6.Marketing Plan

8/2/2019 6.Marketing Plan

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Firms Should Consider Key Questions

• What is our business?

• Can we learn from the past?

•How should the present be evaluated?

• What do we envision for the future?



Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copyingequipment

We improve officeproductivity

ColumbiaPictures

We make movies We entertainpeople

Encyclopedia

Britannica

We sell encyclopedias We distribute

information

Carrier We make air conditionersand furnaces

We provide climatecontrol insidehomes



Dimensions That Define a Business

Customer

groups

TechnologyCustomer

needs



Implementing Marketing Strategies• Create a Marketing plan which is a

subsystem of a business plan .• Implementation

– The process of putting marketing strategies into

action

• Intended Strategy

– The strategy that the company decides on during

the planning phase

• Realized Strategy

– The strategy that actually takes place

IntendedStrategy

RealizedStrategy

Implementation



Business plan and Marketing planof an organisation



What is a Marketing Plan?

A marketing plan is the

central instrument for

directing and coordinating

the marketing effort.

It operates at a

strategic and tactical level.



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•A marketing plan is the blueprint or the mapyou intend to follow in order to achieve your

goals.

•If you are planning for existing programs, the

plan will incorporate the strengths of your

current effort with needed changes and

improvements.

•If the plan is for a brand new product orservice, it will pull all the elements together for

an effective start on marketing.

What does it propose ?



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Why have a marketing plan?

To find out where you are

To know where you’re going

How to get there



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Some considerations

• See it as a process

• Form a team

• Keep it simple

• Develop a time-frame

• Give it a life

• Get feedback

• Have a simple revision process• Consistent with mission statement



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Components of a marketing plan

Mission Statement

Executive Summary

Internal Analysis

External Analysis

Objectives

Marketing Strategies

Identify Resources

Implementation

Plan

Marketing Budget

Evaluation Methods



Levels of a Marketing Plan

• Strategic

– Target marketing

decisions – Value proposition

– Analysis of

marketing

opportunities

• Tactical

– Product features

– Promotion – Place

– Pricing

– Sales channels

– Service



The Planning, Implementation,

and Control Processes



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Mission Statement

A clear, concise description of:

• The organizational identity

• What business is the organization

really in

• Results the organization wants to

accomplish



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Some considerations

• A mission statement describes who theorganization is and what business it’sreally in.

• It’s what makes the organization go–

reflects its internal and externalperception.

• It must be understood by everyone.

• It drives the organization and dictateshow things are done.

• It should be kept simple.



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Executive Summary

• An overview

• Readable and concise• Summary of main

objectives of the plan



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Background Current status

Future directions Current resources Strengths and

weaknesses

Internal Analysis



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External Analysis

• Economy

• Demographics

• Trends

• Competition

• Target market



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Estimate probability

– Severe, not severe

– Very likely, very unlikely

Opportunities and Threats



Market Opportunity Analysis (MOA)

• Can the benefits involvedin the opportunity bearticulated convincingly toa defined target market?

• Can the target market belocated and reached withcost-effective media andtrade channels?

• Does the company possessor have access to thecritical capabilities andresources needed todeliver the customerbenefits?



Market Opportunity Analysis (MOA) (cont.)

• Can the company deliver the

benefits better than anyactual or potentialcompetitors?

• Will the financial rate of return meet or exceed thecompany’s requiredthreshold for investment?



Opportunity Matrix



Threat Matrix



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Who they are

Product/service features

Pricing, packaging, promotion

Competitor

strengths/weaknesses

How are you different?

The Competition



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Current and potential

customers Customer requirements

Market clusters

Customers and Target Markets



27

Customers/target markets

Programs and services

Packaging

Pricing

Promotion

Marketing Strategies



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Steps

Responsibility

Deadlines

Budget

Implementation Plan



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Marketing budget

Advertising/media

Direct mail

Databases

Printing/production

Mailing



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Evaluating the marketing plan

Success measures

Completion of action dates

Accomplishment of goals and strategies

Results

New/repeat customers

Win rate on sales

Average size of contracts

Revenue



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Summary

• The marketing plan

– It’s a process!

– It has discipline

– It results in a positive ROI

Marketing plan for



Marketing plan for

re-launch

• SWOT and competitive analysis – to assess where the businessor brand is currently and what competitors are doing

• Objectives – what the plan needs to achieve

• The marketing strategy – how the objectives will be achieved

• Sales forecast – by how much sales are likely to increase

• Budget – how much the marketing activities will cost and how

the plan will be financed

• Evaluation – how outcomes will be monitored and measured.



• Targeting the male consumer, women are also an

important target market for NIVEA FOR MEN. This is

because women often buy male grooming products for

their partners as well as helping them choose which

products to buy.

•NIVEA FOR MEN used a SWOT analysis to help itassess the market. This takes a detailed look at the

internal strengths and weaknesses of the business, as

well as external opportunities and threats in the

marketplace.





Mission

• The marketing plan must fit with the overall

company strategy that is set out in the

business plan.

• Beiersdorf states its goal as ‘...to increase our

market share through qualitative growth. At

the same time we want to further improve

our sound earnings performance so that we

can fulfill our consumers’ wishes and needswith innovations today and in the future. This

will give us a strong position within the

global competitive environment.’



Working the plan

• The marketing team set SMART objectives for the

NIVEA FOR MEN relaunch. These are

• Specific,

• Measurable,

• Achievable,

• Realistic

(given the available resources) and Time constrained(to be achieved by a given date).



Working the plan

• The marketing team used research data to forecastmarket trends over the next three-to-five years to set

specific targets for increasing sales, growing market

share and improving its brand image.

• Beiersdorf wanted to increase its UK market share forNIVEA FOR MEN, but also wanted greater market

penetration for male skincare products.

•Wanted not just a greater share of the existingmarket; it wanted to expand that market. It wanted

more men buying skincare products.



Working the plan• key aim was to move men from just considering

skincare products to making actual purchases but to

sell more male skincare products to women.

• Research had indicated that women were often theinitial purchaser of skincare products for men.

•Another objective was to develop the NIVEA FORMEN brand image. The NIVEA brand has always stood

for good quality products that are reliable, user-

friendly and good value for money..

Strategies on how the objectives would



Strategies on how the objectives wouldbe achieved within the designated budget

the management team.



• Product- Nievia for men skin care

• Pricing- Targeting the Upper & Middle segment

• Place- Initially UK and then Global

• Promotion-

• Above-the-line promotions: Direct expenditureon advertising, such as for a TV commercial.

• Below-the-line promotions: Indirect expenditureon promotion, such as through free gifts, PR or

competitions.

The 4 P’s



Promotional Mix

• The use of sport for brand affinity for NIVEA FOR

MEN among men.

• Press advertorials in popular men’s magazines,

making the daily usage of their products more

acceptable.

• Promotions by way of distribution of free samples

encouraged trial of NIVEA FOR MEN products which

drove purchase.



Evaluation -Was this in line with objectives?

• Overall sales - Internationally, NIVEA FOR MEN skincare

products grew by almost 20%. Its sales in the UK market at

retail in 2008 were nearly £30 million and in line with

expectations.

• Brand image ratings - NIVEA FOR MEN was the Best Skincare

Range winner in the FHM Grooming Award 2008 for the fifth

year running.

• Product innovation - In response to consumer feedback and

following extensive product innovation and development, the

NIVEA FOR MEN range has been expanded and the existing

formulations improved

Documents

6.Marketing Plan