CHAPTER 10:
MARKETING PLAN
LEARNING OUTCOMES
1. Understand the importance of preparing a marketing
plan
2. Identify marketing plan components
3. Describe the steps in preparing a marketing plan
4. Prepare marketing plan
INTRODUCTION
❑ One of the major components in a Business Plan.
❑ Outlines the marketing mix strategy for the business by
focusing at few important elements.
❑ Allow efficient handling the marketing aspects of the
business - guide marketing decisions.
MARKETING PLAN
1. PRODUCT OR SERVICE DESCRIPTION
2. TARGET MARKET
3. MARKET SIZE
4. COMPETITOR ANALYSIS
5. MARKET SHARE
6. SALES FORECAST
7. MARKETING STRATEGY
8. MARKETING BUDGET
1. PRODUCT OR SERVICE DESCRIPTION
❑ Understanding a product or service the business offers
❑ Capitalize on the uniqueness or strengths
❑ Essential before designing a workable and effective
marketing plan.
❑ Determine tangible vs intangible product, needs vs wants
Ingredients
Personalization Safety
Certification Packaging
Assortment
Ease of use
Location
2. TARGET MARKET
❑ Group of buyers with similar needs or wants
❑ Planning marketing strategy to ‘tackle’ and attract that
specific group of customers
❑ Market categories – consumer, industrial, government
❑ Market segmentation commonly used
3. MARKET SIZE
❑ Total potential purchase of a target market.
❑ Determined in terms of unit or money value.
❑ Calculated or estimated based on available facts -
indicator of potential purchase of a target market.
❑ Growing, remain the same or shrinking
EXAMPLE
Population: Residential area in Seksyen 7, Shah Alam - 2500 households
Assumptions:
❑ 40% consume at least once a week with average spent per visit is
RM20
❑ 20% consume on a monthly basis with average spent at least RM30
Calculations
❑ Frequent customer = 2500 household x 40% x RM20 x 4 weeks =
RM80,000
❑ Infrequent customer = 2500 households X 20% X RM30 = RM15,000
❑ Estimated Total Market Size = RM80,000 + RM15,000 = RM95,000
4. COMPETITOR ANALYSIS
❑ Those offering identical, similar, alternative or
substitute products.
❑ look for their strengths or weaknesses.
STRENGTHS WEAKNESSES
Competitor A
Competitor B
Competitor C
5. Market Share
❑ The percentage of sales captured by the company
from the total market size.
❑ Comparative measure to assess performance against
the competition
❑ Before and after entering market.
% Before RM % After RM
Competitor A 50 47,500 48 45,600
Competitor B 30 28,500 28 26,600
Competitor C 20 19,000 18 17,100
YOU - 6 5,700
Total 100 95,000 100 95,000
6. Sales Forecast
❑ Sales estimation within a specific period.
❑ Basis to prepare the cash budget.
❑ Quoted in RM
❑ Show sales for 3 years (1st yr monthly)
❑ Growing, static or shrinking
Month Product Sales (RM)
1 (new entry) 5700
2 5900
3 6000
4 6000
5 6300
6 (school holidays) 7000
7 6500
8 6700
9 7000
10 7200
11 7900
12 (school holidays) 8200
SALES Y1 80400
SALES Y2 88,440 (10%)
SALES Y3 101,706 (15%)
7. Marketing Strategies
❑ To plan for its limited resources in order to achieve stated
marketing objectives
❑ The key idea is to deliver customer satisfaction yet provide
businesses with a competitive advantage
❑ 4 main strategies (4Ps):
➢ Product , Pricing, Place & Promotion
a) Product Strategy
❑ Product is a physical item that can be seen, owned,
used or consumed.
❑ Ideas and creations of the minds can also be
regarded as product.
❑ Service is intangible and cannot be seen or owned,
but is useful, can be experienced and able to satisfy
customer needs and wants
❑ Product strategy refers to a product, service or a
combination of both.
a) Product Strategies:
❑ Quality
❑ Features
❑ Design
❑ Brand
❑ Packaging
❑ Warranty
❑ After Sales Service
b) Pricing Strategy
❑ Price is the value exchanged between the seller and
the buyer in order for the buyer to possess, use or
experience the product or service offered.
❑ Price is in the form of monetary value paid by the
buyer to obtain the product or service
b) Pricing Strategies:
▪ Cost-based pricing
▪ Value-based pricing
▪ Competition pricing
▪ Price lining
▪ Discounting
▪ Purchase with purchase
▪ Product bundling
▪ Segmented pricing
c) Place/ Distribution Strategy
❑ Decision made on the distribution line for the business.
❑ How product or services reach target consumers.
❑ Distribution strategy differs for consumer product and
industrial product.
Distribution Strategies
Manufacturer/Producer
Wholesaler Wholesaler
E-Intermediaries
Retailer Retailer
Consumer
Determination of Distribution Channel
❑ Target Market
❑ Market Coverage
❑ Transportation
❑ Product Standardisation
d) Promotion Strategy
❑ Any coordinated effort taken to supplement the
product, price and place strategies in order to achieve
marketing objectives.
❑ Strategies:
➢ Advertising
➢ Sales promotion
➢ Personal Selling
➢ Publicity
Outdoor
• Billboards
• Banners
Printed • Transportation
• Newspaper
Electronic and Digital
• Magazines
•Television
• Yellow pages •Radio
• Brochures •Internet
• Business cards •Sort messaging system
Advertising is a paid, non personal sales effort through
a medium to influence a large number of consumers.
❑ Sales promotion is promotional activities or
incentives carried out or offered within a set time frame
to influence purchase
❑ Common sales promotion strategies:
➢ Rebates
➢ Coupons
➢ Purchase-with-purchase
➢ Samples
➢ Point-of-purchase promotion
➢ Sweepstakes
➢ Extended warranty
Personal Selling
❑ Sales presentation conducted by a trained sales
person to influence potential customers.
❑ Often used for demonstration or explanation.
Publicity
❑ Efforts taken to develop and maintain good
relationship with the public to ensure good favorable
public image of the business.
❑ ie influencer, artists.
8. Marketing Budget
SUMMARY
❑ A marketing plan is significant to guide entrepreneurs in
undertaking their marketing strategies and allocating their
resources in attempts to achieve their marketing
objectives.
❑ The process of preparing a marketing plan requires
entrepreneurs to gather valuable and reliable data and
information to make good projections on the revenue of
the proposed business.
