Final answer:
The Marketing section of a business plan addresses distribution, pricing, and promotion of the product. Here, strategic planning for reaching and convincing customers is outlined, including setting the price and devising promotional tactics against the backdrop of the firm's market power and the competitive industry.
Step-by-step explanation:
The section of the plan where distribution, pricing, and promotion of the product are discussed is typically the Marketing section. In this section, the strategic approach to reaching potential customers and convincing them to buy the product is outlined. It includes decisions on how the product will be distributed in the market, the pricing strategy that addresses what the firm will charge for its products, and the promotional tactics used to generate interest and sales. All of these aspects are integral to achieving the firm's objectives in a competitive industry where market power, product differentiation, and market entry barriers play crucial roles.
Topics such as what products the firm should produce, which production process to use, output quantities, pricing strategies, labor employment, and other production and cost conditions are pivotal for the firm's functioning. Moreover, these decisions are influenced by the market structure, reflecting on how competitive the industry is and the market power the firm holds.