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Chapter 10 Mind Map

Entrepreneurship Chapter 10 Mind Map

Jignesh Mistry

on 23 May 2014

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Transcript of Chapter 10 Mind Map

Chapter 10 Mind Map

Why is Ongoing Market Research Important?
In business change is constant; you must be able to stay on top of any changes. If you do not, you may lose customers and miss promising opportunities.
Revising Your Marketing Plan and Mix
You may need to change other strategies to get the right mix:
• Situation
• Change in Product Strategy
• Change in Price Strategy
• Change in Promotion Strategy
• Change in Place Strategy
• Change in People Strategy

The result of this review may be expansion and revision. You may decide to add diversification. Definition: Diversification is the process of investing in products or businesses with which you are not currently involved.

Marketing and market planning
Marketing and market planning is important to every business because the success of a business is determined in the market place. It involves the process of developing, promoting, and distributing products to satisfy the objectives of customers and businesses.
Developing marketing mix
The marketing mix is made up of five marketing strategies you will use to reach your market.

Commonly referred to as the five P's:
• Product
• Place
• Price
• Promotion
• People

The strategies must be coordinated to influence the target market. The wrong combination will produce less than satisfactory results.

Reviewing Your Marketing Plan and Mix
There are many benefits to ongoing market research. It provides information you need to make adjustments to your marketing plan.
Reviewing Your Marketing Plan and Mix Cont'd
The Place Strategy
The place strategy involves how you will deliver your goods and services to customers.
The People Strategy
The people strategy means assembling, preparing, and maintaining the people who will help you achieve success. The actions, attitudes, and individual decisions of employees will impact your business on a daily basis.
Ongoing Market Research
To keep up with what is going on in the world you must do market research. You will have large amounts of data to deal with over time but how you deal with it is up to you.
Marketing Information
An effective way to address these changes is to put a marketing- Information management system in place. With a management system in place then you can easily access, analyze and use the data when you want to make adjustments to the marketing plan.
Changes to the Product Strategy
A change in any of your products could affect other products. Changes may stimulate sales through increased traffic. However, changes could possibly cause a loss of sales if there is a negative reaction from customers.
Making Changes to the People Strategy
The shift in demand changes in the nature of the business or growth. If the demand for your goods or services goes down you may need fewer people. If demand goes up you may mean if you may need more people. Qualifications of your workforce will change as well. As your business grows human resources responsibilities become more formalized and expand. Team-building responsibilities many shifts to others in your organization.
Making Changes to the Price and Promotion Strategies
Planning for the long term.
Marketing plans
Definition: a marketing plan is a blueprint used by a business to guide its marketing activities to a desired conclusion. The plan is built on information obtained through market research and on your intentions for the company.
Information: Includes a profile of the target market, marketing objectives, mix of marketing strategies, marketing tactics, and a marketing budget.

Forming marketing objectives
Marketing objectives are goods a business wants to accomplish through its marketing efforts.

Start up marketing plan objectives:
• Creating awareness for your business
• Educating the target market about the features and benefits of your products
• Understand the current and future needs of your target market
• Reaching specific sales projections
• Obtaining projected market share
• Building a repeat customer and/or referral base

*The objectives must be measurable to ensure that they can be monitored and controlled, it is best to limit the number of objectives

The Product Strategy
The product strategy deals with the goods or services your business will provide. This section will help you mold those efforts into a product strategy.
Channels of Distribution
A channel of distribution is the path a product takes from producer (or manufacturer) to final user (or consumer).
To formulate your place strategy, you need to understand the possible channels of distribution.

Direct and Indirect Channels
A direct channel moves a product from producer to consumer with no one in between (ex service businesses). An indirect channel employs intermediaries. These are people or businesses that move products between producers and final users (ex wholesalers and retailers).
Basic Hiring Criteria
Hiring the right people will help you to reach your objectives quicker.
Developing Employees
Employee development consists of two parts:
1. Orientation, which includes your vision for the company.
2. Providing training for employees need now and in the future.

Establishing a Productive Environment
In a productive environment, employees consider themselves in a winning team.
By Jignesh, Victoria, Mitchel, Mark, and Damian
Primary Source of Information
Having another source of primary Information that can be conducted by mail, over the phone or internet, in personal interviews and through focus groups.
Secondary Sources of Information
Your operations records will provide the secondary information accounting records and sales receipts indicate your expenses. They also show which products are moving and which are not. You can collect and keep a chronological file of information that is pertinent to your business and industry.
Adding Products
Ask yourself if there is a sufficient demand to add the new product and determine if the product is consistent with your current business.
Eliminating Products
One reason to eliminate a product is poor sales. Not selling an item can lead to a build of an inventory and financial loss.
Changing Products
Changing the style or design of your product can give a competitive edge. Your changes must be consistent with customer demand. Changing your product may affect your prices and distributions. Timing to must be considered. You want your offerings to be up to date, but you do not want to be ahead of the market.
Identifying New Uses for Products
Identifying new uses for products can expand its market or extend its life.
Changing Brands
If you manufacture products under different brand names, you may want to consolidate them all under one brand. This helps build brand loyalty. You may choose to sell your own brand.

A private brand is a brand that is owned and initiated by a wholesaler or retailer.
Changing Packaging or Labels
You may also want to try changing your packaging and labels to enhance the attractiveness and salability of your product.
Revising Guarantees and Service Policies
A guarantee is an assurance of the quality of a product.

A business can improve or add guarantees and service policies.

Making Changes to the Place Strategy
Most likely to make changes in your ongoing place strategy with regard to location, layout, and availability. You may even make changes in your distribution.
Improving Location
As your business grows you may look for ways to improve your location. You may want to move or expand your business.
Rearranging Layout
May want to rearrange the physical layout of your operation. For retail and service businesses, this change can enhance sales.
Increasing Availability
Allows customers to do business with you.
Changing Channels of Distribution
The type of business you have and where you are in the channel determine your choices.
Product Features and Benefits
A product is made up of all of the features and benefits it offers to consumers. You must think of features and benefits that your customers will find desirable.
Branding, Packaging, and Labeling
A brand is the name, symbol, or design used to identify a product. A package is the physical container or wrapper that holds the product. The label is the part of the package used to present information.
Product Selection
What products and/or services will your business offer? The answer depends on whether you are manufacturing or reselling your products.

Manufacturing a product involves several steps:
1. First, you generate product ideas and sort out the good from the bad.
2. Next, you study the potential costs and revenues of product you have selected.
3. You develop the product and test-market it.
4. Finally, if every thing looks promising, you introduce the product.

Choosing products for resale is a larger matter of gathering information.

Product Positioning
Product positioning refers to how consumers see your product compared to the competition’s product.
Positioning of the product can be achieved through quality, availability, pricing, and uses. Branding, packaging, and labeling can also have a bearing on your product’s image and, thus, on its positioning.

Product Mix
Your product mix is all of the products a company makes or sells.
Information: If you plan to offer multiple products, you should think about how they relate to one another.

Questions to ask About Product Decisions
As you develop your strategy, keep your target market in mind.
Impact of Technology on the Product Strategy
Technology has greatly affected the manufacture of products. Products function better, are more precise, and include more unique features. Production costs are cheaper. Packaging and labeling also benefit from technology. Advances in technology have resulted in the emergence of new products and services. Other goods and services may spin off from new products.
Selecting a Channel Distribution
The type of business you have determines where you fit in your channel of distribution. If you are a producer, you send products through a channel. If you are a retailer, you receive them. If you are a wholesaler, you do both. If you can find a highly efficient channel, you can gain a competitive edge.
Intensity of Distribution
You have three choices:
• Intensive distribution – involves placement of a product in all suitable sales outlets
• Selective distribution – limits the number of sales outlets in a given area
• Exclusive distribution – limits the number of outlets to one per area

The physical movement of goods is part of your place decisions.
Location, Layout, and Availability
Locations, or site considerations, are also important to your business strategy. They are especially important to retail and service businesses that depend on customers to come to them.
Impact of Technology on the Place Strategy
The internet has had the biggest impact on channels of distribution. In particular, distributors have seen an increase in productivity. Their customers have benefited as a result. Software programs can be used to expedite layout design.
Rewarding Your People
Recognize and reward employee contributions and achievements.
The Price Strategy
The price strategy impacts businesses in two ways:
1. It is a financial decision that ensures costs are covered and a profit is made.
2. Price is a marketing strategy that affects the customers’ motivation to buy. Setting the price too high may turn away potential customers and setting the price to low may lead customers to believe that the product lacks quality.

The Promotion Strategy
The promotion strategy is designed to tell potential customers about your products and their characteristics, benefits, and availability. It should also be used to enhance your company’s image. It involves planning, determining the right mix, and selecting specific activities.
Marketing Tactics
Activities that need to be taken to carry out the marketing plan.
To apply marketing strategies, you must develop an action plan to put the components of the mix into operation.
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