marketing plan ppt 927

Marketing Plan – 1

Marketing Planning

Professor Carl Mela

BA 460 Product Management

Fuqua School of Business

• Brand Management System

• On Building A Brand

• Managing Across Brands

Marketing Plan – 2

Agenda

• Marketing Planning

• PharmaSim

Marketing Plan – 3

The Purpose of Planning

• “Planning is everything, plans are nothing.”– General Eisenhower

• Planning is to a large extent the job of making things happen that would not otherwise occur.

Marketing Plan – 4

Obstacles to Planning

• Good Forecasting

• Time

• Lack of Process

• Lack of Management Commitment

Marketing Plan – 5

Responsibility for Planning

Industrial Products

Consumer Products

Service Firms

Marketing managers or directors 34% 17% 36%Vice President - mktg or similar 25 29 12Product/brand managers 15 23 0General managers, division heads 11 8 36Sales, advertising, mktg research 6 9 4Planning titles 9 13 8Committee or team 0 1 4

Source: Conference Board

Marketing Plan – 6

Responsibility for Approving Plans

Industrial Products

Consumer Products

Service Firms

President, chairman, CEO 38% 44% 48%General division manager 22 14 8Vice President-marketing 12 11 4Group head 12 11 0Committee 9 4 16Executive (or senior VP) 4 13 24Other 3 3 0

Source: Conference Board

Marketing Plan – 7

Planning Horizon

Industrial Consumer Service< 1 year 1% 6% 0%1 year 18% 23% 14%

1 year + reference to later years 44% 40% 58%1 year + longer term plan 18% 16% 0%> 1year 19% 15% 28%

Source: Conference Board

Marketing Plan – 8

Top Down v. Bottom Up

• Bottom Up– Closer to implementation, motivated by

control, better forecasts

• Top Down– More vision at the top, more

coordination

Marketing Plan – 9

Planning Process

• Set Deadlines / Initiate Process• Gather Data• Analyze Data / Situation Assessment• Make Plans & Forecasts• Refine Plan• Management Approval• Disseminate, Monitor & Control

Assess Situation

Consider Company Goals

Set Measurable Objectives

Develop Strategies, Action Plans, Responsibility Assignments, and Due Dates

Evaluate Programs Against Objectives

Go

UnattainableAttainable

Compare Programs to Resources

Draft Marketing Plan

Submit Plan for Approval

InfeasibleFeasible

Not ApprovedApproved

Source: Conference Board

Marketing Plan – 11

The Marketing Plan

• Where are we now?

• Where do we want to be?

• How do we get there?

Marketing Plan – 12

Marketing Plan

• Executive Summary

• Situation Analysis

• Marketing Objectives

• Strategy and Tactics

• Monitors and Controls

• Financial Documents

Marketing Plan – 13

Situation Analysis

• Review of Status and Future Outlook– Not just data, but implications– Brevity, prioritization of information– Diagnostic, not descriptive– Contains:

• Category Analysis and Forecast Trends

• Sales Analysis

• 3 C Analysis

• Planning Assumptions

• Summary (Problems and Opportunities)

Marketing Plan – 14

Objectives

• “If you don’t know where you want to go, any road will take you there”

• Precise, with dates and numbers

• Sales, profits, share, etc.

• Measurable and achievable

• Subsequent strategy and tactics must demonstrate compliance with objectives

Marketing Plan – 15

Strategy and Tactics

• Strategy is means to accomplish goal, e.g., awareness goal will be met by advertising

• Tactics pertains to the implementation, e.g., media schedule, agency, message, etc.– how to, by whom, by when, with what

resources

Marketing Plan – 16

Monitors and Controls

• 74% of consumer product firms have explicit sales promotion tactics– Only 36% monitor

• 69% of industrial firms have explicit sales tactics– Only 46 % monitor

• Only 1 in 4 firms has a contingency plan– Both good and bad events (e.g., competitor merges or

leaves)– What ifs and appropriate trigger points

Source: Conference Board

Marketing Plan – 17

PharmaSim

• Goal: Provide context for plan– 20% plan, 5% performance– Assignment detailed on website

• Goal: More experience in decision making

• More brand oriented than Markstrat– More promotion and advertising decisions, less

production– Play against pc, not classmates

Marketing Plan – 18

PharmaSim

• Overview of Market– 250MM Persons (1% Growth /Year)– 2% GNP Growth– Moderate Inflation– 80% of Population Suffers from Colds– OTC Market is $2BB Growth 4% / Yr– Manufacturer Sales = $1.5BB– Five companies– Capacity adjusts automatically to demand

Marketing Plan – 19

PharmaSim Market

• Competition– Four competitors (B, C, D, and E)

• Four Trade (not Consumer) Categories– Cold, nasal, cough, and allergy

• Brands Have Five Attributes– Symptoms relieved, side effects, form (capsule,

liquid, spray), duration of relief, and price

Marketing Plan – 20

PharmaSim Market

879.7366.4

126.1

119.1

Cold

Cough

Allergy

Nasal

Marketing Plan – 21

PharmaSim Consumers

• Buying behavior varies with – Illness/symptom (cold, cough, allergy), age, and usage

occasion (day or night, work or home)

– Thus, can segment by illness, age, or usage

– Note: mfg. sales study (pre-defined category) consumer survey (usage)

• Buying process– Awareness Purchase Intention In Store Attractiveness

Purchase Usage Satisfaction Repurchase

Marketing Plan – 22

PharmaSim Channel

• Through Wholesale or Direct to:

22%

28%

37%

4%9%

Independent Drugstores

Chain Drugstores

Grocery Stores

Convenience Stores

Mass Merchandisers

Marketing Plan – 23

PharmaSim Decisions

• Pricing– MSRP– Trade

• <250 Units, <2500 Units, >2500 Units• Wholesale

• Salesforce Size– Direct (By Channel)– Indirect (Wholesale, Merchandisers - Retail Sales

Support, Detailers for M.D.’s)

Marketing Plan – 24

PharmaSim Decisions

• Advertising– Targeting

• Segments (By Age and Usage)

• Agency

• Budget

– Message• Message (primary demand, benefits, competitive

comparison, or reminder message)

• Benefits (e.g., aches, congestion, etc.)

Marketing Plan – 25

PharmaSim Decisions

• Trade Promotions– Allowances (% of MSRP by channel)– Co-op Ads (total $ and which channels)

• Consumer and Trade– POP ($ and which channels)– Trial Size ($)– Coupons ($ and face value)

Marketing Plan – 26

PharmaSim Decisions

• Product– Reformulation - before decision 2– Line extension - before decision 4– New product - before decision 5– Your own product - before decision 8

Marketing Plan – 27

PharmaSim Tips

• Please review tips on website (link from syllabus)

• Read pages 5-66 carefully. E.g., buried on page 66 is the statement that FC continue when product is dropped. Important, but easily missed. Other examples abound.

Marketing Plan – 28

Other PharmaSim Tips

• Think analytically• Sales = Share * Market Size

– Share = f (marketing $ and quality, value/price, synergies among marketing activities, fit with segments selected, positioning relative to competition)

– Size = f(population, needs, available product benefits, industry marketing $ and quality, product life cycle)

Marketing Plan – 29

More Tips

• Marketing $ can interact– Deals more effective with ads

• Stockpiling is possible• Understand the role of channel and how to motivate• Think about the ramifications of your strategies

– A leading brand (Allround) should never run comparison ads against a niche brand (Coughcure)

– Line extensions do not need the same marketing $ as new brands• Allocate marketing $ to area with highest returns• Key opportunity is chance to introduce new product into a market with a

real need (e.g., Allright Allergy).– Shift resources to new product

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One Last Tip

• Cost dynamics, margin management, value based pricing, and capacity utilization are essential to profitability.

Marketing Plan – 31

Marketing Plan Assignment

• The assignment is detailed on the website and linked to the syllabus.

• First move of Pharmasim should take 2 hours. Then, about 1 hour + for the remaining 7 moves for a total of 10 hours. Harvard runs 10 moves in 24 hours period.

Marketing Plan – 32

Marketing Plan Assignment

• Three parts (4 pages & Exhibits)– Situation analysis

– Marketing program and financials

– Executive summary, contingencies, and post-mortem

• 3 reports = 20% , performance = 5%• Please turn in copy of diskette and administrator report with

the first two parts• Note: marketing planning (although not handed in) should

occur each period of PharmaSim!

Marketing Plan – 33

Marketing Plan Assignment

• Marketing plans represents 20-30% of what you will do.

• Daily product management is the other 70-80%.

• This Assignment aligns with both.

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Summary

• Marketing Plan– Executive Summary– Situation Analysis– Marketing Objectives– Strategy and Tactics– Monitors and Controls– Financial Documents

• PharmaSim is Vehicle for Plan