Entrepreneurship [Advanced]

MARKETING PART

Characteristic of Market Plan
1) Provide strategy
2) Assumptions
3) Simple/short
4) Flexible
5) Criteria for control

Market Philosophy
1) Production driven philosophy
2) Sales driven philosophy
3) Consumer driven philosophy

Market Strategy
1) Product    2) Pricing   3)Promotion    4) Distribution    5) Budget    6) Implementation

Target Marketing
1) Market Segmentation
2) Market Targeting
3) Market Positioning

Market Segmentation
1) Customer characteristics
    - Geographic     - Demographic    - Psychographic
2) Buying Condition
    - Usage    - Desire benefit    - Buying Condition

Product Mix
1) Quality   2) Waranty   3) Guarantee    4) Service    5) Package

Price Mix
1) Consumer reaction    2) Cost    3) Competitive reaction

Promotion Mix
1)Advertising    2) Personal selling    3) Publicity    4) Sales Promotion

Distribution Mix
- Channel
1) Retailer    2) Wholesaler   3) Representatives
- Physical Distribution
1) Storage    2) Inventory    3) Transportation    4) Warehousing

Pricing Strategy
1) Introduction Stage
    Unique product  - Skimming
    Non-unique product - Penetration
2) Growth Stage - Consumer pricing
3) Maturity Stage - Demand-oriented pricing
4) Decline Stage - Loss leader pricing

Why Market Plan Fail? 
1) Lack of real plan (particulary regarding goals & objectives)
2) Inadequate situational analysis (dont know where you are now)
3) Unrealistic Goals ( This happen due to lack understanding of the situation)
4) Unexpected competitive move & product deficiencies, delay in getting finance.

Develop Market Plan
1) Objective    2) Target- Market share, growth, position   3) Risk    4) Return on Investment

BUSINESS PLAN PART

Benefit to entrepreneur: 

1) Effort in Business plan make entrepreneur view the venture critically and objectively

2) Entrepreneur can develop strategies and give expected result for outside evaluators.

3) Provide measurement for comparing forecast with actual result.

4) Tools to communicate with investors.

Benefit to Financial Sources:
1) Provide detailed of the market potential and plans for a securing a share of the market.
2) Show venture's ability to pay debt or provide return on equity.
3) Identify critical risks and crucial events with a discussion of contingency plans.

Component
1) Executive Summary
2) Company Overview
3) Business Environment
4) Goals & Business Strategies
5) Financial Plan
6) Action / Implementation Plan

Reason for Plan to Fail:
1) No experience    2) No total commitment    3) Unreasonable goal
 4) No understanding of threats or weakness    5) Customer need not established

FRANCHISE PART

Key success factor of franchise

1) Product / Services