This document contains information about key elements of a marketing plan, including a mission statement, SWOT analysis, goal setting, strategy formulation, and budgets/forecasts. It discusses the importance of defining goals and strategies to achieve them. SWOT involves analyzing internal strengths/weaknesses and external opportunities/threats. The strategy section outlines Porter's three generic strategies of cost leadership, differentiation, and focus. It also discusses strategic alliances between companies. Budgeting puts costs and expected returns in financial terms for the plan period and beyond. Feedback allows course correction and plan revision as needed.

1. Answer from the pre-class reading only.
Negative marks will be applicable for wrong answers.
Answer in one or two sentences.
 Presidency Business School,
QUIZ no. 5
 Name : Date:
 Sem: 1(MKU) Marketing Management

2. Two marks each
 What is the challenge according to Jeffery
Gitomer about customer ?
 What is the term used for the ‘rate at which
they lose customers’?
 How many steps are there to reduce
defection rate?
 What is the key to customer retention?
 Which is the company refered has blended its
external and internal marketing programs?

3. Answers
 What is the challenge according to Jeffery Gitomer about
customer ?
 To produce loyal customer
 What is the term used for the ‘rate at which they lose
customers’?
 Customer defection rate
 How many steps are there to reduce defection rate?
 Four
 What is the key to customer retention?
 Customer satisfaction
 Which is the company refered has blended its external and
internal marketing programs?
 L.L. Beans

4. Attracting and retaining customers
It is no longer enough to satisfy
customers. You must delight them
 Todays customers are difficult to
please.
 The challenge is to produce loyal
customer

5.  Attracting customers
 Customer acquisition requires
substantial skills in lead generation,
lead qualification and account
conversion
 Computing the cost of lost
customer

6.  The need for customer retention
 The key to customer retention is customer
satisfaction.
 Relationship marketing:
1. Basic marketing
2. Reactive marketing
3. Accountable marketing
4. Proactive marketing
5. Partnership marketing

7.  Adding Financial Benefits
Frequency marketing programs
 Adding social benefits
 Here company personnel work on
increasing their social bonds with
customers by individualising and
personalising customer relationships.
 Adding structural ties

8. Customer profitability - the ultimate test
 A profitable customer is a person
household or company that over time
yields a revenue stream that exceeds
by an acceptable amount the
company’s cost stream of attracting,
selling and servicing that customer.

9. Marketing Plan
 What is a marketing plan ?
 - It is the act of putting together in a plan, the various
 elements of the marketing mix in a forecasted / futuristic
 approach
 - How ,who and when of the entire marketing activity is
 written in the plan
 Elements in a plan
 - Mission statement – company’s end aim of business
 - Situation Analysis – Where are we
 - SWOT – Why we are here
 - Objectives of the plan – where do we want to be
 - Strategy, programme – How do we reach there
 - Budgets, forecast, P&L – At what cost

10. 1. Mission Statement
- Mission statement – company’s end aim of business
- Mission statements reflect a vision
- Mission statement should have three characteristics
Focus on limited no. of goals
Stress the major policies and values
Define competitive sphere within which the company
will operate

11. 2. SWOT Analysis
SWOT analysis is the strengths, weaknesses , opportunities
and threats analysis. It involves monitoring external and
internal environment factors
Opportunity and Threat are external factors, external
environmental issues, having a bearing on our business.
A major purpose of environmental scanning is to find new
opportunities.
Companies can use a Market Opportunity Analysis (MOA) to
determine the attractiveness and probability of success:

12. 1. Can the benefits involved in the opportunity be articulated
convincingly to a defined target market?
2. Can the target markets be located and reached with cost
effective media and trade channels?
3. Does the company possess or have access to the critical
capabilities and resources needed to deliver
4. Can the company deliver the benefits better than any
actual or potential competitor?
5. Will the financial rate of return meet or exceed the
company’s required threshold for investment?

13. An environmental threat is a challenge
posed by an unfavourable trend or
development that would lead in the
absence of defensive marketing action,
to lower sales or profit. Threats should
be classified according to seriousness
and probability of occurrence.

14. Just like opportunities and threats are
analysed, strengths and weaknesses
should be evaluated. Clearly a business
does not have to correct all its
weaknesses, nor should it feel too
happy over its strengths.

15. 3. Goal Formulation / Objective setting
After the SWOT, goals have to be set for the specified plan
period.
While setting goals, care should be taken to do the following:
1. They must be arranged hierarchically, from the most
important to the least important.
2. Objectives should be stated quantitatively as far as
possible.
3. Goals should be realistic
4. Objectives must be consistent.

16. 4. Strategy Formulation / Programme
Implementation
Goals indicate what the business wants to achieve, strategy lays
down a long term approach path to reach there.
Michael Porter , laid out three generic strategies that provide a
starting point in building a strategy plan.
1. Overall cost leadership
2. Differentiation
3. Focus
Overall cost leadership means that in the industry , the firm will
achieve the best value engineering and thereby reduce cost of
production.

17. Differentiation means achieving performance in an important
customer benefit area valued by a large part of the market. The
firm should be able to offer a superior differentiation compared
to competition.
Focus means that the business will focus on a narrow segment.
They will achieve cost leadership or differentiation within the
target segment.
Yet another area of strategy formulation is the idea of strategic
alliance with another partner. Strategic alliances can take the
form of marketing alliances. These fall into four categories :
1. Product or service alliances one company licenses to
another to produce its products or two companies jointly
market their complementary products or a new product.
E.g., Hindustan Lever joined with Pepsico to bottle Lipton
Iced tea.

18. 2. Promotional alliance is when one company agrees to carry
a promotion for another company’s product or service.
3. Logistics alliance is when one company offers logistical
services for another company’s product.
4. Pricing collaborations is when one or more companies join
in a special pricing collaboration, such as airlines, hotels,
car rental companies to offer attractive rates.
Programme implementation is the key to any strategy
formulation. This is the stage when a holistic approach should
be adopted and all external and internal customers should be
kept in the picture and made to realize the importance of good
implementation.

19. 5. Budgets / Forecasts /P&L
Any plan has to be followed with a detailed budgeting exercise ,
putting down costs, money required for the project and the
expected returns and variances expected. This should be done
for the plan period and also for the next two or three years.
Feedback and control becomes very important to do course
correction and also redraft the plan if necessary.