Chapter 8 - The Marketing Plan

8/6/2019 Chapter 8 - The Marketing Plan

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ChapterChapter 88

The Marketing PlanThe Marketing Plan



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Industry AnalysisIndustry Analysis

Provide Sufficient Knowledge Of Provide Sufficient Knowledge Of

EnvironmentEnvironment

BroadBroad--Based Assessment Of Based Assessment Of

TrendsTrends

Competitor AnalysisCompetitor Analysis1)1) StrengthsStrengths

2)2) WeaknessesWeaknesses



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Market Research StepsMarket Research Steps

1)1) Define PurposeDefine Purpose

2)2) Gather DataGather Data-- SecondarySecondary

SourcesSources

3)3) Gather InformationGather Information-- PrimaryPrimary

SourcesSources4)4) Analyze/Interpret ResultsAnalyze/Interpret Results



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Marketing PlanMarketing Plan

1)1) Where Have WeWhere Have WeBeen?Been?

2)2) Where Do WeWhere Do WeWant To Go?Want To Go?

3)3) How Do We GetHow Do We GetThere?There?



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CharacteristicsCharacteristicsof Marketing Planof Marketing Plan

Provide StrategyProvide Strategy

Based OnBased OnFacts/AssumptionsFacts/Assumptions

Organization For Organization For ImplementationImplementation

Short & LongShort & Long--TermTerm

ContinuityContinuitySimple/ShortSimple/Short

FlexibleFlexible

Criteria For ControlCriteria For Control



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Environmental FactorsEnvironmental Factors

Financial ResourcesFinancial Resources

Management TeamManagement Team

SuppliersSuppliers

Company MissionCompany Mission



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Steps in Plan PreparationSteps in Plan Preparation

Define SituationDefine Situation

Define Target MarketDefine Target Market

Consider Strengths/WeaknessesConsider Strengths/Weaknesses

Establish Goals/ObjectivesEstablish Goals/ObjectivesDefine Strategy/ActionDefine Strategy/Action



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Target MarketingTarget Marketing

Market SegmentationMarket Segmentation

1.1. ID Bases for SegmentingID Bases for Segmenting

2.2. Develop ProfilesDevelop Profiles

Market TargetingMarket Targeting

3.3. Evaluate Segment AttractivenessEvaluate Segment Attractiveness

4.4. Select Target SegmentsSelect Target Segments

Market PositioningMarket Positioning

5.5. ID Possible Positioning ConceptsID Possible Positioning Concepts

6.6. Develop Marketing MixDevelop Marketing Mix



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Market SegmentationMarket Segmentation

Customer CharacteristicsCustomer CharacteristicsGeographicGeographic

DemographicDemographic

PsychographicPsychographic

Buying SituationBuying SituationDesired BenefitsDesired Benefits

UsageUsage

Buying ConditionsBuying Conditions

Awareness Of Buying IntentionAwareness Of Buying Intention



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Consumer Consumer Market SegmentationMarket Segmentation

DemographicDemographicAge, Family Size, Education Level,Age, Family Size, Education Level,

Family Life Cycle, Income, Nationality,Family Life Cycle, Income, Nationality,

Occupation, Race, Religion, Residence,Occupation, Race, Religion, Residence,

Sex, Social ClassSex, Social Class

GeographicGeographicRegion of Country, City Size, MarketRegion of Country, City Size, Market

Density, ClimateDensity, Climate

PsychologicalPsychological Personality Traits, Motives, Life StylePersonality Traits, Motives, Life Style

BenefitsBenefitsDurability, Dependability, Economy,Durability, Dependability, Economy,

Esteem Enhancement, Status fromEsteem Enhancement, Status from

Ownership, HandinessOwnership, Handiness

Volume of UseVolume of Use Heavy, Medium, LightHeavy, Medium, Light

Controllable ElementsControllable ElementsSales Promotion, Price, Advertising,Sales Promotion, Price, Advertising,

Guarantee, Warranty, Retail StoreGuarantee, Warranty, Retail Store

Purchased Service, Product Attributes,Purchased Service, Product Attributes,

Reputation of Seller Reputation of Seller



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IndustrialIndustrialMarket SegmentationMarket Segmentation

DemographicDemographicNumber of Employees, Size of Sales,Number of Employees, Size of Sales,

Size of Profit, Type of Product LinesSize of Profit, Type of Product Lines

GeographicGeographic Region of CountryRegion of Country

PsychologicalPsychological Degree of Industrial LeadershipDegree of Industrial Leadership

BenefitsBenefitsDependability, Reliability of Seller &Dependability, Reliability of Seller &

Support Service, Efficiency in OperationSupport Service, Efficiency in Operation

or Use, Enhancement of Firm¶s Earning,or Use, Enhancement of Firm¶s Earning,

DurabilityDurability


Controllable ElementsControllable ElementsPrice, Service, Warranty, Reputation of Price, Service, Warranty, Reputation of

Seller Seller



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GovernmentGovernmentMarket SegmentationMarket Segmentation

DemographicDemographicType of Agency, Size of Budget, AmountType of Agency, Size of Budget, Amount

of Autonomyof Autonomy

GeographicGeographic Federal, State, LocalFederal, State, Local

PsychologicalPsychological Degree of Forward ThinkingDegree of Forward Thinking

BenefitsBenefitsDependability, Reliability of Seller &Dependability, Reliability of Seller &

Support ServicesSupport Services


Controllable ElementsControllable Elements Price, Reputation of Seller Price, Reputation of Seller



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Marketing StrategyMarketing Strategy

Product/ServiceProduct/Service

PricingPricing

CostsCosts

Markup/MarginMarkup/Margin

CompetitionCompetition

DistributionDistribution

PromotionPromotion

Consumer vs.Consumer vs.

B2BB2B

BudgetBudget

ImplementationImplementation

Monitor ProgressMonitor Progress

ContingencyContingency



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Product MixProduct Mix

QualityQuality

AssortmentAssortment

Breadth/Depth of LineBreadth/Depth of Line

WarrantyWarranty

GuaranteeGuarantee

ServiceService

PackagePackage



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Price MixPrice Mix--RelationshipsRelationships

$$ Price/Consumer ReactionsPrice/Consumer Reactions

$$ Price/CostPrice/Cost

$$ Price/Competitive ReactionsPrice/Competitive Reactions



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Distribution MixDistribution MixChannelsChannelsRetailersRetailers

WholesalersWholesalers

RepresentativesRepresentatives

Physical DistributionPhysical DistributionStorageStorage

InventoryInventoryTransportationTransportation

WarehousingWarehousing



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Distribution Channel SelectionDistribution Channel Selection

Degree of Degree of DirectnessDirectness Market ConditionsMarket Conditions

Product AttributesProduct Attributes Cost BenefitsCost Benefits

Venture AttributesVenture Attributes

Number of ChannelNumber of Channel

MembersMembers IntensiveIntensive

SelectiveSelective

ExclusiveExclusive

Channel Member Channel Member Selection CriteriaSelection Criteria ReputationReputation

Services ProvidedServices Provided

Number of Number of ChannelsChannels-- 1 or 1 or

Multiple TargetMultiple TargetMarketsMarkets 1 Channel1 Channel

Multiple ChannelsMultiple Channels



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Why Plans FailWhy Plans Fail

Lack of Real PlanLack of Real Plan

Lack of AdequateLack of Adequate

AnalysisAnalysis

Unrealistic GoalsUnrealistic Goals



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Promotion MixPromotion Mix

AdvertisingAdvertising

Personal SellingPersonal Selling

PublicityPublicity

Sales PromotionSales Promotion

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Chapter 8 - The Marketing Plan