Marketing plan for new ventures
A marketing plan helps in determining a clear, comprehensive approach to the creation of customer. The following elements are critical for developing this plan
1. Current marketing research
2. Current sales analysis
3. Marketing Information System (MIS)
4. Sales forecasting
5. Evaluation
Now we will go in deep about each of the points mentioned above
Current Marketing research:
The purpose is to identify customers- target markets- and to fulfil their desires. For current marketing research to be effective the following areas are to be kept in consideration
The company’s major strengths and weaknesses
These factors offer insights into profitable opportunities and potential problems and provide the basis for effective decision making.
Market profile
A market profile helps a company identify its current market and service needs: how profitable are existing company services? Which of these services offer the most potential? Which are inappropriate ? which will customer cease to need in the future ?
Current and best customers
Potential customers by either geographically or with an industrial wide analysis of its marketing area
Competition
By identifying the competition, a company can determine which firms are most willing to pursue the same basic market niche
Outside factors
This analysis focuses on changing trends in demographics, economics, technology, cultural attitudes and government policy. These factors may have substantial impact on customer needs and consequently expected services
Legal changes
Marketing research performs the important test of keeping management abreast of significant changes in government rates, standards and tax laws
Marketing research need not be extremely expensive
Presented next are some useful tips regarding low-cost research. These tips can be valuable to entrepreneurs who need research but lack the funds for sophisticated measures
1. Establish a contest that requires entrants to answer a few simple questions about the quality of your products or services. The entry form is dropped into a convenient deposit box at the exit door of your store or service department, and the drawing is held at months end
2. Piggy back a questionnaire about the quality of your products or services onto a company catalogue or sales brochure. Be sure also to ask what other items the customer would like to see the organization offer. Such a system funtions as an ongoing program of organizational evaluation.
3. Every organization receives the occasional complaint form a disgruntled customer. Instead of treating such situation casually, many organizations now adopte a management-by-exception philosophy and give grievances a high priority. Management follow-up with an in-depth interview often results in the revelation of unsuspected problems.
4. Develop a standard set of questions regarding the quality of your organization’s product and services that is suitable for administration by telephone. Have a secretary or program
Current sales analysis
An entrepreneur needs to continually review the methods employed for sales and distribution in relation to the market research that has been conducted. Matching the correct customer profile with sales priorities is a major goal in sales analysis. Following is a list of potential questions to be answered by this analysis
Do the salespeople call on their most qualified prospects on a proper and time allocation basis?
Does the sales force contact decision makers?
Are territories aligned according to sales potential and salespeople abilities ?
Are sales calls coordinated with other selling efforts such as trade publication advertising trade shows and direct mail?
Do salespeople ask the right questions on sales calls? Do sales reports contain appropriate information? Does the sales force understand potential customers needs?
How does the growth or decline of a customer or a prospects business affect the company's own sales ?
Marketing Information System (MIS)
It compiles and organises data relating to cost, revenue and profit from the customer base. This information can be used to monitor the strategies, decisions and programs concerned with marketing. As with all information systems designs.
The key factor that affects the value of such a system are
- Data reliability
2. Data usefulness or understandability
3. Reporting system timeliness
4. Data relevancy
5. System cost
Sales Forecasting
Here future sales are predicted using the historical sales figures by using statistical techniques. The disadvantage is that it may fail to reflect current market because of considering past data. However, sales forecasting can be very valuable when presenting the potential value of the venture to the investors.
Evaluation
The last step in marketing planing process is evaluation. A number of variable can affect the outcome of marketing planning, it is important to evaluate performance. A report is to be generated from a customer analysis on gain or loos of customers or their preference and reactions towards the product or service being provided by the new venture. This analysis can be measured against performance in sales volume, gross sales in money value or market share.
