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Chapter 1:Introduction to Marketing Planning

Presentation 2005 Marian Burk Wood - all rights reserved

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What is a marketing plan for?What is a marketing plan for?

To summarize marketplace knowledge

To show what marketing will accomplish

To detail marketing strategies, activities

To show how progress will be measured

To explain implementation control


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Marketing plan contentsMarketing plan contents

1. Executive summary, table of contents

2. Current situation (with SWOT)

3. Objectives and issues analysis

4. Target market

5. Marketing strategy and programs

6. Financial plans

7. Implementation controls


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Researching the current situationResearching the current situation

Examine external environment

Assess internal capabilities

Understand competitors strategies Analyze stakeholders influence


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Understanding markets/customersUnderstanding markets/customers

Learn about markets and customers

Examine needs, wants, attitudes

Research buying behaviors


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Planning segmentation, targeting,Planning segmentation, targeting,

and positioningand positioning

Identify segments, decide which to target

Create competitively distinctive positionin the minds of targeted customers


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Planning direction, objectives,Planning direction, objectives,

and marketing supportand marketing support

Determine strategic direction

Set objectives

Plan customer service support

Plan internal marketing support


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Approaches to growthApproaches to growth

Exhibit source: Adapted from Alan R. Andreasen and Philip Kotler, Strategic Marketing for Non-Profit Organizations, 6e (Upper

Saddle River, NJ: Prentice Hall, 2003), 81.


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Promotion

advertising,selling, sales

promotion

Channellocations,

inventory,

coverage

Pricingvalue, discount,

rebate, terms

Offeringproduct, service,

brand, benefit

PRIMARY

MARKETING

TOOLS


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Preparing to track progress andPreparing to track progress andcontrol implementationcontrol implementation

Develop sales forecasts Create budgets and schedules Plan to measure performance Diagnose results Adjust activities as needed


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Guiding principles for marketingGuiding principles for marketing

Expect change

Emphasize relationships Involve everyone

Seek alliances

Be innovative


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Chapter 2:

Analyzing the Current Situation


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Inside the marketing environmentInside the marketing environment

1. Macroenvironment Broad forces that can affect performance

2. Microenvironment Groups that more directly influence

performance


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Using environmental scanningUsing environmental scanning

Exhibit source: Marian BurkWood, Marketing Planning: Principles into Practice (Harlow, Essex, England: PearsonEducation, 2004), 40.


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SWOT analysisSWOT analysis

Strengths

Internal capabilities thatcan help the organization

achieve its objectives

Weaknesses

Internal factors that canprevent the organization

from achieving itsobjectives

Opportunities

External circumstancesthat may be exploited forhigher performance

Threats

External circumstancesthat might hinderperformance


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Analyzing the internal environmentAnalyzing the internal environment

Mission

Resources

Offerings

Previous results

Keys to success, warning signs

Business relationships


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Analyzing the external environmentAnalyzing the external environment

Demographic trends

Economic trends

Ecological trends Technological trends

Political-legal trends

Social-cultural trends

Competitors


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Judging strengths & weaknessesJudging strengths & weaknesses

Exhibit source: Mary K. Coulter, Strategic Management in Action (Upper Saddle River, NJ: Prentice Hall, 1998), 141.


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Sample SWOT: FedExSample SWOT: FedEx


Strengths

FedEx, Kinkos brands

Air, ground strength

Stable workforce

Weaknesses

Possible labor actions

Slower growth in package

volume

Opportunities

New markets (China) Custom/special services

More channels (Kinkos)

Threats

Intense competition Technology

Fuel costs

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Chapter 3:Understanding Markets and

Customers


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Types of marketsTypes of markets

Consumer market

People buying for themselves or their families

Business market Companies, nonprofits, government agencies,

or institutions buying for organizations


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Defining the marketDefining the market


Penetrated market(customers already buying

such an offering)

Target market

(customers being targeted)

Qualified available market

(customers qualified to buy

based on certain criteria)

Available market

(customers interested in, withenough income for, and with

access to offering)

Potential market

(all customers who may be

interested in an offering)

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Calculating market shareCalculating market share

Units:If all companies sell 10 million units of a type ofproduct and Company A sells 2 million units, itsmarket share is 20%

Dollars:If all sales of a type of product total $100 millionand Company As sales are $15 million, itsmarket share is 15%


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Influences on consumer marketsInfluences on consumer markets

1. Cultural considerations Nation or region, subculture, class

2. Social connections Family, friends, colleagues, aspirations

3. Personal factors Lifestyle, motivation, perceptions/attitudes


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Influences on business marketsInfluences on business markets

1. Organizational connections

Role in and influence on buying process,

relations with competing suppliers

2. Organizational considerations

Companys size, industry, share, growth,competition, buying policies, finances,buying cycle, derived demand


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Using marketing researchUsing marketing research

Secondary research Data collected for another purpose

Sources: government, industry groups,

other

Primary research Data collected for a specific situation

Sources: surveys, ethnography, other


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Analyzing markets and customersAnalyzing markets and customers


Understand behavior, needs

Check demographics

Watch for changes Take customers view

Look below the surface

Plan for research

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Chapter 4:Planning Segmentation, Targeting,

and Positioning


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Applying market segmentationApplying market segmentation

Group customers according to similarneeds, habits, or attitudes that can be

addressed through marketing.

Useful if customers in a segment react

differently to marketing, vs. customers inother segments.


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Using segmentation, targeting, andUsing segmentation, targeting, and

positioningpositioning

Presentation 2005 Marian Burk Wood all rights reserved

Segmentation Select the market Apply segmentation variables Assess, select segments for targeting

Targeting Select number, rank segments for entry Select segment coverage strategy

Positioning Select attributes for differentiation Apply positioning through marketing

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Selecting the market to segmentSelecting the market to segment

Define the general market

Eliminate inappropriate markets/segments Geographically difficult to reach

Insufficient purchasing power

Ethical issues Environmental problems


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Variables for consumer marketVariables for consumer marketsegmentationsegmentation


Demographic

Age, gender, household size,

family status, income, race,occupation, religion, class,nationality

Geographic

Location (country, region, state,

city, neighborhood, postal code),distance, climate

Psychographic

Lifestyle, activities, interests

Behavioral/Attitudinal

Benefits perceived/expected,loyalty, usage occasion/rate, userstatus, price sensitivity, product orbrand attitude

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Variables for business marketVariables for business marketsegmentationsegmentation

DemographicIndustry; business size/age; ownership

GeographicLocation; distance; climate

Behavioral/attitudinal

Purchasing patterns/process; user status;benefits expected; supplier requirements


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Assessing segment attractivenessAssessing segment attractiveness


Fit with Company resources Core competencies

Fit with Market factors Competitive factors Economic and technological factors Business environment factors

Identify Most promising segments Order of segment entry

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Coverage strategiesCoverage strategies

Concentrated marketing Target only one segment

Undifferentiated marketing Target all segments with same strategy

Differentiated marketing Use a separate strategy to target eachsegment


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Positioning for competitivePositioning for competitive

advantageadvantage

Use meaningful differentiation

Based on what customers value Conveys the brands value

Apply marketing leverage Positioning drives marketing

Positioning reinforces differentiation


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Chapter 5:Planning Direction, Objectives, and

Marketing Support


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Options for marketing plan directionOptions for marketing plan direction

1. Growth

2. Maintenance

3. Retrenchment


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Growth strategiesGrowth strategies


Market penetration

Sell more of existing products in

existing markets/segments

Market development

Sell existing products in new

segments/markets

Product development

Sell new products in existing

markets/segments

Diversification

Sell new products in new

markets

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Maintenance strategiesMaintenance strategies

Sustain current revenues/share

Wring short-term profits

Prepare for future growth


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Retrenchment strategiesRetrenchment strategies

Exit markets, drop products

Downsize marketing, limit distribution

Close down in orderly fashion


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Effective marketing plan objectivesEffective marketing plan objectives

Specific, time-defined, measurable

Realistic yet challenging

Consistent with mission and goals

Appropriate for environment,opportunities, and threats


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Types of marketing plan objectivesTypes of marketing plan objectives

Marketing objectives To manage key relationships/activities

Financial objectives To attain certain financial results

Societal objectives To achieve social responsibility results


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Sample objectivesSample objectives

Marketing Customer/channel relationships; market

share; brand awareness

Financial ROI; revenue/profit by product, channel;

break-even by product

Societal Greener/cleaner operations; charitable

activities; energy conservation


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Planning marketing supportPlanning marketing support

Customer service Satisfy customer needs

Reinforce positioning, allocate resources

Internal marketing Focus employees on customers

Inform and involve employees Improve employee performance,

satisfaction


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Shaping the marketing mixShaping the marketing mix

Exhibit source: Adapted from Tim Berry and DougWilson, On Target: The Book on Marketing Plans (Eugene, OR: PaloAlto Software, 2001), 107.


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Chapter 6:Developing Product and

Brand Strategy


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What can be marketed as aWhat can be marketed as aproduct?product?

Tangible goods Services Places Ideas Organizations

People


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Product and brand strategyProduct and brand strategy


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Features, benefits, and servicesFeatures, benefits, and services

Features Enable product to perform its function

Benefits Need satisfaction that customers want

Related services

Deliver benefits valued by customers


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Quality and designQuality and design

Quality How well a product satisfies customers

Basic functionality is a given

Design Perform properly, repair easily

Be aesthetically pleasing


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Packaging and labelingPackaging and labeling

Packaging For convenience and product safety

Labeling To communicate contents, uses, warnings


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Product life cycleProduct life cycle


Introduction Growth

MaturityDecline

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New product development processNew product development process

1. Idea generation

2. Screening of ideas

3. Initial concept testing

4. Business analysis5. Prototype design

6. Market testing

7. Commercialization

8. Monitoring reaction


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Managing productsManaging products

Product line

Products in a line are related

Line extension adds a product

Product mix

Assortment of all lines offered Brand extension widens mix


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Branding a productBranding a product

Conveys an identity

Differentiates an offer

Uses words, designs, or symbols

May be legally protected


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Pyramid of brand equityPyramid of brand equity

Exhibit source: Adapted from Kevin L. Keller, Strategic Brand Management 2e (Upper Saddle River, NJ: Prentice Hall), 76.


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Chapter 7:Developing Channel and

Logistics Strategy


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What is the value chain?What is the value chain?

Series of interrelated, value-addedfunctions

Structure of organizations performingthese functions

Gets the right product to the right

markets at the right time, place, price


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Major links in the value chainMajor links in the value chain


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Channel functions to be handledChannel functions to be handled

Match volume, amount, offer tocustomers needs

Share information

Contact, negotiate with customers

Transport and store products


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Planning channel levelsPlanning channel levels

More intermediaries = more levels

Zero-level = direct to customer

One-level = one type of intermediary

Each level must add value, get profit


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Choosing channel membersChoosing channel members

Intensive distribution = many outlets

Selective distribution = fewer outlets

Exclusive distribution = fewest outlets


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Internal influences on channelInternal influences on channelstrategystrategy

Direction, goals, objectives

Resources and core competencies

Marketing activities

Need for control


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External influences on channelExternal influences on channelstrategystrategy

Customers and markets

Environmental factors

Competitors

Intermediary availability


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Planning logisticsPlanning logistics

Manage flows through value chain

Make decisions about: Storage and inventory

Order processing/fulfillment

Transportation


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Chapter 8:Developing Pricing Strategy


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Types of pricingTypes of pricing

Fixed pricing

Customers pay the price set by marketer

Dynamic pricing

Prices vary from customer to customer or

situation to situation


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How customers define valueHow customers define value

The difference between:

total perceived benefits (features, quality,

service, performance, etc.)and

total perceived price (purchase price,repair costs, shipping costs, etc.)


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How pricing affects demandHow pricing affects demand

Elastic demand Small price change significantly increases

or decreases the amount demanded

Inelastic demand Price change does not significantly affect

the amount demanded


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Planning valuePlanning value--based pricingbased pricing

Start with customers perceptions ofvalue and price they will pay

Use target costing to allow for profit orother objectives


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Planning pricing objectivesPlanning pricing objectives

Relate to financial, marketing, societalobjectives

Must be consistent with each other andwith the mission and direction


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External influences on pricingExternal influences on pricing

Customers

Perceptions of value, behavior, attitudes

Competitors Alternatives available to customers

Channel members

Channel profit considerations

Legal, regulatory, ethical concerns

Decision consequences


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Sample pricing in retail channelSample pricing in retail channel


$0

$5

$10

$15$20

$25

$30

$35

$40

Outbound movement in value chain

Price in dollars $20 $24 $36

Producer Wholesaler Retailer

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Internal influences on pricingInternal influences on pricing

Break-even Level at which revenue covers costs

Marketing mix decisions Appropriate for product life cycle, context


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BreakBreak--even analysiseven analysis

Exhibit source: Tim Berry and Doug Wilson, On Target: The Book on Marketing Plans (Eugene, OR: Palo AltoSoftware, 2000), 163.


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Options for adapting pricesOptions for adapting prices

Discounts and allowances

Bundling/unbundling

Product enhancement

Segment pricing


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Chapter 9:Developing Integrated Marketing

Communication Strategy


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Applying integrated marketingApplying integrated marketingcommunication (IMC)communication (IMC)

Coordinate message content/delivery

Ensure consistency of communications

Support the positioning and direction


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Planning for IMCPlanning for IMC


Definetarget

audience

Select IMCtools

Planresearch

Setobjectivesand budget

Analyzeissues

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Who will be targetedWho will be targeted?

Exhibit source: Gary Armstrong and Philip Kotler, Marketing: An Introduction 7e (Upper Saddle River, NJ: Prentice Hall,2005), 405.


IMC bj ti d b d tIMC bj ti d b d t9-5

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IMC objectives and budgetIMC objectives and budget

Establish specific IMC objectives Identify targeted audience(s) Influence behavior, feelings, or attitudes Indicate timing

Develop the IMC budget Part of overall marketing budget Consider objectives, IMC tools, markets

targeted, competition, potential ROI


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Issues in IMC planningIssues in IMC planning

Legal/regulatory

Ethical

Cultural

Competitive


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Personal

Selling

Direct

Marketing

Public

Relations

Sales

Promotion

Advertising

MAJOR

IMCTOOLS


Planning advertisingPlanning advertising9-8

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Planning advertisingPlanning advertising


Market scale Local, regional, national, global

Media choices Reach vs. frequency; radio, outdoor, print,Internet, TV, direct mail, other

Message content Rational appeal or emotional appeal; design,wording, format, graphics, sound, other

Target audience characteristics Demographic, geographic, psychographic,behavioral, media habits

Planning sales promotionPlanning sales promotion9-9

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Planning sales promotionPlanning sales promotion

Audiences

Consumers, channel, salespeople

Objectives Build awareness, support IMC campaign

Encourage trial/usage/repurchase

Reinforce loyalty, defend against rivals Encourage speedy response


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Pl i l lliPl i l lli9-11

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Planning personal sellingPlanning personal selling

One-on-one attention

Apply the sales process

Identify and qualify prospects Plan presales approach

Make sales contact

Handle objections, close the sale Follow up after the sale


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Chapter 10:Planning Performance Management

and Implementation Control


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Metrics

Schedules

Budgets

Forecasts

TOOLS FOR

MEASURINGPROGRESS


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Using forecastsUsing forecasts

Estimate future sales and costs

Consider external and internal factors

Think about best-case, worst-case,most likely scenario


Tools for forecastingTools for forecasting10-4

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Tools for forecastingTools for forecasting

Causal analysis methods Regression analysis, econometric models

Time series methods Smoothing, decomposition

Judgmental tools Delphi method, sales force estimates,

executive opinion


Budgeting for marketingBudgeting for marketing10-5

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Budgeting for marketingBudgeting for marketing

Affordability budgeting

Percentage-of-sales budgeting

Competitive-parity budgeting

Objective-and-task budgeting


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Why use marketing metrics?Why use marketing metrics?10-7

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Why use marketing metrics?Why use marketing metrics?

Focus employees on key tasks

Establish performance expectations

that can be measured

Allow internal accountability, pride in

accomplishments


Sample marketing metricsSample marketing metrics10-8

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Sample marketing metricsSample marketing metrics

New customer acquisition Count new customers attracted within a

year, a quarter, a month

Profitability Measure gross or net margin per product

or brand for given period


Applying marketing metricsApplying marketing metrics10-9

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Applying marketing metricsApplying marketing metrics

Consider expected outcomes

Consider historical results

Consider competitive/industry results

Consider environmental factors


Controlling implementationControlling implementation10-10

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Controlling implementationControlling implementation


Annual plan control

Check progress towardmarketing plan and

program objectives

Profitability control

Check progress towardprofit-related objectives

Productivity control

Check progress toward

higher efficiency inmarketing activities

Strategic control

Check effectiveness in

managing marketing,relationships, ethics,social responsibility

Preparing contingency plansPreparing contingency plans10-11

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Preparing contingency plansPreparing contingency plans

Consider significant, unexpectedchanges and emergencies

Review and update regularly

Apply lessons learned to next plan


Documents

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