lecture 4 developing marketing plans by : dr shahinaz abdellatif

Lecture 4

Developing Marketing Plans

By : Dr Shahinaz Abdellatif

What is a Marketing Plan?

• A Marketing Plan is the central instrument for directing and coordinating the marketing effort.

•A Marketing Plan is a formulation of all programmed marketing activities devised to reach certain organizational or individual objectives .

What is a Marketing Plan?

Consequently, a marketing plan is a tool that the marketing department uses to put its program in a system form and give it a chronological order.

The other function of the Marketing plan is to communicate to other departments and other non marketing executives enough information to secure their support.

Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

What is a Marketing Plan?

A marketing plan operates both at a strategic and tactical

level.

Levels of a Marketing Plan

• Strategic• Target marketing

decisions• Value proposition• Analysis of

marketing opportunities

• Tactical• Product features• Promotion• Merchandising• Pricing• Sales channels• Service

Marketing Plans

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Marketing Plans

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Marketing Plans

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Marketing Plans

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Marketing Plans

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Marketing Plans

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Marketing Plans

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Marketing Plan Outline

1. The Executive Summary

2. The Situation Analysis

3. The Objectives

4. The Marketing Strategy

5. The Action Program

6. The Financial Projections

7. The Implementation Controls

The Executive Summary

Garbage

After writing the plan, summarize it in 1 to 2 pages. Use a narrative style to give a briefing of the contents.

The Executive Summary

The Situation Analysis

The Six Forces

Economic

Legal

Competitive Forces

Political

Socio-Cultural

Technological

The Situation Analysis

The Six Forces Economic

LegalCompetitive

Forces

Political

Socio-Cultural

Technological

The Situation Analysis

The Six Forces

EconomicLegal

Competitive Forces

Political

Socio-Cultural

Technological

The Situation Analysis

Business Environment

The Situation Analysis

Supply & Demand

“Start the marketing triangle.”

The Situation AnalysisThe Situation Analysis

Product Positioning

Market Segmentation

Targeting

The Situation AnalysisThe Situation Analysis

Levels of market segmentation

Strategic Segmentation

ManagerialSegmentation

OperationalSegmentation

Vision Strategic intentProduct benefits

Resource allocationAlignmentplanning

Marketing programs

Segmentation in the market driven strategy process

Strategic Segments

Value opportunities

New market space

Matching value opportunities & capabilities

Market targeting

Strategic positioning

Strategic Segmentation in the market driven strategy process

Defining the market to be segmented

Identifying market segments

Forming market segments

Finer segmentation

strategies

Selecting segmentation

strategies

Market Segmentation

Divide potential consumers to market segments according to the following variables:

GeographicGeographic

DemographicDemographic

PsychographicsPsychographics

BehavioralBehavioral

The Situation AnalysisThe Situation Analysis

Targeting

Choose one of the groups specified in the segmentation and concentrate on it to satisfy its needs with the benefits of your product.

This group becomes your target marketThis group becomes your target market

The Situation AnalysisThe Situation Analysis

Positioning

Here we position our product vs. our competitors in relation to the needs & wants of our target

market members considering their preferences and priorities. We should form the desired image of the product and plan to place it in the minds of

our prospects.

The Situation AnalysisThe Situation Analysis

Perceptual Maps

1. Select product market2. Decide which brands to compete3. Collect buyers perceptions about

attributes for ideal brand.4. Analyze data to form attribute

dimensions5. Prepare a map of attributes on which are

positioned consumers perceptions of competing brands.

6. Plot consumers with similar ideal preferences (potential segments).

The positioning table

FeaturesFeaturesFeature1Feature1 Feature2Feature2 Feature3Feature3 Feature4Feature4 TotalTotal PositionPosition

Product1Product1

Product2Product2

Product3Product3

ProductsProducts

The Situation AnalysisThe Situation Analysis

SWOT

The Situation Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Analysis

Strengths and Weaknesses are generally internal, present and would appear in the positioning table shown above.

Opportunities and Threats are often external, futuristic and would appear at the part talking about external environment impact.

The Situation AnalysisThe Situation Analysis

Market Opportunity Analysis (MOA)

• Can the benefits involved in the opportunity be articulated convincingly to a defined target market?

• Can the target market be located and reached with cost-effective media and trade channels?

• Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Market Opportunity Analysis (MOA) (cont.)

• Can the company deliver the benefits better than any actual or potential competitors?

• Will the financial rate of return meet or exceed the company’s required threshold for investment?

Positioning Statement

A one paragraph statement describing the competitive advantage of the product subject of this

marketing plan and showing what it can offer the consumer and which needs does it satisfy.

The Situation AnalysisThe Situation Analysis

Choosing a Specific Positioning

•Best quality•Best performance•Most reliable•Most durable•Safest•Fastest•Best value for the money•Least expensive•Most prestigious•Best designed or styled•Easiest to use•Most convenient

Choosing a Value Positioning

• More for More.Example : Mont Blanc, Gucci apparel, Haagen-Dazs Example : Mont Blanc, Gucci apparel, Haagen-Dazs

• More for the Same.Example: Lexus automobileExample: Lexus automobile

• The Same for Less.Example: Arrow shirts, Goodyear tires, Panasonic TVExample: Arrow shirts, Goodyear tires, Panasonic TV

• Less for Much Less.Example: VCRs offering fewer featuresExample: VCRs offering fewer features

• More for LessExample: Toys ‘R’ Us, Wal-Mart store Example: Toys ‘R’ Us, Wal-Mart store

Customer Analysis

• Analyze the segments and discover descriptive characteristics that are highly correlated to the variables used to form the segments.

• Determine how well the buyers in the segments are satisfied; in terms of the perceived performance of product and supporting services.

Competitor AnalysisAnalysis of value added chain (Porter 5 forces)

• Rivalry among existing firms.• Threat of new entrants• Threat of substitute products.• Bargaining power of suppliers.• Bargaining power of buyers

Competitor Analysis

• Competitor analysis is conducted for the firms directly competing with each other (ex: Nike and Addidas) and other companies that management may consider important in strategy analysis (ex: potential market entrants).

Competitor Analysis

Describing and evaluating the competitor:• Business scope and objectives.• Management experience• Market position• Market target market & customer base• Positioning strategy for each market• Distinctive capabilities• Financial performance

Short Term

The Objectives

Medium Term

Long Term

This marketing plan has a logical sequence and in the situation analysis we clarified where we were. In the

objectives we state where we want to be.

The ObjectivesThe Objectives

Objectives should be quantitative and as such they should be:

The ObjectivesThe Objectives

Some of the objectives can be qualitative and Some of the objectives can be qualitative and as such less SMARTas such less SMART

SS specificspecificMM measurablemeasurableAA attainableattainableRR relevantrelevantTT time boundtime bound

We can use any variety of strategies related to the four elements of the marketing mix or whichever is

relevant among them.

The StrategiesThe Strategies

Here we explain how these Here we explain how these objectives will be achieved. objectives will be achieved.

Product Development Branding Strategies

Packaging

Labeling

Diversification

Etc…

Product

Product Life cycle

The Marketing Program The Marketing Program StrategiesStrategies

New Product Strategies

Existing Products

Strategies

Price

Skimming Trade Discounts

Trial

Penetration Geographical Pricing

Psychological Pricing

Package and Volume Pricing

Cash and Credit Policies

Price StrategiesPrice Strategies

Distribution

Strategies

Intensive Selective Exclusive

The Distribution StrategiesThe Distribution Strategies

Marketing Communicatio

ns

Sales Promotion

Personal Selling

Advertising (e.g. Pull/Push)

Public Relations

Publicity

The Marketing The Marketing Communications StrategiesCommunications Strategies

Starting Date

The Action ProgramThe Action Program

Action Action AssignmentAssignment

Person in Person in ChargeCharge

Completion Completion DateDate RemarksRemarks

This is where we translate the strategies into action steps expressing each and every This is where we translate the strategies into action steps expressing each and every strategy in a chronological order.strategy in a chronological order.

These are two items

Item 1- The Marketing Budget: showing the cost of all marketing action steps quarterly.

Item 2- An Income Statement: showing projected income by the products, all budgeted expenses including marketing budget and the resulting profit or loss.

The Financial StatementsThe Financial Statements

Any good plan must be monitored so that evaluation of its effectiveness happens regularly. If evaluation shows that the plan is not achieving its objectives then the plan should be altered.

To do so you have to form your own team and system to follow up, monitor and when necessary change the course of the plan to secure achievement of objectives

The Implementation ControlsThe Implementation Controls

Monitoring all the circumstances that led to the decisions included in the marketing plan and trying to detect any changes in the business environment affecting the project/product, is

vital.

The Implementation ControlsThe Implementation Controls

Actual Expenditure Actual Expenditure

vs. vs.

BudgetBudget

Actual Actual Implementation Implementation

vs.vs.

Action ProgramAction Program

Actual Objective Achievement Actual Objective Achievement

vs. vs.

Planned Objectives AchievementPlanned Objectives Achievement

The Implementation ControlsThe Implementation Controls

This plan should be for one year, and is generally prepared 3 months before the beginning of the year.

However, this plan is a live document and must reflect any change that happens over the

assumptions that the situation analysis is based on. Once any element of the situation analysis is

changed, it will cascade down the rest of the plan with a logical sequence, almost like a domino effect.

Always remember a good workable plan is a flexible, well monitored plan.Always remember a good workable plan is a flexible, well monitored plan.