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Chap012 - Chapter 12 Marketing Plans Saying How Youll Get...

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Chapter 12 - Marketing Plans: Saying How You’ll Get Sales CHAPTER 12: MARKETING PLANS: SAYING HOW YOU’LL GET SALES Chapter Summary While the marketing plan focuses on the strategies of the four P’s, your target market and your competition, this chapter also covers some other areas that integrate well with putting together the plan. The chapter discusses the reason a marketing plan is important as well as gives an overview of how to gather the information to put together this plan – marketing research. Sales forecasting is reviewed here as a means to predict the success of your marketing as well as being an integral part of the business plan. The idea of a product/service’s differential advantage is reviewed, especially as a tool for integrating the various aspect of the plan. Both stand-alone marketing plans and marketing plans as integral parts of a business plan are discussed. Learning Objectives After studying this chapter, the student should be able to: 1. Understand the importance of a marketing plan. 2. Recognize the major methods for marketing research. 3. Use sales forecasting methods. 4. Find or create a product’s differential advantage. 5. Identify the critical components of a marketing plan. Focus on Small Business: Kwok-Foon Lai and the Kwok Kee Restaurant Kwok-Foon Lai and his wife opened a successful porridge restaurant in a Hong Kong suburb in 1968. Porridge, nearly a Chinese fast food, is a product that is easily imitated and Lai needed to differentiate his porridge restaurant from the competition. He carefully considered each of the four P’s and came up with an integrated plan that serves him to this day. 12-1
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Chapter 12 - Marketing Plans: Saying How You’ll Get Sales Discussion Questions 1 A success is more than having the right product/service. What other things did Kwok Foon Lai consider? Good porridge was not enough; Lai coupled this with exceptional customer service (product). In addition, he located in an area close to popular restaurants, but far enough away that the rent was not too high (place). Lower rent was reflected in the better than average prices he charged. He also allowed for credit (pay next time you eat). Lastly, although formal advertising was beyond his budget, he relied on word-of-mouth advertising. (All must have worked, as the business is still successful nearly 40 years later.) 2 What kind of generic strategy did he use and how did he implement it in his planning for the restaurant? Restaurants, by nature, are niche markets, serving only their local area. Students could argue that Lai competed on cost or that he competed by being different. All of his tangible differences (product, location), though, could be easily imitated, although his reputation is now a strong barrier to entry. Lai is imitative rather than innovative.
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