Chapter ENREPRENEURSHIP

8
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Entrepreneurship 8th edition Author: Robert D Hisrich, Micheal P. Peters Dean a Shepherd
McGraw-Hill/Irwin Entrepreneurship, 7/e Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

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Written Statement Of Marketing objectives, strategies and Activities to be followed in Business Plan

 MP

responds to three Qs

Where

have we been ? Where are we going ? How do we get there ?

E

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conduct market research to respond to these Qs

involves Secondary / Primary data process

Research

 Who

will buy the product or service ? What is the size of the potential market ? What price should be charged ? what is the most appropriate distribution channel ? What is the most effective promotional strategy to reach and inform potential customers ?

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Market Research involves gathering of data in order to determine such information:

Step One: Defining the Purpose or Objectives

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Step Two: Gathering Data from Secondary Sources

Step Three: Gathering Information from Primary Sources

Step Four: Analyzing and Interpreting the Results

 Sit

down & Make a list of the information that will be needed to prepare the marketing plan.

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Ex: E may think there is a market for his product but is not sure who the customers will be

So ask people what they think of the product or service and if they would buy it & background demographics How much potential customers would be willing to pay for the product or service Where the potential customers would prefer to purchase the product or service Where the customer would expect to hear about or learn about such a product or service

Newspaper articles Libraries: Government agencies Trade magazines: dept & Chamber of commerce Internet

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Dept & Chamber of Commerce

Local Banks/ Dept of Labor Local Media

Data collection procedures BZUPAGES.COM

Observation: record customers buying behaviors
interviewing:

telephone- Mail- personal

focus

groups: 10-12 potential customers

Questionnaire: sample questionnaire

 Can

be hand-tabulated or entered on a computer

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Results

should be evaluated and interpreted in response to the research objectives can be cross-tabulated in order to provide more focused results.

Data

Example: Entrepreneur compare results of Q by different Age, Occupation, Location- fine tuning can provide valuable insights particularly regarding the segmentation of the market

 Designed

to provide answers to three basic questions:

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Where have we been?(operational plan) History of marketplace Marketing Strengths & Weaknesses of the firm Market Opportunities & Threats
Where do we want to go (in the short term)?

Q addresses marketing Objectives & Goals- in next 12 months

How do we get there?

Q discusses Marketing strategy implementation- when it will occur- who will be responsible for monitoring

marketing plan should:

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Provide a strategy. Be based on facts/assumptions Be simple and short. Be flexible. Specify criteria for control.

Assignment Exams

Combination of product, price, promotion, and distribution and other marketing activities needed to meet marketing objectives.
Critical Decisions Quality of components or materials, style, features, options, brand name, packaging, sizes, service availability, and warranties. Quality image, list price, quantity, discounts, allowances for quick payment, credit terms, and payment period. Use of wholesalers and/or retailers, type of wholesalers or retailers, how many, length of channel, geographic coverage, inventory, and transportation. Media alternatives, message, media budget, role of personal selling, sales promotion (displays, coupons, etc.), and media interest in publicity.

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Marketing Mix Variable Product

Price

Channels of distribution

Promotion

 Define

the business situation. Define the target market: opportunities and threats. Consider strengths and weaknesses. Establish goals and objectives. Define marketing strategy.

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Information

for a new venture:

Describe how the product or service was developed. Why it was developed.(satisfy consumers needs)

Information

after a new venture has started up:

Present market conditions. Performance of the companys goods and services. Future opportunities or prospects.

 Target

market: specific group of potential customers toward which venture aims its marketing plan.

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Knowledge of this provides a basis for determining the appropriate marketing action strategy.

Market

segmentation: process of dividing a market into definable and measurable groups for purposes of targeting marketing strategy

Otherwise E have to identify a product or service that would meet the needs of everyone in the marketplace Allows the entrepreneur to more effectively respond to the needs of more homogeneous consumers.

 Decide

on general market or industry to pursue.

Henry ford manufactured a single product(one color,

one style, one size, etc) Reebok Discovered that many customers who bought running shoes were not athletes (comfort & Style)

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Divide

market into smaller groups based on:

Characteristics of the customer

Geographic Demographic Psychographic Desired benefits (e.g., product features) Usage (e.g., rate of use) Buying conditions Awareness of buying intention

Buying situation

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Select

segment or segments to target. Develop a marketing plan integrating product, pric distribution, and promotion.

Restaurant market is segmented by state, type of restaurant (fast food, family) R part of hospital, school, company etc

 Establish

realistic and specific goals and objectives.

Marketing goals and objectives respond to the question: Where do we want to go?. ( market share, profits, sales, number of distributors, new product launch, pricing policy, sales promotion & advertising support).

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Number

of goals or objectives can be limited to between six and eight.

 Specific

activities outlined to meet the ventures business plan goals and objectives.
or service

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Product

May consider more than the physical characteristics. Packaging, brand name, price, warranty, image, service, delivery time, features, style, and even the Web site.

Pricing

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Costs Competition Margins or markups

Distribution

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Provides utility to the consumer. Must also be consistent with other marketing mix variables.

Promotion

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Entrepreneur needs to inform potential consumers about the products availability or to educate the consumer Methods include: print, radio, or television, Internet, direct mail, trade magazines, or newspapers.