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The Masthead

Design For Series Production

Continued from page 1

ture for the resources to produce the product followed by a short production run followed by the bill collectors and eventu-

ally liquidation of the assets at a fraction of their original price.

Why does this happen? Although the marketplace is broad it should be viewed as being made up of a series of bands.

Each of these bands represents market segments composed of potential buyers with somewhat similar likes and dislikes.

Between the bands are voids or hollows composed of a small number of buyers each with diverse Interests. To avoid the

low population diverse groups, production oriented builders must study their markets in sufficient detail to determine

those parameters that fit the market segment of interest.

To arrive at this position business must develop some sort of marketing plan.

It is perhaps one of the most important aspects of a business and correctly done will provide a sound foundation for long-

term business development.

What is the Marketing Plan? In simple terms, this plan is a statement of the tactics and strategy (the program) that must

be used to reach the goals and objectives of the company. The goals and objectives come from an analysis of the prob-

lems and opportunities facing the company, which In turn is based on a statement of facts. The simple framework of a

plan is, therefore, (1) facts, (2) problems and opportunities, (3) the objectives, (4) the program. With this kind of frame-

work many types of plans can be developed such as sales promotion, advertising, research, and product development.

It is the intent here to provide a brief outline which if followed will assist in the development of a marketing plan. For more

detailed accounts of this procedure, the reader should consult some of the excellent texts specifically on this subject.

The first element of the marketing plan is the determination of the facts. This is sometimes stated as situation analysis.

The list below is one example often used in making up this analysis. In essence, it is sort of a checklist by which a given

business entity can evaluate their position relative to their competitors and the market in general. The use of a single ma-

trix comparing your company’s policies and products with your major competitors can be one of the more enlightening

methods employed in the fact finding analysis. This comparison is commonly referred to as the marketing mix.

THE FACTS (Situation Analysis)

Let's take a picture of the business and our business as it stands right now.

A. Size, scope and share of market

1. Sales history of competition and their market share in dollars and/or units.

2. Market potential and major trends in supply and demand for this product and related products.

3. Pricing history through all levels of distribution, reasons for fluctuations.

B. Sales, costs, profits of company's products

1. Sales history, by size, model, geographic areas

Dec. 2014 Page 4