the plan the marketing plan. michael s. dell 1984 - dropped out of school at 19 and started dell...

The The Marketing Plan Plan

Michael S. Dell 1984 - dropped out of school at 19 and

started Dell Computers Corp. with $1,000 bought excess inventory at cost, installed

graphics cards and hard drives and sold by direct marketing

1985 - 40 employees assembling own PC’s with off-the-shelf components

1993 - 4th largest PC maker in US with $2 billion in sales

Dell Computer Corp.

Marketing approach: Eliminate dealers and

distributors and work hard to meet customer needs through

quality service.

Marketing Plan

should be an annual activity that focuses on implementing decisions related to marketing-mix

should be monitored frequently does not have to be very sophisticated,

but should be very thorough

Marketing Plan Can

enhance firm’s ability to integrate marketing activities

minimize the effects of surprise from sudden changes in the environment

establish a benchmark by which to measure success

enhance management’s ability to manage since expectations are clearly designated

Marketing Plan Can Not

provide a crystal ball that will enable management to predict with extreme precision

prevent management from making mistakes

provide guidelines for every major decision go through the year without requiring some

modification due to environmental changes

Market & Sales Plan

OpportunityMission &Strategy

Bus ModelTarget Market

MarketingObjectives

Marketing Research

Marketing Plan

Sales Plan

Elements of Marketing Plan Marketing Objectives Target Customer Segments Product Offering Description Market Research and Strategy Marketing Mix Customer Relationship Management

Define Business Situation

Industry analysis size of market growth rate source and availability of suppliers threat of innovation or new technology regulations

Assessment of competitive environment location market share strengths and weaknesses

Target Market

Segment & targeting customers decide general market you wish to pursue divide market into smaller groups

geography demographics psychographic desired benefits usage buying conditions

select market segment(s) develop marketing plan integrating product, price,

distribution, and promotion

Product Offering Description Positioning is the act of designing the

product offering and image to occupy a distinctive place in the customer’s mind

Product Offering communicates the key values of the product

Unique Selling Proposition gives the key customer benefit of a product that differentiates it from its competition

Product Offering Description

high

med

low

low med high

PerformancePrice Ratio

Ease of Use

Mac

Easy PC

Gateway

Hewlett-Packard

Dell

Product Offering Description Positioning Statement

For (target customer) Who (statement of need) Product (product category) That (statement of benefit)

Differentiation Unlike (primary competitive alternative) Our Product (statement of primary

differentiation)

Product Offering Description Positioning Statement

For companies Who employees and partners need up-to-date

information when they need it Product Microsoft.Net is a new generation software That enables unprecedented level of software

integration Differentiation

Unlike Java Our Product infused in the MicroSoft platform,

providing the ability to quickly and reliably build, host, deploy, and utilize connected solutions

Market Research Process of gathering information that serves

as the basis for a sound marketing plan Research process

Define the product & its unique selling position. Identify target segment. Identify questions that will provide data on customer preferences

Collect data using surveys, demographics, focus groups, etc.

Analyze data to determine if product meets needs Draw conclusions about customers, their needs

and preferences.

Market Research

1. Define purpose or objectiveshow much would customer be willing to paywhere would customer prefer to buy itwhere would customer expect to hear about product

2. Gather data; secondary sourcestrade journals, libraries, government agencies

3. Gather data; primary sourcesobservation, questionnaire, interviewing, focus groups, experimentation

4. Analyze & interpret results

Market Research Determine market potential Conjoint analysis – relative importance

of one attribute as apposed to another – trade-off adjustments

Brand equity – Nike appeals to rebel youth who want to stand out as different from the crowd Brand awareness Perceive quality Brand association Brand loyalty

Marketing Strategy

Marketing Mix Product or service Pricing Distribution

recent success of direct-marketing techniques mail order catalog shopping fastest growing

segment in retailing mailing lists very afforable

Promotion

Marketing Mix (Price)

low high perceived quality

high

Price

low

ValueBargain

Premium Contradictory

Those whowant the best &can pay

Low price ismore importantthan quality

No target

Best value forwhat they spend

Customer Relations Mgmt Satisfied customers are not necessarily

repeat customers Satisfaction is a measure of what

customers say; loyalty is a measure of what they do

Satisfaction measurement can help identify what doesn’t work

Loyalty measurement helps firms devise strategies to hold on to customers

Some Plans Fail

Lack of a real plan Lack of adequate situation analysis Unrealistic goals Unanticipated competitive moves

product deficiencies acts of God

Environmental Analysis

External Envir.EconomyCultureTechnologyDemandLegal-PoliticalRaw materialsCompetion

Internal Envir.FinancialSuppliersGoals Management

EntrepreneurMarket Planning Decisions

MarketingStrategies

Purchase decisions ofcustomers

Marketing-mix Decisions

Diffusion of Tech & Innovations

Innovators Early Early majority Laggards adopters

2.5% 13.5%

34% 34%

16%

Diffusion of Tech & Innovations

Innovators Early Early majority Laggards adopters

2.5% 13.5%

34% 34%

16%

Diffusion of Tech & Innovations

Chasm

Adopters of Innovation Innovators – work with complex

undeveloped ideas Early adopters – more integrated with

potential adopters than innovators – visionaries

Early majority – adopt just ahead of the pack – pragmatists

Late majority – adopt because of economic necessity

Laggards – skeptics

Crossing the Chasm Ideas not yet at tipping point

Videophone (1960s) 3-D movies (1990s) Hybrid electric cars (2001) Fuel cell vehicles

Crossing the Chasm

Innovation Diffusion Period

Electric Power 40Telephone 70AM Radio 20Automobile 60B/W Television 12Color Television 16Videocassette recorder 17Artery Stents 8

Question Advertising can be useful for building

brand recognition. Describe the ad campaign for Aflac. Why doe this ad work ?

Question Advertising can be useful for building

brand recognition. Describe the ad campaign for SDSU, USD, NAU, SDSM&T. Which of these ad campaigns work? Why?