Business Planning for Entrepreneurs
The Market Planning Process Market planning is the process of – Identifying your customers – Defining their needs, wants and expectations – Developing your strategies and tactics for satisfying them.
Pricing Pricing is a balancing act – You must support your costs – While meeting your customer’s limits – And giving you your desired profit.
How Do I Set a Price Supply and Demand (Equilibrium Price) Economics of One Unit Breakeven Analysis plus desired gross profit (Breakeven units = Fixed cost / gross profit per unit)
Pricing Basics Price Quantity Supply Demand Equilibrium (Market) Price $1 $ Breakeven Price Profit- Maximizing Quantity Breakeven Quantity
Pricing Strategies Markup Pricing Penetration Pricing Price Skimming
Pricing Strategies Continued Follow the Leader Price Lining Variable Pricing
Product (or Service) Bundle of attributes that a customer perceives Package of value from the various features, benefits, and intangible rewards
Types of Products / Services Convenience goods/services Shopping goods/services Specialty goods/services
Product/Service Planning Strategy Product Mix and Positioning Product life Cycle Product Branding
Promotion The Ultimate Goal: increase sales Purposes of Promotions: – Communicate information – Position products/services – Add value – Control sales volume
Promotional Mix of Tools Advertising Sales Promotions Publicity Personal Selling
Principles of Selling Make a good personal impression Know your product or service Believe in your product or service Know your field (company, industry) Know your customers Make an appointment Treat everyone you sell to like gold Think positively Keep good records Make no truly “cold” calls Prepare your sales presentation
Place / Distribution Channels of Traditional Distribution and Intermediaries Warehousing and Transportation Operations
Location Planning Importance of Location Key Factors in Location Decisions Challenges in Designing and Equipping the Physical Facilities
Internet-Based Businesses Perhaps the hottest and fastest growing area of entrepreneurial activities Essential technologies for success in I-business – Traffic-driving technologies Search engines, directories, listfeed programs, viral affiliate marketing, targeted , wireless mobile e-commerce – Site-enhancing technologies Personalization, shopping wizards, multiple currencies, real-time access to order/inventory status, content management solutions – Customer-servicing technologies Real-time pre-sales chat, multi-channel customer service
Ascent of Internet-Based Businesses E-intermediaries: on-line service providers Functions – Collect and present information – Help deliver internet products
Types of E-Intermediaries Syndicated Sellers Shopping Agents Electronic Retailing
Electronic Storefronts Electronic Catalogs Cybermalls Interactive and Video Marketing
Activities Business Plan Question 29 to 35 Debate: Internet-based businesses – Fad or Future? (3 groups: 2 debaters, 1 observe/eval)