The Organizational plan
Developing the management team
Developing an entrepreneurial team Full time commitment is a prerogative More than the skills and the experience they bring. It is
imperative that they share the vision and plan of the Entrepreneur.
Legal forms of Business – on ownership lines….
Sole proprietorship Partnership Company
Decisions for deciding forms of ownership
Ownership Liability of owners Costs of starting a business Continuity of business Transferability of interest Capital requirements Management control Distribution of profits and losses Attractiveness of raising capital
Other decisions…..
Organization structure Building a management team and a successful
organization culture Appointment of board of directors Appointment of board of advisors
The Marketing Plan
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.
The Marketing plan needs to answer these questions:
• -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 ResearchHow 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 ResearchStep 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 ResearchStep 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.
.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.
Marketing Research – Analyse Complexity of Buying Behaviour
CULTURALBELIEFS & VALUES, LIFE STYLES
SOCIOLOGICALSOCIAL CLASS,STRUCTUREFAMILY/GROUP INFLUENCE,LIFECYCLE, OPINION LEADERSHIP
ECONOMICPRICE, DELIVERY,PAYMENT TERMS,SALES SERVICE
INDIVIDUAL PSYCHOLOGICALFACTORSCOGNITION, LEARNING PROCESSES,INTERPERSONAL RESPONSE, ATTITUDESMOTIVATION, PERSONALITY THEORIES
BUYING PROPOSITION PRODUCT OR SERVICE
Understanding Consumer CharacteristicsCHARACTERISTICS Innovators
2-3%
Early Adopters
12-15%
Early Majority
33%
Late Majority
34%
Laggards
12-15%
PERSONAL
Social,
Income, Occupation,
Education,
Housing,
Family Influence,
Time orientation
PSYCHOLOGICAL
Nature of needs, Perceptions,
Self-concept, Aspiration Groups, Reference Groups
Changing PrioritiesStage Priorities Major Purchases
Fledging : Teens & early 20s Self,Socialising, Education Appearance Products, Clothing, Automobiles, Recreation, Hobbies, Travel
Courting :20s Self & Other, Pair bonding,Career
Furniture & Furnishing, Entertainment, Savings
Nest Building:20s &early 30s Babies & Career Home, Garden,,Baby Care products, insurnce
Full Nest 30-50s Children, Career, Midlife crisis
Children Food, clothing, 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
Analyse Target Market
OCCUPANTS WHOSERVICES WHATOCCASION WHEN
ORGANISATION WHO IS INVOLVEDOBJECTIVES WHY
OPERATION HOW
Marketing Strategy to be Based on WHO MAKES THE BUYING DECISIONS INITIATOR INFLUENCER DECIDER 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
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.