Mkt Plan


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Mkt Plan

  1. 1. What is a Marketing Plan? <ul><li>A written report for the marketing strategy </li></ul><ul><li>Varies widely in scope and detail </li></ul><ul><li>All plans need to be based on analyses of </li></ul><ul><ul><li>Product-market and segments </li></ul></ul><ul><ul><li>Industry and competitive structure </li></ul></ul><ul><ul><li>Organization’s value proposition </li></ul></ul>IpKin Anthony Wong, Ph.D. Macau University of Science and Technology
  2. 2. The Goal <ul><li>To sell your idea for expansion to a marketing manager, senior executive manager, investor, bank, venture capitalist, small business administrator, etc. </li></ul><ul><li>To demonstrate that your idea will generate profitability. </li></ul>
  3. 3. Planning Relationships and Frequency <ul><li>Marketing plans are developed, implemented, evaluated, and adjusted to keep the strategy on target </li></ul><ul><li>3 to 5 years </li></ul><ul><li>A series of annual plans (or in shorter terms e.g., 6-month) </li></ul><ul><li>Annual plan To manage marketing activities during the year </li></ul><ul><ul><li>Budgets for marketing activities </li></ul></ul><ul><ul><li>Marketing mix tactics (product, distribution, price, and promotion) </li></ul></ul>
  4. 4. Planning Considerations <ul><li>Include: </li></ul><ul><ul><li>Expected results (objectives) </li></ul></ul><ul><ul><li>Market targets </li></ul></ul><ul><ul><li>Actions </li></ul></ul><ul><ul><li>Responsibilities </li></ul></ul><ul><ul><li>Schedules and dates </li></ul></ul><ul><li>The plan should indicate </li></ul><ul><ul><li>Details and deadlines </li></ul></ul><ul><ul><li>Product/service plans </li></ul></ul><ul><ul><li>Market introduction program </li></ul></ul><ul><ul><li>Advertising and sales promotion actions </li></ul></ul><ul><ul><li>Employee training </li></ul></ul><ul><ul><li>Others </li></ul></ul><ul><li>Answer questions of: </li></ul><ul><ul><li>What, when where, who, how and why for each action targeted for completion during the planning period </li></ul></ul>
  6. 6. I. Strategic Situation Summary (or Executive Summary) <ul><li>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. </li></ul><ul><li>In 4 to 5 paragraphs tell the reader the overview of your plan. </li></ul><ul><li>Prove why the idea will work. </li></ul><ul><li>Sell your idea, keep the reader engaged. </li></ul><ul><li>You are wetting the appetite to read. </li></ul><ul><li>You have 30 seconds to sell your idea. </li></ul>
  7. 7. II. Company Overview <ul><li>What is your company? </li></ul><ul><li>Company history and background </li></ul><ul><li>Mission and Vision </li></ul><ul><ul><li>Establish the goals of your operation </li></ul></ul><ul><ul><li>Specify, how you will earn revenue </li></ul></ul><ul><li>Product and services </li></ul><ul><li>Current marketing mix strategy </li></ul><ul><li>Financial Situation (SEC filing e.g., 10-K (annual filing) and 10-Q (quarter filing)) </li></ul><ul><li>Structure </li></ul><ul><ul><li>Functional, regional, matrix </li></ul></ul><ul><li>Resource </li></ul><ul><ul><li>$$, land, HR, relationship, IT? </li></ul></ul><ul><li>Management style </li></ul>
  8. 8. Tools <ul><li>Check out “Useful Links” on the class website </li></ul><ul><ul><li>Demonstrate that you know your competition </li></ul></ul><ul><ul><li>Demonstrate competency </li></ul></ul><ul><ul><li>Substantiate your proposition </li></ul></ul>
  9. 9. What do consumers need? <ul><li>You need to discuss your competitive advantage vis-à-vis the competition here. </li></ul><ul><ul><li>What needs do customers have that aren’t currently be satisfied. </li></ul></ul><ul><ul><li>Folks, this is the key to marketing. Identify unfulfilled needs and satisfy them. </li></ul></ul><ul><li>Ask yourself, what societal forces drive customers to buy your products or services? </li></ul><ul><li>From a B2B point of view—what do business (organization) customers need. </li></ul>
  10. 10. THE DEMOGRAPHIC TRAP <ul><li>We are obsessed with thinking strictly of money. </li></ul><ul><ul><li>Aim for the needs and income becomes secondary </li></ul></ul><ul><ul><li>People will pay for what they need or think they need </li></ul></ul><ul><ul><li>The higher income family doesn’t necessarily have disposable income </li></ul></ul>
  11. 11. III. Current Market Situation for the Market-Targets <ul><li>Analysis of the current situation of the company, product, market, environment, and competition </li></ul><ul><ul><li>Market overview </li></ul></ul><ul><ul><ul><li>Market demographics and needs </li></ul></ul></ul><ul><ul><ul><li>Market trends and target market growth, and potential </li></ul></ul></ul><ul><ul><li>Competitive and industry analysis (This part can be discussed as Porter’s 5 forces here or in the Environmental Analysis section) </li></ul></ul><ul><ul><li>Product/service overview </li></ul></ul><ul><ul><li>Keys to success and critical issues </li></ul></ul>
  12. 12. III. Current Market Situation for the Market-Targets <ul><li>The market target may be defined demographically (key characteristics only), geographically, or in social/economic terms. </li></ul><ul><li>Each market target should have needs and wants that differ to some degree from other targets. </li></ul><ul><li>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. </li></ul>
  13. 13. IV. Environmental Analysis <ul><li>Macro-Environmental Trends, Impacts, and implication </li></ul><ul><ul><li>STEPP analysis (impacts from 5 environmental dimensions) </li></ul></ul><ul><ul><ul><li>Social </li></ul></ul></ul><ul><ul><ul><li>Technological </li></ul></ul></ul><ul><ul><ul><li>Economical </li></ul></ul></ul><ul><ul><ul><li>Political </li></ul></ul></ul><ul><ul><ul><li>Physical </li></ul></ul></ul>
  14. 14. <ul><li>Micro-Environment </li></ul><ul><ul><li>Porter’s five competitive forces (This part can be discussed in competitive and industry analysis section) </li></ul></ul><ul><ul><ul><li>Barriers to new entry </li></ul></ul></ul><ul><ul><ul><li>Degree of rivalry (competitor) </li></ul></ul></ul><ul><ul><ul><li>Power of supplier </li></ul></ul></ul><ul><ul><ul><li>Power of buyer </li></ul></ul></ul><ul><ul><ul><li>Threat of substitutes </li></ul></ul></ul><ul><ul><li>SWOT analysis </li></ul></ul><ul><ul><ul><li>Strengths (relative to your competitors) </li></ul></ul></ul><ul><ul><ul><li>Weaknesses (relative to your competitors) </li></ul></ul></ul><ul><ul><ul><li>Opportunities </li></ul></ul></ul><ul><ul><ul><li>Threats </li></ul></ul></ul><ul><li>Competitive strategy </li></ul><ul><ul><li>How will the firm compete? </li></ul></ul><ul><ul><li>What are the managerial implications of these environmental factors </li></ul></ul>
  15. 15. V. Marketing Objectives and Strategy <ul><li>Mission </li></ul><ul><li>Marketing objectives </li></ul><ul><ul><li>Target market, position, customer satisfaction, mkt share, and others </li></ul></ul><ul><li>Financial objectives </li></ul><ul><li>Target market(s) </li></ul><ul><li>Positioning Strategy: </li></ul><ul><ul><li>Write statements that describe how you want each market target to perceive each product relative to competition. </li></ul></ul><ul><ul><li>State the core concept used to position the product (brand) in the eyes and mind of the targeted buyer. </li></ul></ul><ul><ul><li>The positioning statement should describe: </li></ul></ul><ul><ul><ul><li>(1) What criteria or benefits the customer considers when buying a product along with the level of importance, </li></ul></ul></ul><ul><ul><ul><li>(2) What we offer that differentiates our product from competition, and </li></ul></ul></ul><ul><ul><ul><li>(3) The limitations of competitive products. </li></ul></ul></ul><ul><li>Strategy Summary </li></ul>
  16. 16. Matching Location With… <ul><li>Demographics— </li></ul><ul><ul><li>Your product or service caters to young families. Your zip code has young families. </li></ul></ul><ul><li>Geographics— </li></ul><ul><ul><li>Your product/service helps consumers in warm climates or those in nursing homes. Your location has these. </li></ul></ul><ul><li>Lifestyle— </li></ul><ul><ul><li>Your product/service is targeted to surfers, your location is near the beach. </li></ul></ul><ul><li>Behavioral Variables— </li></ul><ul><ul><li>African Americans, Hispanic, Gay, Ethnic consumers have needs for specific products or services. You fill these needs. </li></ul></ul>
  17. 17. State your objectives <ul><li>What do you plan to offer investors? </li></ul><ul><li>What are your goals as a business? </li></ul><ul><li>Two types of objectives: marketing and financial. No marketing—No financial. </li></ul><ul><li>Customer satisfaction, retention, market share, order fulfillments, acquisition. </li></ul><ul><ul><li>Sales volume, profitability, return on investment, break-even. </li></ul></ul>
  18. 18. IMPORTANT <ul><li>Are your objectives feasible? </li></ul><ul><ul><li>Do you have an idea of the market size? </li></ul></ul><ul><ul><li>How much market share do you need to obtain to break even? </li></ul></ul><ul><ul><li>What are your fixed costs going to be? How many units do you have to sell to break even? Is it feasible? </li></ul></ul>
  19. 19. VI. Marketing Research <ul><li>Describe the market research problem and the kind of information needed. Include a statement which addresses why this information is needed. </li></ul><ul><li>Steps: </li></ul><ul><ul><li>Research objective </li></ul></ul><ul><ul><li>Procedure </li></ul></ul><ul><ul><li>Data Analysis and Result </li></ul></ul><ul><ul><li>Managerial implication </li></ul></ul>
  20. 20. <ul><li>A. Product Strategy </li></ul><ul><li>Identify how each product fits the market target. </li></ul><ul><li>Other issues that may be addressed would be new product suggestions, adjustments in the mix of existing products, and product deletion candidates. </li></ul><ul><li>B. Price Strategy </li></ul><ul><li>The overall pricing strategy (I.e., competitive, premium-priced, etc.) should be identified along with a cost/benefit analysis if applicable. </li></ul><ul><li>Identify what role you want price to play, i.e., increase share, maintenance, etc. </li></ul>VII. Market Mix Strategy for Each Market Target
  21. 21. <ul><li>C. Distribution Strategy </li></ul><ul><li>Describe specific distribution strategies for each market target. </li></ul><ul><li>Issues to be addressed are intensity of distribution (market coverage) </li></ul><ul><li>How distribution will be accomplished </li></ul><ul><li>Assistance provided to distributors. </li></ul><ul><li>The role of the sales force in distribution strategy should also be considered. </li></ul><ul><li>D. Promotion Strategy </li></ul><ul><li>Promotion strategy is used to initiate and maintain a flow of communication between the company and the market target. </li></ul><ul><li>To assist in developing the communications program, the attributes or benefits of our product should be identified for each market target. </li></ul><ul><li>How our product differs from competition (competitive advantage) should be listed. </li></ul><ul><li>The sales force’s responsibilities in fulfilling the market plan must be integrated into the promotion strategy. </li></ul><ul><li>Strategies should be listed for (1) personal selling, (2) advertising, (3) sales promotion, and (4) public relations. </li></ul>
  22. 22. The Why’s of Feasibility <ul><li>You are going to specify your marketing mix. </li></ul><ul><ul><li>Specific products/services </li></ul></ul><ul><ul><li>Prices </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><li>Be specific here. The product/service, the need it fills, the value it offers customers. </li></ul>
  23. 23. The Price <ul><ul><li>How are your products/serviced priced vis-à-vis the competition? </li></ul></ul><ul><ul><li>Do they offer customers value? </li></ul></ul><ul><ul><li>Do they encourage repeat purchase? </li></ul></ul><ul><li>Conduct a formal break even analysis. </li></ul><ul><ul><li>How many units do you need to sell to break even? </li></ul></ul><ul><ul><li>Fixed Costs/(Selling Price-Contribution Margin) </li></ul></ul>
  24. 24. The Promotional Campaign <ul><li>Allocate funds for promotion: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Sales Incentives </li></ul></ul><ul><ul><li>Public Relations </li></ul></ul><ul><ul><li>Direct Marketing </li></ul></ul><ul><ul><li>Sales Force, Meeting, etc. </li></ul></ul>
  25. 25. VIII. Financial Forecasts and Budgets <ul><li>Including budget details of expected revenue, expenses, and profits from marketing programs—by month, by product, by territory, by manager, etc. </li></ul><ul><ul><li>Sales/revenue forecast(s) </li></ul></ul><ul><ul><li>Marketing expense budget(s) </li></ul></ul><ul><ul><li>Break-even analysis </li></ul></ul><ul><ul><li>Profit and loss analysis </li></ul></ul>
  26. 26. The Budget <ul><li>You will need to create a 3-5 year budget—essentially a pro-forma statement. </li></ul><ul><li>Sales </li></ul><ul><li>Cost of Goods Sold </li></ul><ul><li>Gross Profit </li></ul><ul><li>Selling and General Administration Expenses </li></ul><ul><li>Operating Profit or Loss </li></ul>
  27. 27. IX. Controls and Contingency Plan <ul><li>Showing how plan will be put into action, performance measured, and adjustments made when necessary </li></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><ul><li>Actions to be taken, responsibilities, time schedules, and other implementation information </li></ul></ul></ul><ul><ul><ul><li>Coordination with other business functions </li></ul></ul></ul><ul><ul><ul><ul><li>Indicate other departments/functions that have responsibilities for implementing the marketing plan. </li></ul></ul></ul></ul><ul><ul><li>Performance measure and evaluation </li></ul></ul><ul><ul><ul><li>E.g., market share, customer satisfaction and retention, profit margin </li></ul></ul></ul><ul><ul><li>Contingency planning </li></ul></ul><ul><ul><ul><li>Indicate how your plans should be modified if events should occur that are different from those assumed in the plan </li></ul></ul></ul>
  28. 28. Controlling the Plan <ul><li>How will you monitor whether or not you are meeting your financial goals. </li></ul><ul><ul><li>Do you have plans in place to set up a retrenchment? </li></ul></ul><ul><ul><li>Do you have plans in place to exploit a fast growth? </li></ul></ul><ul><ul><li>Who is going to perform a marketing audit– a detailed analysis of marketing capabilities and performance. </li></ul></ul><ul><ul><ul><li>How often will your company perform an audit? Or, how often will it perform elements of the audit? </li></ul></ul></ul>
  29. 29. X. The Conclusion <ul><li>A brief summary (1-2 paragraphs) of reiterating why your plan will be successful and beneficial to investors or to your company. </li></ul>
  30. 30. INTERNATIONAL PLANNING PROCESS Source: Philip R Cateora, International Marketing, Irwin, 1996.