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TOPIC 3: Marketing Plan
Contents
Marketing Concepts
Market Size, Target Market and
Market Share.
Markets Competitors
Sales Budget
Marketing Strategies: 4Ps
2
Introduction
Marketing activities - identifying the particular
wants and needs of a target market, and try to give
services better than the competitors.
Involves a market research - analyzing customers
needs, and making strategic decisions about
product design, pricing, promotion and distribution.
The goal of a market analysis is to determine the
attractiveness of a market and to understand its
opportunities and threats as they relate to the
strengths and weaknesses of the firm.
3
What is a Marketing?
Marketing is the management process that identifies,
anticipates and satisfies customer requirements
profitably - The Chartered Institute of Marketing
The right product, in the right place, at the right time,
and at the right price - Adcock et al
Marketing is the human activity directed at satisfying
human needs and wants through an exchange process -
Kotler 1980
Marketing is a social and managerial process by which
individuals and groups obtain what they want and need
through creating, offering and exchanging products of
value with others - Kotler 1991
4
Marketing Concept
The philosophy that firms should analyze
the needs of their customers and then
make decisions to satisfy those needs,
better than the competition.
Adam Smith (1776) The Wealth of
Nations wrote that the needs of
producers should be considered only with
regard to meeting the needs of
consumers.
5
Marketing Concept
The key questions;
What do customers want?
Can we develop it while they still want it?
How can we keep our customers satisfied?
Marketing Concept
Relies upon marketing research to define
market segments, their size, and their
needs.
To satisfy those needs, decisions will
then made on the controllable
parameters of the marketing mix.
Product/Service
Price
Distribution (Place)
Promotion
10
Marketing Process
The marketing process way to discover
customer needs and bring to market,
products that satisfy those needs.
In a sequence steps: the situation is
analyzed (to identify opportunities), the
strategy is formulated, tactical decisions
are made, implementation of marketing
plan and the results are monitored.
11
Marketing Strategy
Political stability
Environmental protection laws
Taxation policy
Employment laws
Government policy
Legislation
Trade regulation and tariff
17
Inflation/interest rate
Employment (labour costs, skill level of workforce)
Economic growth rate
Discretionary income
Infrastructure quality
Efficiency of financial markets
18
Demographics
Distribution of income
Social mobility
Lifestyle changes
Consumerism
Levels of education
Culture
19
20
Marketing Concept
Relies upon marketing research to
define market segments, their size, and
their needs.
To satisfy those needs, decisions will
then made on the controllable
parameters of the marketing mix.
21
Marketing Research
the systematic gathering,
recording and analysing of data
about problems relating to the
marketing of goods and
services
American Marketing Association
22
24
Attitude measurement
Cognitive component (know/believe about an act/object)
Affective component (feel about an act/object)
Cognitive component (behave towards an object or act)
25
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29
31
Market Competition
Competitors - Identifying the existing
competitors in the target market. It
can be tabulated as following:
Competitors
name
Expected
sales
%Market
share
Estimated Sales
Loss
Because of You
Shadira
RM120,000
40%
RM70,000
Felisa
RM90,000
30%
RM60,000
Others
RM90,000
30%
RM50,000
TOTAL
RM300,000
34
Forecasted Sales
Quantity
Average price/
Total sales
*Average Cost/
Total Cost
Gross Profit
(customer) (1)
Quantity(RM)(2)
(1)x(2)
Quantity(RM)
(1x4)
(3-5)
30
100
3,000
52
1,560
1,440
20
100
2,000
52
1,040
960
50
100
5,000
52
2,600
2,400
70
100
7,000
52
3,640
3,360
80
100
8,000
52
4,160
3,840
90
100
9,000
52
4,680
4,320
90
100
9,000
52
4,680
4,320
90
100
9,000
52
4,680
4,320
90
100
9,000
52
4,680
4,320
10
90
100
9,000
52
4,680
4,320
11
100
100
10,000
52
5,200
4,800
12
100
100
10,000
52
5,200
4,800
TOTAL
900
100
90,000
52
46,800
43,200
Month
35
Marketing Concept
Relies upon marketing research to define
market segments, their size, and their
needs.
To satisfy those needs, decisions will
then made on the controllable
parameters of the marketing
mix.
36
37
Product
Price
Place (Distribution)
Promotion
38
Brand name
Functionality
Styling
Safety
Packaging
Repairs and support/warranty
Accessories and services
39
Pricing Strategy
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Price flexibility
40
41
42
44
45