Buy Me!

A marketing plan can be formal or informal. To determine which is more appropriate, a business must first do market research. Market research consists of gathering, recording, and analyzing data related to products and consumers.

Marketing plans and market research help ensure that consumers in a target market are offered the products or services they want or need. A target market is the market segment that is most likely to purchase a product or service.

What processes go into developing a market plan? Before a target market can be reached, a market plan must be developed. Information in marketing plans help business managers make sales forecasts.

Sales forecasts Sales forecasts are an estimate of the amount of sales resulting from a market plan. Market plans are both internal and external in nature.

Sales forecasts Elements included in an internal marketing plan include the available budget, sales history, inventory supply, and financial statement.

Budget A budget is a business’ written statement of future financial plans. It includes the forecasted income, expenses, and estimated profits of a business. It is necessary to set budgets in order to reduce the risk of overspending.

Sales histories Sales histories help a business plan for the future by looking at the past. A sales history should reflect the same or similar market groups to be useful in developing a market plan.

Inventory For businesses to remain competitive, it is important to be able to supply its customers with the products and services they want. Supply is the amount of goods and services a business offers for sale at any given time. In business this is known as inventory.

Financial statement A financial statement is a balance sheet showing the income and expenses of a business. Its purpose is to summarize the finances of a business.

External elements External elements are important in market research as well. External elements include target market demographics, business statistics, census data, government agency reports, voter registration lists, an economic analysis, and customer survey results.

Demographics are those statistics dealing with the distribution, density, and vital statistics of a population. Business statistics are readily available from a trade association. A trade association is an organization that helps businesses by serving their common interests.

The census is a survey taken every decade to help determine the population density and economic development of any given area. A variety of government agency reports can help in developing market research. The USDA publishes a variety of reports that could prove useful to a horticulture business.

Market research firms use information gathered from both public and private records to identify consumers with specific characteristics. An economist is a person who specializes in economics. Economics is the study of production, distribution, and consumption of wealth.

Economists are capable of analyzing a business or market to show what is necessary for improvement. A survey is a written or verbal opportunity for a business to determine the wants and needs of their customers. Surveys can be extremely detailed or very brief.

What are the three essential elements of a marketing program? Price, quality, and service are important to factors both big and small alike. A nation-wide seed distribution company would be just as concerned with these elements as a family- run greenhouse.

price An item’s price is the amount of its worth in dollars. Prices of products and services should be competitive and relative to the quality of the item.

Quality Quality is the degree of excellence of a product or services. Usefulness can also determine quality. Products of low quality are worth less money.

Service The services provided with a product can help determine the market price of a product or service. There are three areas of service: handling, financing, and technical information.

Review/Summary What are the purposes of developing a market plan? What processes go into developing a market plan? What are the three essential elements of a marketing program?

The End!