1-1

Chapter 1:
Introduction to Marketing Planning
1-2

What is a marketing plan for?

§ To summarize marketplace knowledge

§ To show what marketing will accomplish
§ To detail marketing strategies, activities
§ To show how progress will be measured
§ To explain implementation control
1-3

Marketing plan contents

1. Executive summary, table of contents
2. Current situation (with SWOT)
3. Objectives and issues analysis
4. Target market
5. Marketing strategy and programs
6. Financial plans
7. Implementation controls
1-4

Researching the current situation

§ Examine external environment

§ Assess internal capabilities
§ Understand competitors’ strategies
§ Analyze stakeholders’ influence
1-5

Understanding markets/customers

§ Learn about markets and customers

§ Examine needs, wants, attitudes
§ Research buying behaviors
1-6

Planning segmentation, targeting,

and positioning

§ Identify segments, decide which to target

§ Create competitively distinctive position

in the minds of targeted customers
1-7

Planning direction, objectives,

and marketing support

§ Determine strategic direction

§ Set objectives
§ Plan customer service support
§ Plan internal marketing support
1-8

Approaches to growth

Exhibit source: Adapted from Alan R. Andreasen and Philip Kotler, Strategic Marketing for Non-Profit Organizations, 6e (Upper
Saddle River, NJ: Prentice Hall, 2003), 81.
1-9
Offering
product,
service,
brand,
benefit

Promotion Pricing
PRIMARY
advertising, value,
MARKETING
selling, sales TOOLS discount,
promotion rebate, terms

Channel
locations,
inventory,
coverage
1-10

Preparing to track progress and

control implementation

§ Develop sales forecasts

§ Create budgets and schedules
§ Plan to measure performance
§ Diagnose results
§ Adjust activities as needed
1-11

Guiding principles for marketing

§ Expect change
§ Emphasize relationships
§ Involve everyone
§ Seek alliances
§ Be innovative
2-1

Chapter 2:
Analyzing the Current Situation
2-2

Inside the marketing environment

1. Macroenvironment
§ Broad forces that can affect performance

2. Microenvironment
§ Groups that more directly influence
performance
2-3

Using environmental scanning

Exhibit source: Marian Burk Wood, Marketing Planning: Principles into Practice (Harlow, Essex, England: Pearson
Education, 2004), 40.
2-4

SWOT analysis
Strengths Weaknesses

Internal capabilities that Internal factors that can

can help the organization prevent the organization
achieve its objectives from achieving its
objectives

Opportunities Threats

External circumstances External circumstances

that may be exploited for that might hinder
higher performance performance
2-5

Analyzing the internal environment

§ Mission
§ Resources
§ Offerings
§ Previous results
§ Keys to success, warning signs
§ Business relationships
2-6

Analyzing the external environment

§ Demographic trends
§ Economic trends
§ Ecological trends
§ Technological trends
§ Political-legal trends
§ Social-cultural trends
§ Competitors
2-7

Judging strengths & weaknesses

Exhibit source: Mary K. Coulter, Strategic Management in Action (Upper Saddle River, NJ: Prentice Hall, 1998), 141.
2-8

Sample SWOT: FedEx

Strengths Weaknesses

§ FedEx, Kinko’s brands § Possible labor actions

§ Air, ground strength § Slower growth in package
§ Stable workforce volume

Opportunities Threats

§ New markets (China) § Intense competition

§ Custom/special services § Technology
§ More channels (Kinko’s) § Fuel costs
3-1

Chapter 3:
Understanding Markets and
Customers
3-2

Types of markets

§ Consumer market
• People buying for themselves or their families

§ Business market
• Companies, nonprofits, government agencies,
or institutions buying for organizations
3-3

Defining the market

Penetrated market
(customers already buying
such an offering)

Target market
(customers being targeted)

Qualified available market

(customers qualified to buy
based on certain criteria)

Available market
(customers interested in, with
enough income for, and with
access to offering)

Potential market
(all customers who may be
interested in an offering)
3-4

Calculating market share

§ Units:
If all companies sell 10 million units of a type of
product and Company A sells 2 million units, its
market share is 20%

§ Dollars:
If all sales of a type of product total $100 million
and Company A’s sales are $15 million, its
market share is 15%
3-5

Influences on consumer markets

1. Cultural considerations
§ Nation or region, subculture, class

2. Social connections
§ Family, friends, colleagues, aspirations

3. Personal factors
§ Lifestyle, motivation, perceptions/attitudes
3-6

Influences on business markets

1. Organizational connections
§ Role in and influence on buying process,
relations with competing suppliers

2. Organizational considerations
§ Company’s size, industry, share, growth,
competition, buying policies, finances,
buying cycle, derived demand
3-7

Using marketing research

§ Secondary research
• Data collected for another purpose
• Sources: government, industry groups,
other

§ Primary research
• Data collected for a specific situation
• Sources: surveys, ethnography, other
3-8

Analyzing markets and customers

§ Understand behavior, needs

§ Check demographics
§ Watch for changes
§ Take customers’ view
§ Look below the surface
§ Plan for research
4-1

Chapter 4:
Planning Segmentation, Targeting,
and Positioning
4-2

Applying market segmentation

§ Group customers according to similar

needs, habits, or attitudes that can be
addressed through marketing.

§ Useful if customers in a segment react

differently to marketing, vs. customers in
other segments.
4-3

Using segmentation, targeting, and

positioning
Segmentation
• Select the market
• Apply segmentation variables
• Assess, select segments for targeting

Targeting
• Select number, rank segments for entry
• Select segment coverage strategy

Positioning
• Select attributes for differentiation
• Apply positioning through marketing
4-4

Selecting the market to segment

§ Define the general market

§ Eliminate inappropriate markets/segments

• Geographically difficult to reach
• Insufficient purchasing power
• Ethical issues
• Environmental problems
4-5

Variables for consumer market

segmentation
Demographic Geographic

Age, gender, household size, Location (country, region, state,

family status, income, race, city, neighborhood, postal code),
occupation, religion, class, distance, climate
nationality

Psychographic Behavioral/Attitudinal

Lifestyle, activities, interests Benefits perceived/expected,

loyalty, usage occasion/rate, user
status, price sensitivity, product or
brand attitude
4-6

Variables for business market

segmentation
§ Demographic
Industry; business size/age; ownership

§ Geographic
Location; distance; climate

§ Behavioral/attitudinal
Purchasing patterns/process; user status;
benefits expected; supplier requirements…
4-7

Assessing segment attractiveness

Fit with
• Company resources
• Core competencies

Fit with
• Market factors
• Competitive factors
• Economic and technological factors
• Business environment factors

Identify
• Most promising segments
• Order of segment entry
4-8

Coverage strategies

§ Concentrated marketing
• Target only one segment

§ Undifferentiated marketing
• Target all segments with same strategy

§ Differentiated marketing
• Use a separate strategy to target each
segment
4-9

Positioning for competitive

advantage

§ Use meaningful differentiation

• Based on what customers value
• Conveys the brand’s value

§ Apply marketing leverage

• Positioning drives marketing
• Positioning reinforces differentiation
5-1

Chapter 5:
Planning Direction, Objectives, and
Marketing Support
5-2

Options for marketing plan direction

1. Growth

2. Maintenance

3. Retrenchment
5-3

Growth strategies

Market penetration Market development

Sell more of existing products in Sell existing products in new

existing markets/segments segments/markets

Product development Diversification

Sell new products in existing Sell new products in new

markets/segments markets
5-4

Maintenance strategies

§ Sustain current revenues/share

§ Wring short-term profits

§ Prepare for future growth

5-5

Retrenchment strategies

§ Exit markets, drop products

§ Downsize marketing, limit distribution

§ Close down in orderly fashion

5-6

Effective marketing plan objectives

§ Specific, time-defined, measurable

§ Realistic yet challenging
§ Consistent with mission and goals
§ Appropriate for environment,
opportunities, and threats
5-7

Types of marketing plan objectives

§ Marketing objectives
• To manage key relationships/activities

§ Financial objectives
• To attain certain financial results

§ Societal objectives
• To achieve social responsibility results
5-8

Sample objectives

§ Marketing
• Customer/channel relationships; market
share; brand awareness
§ Financial
• ROI; revenue/profit by product, channel;
break-even by product
§ Societal
• Greener/cleaner operations; charitable
activities; energy conservation
5-9

Planning marketing support

§ Customer service
• Satisfy customer needs
• Reinforce positioning, allocate resources

§ Internal marketing
• Focus employees on customers
• Inform and involve employees
• Improve employee performance,
satisfaction
5-10

Shaping the marketing mix

Exhibit source: Adapted from Tim Berry and Doug Wilson, On Target: The Book on Marketing Plans (Eugene, OR: Palo
Alto Software, 2001), 107.
6-1

Chapter 6:
Developing Product and
Brand Strategy
6-2

What can be marketed as a

product?

§ Tangible goods
§ Services
§ Places
§ Ideas
§ Organizations
§ People
6-3

Product and brand strategy

6-4

Features, benefits, and services

§ Features
• Enable product to perform its function

§ Benefits
• Need satisfaction that customers want

§ Related services
• Deliver benefits valued by customers
6-5

Quality and design

§ Quality
• How well a product satisfies customers
• Basic functionality is a given

§ Design
• Perform properly, repair easily
• Be aesthetically pleasing
6-6

Packaging and labeling

§ Packaging
• For convenience and product safety

§ Labeling
• To communicate contents, uses, warnings
6-7

Product life cycle

Introduction Growth

Decline Maturity
6-8

New product development process

1. Idea generation
2. Screening of ideas
3. Initial concept testing
4. Business analysis
5. Prototype design
6. Market testing
7. Commercialization
8. Monitoring reaction
6-9

Managing products

§ Product line
• Products in a line are related
• Line extension adds a product

§ Product mix
• Assortment of all lines offered
• Brand extension widens mix
6-10

Branding a product

§ Conveys an identity
§ Differentiates an offer
§ Uses words, designs, or symbols
§ May be legally protected
6-11

Pyramid of brand equity

Exhibit source: Adapted from Kevin L. Keller, Strategic Brand Management 2e (Upper Saddle River, NJ: Prentice Hall), 76.
7-1

Chapter 7:
Developing Channel and
Logistics Strategy
7-2

What is the value chain?

§ Series of interrelated, value-added

functions
§ Structure of organizations performing
these functions
§ Gets the right product to the right
markets at the right time, place, price
7-3

Major links in the value chain

7-4

Channel functions to be handled

§ Match volume, amount, offer to

customers’ needs
§ Share information
§ Contact, negotiate with customers
§ Transport and store products
7-5

Planning channel levels

§ More intermediaries = more levels

§ Zero-level = direct to customer

§ One-level = one type of intermediary

§ Each level must add value, get profit

7-6

Choosing channel members

§ Intensive distribution = many outlets

§ Selective distribution = fewer outlets

§ Exclusive distribution = fewest outlets

7-7

Internal influences on channel

strategy

§ Direction, goals, objectives

§ Resources and core competencies

§ Marketing activities

§ Need for control

7-8

External influences on channel

strategy

§ Customers and markets

§ Environmental factors

§ Competitors

§ Intermediary availability
7-9

Planning logistics

§ Manage flows through value chain

§ Make decisions about:

• Storage and inventory
• Order processing/fulfillment
• Transportation
8-1

Chapter 8:
Developing Pricing Strategy
8-2

Types of pricing

§ Fixed pricing
• Customers pay the price set by marketer

§ Dynamic pricing
• Prices vary from customer to customer or
situation to situation
8-3

How customers define value

The difference between:

§ total perceived benefits (features, quality,

service, performance, etc.)
and
§ total perceived price (purchase price,
repair costs, shipping costs, etc.)
8-4

How pricing affects demand

§ Elastic demand
• Small price change significantly increases
or decreases the amount demanded

§ Inelastic demand
• Price change does not significantly affect
the amount demanded
8-5

Planning value-based pricing

§ Start with customers’ perceptions of

value and price they will pay

§ Use target costing to allow for profit or

other objectives
8-6

Planning pricing objectives

§ Relate to financial, marketing, societal

objectives

§ Must be consistent with each other and

with the mission and direction
8-7

External influences on pricing

§ Customers
• Perceptions of value, behavior, attitudes
§ Competitors
• Alternatives available to customers
§ Channel members
• Channel profit considerations
§ Legal, regulatory, ethical concerns
• Decision consequences
8-8

Sample pricing in retail channel

$40
$35
$30
$25
$20
$15
$10
$5
$0
Producer Wholesaler Retailer
Price in dollars $20 $24 $36
Outbound movement in value chain
8-9

Internal influences on pricing

§ Break-even
• Level at which revenue covers costs

§ Marketing mix decisions

• Appropriate for product life cycle, context
8-10

Break-even analysis

Exhibit source: Tim Berry and Doug Wilson, On Target: The Book on Marketing Plans (Eugene, OR: Palo Alto Software,
2000), 163.
8-11

Options for adapting prices

§ Discounts and allowances

§ Bundling/unbundling

§ Product enhancement

§ Segment pricing
9-1

Chapter 9:
Developing Integrated Marketing
Communication Strategy
9-2

Applying integrated marketing

communication (IMC)

§ Coordinate message content/delivery

§ Ensure consistency of communications

§ Support the positioning and direction

9-3

Planning for IMC

Define
Plan
target
research
audience

Set
Select
objectives
IMC
and
tools
budget

Analyze
issues
9-4

Who will be targeted?

Exhibit source: Gary Armstrong and Philip Kotler, Marketing: An Introduction 7e (Upper Saddle River, NJ: Prentice Hall,
2005), 405.
9-5

IMC objectives and budget

§ Establish specific IMC objectives

• Identify targeted audience(s)
• Influence behavior, feelings, or attitudes
• Indicate timing

§ Develop the IMC budget

• Part of overall marketing budget
• Consider objectives, IMC tools, markets
targeted, competition, potential ROI
9-6

Issues in IMC planning

§ Legal/regulatory

§ Ethical

§ Cultural

§ Competitive
9-7

Advertising

Personal Sales
Selling Promotion
MAJOR
IMC
TOOLS

Direct Public
Marketing Relations
9-8

Planning advertising
Market scale
• Local, regional, national, global

Target audience characteristics

• Demographic, geographic, psychographic,
behavioral, media habits

Media choices
• Reach vs. frequency; radio, outdoor, print,
Internet, TV, direct mail, other

Message content
• Rational appeal or emotional appeal; design,
wording, format, graphics, sound, other
9-9

Planning sales promotion

§ Audiences
• Consumers, channel, salespeople

§ Objectives
• Build awareness, support IMC campaign
• Encourage trial/usage/repurchase
• Reinforce loyalty, defend against rivals
• Encourage speedy response
9-10

Planning public relations

§ Audiences
• Customers/prospects, employees,
channel members, government officials,
special interest groups, analysts, other

§ Objectives
• Understand public perceptions
• Enhance image, build awareness
• Communicate views and information
9-11

Planning personal selling

§ One-on-one attention

§ Apply the sales process

• Identify and qualify prospects
• Plan presales approach
• Make sales contact
• Handle objections, close the sale
• Follow up after the sale
10-1

Chapter 10:
Planning Performance Management
and Implementation Control
10-2

Forecasts

TOOLS FOR
Metrics MEASURING Budgets
PROGRESS

Schedules
10-3

Using forecasts
§ Estimate future sales and costs

§ Consider external and internal factors

§ Think about best-case, worst-case,

most likely scenario
10-4

Tools for forecasting

§ Causal analysis methods

• Regression analysis, econometric models

§ Time series methods

• Smoothing, decomposition

§ Judgmental tools
• Delphi method, sales force estimates,
executive opinion
10-5

Budgeting for marketing

§ Affordability budgeting

§ Percentage-of-sales budgeting

§ Competitive-parity budgeting

§ Objective-and-task budgeting
10-6

Scheduling marketing programs

§ List main tasks and activities

§ Assign starting/ending dates

§ Identify who is responsible for each

10-7

Why use marketing metrics?

§ Focus employees on key tasks

§ Establish performance expectations

that can be measured

§ Allow internal accountability, pride in

accomplishments
10-8

Sample marketing metrics

§ New customer acquisition

• Count new customers attracted within a
year, a quarter, a month

§ Profitability
• Measure gross or net margin per product
or brand for given period
10-9

Applying marketing metrics

§ Consider expected outcomes

§ Consider historical results

§ Consider competitive/industry results

§ Consider environmental factors

10-10

Controlling implementation

Annual plan control Profitability control

Check progress toward Check progress toward

marketing plan and profit-related objectives
program objectives

Productivity control Strategic control

Check progress toward Check effectiveness in

higher efficiency in managing marketing,
marketing activities relationships, ethics,
social responsibility
10-11

Preparing contingency plans

§ Consider significant, unexpected

changes and emergencies

§ Review and update regularly

§ Apply lessons learned to next plan

Presentation © 2005 Marian Burk Wood - all rights reserved

 PROJECT 1
INDIVIDUAL AACTIVITY

MAKE YOUR OWN MARKETING PLAN