5.3

• Marketing Plan: a document that lists activities

  aimed at achieving particular marketing

  outcomes in relation to a good or service. The

  plan provides a template for future action

  aimed at reaching marketing objectives.
• Customer base: the group of customers

  who might be expected to purchase a

  business’s goods and services
• Product Mix: the total range of products

  offered by a business
• Sales Analysis uses sales data to evaluate

  the business’s current performance and

  the effectiveness of the marketing mix.
• Marketing profitability analysis: a

  method used by the business to break

  down its total marketing coasts into

  specific marketing activities.
• Market share: the business’s share of

  the total industry sales for a particular

  market or product.
• Marketing is vital to the existence of a business. Just because

  someone invents a new product or improves an existing one does not

  guarantee customers will buy it.
• Without some form of marketing, customers may not even be aware

  of a product’s existence, regardless of how ‘record breaking’, ‘new

  and improved’ or ‘revolutionary’ it may be.
• For a business to achieve its main objective of maximising sales and

  profit, it must develop and implement an effective marketing plan.
• Marketing is a total system of interacting activities

  designed to plan, price, promote and distribute products

  to present and potential customers.
• ‘What

  do customers want to buy — now and in the future?’ This

  is the essence of marketing — finding out what customers

  want, then attempting to satisfy their needs.
• Marketing is not the same as advertisement, it may

  include it but has multiple layers than just product

  promotion.
• Marketing is a way of thinking. Everything a business does

  should be directed towards putting the customer at the

  centre of its thinking. To do this successfully requires

  adopting a customer-oriented approach to marketing.
• By identifying the customer base, the business owner can ensure

  that the offered product is of value to the customers, there is a

  connection between target customer and the product, and

  that the target customer will repeat buy.
• Identifying the customer base will involve market research and

  the development of a clear understanding of who will purchase

  the good or service.
• Once a business has identified the

  customer profile, it is important to

  ensure that:

  • the product offered is one that is

  likely to be of particular value to

  that customer

  • the marketing plan can

  maximise the likely connection

  between the good or service,

  and the target customer

  • the product, and marketing

  approach, will be such that

  targeted customers will return for

  repeat purchases.
• A major aim of a business is to make profit, a

  business owner seeks to achieve this through:

  ▪ Increasing the value of volume of sales

  ▪ Increasing market share

  ▪ Expanding the size of the business
• A key factor in achieving a profit is the revenue

  earned from sales.

   To increase sales, a business will need to use

  marketing to reach large numbers of consumers

  who display the characteristics of its customer

  profile.

   Understanding the customer base and

  recognising those who could be a part of the

  base allows for marketing to targeted efficiently.
• All marketing plans aim to achieve a specified market

  share by better understanding and responding to the

  series of the different target customers
• Expanding the size of a business is likely to be a

  result of the customer base continuing to grow.
• Businesses are usually keen to increase their

  product mix, as this will increase profits in the long

  term.
• To develop the ideal product range, businesses

  must understand customers’ needs. Ideally each

  product should attempt to satisfy the needs of

  different target markets.
• High levels of customer service will result in

  improved customer satisfaction and a positive

  customer reaction to the products purchased.
• This established a sound customer base, with the

  possibility of repeat purchases.
• Strategies for maximising customer services include:

  ▪ Anticipating market trends by conducting research

  ▪ Finding out what competitors are offering.

  ▪ Reviewing the product mix
• Marketing objectives need to be able to

  contribute to the overall business

  objectives, and it is important to be able to

  evaluate marketing strategies to ensure

  they are actually achieving this.
• Performance indicators are the means

  by which a business can measure its

  performance and evaluate the degree

  to which it is achieving its objectives.

  These are some indicators a business

  can use:

   1. Sales Analysis (most common

  method)

   by comparing forecast sales (what

  was expected) with actual sales

  (what happened), the business can

  determine the success of its

  marketing strategy.
• Marketing involves:

  • creating a product or service that a consumer wants, at a

  price that he or she can afford

  • raising awareness of the product or service (promotion)

  • distributing the product or service so that it reaches the

  customer at the right time and location.
• It is important for a business to identify its customer base (i.e. the

  type of person who is likely to purchase its product).
• Business objectives are the overall goals the business wishes to

  achieve. In order to achieve business objectives, marketing

  objectives and strategies must be established. Market strategies

  should take into account objectives such as increasing sales,

  increasing market share, expanding the size of the business and

  maximising customer service.
• Relevant performance indicators, such as sales performance,

  movements in market share and changes in market profitability,

  should be monitored and evaluated by effective managers