1. MGT 330F – Introduction to Marketing October 23, 2003 Marketing Plans

2. Lecture Overview Marketing in the News Video segments and discussion Marketing Plans

3. Marketing in the News

4. Video Segments and Discussion

5. Marketing Plans Each product and service requires a marketing plan for measuring performance: product, marketing, sales, etc. The development of a marketing plan is an important process and the final output (plan) is key to success It contains discussion of analysis of a number of marketing concepts and steps

6. Contents of the Marketing Plan I.Executive Summary and Table of Contents II.Current Marketing Situation III.Opportunity and Issue Analysis IV.Objectives V.Marketing Strategy VI.Action Programs VII.Projected Profit-and-Loss Statement VIII.Controls

7. Executive Summary A brief summary of the plan’s main goals and recommendations Allows senior management to grasp the plan’s major thrust

8. Current Marketing Situation Market Situation –Relevant background data on the microenvironment –Size and growth of the market –Customer needs and buying-behaviour trends –Information taken from marketing manager’s product ‘fact book’

9. Current Marketing Situation Product Situation –Discuss sales, prices, margins, profits

10. Current Marketing Situation Competitive Situation –Identify major competitors Perceived Added-Value of Product Price X Z Y W A Perceived Added-Value of Competitors

11. Current Marketing Situation Distribution Strategy –Data on the size and importance of each distribution channel Macroenvironment –Describe broad trends (e.g., demographics, economy, technology, etc.)

12. Opportunity and Issue Analysis SWOT Analysis –Strengths – focus on the product –Weaknesses – focus on the product –Opportunities – focus on the business –Threats – focus on the business Issues facing the product line –Use the S/W to identify the main issues that the plan must address

13. Objectives Identify the Financial and Marketing Objectives –Financial: Specified Rates of Return, Cash Flow or Net Profits –Marketing: Translate financial objectives into marketing objectives

14. Marketing Strategy The “game plan” used to accomplish the plan’s objectives In developing the plan, the marketing manager must consult with others in the company: –Production and Manufacturing –Sales –Finance

15. Marketing Strategy –Target Market –Positioning –Product line –Price –Distribution Outlets –Sales Force –Service –Advertising –Sales Promotion –Research and Development –Marketing Research Example of a marketing ‘game plan’:

16. Action Programs Identify the broad marketing programs to achieve objectives Answer the following questions: –Who, What, When, How…Why? Create a timeline for broad marketing activities

17. Action Programs

18. Profit and Loss Statement Action plans lead to a budget Revenues…projected sales Expenses…estimated costs…granularity The difference is projected profit

19. Simple Profit-and-Loss Statement

20. Step 1: Identify ‘Functional’ Expenses

21. Step 2: Assigning Functional Expenses to Marketing Activities

22. Step 3: Preparing P&L for each Channel

23. Controls and Contingency An outline of how the plan will be monitored Goals are spelled out on a monthly or quarterly basis Managers and senior management review the performance Contingency plans are specific plans to deal with anticipated ‘adverse’ developments in the market (e.g., price war)