1. To understand the differences between business planning, strategy plans, and marketplanning.2. To describe the role of marketing research in determining market strategy for themarketing plan.3. To illustrate an effective and feasible procedure for the entrepreneur to follow inengaging in a market research study.4. To define the steps in preparing the marketing plan.5. To explain the marketing system and its key components.6. To illustrate different creative strategies that may be used to differentiate or position thenew venture’s products or services.PURPOSE AND TIMING OF THE MARKETING PLANThe marketing plan establishes how the entrepreneur will effectively compete and operate in themarketplace. Marketing planning should be an annual activity focusing on decisions related tothe marketing mix variables. The marketing plan section should focus on strategies for the firstthree years of the venture. For the first year, goals and strategies should be projected monthly.For years two and three, market results should be projected based on longer-term goals.Preparing an annual marketing plan becomes the basis for planning other aspects of the business.MARKET RESEARCH FOR THE NEW VENTUREInformation for developing the marketing plan may require some marketing research. Marketingresearch involves the gathering of data in order to determine such information as who will buythe product, what price should be charged, and what is the most effective promotion strategy.Marketing research may be conducted by the entrepreneur or by an external supplier orconsultant. Market research begins with definition of objectives. Many entrepreneurs don’t knowwhat they want to accomplish from a research study.Defining the Purpose or ObjectivesOne effective way to begin the marketing plan is to make a list of the infPossible objectives:1. Determine what people think of the product or service and if they would buy it.2. Determine how much customers would be willing to pay for the product.3. Determine where the customer would prefer to purchase the product.4. Determine where the customer would expect to hear about such a product or service.Gathering Data from Secondary Sources An obvious source is data that already exists, orsecondary data, found in trade magazines, libraries, government agencies, and the Internet. TheInternet can provide information on competitors and the industry, plus can be used for primaryresearch.