Resources for Young Entrepreneurs
The four ‘P’s
Product
You should be able to produce a clear concise definition of what you are offering, with a list of benefits and special features.
In addition, you need to include information about what the competition is offering, where it differs from your product and why customers will choose you rather than competitors.
Note:
Include the extras that come with the product/service, such as free consultations and quotes, 24 hours repair service, after sales contracts, sizes to order etc
Price
Deciding the price is based on various elements of costs/profits/overheads/market rate etc. discussed in detail in another session. However, this section of the plan needs to show:
i) how competitive the price is;
ii) where your company fits in relation to competition;
iii) whether it is high price/low volume product aimed at a niche market.
In other words, how does price relate to sales volume expected, levels of profit aimed for and the special features or benefits of the product.
Note:
i) It must be realistic at the beginning, as it is very difficult to raise prices once a customer base is built up.
ii) People do not only buy because of price.
Place
This is an important element that is often neglected at the planning stages. It does not just relate to which town the firm operates from or where the customers are, but should include:
i) location of business premises, identification of geographical spread of trade in first and subsequent years;
ii) location of main centres where potential customers live or work;
iii) how will the product/service reach the customer – by road, rail or post? Do they have to travel or do you go to them? What are the main distribution channels?
iv) what sort of outlet will be used – retail, via specialist shop, craft shop. Large outlets such as Harrods or independent local shop? Via office front? As mail order? Is it provided in customer’s own home or workplace? Is a van or a car needed?
Promotion
Again a vital element of the Market Strategy, and usually the first one people think of when you mention Market Plan. It is useful to keep it until last, to stress the fact that ALL of these elements make up the marketing plan and should be planned together to gain maximum impact from the marketing effort.
There is another session where Promotion is looked at in more detail as it is such a vital part of the plan, so this is just a summary section.
The plan needs to include details of how promotion will work with all the other elements outlined above and how it will help the company achieve its objectives. You have plenty of information to start work on some sections of the marketing plan.
