The actual short-term marketing decisions in the marketing plan will consist of four importantmarketing variables, called the marketing mix:1. Product or service.2. Pricing.3. Distribution.4. Promotion. Each variable should be described in detail in the strategy section of the marketingplan.STEPS IN PREPARING THE MARKETING PLANStep 1: Defining the Business SituationThe situation analysis is a review of where the company has beenn and considers many of theenvironmental factors. The entrepreneur should provide a review of past performance of theproduct and the company. Industry analysis should include information on market size, growthrate, suppliers, new entries, and economic conditions.Step 2: Defining Target Market/Opportunities and ThreatsThe entrepreneur should have a good idea of who the customer or target market will be. Thedefined target market will usually represent one or more segments of the entire market. Marketsegmentation is the process of dividing the market into smaller homogeneous groups.. Theprocess of segmenting is:a. Decide what general market or industry you wish to pursue.b. Divide the market into smaller groups based on characteristics of the customerc. Select segment or segments to target.d. Develop marketing plan integrating the parts of the marketing mix.Step 3: Considering Strengths and WeaknessesIt is important for the entrepreneur to consider its strengths and weaknesses.Step 4: Establishing Goals and ObjectivesBefore strategy decisions can be outlined, the entrepreneur must establish realistic marketinggoals and objectives. These answer the question Where do we want to go?” These goals shouldspecify such things as market share, profit, sales, market penetration, pricing policy, andadvertising support. Not all goals and objectives must be quantified. It is a good idea to limit thenumber of goals to between six and eight.Step 5: Defining Marketing Strategy and Action ProgramsStrategy and action decisions respond to the question How do we get there? It incorporates:1. Product or ServiceThis includes a description of the product and may include more than the physical 2. Customer Service• Meeting customer needs and creating loyalty involves a number of low-cost steps:• In writing develop a statement of customer service principles. Train those employees whohave direct contact with customers.