MGT 330F – Introduction to Marketing October 23, 2003 Marketing Plans

Lecture Overview Marketing in the News Video segments and discussion Marketing Plans

Marketing in the News

Video Segments and Discussion

Marketing Plans Each product and service requires a marketing plan for measuring performance: product, marketing, sales, etc. The development of a marketing plan is an important process and the final output (plan) is key to success It contains discussion of analysis of a number of marketing concepts and steps

Contents of the Marketing Plan I.Executive Summary and Table of Contents II.Current Marketing Situation III.Opportunity and Issue Analysis IV.Objectives V.Marketing Strategy VI.Action Programs VII.Projected Profit-and-Loss Statement VIII.Controls

Executive Summary A brief summary of the plan’s main goals and recommendations Allows senior management to grasp the plan’s major thrust

Current Marketing Situation Market Situation –Relevant background data on the microenvironment –Size and growth of the market –Customer needs and buying-behaviour trends –Information taken from marketing manager’s product ‘fact book’

Current Marketing Situation Product Situation –Discuss sales, prices, margins, profits

Current Marketing Situation Competitive Situation –Identify major competitors Perceived Added-Value of Product Price X Z Y W A Perceived Added-Value of Competitors

Current Marketing Situation Distribution Strategy –Data on the size and importance of each distribution channel Macroenvironment –Describe broad trends (e.g., demographics, economy, technology, etc.)

Opportunity and Issue Analysis SWOT Analysis –Strengths – focus on the product –Weaknesses – focus on the product –Opportunities – focus on the business –Threats – focus on the business Issues facing the product line –Use the S/W to identify the main issues that the plan must address

Objectives Identify the Financial and Marketing Objectives –Financial: Specified Rates of Return, Cash Flow or Net Profits –Marketing: Translate financial objectives into marketing objectives

Marketing Strategy The “game plan” used to accomplish the plan’s objectives In developing the plan, the marketing manager must consult with others in the company: –Production and Manufacturing –Sales –Finance

Marketing Strategy –Target Market –Positioning –Product line –Price –Distribution Outlets –Sales Force –Service –Advertising –Sales Promotion –Research and Development –Marketing Research Example of a marketing ‘game plan’:

Action Programs Identify the broad marketing programs to achieve objectives Answer the following questions: –Who, What, When, How…Why? Create a timeline for broad marketing activities

Action Programs

Profit and Loss Statement Action plans lead to a budget Revenues…projected sales Expenses…estimated costs…granularity The difference is projected profit

Simple Profit-and-Loss Statement

Step 1: Identify ‘Functional’ Expenses

Step 2: Assigning Functional Expenses to Marketing Activities

Step 3: Preparing P&L for each Channel

Controls and Contingency An outline of how the plan will be monitored Goals are spelled out on a monthly or quarterly basis Managers and senior management review the performance Contingency plans are specific plans to deal with anticipated ‘adverse’ developments in the market (e.g., price war)