Understanding the Marketing Mix and Marketing Plan

Marketing Mix Every plan will be different because every business is different. Decisions about the Marketing Mix – 4 P’s – is the foundation of a marketing plan. Product Price Place Promotion Answers to these questions will be a guide to developing the actual Marketing Plan and Action Plans.

Product Decisions Quantity? Sizes? Packaging? Warranty? Design and Image? Logo/Slogan?

Price Decisions Cost of goods to produce? Markup? Profit Margin? Break-Even Point? List price Vs. Selling Price? Comparison with competitors?

Place Decisions How/Where products will be sold? Distribution & Logistics? Warehousing? Inventory? Order Processing? Delivery of Product?

Promotion Decisions Advertising? Sales Promotions? Reward Programs? Special Events? Public Relations? Customer Service/Return Policies?

What is a Marketing Plan? Written document that defines the target market and describes the promotion and marketing efforts to achieve one or more marketing objectives for a specific time period. Written each year but sometimes modified as the business’s progress and situations change. Describes a business’ marketing objectives and the strategies and tactics to achieve them.

Parts of a Marketing Plan Situation Analysis Marketing Objectives Marketing Strategies Marketing Tactics Action Plan All marketing plans should include this basic information

Situation Analysis Snapshot of the environment in which the business has been operating Introductory statement Target Market Competition

Target Market Define by using demographic, geographic, economic, behavioral, and psychographic information. Estimate the total size of the target market. Include information gained that describe market trends. Describe factors that may affect purchasing – season, price, availability, emotions, services, etc.

Competition List both direct and indirect competitors Outline the product line and what they offer Describe your business’ advantage Explain why your product is different or better – more variety? Better pricing? Better sizing?

Marketing Objectives The goals a business wants to achieve during a given time Most have both corporate and marketing goals May be short term – achieved in less than a year May be long term – achieved in a year or more All marketing objectives should be written as SMART goals

SMART Goals S = Specific M = Measurable A = Attainable R = Realistic T = Timely

Marketing Strategies Decisions made about product, price, place, and promotion Outline of the who, what, when, where and how of the marketing process

Marketing Tactics Specific activities to carry out the marketing strategies. Every marketing strategy will have a set of tactics designed to accomplish it Usually the longest section because it lists very specific activities

Action Plan Time Line – lists when each activity starts and where it happens, the end date and who is responsible – also keeps business on track and keeps plan moving forward Budget – costs to implement the marketing and promotional activities Metrics – the way we measure the effectiveness of a project – marketing is very expensive so business’ want to make sure they have a return on their investment

Format the Marketing Plan At some point, the marketing plan may be presented to investors and employees Make sure it is well written and paragraphs fully explain the marketing plans Grammatically correct, words appropriate and punctuation accurate Exciting, enthusiastic and attractive Unique – be creative