Marketing ManagementMarketing Plan

Prepared by Kathleen Porter

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• A written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation and control of those activities

• An action documentNot the same as a business plan

• Requires a great deal of information from many different sources

• Should be well organized. A good marketing plan outline is:▫ Comprehensive▫ Flexible▫ Consistent▫ Logical

The Marketing Plan

Fulfills Five Purposes• 1. Explains both the present and future situations

of the organization• 2. Specifies expected outcomes (goals and

objectives)• 3. Describes the specific actions that are to take

place and assigns responsibility for each action• 4. Identifies the resources needed to carry out

the planned actions • 5. Permits the monitoring of each action and its

results so that controls may be implemented

Organizational Aspects of the Marketing PlanOrganizational Aspects of the Marketing Plan

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Top managers ask two questions:•Will the marketing plan achieve the

desired marketing, business unit, and corporate goals and objectives?

•Are there alternative uses of resources that would better meet the firm’s objectives?

Obstacles to Developing Marketing PlansObstacles to Developing Marketing Plans

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Marketing Plan

• The process of preparing the plan is more important than the document itself. . . .

• It makes the marketing team concentrate on the market, on the company’s objectives, and on the strategies and tactics appropriate to those objectives.

• It’s a mechanism for synchronizing action.

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• I. Executive SummarySynopsis of the overall marketing plan

Introduces major aspects of the marketing plan

• II. Situation AnalysisSummarizes information about 3 key environments:

Internal environmentCustomer environment

Firm’s external environment

Marketing Plan Structure

Situational Analysis: Internal Environment

Background Mission Offerings Current status Previous results Current resources Future directions Business Relationships Strengths and weaknesses

Situation Analysis:Customer Environment• Who are the Current and Potential

customers?• What do customers do with the

firm’s products?• Where do customers purchase the

firm’s products?• When do customers purchase the

firm’s products?• Why (and how) do customer

select the firm’s products?• Why do potential customers not

purchase the firm’s products?

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Situational Analysis: The Market•Understanding of the Overall Market

•Who are the users•Size and growth•What wants are being addressed•Volatility of demand/wants•History & future•Substitutes, areas for expansion

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Situation Analysis: External Macro-environment•Competition •Economic Trends•Legal/Regulatory Issues•Political Trends•Social/Lifestyle Trends•Technological Advancements

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The Situation Analysis Leads to the SWOT Analysis

•The SWOT Analysis identifies the key issues a firm must consider to successfully compete in the industry/market being investigated.

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• III. SWOT Analysis

•Analysis of the SWOT matrix•Developing Competitive Advantage

Marketing Plan Structure

PositivePositive NegativeNegative

ExternalExternal OpportunityOpportunity ThreatThreat

InternalInternal StrengthsStrengths WeaknessesWeaknesses

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Goals Follow From SWOT

•The SWOT highlights possibilities and the resources needed to pursue them.

•Developing Strategic Focus

Marketing Plan StructureMarketing Plan Structure

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IV. Marketing Goals and ObjectivesFormal statements of desired and expected outcomes of the marketing plan

GoalsBroad, simple statements of what is to be accomplished

ObjectivesMore specific performance targets

V. Marketing StrategyPrimary target market and marketing mixSecondary target market and marketing mix

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Marketing Strategy•Targeting

Determines which of the market segments you want to develop a marketing mix for

•PositioningIdentifies how you want the targeted market segment to think about your brand and offering relative to competitors’

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Marketing Strategy: Action Plans•Product Strategy

Creates form utility that meets needs and wants.

•Pricing StrategyCreates value perceptions that impact demand.

•Distribution Channel StrategyCreates time & place utility.

•Promotion StrategyCreates awareness & preference

Marketing Plan StructureMarketing Plan Structure

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VI.Marketing ImplementationWhat specific marketing activities will be undertaken?How will these activities be performed?When will these activities be performed?Who is responsible for the completion of these activities?How will the completion of planned activities be monitored?How much will these activities cost?

VII. Evaluation and ControlFormal marketing controlInformal marketing controlFinancial assessments

Tips for Using the Marketing Plan StructureTips for Using the Marketing Plan Structure

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•Plan ahead•Revise, then revise again•Be creative•Use common sense and judgment•Think ahead to implementation•Update regularly•Communicate to others•Format and don’t use sloppy language

Purposes and Significance of the Marketing PlanPurposes and Significance of the Marketing Plan

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•A good marketing plan will:Explain both the present and future situations of the organizationSpecify the outcomes that are expectedDescribe the specific actions that are to take placeIdentify the resources that will be neededPermit the monitoring of each action and its results

•Communicating the strategy to top executives is paramount.