1. The Marketing Plan Chapter 2

2. Section 2.1: Marketing Planning  Good marketing requires good planning Research your company Study your business environment Analyze your competitors  Develop Assessment Lists Utilize the things that will contribute to your success Avoid the threats that could cause failure

3. Section 2.1: Marketing Planning  SWOT Analysis  SWOT Analysis: Occurs when a company looks at their strengths and weaknesses and analyzes the opportunities and threats that surround them. Helps handle weaknesses Prepares for threats  Companies develop strategies based on SWOT analysis Identifies target market Point out competitive advantages

4. Strengths & Weaknesses  Strengths & weaknesses are internal factors that affect a business  Internal Analysis centers on the 3 C’s Company Customers Competition  Must evaluate these components fairly Sometimes done by outside strategists

5. The First C: Company  Company Analysis deals with two areas: What the company does well (strengths) What the company doesn’t do well (weaknesses)  Staff Review(s): All levels of the organization  Financial Situation  Production Capabilties  Each Aspect of the Marketing Mix Product, Promotion, Price, Place

6. Staff Review Research  Company has a mission statement Do employees know it? Do employees follow it?  Does the company have too much or too small a staff?  What is the quality of staff? Are they trained properly? Are they evaluated?

7. Financial Status Research  Is the company profitable? What areas are doing well? Why are those areas doing well?  What are the company’s financial resources? Do they have the money & means to succeed  Sales History Sales increasing or decreasing

8. Production Capabilities  How does the company adjust to an increase or decrease in sales?  Research & Development Department New products being designed Are their ideas successful?  What percent of sales comes from veteran products?  Changes in technology

9. Marketing Mix Research  Product What’s new What’s been successful Patents  Price Effectiveness of pricing strategies

10. Marketing Mix Research  Promotion Company’s position within the marketplace What are the company’s promotional strategies? What is the company’s image among customers?  Place Do products easily reach customers? Who helps the company with distribution?

11. Company Analysis  Answers to research reveal strengths and weaknesses Talent of staff Quality of workmanship Customer service record

12. Customer Analysis  Why perform a customer analysis? Customers are a great source of information Buying habits dictate product offerings & pricing strategies  Important for a company to understand: Who their customers are What, when, where, and how much are customers buying? What needs are being met & which one’s aren’t Is customer base growing or shrinking?

13. Customer Analysis  How Do You Analyze Customers? Database technology that focuses on buying patterns Customer satisfaction surveys

14. Competitive Analysis  What is your company's market share?  What advantages does your company have? Better reputation Own a patent Special resources Distribution Capabilities  Are competitors taking customers away from you?

15. External Opportunities & Threats  Companies must also look outside to find improvement Competition: Know what your competitors are always doing Environmental Scan:  Political: Laws, Regulations, Foreign Policy, etc..  Economic: Robust Economy v. Recession  Socio-Cultural: Lifestyle, Attitudes, Opinions, & Demographics of customers  Technological: Taking advantage of the latest & greatest

16. Writing a Marketing Plan  Marketing Plan: a formal, written document that directs a company’s activities for a specific period of time. Details research efforts Provides a roadmap for product development  How product will be introduced  How the product will be advertised  How the product will be sold  Communicates goals, objectives, and strategies to management team

17. The Marketing Plan  Informs managers of their responsibilities  Details company’s budget  Forecasts a timeline for completion  Helps monitor a company’s performance  Marketing plans differ in comprehensiveness

18. Elements of a Marketing Plan  Differ from one company to the next  Basic elements found in all 1. Executive Summary 2. Situation Analysis 3. Marketing Goals/Objectives 4. Marketing Strategies 5. Implementation 6. A System for Evaluation & Control

19. Executive Summary  Executive Summary: a brief overview of the entire marketing plan. Addresses each topic in the plan Explains costs involved in implementing plan Provides information to outsiders such as investors

20. Situation Analysis  Situation Analysis: study of the internal and external factors that affect marketing strategies.  Basis of this analysis comes from: SWOT Analysis Environmental Scan

21. Goals and Objectives  Objectives: let everyone know what the marketing plan will accomplish. Single-Minded: only one topic per objective Specific: provides details that eliminate confusion Realistic: able to be obtained Measurable: able to be evaluated Have a timeframe: when will the goal be met  Objectives must reflect an organizations goals

22. Marketing Strategies  Marketing Strategies: identifies target markets and sets marketing mix choices that focus on those markets. Takes in account customer needs & wants Aligns itself with company objectives  Effective marketing strategies utilize company strengths Focus on key points of differences Take advantage of strengths

23. Implementation  Implementation: putting the marketing plan into action and managing it. Obtaining financial resources Establishing effective management Determining the staff necessary to put plan into action Creates a timeframe showing when each part takes effect

24. Implementation  Plan outlines several key components Schedule of activities Job assignments Sales forecasts Budgets Details of each activity Who is responsible for each activity  Plan requires excellent communication

25. Evaluation & Control  How will the plan be evaluated?  Reinforces the need for detailed objectives  Appoints someone responsible for evaluations

26. Performance Standards and Evaluation  Performance Standards: an expectation for performance that reflects the plans objectives.  They’re the measuring stick of the company

27. Control  Control deals with alternate options What happens if we fail What do we do if we don’t meet objectives  Reduces gap between planned performance and actual success  Appendix: The supplemental section Financial statements Sample Advertisements Other materials that support the plan

28. Conclusion  Marketing Process is ongoing Planning Implementing Controlling  A successful marketing plan will Accomplish objectives within the boundaries set

29. Homework  Define each term from Chapter 2 Add on to Chapter One Terms  Vocabulary quiz Tuesday