Marketing Planning

Marketing 300Mary CelsiThe Marketing PlanA marketing plan includes everything from understanding your target market and your competitive position in that market, to your tactics to reach your market and differentiate yourself from your competition to make a sale.

Marketing PlanningFor a large company, the marketing plan may be longA small business may have a plan as short as 10 or so pagesMarketing plans are crossfunctional: you cant do a marketing plan without involving all the relevant players across the company, e.g. manufacturing, accounting, finance, etc.Benefits of the PlanFocus: A plan gives employees something to rally behind Planning for successIts a blueprint for success for the yearEven if events during the year require some flexibility, without any kind of a plan, there is little or no direction Big Picture thinking: In the busy workday world, its easy to lose track of the big picture if there is no periodic reflection4Each YearThe plan should be revised and updated yearlyThe plan from the previous year should be reviewed to assess where goals were reached and not reached[One section of the plan may include a longer-term horizon such as 2-4 years I didnt include this in your mini-plan, but it makes sense to look ahead]Your AssignmentIs a mini-planNot a fully realized plan, but boiled down to the essential ideas and also without some of the more challenging items (e.g. financial forecasting and costing) as youre just starting to learn this processShould pull together what youve learned in this classThe AssignmentLets start with the mini-plan form.

Consumer/Target Market AnalysisWho benefits from buying the product?Think of the segmentation methods we talked about in class. Are one or more of them relevant? For example, how would you describe your target market segment(s) demographically?How do they benefit? What are the benefits for the consumer of doing business with your campus QSR?Who decides to make the purchase?In some cases, someone in the household makes a decision for the entire household, or a parent makes decisions for children. Here, consumers buy for themselves.

DifferentiationWhat will be your point or points of differentiation?Why should customers eat here rather than elsewhere? Why should customers eat here rather than bring their own lunch?Environmental FactorsConsumer Social FactorsEconomic FactorsTechnological FactorsCompetitive FactorsLegal/Regulatory FactorsConsumer/Social FactorsWhat social or psychological will affect potential consumers decisions to patronize your QSR?You are looking broadly at consumer and social trends in the environment you may be thinking about consumer and social trends that affect college students or eating out generallyExamples:Students and workers often have limited time to plan to eat while at school and workStudents and workers like to eat with othersYoung people and others desire to eat healthy if they can afford it. (if you are offering something healthy.)Think of whatever consumer trends out there that are applicable to the specific benefits and differentiating factors offered by your QSR

Economic FactorsWhat is going on generally in the economy that affects CSULB students and staff that could impact eating at your QSR?Unemployment rate??Increasing expenses?? (e.g. gas, tuition)

Again, these are just examples. You want to really think about what is going on broadly in the economy that could affect your business and your business strategies (e.g. pricing)TechnologyAny impacts of technology on the food business or on your particular marketplace?Examples:--[Food preparation technology]--Service innovation technology.hmmmmCompetitive FactorsWhat other choices do students and staff have for eating on campus? How does the available competition affect your marketing plan?Legal/Regulatory ChallengesLegal and regulatory challenges that affect the food business e.g. food safety regulationsAlso, alcohol regulations [if you intend to serve alcohol]Your name for your business does it need to be trademarked? Any concern the name will already be registered?Anything else?ResearchSecondary research QSR trendsCollege student/younger generation food preferencesChanging food preferences generallyPrimary researchFocus groups, surveys, experiments to see what your market wantsWhat kind of research would you do to help you make marketplace decisions?Products and ServicesRemember the three-level modelWhat would be your core product(s)? [Remember, this goes back to benefits]Tangibles? (Store design, employee dress, menu appearance, packaging, etc.)Augmented product? [Anything that is ancillary to the core product but may differentiate your product from competition]

PricingGenerally, how will you price?Will you price higher than the market, at the market, below the market, or perhaps use price lining? [These choices should depend on other choices you have made in the marketing plan]PromotionAdvertising?Hmmm, how about indoor advertising? But seriously, what media and vehicles might be appropriate to your audience and message?Media newspapers, magazines, flyers, posters, social media?

Sales PromotionsHmmm.CouponsSamplesContestsBuy one, get one freeFrequent buyer cardsAnything you can think of..Public RelationsWhat free coverage can you get for the opening of your business?Personal SellingThe traditional paid salesman is not relevant to your businessButare there other people in your business that might engage in some elements of personal selling? Explain how that might work.Place/Distribution StrategyYou are place constrained since this QSR is next to the CBA buildingBut, is there any other way that you might distribute your product or service?You dont have to distribute your product in any other way, but I want you to think about if you want to do this or not, and why.Marketing BudgetThis is the $$ just for marketing your product, not for the entire business start-up (e.g. for sampling, advertising, promotions.)Guestimate your possible revenue for the first yearRule of thumb: Spend 6-15% of your first years revenue on marketing expenses (some businesses argue for 1.5 times 15% for the first year Im not convinced you would need to spend this for this particular business, but its something to think about)Who is Responsible for Executing this Plan?For a larger business, there may be several parties who are responsibleFor this business, its likely going to be the owner you!OK, Your turn!Now, its your turn to come up with a plan.Try to relax, be engaged, but have a good time as well.This is worth 10 points, so I suggest you give it more time and effort than the other in-class group assignments