Chapter 4

The Marketing Plan

Learning Objectives:

After completing this module, students will be able to:

Objective 1 - To provide a detailed description of the innovative products offered

Objective 2 - Analyze the internal and external competitive market
Objective 3 - Develop strategies on location, price and promotion
Objective 4 - Create a sales forecast in the coming years.

__________________________________________________________________________

Are you ready? Let's Get Started!

What I Know
Answer this question: What is the impact of Marketing to Entrepreneurs?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

What to Know

Marketing

MARKETING PLAN

Product Description

Enumerate the product/services you want to sell? Describe their characteristics such
as color, size, shape, weight, etc. What will be their brand names? How will you
present/package your product/service? Show pictures of the actual products with proper
captions.

Product 1: Name of product

<Close Picture> <Wide Picture>

Detailed Description:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____

Benefits of the product: (Value to customers / Advantage over competitor’s products):

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____

Price: _________________

NOTE: Each product offered should have its individual product description

Target Market

Define who the exact customers of the business are. Customers can be classified
based on their characteristics according to:

· Demographic Segmentation

o Describe your target market based on variables such as age, gender, income,
education, nationality, religion and family life cycle

· Geographic Segmentation

o Describe your target market based on territory or geographical units such as

regions and cities, urban or provincial

· Psychographic Segmentation

o Describe your target market based on their lifestyle, personality and social
class
 · Behavioral Segmentation

o Describe your target market based on knowledge, attitudes and market

response to a product.

In this part the entrepreneur should be able to identify the exact characteristics of
his/her customers. By knowing their attributes and preferences, a better product or service
can now be produced.

Positioning Statement

After identifying the target market, the Entrepreneur will now create a positioning
statement. The positioning statement acts as a “catch” or reference document for any
branding activity you do at your organization for a new product. It will serve as a promise
statement on what you can offer to your customers.

A good positioning statement can be done by answering the following questions:

Who is your target market?

o This has been already answered in the previous part. Who are the types of
businesses or consumers you want your business to reach? What are their
interests? How do they make decisions? Who or what influences them and
why? The more specific you can be, the better.

· What unique Value Do you provide them?

o What do you think you’re the best in the world at? What value do you
provide your customers that no one else can provide? What service
offering are you most confident in?

· Why should they believe in you?

 o How can you make your customer believe in you?

After answering all of these questions, you can now create a positioning statement for
your business.

Your positioning statement should be written for the average reader and be easy to
understand and remember. It should also be written specifically for your target market and
make claims that are within reason. Your business should be able to deliver on the promises
and commitments made in the position statement.

As well, a good position statement will demonstrate how your business will
differentiate from other competitors. Your business should be able to “own” its position in
the market with this new product, while still being consistent with its existing marketing
plan.

A good position statement will also leave room for your business to grow into its
position in the marketplace. The position statement shouldn’t be a closed statement, and
should be looking to the future growth of your business, as well as any adjustments or
changes that may be made moving forward.
Competitor Analysis

Enumerate all the existing similar products/service in the market and their locations.
Show pictures of the similar products with proper captions. Refer to the example below.

Product 1: __Name of the competitor’s product

<Close Picture> <Wide Picture>

Description:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
___

Advantage of your product over competitor’s product:

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
___

Competior’s Marketing Strategies:

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__

This portion should answer the following questions:

● · Do they sell directly to the consumers or do they sell to middlemen?

● · Are they accepting catering services (for food service)?
● · How do they promote their product/service?
● · What are their selling terms: retail price; wholesale price; amount or number
of purchase to be considered wholesale; terms for credits; terms for accepting
bulk orders; and others?
● · What are their promotional strategies?
● · Who do they target in their promotional activities?

Place to Market

This portion should answer the following questions:

● Where will you sell your product/service?

● To whom will you sell?
● Will you put up a structure for your marketing area? If yes, describe.
● Describe the vicinity of the marketing area. What are the business or structures
around that will help in inviting target market? Are there passers-by or human traffic
in the area? Describe the frequency of people or vehicles that passes the area.
● Show a location map of the market area. Indicate land marks to easily locate the area.
Promotional Strategies

This section enumerates all the promotional efforts to be done by your business.
Marketing strategies will help bridge the gap between your product offerings to the
customers. Please use various startegies in the marketing communication mix. In this
guidelines, the student should provide a minium of five promotional strategies. One of the
strategies should be a promotional t-shirt.

It is mandatory to all Business Plan students to have two sets of promotional t-shirts.
This will serve also as the uniform for the semester. The design will be up to the team,
however, a logo of the College of Home Economics and Technology must be part of the
design. It is highly encouraged that all personnel (your parents/siblings) involved in the
business should have their promotional t-shirts

Promotional Activity 1:_________________________________________________

 <picture of the promotion>

Description of the promotion:

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
___

How will it increase sales?:

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
___

Pricing Strategy

Describe your pricing scheme. The following are the key questions to accomplish
this. What will be your products’ Standard Retail Price (SRP) and wholesale price? For
retail, will you offer a ceiling price to give a leeway for “hustlers”? How much? If wholesale,
what is the minimum quantity? Will you offer an introductory price or will you change your
price in the long run? By how much? In case of credits, what will be your terms?

Pricing Scheme Sample (For processed products)

Retail Wholesale
 Product Qty. SRP Ceiling Wholesale Qty.
Price Price

Strawberry preserve (500g) 1 pc. 145.00 165.00 130.00 24 pcs.

Pricing Scheme Sample (For foodservice)

Product or Price per Catering

Package Package Service Price
Product or Package Components
Meals/Snacks

1 cup rice, 1 serving meat, 1 serving 60.00 70.00 per

vegetable, soup, service water, lemon person
Budget Meal
grass tea and dessert

Wholesale/Catering Services Contract

This shows the specifications of the wholesale order or catering services such as:
quantity; product/s ordered; package meals/snacks and its components chosen by the
customer; breakdown and total amount of order; date the order is received and to be
delivered or pick-up; the person who receives and gave orders with their signatures; amount
of down payment; and others. The payment terms or conditions should be specified also in
the contract.
Projected Sales

State your sales projection for the whole semester and describe briefly how you come
up with the figures. Summarize projections per month using the table below.

Product Month 1 Month 2 Month 3 Selling Total

Price Sales

Product 1 <units> <units> <units> <price>

Product 2 <units> <units> <units> <price>

Product 3 <units> <units> <units> <price>

Total

Justification of projected sales:

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____

NOTE: The projected sales should be conservatice and realistic and will be based on the
demand during the product tet launch to be done in this semester.

Marketing Functions & Responsibilities

Marketing is the life of every project and so it is very important that somebody is
assigned marketing as his/her major function. Determine who will be the Marketing Head.
Enumerate his/her functions and responsibilities.
Marketing Costs

Enumerate your promotional expenses such as: promotional strategies; launching

activities; giveaways; and others (as listed in the Promotianal Strategies section).. How much
will be the total marketing cost? Show breakdown using the table below.

Breakdown of marketing cost

Particulars Quantity Price per Total Cost

Unit

Total