PRINCIPLES OF MARKETING

DIGITAL ASSIGNMENT – I
E VINAY KUMAR REDDY
15BME0308
The video describes:
Practically how to start a company, when to start, how to create a Business plan for the company,
how to create and increase value of the company.
When to start a company?
The best time to start a company is, after the Internet collapsed or after the financial market
collapsed, i.e., during down times. Because at that point of time the resources will not be
available so if we take this as an opportunity and supply the necessary resources we can gain
success.
Value:
First thing we need to keep in mind is that value. If we won’t create value we can’t do anything.
So, if we create value we attain more opportunities
BUSINESS PLAN:
It is a guide or a road-map for our business that outlines goals and details how we plan to achieve
these goals.
Why to write a Business Plan?
A Business plan can help you:
• Secure financing from investors and lenders
• Identify strengths, weakness, opportunities and threats
• Communicate our vision to the employees and external parties
• Take advantage of opportunities
• To understand our business
• Create value of our company
Who should write the Plan?
The person who is writing the plan is should be heavily involved in its development. Some
people hire consultants or have employees to draft the plan. If you’re going to be accountable for
the decisions that will be based on the plan, then you need to be involved in its development.
You might have input from experts as you develop the background and analysis for the business
plan, but as the owner and entrepreneur, the business venture is an extension of your desires,
goals, philosophies, skills, and abilities. If you are not directly involved, then it will not be an
effective planning document.
What should be in a Business Plan?
➢ The business plan should include:
o Executive summary
o The Opportunity and the company and its services/products
o Market research/analysis
o Economics of the Business
o Marketing Plan
o Design and Development plan
o Manufacturing and Operations Plan
o Management Team
o Schedule
o Critical Risks, Problems and assumptions
o Financial Plan
o Appendices
➢ Cover page:
o Name of Venture
o Address
o Telephone
o Confidentiality legend
o Securities law legend
- Control numbering of copies
 ➢ Size/Packing of the plan
o Avoid the 3” thick binder
o Separate binding of Executive Summary?
o How to bind?
- staple
- spiral
- velabind
- Accubinder
o Appearance should be professional but not overly slick
What is an Executive Summary?
It is the First thing Investors Read. It is a Resume for your full plan. The basic goal is to get the
“Interview” to give the pitch.
This Executive summary tells who are we and what is our vision, what are we doing, what is the
market, how much finance does we require.
It should contain:
o Description of the Business concept and the business
o The Opportunity and Strategy
o The Target Market and Projections
o The Competitive Advantages
o The Economics, Profitability and Harvest Potential
o The Team
What is Marketing Plan?
o It describes our Marketing Strategy
o Pricing and Distribution
o Sales Tactics
o Advertising and Promotion
What is Opportunity?
o In this we need to describe our Market/Opportunity
o How big it is?
o How fast is it growing?
o Convergence of Opportunity and Solution
What is Market Analysis?
In this we need to describe about
o Existing products in market
o Market segments
o Market competition
What is Developing Plan?
In this it should include
o Development (Today product status)
o Is any further Development required?
o Difficulty and Risks
What is Action Plan?
It should include everything that what are you going to do and when are you going to implement
o Identification of “credibility Testers”
o Sequencing to build VALUE
o Eliminate or Reduce Dependencies
The Business Plan as a Financing Document
In this there will be three readings
o First Reading : Like a Resume
- Make a cut so that we get an opportunity to tell your story
o Second Reading : Justify the Investment
o Third Reading : Commit to a plan
- That we and our Investors can live with
NOTE : If we don’t make FIRST CUT, B and C never happen.
MAKING THE FIRST CUT
- An Idea too Good to Ignore
- A Financial Promise too good to turn down
- A team good enough to believe in an action plan that is Credible and Focused
WHY PLANS FAIL THE FIRST CUT
- Insufficient Market
- Non-credible technology
o Too wild
o Too Blue-Sky
o Not protectible
o Too Mundane
- Invest too large for the promise
- Failure to understand the market
Appendices
It should contain the
o Separately Bound Volume
o Resumes of Principals
o Product Literature
o Trade press
o Patents
o Testimonials Letters
o Technical Information
o Confidentiality
o Discussions