© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

Marketing Plans © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Purpose of Marketing Plans Marketing plans are designed to answer three questions: Where are we now? Where do we want to go? How do we get there? 3

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Marketing Framework 4

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Marketing Plan Overview 5

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Situational Analysis An analysis of the current situation facing the company 6

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Marketing Plan Overview 7

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Marketing Plan Overview 8

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part P Considerations Make sure that your 4Ps are consistent with one another e.g., exclusive distribution with heavy promotion is inconsistent Make sure that your 4Ps are what your target desires 9

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Spending Time and Money Establish a time line for actions Establish cost estimates e.g., September: create donor materials Cost: $15,000 10

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Marketing Plans Better marketing plans Have more refined detail Have precise estimates Shed light on weaknesses of the plan Are more actionable Allow for better forecasting, understanding of costs, tighter ops delivery, etc. 11

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Managerial Recap When completing a marketing plan, remember the 5Cs, STP and the 4PS The marketing plan reminds the company of its goals and serves as a guide to achieve those goals Marketing strategy/planning is iterative 12

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Managerial Recap Marketing plans are works in progress As situations change, plans change More detailed plans are better Create a readable plan & market it 13

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. END 14

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Segmentation Example Segmentation questionsProposed answers  Current customers  Early 20s, some stay connected to friends, some click through and buy trips  Non-users  40s and older  Ideal customers  mid 20+ with good disposable income 15 Identify segmentation variables that are relevant to the product

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Targeting Example Targeting questionsProposed answers  Estimate size and profitability  Friendship connectors bring in no direct $ and only minimal from WOM; buyers are worth $625 a year (they take one trip every other year, approx. $1350)  Corporate fit  Maybe aim a little older, maybe we should stop trying so hard to be hip (we may be turning off older crowd)  Rank desirability of segments  25-35—better disposable income than younger, and more time than crowd 16 Find targets that Fit well with company Are profitable Are actionable

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Positioning Example Positioning questionsProposed answers  High quality and high price? or Low quality and low price?  High quality, prices are high but we say they're “good value”  Compare to competitors?  No one is exclusive  Distribution mass/exclusive? Promo heavy/light?  To succeed, need some scale, which suggests wide availability/presence and mass promo if cheap (e-referral program) 17 Positioning is executed via the 4Ps Write a positioning statement

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cs: Customer Example Customer questionsProposed answers  Demographics  to years  Psychographics  Care about higher education  Buying behavior  Give $20 or $50 once a year  Customer satisfaction?  Never measured, assumed ok if repeated  Do we have a loyalty program?  No, but give a calendar if receive $100+  Why don’t non-donors donate?  They think they have to give large amounts  Channel for donors?  Send check by mail  Are our buyers price sensitive?  Let donors know that giving only a little is ok, and give more frequently  Changes to expect?  Should grown as awareness grows 18 Begin with secondary research, then primary research

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cs: Company Example Company questionsProposed answers  What are we known for?  A central point to coordinate receipt and dispersal of scholarships, to enhance college attendance and graduation rates.  Who do we want to become?  A brand as well-known as Unicef or World Wildlife Fund so we would be the 1 st NPO a donor would think of when wishing to spend their largesse. 19

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cs: Context Example Context questionsProposed answers  Economy  Concerned with economy  Politics  Unknown; never tried a different appeal to Democrats and Republicans  Legal  N/a Technology  Move more giving online, perhaps online videos of students’ testimonials  Societal  Emphasize the many benefits of an educated populace 20

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cs: Collaborators Example Collaborator questionsProposed answers  Good relations with supply chain?  Fine so far, perhaps try to partner with some professional associations?  Good relations with distribution channel members?  Perhaps post ads on professional sites, Linked-In, etc., to broaden appeal 21

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cs: Competitors Example Competitor questionsProposed answers  Who are they?  Any donation behavior: medical and health, museums & the arts, etc.  Competitors’ strengths?  Some have very good brand names 22

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Discussion Questions Assume you are marketing a new designer clothing line, 1. List appropriate segmentation variables 2. Choose one target market 3. Write a positioning statement 23

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Discussion Questions For your new designer clothing line, what would be your 1. Product mix decisions? 2. Price decisions? 3. Promotion decisions? 4. Distribution decisions? What factors would you utilize to justify your decisions above? 24

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Product Example Product questionsProposed answers  Are we high-end or basic?  High-end, innovative  What are our primary features?  Convenient, trusted, good product  What are our brand associations?  Few due to minimal awareness as yet  Where are we in product life cycle?  Brand new 25

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Pricing Example Price questionsProposed answers  What are our customers’ price sensitivities?  Minimal, what is being digitized is valued, and the time-savings would be great  Offer occasional price discounts?  No reason, benefits outweigh high price  Beneficial to price differently from competitors?  No competitors yet, but keep price high to gain margin and spend on R&D 26

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Promotion Example Promotional questionsProposed answers  Our marketing communications (advertising) goals?  Search engines, get into Sharper Image  How to measure ad effectiveness?  Click-thrus  How to budget across IMC?  Aim for BusinessWeek, Forbes 27

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Place Example Place questionsProposed answers  Will we be extensive or selective?  Selective currently, one office  Use more pull or push?  Pull  Any conflicts to resolve?  Still forging relationships 28

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Appendices 29

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. Discussion Question What do you think goes into a marketing plan? 30