Detailed Marketing Plan (for Idea)

8/13/2019 Detailed Marketing Plan (for Idea)

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The Marketing Plan is a highly detailed, heavily researched and, hopefully, well written report that many inside

and possibly outside the organization will evaluate. It is an essential document for both large corporatemarketing departments and for startup companies. Essentially the Marketing Plan

forces the marketing personnel to look internally in order to fully understand the results of past

marketing decisions.

forces the marketing personnel to look e!ternally in order to fully understand the market in which they

operate.

sets future goals and provides direction for future marketing efforts that everyone within theorganization should understand and support.

is a key component in obtaining funding to pursue new initiatives.

The Marketing Plan is generally undertaken for one of the following reasons

". #eeded as part of the yearly planning process within the marketing functional area.

$. #eeded for a specialized strategy to introduce something new, such as new product planning, entering

new markets, or trying a new strategy to fi! an e!isting problem.%. Is a component within an overall business plan, such as a new business proposal to the financial

community.

There are many ways to develop and format a marketing plan. The approach taken here is to present a &'Part

plan that includes

". Part " Purpose and Mission$. Part $ (ituational )nalysis

o Product, Market )nalysis

o *istribution )nalysis

o +ompetitor )nalysis

o inancial )nalysis

o -ther )nalysis

%. Part % Marketing (trategy and -bectiveso inancial -bectives

o Marketing -bectives

/. Part / Tactical Programs

o Markets

o Product

o Promotion

o *istribution

o Pricing

o -thers

0. Part 0 1udgets, Performance )nalysis, Implementationo 1udgeting and )nalysis

o Implementation

&. Part & )dditional +onsiderations

This plan is aimed at individual products and product lines, however, it can be adapted fairly easily for use inplanning one or more strategic business units 2(134. The page length suggested for each section represents a

single'spaced typed format for a plan focused on a single product. -bviously for multi'product plans lengths

will be somewhat longer.


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#ote, throughout the plan the word 5product5 is used. 6owever, the information presented in the Marketing

Plan tutorials applies to products and services.

It is assumed that anyone developing a Marketing Plan possesses a working understanding of marketing

principles.

inally, this tutorial is continually being revised so you may want to check back on a regular basis for any

updates.

Part 1: Purpose and Mission

Part " of the plan is designed to provide the reader with the necessary information to fully understand the

purpose of the marketing plan. This part also includes organizational background information, which may be

particularly important if the audience for the plan is not familiar with the company, such as potential financial

backers. (ome of the information, in particular the mission statement, may re7uire the input of upper'management. The information in this part will prove useful later in the plan as a point of reference for material

that will be introduced 2e.g., may help e!plain pricing decisions4. In cases in which there are separately operated

divisions or (13, there may also be mission statements for each. 28ength one page or less4

1. Purpose of the Marketing Plan

-ffer brief e!planation for why this plan was produced

o e.g., introduce new product, enter new markets, continue growth of e!isting product, yearly

review and planning document, etc.

(uggest what may be done with the information contained in the plan

o e.g., set targets to be achieved in the ne!t year, represents a departmental report to be included in

larger business or strategic plan, etc.

2. Mission Statement

The mission statement consists of a short, finely'honed paragraph that considers the following issues

Identifies a stable 2i.e., not dramatically changing every year4, long'run vision of the organization that

can answer such 7uestions aso 9hy is the company in business:

o 9hat markets do we serve and why do we serve these markets:

o In general terms, what are the main benefits we offer our customers:

e.g., a low price software provider may state they offer ;practical and highly affordablebusiness solutionsesources and +ompetencies

+onsider what the company currently possesses by answering the following

9hat are we good at:

9hat is special about us compared to current and future competitors 2in general

terms do not need to mention names4: 9hat do we do that gives us a competitive advantage:


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+onsider the 7uestions above in term of

people, products, financial position, technical and research capabilities,partnership=supply chain relations, others

o Environment

+onsider the conditions in which company operates including physical 2e.g., facilities4, e7uipment, political regulatory, competitive, economic,

technological, others

Part 2: Situational Analysis

The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented.This part of the Marketing Plan is e!tremely important and 7uite time consuming. or many, finding the

numbers may be difficult, especially for those entering new markets.

The situational analysis covers si! key areas product, target market, distribution, competitors, financial and

other issues.

1. Current Product AnalysisProvide detailed analysis of the company?s product2s4. 28ength "'$ pages4.

*escribe the company?s current product2s4 offerings in terms ofo Product )ttributes

*escribe the main product features, maor benefits received by those using the product,current branding strategies, etc.

o Pricing

*escribe pricing used at all distribution levels such as pricing to final users and todistributors, incentives offered, discounts, etc.

o *istribution

*escribe how the product is made accessible to final users including channels used,maor benefits received by distributors, how product is shipped, process for handling

orders, etc.

o Promotion *escribe promotional programs and strategies in terms of advertising, sales promotion,

personal selling and public relations, how product is currently positioned in the market,

etc.o (ervices -ffered

*escribe support services provided to final users and distributors before, during and after

the sale

2. Describe the Current arget Market!s" E!amine in detail the company?s current target market2s4.

-bviously to do this section correctly takes a great deal of customer'focused research. 28ength $'% pages4.

*escribe the target market approacho 9hat general strategy is used to reach targeted customers: @enerally approaches include

mass market A aim to sell to a large broad market

segmentation approach A aim to selectively target one 2niche4 or more markets

*escribe demographic=psychographic profile of the market

o Profile criteria may include

gender, income, age, occupation, education, family life cycle, geographic region,lifestyle, attitudes, purchasing characteristics, etc.

*escribe the following characteristics of targeted customers

o #eeds=benefits sought by market


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o Product usage

+onsider answers to these 7uestions related to customers using the product such as who is using the product:

why do they use the product:

when do they use the product: how is the product used:

o Product positioning

Evaluate how customers perceive the product in relation to competitor?s products or to

other solutions they use to solve their problemso )ttitudes

9hat is the target market?s attitude regarding the company?s product: 9hat is the target market?s attitude regarding the general product category:

i.e., e!am the general attitude regarding how products from all companies serve

the target market?s needs

*escribe the purchasing process

o 6ow does the target market make their purchase:

9hat does the decision'making process involve: 9hat sources of information are sought:

9hat is a timeline for a purchase 2e.g., impulse vs. e!tended decision'making4:

o 9ho makes the purchase: *oes user purchase or is other party responsible 2e.g., parent purchasing for children4:

o 9ho or what may influence the purchase:

Provide market size estimates

o Beep in mind these are estimates for the market not for a specific product

Provide size estimates for the potential market

9hat is the largest possible market if all buy:

Provide estimates of size for the current target market 9hat percent of the potential market actually purchased:

Provide estimates of future growth rates

)t least through the timeframe for the plan 2e.g., " year4 but most likely longer

2e.g., %'0 year proections4

#. Describe Current Distributor $et%ork2if appropriate4 Evaluate how the company?s product2s4 is

distributed. +learly marketing plans for a service company may not have much detail here but this section will

most likely have some relevance even for service firms 2e.g., package delivery services, online legal service,

etc,4. 28ength $ pages4.

*escribe the channels=supply chain employed to sell and deliver the product (Note: internal sales force

discussion should appear under company promotion in Current Product Analysis above.) o -ptions may include

direct to customer

indirect via a distributor combination of both

9hat are the needs=benefits sought by distributors:

*escribe the product?s role within the distributor network

o 6ow is this product used within the distributor?s business:

o 6ow important is product within the distributor?s strategy:

o 6ow is product positioned:

e.g., how does distributor view product in relation to competitiono )ttitudes and perceptions about companyCs product2s4

Purchase process


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o 6ow does distributor network make their purchase:

o 9ho or what influence distributor?s purchases:

*emographics

o 9ho makes up the distributor network:

types

size

geographic region

markets served

&. Competiti'e AnalysisE!amine the main competitors serving the same target market. This section may also

benefit from the use of comparison tables. 28ength %'/ pages4.

*escribe direct competitors in terms of

o Target markets served

o Product attributes

o Pricing

o Promotion

o *istribution including the distributor network

o (ervices offered

*iscuss competitor?s strengths and weaknesses

o May need to consider much more than ust marketing issues such as

financial standing

target market perception > D * capabilities

*iscuss competitive trends

o May need to include discussion of future competitive threats

(. )inancial Analysis for Product or Product *ine Much of this information can be handled within a

graphical format, such as tables and graphs, though a paragraph e!planation of each is generally re7uired. Makesure to include total dollar 2or other currency4 amounts as well as percentage market share. or more detailed

marketing plans or for plans for seasonal products, providing monthly or even weekly sales figures may be

re7uired. Provide a spreadsheet'style layout showing detailed breakdown of marketing revenues and e!penses.28ength $'/ pages4.

+urrent (ales )nalysis

o -verall industry sales and market share 2for at least the last year4

total market sales

total for company?s product2s4

total for competitiono 1y segments=product categories

total for segments=product categories

total for company?s product2s4

total for competitiono 1y +hannels of *istribution

total for each channel

total for company?s product2s4 by channel total for competition by channel

o 1y @eographic >egion

total for each region total for company?s product2s4 by region

total for competition by region


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Profitability )nalysis

o >evenues

or highly detailed plans break out into categories as shown above in the +urrent (ales

)nalysis section.o Marketing E!penses

Types

*irect A those e!penses that can be tied to the product

Indirect or Proportional A generally administrative or broad marketing e!penses

that may be assigned to a product based on some established criteria 2e.g., aproduct?s percentage of overall company sales4Note: not all companies follow

this approach or highly detailed plans break out into categories as shown above in the +urrent (ales

)nalysis section.

+. ,n'ironmental Problems and -pportunities*escribe trends, events, conditions that are e!ternal 2usually

uncontrolled by the company4 that may impact the company?s product2s4 or the market. 28ength "'$ pages4

)reas of consideration

o social and cultural

o demographico economic

o technological

o political

o legal, regulatory, ethical

. Product/Market Analysis ools In an effort to provide an easy to visualize summary of the product2s4

consider using one or more of the following commonly used product=market analysis tools. 28ength " page4

Product 8ife +ycle )nalysis

Product 8ife +ycle

2Industry 8ife +ycle4

Analyzing Industry Maturity Stages

Product Life Cycle

)o0 asson 3ofer

Anderson 4 5eithaml 3ill 4

6ones

The Product Life Cycle model can help analyzing Product andIndustry Maturity Stages.

Any Business is constantly seeking ays to gro future cash flos !y ma"imizing re#enue from the sale ofproducts and ser#ices. Cash $lo allos a company to maintain #ia!ility% in#est in ne product de#elopmentand impro#e its orkforce& all in an effort to ac'uire additional market share and !ecome a leader in itsrespecti#e industry.

A consistent and sustaina!le cash flo (re#enue) stream from product sales is key to any long*termin#estment% and the !est ay to attain a sta!le re#enue stream is a Cash Co product% leading products thatcommand a large market share in mature markets.

Also% product life cycles are !ecoming shorter and shorter and many products in mature industries arere#italized !y product differentiation and market segmentation. +rganizations increasingly reassess product lifecycle costs and re#enues as the time a#aila!le to sell a product and reco#er the in#estment in it shrinks.

,#en as product life cycles shrink% the operating life of many products is lengthening. $or e"ample% theoperating life of some dura!le goods% such as automo!iles and appliances% has increased su!stantially. Thisleads the companies that produce these products to take their market life and ser#ice life into account hen


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planning. Increasingly% companies are attempting to optimize life cycle re#enue and profits through theconsideration of product arranties% spare parts% and the a!ility to upgrade e"isting products.

It-s clear the concept of life cycle stages has a significant impact upon !usiness strategy and performance. TheProduct Life Cycle method identifies the distinct stages affecting sales of a product% from the product-sinception until its retirement.

In the Introduction stage% the product is introduced to the market through a focused and intense marketingeffort designed to esta!lish a clear identity and promote ma"imum aareness. Many trial or impulse purchases

ill occur at this stage. e"t% consumer interest ill !ring a!out the /roth stage% distinguished !y increasingsales and the emergence of competitors. The /roth stage is also characterized !y sustaining marketingacti#ities on the #endor-s side% ith customers engaged in repeat purchase !eha#ior patterns. Arri#al of theproduct-s Maturity stage is e#ident hen competitors !egin to lea#e the market% sales #elocity is dramaticallyreduced% and sales #olume reaches a steady state. At this point in time% mostly loyal customers purchase theproduct. Continuous decline in sales signals entry into the 0ecline stage. The lingering effects of competition%unfa#ora!le economic conditions% ne fashion trends% etc% often e"plain the decline in sales.Se#eral #ariations of the industry life cycle model ha#e !een de#eloped to address the de#elopment of theproduct% market% and1 or industry. Although the models are similar% they differ as to the num!er and names ofthe stages. 2ere are some ma3or ones456784 $o"4 precommercialization * introduction * groth * maturity * decline.

56794 :asson4 market de#elopment * rapid groth * competiti#e tur!ulence * saturation1maturity ; decline56eithaml4 introduction * groth * maturity * decline566


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7. Summary of Current Situation

(ummarize all information in the (ituational )nalysis. 28ength " page4

Provide a (9-T analysis for the company?s product2s4 that includes

o strengths

o weaknesses

o opportunities

o threats

Part #: Marketing Strategy and -b8ecti'es

Those reading a marketing plan need a clear picture of the direction the product will take. )lso, they want to

see that some accountability has been built into the plan so that the plan is not ust fluff but results inmeasurable actions. The best way to provide this information is through a section devoted to identifying the

key strategies and obectives for the product2s4.

This section consists of three maor issues

Marketing (trategy inancial -bectives

Marketing -bectives

1. Marketing Strategy In this section identify the general marketing strategy under which this plan is being

developed. It is very possible that a product will follow more than one strategy 2e.g., sell more of same product

to current customers but also find new customers in new markets4. Plan developers may get some guidance andalso rationale for strategy by e!amining results from the (ituational )nalysis. In particular, planners may look

to strategies that are suggested within the scope of Product=Market )nalysis Tools. )dditionally, planners

should refer to the Mission (tatement in (tep " to insure strategies are in line with how the company viewsitself. 2Page length less than " page4. (trategies generally fall under one of the following 2or in some cases

more than one4 ideas

Market growth 2see ansoff matri!4

o 6igher market penetration

(ell more to same market 2i.e., get current customers to buy more or buy more

fre7uently4

If overall market is growing this may not necessarily mean a growth in overallmarket share

If overall market is not growing this means a growth in overall market share

o ind new markets

(ell to markets or market segments not previously targeted

o *evelop new products for e!isting customerso *evelop new products for new customers

Market stability

o Techni7ues to keep the status 7uo

Primarily used in times of economic decline or market decline

@enerally re7uires the taking of market share from others in the industry

+ost control

o Techni7ues to contain costs or operate more effectively

+an work in combination with market growth or market stability

Market e!it
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1. Techni7ues to depart a market


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ansoffCs product = market matri!The )nsoff @rowth matri! is a tool that helps businesses decide their product and market growth strategy.

)nsoff?s product=market growth matri! suggests that a business? attempts to grow depend on whether it markets new orexistingproducts in new or existing markets.

The output from the )nsoff product=market matri! is a series of

suggested growth strategies that set the direction for the business

strategy. These are described below

"arket penetrationMarket penetration is the name given to a growth strategy where the

business focuses on selling e!isting products into e!isting markets.

Market penetration seeks to achieve four main obectives

Maintain or increase the market share of current products Athis can be achieved by a combination of competitive pricing

strategies, advertising, sales promotion and perhaps more

resources dedicated to personal selling (ecure dominance of growth markets

>estructure a mature market by driving out competitorsF this would re7uire a much more aggressive

promotional campaign, supported by a pricing strategy designed to make the market unattractive forcompetitors Increase usage by e!isting customers A for e!ample by introducing loyalty schemes

) market penetration marketing strategy is very much about ;business as usual


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2. )inancial -b8ecti'es

or many organizations the ultimate goal of the marketing plan is the effect it will have on the bottom line.Measures reflect income statement items and common ratios. 2Page length less than " page4

+ustomer sales

o by volume and growth percentage

o by segments

+hannel saleso by volume and growth percentage

o by channel

Margins

Profitability

>atios

o use common financial ratios and other metrics associated with marketing in the industry

#. Marketing -b8ecti'es

Marketing success can be measured on several non'financial market metrics. These measure are important

since these often shed light on underlying conditions and circumstances facing the company that are not easily

seen within financial measures. or instance, a company may report strong sales for a product but market shareinformation may suggest the product is losing ground to competitors. The marketing obectives section will

indicate targets to be achieved across several marketing decision areas. To add additional strength to this

section include marketing metrics where possible. 2Page length less than " page4

Target market obectives

o market share

total

by segments by channel

o customers

total number=percentage new

number=percentage retained

o purchases

rate of purchases size=volume of purchases

Promotional obectives

o level of brand=company awareness

o traffic building

2e.g., store traffic, website traffic4o product trials

2e.g. sales promotions, product demonstrations4

o sales force

2e.g. cycle time, cost per call, closing rate, customer visits, etc.4 +hannel obectives

o dealers

total number=percentage new

number=percentage retained

o order processing and delivery

on'time rate


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shrinkage rate

correct order rate

Market research obectives

o studies initiated

o studies completed

>D* obectives

o product development

-ther obectives

o partnerships developed

Part &: actical Marketing Programs

This is the heart of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the

obectives and goals established in (tep %. It is typically the longest section of the plan, often representing 0GHor more of total page count.

In this section details and timetables are presented for si! key decision areas

Target Markets

Product Promotion

Pricing

*istribution

-ther )reas

Preferably this section includes a brief summary of current marketing decisions 2see(ituational )nalysis4 so

readers of the plan can easily compare what was planned to what is planned.

1. arget Market 9ssuesIf the target market remains the same as what was identified in the (ituational)nalysis then identifying the market will be relatively easy though ustification for continuing with this market

is re7uired. or new markets a more detailed discussion is needed. This section also includes the sales forecast

which is the driving force for all financial forecasts. *epending on the depth of detail sought in the marketingplan, it may be a good idea to include likelihood scenarios, such as best case, worst case, and probable case,

when developing the sales forecast. 28ength "'$ pages4

Target market description

o 1rief summary of current target market

o Identify planned changes

(ummarize changes

*escribe using profile 2e.g., demographic, psychographic, behavioral, etc. 4

*escribe how it will be accomplished ustify planned changes

*ue to results

*ue to research *ue to competition

-thers

*escribe target market tactics -bectives

Methods used change target market

Profile the target marketing

Product positioning
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o 1rief summary of product postition

6ow does target market view product in relation to competitor?s products:o Identify planned changes

(ummarize changes in product positioning

ustify planned changes *ue to results

*ue to research

*ue to competition -thers

o *escribe tactics to carryout changes

-bectives e.g. what is desired position:

Methods used to change position

(ales forecast for each product

o 1rief summary of current sales

o Identify changes

(ummarize changes in forecast ustify forecast 2i.e., figures determined based on what information:4

o *escribe forecast

-bectives Methods used to carry out

#umerical estimates

+ategories

Total 1y segment2s4

1y distribution channel

-thers consider likelihood scenario analysis

2. Product 9ssues In this section discuss the decisions to be made for e!isting or new products and services.

Make sure to consider all aspects of product decisions 2branding, labeling, packaging4 and not ust the productitself. )lso, keep in mind product decisions can also impact distributors 2e.g., distributor?s response topackaging used to ship the product4. 28ength "'% pages4

o 1rief summary of current product decisions for users and distributors in terms of

@eneral description e.g., category of product, product line information

eatures=attributes offered

list key features

main benefits target market receives 1randing

Packaging 8abeling

o Identify planned changes

(ummarize changes

or new products 6ow was product developed:

(tage in development process

Timetable for availability ustify changes

*ue to results


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*ue to research

*ue to competition -thers

o *escribe planned changes

Identify changes directed to the targeted user market -bectives

e.g., modify e!isting products, e!tend e!isting product line, develop new

products, develop new uses=benefits for e!isting products, delete current

product, etc. eatures=attributes offered

1randing

Packaging

8abeling

Identify changes to the distributor network

-bectives e.g., improve distribution, improve protection, lower cost of handling, gain

distribution, etc.

eatures=attributes offered 1randing

Packaging 8abeling

#. Promotion 9ssues*escribe the decisions related to how the product will be promoted. In general, promotionconsists of four maor areas A advertising, sales promotion, public relations and personal selling A though not all

may be used. Timetables for promotion are important since certain types of promotions 2e.g., magazine ads,

trade shows4 re7uire long lead times. Most information in this section can be shown in tables and graphs. Eachof the four promotion areas is separated out, however, some planners find it easier to combine the areas. or

instance, the promotional areas could be combined within special promotion programs, such as 6oliday

Promotion Program, (ummer Promotion Program, etc. 28ength "'/ pages4

1rief summary of current promotional decisions for users and distributors in terms ofo @eneral description for four promotional areas

advertising

sales promotion personal selling

public relationso Message=theme

o Methods used

(ummarize methods used

(ummarize spending for each methodo Interrelation of four promotional areas

e.g., e!plain how advertising supports sales promotion Identify planned changes

o (ummarize changes

o ustify changes

*ue to results

*ue to research *ue to competition

-thers

*escribe planned changes

o Identify changes directed to the targeted user market


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@eneral description for four promotional areas

-bectives )dvertising ' e.g., build general awareness=in7uiries=traffic, encourage product

trial, shift awareness 2e.g., change attitude4, response to competitor promotion,

increase use or purchase rate, support other market decisions 2e.g., support salesforce4, general corporate=product image building, etc.

(ales promotion ' e.g., build in7uires, increase product trial, encourage

repurchase, build traffic, support other promotions

Personal selling ' e.g., new account development, account support=maintenance,increase product trial, encourage purchase=repurchase, build traffic, support other

promotions

Public relations ' e.g., build general awareness=in7uiries=traffic, encourageproduct trial, shift awareness 2e.g., change attitude4, respond to negative

news=perception, image building, prepare markets for future activity 2e.g., new

product4 Methods and message

type and media used e.g., ad type 2e.g., television spots, Internet banner ads,

roadside billboards, direct mail, etc.4 , sales promotion type 2e.g., coupons,demonstrations, etc.4, selling type 2e.g., sales force, call center4, pr type 2e.g.,

press release, pitch to magazines, etc.4 message conveyed

(pending and timetables total

sub'divided by

type e.g., ad spending, sales force compensation

media used

targeted userso Identify planned changes directed to the distributor network

@eneral description

-bectives )dvertising ' e.g., build general awareness=in7uiries, encourage product handling,

shift awareness 2e.g., change attitude4, response to competitor promotion, increase

purchase rate, support other market decisions 2e.g., support sales force4, general

corporate=product image building, etc. (ales promotion ' e.g., build in7uires, encouraging inventory building, support

other promotions, encourage handling of new products, obtain distributor

assistance Personal (elling ' e.g., new account development, account support=maintenance,

encourage purchase=repurchase=inventory building

Public >elations ' e.g., build general awareness=in7uiries=traffic, encourage

distribution trial, shift awareness 2e.g., change attitude4, respond to negativenews=perception, image building, prepare markets for future activity 2e.g., new

product4 Methods and message

type and media

message conveyed

(pending and timetables total

sub'divided by

type media used


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targeted distributor network

&. Distribution 9ssuesThis marketing tactics section lays out the distribution plan for the product or service.*istribution is a broad concept that includes all activities and entities 2e.g., value chain partners4 responsible for

getting the product or service to the customer. *istribution costs can represent a high portion of the overall cost

of the product so an efficient distribution system may be critical for marketing success. 28ength "'% pages4

1rief summary of current distribution network=value chain decisions

o Types of channels used direct ' e.g., direct via sales force, Internet, etc.

indirect ' e.g., retailers, wholesalers, agents combination

o 8evel of market coverage

intensive ' e.g., mass availability selective ' e.g., wide availability

e!clusive ' e.g., restricted availabilityo -utlets handling product

types

number=level of penetration

geographic locationo Perceived product positioning

in relation to competitors

o *istribution costs

Identify planned changes

o (ummarize changes

o ustify changes

*ue to results *ue to research

*ue to competition

-thers

*escribe planned changeso -bectives

e.g., account development, gain distributor support, account maintenance, accountpenetration

o Types of channels employed

o 8evel of market coverage

o -utlets handling product

o Product positioning

o *istribution costs

(. Pricing 9ssuesPricing decisions can be a complicated undertaking that re7uires knowledge of the market,competitors, economic conditions and, of course, customers. or this section it is not necessary to provide

e!tensive financial evaluation of the pricing decision since most of this will take place in Part 0 1udgeting and

Implementation, however, the use of tables and graphs may be helpful in showing pricing trends and pricingdecisions within various categories. 28ength "'$ pages4

1rief summary of current pricing decisions

o *escribe pricing decisions by

model=product segment

channel


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geography

othero )dustments and )llowances

*iscounting

Payment terms


o (ummarize changes

o ustify changes

*ue to results *ue to research

*ue to competition -ther


o -bectives

e.g., return on investment, market share, profit level, price leadership, match competition,etc.

o actors affecting price setting

+ost factors i!ed costs to be covered

Jariable costs +ustomer e!pectations +ompany e!pectations

e.g., margins, >-I

*emand +onsiderations

market elasticity

position on product life cycle

+ompetition

Economic conditions 8egal=regulatory considerations

o Pricing -ptions

list, preferred or suggest pricing adustments and allowances

sub'divided by

product=model customer

channel

other

+. -ther Areas2optional4 In this section include a discussion of other marketing decision areas. Two additionalareas A customer support service and marketing research A are provided though it is possible others e!ist.

28ength " page or less4

Customer Support Ser'ices

o 1rief summary of current customer support services decisions

types offered

e.g. call center, online, service desk, walk'up, on'site

customers being serviced e.g., current customers, potential customers, distributor network

service delivery method

e.g., internally managed, contracted, partnership arrangemento Identify planned changes


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(ummarize changes

ustify changes *ue to results

*ue to research


o *escribe planned changes

-bectives e.g., availability, response time, satisfaction level

Types offered

+ustomers being serviced

(ervice delivery method

(pending and timetables

Market esearch

o 1rief summary of current market research efforts

Proects

e.g., completed, in process, under consideration

>esearch responsibility e.g., internally managed, contracted, partnership arrangement


(ummarize changes

ustify changes *ue to results

*ue to research



-bectives e.g., customer analysis, market analysis, competitor analysis, e!ploratory

Proects (ervice responsibility (pending and timetables

Part (: ;udgeting Performance Analysis and 9mplementation

In many ways this part of the marketing plan is the area that will ultimately ;sell< the plan to those who have

the power to give final approval. This step consists of three key topics

Marketing 1udget ' presents a clear picture of the financial implications of the plan

Performance )nalysis ' presents the e!pected results of the plan including its financial impact

Implementation (chedule ' shows timelines and identify those responsible for performing tasks

1. he Marketing ;udget

This section should lay out spending re7uirements necessary for meeting the plan?s obectives. It is e!pected

that several tables and graphs will be presented along with narratives e!plaining important budget issues.28ength $'% pages4

-utline spending re7uirements for each tactical marketing decision

o 1reakdown each tactical category

e.g., types of advertising, types of services offered, marketing research e!pense, etc.


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o (how detailed spending timetable by

Month Kear

o (how spending by

Product 2if plan is for more than one4 (egment=@eographic area

*istribution #etwork=+hannel

2. Performance AnalysisThis section should contain financial implications of the plan in terms ofcontributions to the company?s bottom line. 6-9EJE>, as was stated in the beginning of the Marketing Plantutorial, the marketing plan is generally a component of a larger business plan. 9e do not cover a full financial

discussion such as a full balance sheet, income statement, detailed ratio analysis, etc., though these could be

included if necessary. )gain, numerous tables and graphs should be presented. 28ength $'% pages4

Marketing +ontribution

o (how revenue versus e!penses for marketing decisions

>evenue should follow sales forecasts 2see Part /4 (how e!penses by category 2e.g., advertising4 and sub'category 2e.g., types of

advertising4

o 1reakdown by Product

(egment=@eographic area

*istribution #etwork=+hannel

1reakeven )nalysis

o Primarily for plans that involve the sale of tangible products, the breakeven analysis indicates the

level of sales 2generally described in terms of number of units sold4 re7uired before the company

realizes positive marketing contribution.o >e7uires understanding of

i!ed costs A cost that occur no matter level of sales

Jariable costs A cost that may change as level of sales varieso Present as both graph and chart

(how breakeven point over level of sales volume

rom zero through best scenario sales level

(how breakeven over time

>atio )nalysis

o 8imit to important marketing ratios that are common to the industry

e.g., sales cycle, advertising'to'sales, conversions from trial to purchase, website traffic'to'search engine marketing, etc.

#. 9mplementation

Provide a discussion of how and by whom the plan will be carried out. 28ength "'$ pages4

*etailed schedule of tasks and those responsible

o 1reakdown by important tactical marketing decisions

1est presented in a @antt chart format.

o Identify those responsible for each important task

If unsure leave generic e.g., advertising agency, web hosting company, distributors, etc.

Part +: Additional Considerations


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The final maor section in the Marketing Plan prepares the reader for potential situations that may affect the

plan. In this way the reader is provided with a somewhat more balanced picture of what the company may faceas it attempts to implement the plan. 28ength $'% pages4

1. 9nternal )actors

*iscuss company factors that may affect the plan

o e.g., loss of funding sources, loss of key personnel, current plan is linked to success to other

products that may not reach their goals, production problems, etc.

2. ,0ternal )actors

*iscuss outside factors that may affect the plan

o e.g., supply chain problems, competitor reaction, technological developments, legal environment

societal changes, economic issues, governmental concerns, etc.

#. esearch *imitations

*iscuss problems that may e!ist with the research information on which assumptions are being made

o e.g., difficult to find solid data on a certain subect

Documents

Detailed Marketing Plan (for Idea)