BUSI204 - Principles of Marketing This document describes strategies that can be used when creating an effective marketing plan. It outlines each strategy in details.

1. Creating An Effective Marketing
Plan

2. A Marketing Plan
 It stems from the strategic business plan
 Provides the road map for all marketing activities of the firm. It is typically
formulated on an annual basis.
 A marketing plan, like a business plan, represents an educated guess and
should undergo periodic evaluation to ensure it meets it objectives and the
business’ needs.
 A marketing plan sets out your essential goals and strategies for promoting
your business or product.
 A marketing plan also assists in the budgeting process to ensure adequate
resource allocation toward planned activities as well as limiting an activity
from ranging too far out of the budget.
 A marketing plan also serves as a process to monitor the actual results
against planned or expected results.
 The plan for a new business is different from an existing business- The
existing business has a history which must be audited and referenced.

3. Key Requirements
1.Start each section or component on a new page
even if each page may have only about 10 lines on
them
2.Do not try to cram too many figures onto one
page
3.Make it easy to read
4.Use a font of 12
5.If the plan is too long it would not be read, so cut
out unnecessary text, however the key information
must be included
6.Do not use Jargon that may not be understood by
all those who will receive the plan, be sure to
explain abbreviations and acronyms

4. Key Elements of Marketing Plan
1. Outline or Table of Contents
2. Introduction
3.Executive Summary
4. Situation Analysis – The Marketing Audit
a) Assumptions
b). History- Sales, Budget, markets and market performance, Key products,
Competitors analysis. PESTAL Analysis, SWOT Analysis
5. Objectives, keep them SMART
6.Strategies-Target market, Positioning, differentiation, branding, labeling, contents
a) Product Strategies- What is the product/s, labeling, logo, contents, size, weight,
barcode ect. (using the Boston consulting mix allocate your products in Quadrant)
b)Price Strategies- Skimming, Penetration, discount policies, prices in other market
segments
c. Promotion Strategies – Advertising, PR., Selling and Sales, Direct/Digital /Internet
Marketing
d) Placement-Distribution strategy
7.Tactics
8.Budget
9. Implementation- Action Plan inclusive of Timelines
10.Control
11.Evaluation- KPI’s- Key performance indicators /measurement of success

5. Outline or Table of Contents
The outline is the headings of each section with
page numbers (remember to include page
numbers- without them, anybody reading your
plan is lost).

6. Executive Summary
 The summary should present the key points of the plan in
a clear and concise form utilizing short sentences and
short paragraphs
 Should not be too long and wordy and about two pages
long.
 All personnel reading the plan should be able to
understand the essence of the plan from this summary.
 It should contain the following:
a)The underlaying assumption on which the plan its based;
b)The objectives of the plan;
c)Must capture all the main elements of the plan including a
SWOT analysis, key strategies to meet goals, identify the
dollar costs necessary, projected revenues as well as other
resources needed.
d)It must also include time scale of its implementation and
how it will be monitored and measured

7. Introduction
 This gives the background to the plan, and the
reasons for its preparation, and outlines its
purposes and uses.
 Who we are in the case of a new company
 Mission- Current
 Vision- Long term

8. Situation Analysis - Marketing
Audit
Explains the Current Situation of the firm
 This section describes where your company stands
now and includes summaries on the external and
internal marketing research.
 Heading can include:
Assumptions;
A review of firm’s environment- PESTEL;
Industry analysis
Company Analysis
Marketing Mix Analysis including. A review of key
products ( a projection in case of a new company)
 A review of key sales areas. If an existing firm,
include an actual sales graph and performance by
product and market for the past 3 years

9. Situational analysis cont’d
Marketing Analysis
Customer Analysis
Competitor analysis
SWOT Analysis
SWOT Analysis

10. Making Assumptions
 They should be few and relate only to the key
issues which would significantly affect the
likelihood of the marketing objectives being
achieved.
 Each assumption should be a brief factual
statement:
 The US$ exchange will remain in the range of
$2.68 per EC$ and the pound sterling will be
$4.00
 Interest rate will not increase by more than 1%
over the next 3 years
 Government tax will increase by……

11. PESTEL
 A PESTEL (formerly known as PEST analysis) is a framework or
tool used to analyze and monitor the macro-environmental factors
that may have a profound impact on an organization's performance.
This tool is especially useful when starting a new business or
entering a foreign market.
 Impeding recession in the USA IN 2021 will resulting in a decline in
consumer spending by 10%.

12. SWOT Analysis
 The key process used in the situational Analysis is SWOT
analysis. It is the firm’s - Strength, Weaknesses as it relates to
its Opportunities and Threats is the marketplace.
 The strengths and weaknesses refers to the company and its
products whereas the opportunities and threats are usually taken
to be external factors over which the firm has no control.
 This analysis enables a company to exploit strengths, overcome
weaknesses, grasps opportunities and defend itself against
threats. Many SWOT are undertaker by firms and can include:
A) Company and Organization SWOT
B) Product SWOT
C)Sales SWOT
D) Competitors SWOT
E) Market Segment SWOT

13. Goals
 Usually broad and is an analysis of what the firm
is aiming to achieve generally.
 It is usually long term and shapes/influence the
objectives.
 Building Brand Awareness
 Generating a high volume of qualified leads
 Establishing thought leadership
 Attributing marketing activities to revenue
generation
 Increasing brand engagement

14. Objectives-
Question: What are we trying to achieve
specifically?
 Every company has objectives. They are simply a
matter of deciding where you want to be and
when you want to get there.
Objectives can be set for:
 A Business- Business objectives
 A Marketing Department-Marketing objectives
 A Product- Product Objectives
 A person

15. Objectives
Must be:
 S- PECIFIC
 M-EASURABLE
 A-CHIEVABLE
 R-EALISTIC
 T-IMELY

16. Marketing Objectives
 Marketing Objectives concerns the balance between
the company, its products and their markets.
 Is the purpose of your marketing plan to launch a
new product or line of products?
 If so, your objectives might read, “Achieve 10
percent market share within the first 12 months of
product launch.”

17. Marketing Objectives
 Is the purpose of your marketing plan to boost
revenue from existing products?
 Your objective then might read, “Increase revenue
12 percent from our existing line of products over
the next six months while maintaining current
profit margins.”

18. Strategies
Strategies answers the question of : How do we
get there?
 Strategies are the things you need to do or
actions you need to take to accomplish your
objectives.
 If your objective is where you want your
company to be, the strategy is the route you
need to take to get there.

19. Strategies cont’d
 For example, if the objective is to increase sales
revenue, your strategies might be one or more of
the following:
 Increase the average price on all units
 Increase overall sales volume
 Sell more of the higher-prices units
 Increase Advertising
 Undertake sales promotion

20. Strategies cont’d
 Segmentation/Target strategies
 Differentiation
 Positioning
 Branding
What is your company’s:
Strategies relating to PRODUCT
Strategies relating to PLACEMENT /DISTRIBUTION
Strategies relating to PROMOTION
Strategies relating to PRICING

21. Product Strategy
 Understand the current position of your portfolio of
products
 Describe your products giving details on ingredients,
weight, size logo, labels ect.
Marketing strategies in respect to:
 New products to be launched
 Changing product portfolio/mix
 Dropping, adding or modifying products
 Changing design/modifying, quality or performance
 Consolidating or standardizing
 Changing the packaging
 Rebranding

22. Ansoff Matrix

23. Boston Consulting Mix Quadrant
Assist with Long term Planning

24. Life cycle of Products cont’d

25. Pricing Strategy
 There are many types of pricing strategies and tactics
that can be considered, but most are classified
broadly as either: Skimming Policies or Penetration
Policies
 Market penetration pricing is a strategy that sets a
low initial price for a product. The goal is to quickly
attract new customers based on the low cost. The
strategy is most effective for increasing market share
and sales volume while discouraging competition.
 Market Skimming Pricing a strategy in which the
producer sets a high introductory price to attract
buyers with a strong desire for the product and the
resources to buy it, and then gradually reduces the
price to attract the next and subsequent layers of the
market.
 Other strategies involves: Changing price, terms and
conditions for groups in particular market segments
 Offering discounts and guarantees

26. Product Mix Pricing Strategies
Product
line pricing
Optional
product
pricing
Captive
product
pricing
By-product
pricing
Product
bundle
pricing
Copyright © 2016 Pearson Education, Inc. 11-10

27. Example of Pricing Strategy
Cont’d
 Discount policy at 5% for nationals of Grenada,
10 % for farmers, 3% for tourists
 Penetrating pricing will be adopted for Jouvey
NIBS and ginger chocolates, since theses will
help us sell more chocolates
 Skimming pricing for the new cinnamon chocolate
as the product is easily copied by competitors.
 For every 4 bars of chocolate purchased
customers will get a bag of colored nutmeg shell
free or an extra 2oz bar free (bundle strategy)

28. Placement strategies
The physical distribution of goods is only one aspect of
distribution. Distribution involves:
 Marketing Channels-:The means that a company
can select to get into contact with its current and
potential customers.
 Physical distribution and nonphysical includes:
 Direct sales- Sales personnel and Sales force
 Distributors-wholesalers and retailers
 Telemarketing/internet and websites
 Direct mail
 Customer Service
 Marketing intermediaries
 Producers, suppliers ect.

29. Placement Strategies
 Change distribution
 Direct distribution
 Increase own sales force coverage in all or some
markets
 Increase retailer and wholesaler outlets in other
geographic locations
 Online sales

30. Promotion Strategies
 Involves the use of the promotion mix
which is the specific blend of promotion tools
that the company uses to persuasively
communicate customer value and build
customer relationships.

31. Integrated marketing
communications.
Consumers are
changing. In this digital
age they are more
informed, and more
communication
empowered.

32. Promotional strategy
 Changing Advertising- new creative
 Increasing public relations strategy
 Participating in 4 sales promotion activities per
year.
 Focusing on Directing marketing through one on
one campaigns
 Engaging in user generated content through
internet and social media campaigns

33. Tactics
 Question: What are the specific actions to be
taken
 Whereas strategies establish a broad outline of
how you want to achieve your objectives, tactics
are specific actions.
 “Increase awareness among potential customers”
is a strategy. “Develop a brochure to send to new
prospects” is simply a tactic for implementing that
strategy.
 Create a Television Ad.

34. https://www.dropbox.com/sh/64dmf39g19eo2dt/AAAor0EVgzLEhO
XaOD7OrCH8a?dl=0&preview=NLA_PLAY+WAY+GENERIC+TVA
D_WEB.mp4
Television Advertising

35. Budget
 Question: What is the cost? What is the return on
investment?
 Of course, each tactic has a price. Add up all
cost, (fixed, variable and total) and you know
what your budget in terms of (cost) must be, to
achieve your goals and objectives.
 Budgeting must be done as scientific as possible
and one can utilized the objective/task method.

36. Budgeting
 Demonstrated that you know understand financial issues/
budgeting issues(cost, revenues, breakeven analysis, profit
and loss matters.
OPERATING EXPENSES BUDGET FOR 2022
ITEM 2019
EXPENSES
$k
INFLATION
%
$k GROWTH
$k
OTHER
$k
2022
EXPENSE
S
$k
Salaries 160 3 4.8 75.0 239.30
Recruitment 3 3 0.1 6.0 9.1
Travel/
Entertainment
30 3 0.9 7.0 37.9
Car Costs 14 3 0.3 6.0 20.4
Advertising 10 3 0.3 11.0 21.3
Exhibition/Sal
es
10 3 0.3 28.0 38.3
Literature 10 3 5.0 15.3
Sundry 10 3 0.3 10.3
Total 247 3 7.4 105.0 33.0 392.4

37. Profit and Loss account for NK
OPERATIONS
2019 2020 2021
Invoiced sales 2,260 2,576 2,937
Cost of Sales 1,356 1,507 1,674
Gross Profit 904 1,069 1,263
Sales and Marketing Costs
Salaries 239.8 249.4 259.4
Recruitment 9.1 3.2 3.4
Travel/Entertainment 37.9 39.4 41.0
Car Costs 20.4 21.2 22.0
Advertising 21.3 22.2 23.0
Exhibitions 38.3 11.0 26.4
Literature 15.3 36.0 31.7
Sundry Items 10.3 10.7 11.1
TOTAL Sales Cost 392.4 393.1 418.0
Administration 159.0 166.4 174.1
Data Processing Costs 32.0 33.3 34.6
Distribution Costs 60.0 65.0 70.0
Total operating Expenses 643.4 657.8 696.7
OPERATING PROFIT 260.6 411.2 566.3

38. Implementation
 Question: When are these actions to be taken?
Action Plan and Schedule
Month Month
1 2 3 4 5 6 7 8 9 10 11
12
Responsibili
ty
Cost
Send out mail
blasts
Marketing
HL
500
Product TV ad and
distribute
Mkt.
Manager
10,500
Exhibition( Sales
Promotion
Sales staff 10,000
Design Packages Mkt. Staff 5.000
Distribution(Placem
ent)
Sales staff 10.000
Product Design Engineering 10,000

39. Control
 Question: How will we monitor our strategies , tactics and
actions?
 How do we measure results?
 Are we meeting timelines and budgets?
 It is important to have a suitable monitoring and control
system to measure performance in achieving the
objectives of the marketing plan and to recommend
corrective action where necessary. This monitoring and
control should be included in the written plan. This
involves:
1.Establishing standards- related to the budgeted sales
and costs and the timescales for the implementation of the
action plans
2.Measuring performance-this would compare actual
performance against the standards
3. Marketing Plan Meeting

40. Evaluation
Assessing overall performance against plans and
projections so that adjustments and interventions can
be made by the company. In marketing it can be sales,
costs, customers, awareness, strategies, among others.
 Questions: Are we met/meeting our objectives?
 What is the return on our investments?
 Are our strategies timely and successful?
 What are the measurements, (KPI’s) or key
performance indicators. This is measured in terms of
Quantitative Data on a goal or objective we are
striving for.
 Example currently, January 2020 we are at 40% and
in 2021 we need a 10%increase to get to 50%.

42. Marketing Plan:
An Example
PlasticMaker Inc.

43. Executive Summary
 PlasticMaker is a plastic injection molding firm
with annual sales of $2 million.
 This plan was developed to provide opportunities
for increasing sales to 40 percent or more over
the next three years.
 The company will expand in sales territory and
attract new customers through direct mailing,
publicity, and the personal selling efforts of
independent manufacturers’ representatives.

44. Situation Analysis
 PlasticMarker uses technological advanced
plastic molding equipment capable of unattended
operation to provide just-in-time service to clients
in Minnesota, Wisconsin, and Michigan’s Upper
Penensula.

45. Situation Analysis
 Sales have been flat over the past two years due
to a highly price-competitive market, but have
experiences steady growth the four previous
years.
 The company has an excellent reputation and
typically turns 15 percent of quote requests into
customers.
 Number of staff?
 Resources currently,
 Management structure

46. Situation Analysis
 Opportunities exist for expansion to Illinois and
Iowa due to higher price points and fewer
competitors in this region.

47. Objectives
 Increase sales by 40 percent over the next three
years while maintaining 20 percent profit margins
or better.
 Retain current mix of customers so no one
customer represents more than 20 percent of
sales.
 Relieve Joe Dokes, owner, of the burden of sales,
allowing him more time for administration and
quality control.

48. Strategies
 In all promotion materials, present clear,
consistent image of quality and service to target
market.
 Hire independent manufacturers’ Sales
Organization to relieve Dokes of Sales
responsibilities.
 Expand to markets beyond current geographic
region of Minnesota, Wiscosin and the upper
Peninsula.

49. Strategies
 Provide ample sales support for sales
representatives.
 Develop training programs for sales
representatives designed to encourage loyalty
and enhance service image of firm.
 Respond to quote requests faster.

54. Budget
 $Resources necessary

55. Implementation
 What?
 When?- Timelines
 How?
 Who is responsible?

56. Control and Evaluation
 Measures and tools