MARKETING PLAN

Pandiyan Vadivelu , CMILT, MBA.

MARKETING

Refers ton activities which are carried out systematically to encourage and increase sales of products /services without jeopardising religious and ethical practices.

MARKETAny entity that has purchasing power to acquire goods and services to fullfill its needs and wants .

There are FOUR categories of market and their profiles

MARKET & PROFILECategory Profile

Human being Geographic, Demographic and Psychographic

Governments Local, State and Federal

NGOs Environment ,Social and Cultural

Business entities Manufacturer, Wholesaler, Agent/dealer, retailer

MARKETING PLAN

A written document that summarises what the marketer has learnt about the

market place , indicates how the firm plans to reach its marketing objectives,

and helps direct and coordinate the marking effort.

EIGHT (8) STEPS IN PREPARING MARKET PLANDefine the product concept Identify the target marketDetermine the market size Identify the competitorsDetermine market shareDevelop sales forecastDevelop marketing strategiesPrepare marketing budget

1. IDENTIFY THE PRODUCT / SERVICE Identify the product or service to be offered

Based on the needs and wants of the market

A preliminary survey is conducted

Collect data on customers

2. IDENTIFY THE TARGET MARKET To ensure marketing efforts fulfils the needs and wants of customers and

brings profits

Need to focus its efforts on selected group of customers

Target market is defines as the groups of customers wit needs and wants that can be satisfied by the business through the supply of goods and services

Reasons / Importance :

1. Cannot fulfil the needs of all

2. Business has limited resources to cater for all

Need to group / segment the market (based on identical common traits )

MARKET SEGMENTATION Segmentation Variables/Bases

Geographic District, State. Countryt, Climate etc.

DEmographic Age, occupation, gender, education, income, social class and family

Pschographic Personal taste, status, preferences, ego, hobbies , political attitude , sensitivity to price , otives of purchase and loyalty to product

DETERMINE THE TARGET MARKET Involves selecting target market from several market segments

Based on higher sales potential and profit

Allows for a more focused and effective marketing efforts

Once the target market is confirmed , the business needs to make a sales forecast.

Sales forecast is the expected sales potential from yjr selected target market

IDENTIFY THE COMPETITORS

To know to whom the firm is sharing the market

Competitors refer to other businesses which offer similar products , substitutes or alternate products/services

To develop appropriate marketing strategies to compete rivals

DETERMINE MARKET SHARE

Need to determine how much of the market it can occupy or control

Market share refers to the portion of the market that the business can control after taking into consideration market size and the competitors’ position in the same market

Market share is often quoted in terms of percentage of the total market size

MARKET SHARE : ILLUSTRATED EXAMPLE (1) Shipping company XYZ operates in Johor Bahru . The target markets for additional business

are the processing industries and chicken farms. The business estimates a market size for processed chicken to be 200 containers per month( estimated revenue of RM 400,000 )

Company XYZ has identified 4 main competitors , which are company ABC, DEF, FGH and IJK .

A survey was conducted revealed that each of the competitor controls a percentage of the market as shown below :

Market Share (Before entry of Company XYZ:

Company ABC 40%

Company DEF 30%

Company FGH 15%

Company IJK 15%

100%

MARKET SHARE : ILLUSTRATED EXAMPLE(2)Market Share (After entry of Company XYZ:

Company ABC 39% RM1,560,000

Company DEF 27% RM1,080,000

Company FGH 12% RM 480,000

Company IJK 12% RM 480.000

Company ABC 10% RM 400,000

100% RM 4.000,000

DEVELOP SALES FORECAST

Once the market share has been estimated, the company now forecast sales for the business period

Need to consider :

1. Customer awareness of the business

2. Seasonal variations

3. Pre sales period (no significant sales for first few months)

MARKET SHARE ESTIMATION : AN ILLUSTRATED EXAMPLEMonth Sales collection

January RM 20,000

February RM 40,000

March RM 35,000

April RM35,000

May RM 35,000

June RM 40,000

August RM 35,000

September RM 35,000

October RM 35,000

November RM 45,000

December RM 45,000

100% RM 400,000

DEVELOP MARKETING STRATEGIESMarketing strategy consists of 7 Ps

1. Product

2. Price

3. Place (Distribution)

4. Promotion

5. People

6. Physical evidence

7. Processes

PREPARE MARKETING BUDGET Items Fixed assets

expensesMonthly expenses

Other Expenses

Signboard 3000

Marketing personnel

Salary 5000

Commission 5000

EPF/SOCSO 1000

Travelling 1000

Promotion 10,000

Grand opening 5,000

Total 3000 12000 15,000

MANAGING MARKETING ACTIVITIES Managing by objectives

The Gantt Chart

Budget