“Entrepreneurs must determine what to sell, to whom and how often, on what terms and at what price, and how to get the product or service to the customer. In short, a marketing plan identifies a company’s target customers and describes how it will attract and keep them. The process does not have to be complex.” (Scarborough & Cornwall, 2015, p. 274).
With this assignment, you will address some of the basic areas within a marketing plan and help to refine your strategies for creating a successful business.
Using the business from Assignment 2 (will be provided), write a paper in which you:
Identify its primary target market.
Specify three (3) methods you will use to research customer needs and wants.
Describe the marketing mix: a) product, b) pricing strategy, c) promotion, and d) placement/distribution.
Create a one-year advertising budget and plan that incorporates the use of various advertising media and publicity.
Include at least two (2) references outside the textbook.
Your assignment must follow these formatting requirements:
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
Describe and analyze the necessary activities and key decisions to start a small business.
Use technology and information resources to research issues in small business management.
Write clearly and concisely about small business management using proper writing mechanics.
Promotion and Pricing Strategies
Primary Target Market
The primary target market for the Helse Training & Consultants will be people residing in an excellent location who are interested in enhancing their flexibility and health. These people will mostly entail those aged between 18 and 55 yearly. For those living near the facility, the company will offer face-to-face training to attain personalized training. The company will target the age group because it entails strong adults who are able to make their own decisions. People who are younger than 18 years are likely to be in school, thus, they do not have time for regular exercise. On the other hand, those aged over 55 years may be too weak to engage in strenuous exercises.
The online market is the other target market for the company where it targets people who are located away from the company as well as those with tight schedules. For instance, many students and working people may not find time to come to the company. Therefore, it will develop a website where clients can ask questions and follow training guidelines to attain their objectives (Morimura & Sakagawa, 2018). The website will contain diverse information to meet all the needs of customers including muscle building, losing weight and gaining body flexibility. The website will offer a timely response to customers’ queries and ensure that are given as many details as possible.
Methods to Research Customer Needs and Wants
In business, it is always vital to meet customer needs. Many businesses fail due to a lack of knowledge of what their customers require of them. For the Helse Training & Consultants to maintain its customer base, it will employ the three research methods indicated below.
Paying attention to new customers
When a customer gets contact with a business for the first time, they are yet to experience the service and may need a personalized approach. This is no different for Helse Training & Consultants. The business should not use a similar strategy it has been using for its recurring customers in attracting the new ones. For instance, offering similar training strategies to new and old customers will make the first time customers feel confused, which can ruin this contact. Again, the company deals with customers of different ages and their training needs are different as well (Morimura & Sakagawa, 2018). If the needs of the new client match with what the company is offering, there is a high potentiality of gaining that customer. If not, the business will have to expand its services to meet customer needs.
Seeking to know what customers think about the business and its competitors
Understanding what customers think about business can be beneficial when developing marketing strategies. It can help realize areas that need improvement, particularly where customers think that competitors are doing better. In addition, the information will enable the business to know the weaknesses of the main competitors and, thus, work to perfect its services.
Anticipating future needs of the customers
Gaining more information regarding the customer base will enable the business to take better risks since it will anticipate future needs and expectations. Effective anticipation means that the business will make better decisions that will promote its future and increase its chances of succeeding (Faith & Agwu, 2018). Understanding the customers’ needs mean that it will become possible to keep the content of the business updated. Therefore, Helse Training & Consultants will keep on updating and improving its website to remain relevant in the market.
The Marketing Mix
The company will be willing to offer beneficial information to their customers and educate them on the needs of maintaining physical fitness. To achieve its objective, it will be important to identify its 4Ps, marketing mix. The product will entail what the business sells, the price will entail what the market pays to access the product, the promotion will entail strategies that the business will use to inform potential customers about the product, and place will entail where the product will be obtained.
The product will entail the services that the company will be offering. These services will depend on the customers’ needs. For instance, the training for weight lifters will vary with that of those intending to lose weight. Therefore, the company intends to offer personalized services based on the customers’ expectations. On the website, the company will seek to understand the age and needs of the customer to decide the best service for the customer. Education and advice given to the customers will be a product on itself since it will be done at a cost. It will also offer a wide range of exercise equipment such as those meant for cardiovascular and strength training.
To penetrate the new market and compete strongly against boutique gyms and athletic centers, and other emerging businesses, the company intends to apply slightly lower prices. Since the market is becoming competitive because of the increasing demand for fitness services, it will be important to use reduced prices to attract many customers. Since the company intends to offer outstanding services, it hopes to not only attract many customers but also retain them. In this regard, it will raise the price in the future after considerable trust from its customers.
The ‘place’ will entail the physical location of the business and its website. Customers will be welcomed to visit the physical location to access the training equipment. Since it is located in an excellent location, it is likely to get many customers through the door (Olbrich, Jansen & Hundt, 2017). Digital marketing will also act as a place since many customers will be served through the platform. Apart from its innovative website, the company will also use social media to reach many customers in other regions. For instance, the business will use Facebook to reach its potential customers and ensure that all the necessary information is provided.
Helse Training & Consultants will establish an effective promotional strategy because it understands the value of marketing and image. It will entail four elements namely sales promotion, advertising, sales organization, and public relation (Olbrich, Jansen & Hundt, 2017). The advertising will entail paid communication methods such as print media, internet advertisements, and television advertisements. Public relations will entail events and seminars. The company intends to conduct events and seminars for trainers from time to time. The promotion strategy will be focused on persuading customers to prefer the company’s products to those being offered by its competitors.
One-Year Advertising Budget and Plan
The company intends to use extensive promotion through advertisement. Within the first year, the company plans to use $150,000 that will be distributed among the internet, magazines, radio stations, and television. As indicated in the list below, the company will focus more on internet advertisement since more people are focusing on online marketing. The second in the list is television advertisements. The company will pay for advertisements on television stations with thousands of viewers. Presenting the ad when programs viewed by many people are aired will ensure that the information reaches many people. The company will also invest in radio and magazine advertisements.
Table showing the cost of advertisement for the first one year
|Cost in dollars
Faith, D. O., & Agwu, E. (2018). A review of the effect of pricing strategies on the purchase of consumer goods. International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264) Vol, 2.
Morimura, F., & Sakagawa, Y. (2018). Information technology use in retail chains: Impact on the standardisation of pricing and promotion strategies and performance. Journal of Retailing and Consumer Services, 45, 81-91.
Olbrich, R., Jansen, H. C., & Hundt, M. (2017). Effects of pricing strategies and product quality on private label and national brand performance. Journal of Retailing and Consumer Services, 34, 294-301.