INTRODUCTION TO THE MARKETING PLANPrinciples of Marketing BUSI 141 | Professor ConradSolomon, M. B., Marshall, G. W., & Stuart, E. W. (2016). Marketing: Real People, Real Choices (8th ed.). Boston: Pearson Education, Inc.

2

WHAT WE WILL DISCUSS TODAY

•Marketing as a process•Strategic Market Planning•Mission Statement•Situation Analysis (SWOT)•Objectives

3

MARKETING IS A PROCESS• The Marketing Plan• A document – hand written or electronic, as long as

your plan is recorded• Describes the marketing environment• Internal• External

• Outlines the marketing objectives – SMART• Identifies responsibilities

4

MARKETING IS A PROCESS• Mass Marketing• Used today, but not as common• A single strategy to reach EVERYONE with a basic product

• Market Segment• Creates competitive advantage over Mass Marketing

strategy• Distinct group of customers in the larger market• Similar to one another in some way• Needs differ from other customers in larger market

5

Overall Market(a.k.a. Everyone)

Segmented Audience

with something

similar

6

STRATEGIC MARKET PLANNING• What is the Market?

• Strategy defined…. A managerial decision process that

Resources andCapabilities(Internal)

Market Opportunities

(External)

Long-term growth and survival(Success!!)+ =

7

LEVELS OF PLANNINGStrategic Planning

1. Define mission2. Evaluate the

internal and external environments

3. Set Objectives4. Business portfolio5. Develop growth

strategies

Functional Planning

1. Situation analysis2. Marketing

objectives3. Marketing

strategies4. Implement and

control of marketing plan

Operational Planning

1. Action plans to implement marketing plan

2. Marketing metrics to measure effectiveness

8

MARKET PLANNING AT WORKMissions Statement

Situation AnalysisMarketing Objectives

Marketing StrategiesImplement & Control

9

CREATE THE MISSION STATEMENT

The mission statement answers the following questions….

• What are you doing?• For whom are you doing it?• How will you do it?

10

MISSION STATEMENTAFLACTo combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers.

NIKETo bring Inspiration and innovation to every athlete in the world.

HARLEY-DAVIDSONWe fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.

INTERNAL ENVIRONMENT• Internal environment consists of controllable

elements within firm.• Key technologies • Patents• Financial stability• Supplier relationships• Reputation• Human capital

3-16

EXTERNAL ENVIRONMENT• External environment consists of factors outside the firm

which that could positively or negatively impact operations• Largely beyond direct management control, so planning is

critical• Economy• Competition• Technology trends• Sociocultural trends• Legal/political/ethical trends

3-17

THE ECONOMIC ENVIRONMENT• Marketers need to understand the state of the economy

from two perspectives• Overall economic health (e.g., GDP, Forex Rate)• Current stage of the business cycle• Level of economic development

2-14

THE COMPETITIVE MACROENVIRONMENT

•Marketers also need to understand the big picture – the overall structure of their industry.• Monopoly• Oligopoly• Monopolistic competition• Perfect competition

2-20

TECHNOLOGICAL ENVIRONMENT• Technology:• Provides firms with important competitive advantages• Profoundly affects marketing activities• Can transform industries

• Patent: • Legal document giving inventors exclusive rights to

produce/sell a particular invention in that country

2-21

POLITICAL AND LEGAL ENVIRONMENT

• Refers to local, state, national, and global laws and regulations that affect business.• U.S. business laws generally have two purposes• Fair competition • Consumer protection from unfair practices

2-22

SOCIOCULTURAL ENVIRONMENT• Refers to characteristics of a society, its people, and its cultural values and beliefs.• Demographics• Values• Social norms• Language• Ethnocentrism

2-26

18

SITUATION (SWOT) ANALYSIS

• Strengths and Weaknesses • Found internally• Can be controlled

StrengthsWhat the business is really,

really good at

WeaknessesA chain is only as strong as it’s

weakest link

19

SITUATION (SWOT) ANALYSIS

• Opportunities and Threats• Found externally• Cannot be controlled

Opportunities

Trends and anticipated changes in the market that will benefit

the business

ThreatsTrends and anticipated changes

in the market that may harm the business

20

Strengths Weaknesses

Opportunities Threats

SWOT YOURSELF

Internal/Controllable

External/Uncontrollable

Posit

iveNegative

21

SETTING OBJECTIVES

DEVELOP MARKET STRATEGIES• Identify target

market(s)• Adjust marketing mix

for each target market• Product• Price• Promotion• Place (Distribution)

3-28

PRODUCT STRATEGIES• Product strategies include decisions on:• Product design• Packaging• Branding• Support services and maintenance• Upgrades• Product variations

3-29

PRICING STRATEGIES• Pricing strategy determines how much a firm charges for

a product• A firm may base its pricing strategy on costs, demand,

price of competing products• Bundling and debundling

3-<#>

PROMOTIONAL STRATEGIES• Promotional strategy is how

marketers communicate a product’s value proposition to the target market• Advertising• Sales promotion• Public relations• Direct marketing• Personal selling

3-30

DISTRIBUTION STRATEGIES• Distribution strategies (the place component) outline

when, how, and where the firm will make the product available to targeted customers• Sell directly to the final customer or work through

wholesalers and retailers?• Choosing the right distribution strategy depends on

product, pricing, and promotion decisions.

3-31