Development of a Marketing Plan

8/3/2019 Development of a Marketing Plan

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Development of aDevelopment of aMarketing Plan: Part 1Marketing Plan: Part 1

Basic PrinciplesBasic Principles


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Schick Vs. GilletteSchick Vs. Gillette


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SWOT AnalysisSWOT Analysis

StrengthsStrengths

WeaknessesWeaknesses

OpportunitiesOpportunities

ThreatsThreats

ConsiderOreosConsiderOreos


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R = ResearchR = Research

STP = Segmentation, Targeting, &STP = Segmentation, Targeting, &PositionPosition

MM = Marketing MixMM = Marketing Mix

I = ImplementationI = Implementation

C = Control (Getting feedback,C = Control (Getting feedback,

evaluating results, and revising orevaluating results, and revising or

improving STP strategy and MMimproving STP strategy and MMtactics)tactics)


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Sources of InformationSources of Information

Internal sourcesInternal sources

External sourcesExternal sources

Government publicationsGovernment publicationsPeriodicals and booksPeriodicals and books

Commercial sourcesCommercial sources

Nielsen Media ResearchNielsen Media Research Simmons Market ResearchSimmons Market Research


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New BrandsNew Brands

GeelyGeely

CheryChery


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What do you know about theseWhat do you know about these

automobiles?W

hat is the appeal?automobiles?W

hat is the appeal?


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Chinese CarsChinese Cars

Malcolm Bricklin (Visionary Vehicles)Malcolm Bricklin (Visionary Vehicles)

Deal to import 250,000 ChineseDeal to import 250,000 Chinese--mademade

cars annually beginning in 2007cars annually beginning in 2007Opportunity ?Opportunity ?

Which consumer and environmentalWhich consumer and environmental

trends should Bricklin consider.trends should Bricklin consider.


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Analyze Consumer andAnalyze Consumer and

EnvironmentalT

rendsEnvironmentalT

rendsDemographic environmentDemographic environment

Economic environmentEconomic environment

Other environmental trendsOther environmental trends SocioSocio--culturalcultural

PoliticalPolitical--legallegal

TechnologicalT

echnological Natural (raw materials)Natural (raw materials)


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Analyze the CompetitionAnalyze the Competition

List of primary and secondary competitorsList of primary and secondary competitors

within a 30 mile radiuswithin a 30 mile radius

Which three competitors are of theWhich three competitors are of thegreatest threat?greatest threat?

Create a chart summarizing each firmsCreate a chart summarizing each firms

strengths and weaknessesstrengths and weaknesses

Formulate your positioning strategyFormulate your positioning strategy


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STPSTP Strategic MarketingStrategic Marketing

Research might uncover severalResearch might uncover several

segmentssegments

Management must evaluate andManagement must evaluate anddecidedecide

Target FirepowerTarget Firepower


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Segment and then TargetSegment and then Target

Mass.smaller groupsMass.smaller groups

Segmentation basesSegmentation bases

Choose one or more groups that you wishChoose one or more groups that you wishto serve, this is your target marketto serve, this is your target market


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ForecastingForecasting

How many people are in your targetHow many people are in your target

market?market?

www.census.govwww.census.govMost new businesses achieve a 1Most new businesses achieve a 1--3%3%

market sharemarket share

Estimate how many times per year yourEstimate how many times per year yourtarget market will buy your product or usetarget market will buy your product or use

your serviceyour service


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PositioningPositioning

DifferentiationDifferentiation

Mind of the ConsumerMind of the Consumer

PositioningPositioning Value PropositionValue Proposition


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MMMM Tactical MarketingTactical Marketing

ProductProduct

PricePrice

PlacePlace

PromotionPromotion


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ProductProduct

Choose a product that has a clear coreChoose a product that has a clear corebenefit for consumersbenefit for consumers

Consider product features /benefitsConsider product features /benefits

Think through branding implications of yourThink through branding implications of yourproductproduct

Functional name (nose strips)Functional name (nose strips)

Image (Tiffany's)Image (Tiffany's)

Experiential (Barnes and Nobel)Experiential (Barnes and Nobel) **The brand position should tie back to your**The brand position should tie back to your

strategic positionstrategic position


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ProductProduct

Expand rangeExpand range

Improve quality or featuresImprove quality or features

Consolidate rangeConsolidate rangeStandardize designStandardize design

RepositionReposition

Change the mixChange the mixBrandingBranding


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What do these three products haveWhat do these three products have

in common?in common?


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A little dab of the pastA little dab of the past

Aqua Velva. Blue colored afterAqua Velva. Blue colored after--shaveshave

promoted by Pete Rose (1970s)promoted by Pete Rose (1970s)

ReR

e--launch old brandslaunch old brandsVitalis (popular in the 50s and 60s) newVitalis (popular in the 50s and 60s) new

line of shampoos and moussesline of shampoos and mousses

OldS

pice deodorantO

ldS

pice deodorant


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PricePrice

Consider: costs, markups, and competitionConsider: costs, markups, and competition

Fixed costs?Fixed costs?

Variable costs?Variable costs?Industry standard for markups in yourIndustry standard for markups in your

channel?channel?


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PricePrice

How many units must you sell to breakHow many units must you sell to break

even?even?

Examine competitors pricesExamine competitors prices Value (low)Value (low)

Status quo (match)Status quo (match)

Prestige (high)Prestige (high)


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PricePrice

Change the priceChange the price

Change the terms and conditionsChange the terms and conditions

Penetration or skimming policyPenetration or skimming policy


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PlacePlace

Change channelsChange channels

Change distribution methodsChange distribution methods

Change service levelsChange service levelsConsider forward or backward integrationConsider forward or backward integration


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Marketing CommunicationMarketing Communication

AdvertisingAdvertising

Sales promotions (contests, premiums,Sales promotions (contests, premiums,

samples, coupons)samples, coupons)Public relations (press kits, sponsorships,Public relations (press kits, sponsorships,

speeches)speeches)

Direct marketingDirect marketing


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Start UPStart UP

2 forms of advertising2 forms of advertising

2 sales promotions2 sales promotions

1 form of PR1 form of PRWebsiteWebsite

What do you want your target market to doWhat do you want your target market to do

as a result of your communication?as a result of your communication? Aware? Try? Repeat purchase?Aware? Try? Repeat purchase?


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PromotionPromotion

Change advertising and/or promotionChange advertising and/or promotion

Change the promotions mixChange the promotions mix

Change the messageChange the messageIs the message consistent?Is the message consistent?


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ImplementationImplementation

Engaged in strategic and tacticalEngaged in strategic and tactical

planningplanning

NowNow produce, price, distribute,produce, price, distribute,promotepromote

Implementation ProblemsImplementation Problems

Presale the sales forcePresale the sales force


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ControlControl

FeedbackFeedback

EvaluateEvaluate

ImproveImprove

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Development of a Marketing Plan