generic business & marketing plan

8/3/2019 Generic Business & Marketing Plan

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Your Company Name Marketing Plan

Company NameMarketing Plan

Company Address

City, State, Zip

Phone: 123-456-7890

Fax: 123-456-7890

Email: [email protected]

Web Site: www.company.com

Contact: Jack Smith

PROPRIETARY and CONFIDENTIAL INFORMATION: Do Not Distribute 1


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TIMING........................................................................................................................................................................27

EVALUATION AND CONTROL.............................................................................................................................28

MARKETING INFORMATION SYSTEMS NEEDED...................................................................................................................28CRITERION MEASURESWITH OBJECTIVES.........................................................................................................................28

APPENDIX A: BIOGRAPHICAL SKETCHES OF KEY PERSONNEL............................................................29

APPENDIX B: SUPPORT MATERIAL..................................................................................................................29

PROPRIETARY and CONFIDENTIAL INFORMATION: Do Not Distribute iii


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Executive Summary

[Click here to enter your own text]

The executive summary is a concise overview of the marketing plan. It is often the last section ofthe marketing plan written. Its purpose is to provide the reader with enough information toquickly judge whether or not the plan is feasible. This section of the plan should address, with

brief summary statements, items such as your marketing objectives, goods or services included

in the plan, resources required and projected outcomes. Remember that the purpose of amarketing plan is to serve as an internal sales document. Take your time when developing the

Executive Summary: many experts consider it to be the single most important element of the

marketing plan.

Marketing Objectives[Click here to enter your own text]

In this section, briefly describe your marketing objectives. Ask yourself why is it important tomarket your goods or services? What do you hope to accomplish? What image does your good orservice have in the eyes of the consumer? What marketing channels will you use to offer your

product? How will your current customers react to a new product offering? State your marketing

objectives in a format that is measurable. Are you seeking to increase gross sales? What are yourmarket share objectives?

Goods or Services[Click here to enter your own text]In this section, briefly describe your products, product lines, and services. What are you selling?

Is it a good, a service, or more commonly, a combination of the two? What are the products

benefits? What makes you think that this good or service is in needed in the marketplace?

Resources Needed[Click here to enter your own text]

In this section, briefly describe the technological, financial and human resources needed toexecute your plan. What are the costs associated with these resources? Who is responsible for

covering these costs? Do you have the resources in place or will you have to obtain them? When

considering human resources, can you out-source by hiring consultants, are you re-assigningcurrent employees, or will you need to hire new employees?

Projected Outcomes

[Click here to enter your own text]In this section, briefly describe what the projected outcomes of your marketing efforts will be. Is

there a payback period? When will your proposed marketing plan produce a profit? Describe the

type of outcomes you expect to achieve in both the short term and the long term? Essentially,you are presenting compelling evidence that your plan will work.



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Company Description

[Click here to enter your own text]In this section of the marketing plan, provide a brief overview of the company, its product lines

and its overall marketing strategy. Remember that many readers of the marketing plan will becompany employees as well, so keep your descriptions brief and concise. In addition, highlight

the companys recent history and successes use these to build the readers confidence that your

company and its current marketing plans are on the right course.

Strategic Focus and Plan


The Strategic Focus and Plan sets the strategic direction for the entire organization, a direction

with which proposed actions of the marketing plan must be consistent. This section may or maynot be included in the marketing plan, depending on the plans intended audience. The

components of this section of the marketing plan consist of the mission/vision, goals, and core

competency/sustainable competitive advantage.

Mission/Vision[Click here to enter your own text]

Concisely define the mission/vision of the company. This qualitative description focuses on thefundamental activities the company will undertake in order to best serve its stakeholder groups.

Describe in general terms product, price and place strategies and how these will maximize

shareholder value and build relationships with stakeholder groups.

Goals[Click here to enter your own text]

The Goals section sets both the financial and non-financial targets where possible inquantitative terms against which the companys performance will be measures. It is acceptable

to use lists or other information presentation techniques to improve the readability of this section

of the marketing plan.



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Core Competency[Click here to enter your own text]

Discuss the companys core competency and any sustainable competitive advantages accrued.

Your core competency is your unique ability to do something that your competition cannot ordoes not do to meet consumer needs. Core competencies yield competitive advantages. These

competitive advantages allow you to more effectively and efficiently compete in the

marketplace. Competitive advantages include items such as lower cost factors of production,unique products, unique technologies, unique marketing expertise, protected access to markets,

etc. Ultimately you should envision competitive advantage as layers of an onion: you need

multiple and fluid layers of competitive advantage to sustain long-term economic health. Asingle competitive advantage is not defendable in the long-term unless it provides you with a

monopoly on one of the factors of production.

Situation Analysis

[Click here to enter your own text]Most marketers use a form of situation analysis called a SWOT analysis (Strengths, Weaknesses,

Opportunities and Threats) to assist them in conducting a company analysis. The Strengths and

Weaknesses usually have an internal focus (within the company) and Opportunities and Threatshave an external focus (outside of the company). Many companies seek to match strengths with

opportunities while managing weaknesses and containing threats. A balancing act to be certain

and one that requires brutal honesty in order to be effective. The Situation analysis is a snapshotto answer the question Where are we now?

Internal Focus

[Click here to enter your own text]In this section of the SWOT analysis, describe the current state of the Strengths and Weaknesses

of the company. Internal factors to consider when developing a SWOT analysis include items

such as Management, Offerings, Marketing, Personnel, Finance, Manufacturing, Research &Development, Information Systems, etc. The goal is to provide an overview of the management

team, the product offerings, and the functional areas of the organization and their ability to react

to opportunities in the external environment.

External Focus[Click here to enter your own text]

In this section of the SWOT analysis, describe the current and/or anticipated state of

Opportunities and Threats outside the control of the organization. External factors to considerinclude the Consumer/Social environment, the Competitive environment, the Technological

environment, the Economic environment and the Legal/Regulatory environment.



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Consumer/Social


Describe and opportunities and threats perceived in the consumer and/or social environment such

as changing consumer tastes, changing social perceptions of the product class or product, etc.Illustrate that you understand the fluidity in the consumer and social environments and thatyouve determined the direction of future changes in preference. Think about who your current

customers are and what your current product offerings are and how these present both

opportunities and threats. Provide an analysis of the cultural and social environments in whichyoull be operating and discuss the potential impact that these environments may have on the

success of your marketing plan. How culturally or socially sensitive is your product? Discuss

cultural or social constraints placed on marketers in this product category. What are cultural orsocial trends in this market and how will this impact your marketing plan?

Competitive


In this section, describe any competitive opportunities and threats that you foresee in the future.

Is your product or process patentable? Do you have a strong brand name, brand equity or otherunique competitive advantage that will be hard for competitors to negate?

Technological

[Click here to enter your own text]In this section of the marketing plan, discuss the technological environment as it concerns the

product or products contained within the scope of this marketing plan. How critical of a role does

technology play in the successful marketing of your product? Are any of your core competencies

technologically dependent? What technological developments do you foresee on the horizon andhow might they impact your marketing plan? Likewise, describe any technological threats

looming on the horizon and how they may impact your companys situation.

Economic

[Click here to enter your own text]Describe the current economic environment in which youll be competing. What is its scope

(local, regional, national or international)? What trends are observable (economic contraction,

expansion, etc.)? What are the economic projections for the near future and the long-term? Docurrent or future economic conditions present opportunities and threats? For instance, is there

seasonality in your industry? Is there a predictable business cycle? Describe the current state ofthe economy in which youll operate and your expectations for the future.



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Regulatory


Describe any legal or regulatory factors that present opportunities or threats for your company. Is

there a changing legal or regulatory statute that presents new opportunities for how you conductbusiness or what products you sell? Is there increasing regulation in your industry? Provide anoverview of the political and legal environments in which youll be operating. Discuss any

regulatory issues that impact how and where you will market your product. Are there regulations

regarding product, price, place or promotion that impact how you intend to market your product?Analyze the stability of the political and legal environments in which you plan to operate.

Industry Analysis/Trends[Click here to enter your own text]The Industry Analysis section provides the backdrop for the subsequent, more detailed analysis

of competition, the company, and the companys consumers. Without an in-depth understanding

of the industry, the remaining analyses may be misdirected. Use this section to demonstrate tothe plans readers that you understand the industry in which you compete and that you are

cognizant of trends impacting the industry.

Competitor Analysis[Click here to enter your own text]

As with the Industry Analysis, the Competitors Analysis demonstrates that the company has a

realistic understanding of who its major competitors are and what their marketing strategies are.The beauty of our free market system is that consumers have choice. And that open competition

ultimately leads to higher quality, lower cost goods for the market. In this section of the

marketing plan, describe who your current competitors are, predict who any likely future

competitors will be, and discuss the differences in competitive advantages or core competenciesthat exist among the competitors in the marketplace.

Nature of Current/Likely Competitors


Knowing as much as you can about your competition allows you to make informed decisionswhen it comes to implementing your marketing plan. Define who your current competitors are,

what their position is in the market, and how much of a threat they are to your success. Again,

this section of the marketing plan is highly dependent on the current stage of the product lifecycle. If your product is in the introduction or growth phase, there are probably fewer current

competitors and many likely competitors. If you are in the maturity phase of the PLC, thecompetition is fairly well defined. Gather as much information about the competition as possible.Much of it can be used in the following two sub-sections.



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Current Status of Prospective Competitors


Are you competing with companies comparable in size? Or are they much larger? Are you

competing against much smaller companies or boutiques? Are your competitors profitable? Whatdo you do better than your competitors can do? What do your competitors do better than you cando? Can you anticipate the emergence of new competitors? Use the table below or one that you

modify to summarize these core competencies.

YouCompetito

r 1Competito

r 2Competito

r 3Competito

r n

CoreStrength

SecondaryStrength

NextStrength

BiggestWeakness

SecondWeakness

NextWeakness

Core Competency Comparison

Competitive Barriers


Discuss any competitive barriers that you need to overcome, any barriers to entry that exist in themarket and any sources of competitive advantage that you enjoy. Competitive barriers include

items such as economies of scale and scope that must be reached in order to be profitable in the

market, access to distribution channels, access to customers, etc. Barriers to entry may include

items such as high levels of capital investment, long payback periods, proprietary technology,legal or regulatory restrictions, etc.

Company Analysis[Click here to enter your own text]The Company Analysis provides details of the companys strengths and marketing strategies that

will enable it achieve the mission, vision and goals identified earlier.

Company Strengths and Overall Marketing Strategies




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Define the overall company objectives in terms of return on investment, long-term financial

health, growth expectations, and the focus on building shareholder equity. Historically, how wellhas the company met its objectives? Are there noticeable trends? What is the current economic

status of the company and what is the target economic status?

Discuss the companys overall marketing objectives for the products it sells. Potential objectives

include, but are not limited to, capturing and defending market share, reaching target levels ofgross sales, reaching target levels of net sales, building brand name recognition and/or brand

equity, inventory turnover targets, etc.

Company Resources


All marketing decisions are constrained by resource availability. In this section of the marketing

plan, discuss company financial, technological and human resources that impact your marketing

plan. Creatively determine how you can overcome resource limitations to leverage the best

possible performance given these limitations.

Customer Analysis[Click here to enter your own text]

Marketing decisions should always be made with the consumer in mind. The marketing concept

dictates that marketers focus on meeting consumer needs in order to build successful long-term

exchange relationships. Satisfying customers and providing genuine value to them is whyorganizations exist in a market economy. In this section of the marketing plan, demonstrate that

youve performed a detailed analysis of your potential market for the products included in the

marketing plan, how the consumers in the defined markets typically purchase your product andfor what reason, and what type of relationship you plan to establish with these consumers.

Whereas the previous sections provide the foundation on which to build a marketing plan, thissection provides you with an opportunity to demonstrate the reason why the plan exists: to servethe needs of potential customers.

Customer Characteristics


In this section of the marketing plan, discuss who makes up the market for your product.

Remember that there are three conditions for being considered as a viable market: consumersmust have the ability, willingness and authority to purchase what you are selling to be considered

a market for your product. Provide evidence that youve sufficiently researched who meets the

three criteria to be considered a market for your product, how youve determined this, anddescribe the demographic and/or psychographic characteristics of a typical consumer. Keep in

mind that while there is typically overall or general market for your product (the three criteria

from above), there may be multiple customer profiles that can be generated from this marketbased upon demographic and psychographic reasons for purchase.



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Furthermore, knowing that there are three general strategies for applying the marketing mix to

defined markets (undifferentiated, concentrated and differentiated), discuss which of the threegeneral strategies that you intend to utilize and justify your decision. This general strategy

decision will strongly influence the following two sub-segments of the marketing plan.



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Possible Segmenting Dimensions


Based upon your selection of a general marketing strategy in the section above, and on the

premise that you cant be everything to everyone, describe possible market segmentationvariables that you plan to use individually or in combination to break down the overall marketinto potential segments. Typical segmentation dimensions include items such as demographics,

psychographics, geo-demographics, and behavioral factors. However, the beauty of segmentation

is that you as the marketer have the opportunity to define segments as you see fit. Not allcompetitors in your product category or class will have defined identical market segments.

Marketing in general, and segmenting specifically, is an art. The only guidelines for selecting

segmentation dimensions are that the dimensions are observable, consistent and logical. Ideallymarket segments meet the following four criteria: they are homogeneous within, heterogeneous

between, substantial and operational.

Key Influences on the Buying Process


In this section of the marketing plan, discuss the key influences on the buying process. Why dothe consumers in your target market(s) purchase the product? How does the level of involvement

associated with the product (high involvement versus low involvement) impact the information

search and buying process? Are there elements of the marketing mix that influence how or wherethe product is purchased? Knowing the key influences on the buying process allows marketers to

develop a marketing mix that is better able to satisfy consumer needs.

Type of Buying Situation

[Click here to enter your own text]What is the typical buying situation for your product? What needs must the customer have

identified to begin the purchase process? Describe the typical buying situation or situations that

consumers can expect to experience when they purchase your product. Who, what, where, whenand why, the five Ws of journalism, may provide you with a basic framework with which to

describe the types of buying situations that you foresee.

Nature of Relationship with Customers

[Click here to enter your own text]Discuss the nature of the relationship with your customers that you wish to establish. Remember

that customers and their needs drive our business. And that it is easier to sell more to existingcustomers than it is to acquire new customers. What type of customer loyalty programs do youenvision establishing for the product(s) being marketed? Do loyalty programs make sense for

your product? Are there peripheral ways of generating customer loyalty such as building a strong

brand identity that meets the needs of the customers? Take the time to demonstrate that youve

considered how the nature of your product dictates the nature of your potential relationships withyour customers.



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SWOT Analysis Summary[Click here to enter your own text]

A SWOT Analysis is a specific type of situation analysis designed to gauge the competitivenessof a company given its limitations. The strengths and weaknesses are usually thought of asinternal to the company and the opportunities and threats are usually thought of as external to the

company. In order for a SWOT analysis to be useful, the information it contains must be brutally

honest. This is not the time to gloss over weaknesses or to minimized threats. Complete eachsection separately (Strengths, Weaknesses, Opportunities and Threats) and to summarize your

findings in the table provided below.

Strengths Weaknesses

Strength 1 Strength 2

Strength 3

Strength 4

Strength n

Weakness 1 Weakness 2

Weakness 3

Weakness 4

Weakness n

Opportunities Threats

- Opportunity 1- Opportunity 2- Opportunity 3

- Opportunity 4- Opportunity n

Threat 1

Threat 2

Threat 3

Threat 4 Threat n

SWOT Analysis Matrix



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Market Product Focus


This section of the marketing plan highlights your understanding of the market in which youcompete, its possible segments and/or sub-segments and how your product serves unmet

consumer needs in the market. This is the meat and potatoes of the marketing plan

Marketing and Product Objectives[Click here to enter your own text]

Concisely define the market in which you will be competing. Remember that to be considered a

market for your product(s), potential customers must have the ability, willingness and authorityto purchase your product(s). Concisely define the product offering. Determine which stage of the

product life cycle the market is in and discuss how this impacts your marketing strategy. For

instance, if you are introducing a new product class to consumers your initial task will be to build

primary demand for the product class. If you are introducing a new product into an existing,mature, market your goal may be to acquire market share at the expense of your competition.

Properly defining the market in which youll compete is the foundation of the marketing plan.

Target Markets[Click here to enter your own text]

After regrouping the heterogeneous overall market into smaller homogeneous market segments,

and depending on the general strategy for applying the marketing mix that youve selected,discuss which segments that youll pursue with your marketing efforts and why. Typically the

target markets selected have the following characteristics: they are large enough economically to

warrant attention and they are stable. If you focus all of your marketing efforts on one markettarget market, you are using a concentrated strategy or a single target market approach. If you

select multiple segments and develop different marketing mixes for each segment, you are using

a differentiated or multiple target market approach. If you treat the entire market as your targetmarket, you are using an undifferentiated strategy. A compromise to the former may be to

combine two or more segments and to target the combined segments with one marketing mix.

Each strategy has its associated plusses and minuses. It is up to you to justify which approach

that you intend to use and why.

Points of Difference[Click here to enter your own text]

An organization cannot grow by offering only me-too products. The greatest single factor in anew products failure is the lack of significant Points of Difference that set it apart from

competitors substitutes. How does your product compare to competitive offerings vis--vis

features and benefits? Use the table below or one that you modify to show this competitivecomparison.



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Good/ServiceComparison

YourProduct

Competitor 1

Competitor 2

Competitor 3

Competitor n

Price

Perceived Quality

Marketing/salesAdvantagesFeature 1

Feature 2Feature 3

Benefit 1Benefit 2

Benefit 3

Competitive Comparison Matrix

Positioning[Click here to enter your own text]

A positioning strategy helps communicate the companys unique points of difference of itsproducts to prospective customers in a simple, clear way. Describe how you currently or propose

to position your product(s) vis--vis the competition in the minds of consumers. Proper

positioning leads to competitive advantages and the development of brand equity.

Marketing Program


Everything contained in the previous sections of the marketing plan serve to set the stage for this

section in which you present the marketing mix actions the 4 Ps covered in the marketing

program. Describe in detail how your manipulation of the marketing mix variables will serveconsumer needs while simultaneously maximizing shareholder equity.

Product and Product Strategy[Click here to enter your own text]

Use this section to describe in detail the key elements of the companys product strategy. Provide

an overview of the product class, the products stage in the Product Life Cycle, any warranties or

guaranties associated with the product, etc.

Product Class


Describe the general product class in which you will be competing. What type of consumer orbusiness product are you proposing? What, if any, consumer preferences must be addressed in

order to succeed in this product class?

Current Product Life Cycle Stage




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In what stage of the product life cycle is the overall product class: Introduction, Growth,

Maturity or Decline? Has the industry gone through turbulence (a hypothetical stage of theproduct life cycle just after growth and before maturity during which there is an industry shake-

up and non-profitable competitors drop out)? Is there an opportunity for arbitrage (introducing

the product into a new market in a different stage of the product life cycle)?

Specification of Core and Augmented Product


In this section, describe the product(s) that you will be marketing. The core product is the basic

physical good or service being marketed. The augmented product is the combination of goodsand related services combined to provide a competitive advantage in the marketplace. Very few

items are pure goods or pure services. Discuss the combination of goods and services you

are offering. Most offerings are a combination of the two: some mix of good and service.Bundling goods with service can be a source of competitive advantage. Sears appliances are a

good example: there are better appliances on the market, but few can match Sears level of after-

sale service.

Supporting Customer Services Needed


Whether you use the concept of an augmented product or not, all products need a certain level of

service support. In this section of the marketing plan, describe all levels of customer service

needed to launch and support your product. Where will you locate customer service centers?How many do you need? What services will they provide and who will pay for them?

Warranty

[Click here to enter your own text]Describe the warranty, if any, provided with this product. What is covered under the warranty?

How long will the warranty last? Is it renewable or are service contracts offered? Who will

support the warranty (will it be handled internally or contracted out)?

Branding


Brand image is something that is built over time. Todays communications-oriented society,

however, doesnt provide marketers with the luxury of time. In this section, you want to answer

the following questions:

What type of branding will you use? (Manufacturer versus dealer, family brand versus

individual brand, etc.)

How do you plan to create a brand image?

How will you make yourself distinct from the other businesses/products?



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These questions take on more importance in an environment where time is a luxury.

In this section, give some thought to how you will build your image in the mind of the customer.

The goal is to develop a product/service that delivers what it promises consistently over time. By

doing so, you hope to build brand equity, or a value above and beyond the economic value of the

brand. Traditionally, brand equity is built incrementally over time. Building brand image andequity is analogous to filling an in-ground swimming pool with a shot glass. Only through a

consistent effort over time can one hope to accomplish this task. And once completed, it is easier

to maintain than it is to start over again.

Describe how you will build brand image. How do you plan to create a brand image that isconsistent with what you are delivering? Is there something unique about your product offering

that you can use to your advantage in terms of branding? If you are offering something that is not

unique, how do you differentiate your product or service from your competitors in the eyes of theconsumer?

Discuss how you will maintain your brand. Are you delivering what the customer expects or areyou making promises that you cant keep? For example, if you are offering fast delivery, are you

keeping your promise? How do you plan to keep your brand fresh in the eyes of the consumer?How do you propose to consistently maintain your brand image?

Packaging


Describe the general packaging format of the overall product class. Are there customerexpectations with regard to packaging that must be met? Are there promotional and/or labeling

needs that are a result of consumer preference or government regulation? What are the protection

needs/concerns associated with this product class and your product in particular? Can you usepackaging as a source of competitive advantage?

Cultural Sensitivity of Product


What, if any, issues of cultural sensitivity must you be aware of when marketing this product? Iflaunching globally, are there differences in the core or augmented product and/or packaging

necessary because of cultural sensitivity?

Fit with Product Line

[Click here to enter your own text]How does the proposed product fit within your existing product line? Is it a complementary or

supplementary product? Is this a new product line? Illustrate that youve thought about how this

product fits with your current business, or if it is for a new product and a new business, how youcan build your future business around this product.



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Price[Click here to enter your own text]

Price is the element of the marketing mix that generates funds for the company. Price alsoinfluences how the brand is perceived. Typically, a high price connotes high quality. Consumers

search for some combination of price and quality that allows them to maximize their utility.Pricing strategies can be static or dynamic. Static pricing strategies include Cost Plus Pricing(cost of production per unit plus a profit margin), Return on Investment Pricing, Price Skimming

(charging what the market will bear), Price Penetration (using a low price to penetrate the

market), and Break-Even Pricing (price to just break even with regards to fixed costs and

variable costs). Dynamic pricing strategies are non-traditional or innovative ways to generatesales. With a dynamic pricing strategy, the only criteria is that you exceed your break-even point

per unit in either sales or based upon the net present value of a revenue stream generated by the

products use. Dynamic pricing strategies include auctions, reverse auctions, free products thathelp build market share and/or generate targeted e-mail lists.

This section should focus on what type of pricing strategies you will use based upon the demand

for your product(s), the available supply and the typical markup chain in your industry.

Nature of Demand


What is the nature of the demand for your product(s)? Is the demand cyclical or seasonal? Or is it

constant? What is the level of demand versus the supply that is, is there enough supply to

satisfy demand? Describe how demand impacts price and quality in your market. Is demand foryour product elastic or inelastic? Is demand for your product dependent upon or tied to the

demand for another product?

Demand and Cost Analysis

[Click here to enter your own text]What is the break-even point in units? Is there sufficient demand to allow you to reach your

break-even point? How do economies of scale and scope impact your break-even point? What is

your fixed cost per unit, your variable cost per unit and your total cost per unit for differentlevels of projected demand (conservative, average, optimistic)? Discuss the relationship between

demand and cost and how you will manage this relationship.

Markup Chain in Channel


Given your desired return on investment, channel type, customer demand and manufacturerssuggested retail price, what are the markup percentages and margins that each member of the

marketing channel can expect to make? Is the markup chain reflective of the risks assumed byeach channel member (i.e., the channel member who assumes the most risk receives the highest

margin)? The perception of an inequitable distribution of channel profits creates channel conflict.

Describe who can expect to make what.



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Price Flexibility


In this section, describe whether you are using static pricing, dynamic pricing or a combinationpricing strategy. How structured are your prices? How much latitude do you have in setting

price?

Price Levels


Are you planning to use a price lining strategy where you have a range of prices for varyingdegrees of product quality (low, medium and high price points)? Will you be using a skimming

strategy or a penetration pricing strategy? Is it possible to use a market basket pricing approach,

where you take a loss for one or a few products in order to make a profit for the entire basket ofprofits offered?

Adjustments to List Price[Click here to enter your own text]Under what instances will you offer adjustments to the list price? Will you have trade discounts,

quantity discounts, seasonal discounts or any price reduction promotions? Many of these

adjustments may have been covered in the sales promotion and/or push and pull marketing

sections of the marketing plan.

Promotion[Click here to enter your own text]To be successful you must have a focused and coordinated promotion and advertising plan.

Without focus or goals, promotion and advertising useless. In addition, how will you reach

potential customers?

Rather than aiming for pie-in-the-sky projections, try to remain reality based. Success wonthappen overnight and it wont happen with one advertising or promotion campaign. Advertising

and promotion require a consistent effort over time in order to work effectively for you.

Promotion Objectives


Use this section to define how you will promote your business. How will you promote yourproduct or service? How will you induce trial? How will you convert trial users to customers?

How will you keep your promotional message fresh and pertinent to your customers? How will

you reach former customers or stay in contact with current customers? What are yourpromotional goals? Some potential goals are to stimulate sales, increase awareness, generate

interest, remind consumers to purchase and/or to persuade consumers to purchase.

Major Messages/Themes for IMC




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Integrated Marketing Communication (IMC) is the intentional coordination and effective

blending of all of the firms promotion efforts to convey a consistent and complete message tothe companys intended market. Possibly the most successful application of IMC in recent

history has been Nikes Just Do It campaign. All messages from Nike have used this central

theme to promote the link between the companys athletic footwear, clothing and accessories andgood health through exercise. This three word play on words based on our propensity to put off

exercise has been, and remains, highly successful. What type of theme or message makes sense

for your product? To be effective, it has to communicate something about your product and howit fits the needs of the consumer.

Promotion Blend


Successful promotion requires a blend of the promotional mix (advertising, personal selling,sales promotion, publicity and interactive media). Your specific promotional blend is product

and industry dependent. For instance, high involvement products require higher levels of

personal selling than do low involvement products. And an increasing percentage of thepromotional budget is being spent on sales promotion over advertising in consumer goods

markets. As with most other marketing decisions, promotion and the allocation of resources

across the promotional blend is constrained by the financial resources of the company.

Advertising[Click here to enter your own text]

In this section discuss the type, amount and cost of advertising that you need to accomplish yourmarketing objectives. How much money do you have to spend on advertising and how will it be

used to maximize exposure given the budget constraint? How often will your advertisements run

and where? What are your advertising goals? Remember that there is no linear relationship

between advertising dollars spent and sales: therefore the best we can do is to use the objective-task budgeting method to determine how much it will cost to achieve a desired, measurable,

objective.

Personal Selling[Click here to enter your own text]

What level of personal selling is needed to stimulate the sale of your product(s)? This is stronglycorrelated to the degree of involvement associated with the product: high involvement versus

low involvement. Higher involvement products, those with higher risks associated with making a

poor purchase decision, require higher levels of personal selling than do low involvementproducts. Technological complexity also influences the degree of personal selling needed for a

product, with highly complex products requiring more personal selling. In this section of the

marketing plan, define the desired level of personal selling needed to ensure the success of yourmarketing plan and determine the budget necessary to accomplish your objectives.

Sales Promotion[Click here to enter your own text]



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The goal of sales promotion is to increase sales in the short-term. Cooperative advertising, Point-

of-Purchase displays, coupons, rebates, etc. are the means by which companies engage in twobroad types of sales promotion: push and pull marketing. Push marketing consists of sales

promotion activities designed to push the product through the marketing channels to the final

consumer. Pull marketing consists of sales promotion activities designed to pull the productthrough the distribution channel from producer to consumer by stimulating consumer demand.

Although sales promotion is currently the largest percentage of the consumer goods promotional

budget, one must remember that the costs of sales promotion are bourn by the company.Consumer goods companies tend to prefer sales promotion to advertising for one reason: the link

between sales promotion and sales is direct and measurable.

Publicity[Click here to enter your own text]

Publicity is any non-paid mass communication message initiated by the company. The goal of

publicity is to attract the firm and its offerings without having to pay media costs. How doespublicity fit into your marketing plan? How do you plan to manage publicity? Is there a publicity

schedule that fits well with your promotion plan? What are the costs associated with publicity

and what percentage of your overall promotion budget should be spent on publicity?

Interactive Media[Click here to enter your own text]What level of interactive media, such as Internet marketing, instant couponing, interactive

kiosks, CD-ROM promotional disks, do you plan to use to support your product(s)? Is it possible

to use the Internet as a distribution tool? Is an Internet presence required for your product even if

you dont plan to sell direct to the customer via the Internet? How can you use interactive mediato increase your level of perceived customer support? In this section, discuss the importance of

interactive media in the success of the marketing plan. What are the costs associated with using

interactive media as part of the promotional mix?

Mix of Push and Pull Required


Push and Pull marketing (sales promotion) are not mutually exclusive decisions. Most marketers

use a mix of push and pull marketing to stimulate sales. What mixture of push and pullmarketing do you plan to use to stimulate sales? Who will the target audiences be (consumers,

wholesalers, channel members, sales people)? What is the cycle or schedule of push and pull

marketing required to meet your marketing objectives?



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Who Will Do the Work


In this section of the marketing plan, describe who will do the promotion work discussed above.

Do you have in-house expertise or will you need to job-out elements of the promotion mix?What type of compensation do you envision paying your promotion partners? The most commonelements of the promotion mix to job-out are advertising, sales promotion, publicity, and

interactive media. How does the in-house versus job-out decision impact the promotion budget?

Place[Click here to enter your own text]

Place, or distribution, pertains to how and where the product is delivered to the consumer. In this

section, discuss your distribution strategy. What intermediaries will be used? What method ofdelivery do you plan to use? Who will you partner with to facilitate the flow of goods? How will

the flow of information and funds work? Identify the trade intermediaries that youll work with

to facilitate the exchange. If you are selling a product, how will you ship the product to thecustomer, who may be the end-user or one of the trade intermediaries? Discuss your distribution

objectives, types of distribution channels to be utilized, the degree of value chain coordination

needed, transportation, product handling and storage facilities required as well as any reversechannels that are being proposed.

Objectives (degree of market exposure)


Define your distribution objectives in terms of the degree of market exposure desired: Intensive,

selective, or exclusive. The goal of intensive distribution is to be in as many locations as possible

to provide consumers with easy access to your product(s). Selective distribution limits thenumber of locations in which a consumer has access to your product to a defined number per

geographic location. Whereas the focus of intensive distribution is to be everywhere, the goal ofselective distribution is to be in locations that make sense for the product and its desired brand

image. Exclusive distribution seeks to limit distribution to very few locations in a defined region

and works best with prestige items. For instance, Rolls Royce has a formula for locating itsdealership franchises based upon the population and other demographic factors in a given area.



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Type of Channel(s)


What type of distribution channel(s) do you intend to use given the degree of market exposure

desired? Direct distribution refers to products delivered to the end user directly from themanufacturer or service provider. Indirect distribution refers to products delivered to the end userthrough the use of trade intermediaries such as distributors, wholesalers, retailers, etc. Remember

that this is not a mutually exclusive decision: one may use multiple types of distribution channels

containing multiple levels depending on the product being offered and the location of thecustomers. If you plan to use multiple distribution channels, care must be taken to avoid direct

competition between the channels.

Value Chain Coordination Needed


In this section of the marketing plan, describe the type of value chain coordination needed totransform raw materials into finished goods delivered to customers in an effective and efficient

manner. Concepts such as just-in-time delivery, materials and process flow, inventory

management, Economic Order Quantity (EOQ), Electronic Data Interchange (EDI) and EfficientConsumer Response (ECR) all allude to the type of value chain activities that need to be

coordinated. By managing these activities as a system, rather than as discrete occurrences, allows

a company to remain price competitive and/or more profitable in the long-term.

Transportation Requirements


Transportation and delivery requirements are highly correlated with the type of product being

sold and the desired degree of market exposure. What combination of rail, truck, ship, airplane orpipeline is needed to deliver your finished products to the intended market? Some items, such as

computer software, do not need transportation services to deliver them to the final consumer:

they can be delivered directly to the consumer via the Internet. As with other elements of themarketing plan, the selection of the best transportation option is dependent on the budget

constraints of the company.

Inventory/Product Handling Requirements

[Click here to enter your own text]What are the inventory and/or product handling requirements that are unique to your product? Is

it perishable? Does it require special licenses for handling? The level of inventory by anymember of the distribution channel is related to the economic or opportunity costs associatedwith not having sufficient inventory on-hand to handle demand. Therefore, projecting inventory

requirements requires one to have a good understanding of the nature of the products demand.



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Facilities Required


In this section, describe the types of facilities required to facilitate the distribution of yourproduct to the consumer. For instance, combining this section with the above section, once can

see that an ice cream manufacturer needs adequate freezer space to store its finished product on-site before shipping, refrigerated shipping (truck, rail, boat or airplane), distributors withrefrigerated warehouses and retailers with refrigerated facilities in order to ensure that the

product doesnt melt before it reaches the hands of the final consumer.

Reverse Channels (Optional)


Reverse channels are channels used to retrieve products that consumers no longer want. Not allproducts require reverse channels and government regulation/legislation has a direct impact on

the existence of reverse channels. For instance, if you live in a state that requires a deposit on

soda bottles and cans, a channel for returning your bottles or cans must be developed. To ignorethe requirements of a reverse channel is a certain way of alienating and losing customers. If this

section is pertinent for your product, describe the reverse channel requirements necessary to

facilitate the return of products from the consumer.

Data and Projections


This is the section of the marketing plan where you attempt to predict the sales that will be

generated from your marketing efforts. Several approaches to forecasting exist. The key is topick the one that makes the most sense for your product or industry.

Sales Forecasting Methods Used[Click here to enter your own text]

How do you develop your sales forecast? If you have valid assumptions, and are conservative in

projecting expected sales, you have a fair chance of developing a realistic sales forecast. This is

much easier if you have historical data from earlier operations or from your competitors. In manycases, this information can be gleaned from secondary data sources. For many firms, industry

sales averages exist in publications such as the Robert Morris data.

In this section discuss the sales forecasting method that you are using. Choose a forecasting

method that makes sense for your business and include this sales forecast worksheet in theappendix of this plan. Think about if it makes sense to forecast your revenue streams by product

(or product line or service description), by sales channels (direct marketing, distributionchannels, channel partners, strategic alliances, etc.), or by both.



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Think about what drives your revenues. Are you operating under a standard business model

whereby you need to predict the number of units you will sell and at what price? Or are youoperating under a different model where some other criteria or variables generate revenue? No

matter what method or approaches you use to forecast you sales, consider this word of caution:

be conservative in your estimates. Success is built slowly.

Sales Data[Click here to enter your own text]Estimate the level of sales expected as a result of this marketing plan. Having settled on a sales

forecasting method as defined above, generate the same multiple scenarios as you did for cost:

low sales, medium sales and high sales projections. The value of developing three sets ofestimates is that you provide the reader of the marketing plan with a range of potential results.

One key indicator of what future sales will be is to look at what past sales have been. Provide

readers with a summary chart of the past few years sales results and projected future results.

Costs[Click here to enter your own text]

Estimate to the best of your ability the costs associated with each of the activities proposed in themarketing plan. Each section of the plan has costs associated with the activities proposed.

Develop a summary of costs and include a total estimated cost figure. You may want to develop

multiple scenarios: low cost, medium cost and high cost estimates with the understanding that

the costs will most likely be somewhere between the low and high estimates.

Financial Projections[Click here to enter your own text]

Using the information from the cost section and the sales section, develop a pro-forma operatingstatement (profit and loss statement). The operating statement allows for a manager to quickly

judge the attractiveness of a marketing plan by showing the gap between expected sales and

costs. Astute managers request a minimum of three pro-forma operating statements based uponthe different levels of expected cost and sales defined above. Other pro-forma statements

requested by marketing managers include an income statement and balance sheet. Again,

common-sized industry sales averages exist in publications such as the Robert Morris data. Youcan use this information to judge the viability of your projections.



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Financial Information Systems Needs[Click here to enter your own text]

Discuss what type of financial information system that you currently use and what type of

information system that you need in order to adequately process the data collected above. Do youhave the systems in place or do they need to be developed? What are the hardware and software

needs? Can you purchase off-the-shelf systems or do you need customized systems? As with

the data collection phase, estimate the cost of the financial information systems needs. Thesecosts, however, differ from the above costs in that they can be allocated over multiple projects

that is, they are infrastructure investments rather than being project specific investments. The

key is to illustrate that you have the capability to monitor sales projections and cost estimatesprovided above.

Organization[Click here to enter your own text]In this section of the marketing plan, discuss the way in which the company is currently

organized and how the organizational structure allows it to respond to opportunities in an

effective and efficient manner. Use or develop an organizational chart to illustrate the chain of

command/control in the organization and how the different functional areas of the business arelinked together in a cohesive environment. Often a more elaborate marketing plan will show the

new positions expected to be added as the firm grows or as defined as necessary for

implementation as described in the next section of the marketing plan. Attach biographicalsketches of key personnel in Appendix A if the marketing plans goal is to obtain external

funding.

Implementation Plan

[Click here to enter your own text]The Implementation Plan shows how the company will turn plans into results. Gantt charts are

often used to set deadlines and assign responsibilities for the many tactical marketing decisions

needed to enter a new market. Discuss any special implementation problems to be overcome inorder for the marketing plan to be successful. Are there any human, manufacturing, financial or

other resources that you need in order to succeed? Describe in detail your requirements in each

of the sections below and estimate the costs associated with each activity.



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People Required[Click here to enter your own text]

In this section, describe the personnel required to successfully implement the marketing plan. Do

these people already exist in the organization or do they need to be acquired. If the need toacquire extra personnel exists, do these people need to be full-time employees or are there

consultants that can be hired for the short-term who have the expertise needed to carry out the

plan. Estimate all costs associated with hiring or contracting additional personnel.

Manufacturing, Financial and Other Resources Needed[Click here to enter your own text]

Describe any additional manufacturing, financial or other resources needed to make themarketing plan a success. If manufacturing or other resources are requested, the same guidelines

as outlined above pertain: purchase or rent? Estimate all costs associated with additional

manufacturing and other resources needed.

If additional financial resources are needed, define how much and in what form. If your goal is toraise capital, determine whether it is best to seek a loan, float a bond or release additional shares

of stock for sale. What is the payback period? Is this reflected in the financial projections? What

is the risk associated with each option for raising capital? What are the market conditions andrates? Leverage is a useful financial tool. Over indebtedness is not.

Timing[Click here to enter your own text]In this, the final section of the marketing plan, discuss the plans overall time frame and the

timing of each of the activities that need to be performed in order to ensure the success of the

plan. Define the sequence of the activities and events and any foreseeable changes in marketing

activities as they relate to changes in the stages of the product life cycle encompassed in the plan.

Specific Sequence of Activities and Events


Provide a detailed list of the beginning and ending dates for each of the specific activities andevents proposed in the marketing plan. This should be a linear presentation, progressing from the

plans start date to finish date. A visual summary of the information provided in the form of a

Gantt chart or some other similar presentation style may make monitoring the specific sequenceof activities and events more manageable. Make certain to build in sufficient lead times for

things such as advertising production and placement as well as for publicity or public relations

efforts.



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Evaluation and Control

[Click here to enter your own text]There is a large difference between well-conceived plans and well-executed plans. In a perfect

world, yours is both. In reality, the difference between success and failure lies in the execution ofthe plan. The key to successful implementation is to have a method of keeping your finger on the

pulse of the project and the diagnostic tools that you need to accurately measure results. Once the

plan is implemented and you start seeing the results of your initiatives, it is important to reviewwhat has been accomplished. It is best to think of marketing plans as living documents. They

arent carved in stone: they can be adjusted, or tailored, after implementation. The essence of

Evaluation and Control is comparing actual sales with the targeted values set in the plan andtaking appropriate actions.

Finally, no plan is perfect. This is a direct result of developing the plan with less than perfect

information. Even with the best research and the best projections, plans fail. However, on

average it is better to operate with a well-conceived plan than it is to fly by the seat of yourpants. Structured plans allow you to keep track of your decisions, monitor the results, and

establish an institutional knowledge base of what works and what doesnt. To embrace a

philosophy of continuous improvement, you have to know what has happened in the past. In

other words, you need to know where youve been in order to get to where youre going.

Marketing Information Systems Needed[Click here to enter your own text]

What additional marketing information systems needs do you have for controlling the marketingplan? How will data be collected and transformed into information? What types of databases do

you need? This is in part determined by what type of business you are engaged in, what your

transformation or value-added processes are and your plans for implementing relationship and/ordatabase marketing efforts in the future. Any system that you develop or propose to develop

should be expandable to accommodate future marketing information systems needs and business

growth. Can these needs be incorporated with the financial information systems needs previouslydiscussed?

Criterion Measures with Objectives[Click here to enter your own text]In this section of the marketing plan, revisit your corporate and marketing objectives associated

with this plan and discuss the specific criterion measures to be used. How do the measures reflect

the success or failure of meeting the objectives? How are the measures calculated? What are thebaseline measures for success the minimum level of acceptable performance for each criterion

measure?



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Appendix A: Biographical Sketches of KeyPersonnel

This section of the marketing plan is where youll attach all of the support material that youve

referenced in the marketing plan such as your sales projections, etc. Use this page to separate theappendices from the text. Make certain that you update the table of contents to include the title of

each exhibit in the appendix and its page number.

Appendix B: Support Material

This section of the marketing plan is where youll attach all of the support material that youve

referenced in the marketing plan such as your sales projections, etc. Use this page to separate the

appendices from the text. Make certain that you update the table of contents to include the title ofeach exhibit in the appendix and its page number.

generic business & marketing plan

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