1. The Marketing Plan Strategic Planning

2. The Marketing Plan 1.Mission Statement 2.Situation Analysis 3.Objectives 4.Target Market and Positioning 5.Marketing Strategy a)Product b)Price c)Place d)Promotion 6.Timetable for Implementation 7.Evaluate Performance

3. Step 1: Mission Statement Answers the following: – What type of business are we? – What business are we in? – What do we need to do to accomplish our goals Not too broad, not too narrow Focuses on markets rather than on offering

4. Step 1: Mission Statement Examples DunkinDonuts: to lead and build great brands Starbucks: aims to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time

5. Step 2: Situation Analysis 2a. SWOT Analysis + Strengths - Weaknesses + Opportunities - Threats Internal You control External You don’t control Identify firm’s Competitive Advantage

6. Step 2a: SWOT Analysis Evaluate company and product Consider: costs, skills, financial resources, brand image, technology available, HR, and the External Environment Industry analysis  CDSTEP – Culture, competition, demographics, social, technology, economic and political/legal

7. Step 2b: Industry Analysis Culture Competition Demographics Technology Economic Political/Legal

8. Culture Shared meanings, beliefs, values, customs Country Regional Subcultures or Lifestyles ie. snowboarders, skateboarders, grunge, so called urban tribes, etc.

9. Competition Who Sales – competition and the category Market share Positioning in market vs. you Direct and indirect competion

10. Demographics Generational Cohorts – Seniors – Baby Boomers – Gen Y – Teens – Tweens

11. TweensTeensGen YGen XBaby Boomers Seniors Age 8-1213-1718-3334-4748-6667+ Population 20 M25M60M40M75M39M Spending $50B $150B parents $58B$200B$50B on grandkids Information Attitude Access to Info Sophisticated past age Home Decor Connected Shopping is a social sport Shop in stores Clothes/shoes Accesories Emphasize balancing work and live Inquisitive Diverse Opinionated Multitaskers Brand engagement “latchkey kids” Independent Resilient Adaptable Cautions Skeptical/cynic 80% use social media Mass merchandisers Affluent Experienced Flexible Postpone retirement Youth obsessed Not loyal Quality Time to shop Complain Money Browse b4 buy Loyal Quality Value

12. Ethnicity/Race Hispanics – $1.5T purchasing power – Will be 33% of population – 60% Mexican – Non homogeneous group African-Americans – $1.2T purchasing power – Youngest group – Radio friendly – 30% of HH led by single women Asian-Americans – $775B purchasing power – Highest family income & education – Adopt latest gadgets

13. Social Trends Prince Sensitivity Health and Wellness Green consumers Time poor society Privacy concerns Component Lifestyles Changing gender roles

14. Technology “Weisure” Time – Smartphones/tablets are leading people to work during playtime Technology advancements – Constant Internet access – “ubiquitous” computing and shopping – Mobile coupons and boarding passes – Barcode scanning – RFID for tracking

15. Economic Inflation Recession Income Purchasing Power

16. Political/Legal Federal Regulation State Laws Government Regulatory Agencies – FDA – FTC – CSPC

17. Step 3: Objectives What is to be accomplished – Realistic – Measurable – Time Specific – Compared to a benchmark

18. Target Market and Positioning Need to choose which customers you will serve Break the market into segments – Groups with different wants, needs, characteristics Can target more than one segment

19. Segmentation Illustrated

20. Step 4: Target Market and Positioning Positioning – How do you want customers to see you? Luxury Cheap Quality Convenient, etc. – Turn the product attributes into benefits matched to the Target Market

21. Step 5: Marketing Mix Product Price Place Promotion

22. Step 6: Timetable You have objectives You have a plan Need a schedule of the – What – When – Whom

23. Step 7: Evaluate Are you on target to accomplish your objectives? – WHAT will you measure WHEN with what METRIC? – Next Steps – Evaluate your position periodically Growth Strategies – Market Penetration – Product Development – Market Development – Diversification