The Marketing Plan

Strategic Planning

The Marketing Plan1. Mission Statement2. Situation Analysis3. Objectives4. Target Market and Positioning5. Marketing Strategy

a) Productb) Pricec) Placed) Promotion

6. Timetable for Implementation7. Evaluate Performance

Step 1: Mission Statement

• Answers the following:– What type of business are we?– What business are we in?– What do we need to do to accomplish our goals

• Not too broad, not too narrow• Focuses on markets rather than on offering

Step 1: Mission Statement Examples

• DunkinDonuts: to lead and build great brands• Starbucks: aims to inspire and nurture the

human spirit – one person, one cup and one neighborhood at a time

Step 2: Situation Analysis

2a. SWOT Analysis+ Strengths- Weaknesses

+ Opportunities- Threats

InternalYou control

ExternalYou don’t control

Identify firm’sCompetitiveAdvantage

Step 2a: SWOT Analysis

• Evaluate company and product• Consider: costs, skills, financial resources,

brand image, technology available, HR, and the External Environment

• Industry analysis CDSTEP– Culture, competition, demographics, social,

technology, economic and political/legal

Step 2b: Industry Analysis

• Culture• Competition• Demographics• Technology• Economic• Political/Legal

Culture

• Shared meanings, beliefs, values, customs• Country• Regional• Subcultures or Lifestyles

• ie. snowboarders, skateboarders, grunge, so called urban tribes, etc.

Competition

• Who• Sales – competition and the category• Market share• Positioning in market vs. you• Direct and indirect competion

Demographics

• Generational Cohorts– Seniors– Baby Boomers– Gen Y– Teens– Tweens

Tweens Teens Gen Y Gen X BabyBoomers

Seniors

Age 8-12 13-17 18-33 34-47 48-66 67+

Population 20 M 25M 60M 40M 75M 39M

Spending $50B$150B parents

$58B $200B $50B on grandkids

Information AttitudeAccess to InfoSophisticated past ageHome Decor

ConnectedShopping is a social sportShop in storesClothes/shoesAccesories

Emphasize balancing work and liveInquisitiveDiverseOpinionatedMultitaskersBrand engagement

“latchkey kids”IndependentResilientAdaptableCautionsSkeptical/cynic80% use social mediaMass merchandisers

AffluentExperiencedFlexiblePostpone retirementYouth obsessedNot loyalQuality

Time to shopComplainMoneyBrowse b4 buyLoyalQualityValue

Ethnicity/Race• Hispanics

– $1.5T purchasing power– Will be 33% of population– 60% Mexican– Non homogeneous group

• African-Americans– $1.2T purchasing power– Youngest group– Radio friendly– 30% of HH led by single women

• Asian-Americans– $775B purchasing power– Highest family income & education– Adopt latest gadgets

Social Trends

• Prince Sensitivity• Health and Wellness• Green consumers• Time poor society• Privacy concerns• Component Lifestyles• Changing gender roles

Technology

• “Weisure” Time– Smartphones/tablets are leading people to work

during playtime• Technology advancements– Constant Internet access– “ubiquitous” computing and shopping– Mobile coupons and boarding passes– Barcode scanning– RFID for tracking

Economic

• Inflation• Recession• Income• Purchasing Power

Political/Legal

• Federal Regulation• State Laws• Government Regulatory Agencies– FDA– FTC– CSPC

Step 3: Objectives

• What is to be accomplished– Realistic– Measurable– Time Specific– Compared to a benchmark

Target Market and Positioning

• Need to choose which customers you will serve

• Break the market into segments– Groups with different wants, needs, characteristics

• Can target more than one segment

Segmentation Illustrated

Step 4: Target Market and Positioning

• Positioning– How do you want customers to see you?• Luxury• Cheap• Quality• Convenient, etc.

– Turn the product attributes into benefits matched to the Target Market

Step 5: Marketing Mix

• Product• Price• Place• Promotion

Step 6: Timetable

• You have objectives• You have a plan• Need a schedule of the – What– When– Whom

Step 7: Evaluate

• Are you on target to accomplish your objectives?– WHAT will you measure WHEN with what METRIC?– Next Steps– Evaluate your position periodically• Growth Strategies

– Market Penetration– Product Development– Market Development– Diversification