Chapter 8 (marketing)

Question 1

Before the marketing plan, what needs to be done?

Answer 1

The industry analysis

Question 2

What questions does marketing research aim to answer?

Answer 2

-Who will buy the product?
-What size is the potential market
-What price will be charge?
-What is the most appropriate distribution strategy?
-what is the most effective promotion strategy

Question 3

Who does the research?

Answer 3

The owner or he can hire someone

Question 4

How does the research begin?

Answer 4

Defining the objectives or purpose which is often the most difficult part

Question 5

What are the 4 steps to marketing research

Answer 5

1) defining the purpose or objectives
2) gathering data from secondary sources
3) gathering information from primary sources
4) analyzing the results

Question 6

What goes on in the defining the purpose or objectives

Answer 6

list the info needed to prepare the marketing plan
-determine what people think of the product/service
-how much customers are willing to pay for the product/service
-where the customer would buy the product
-where the customer would expect to hear about the product

Question 7

What goes on in the secondary sources

Answer 7

can provide info on the industry, market and competitors
-go online and review competitors website and social media pages, this provides early assessment of where the opportunities and threats might be
-may be cheaper and less time consuming than primary resources

Question 8

What goes on in the primary sources

Answer 8

Involves data collection procedure and a data collection instrument
-observation is the simplest approach
-interviewing or surveying is the most common approach
-questionnaire designed to fulfill one or more of the entrepreneurs objectives

Question 9

What goes on in the analyzing and interpreting the results part

Answer 9

-entering the results on a computer and hand tabulating the results
-making sense of the results and answering the objectives

Question 10

What are the 4 things that marketing plan focuses on

Answer 10

-focuses on marketing activities for one or more years
-varies by industry, target market, from size and scope
-integral to the business plan but also stands alone
-needs short term management

Question 11

What does the marketing plan establish?

Answer 11

How the entrepreneur will compete and operate in the marketplace

Question 12

The marketing plan should answer which 3 basic questions?

Answer 12

1) where have we been
2) where do we want to go (in the short term)
3) how do we get there?

Question 13

How often should the marketing plan be prepared

Answer 13

Annually

Question 14

What are the 6 characteristics of an effective marketing plan

Answer 14

-provides a strategy to accomplish the mission
-is based on facts and valid assumptions
-describes an organization to implement the plan
-provides for continuity
-is short, simple and flexible
-specifies performance criteria to be monitored and controlled

Question 15

What are the 3 subsections of the marketing system that must be understood before making the marketing plan

Answer 15

-external and internal factors
-the marketing mix should reflect the environment
-the plan should provide feedback on the plans effectiveness

Question 16

List the critical descisions of the marketing plan (4 P’s) and explain them

Answer 16

-Product: everything about the product (materials, style, features, size, etc)
-Price: how much will it sell for, how many will be sold, credit terms
-Place: where will it sell, types of wholesalers, geographic place of sale, transportation
-Promotion: how will it be sold, what is the media coverage, what is the message to sell the product

Question 17

What are the differences between marketing to businesses versus to consumers

Answer 17

Consumer products involve sales to households for personal consumption
B2B marketing involves a more direct channel of distributions

Question 18

How much should start up companies budget for marketing strategy

Answer 18

between 12-20%

Question 19

In the budgeting plan you want to take note of the …

Answer 19

Take note of all the costs to use it in the financial plan

Question 20

How do you monitor the marketing plan

Answer 20

Taking specific results such as seeing goals are met or objectives

Question 21

What are the 5 steps to a social media marketing plan

Answer 21

1) set goals for the marketing efforts
2) select the right platform and approach
3) identify influencers
4) link all posts to the company’s websites
5) assess and analyze the plans effectiveness

Question 22

What is important to keep in mind regarding social media marketing

Answer 22

-Avoid making al posts just on your brand
-must have strategy
-do not avoid tracking or the analytics on post effectiveness

Question 22

What are some pitfalls of social media

Answer 22

-Requires the cultivation of relationships, which takes time to establish