Chapter 6: Building a Powerful
Marketing Plan
Objectives |
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Upon completion of this chapter, you will be able to:
- Describe the principles of building a guerrilla marketing plan and explain
the benefits of preparing one.
- Discuss the role of market research in building a guerrilla marketing plan
and outline the market research process.
- Explain how small businesses can pinpoint their target markets.
- Describe the factors on which a small business can build a competitive edge
in the marketplace: customer focus, quality, convenience, innovation, service,
and speed.
- Discuss the marketing opportunities the World Wide Web (WWW) offers
entrepreneurs and how to best take advantage of them.
- Discuss the "four Ps" of marketing – product, place, price, and promotion –
and their role in building a successful marketing strategy.
Chapter 6: Building a Powerful
Marketing Plan
Chapter Overview
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- Describe the principles of building a guerrilla marketing plan and
explain the benefits of preparing one.
- A major part of the entrepreneur's business plan is the marketing plan,
which focuses on a company's target customers and how best to satisfy their
needs and wants. A solid marketing plan should: determine customer needs and
wants through market research; pinpoint the specific target markets the company
will serve; analyze the firm's competitive advantages and build a marketing
strategy around them; create a marketing mix that meets customer needs and
wants.
- Discuss the role of market research and outline the market research
process.
- Market research is the vehicle for gathering the information that serves as
the foundation of the marketing plan. Good research does not have to be
complex and expensive to be useful. The steps in conducting market research
include: defining the problem – "What do you want to know?"; collecting the data
from either primary or secondary sources; analyzing and interpreting the data;
drawing conclusions and acting on them.
- Explain how small businesses can pinpoint their target markets.
- Sound market research helps the owner pinpoint his target market. The most
successful businesses have well-defined portraits of the customers they are
seeking to attract.
- Describe the factors on which a small business can build a
competitive edge in the marketplace: customer focus, quality, convenience,
innovation, service, and speed.
- When plotting a marketing strategy, owners must strive to achieve a
competitive advantage - some way to make their companies different from and
better than the competition. Successful small businesses rely on six sources to
develop a competitive edge: a focus on the customer; devotion to quality;
attention to convenience; concentration on innovation; dedication to service;
and, emphasis on speed.
- Discuss the marketing opportunities the World Wide Web (WWW) offers
entrepreneurs and how to best take advantage of them.
- The Web offers small business owners tremendous marketing potential on par
with their larger rivals. Entrepreneurs are just beginning to uncover the Web's
profit potential, which is growing rapidly. Establishing a presence on the Web
is important for companies targeting educated, wealthy, young customers.
Successful Websites are attractive, inviting, easy to navigate, interactive, and
offer users something of value.
- Discuss the "four Ps" of marketing - product, place, price, and
promotion - and their role in building a successful marketing strategy.
- The marketing mix consists of the "4 Ps": Product. Entrepreneurs
should understand where in the product life cycle their products are. Place.
The focus here is on choosing the appropriate channel of distribution and using
it most efficiently. Price. Setting the right price for a product or
service is partly an art and partly a science. Promotion. Promotion
involves both advertising and personal selling.
Chapter 6: The Foundations of
Entrepreneurship
Small Business
Assignments |
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Select 6 of the following questions:
1. Define your marketing plan. What lies at the center?
2. What objectives should your marketing plan accomplish?
3. List sources of market information for your business
4. Describe several market trends that are driving markets into the
next decade and their impact on small businesses
5. Why is it important for small business owners to define their target
markets as part of their marketing strategies?
6. What is a competitive advantage? Why is it important for a
small business owner to create a plan for establishing one?
7. Describe how you could use the following sources of a competitive
advantage:
- a focus on the customer
- devotion to quality
- attention to convenience
- concentration on innovation
- dedication to service
- emphasis on speed
8. What marketing potential does the internet offer your business?
9. Explain the concept of the marketing mix. What are the four
p's and how do they relate to your business?
10. List and explain the stages in the product life cycle. How can you
extend a product's life?
Appendix to complete: Marketing Plan
and Product Plan
Chapter 6: Building a Powerful
Marketing Plan
Small Business
Links |
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Marketing
Market Research