CHAPTER 7The Marketing Plan.ppt

CHAPTER 7The Marketing Plan Looking AHEAD Describe small business marketing. Identify the components of a formal marketing plan. Discuss the nature of the marketing research process. Define market segmentation and its related strategies. Explain the different methods of forecasting sales. What is Small Business Marketing? Marketing Activities directing the flow of goods and services from producer to consumer or user. Small business marketing consists of those business activities that relate directly to: Identifying a target market Determining target market potential Preparing, communicating, and delivering a bundle of satisfaction to the target market The Three Levels of a Product/Service Marketing Philosophies Make a Difference Production-Oriented Emphasizes development of the product and production efficiencies over other activities. Sales-Oriented Favors product sales over production efficiencies and customer preferences. Consumer-Oriented All marketing efforts begin and end with the customer; focus is on the consumer’s needs—this philosophy is the most consistent with long-term success of the firm. Consumer Orientation—The Right Choice Reasons for Not Adopting a Consumer Orientation State of competition With no competition or high demand, firms focus on production. Production focus Entrepreneurs may have strong production skills and weak marketing skills. Focus on the present Entrepreneurs tend to focus on current success which is the result of an overemphasis on selling. The Marketing Plan and Supporting Marketing Activities Marketing Research Activities Market Analysis An evaluation process that encompasses market segmentation, marketing research, and sales forecasting Developing the Marketing Mix The combination of product, pricing, promotion, and distribution activities. The Formal Marketing Plan Market Analysis Customer profile A description of potential customers in a target market Sales forecasts “Most likely,” “pessimistic,” and “optimistic The Compe