Question

Explain the first three steps involved in preparing the marketing plan.

Answer 1

Potential investors regard the marketing plan as critical to the success of the new venture. Thus, the entrepreneur should make every effort to prepare it as comprehensive and detailed. Generally, procedure for preparing the marketing plan involves following three steps:

1. Business situation analysis - A review of past performance and achievements of the enterprise are stated here in but for a new venture, focus shifts rather towards:
   1. Personal profile of the entrepreneur
   2. Emphasis on products development
   3. What 'need' it satisfies
   4. Any other enterprise/experience of the entrepreneur
   5. Any marketing segmentation, if planned.
2. Identify the target market - For a new venture, it's very essential to clearly define the specific group of potential customers whose needs the enterprise aims to fulfill. This identification of the "target market" is a pretty tedious task as it involves: 
   1. Deciding what the general market or industry entrepreneur wishes to pursue is based on market research or industry analysis done and complied with by competent people or entrepreneurs.
   2. Divide the market into smaller groups based on:
      1. Consumer's characteristics viz.
         • Geographic (State, Country etc.)
         • Demographic (Sex, age, etc.)
         • Psychographics (Personality, lifestyle, etc.)
      2. Buying situations viz. Buying conditions (time available etc.)
         • Buying conditions (time available etc.)
         • Usage
         • Desired benefits (features of product)
   3. Select segment or segments to target.
   4. Develop a marketing plan integrating according to product, price, distribution, promotion.
3. Conduct SWOT analysis - It is important for the entrepreneur to consider in the 'target market' his/her enterprise's:
   1. Strengths
   2. Weaknesses
   3. Opportunities
   4. Threats
      Marketing plan needs to consider the strengths and weaknesses of the new venture to ensure its success.