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2 0 1 2 – S e p
By: Mostafa Gazar

2.  What is Marketing?
 Some theories of communications:
o Linear Model.
o Two-step Model.
o Multi-step Model.
 Marketing laws.
 Sample Marketing Plan Outline.
 References.
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3.  Marketing must be understood not in the old
sense of making a sale - 'selling' - but in the
new sense of satisfying customer needs. Many
people think of marketing only as selling and
advertising.
 Marketing deals with identifying and meeting
human and social needs.
 Marketing can be looked at as an
organizational function and a set of processes
for creating, delivering and communicating
value to customers, and managing customer
relationships in ways that benefit the
organization.
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4. Linear Model (Interactive in case we included the
feedback)
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5. Two-step Model
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6. Multi-step Model
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7. The Law of Leadership
It is better to be first than be better
The Law of the Ladder
The strategy to use depends on which rung
you occupy on the ladder
The Law of the Category
If you can’t be the first in a category, set up a
new category that you can be first in
The Law of Duality
In the long run, every market becomes a two
horse race
The Law of the Mind
It’s better to be first in the mind than to be first
in the marketplace
The Law of the Opposite
If you’re shooting for second place, your
strategy is determined by the leader
The Law of Perception
Marketing is not a battle of products, it’s a
battle of perceptions
The Law of Division
Over time, a category will divide and
become two or more categories
The Law of Focus
The most powerful concept in marketing is
owning a word in the prospect’s mind
The Law of Perspective
Marketing effects take place over an
extended period of time
The Law of Exclusivity
Two companies cannot own the same word
in the prospect’s mind
The Law of Line Extension
There’s an irresistible pressure to extend the
equity of the brand
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8. The Law of Sacrifice
You have to give up something in order to
get something
The Law of Success
Success often leads to arrogance, and
arrogance to failure
The Law of Attributes
For every attribute there is an opposite,
effective attribute
The Law of Failure
Failure is to be expected and accepted
The Law of Candor
When you admit a negative, the prospect will
give you a positive
The Law of Hype
The situation is often the opposite of the way
it appears in the press
The Law of Singularity
In each situation, only one move will produce
substantial results
The Law of Acceleration
Successful programs are not built on fads,
they are built on trends
The Law of Unpredictability
Unless you write your competitor’s plans, you
can’t predict the future
The Law of Resources
Without adequate funding an idea won’t get
off the ground
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1. The Law of Leadership
o The law of leadership is convincing people that you are the first in a
particular market.
o It is easier to convince someone that you are first rather than
convince them that you have a better product.
o The leading brand in a category are usually the first in the mind of
consumers
o People tend to stick with what they’ve got.
2. The Law of the Category
o If you are not the first product in the market, you should try to find a
new category and be the first in that category
o IBM was the first in computers, but DEC was the first in
minicomputers
o Dell was not the first computer seller, but they were the first in selling
computers over the phone
o Everyone is interested in what is new, not necessarily what is better

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3. The Law of the Mind
o The problem is getting the idea or concept into the person’s mind.
o You cannot change a person’s mind – once they perceive a
company of being one thing, they forever feel that it is that thing
eg: Xerox will always be a photocopier company and never a
computer company, no matter how hard they try.
o Sometimes a simple and easy way of getting into a prospect’s
mind is to have an easy to remember name, such as Apple
computers as opposed to the MITS Altair 8800.
4. The Law of the Perception
o The product itself is not central to the marketing, it is the perception
in the mind of the consumers that is the important thing.
o If you tell someone in Japan that you bought a Honda, they would
automatically assume that you are talking about a motorcycle – if
you told someone in New York that you bought a Honda they
would assume that you are talking about a car. Honda is
perceived differently in different markets.

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I. Mission Statement:
A. Purpose of the marketing plan.
B. Why are we in business, personal and business goals?
C. Business goals and objectives as well as specific strategies to
reach them.
II. Product/Service:
A. Identify product/service in terms of name, trademark, color,
shape, and other characteristic, including packaging and
labeling.
B. Describe product/service weaknesses.
C. Describe product lines, and new products/services that will
be introduced.
D. Give cost of each product/service.
E. Give the price you plan to charge for each product/service
F. Identify percent of annual sales and total dollar amount
each product/service represents.

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III. Market:
A. Identify your customers - include all demographic
and lifestyle information.
B. Identify location of customers (local, regional,
national or international).
C. Identify the size of the total market.
D. Identify market trends, including information about
market studies and test marketing.
E. List factors that affect purchasing such as: seasons,
price, availability, service, emotional
considerations, etc…
F. Will promotional activities be concentrated in
specific markets?

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IV. Competition (Direct and Indirect):
A. Identify competitors by divisions, product lines and markets.
B. Identify and compare your company's and your competitors'
strengths and weaknesses.
C. Compare your marketing techniques with those of your
competitors.
V. Pricing:
A. Product/service costs including all variable and fixed
expenses.
B. Be sure all products/services carry their share of expenses plus
provide for profit.
C. Compare prices for your products/services with similar
products/services in the industry.
1. If your prices will be higher, they need to provide the necessary
"added value" to justify.
2. If your prices are lower, explain why in terms of your marketing
strategy.

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VI. Distribution:
A. Identify the most effective methods for
getting products/services to customers in
the target market.
VII. Promotion Mix:
A. Use of ad agency and/or in-house ad
department.
B. Media choices, how selected and target
audience.

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VIII. Sales Forecasting:
A. Show recent sales trends in industry.
B. Project sales and income for next four
quarters.
IX. Action Plan:
A. List all marketing strategies/activities.
B. Prioritize all strategies by levels of
importance.
X. Production:
A. Determine level of production/service
necessary to meet demand generated by
marketing.

16.  Principles of Marketing
 The 22 immutable laws of marketing
 University of Missouri Small Business Start-up
Kit Materials (http://extension.missouri.edu/p/CD31)
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