The Marketing Plan Strategic Planning

The Marketing Plan 1.Mission Statement 2.Situation Analysis 3.Objectives 4.Target Market and Positioning 5.Marketing Strategy a)Product b)Price c)Place d)Promotion 6.Timetable for Implementation 7.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 Internal You control External You don’t control Identify firm’s Competitive Advantage

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

TweensTeensGen YGen XBaby Boomers Seniors Age Population 20 M25M60M40M75M39M Spending $50B $150B parents $58B$200B$50B on grandkids Information Attitude Access to Info Sophisticated past age Home Decor Connected Shopping is a social sport Shop in stores Clothes/shoes Accesories Emphasize balancing work and live Inquisitive Diverse Opinionated Multitaskers Brand engagement “latchkey kids” Independent Resilient Adaptable Cautions Skeptical/cynic 80% use social media Mass merchandisers Affluent Experienced Flexible Postpone retirement Youth obsessed Not loyal Quality Time to shop Complain Money Browse b4 buy Loyal Quality Value

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