Marketing Plans

Should be though of as a product plan  Cover all aspects of bringing a product to market Typically used for product oriented business New plan should be devised for each service a business offers each year Look at each product line seperatly

Step 1 Evaluate the entire potential market for each product category  Size, number of people currently using the product, prospects for potential use  Is the market growing, shrinking or flattening Growing markets are easiest to enter in  For small firms it might be tough due to businesses that are already in the market

Step 2 Market Segmentation All markets have distinctive segments  Segmented by price and quality  Segmentation in the car industry Sedan, wagon etc…

Step 3 Consumer analysis Evaluate the consumers to try and figure out their patterns  What type of product features most appeal to these consumers?  How are choices made between competing products?  How much disposable income does this segment have?  Which promotional vehicle are most often viewed by this segment?

Step 4 Product features and benefits Make a clear distinction between the features of competing products and benefits to consumers of those features  Evaluation of this will help decide what features to include on your product

Step 5 Sales Positioning of the product affects what type of sales staff you will have Highly trained sales staff for premium products Lesser trained staff for basic products

Step 6 Advertising and Promotions Product positioning statement and analysis of its strongest competitive feature and consumer benefits Should be based on your consumer analysis Emphasize your products benefits over the competition

Step 7 Competitive Reaction Be wary of the reaction of your competitors (price wars) To avoid try targeting a small niche that is not targeted by competition Stay away from mature, stable markets with clearly defined competitors Think like your competitors would

Step 8 The future Need a focus on the longer term  Will it help your realize the long term strategic goals of your firm?  Will you be able to build up long term strengths in critical areas of your business operations?  What effect will this particular product marketing plan have on other products and services offered by your company?  Will there be logical related or follow-on products that can be developed and/or offered if this product release is successful?

Step 9 Pro Forma Isolate every major expense relevant to a product including on allocation of common expense items Project sales, should reflect market size, sales of competing products etc… At this point you can change the price or expenses if there is not a high enough profit margin

Advise Consider abbreviated plans Involve others Go/No Go What ifs