MARKETING PLAN:PROMOTING BUSINESS IN LOW COST, SUPPLY CHAIN, BUYER IDENTIFICATION

<< MARKETING PLAN:Situational Analysis, Macro â€“ Environment Situation, Marketing Objectives, Financial Objectives

HOW TO BE GOOD CLIENTS:CHANNEL BUYERS, HOW TO BE GOOD CLIENTS 14 RULES >>

Advertising and Promotion (MKT621)

Lesson 29

MARKETING PLAN

OVERVIEW

This lecture will explain various sales and marketing plans. In a situation where in the business

affordability does not warrant large expenses the methods to promote business in low cost will

be explained moreover the criteria to identify customers will be highlighted in different

methods and situations.

SALES & MARKETING PLANS:

Every marketing plan outlines each marketing event or action plan to increase sales. The plan

will generally cover a calendar year staggered by a month or by quarter.

Sales and Marketing plan should be based on short and long term company objectives and

marketing strategy. In the business plan Sales & marketing plans provide outline of each

marketing event for the year, covering following information:

1. Description of each event vehicle (e.g. media, promotion, trade, sales).

2. Timing of each event.

3. Event goals & objectives (e.g. volume, share gains)

4. Cost of each event.

PROMOTING BUSINESS IN LOW COST:

Business promotion is to running a successful business and to plan how to promote business

infect business is promoted by getting the word out.

Basically there are two axioms which should be taken into consideration before working out the

in expensive ways to promote your business.

1st Axiom: It has to be done consciously. Other people can't be relied upon to do it for you.

2nd Axiom: Like every other aspect of business it is budgeted.

Though a budgeted activity the business promotion does not have to be necessarily expensive.

There are at least eight inexpensive ways to promote business.

Eight Ways:

1. Use of Paper & Electronic Document: e.g. business stationery an ideal tool articles &

press releases; email etc.

2. Articles & Press releases: Well written articles can provide free advertising & build

positive word of mouth. Likewise Newspapers are \also excellent place\ to place your

promotional article.

3. Sending Out Press Releases: Your press release has to actually contain information

that is newsworthy.

4. Talk Show: Radio TV, Cable TV may be looking for some guests for their programs. A

great low cost way to promote your business.

5. Seminar or Presentations: You have expertise that other people are interested in. Why

not share that & promote your business.

6. Use Vehicle: One in every few vehicles has the name and phone number of a business

decorated on it. Another low cost way to promote your business.

Advertising and Promotion (MKT621)

7. Leisure Activities: There are all kinds of things & ways to promote your business

while you do what you love to do.

8. Give out free things: Like first 50 people visiting a particular event will get free

things/gifts.

HOW TO IDENTIFY CUSTOMERS:

There are customers for every business but why should we want to classify. The reason is that

some customers are more profitable than others while in some cases all customers could be

equally profitable. Classifying customers helps to take right action for them, targeting your

marketing and serving their different needs while improving your profits. Therefore

categorizing customers into groups by needs & identifying what is important to them allows

you to serve them better while fulfilling their desires with your products.

SUPPLY CHAIN:

Depending upon what you are selling, you may find the actual end user is down the line this

line is loosely called supply chain which represents "how" your product gets to your customers.

CUSTOMER:

A clear definition of who purchases directly from you is the simplest and most direct part of

classifying your customers.

NEW CUSTOMERS:

You can grow your existing business by going after new customers who are in your area but

who do not do business with you. There are many ways to do it...e.g.

· Change pricing structure.

· Advertise in different medium.

BUYER IDENTIFICATION:

Assuming that other factors in making the product available and known to buyer are in effect

Influences on the buyer is catalogued by:

1. Culture.

2. Demographics.

3. Lifestyle.

4. Psychology of wants & needs.

Besides the above influences on the buyer following other buyer Influences may be at work

under following circumstances:

1. Profitability of the item.

2. Discount deals available.

3. Advertising & promotion support programs.

4. Other cash deals.

5. Free goods available.

6. Sales Incentive programs.

7. Personal buyer seller relationship.

The above influences are further detailed below:

Profitability of the item: The higher the margin/ profit per item vs. competitive

category products, trade accepts regardless of quality.

Advertising and Promotion (MKT621)

Discount deals available: 10 to 25 % off invoices each time /quarter for all purchases

during the period are typical discounts for grocery & drug retailers.

Advertising & promotion support programs: Multimedia TV, radio print & PR

support etc. can be used many times a year.

Other cash deals: Misc. deals are offered, which are to capture customers with

conditions applied.

Free goods available: Some times stores offer incentives like one case free etc.

Sales Incentive programs: Special sales offering for greater productivity of sales

person.

Personal buyer seller relationship: Personal relationship between people help in sales.

It should be remembered that:

The more exact the identification of your target buyer, the more efficient your marketing

programs would be in generating sales from regular or heavy users. But target buyers can be

divided into two main groups:

1. End users

2. Channel buyers.

The end users and the channel buyers are further elaborated below:

End Users

If your customers are primarily the ultimate users of your product or service, identification is

generally in terms of demographics and lifestyles e.g.

Age - gender- ethnic background income - education location occupation - number of

people / family - children's ages. Lifestyle analysis is more concerned with "intangibles".

Cultural background religious beliefs political beliefs value systems recreation & hobbies

music preferences literature preferences - food preferences restaurant preferences

entertainment preferences - travel preferences social interaction patterns media habits.

Channel Buyers

If you sell to other businesses, who turn around and resell your products and services, your

buyers are mainly channel buyers. e.g.

1. Channel buyers from grocery & drug industry.

2. Whole country main distributors.

3. City / regional distributors.

4. Wholesaler buyers.

5. Individual store buyers.

The above various avenues clearly explain that ideally speaking you should always research

and test your idea against the realities of the market place. Basically well seasoned industry

expert always benefit from the analysis of the market environment in such a way that will help

them to evaluate the potential of an idea.

Channels are classified as under:

1. Business to business markets.

2. Government.

3. Consumer markets.

B to B & government buyers are subject to many different influences than buyers of consumer

goods.

i. Few buyers

Advertising and Promotion (MKT621)

ii. Larger business transactions.

iii. Regional concentration of buyers.

iv. Defined sales & broker relationships.

v. Dependent upon end-user buying patterns & demand.

vi. Demand for goods & services are not significantly affected by significant change in

price.

Business buyers take many factors into account before taking any buying decision. e.g.

i. Macroeconomic trends, nationally & internationally.

ii. Long term material supply trends & inventory requirements.

iii. Delivery rates, timing & reliability.

iv. Plant capacities.

v. Supplier's financial resources.

Table of Contents: