2. Devising a Marketing Plan
Chapter 10
The Marketing Plan
Devising a Marketing Plan
10.1
Reviewing and Revising the Marketing Plan
10.2

3. Name the five marketing strategies that make up the marketing mix.
10.1
Identify the role of marketing objectives in developing a marketing plan.
Name the five marketing strategies that make up the marketing mix.
Describe the part marketing tactics play in the marketing plan.
Section 10.1 Devising a Marketing Plan

4. 10.1
To succeed and grow, a business must have a marketing plan with realistic objectives, the proper mix of the five Ps, and an action plan for implementation.
Section 10.1 Devising a Marketing Plan

5. channel of distribution intermediaries intensive distribution
10.1
marketing plan
marketing objectives
marketing mix
brand
package
label
product positioning
product mix
channel of distribution
intermediaries
intensive distribution
selective distribution
exclusive distribution
marketing tactics
Section 10.1 Devising a Marketing Plan

6. Forming Marketing Objectives
Marketing is the process of developing, promoting, and distributing products to satisfy customers and businesses.
The success of a business is determined in the marketplace.
Section 10.1 Devising a Marketing Plan

7. Forming Marketing Objectives
A convincing marketing plan includes a rationale for your selection of marketing strategies and tactics.
marketing plan a plan used by a business to guide its marketing process to a desired conclusion based on information obtained through market research and target market decisions
Section 10.1 Devising a Marketing Plan

8. The Marketing Plan
A successful marketing plan contains specific marketing objectives.
marketing objectives what a business wants to accomplish through its marketing efforts
Section 10.1 Devising a Marketing Plan

9. The Marketing Plan Marketing Objectives
product introduction or innovation
team organization
sales or market share
Marketing
Objectives
projected profitability
advertising
distribution
pricing
Section 10.1 Devising a Marketing Plan 9

10. Developing the Marketing Mix
Developing a marketing mix enables an entrepreneur to map out how to accomplish marketing initiatives.
marketing mix the five marketing strategies used to reach a market: product, place, price, promotion, and people
Section 10.1 Devising a Marketing Plan

11. Developing the Marketing Mix
The Five Ps of Marketing P
Product P
Place P
Price
Promotion P
People P
Section 10.1 Devising a Marketing Plan 11

12. The Product Strategy
The product strategy deals with the goods or services your business will provide.
Section 10.1 Devising a Marketing Plan

13. The Product Strategy Product considerations include:
features and benefits
branding, packaging, and labeling
selection
positioning
mix
Section 10.1 Devising a Marketing Plan

14. The Product Strategy
A product’s brand, package, and label serve as strategies for maintaining customer loyalty.
brand the name, symbol, or design used to identify a product
package the physical container or wrapper used to present information
label the part of the package used to present information about the product
Section 10.1 Devising a Marketing Plan

15. The Product Strategy
Branding, packaging, and labeling can have a bearing on product positioning.
product positioning how consumers see a product in comparison to another product
Section 10.1 Devising a Marketing Plan

16. The Product Strategy
The final consideration in your product strategy is determining your company’s product mix.
product mix all the products a company makes or sells
Section 10.1 Devising a Marketing Plan

17. The Place Strategy
The place strategy deals with how you will deliver your goods and services to customers.
Section 10.1 Devising a Marketing Plan

18. The Place Strategy Place strategy considerations include:
channels of distribution
intensity of distribution
transportation
location, layout, and availability
Section 10.1 Devising a Marketing Plan

19. The Place Strategy
To formulate a place strategy, the entrepreneur needs to understand the channel of distribution.
channel of distribution the path a product takes from producer or manufacturer to final user or consumer
Section 10.1 Devising a Marketing Plan

20. The Place Strategy
There are two basic types of channels of distribution in the place strategy—direct and indirect.
A direct channel moves a product from producer to customer with no other businesses involved.
Section 10.1 Devising a Marketing Plan

21. The Place Strategy
An indirect channel of distribution employs intermediaries.
intermediaries people or businesses that move products between producers and final users, including wholesalers, retailers, distributors, and agents
Section 10.1 Devising a Marketing Plan

22. The Place Strategy Channels of Distribution Direct Producer Consumer
Indirect
Producer
Consumer
Intermediary
Section 10.1 Devising a Marketing Plan 22

23. The Place Strategy There are three ways to distribute a product:
intensive distribution placement of a product in all suitable sales outlets
selective distribution placement of a product where its number of sales outlets are limited in an area
intensive distribution
selective distribution
exclusive distribution
exclusive distribution placement of a product where its number of sales outlets are limited to one per area
Section 10.1 Devising a Marketing Plan

24. The People Strategy
The people strategy involves assembling, preparing, and maintaining the people who will help the business achieve success.
Section 10.1 Devising a Marketing Plan

25. The Price and Promotion Strategies
The price strategy is a financial decision and a marketing strategy that affects the customer’s motivation to buy.
The promotion strategy is designed to tell potential customers about a business’s products and their characteristics, benefits, and availability.
Section 10.1 Devising a Marketing Plan

26. Marketing Tactics
To apply marketing strategies, entrepreneurs employ marketing tactics.
marketing tactics activities that are taken to carry out a marketing plan
Section 10.1 Devising a Marketing Plan

27. 10.1
Identify the role of marketing objectives in developing a marketing plan.
Marketing objectives state what a business wants to accomplish through its marketing efforts.
Section 10.1 Devising a Marketing Plan

28. Name the five marketing strategies that make up the marketing mix.
10.1
Name the five marketing strategies that make up the marketing mix.
product, place, people, price, and promotion.
Section 10.1 Devising a Marketing Plan

29. Describe the part marketing tactics play in the marketing plan.
10.1
Describe the part marketing tactics play in the marketing plan.
Marketing tactics are the activities used to put the marketing mix and the marketing plan into action.
Section 10.1 Devising a Marketing Plan

30. State the importance of ongoing market research.
10.2
State the importance of ongoing market research.
List the factors to consider for each strategy when reviewing the marketing mix.
Describe how to update the marketing mix and marketing plan.
Section 10.2 Reviewing and Revising the Marketing Plan

31. 10.2
The target markets, customer demands, and competition of a business change over time.
For a business to succeed, you must make timely adjustments to your marketing plan.
Section 10.2 Reviewing and Revising the Marketing Plan

32. private brand guarantee diversification 10.2
Section 10.2 Reviewing and Revising the Marketing Plan

33. The Importance of Ongoing Market Research
In business, change is constant. In order to stay up-to-date with changes as they occur:
Gather primary data from customers.
Gather secondary data from business records.
Collect information that affects your operation.
Section 10.2 Reviewing and Revising the Marketing Plan

34. Reviewing Your Marketing Plan and Mix
There are many benefits to ongoing market research.
The research provides information you need to make adjustments to your marketing plan and allows you to revise and rework your marketing mix strategies.
Section 10.2 Reviewing and Revising the Marketing Plan

35. Product Strategy Changes
Possible Changes to the Product Strategy
adding products
eliminating products
revising guarantees and service policies
Product Strategy Changes
changing products
changing brands, packaging, or labels
identifying new uses for products
Section 10.2 Reviewing and Revising the Marketing Plan 35

36. Possible Changes to the Product Strategy
You may want to consolidate products you manufacture under different brands under a single brand.
private brand a brand that is owned and initiated by a wholesaler or retailer
You may also choose to sell your own private brand.
Section 10.2 Reviewing and Revising the Marketing Plan

37. Possible Changes to the Product Strategy
To build customer confidence and increase sales, a business can offer a service policy or a guarantee.
guarantee an assurance of the quality of a product
Section 10.2 Reviewing and Revising the Marketing Plan

38. Place Strategy Changes
Possible Changes to the Place Strategy
improving location
rearranging layout
Place Strategy Changes
changing channels of distribution
increasing availability
Section 10.2 Reviewing and Revising the Marketing Plan 38

39. People Strategy Changes
Possible Changes to the People Strategy
number of people
system rewards
employee qualifications
People Strategy Changes
human resource responsibilities
team-building responsibilities
Section 10.2 Reviewing and Revising the Marketing Plan 39

40. Price and Promotion Strategy
Possible Changes to the Price and Promotion Strategies
pricing for profit
Price and Promotion Strategy
Changes
reacting to market prices
revising terms of sale
Section 10.2 Reviewing and Revising the Marketing Plan 40

41. Revising Your Marketing Plan and Mix
Reviewing and revising your marketing plan and mix regularly will help you identify and make necessary strategy changes.
Such a review sets the stage for longer-term market planning, such as expansion, revision, or diversification.
diversification the process of investing in products or businesses with which an existing business is not currently involved
Section 10.2 Reviewing and Revising the Marketing Plan

42. State the importance of ongoing market research.
10.2
State the importance of ongoing market research.
Ongoing market research provides information that enables a business owner to make decisions that ensure the profitability of the business.
Section 10.2 Reviewing and Revising the Marketing Plan

43. 10.2
List the factors to consider for each strategy when reviewing the marketing mix.
For product strategy: goods and services to offer, differentiation from competitors’ products, and clear product identification. For place strategy: changes in location, layout, availability, and channels of distribution. For people strategy: shifts in demand, changes in the nature of the business, or growth. For price strategy: pricing for profit, reacting to market prices, and revising terms of sale. For promotion strategy: making the most of advertising dollars, stimulating sales, and planning for the long term.
Section 10.2 Reviewing and Revising the Marketing Plan

44. Describe how to update the marketing mix and marketing plan.
10.2
Describe how to update the marketing mix and marketing plan.
Updating the marketing mix involves reviewing individual strategies for recent adjustments and needed changes. Changes and proposed changes are then reviewed for consistency with marketing objectives (and budget considerations). Based on these reviews, adjustments are made to ensure that all strategies are coordinated to accomplish the marketing objectives. Finally, the revised mix is incorporated into the marketing plan and supporting elements of the plan are modified accordingly.
Section 10.2 Reviewing and Revising the Marketing Plan

45. E-Commerce Development Options
Once you decide to start an e-commerce business, you will need to plan how your site will be developed.
You may use a Web-development service, such as a Web designer or Web developer; a hosted service that offers turnkey sites; a software package; or templates.
Section 10.2 Reviewing and Revising the Marketing Plan 45

46. Tech Terms
template
a file that establishes the format and appearance of a Web page
turnkey
a preprogrammed and ready-to-operate hosted e-commerce site
Section 10.2 Reviewing and Revising the Marketing Plan 46

47. Tech Terms Web designer
a person who plans the aesthetic and navigational aspects of a Web site
Web developer
a person who programs a Web site from a technical standpoint
Section 10.2 Reviewing and Revising the Marketing Plan 47

48. End of