THE MARKETING, ORGANIZATIONAL & FINANCIAL
PLAN
BY:M U H A M M A D Y U R I A N S YA H P U T RA
P U T R I K A M AYA D I P TAP RA M U D H A N A A N G G AM U H A M M A D N U R H U D A
RA N DY RA H M A D IP RA M U D H I A WA R D H A N A
J U S T I N U S O K K YM U H A M M A D RYA N F I R M A N S YA H
CHAPTER 8: THE MARKETING PLAN
DIFFERENCE BETWEEN A BUSINESS PLAN & A MARKETING PLAN
• The Marketing Plan• An integral part of a
business plan• Focusses on all marketing
activities of a venture for one year or more
• Vary significantly for a firm depending on the industry, target market and the size and scope of the organization.
• Standalone document that needs to be managed on a short-term basis to ascertain whether the venture is meeting its goal & objectives.
• The Business Plan• The road map for the entire
organization over time.• Focusses on not just
marketing issues but also such decisions as research and development, operations, manufacturing, personnel, financial projections & analysis and future growth strategies.
• Should be updated on a regular basis to help management to stay focused and to meet organizational goals.
INDUSTRY ANALYSIS• The preparation of the marketing plan ->
the entrepreneur need to complete the industry section of the business plan.
• Primary focus -> to provide sufficient knowledge of the environment (national & local market) that can affect marketing strategy decision making.
• Secondary sources -> The entrepereneur decide that a market research initiative is needed to secure more specific information on such variables as customer needs, competitive strenghts & weakness, price, promotion, distribution & product/service benefits.
• Market research -> determining market position, setting market goals & objectives & determining action program.
COMPETITOR ANALYSIS • First: documenting the current
strategy of each primary competitor
• Gathering competitor’s information -> using public information and then complimenting this with a marketing research project (Google search engine etc).
• Using Table 8.1 -> the entrepreneur can begin identify the strengths and weaknesses of the competitor -> the data can be utilized to formulate the market positioning strategy of the new venture.
MARKETING RESEARCH FOR THE NEW VENTURE
• Information for developing the marketing plan may necessitate conducting some marketing research.
• Marketing research:• Who will buy the product/service• What is the size of the potential market• What price should be charged• What is the most appropriate distribution
channel• What is the most effective promotion strategy
to inform and reach potential customers• The entrepreneur will need to assess
available resources and the information needed -> Focus Group (not costly).
• Marketing research may be conducted by the entrepreneur or by external supplier or consultant.
UNDERSTANDING THE MARKETING PLAN
• The entrepreneur should prepare the marketing plan• Ideally prepared annually, assessing goals and
objectives for the next year• It establishes how entrepreneur will effectively
compete and operate in marketplace• After the strategies established, entrepreneur can
assigned cost to the strategies
• Marketing plan = a road map
UNDERSTANDING THE MARKETING PLAN
Where have we been?
Where do we want to go?
(in short term)
How do we get there?
MARKETING PLAN OUTLINE
Situation Analysis
Marketing Objectives and Goals
Marketing Strategy & actions program
Budgets
Controls
CHARACTERISTIC OF MARKETING PLAN !
• It should provide a strategy for accomplishing company mission & goals
• Based on fact & valid assumptions• Provide continuity, successfully meet longer term
goals• Should be simple and short• The success of the plan may depend on its flexibility• Should specify performance criteria that will be
monitored and controlled
COMBINATION OF PRODUCT, PRICE, PROMOTION, DISTRIBUTION, AND OTHER MARKETING ACTIVITIES
NEEDED TO MEET MARKETING OBJECTIVES
• Defining Business Situation review of where we have been• Defining Target Market segmenting and targeting customers 1. decide general market or industry 2. divide market into smaller groups based on buying situations• Select segment or segments to target• Develop marketing plan integrating product, price, distribution, and promotion
PREPARING THE MARKETING PLAN
Defining marketing strategy and action programs
How do we get there?
Product
• What makes the product more distinctive than other?
• What is the additional value that customer get beyond the product it self?
Product
• Unique design• On Hand Internet• User friendly interface• Integrated cloud service• Easy to use• Offer great customer service
and in-store experience
Price
Costs
• DM+DL+OH
Margins
• Gross profit-COGS
• Standardized Margin
Competitions
• Value added
• USD 500-600 selling price• Discount if bought with
data
Price
Place (distribution)
• Where to sell your product?
Place (distribution)
• Direct from Apple• Sold by mobile phone
carrier• Launch in many countries
at the same time
Promotion
• How you educate the potential/existing customer?
• How you choose your advertisement medium?
Promotion
• Widespread launch PR social media
• Extensive online and other media ad
• Product placement
Marketing Strategy
Budgeting the marketing strategy
Implementation of marketing plan
Monitoring progress marketing action
Chapter 9.The Organizational Plan
1. Employees2. Employees loyalty3. Employees
commitment4. Management team
ability5. Management team
commitment
The Importance of The Management Team in Launching a New Venture
Factor’s Three Forms of Business Formation
Factor’s Three Forms of Business Formation
Tax Atributes of Various Legal Forms of Business
Tax Atributes of Various Legal Forms of Business
S CorporationCombines the tax advantages of the
partnership and corporationVenture income is declared as personal income
on pro rata basis by the shareholdersNumber of shareholders up to 100Family members are allowed to be treated as
one stockholderTax status as a pass-through entity still requires
an affirmative election of share holdersIf tax status is lost, it cannot be reelected for 5
years and with some costs
S Corporation Pros and ConsProsCorporate gains/losses
are treated as personal income/losses
Not subject to minimum tax, as of C Corporation
Stock may be transferred low-income-bracket family (14 years old children or older)
May use cash method of accounting
Cons• May not deduct most
fringe benefits for shareholders
• Must adopt a calendar year for tax purposes
• Only common stock class is permitted
• Net loss is limited to shareholders’ stock plus loans
• Cannot have more than 100 shareholders
LIMITED LIABILITY COMPANY (LLC)Considered a partnership-corporation hybridLLC has members instead of shareholders or partnersNo shares are issued, members’ interest are designated
by articles of organizationLiability doesn’t extend beyond member’s capital
contributionMembers may transfer their interest with unanimous
written consent of remaining membersInternal Revenue Services automatically treats LLCs as
partnership, unless another option is electedStandard acceptable term of an LLC is 30 yearsDissolution when member dies, bankrupt, or members’
opt
LLC Pros and ConsProsProtection of personal
assetsAvoid double-taxation
of profitsFlexible management
& organizationOne or more
(unlimited) individuals, corps or partners can join to form an LLC
Cons• Often required to
have a limited life (< 30 years)
• Not corporations, so can not issue stock
Organization PlanLO5 & LO6
Board Of DirectorIn the new company and / newly merged company directors are expected to be memelakukan some key points as follows:- A review of the operations and budget of the company- Stringing medium and long-term strategy for the
growth and expansion of the company- Provide support to the daily work- Mediate conflicts among shareholders- Ensure the use of assets according to function- Expanding the network of information on
entrepreneurs.
Board of AdvisoryMokhtarzada Model recommend 3 major point in developing board of advisory, which is as follows: Identify members who have the same vision, to
provide output in line with expectations of shareholder
Offer part of the company's shares, so that not only can provide their expertise, but also give more value that can develop business
Timing is crucial in selecting advisory, the momment is such as provide additional capital, enter new markets, and improve the quality of managerial.
Board of Advisory International Vs Indonesia- In the international, board of advisory is independent
and come from expertise in each area. For instance:a, Financial : JP Morgan, Meryll Lynchb. Accounting & Tax : PWC, E&Y, KPMGc. Law Firm : Latham & Watkins, Baker McKenzie, DLA Piperd, Managerial : boston consulting, Mckinsey- In Indonesia board of advisory is legalized in a form of board of commisioner, in the process board of commisioner is also help by the expertise in conducting their job
Dificulities for Enterprenuer to Delegate Men were under qualified or overqualified for
the task Work is responsibility The area is large or is an unsolved problem,
issue or matters relating to personal feelings of others or the confidentiality
It is the secret of the company and the key point the company can develop up to now
The process of transfer of knowledge is taking times
Chapter 10 Financial Plan
Capital and Operational Budget
Sales Budget
• Forecast Sales
• Qualitative Approach
Capital Budget
• Capital Investment needed mainly for Assets
Forecasting Sales
• Qualitative Research• Industry Based
Market Research
Pro Forma Income Statement
Projected Income
Projected Expense
Projected Net Income
Consider following aspects:
Business Growth Prepare for 3 years in advance
Pro Forma Cash Flow
Income Stateme
nt
Adjust for Cash aspects
Cash Flow (In-direct Method)
Cash = Liquidity
Cash ≠ Profit
Assumption for determining portion of
cash/non-cash sales
Assumption for determining cash
received from account receivables
Key Points :
Pro Forma Balance Sheet
Liability
Equity
Assets
Break-Even Analysis
Where :B/E(Q) = Break-even sales volumeTFC = total fixed costSP = selling priceVC/Unit= variable cost per unit
Pro Forma Source and Application of Funds
Source of Funds, Profit
Usages
Liabilities Payment
Investment (Diversification)
Asset Investment (Business Value Enhancement)