IpKin Anthony Wong, Ph.D. Macau University of Science and Technology
To sell your idea for expansion to a marketing manager, senior executive manager, investor, bank, venture capitalist, small business administrator, etc.
To demonstrate that your idea will generate profitability.
Planning Relationships and Frequency
Marketing plans are developed, implemented, evaluated, and adjusted to keep the strategy on target
3 to 5 years
A series of annual plans (or in shorter terms e.g., 6-month)
Annual plan To manage marketing activities during the year
Budgets for marketing activities
Marketing mix tactics (product, distribution, price, and promotion)
Expected results (objectives)
Schedules and dates
The plan should indicate
Details and deadlines
Market introduction program
Advertising and sales promotion actions
Answer questions of:
What, when where, who, how and why for each action targeted for completion during the planning period
MARKETING PLAN OUTLINE
I. Strategic Situation Summary (or Executive Summary)
Summarize the key points from your situation analysis (market analysis, segments, industry/competition) in order to recount the major events and provide information to better understand the strategies outlined in the marketing plan.
In 4 to 5 paragraphs tell the reader the overview of your plan.
You need to discuss your competitive advantage vis-à-vis the competition here.
What needs do customers have that aren’t currently be satisfied.
Folks, this is the key to marketing. Identify unfulfilled needs and satisfy them.
Ask yourself, what societal forces drive customers to buy your products or services?
From a B2B point of view—what do business (organization) customers need.
THE DEMOGRAPHIC TRAP
We are obsessed with thinking strictly of money.
Aim for the needs and income becomes secondary
People will pay for what they need or think they need
The higher income family doesn’t necessarily have disposable income
III. Current Market Situation for the Market-Targets
Analysis of the current situation of the company, product, market, environment, and competition
Market demographics and needs
Market trends and target market growth, and potential
Competitive and industry analysis (This part can be discussed as Porter’s 5 forces here or in the Environmental Analysis section)
Keys to success and critical issues
III. Current Market Situation for the Market-Targets
The market target may be defined demographically (key characteristics only), geographically, or in social/economic terms.
Each market target should have needs and wants that differ to some degree from other targets.
These differences may be with respect to types of products purchased, use situation, frequency of purchase, and other variations that indicate a need to alter the positioning strategy to fit the needs and wants of each target.
IV. Environmental Analysis
Macro-Environmental Trends, Impacts, and implication
STEPP analysis (impacts from 5 environmental dimensions)
Porter’s five competitive forces (This part can be discussed in competitive and industry analysis section)
Barriers to new entry
Degree of rivalry (competitor)
Power of supplier
Power of buyer
Threat of substitutes
Strengths (relative to your competitors)
Weaknesses (relative to your competitors)
How will the firm compete?
What are the managerial implications of these environmental factors
V. Marketing Objectives and Strategy
Target market, position, customer satisfaction, mkt share, and others
Write statements that describe how you want each market target to perceive each product relative to competition.
State the core concept used to position the product (brand) in the eyes and mind of the targeted buyer.
The positioning statement should describe:
(1) What criteria or benefits the customer considers when buying a product along with the level of importance,
(2) What we offer that differentiates our product from competition, and
(3) The limitations of competitive products.
Matching Location With…
Your product or service caters to young families. Your zip code has young families.
Your product/service helps consumers in warm climates or those in nursing homes. Your location has these.
Your product/service is targeted to surfers, your location is near the beach.
African Americans, Hispanic, Gay, Ethnic consumers have needs for specific products or services. You fill these needs.
State your objectives
What do you plan to offer investors?
What are your goals as a business?
Two types of objectives: marketing and financial. No marketing—No financial.
Customer satisfaction, retention, market share, order fulfillments, acquisition.
Sales volume, profitability, return on investment, break-even.
Are your objectives feasible?
Do you have an idea of the market size?
How much market share do you need to obtain to break even?
What are your fixed costs going to be? How many units do you have to sell to break even? Is it feasible?
VI. Marketing Research
Describe the market research problem and the kind of information needed. Include a statement which addresses why this information is needed.
Data Analysis and Result
A. Product Strategy
Identify how each product fits the market target.
Other issues that may be addressed would be new product suggestions, adjustments in the mix of existing products, and product deletion candidates.
B. Price Strategy
The overall pricing strategy (I.e., competitive, premium-priced, etc.) should be identified along with a cost/benefit analysis if applicable.
Identify what role you want price to play, i.e., increase share, maintenance, etc.
VII. Market Mix Strategy for Each Market Target
C. Distribution Strategy
Describe specific distribution strategies for each market target.
Issues to be addressed are intensity of distribution (market coverage)
How distribution will be accomplished
Assistance provided to distributors.
The role of the sales force in distribution strategy should also be considered.
D. Promotion Strategy
Promotion strategy is used to initiate and maintain a flow of communication between the company and the market target.
To assist in developing the communications program, the attributes or benefits of our product should be identified for each market target.
How our product differs from competition (competitive advantage) should be listed.
The sales force’s responsibilities in fulfilling the market plan must be integrated into the promotion strategy.
Strategies should be listed for (1) personal selling, (2) advertising, (3) sales promotion, and (4) public relations.
The Why’s of Feasibility
You are going to specify your marketing mix.
Be specific here. The product/service, the need it fills, the value it offers customers.
How are your products/serviced priced vis-à-vis the competition?
Do they offer customers value?
Do they encourage repeat purchase?
Conduct a formal break even analysis.
How many units do you need to sell to break even?
Fixed Costs/(Selling Price-Contribution Margin)
The Promotional Campaign
Allocate funds for promotion:
Sales Force, Meeting, etc.
VIII. Financial Forecasts and Budgets
Including budget details of expected revenue, expenses, and profits from marketing programs—by month, by product, by territory, by manager, etc.
Marketing expense budget(s)
Profit and loss analysis
You will need to create a 3-5 year budget—essentially a pro-forma statement.
Cost of Goods Sold
Selling and General Administration Expenses
Operating Profit or Loss
IX. Controls and Contingency Plan
Showing how plan will be put into action, performance measured, and adjustments made when necessary
Actions to be taken, responsibilities, time schedules, and other implementation information
Coordination with other business functions
Indicate other departments/functions that have responsibilities for implementing the marketing plan.
Performance measure and evaluation
E.g., market share, customer satisfaction and retention, profit margin
Indicate how your plans should be modified if events should occur that are different from those assumed in the plan
Controlling the Plan
How will you monitor whether or not you are meeting your financial goals.
Do you have plans in place to set up a retrenchment?
Do you have plans in place to exploit a fast growth?
Who is going to perform a marketing audit– a detailed analysis of marketing capabilities and performance.
How often will your company perform an audit? Or, how often will it perform elements of the audit?
X. The Conclusion
A brief summary (1-2 paragraphs) of reiterating why your plan will be successful and beneficial to investors or to your company.
INTERNATIONAL PLANNING PROCESS Source: Philip R Cateora, International Marketing, Irwin, 1996.