with a section on Marketing Plan and Preliminary

TOYOTA MOTOR CORPORATIONAssignmentsMarketing Plan/Preliminary Project Plan PaperPrepare a 4-8 page paper with a section on Marketing Plan and PreliminaryProject ABOUT TOYOTA MOTOR CORPORATION Plan due. Include a Cover pageand a References page. The paper should include the following for the MarketingPlan: revised SWOT analysis (after last week’s feedback), the four Ps of marketing,and promotional and advertising concepts and plans. Include how the product orservice will be differentiated in the market. Project Plan: This is preliminary. Have themajor deliverables and dates (of the plan, not the course). Review with the team toensure that timelines are agreed upon. Students should be at a high level by thispoint with major deliverables.NOTE: See Chapters 7, 8, 9, 10, and 15 of Successful Business Plan text forcontent details.Team PresentationsBe prepared to have two team members present a 5–8-minute verbal recapof the Marketing Plan in class.PrintThe Marketing PlanProduct or Service Concept | Target Market and Segmentation | Value Proposition With PrimaryResearch | Pricing Strategy | Sales and Marketing Strategy | Conclusion"You can have the best product or service in the world, but if people don’t buy—it’sworthless. So in reality, it doesn’t matter how wonderful your new product or service is. Thereal question is—will they buy it?" – Noel PeeblesThis quote brings us to the marketing plan. Mr. Peebles was correct—great products that people donot purchase are worthless. So what do you do? You utilize marketing skills, which is the purpose ofthis unit. The marketing plan is the basis in which you define the four Ps: product, price, place, andpromotion. To put it simply, the plan that you create will position your products/services so thatpeople will want to purchase them.In this section, we will cover how to research and develop your marketing plan. In the first part of thislecture, we will cover the specific areas of the marketing plan, which include product or serviceconcept, target market and segmentation, value proposition with primary research, pricing strategy,and sales and marketing strategy.Product or Service ConceptBack to TopWhere do you start your business plan? It seems obvious that you would start with the first P—product. Your team has selected a topic that offers a product or a service to a target audience. In themarketing plan of the business section, your product or service concept will be explained here. Youwill want to go into enough detail to explain how your product or service will appear to customers aswell as include your "hook" or specialty that makes your business truly yours. Every new businessshould have a special "something" that delineates it from all the rest—its hook. Whether it is Wi-Fi ina carwash, free coffee and biscuits in the lobby of a shoe store, or pet-friendly areas in a bar orrestaurant, you should explain your hook clearly, concisely, and persuasively. Most lenders andventure capitalists will read this first, and this piece will help them decide if they should read on orthrow the plan in the can.Some things you may want to consider while you are working on this are as follows.Do you understand your own product or service?Will others understand it?Why will people want to use your product or service?How will people use your product or service?How is your product or service different from all the rest?How will you market this product or service?Target Market and SegmentationBack to TopYou need to provide information to your investors about the market in which you plan to operate yournew business. You may use some primary research for this as well as secondary research aboutdemographic information in your new business’s home. Here, you will provide the following.Where is the new business going to be located? (Provide explicit details.)How big is the market? What is the growth rate (historically and projected)?Why is this market the best place for you to place your new business?Does your market have unique features or dynamics that you plan to capitalize on?When you write this section, provide real numbers along with your narrative. Utilize good, soliddemographic research and provide the latest information you can find. If you quote Census figuresor information from a respected website, include the source information directly in your narrative.The goal is to find information that will support your idea and make your case compelling.Market segmentation is another area that you should define in your marketing plan. There are fourdifferent segment classifications.1. Geographic segmentation: Divide your market into specific geographic locations such asnations, cities, counties, regions, neighborhoods, or zip codes.2. Demographic segmentation: Identify your prospective customers by characteristics such asage, race, gender, income level, and education.3. Psychographic segmentation: Explain the consumer psychology of your target audience.What are the personal and cultural values of your target audience? How do these valuesimpact your product or service?4. Behavioral segmentation: How does your target audience make purchase decisions? Howdoes your audience shop?Remember to define your target market with as much detail as possible. You cannot be all things toall people. Define your target market as narrowly as possible. For example, if you are selling aconsumer product, remember that the person who makes the purchase is your target market, andthat person might not be the end user. If you are selling toys, your target market is not children, butthe parents or care givers of children. Defining a narrow target market is vital to successful andaffordable marketing communication. You cannot advertise the same product or service to a 25-yearold and a 65-year-old prospect, even if both are prospective customers. These prospects consumemedia very differently and do not have access to the same marketing channels for commonadvertising. Narrow your target market definition and concentrate on your best prospects.Value Proposition With Primary ResearchBack to TopThe value proposition for your product or service will hinge on your primary research about thecharacteristics of your target audience and how the audience would make a purchase decision. YourBusiness Plan must include primary research. As such, it is important that you understand thedifference between primary and secondary research.Primary research is original information you gather that is not presently available from other sources.You conduct primary research to learn about the characteristics of your target audience and toanswer specific questions about the viability of your product or service. Primary research results donot exist until you conduct the research. Below are recommended primary research techniques touse for your Business Plan. In the real world, you would require a large sample size for statisticallyvalid primary research. For purposes of the Business Plan, however, you can use a small size thatdemonstrates your understanding of primary research techniques, analysis, and presentation ofresults.Paper or online surveys: Identify a sample of prospective customers that match your targetaudience. Create survey questions that confirm the demographics of your sample, and then askrespondents questions that verify a need for and intent or willingness to purchase your product orservice. There are free online survey tools you can use for this Primary research technique. This is apromising technique to use if you cannot easily contact prospects in person.Personal interviews: Identify a sample of prospective customers that match your target audience.Speak to that sample in person or by telephone. Use a script that confirms the demographics of yoursample, and then ask respondents questions that verify a need for and intent or willingness topurchase your product or service. Make sure you use a script so that all respondents are answeringthe same questions. This is a promising technique if you have a business-to-business product orservice concept.Focus groups: Identify a small sample of five to eight prospective customers who match your targetaudience. Assemble the sample in a room and ask probing questions that speak to the need for andintent or willingness to purchase your product or service. In addition to asking specific questions,allow participations to spontaneously discuss whatever they believe is important to your product orservice concept. This is a promising technique to use for consumer products.Behavioral observation: If a competitor offers a similar product or service to yours, visit thatcompetitor and observe the behavior of the customers. For example, if you have a product thatwould sell in a grocery store, visit a grocery store and watch how shoppers make their purchasedecisions. What appears to trigger their action? Can you duplicate that trigger for your business?Remember that primary research takes time. As such, you begin planning your primary research assoon as your professor approves your Business Plan topic. Once you have your results, rememberto include a summary of your findings in the narrative of your Marketing Plan section. Make sure youalso provide evidence of your technique (identification of your sample, when and how the researchwas conducted, individual survey results, interview notes, and so on) in your Appendix. You will losepoints on your Business Plan if you do not provide sufficient evidence of your primary research—seethe Business Plan Grading Rubric for details.You can also build a case for the value proposition of your product or service with secondaryresearch. Secondary research is any already-published information that might apply to your targetaudience and its need for your product or service. The information you gather for your IndustryAnalysis is secondary research. You can gather valuable secondary research for a number ofsources, includingonline search engine queries;industry association websites and publications;trade or print publications;newspaper or magazine articles; andconsultation with a librarian.Note that all published secondary research is not available on the Internet. In fact, the best privateindustry information available is stored in private databases. You can access these resources fromthe Student Resource item under Course Home, and you can also take advantage of the DeVry Aska Librarian feature to help you find valuable information for your Industry Analysis and yourMarketing Plan.Distinctive competitive advantage (your hook): In order for your business to succeed, you need adistinctive competitive advantage that distinguishes your product or service from similar ones offeredby other companies. This is sometime called a hook, meaning a unique characteristic that capturesthe attention of your intended target audience. A hook is not a discount or one-time circumstance tocapture a sale. Rather, a hook is a unique characteristic that sets your product or service apart fromcompetitors. Examples might includea car detailing service that includes a mobile option that comes to your home or office;a pet store that offers boarding and grooming;a child care service with pick-up and delivery; anda dry-cleaning service that offers clothing rental.A compelling hook cannot guarantee business success, but a potential investor will want to knowhow your business differs from competitors, and how that difference is a distinctive marketingadvantage for your company.Pricing StrategyBack to TopThe pricing strategy for your product or service is vital to the profitability and ultimate success of yourbusiness. Remember that the pricing strategy you choose must cover your costs and provide a profitcomparable to what other companies in the same industry are able to achieve. Students aresometimes confused that pricing strategy is a technique to increase market share. In other words,there is a common but incorrect belief that low pricing increases market share. This is never true fora new business. A new business requires the same profit margin as an existing business in order tosurvive. That is because a new business realistically has the same operation expenses as a maturebusiness (they may even be higher). When Walmart sells a product at a lower price than one of itscompetitors, Walmart is not operating at a loss to increase traffic or market share. Rather, Walmart isable to sell at a lower price because the cost of its internal operations is more efficient than itscompetitors. Walmart earns the same profit margin as its competitors even when selling at a lowerprice. A new business like the one you are creating for your Business Plan cannot play a low pricegame against established competitors.A better pricing strategy for a new business is competitive pricing. In this instance, you charge aboutthe same price as your primary competitors for your product or service. Here is a very importantcaveat: If your product or service has distinctive or premium attributes compared to your competition,you should charge a higher price. Students sometime imagine that a superior product or service at alower price will build market share. Once again, this approach does not consider your cost andrequired profits. If you have a superior product or service, charge a higher price than competitorsand make sure prospect customers understand your unique attributes. Customers will pay alwayspay a higher price for a superior products and services.In the Pricing Strategy section of your Marketing Plan, make sure you describe your pricing strategyand why it makes sense for your business and your target audience. This requires knowledge ofyour product or service cost and desired profit margin. Include a simple calculation of your price,your cost, and your net profit. Research the pricing of your competitors and provide a pricecomparison table. This will help your potential investor understand your approach and will give yourBusiness Plan credibility.Sales and Marketing StrategyBack to TopIn this section of your Marketing Plan, describe the sales and marketing strategy for your company.Your strategy will differ depending on your industry, your product or service concept, and yourintended target audience. If your product requires direct face-to-face sales (this is common forbusiness-to-business products or services) describe the composition of your sales force. Willcompany founders handle direct sales, or do you need to hire a commission or salaried salespersonor persons? For direct-selling situations, describe how you will identify quality prospectivecustomers. Are you selling directly to an end user, or selling to a wholesaler or retailer? If you areselling to a mass merchant retail chain, remember that mass merchants have centralizedpurchasing. You do not sell to individual Target stores; you must convince a retail category buyer atTarget headquarters in Minneapolis to adopt your product. Explain the content of your basic salespresentation and how you will service accounts after the sale. A potential investor will explain acredible explanation of the sales cycle and associated distribution channels.For business-to-business or consumer sales, you need a marketing message and must find the bestpromotion channel to reach your target audience. If you are selling a product to the hotel industry, forexample, there are trade publications that accept advertising and trade shows where you couldexhibit your products. If you are selling a product to a consumer audience, you might consider print,direct mail, billboards, or radio advertising. In every instance, make sure you identify the content ofyour marketing message. What will you tell prospective customers about your product or service inyour advertising? How will that message influence the target audience to make a purchase? Choosemarketing channels that make the most sense for the geographic, demographic, psychographic, andbehavioral characteristics of your target audience. For example, do not use costly televisionadvertising to reach millennial-aged males. These males spend more time online than watchingtelevision.Below are the advantages and limitations of using various popular advertising channels.Advantages and Limitations of VariousAdvertising MediaTranscriptImportant: Whatever advertising channels you choose, do not guess about the cost of advertising!Research the actual advertising expense. You can do that by looking for rate cards on the websitesof companies offering the advertising. This expense is usually expressed in CPM, which means "costper thousand" impressions. This is the cost for your message to be seen by 1,000 prospectivecustomers. CPM allows you to compare the relative cost of different media, such as a magazineadvertisement versus a radio advertisement targeting the same audience. When making thiscomparison, choose the marketing channel best suited to reach your target market. A potentialinvestor will be reviewing your Marketing Plan to make sure you have included these details andunderstand the actual cost of marketing your product or service. There is a marketing budget in yourFinance Plan, but you should excerpt and include a summary in the narrative of your Marketing Plan.As with all sections of your Business Plan, details make the difference in the Marketing Plan. Makesure you have described your product or service with sufficient detail to interest your potentialinvestor. Make sure your target audience is defined by specific characteristics you can quantify.Make sure your pricing is based on cost and required profit margin. And finally, make sure youinclude research-based costs for your intended advertising and promotion.ConclusionBack to TopWe have covered much this week because the Marketing Plan is an important part of the BusinessPlan. In your earlier parts of the plan, you outlined your ideas and told the investors that a marketexists for your product or service. In this section, your Business Plan will demonstrate how yourcompany plans to exploit the industry and be successful. By defining your products or services,promotional plans, and pricing and sales strategies, you are giving the blueprint for how you plan tofind customers. To summarize the quote above that started our lecture, great products arewonderful, but having customers is the point of a business. Hopefully, after reading this lecture, youcan write a marketing plan that will attract people to your excellent idea!Back to Top