CHAPTER 9

LEARNING OUTCOME
• Understand the importance of
preparing a marketing plan
• Describe the steps in preparing a
marketing plan
• Prepare a marketing plan for a
small business
Module Outline
 Introduction
 Steps in Preparing a Marketing Plan for Small
Businesses.
 Marketing Objectives
 Product or Service
 Target Market
 Market Trend and Market Size
 Competition
 Sales Forecast
 Marketing Strategy
 Marketing Personnel
 Marketing Budget
 evaluate
Introduction market
acceptance

identify develop
required A well strategies
prepared
resources to market
marketing
to execute plan helps
products
the entrepreneu or services
marketing rs to: of the
strategy business

estimate
marketing
financial
requireme
nt
Steps in Preparing a Marketing Plan
Determining Analyzing
Identifying
product or market size and
target market
service share

Preparing Developing
Assessing
marketing marketing
competition
budget strategy
1. Determining product or service Needs & wants of
customers

Guide in describing product

or services
Marketability of a
 value and • its formulation, product or service
benefits • ingredients used,
 uniqueness or • safety,
strengths • ease of use,
• life span,
• flexibility,
• assortment,
• location, operation
hours,
• personalization,
• extended warranty etc.
2. Identifying Who is the
What is their
consumer What is their
common needs or
of the common
wants that would be
product or characteristics?
satisfied by the
service?
product or service?

Broad Factors Example of Factors Example of Segmentations

Demographic a. Gender: male , female
b. Age: teenager, youth, adult, elderly
c. Education level: high school, tertiary education A retail outlet selling toys for big boys with tick pocket.
d. Income: Low, middle, high
Psychographic Lifestyle An organic food restaurant targeting the health
b. Preferences/ taste conscious group of customers.
c. Beliefs
Geographic a. By region A hypermarket whose target customers are residents
b. By states/district who live within 5km radius from the outlet
c. By parliamentary
d. Rural versus urban
e. By population density
Buying behaviour a. Units of purchase A cosmetic and toiletries producer targeting to sell to
b. Methods of payment companies who intend to promote their own labels.
c. Location of purchase
d. Frequency of purchase
e. Methods of delivery
3. Analyzing Market
Size and Market Share

Market Size
• Total potential purchase of target market
• Should be translated into monetary value
• Growing, remain the same or shrinking

Market Share
• A comparative measure to assess performance against
the competition
• Translated into percentage (%)
• Before and after existence
4. Assessing
Competition

Assess their market i.e.; product quality,

positions and pricing, distribution Duration in market
strategies and promotion

Strengths and
Customers
weaknesses
5)

To enable business The key idea is to 4 main strategies

to plan for its deliver customer (4Ps):
limited resources in satisfaction yet  Product ,
order to achieve provide business Pricing,
stated marketing with a competitive Place &
objectives advantage Promotion
 Marketing strategy
Product Strategy Pricing Strategy Place or Promotion Strategy
• Product strategy • Price is the value Distribution • Advertising
• Service strategy exchanged between the Strategy • Sales promotion
seller and the buyer in • Personal Selling
• Place strategy refers to
order for the buyer to • Publicity
possess, use or the decision made on
the location of the • E-MARKETING
experience the product
or service offered business
• Common pricing • Channel of distribution
methods is a network developed
• Pricing tactics to ensure product or
services reach target
• Factors to consider
consumers
• Factors to consider
Product Strategy

PRODUCT STRATEGY SERVICE STRATEGY

A product is a physical item that can be seen, owned, used or Service is intangible and cannot be seen or owned,
consumed but is useful, can be experienced and able to satisfy
customer needs and wants

Product Dimensions: Service Dimensions:

Service quality
Product attributes • Consistency
• Quality Service package
• Combination of services at competitive price
• Design Service differentiation
Trade name • Offering that is unique and can be differentiated
Brand name from the competitors
Packaging After sales services
Labeling • Follow-up
Warranty
After sales service
 3) Common Pricing Methods:

1) Definition-Price is the value • Based on Cost

exchanged between the seller Fixed Cost + Variable Cost 5) Pricing Tactics
and the buyer in order for the + Desired Margin
buyer to possess, use or • Based on Perceived Value
experience the product or • Based on Competition
service offered

• Discounting
2) Most often, price is in the • Purchase with purchase
form of monetary value paid • Psychological pricing
by the buyer to obtain the • Product bundle pricing
product or service

• Marketing 4) Factors
objectives Consider When
• Demand and supply Setting Price
• Competitor’s
pricing
 Place Strategy

Place strategy refers to

Choice of location is
the decision made on
crucial for most brick
the location of the
and mortar businesses
business

Channel of distribution
Distribution strategy for
is a network developed
consumer product and
to ensure product or
industrial product may
services reach target
vary
consumers
STRATEGY
 Type of
product

Market Target
coverage market
Factors to
Consider When
Determining
Distribution
Strategy

Product Transportation
standardization ease
Promotion Strategy
 Promotion is any coordinated effort taken to supplement the product, price and place
strategies in order to achieve marketing objectives.

Sales
Publicity Advertising
promotion

Personal
Selling
 ff o rt
e s e a
s a l n c e
na l f lu e
per so t o in
r s.
n on diu m u m e
d , e n s
Pai gh a m r of co
u
thro numbe
ar g e
l
Channel of adverting
Printed Newspaper, Magazines, Yellow pages, Brochures,
Business cards

Electronic and Digital Television, Radio, Internet, Sort messaging system

Outdoor Billboards, Banners, Transportation

Common sales
promotion
strategies:

Coupons Promotional activities or

incentives carried out or offered
within a set time frame to
influence purchase
Purchase-with-
purchase
Premiums Rebates Sweepstakes

Extended
Samples warranty
Point-of-
Contest purchase Free delivery
promotion
 Personal sales presentation
conducted by a trained sales
person to influence potential
customers. It is most often used
for products that require
demonstration or explanation

Efforts are taken to develop and

PUBLICITY
maintain a good relationship
with the public to ensure a good
favorable public image of the
business.
• E-marketing is the efforts to communicate, promote and sell products and other
services using electronic communication technology.
• E-marketing uses digital technologies to facilitate the selling of goods and
services.
• The purpose of e-marketing are :
to complement traditional marketing method
to keep pace with information communication technology (ICT) business trend

• Reach global market

• Lower cost
24 hours per day and 7 days per week marketing
• Personalization
Interactive marketing
8. Planning For Marketing Personnel
Determine number of supporting personnel
needed to undertake the marketing tasks – in-
house or outsource?

Examples:
• Marketing manager or executives
• Sales personnel
• Promotion personnel
• Distribution personnel
9. Preparing Marketing Budget
• Marketing budget refers to expenses incurred
in planning for the marketing aspect of the
proposed business or project. It consists of 3
components.

1. Investment on fixed assets

2. Allocation for working capital for marketing
activities
3. Other marketing expenses
 Marketing Budget Table
Items Fixed Asset Working Capital Other
(RM) (RM) Expenses
(RM)
Fixed Asset
Signboard 4,000
Working Capital
Salary/EPF/SOCSO
- Marketing Manager 3,000
- Salesman/promoter 1,500
- Promotion 500
Other expenses
Grand Opening 5,000

Total (RM) 4,000 5,000 5,000