Contributed by: Arya Kumar

Chief ED & IPR UNIT

BITS, Pilani
A marketing plan outlines the specific actions you
intend to carry out to interest potential customers
and clients in your product and/or service and
persuade them to buy the product and/or services you
offer.
 For successful business marketing, you need to develop a
proper business marketing plan, and then gauge its
performance for your business growth. There are many
things that your business marketing plan needs to address
and these points may include some of the following:

• -What are your business marketing goals ?

• -What is your target audience ?

• -Deciding business marketing system

SWOT Analysis
A basic marketing plan begins with SWOT analysis
about your company and the SWOT should be :
 A summary of the key elements in your business
 Brief, concise and interesting, without being too abbreviated

 Focused on the real issues facing your company

 Action-oriented, so that positive proposals can be envisaged

Strengths- You can bank upon
these.
Weaknesses- Definitely need to
be corrected
Opportunities- Help you in
setting the target where you
want to reach.
Threats- Make necessary
contingency plan to combat
threats which would
automatically become a part of
the marketing plan.
Scope of Marketing Research
 Identifying Target Market
 Identifying Market Characteristics
 Measurement of Marketing Potential
 Competitors Analysis
 Sales Analysis
 Identify and forecast Business Trends
 Sales Forecasting
 New Product/Service Acceptance and Potential
 Long Range Forecasting of Marketing Mix Variables
 Pricing Strategies and Studies
 Market Research
How to collect certain information about your customers,
market and competitors. This information tells you about
your potential market, prices, trends, competition, target
customer, its preferences, income, habits, accessibility,
convenient time and plans. This information should be
accurate, and reliable to help you make the right business
decision.
Market Research
Step One : Defining the Purpose or Objectives
 Ask people what they think of the product or service and
collect some background demographics & attitudes of these
individuals.
 How much potential customers would be willing to pay for

the product or service.

 Where 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.

Market Research
Step Two: Gathering Data from Secondary Sources
Data that already exists i.e information from
 Trade magazines
 Libraries

 Government Agencies

 Universities

 Internet

The entrepreneur should exhaust all possible secondary data

sources, observation, and networking before beginning any more
costly primary data research.
Market Research
Step Three: Gathering Information from Primary
Sources
Information that is new is Primary data and involves
data collection procedures like
 Observation
 Networking
 Interviewing
 Focus Groups
 Experimentation

Data collection is done with the help of Data Instruments like Questionnaire.
FOCUS Groups: They are more informal method of gathering in-
depth information. A focus group is a sample of 10-12 potential customers
who are invited to participate in a discussion relating to the Entrepreneurs’
research objectives.

Step Four: Analyzing & Interpreting the results

The results should be evaluated and interpreted in response
to the research objectives. The data can then be cross
tabulated to give better insights and interpretations
regarding the segmentation of the market.
 SOCIOLOGICAL
SOCIAL CLASS,
CULTURAL ECONOMIC
STRUCTURE
BELIEFS & PRICE, DELIVERY,
FAMILY/GROUP
VALUES, LIFE PAYMENT TERMS,
INFLUENCE,LIFE
STYLES SALES SERVICE
CYCLE, OPINION
LEADERSHIP

INDIVIDUAL PSYCHOL-
OGICALFACTORS
COGNITION, LEARNING PROCESSES,
INTERPERSONAL RESPONSE, ATTITUDES
MOTIVATION, PERSONALITY THEORIES

BUYING PROPOSITION PRODUCT OR SERVICE

Understanding Consumer Characteristics
CHARACTERISTICS Innovators Early Early Late Laggards
2-3% Adopters Majority Majority 12-15%
12-15% 33% 34%

PERSONAL
Social,
Income, Occupation,
Education,
Housing,
Family Influence,
Time orientation

PSYCHOLOGICAL
Nature of needs,
Perceptions,
Self-concept,
Aspiration Groups,
Reference Groups
Changing Priorities
Stage Priorities Major Purchases

Fledging : Teens & early 20s Self,Socialising, Education Appearance Products,

Clothing, Automobiles,
Recreation, Hobbies, Travel

Courting :20s Self & Other, Pair Furniture & Furnishing,

bonding,Career Entertainment, Savings

Nest Building:20s &early 30s Babies & Career Home, Garden,,Baby Care
products, insurnce

Full Nest 30-50s Children, Career, Midlife Children Food, clothing,

crisis education, transportation, life
counseling

Empty Nest 50-70 Self & others, relaxation Furniture, Entertainment,

Travel, Hobbies, Luxury
Automobiles, Investments

Sole survivor 70-90 Self, health,loneliness Health care , Diet, Security,

Comfort, TV, Books, Long
distance telephone services
 OCCUPANTS WHO
SERVICES WHAT
OCCASION WHEN
ORGANISATION WHO IS INVOLVED
OBJECTIVES WHY
OPERATIO HOW
Marketing Strategy to be Based on
WHO MAKES THE BUYING DECISIONS
DECIDER
INFLUENCER
BUYER
USER
GATE KEEPER
Characteristics of a Marketing Plan
Should provide a strategy for accomplishing
company goals and missions
Should be based on facts and valid assumptions
Should provide for continuity so that future plans
can be built on it for long-term goals
Should be simple and short
Should be flexible i.e. should provide scope for
inclusion of “what if” scenarios
Should specify performance criteria that will be
monitored and controlled
Marketing Plan- The Algorithm
 Defining the Business Situation – Describe the
past and present business achievements of the new
venture.
 Defining the Target market –
 Market Segmentation- Dividing a market into
definable and measurable groups for the purpose of
targeting market strategy.
 Market Segmentation- The process of segmenting & targeting
the market should process in the following way
 Decide what general market or industry you wish
to pursue
 Divide the market into smaller groups based on
 Characteristics of the customer
 Geographic
 Demographic
 Psychographic
  Buying situation
 Desired benefits (e.g. Product features)
 Usage (e.g. frequency of usage)
 Buying conditions (e.g. time available & product purpose)
 Awareness of buying intention (e.g. familiarity of product &
willingness to buy)

 Select segment or segments to Target

 Develop a marketing plan integrating
product, price, distribution & promotion
(together called THE MARKETING MIX)
Marketing Plan- The Algorithm Contd….
Considering the Strengths and Weaknesses – The
SWOT analysis which was discussed earlier.
Establishing Goals & Objectives – Asking oneself
“Where do we want to go?” in terms of Market share,
profits, sales, market penetration, new products
launching etc. All such goals n objectives should be
quantifiable and could be measured for control
purposes.
 Marketing Plan- The Algorithm Contd….
 Defining Marketing Strategy – Outline all the
activities needed to meet the venture’s business
plan goals & objectives.

 The 5-P’s
 In the marketing plan, you should endeavor to
follow best practice to maximize your competitive
advantage in each of the following key areas:
Product – packaging, the brand name, warranty,
image, service, delivery time, features, style etc.
Price – Pricing of a product or service has to be done very carefully
considering numerous things like quality, prospective demand,
margins, competitor’s prices, discounts, market segmentation etc..

Promotion – The promotion plan itself a mini-marketing plan.

Advertising is an effective as well as an expensive way & has to be
taken care of. The procedure to be followed includes :

• Set specific campaign objectives (building sales, market share)

• Decide your strategy (budget, media choice, geographical profile)
• Target the Audience (market segment, demographic profile)
• Decide the advertising content (specific product/service benefits to
highlight)
• Decide the execution and style
Place (Distribution Plan)- The distribution plan must
match the other elements of the Marketing MIX to
maintain the differentiation and focus of the Company.
If your product is of highest quality, with price &
promotion to match, it must be available in the major
quality stores.
The choice of distribution channel, therefore can make
an important contribution to both your company
differentiation & to reaching your target group of
customers.
People – The final ingredient in the marketing plan
jigsaw must be quality salespeople who can consistently
maintain your marketing differentiation.

A well remunerated & motivated staff will act as

enthusiastic sales promoters and act as eyes and ears of
the company in the competitive market place.
 Marketing Plan- The Algorithm
Coordination of the planning process
Contd….

Designating responsibility for implementation

Budgeting the Marketing Strategy

Implementation of the Market Plan

Monitoring Progress of Market Actions

Why some Plans fail ?
Lack of a real plan (particularly regarding goals &
objectives)
Inadequate situational analysis – There is no point in
deciding where you want to go if you do not know “where
you are?” and “where you have been?”
Lack of Goal Clarity and Unrealistic Goals – This generally
happens due to lack of understanding of the situation.
Unexpected competitive moves, product deficiencies,
Delay in Getting Finance, and acts of God.