The Marketing Plan

A Marketing Plan

A marketing plan is a written document

containing the guidelines for the business

center’s marketing programs and allocations

over the planning period.

Industry Analysis

To provide sufficient knowledge of the environment.

With the help of secondary sources as well as personal interview and questionnaire etc.

Competitors Analysis

Current strategy of the primary competitor.

By using public info as well as newspaper, websites, catalogs, promotions interviews etc.

Marketing Research

Defining the Purpose of Objective Gathering Data from Secondary Sources Gathering Data from Primary Sources Analyzing and Interpreting the Result

STEPS IN THE PLANNING PROCESS1. Update historical data

2. Collect current situation data

3. Data analysis

4. Develop objectives, strategies, programs

5. Develop financial documents

6. Negotiate final plan

7. Measure progress toward objectives

8. Audit

COMPONENTS

1.The Executive Summary

2. Situation Analysis

- External Analysis

- Competitor’s Definition

- Competitor’s Analysis

- Customer’s Analysis

- Internal Analysis

3. Marketing Goals and Objectives

4. Marketing Strategy

5. Implementation

6. Budget

7. Evaluation & Control

FREQUENT MISTAKES IN THE PLANNING PROCESS1. Speed of the process

2. Amount of data collected

3. Who does the planning?

4. Structure

5. Length of the plan

6. Frequency of planning

7. Insufficient senior management leadership

Understanding the marketing plan Establish the strategy that how the

entrepreneur will compete and assign cost to these strategies.

Where have we been? Where do we want to go? How do we got there?

Characteristics of Marketing plan Should provide strategy for accomplishing

goals. Should be based on facts. Implementation should be well structured. Should be continuity for each year. Should be simple and short. Plan should be flexible. Should specify performance criteria.

Factors Affecting Marketing Plan Financial Resources Management Team Suppliers Company Mission

Segmentation

The division of a market into different homogeneous groups of consumers is known as market segmentation.

A market segment should be:

measurable accessible by communication and distribution

channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable

Consumer Market Segmentation A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:

Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.

Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.

Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.

Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

Business Market Segmentation While many of the consumer market

segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:

Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.

Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.

Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.

Targeting

Target marketing tailors a marketing mix for one or more segments identified by market segmentation. Target marketing contrasts with mass marketing, which offers a single product to the entire market.

Two important factors to consider when selecting a target market segment are the attractiveness of the segment and the fit between the segment and the firm's objectives, resources, and capabilities.

Attractiveness of a Market Segment The following are some examples of aspects

that should be considered when evaluating the attractiveness of a market segment:

Size of the segment (number of customers and/or number of units)

Growth rate of the segment Competition in the segment Brand loyalty of existing customers in the

segment Attainable market share given promotional

budget and competitors' expenditures

Target Market Strategies There are several different target-market strategies

that may be followed. Targeting strategies usually can be categorized as one of the following:

Single-segment strategy - also known as a concentrated strategy. One market segment (not the entire market) is served with one marketing mix. A single-segment approach often is the strategy of choice for smaller companies with limited resources.

Selective specialization- this is a multiple-segment strategy, also known as a differentiated strategy. Different marketing mixes are offered to different segments. The product itself may or may not be different - in many cases only the promotional message or distribution channels vary.

Contd. Product specialization- the firm specializes in a

particular product and tailors it to different market segments.

Market specialization- the firm specializes in serving a particular market segment and offers that segment an array of different products.

Full market coverage - the firm attempts to serve the entire market. This coverage can be achieved by means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.

SWOT

Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

patents strong brand names good reputation among customers exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

shifts in consumer tastes away from the firm's products

emergence of substitute products new regulations increased trade barriers

Establishing Goals & Objectives

Statements of level of performance desired

by new venture.

Defining marketing strategy & Action Programs

Specific activities outlined to meet the venture’s business plan goals and objectives.

Product

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services

Price

Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination

Distribution (Place) Decisions Distribution is about getting the products to the customer.

Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive

distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget