Marketing Plan Business Management

Why do you need to write a marketing plan? Provides a basis to compare expected and actual performance

2-3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Nike Creates Value

What is a Marketing Plan? A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

Cisco Systems Taps into Partner Expertise to Create Value

Levels of a Marketing Plan Strategic –Target marketing decisions –Value proposition –Analysis of marketing opportunities Tactical –Product features –Promotion –Merchandising –Pricing –Sales channels –Service

Three V’s Approach to Marketing Define the value segment Define the value proposition Define the value network

Situational Analysis

Provides reader with analysis of the environment in which the organization must operate “The only constant is change” –Must evaluate factors that will influence your business

Market Summary Geographic segmentation –Region of country, County size, City size Demographic segmentation –Age, Gender, Marital Status, Education, Income, Life style, Occupation Consumer/Demand trends –What’s hot, what’s not –New product or new and improved product?

Product Life Cycle Product Sales Introduction Growth Maturity Decline Time

Market Summary Technological Trends –How does technology affect your services? –What new amenities will you provide? Economic Trends –Every industry is vulnerable to changes in economy –Customer discretionary income is used to purchase products

Market Summary Competition Analysis –Buy your competitors’ products –Frequent your competitors’ territory –Read industry publications –Don’t forget to focus on your own business

Who are your Competitors? First level –Specific brands which are direct competitors to your product or service, in your geographic locality Second level –Competitors who offer similar products in a different business category or who are more geographically remote Third level –Competitors who compete for the “same-occasion” dollars Toots –1 st Other sports bars –2 nd Other sit down restaurants –3 rd Fast food or convenience stores

Competition Analysis Colorado Bearcats 1st level competitors: Other professional sports teams –Denver Broncos –Denver Nuggets –Colorado Avalanche 2nd level competitors: Collegiate sports and geographically remote professional teams –Kansas City Chiefs –University of Colorado athletics –Air Force Academy athletics –Colorado Springs Sky Sox 3rd level competitors: Other businesses competing for money –Rocky Mountain Motorcycle Museum –Pro Rodeo Hall of Fame –World Figure Skating Hall of Fame

Factors to Consider in Analyzing the Competition Product Line (Breadth) PricingAdvertisingSupplier Advantage Product Line (Depth) Financial Resources Employee Morale Sales Force Uses of Technology Distribution Advantage Operational Efficiency Technology Competence Market Share StrengthsWeaknesses