MNE3701 EXAM PACK 2023

MNE3701
EXAM PACK
2023
LATEST QUESTIONS AND
ANSWERS

,Entrepreneurship and Small Business Management MNE3701 S1 2015
Study Unit 2
The Marketing Plan


Table of Contents
2.1 WHAT IS SMALL BUSINESS MARKETING? ............................................................................................................. 1
2.1.1 Marketing philosophies make a difference .................................................................................................. 1
2.1.2 A consumer orientation: the right choice ..................................................................................................... 2
2.2 THE FORMAL MARKETING PLAN ........................................................................................................................... 3
2.2.1 Market analysis ............................................................................................................................................. 3
2.2.2 The competition ............................................................................................................................................ 3
2.2.3 Marketing strategy ........................................................................................................................................ 3
2.3 MARKETING RESEARCH FOR THE SMALL BUSINESS ............................................................................................. 4
2.3.1 The nature of marketing research ................................................................................................................ 4
2.3.2 Steps in the marketing research process ...................................................................................................... 5
2.4 UNDERSTANDING POTENTIAL TARGET MARKETS ................................................................................................ 7
2.4.1 Market segmentation and its variables ........................................................................................................ 7
2.4.2 Marketing strategies based on segmentation considerations ...................................................................... 7
2.5 ESTIMATING MARKET POTENTIAL ........................................................................................................................ 9
2.5.1 The sales forecast .......................................................................................................................................... 9
2.5.2 Limitations to forecasting ........................................................................................................................... 10
2.5.3 The forecasting process .............................................................................................................................. 10



2.1 WHAT IS SMALL BUSINESS MARKETING?
 Definition: Those business activities that direct the creation, development and delivery of a bundle of
satisfaction from the creator to the targeted user.
o Identifying a target market
o Determining target market potential
o Preparing, communicating and delivering a bundle of satisfaction to the target market
 A marketing plan will not enable you to avoid all missteps involved in a startup situation, but it can
drastically reduce the number of errors by forcing you to think through available options.
 It may be helpful to view a product or service as having three levels:
o The core product/service: the fundamental benefit or solution sought by customers.
o The actual product/service: the basic physical product and/or service that delivers those benefits.
o The augmented product/service: the basic product and/or service plus any extra or unsolicited
benefits to the consumer that may prompt a purchase.

2.1.1 Marketing philosophies make a difference
 Three different marketing perspectives guide most small businesses:




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, Entrepreneurship and Small Business Management MNE3701 S1 2015
a) A production-oriented philosophy emphasizes the product as the single most important part of the business.
Resources are concentrated on developing the product in the most efficient manner, even if promotion,
distribution and other marketing activities are slighted.
b) A sales-oriented philosophy deemphasizes production efficiencies and customer preferences in favour of a
focus on “pushing product”. Achieving sales goals becomes the firm’s highest priority.
c) A consumer-oriented philosophy believes that everything, including production and sales, centres in the
consumer and his or her needs. All marketing efforts begin and end with the consumer.

2.1.2 A consumer orientation: the right choice
 Identifying customer needs and satisfying those needs.
 Customer satisfaction IS the goal!
 Not all firms adopt a consumer-orientation despite the overwhelming benefits. The following three factors
provide answers as to why:
o (1) If there is little or no competition and if demand exceeds supply, a firm is tempted to emphasize
production. Usually a short-term situation; concentrating on production to the exclusion of
marketing can lead to disaster in time.
o (2) An entrepreneur may have a strong background in production or in selling but be weak in other
areas – the owner will play to his strengths.
o (3) Some small business owners are too focused on the present – the better course of action is to
identify ways to please consumers in the long term.
 A firm that adopts a consumer orientation incorporates the best of each marketing philosophy.
 Marketing activities include:
o Taking the steps necessary to locate and describe potential customers – a process called market
analysis;
o Product and/or service pricing;
o Promotion; and
o Distribution.

Marketing Research



The Marketing Plan
 Market Analysis
 The Competition
 Marketing Strategy
o Product/Service
o Distribution
o Promotion
o Pricing




Market Segmentation Sales Forecasting


Exhibit 2.1 - The Marketing Plan and Supporting Marketing Activities



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