1. Marketing Principles
Marketing Plan
Prepared by Kathleen Porter

2. The Marketing Plan Not the same as a business plan
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 document
Not 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 provides a detailed formulation of the actions necessary to carry out the marketing program. Think of the marketing plan as an action document—it is the handbook for marketing implementation, evaluation, and control.
1.A marketing plan is not the same as a business plan. Business plans encompass other issues such as business organization and ownership; operations, financial strategy, HR and risk management.
2.A good marketing plan requires a great deal of information from many different sources. This requires looking at the marketing plan holistically rather than as a collection of related elements.
The Marketing Plan
Marketing Plan Structure
1. There are many ways to structure a marketing plan.
2. A good marketing plan outline is:
a) comprehensive: to ensure that there are no omissions of important information.
b) flexible: to ensure the plan will fit the unique needs of your situation.
c) consistent: to ensure that the marketing plan and the planning process will be understood by executives and employees outside of marketing.
d) logical: to ensure that the plan can be sold to top managers.

3. Fulfills Five Purposes
Explains both the present and future situations of the organization
Specifies expected outcomes (goals and objectives
Describes the specific actions that are to take place and assigns responsibility for each action
Identifies the resources needed to carry out the planned actions
Permits the monitoring of each action and its results so that controls may be implemented
Marketing Plans
A marketing plan is a report which describes how a given property (be it a brand, a product, or a service) is to be marketed. It covers all aspects of marketing for this object, including (but not limited to) advertising, promotions, and sales.
Marketing plans are meant to provide marketing goals as well a framework in which they can be achieved. Because of this, they should contain not only a marketing strategy, but the context for that strategy.  There are a variety of reasons why one would undertake the writing of a marketing plan.
Although any sort of property can be marketed, marketing plans do vary depending on what industry is being targeted and what, in particular, is being marketed.
Think of the marketing plan as the handbook for marketing implementation, evaluation, and control.
Fulfills five purposes:
explains both the present and future situations of the organization
specifies expected outcomes (goals and objectives
describes the specific actions that are to take place and assigns responsibility for each action
identifies the resources needed to carry out the planned actions
permits the monitoring of each action and its results so that controls may be implemented
Crystallizes and propels mission, vision
Coordinates branding/messaging
Educates, increases visibility
A framework for decisions
Benchmark performance, justify budget
Strategy for funding

4. 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.
Gives a clear, actionable roadmap to strategically promote your organization

5. Marketing Plan Structure
I. Executive Summary
Synopsis of the overall marketing plan
Introduces major aspects of the marketing plan
II. Situation Analysis
Summarizes information about 3 key environments:
Internal environment
Customer environment
Firm’s external environment
a) The executive summary is a synopsis of the overall marketing plan, with an outline that conveys the main thrust of the marketing strategy and its execution.
b) Individuals both within and outside of the organization may read the executive summary for reasons other than marketing planning or implementation.
c) The executive summary should always be the last element to be written because it is easier (and more meaningful) to write after the entire marketing plan has been developed.
4.Situation Analysis
a)The situation analysis summarizes all pertinent information obtained about three key environments: the internal environment, the customer environment, and the firm’s external environment.
b) A clear and comprehensive situation analysis is one of the most
difficult parts of developing a marketing plan.
Know who you are selling to (market analysis, segmentation, prioritizing targets)
Know what is important to targeted customers (customer analysis)
Make sure you are distinctively different from your competition in areas of importance to targeted segments (competitive analysis, reallocation of resources if necessary, positioning, market intelligence)
Focus attention of everyone on delivering what the customer wants (management of people, monitoring and control).
Constant monitoring of changes in the market (market intelligence, market analysis, internal feedback system)
The most fundamental marketing concept is treating customers like you are truly interested in them. That means making sure you are meeting needs that customers perceive as important. Meeting needs is the heartland of every marketing program.
A useful tool in assessing the marketplace is SWOT. Assessing the opportunities and threats and how the business can capitalize on them or avoid them using the firm’s strengths weaknesses

6. Situational Analysis: Internal Environment
Background
Mission
Offerings
Current status
Previous results
Current resources
Future directions
Business Relationships
Strengths and weaknesses
INTERNAL ENVIRONMENT ANALYSIS
General Trends
SBU performance
Market-based Accomplishments and Failures
Skills gained or lost
Future Considerations
Anticipated issues
Mission Statement:  This is basically the overview of your marketing game plan. Your Mission Statement should provide a “big picture” view of what in brief, will be accomplished through following your marketing strategy. 
Situational Analysis: Knowing the climate of the market your product is in is the most important part of developing an effective marketing strategy. In this section, you should look at and analyze data pertaining to your product or brand such as what kind of competition it is experiencing, who is buying it, and how people perceive it. The conclusions you make in this section should feed into what type of marketing strategy you choose to adopt. If retirees are the ones buying your product, but single mothers respond positively to it in test groups, you might conclude that this segment of the population is worth marketing to.

7. 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?
November 16, 2009 Campaign Spotlight Godiva Rides in a New Direction By STUART ELLIOTT
Still, Godiva is not completely unmindful of the wrenching changes in shopper behavior wrought by the economy. The company has brought out a lower-priced line named Godiva Gems, intended to help make consumers perceive the premium brand as more affordable or accessible.
Godiva Gems are packages of smaller pieces of chocolates, individually wrapped so they can be shared. The new line is priced at $4.99 and $9.99 per package and is being sold in Godiva stores, newsstands, duty-free shops and even — in a first for the brand — supermarkets like Publix, Safeway and Wegmans.
“The idea is to appeal to consumers in different places and times who want a little piece of chocolate,” Ms. Kien Kotcher says. “You can have your own golden moment at home, by yourself.”
Godiva Gems is, so far, not being featured in the new campaign; it is promoted with ads in stores.
Chocolate Confectionery - US - July 2008 This report is supplied in accordance with Mintel's terms and conditions. © Mintel International Group Limited Interest in premium remains strong but it may be fading
Premium chocolate is defined as chocolate costing $8/lb ($0.50 per ounce) or more, that is of perceptibly higher quality than “mainstream” or conventional chocolate, and that is positioned as being a specialty product, either by its packaging, its placement in stores, or through some other means. Lindt, Joseph Schmidt, and Hershey’s Cacao Reserve are examples of premium products sold through mainstream channels.
Premium chocolate has driven interest in the mature chocolate market since 2002, and it continues to be a strong force, even though premium sales through mainstream channels control only about 15% of total FDMx chocolate sales.
It is through the non-traditional channels that premium chocolate has gained the most: The products are available not only through specialty chocolate boutiques (at the high end), and mass merchandisers and club stores (at the low end), but through all channels in between and through non-traditional retailers where the presence of food products is not the norm. Consumers can, for example, find premium chocolate products in department stores, bookstores, home stores, and even pet superstores.
The presence of premium chocolate in such a wide range of outlets, and the range of price points for premium, starting with entry-level, or mass-premium products at about $8/lb and moving through to super-premium levels (at $32/lb or more), has also helped grow that segment of the industry.
The “chocolate connoisseur” can find extremely upscale products—topped with gold leaf or filled with exotic ingredients—while the curious entry-level premium chocolate buyer can try better-quality chocolate at a slightly higher price than mainstream products.
The same may not be said of mainstream or traditional chocolate, which has greater price sensitivity: consumers expect to pay a lower price for mainstream chocolate depending on where they buy it. On the other hand, they will pay more for premium and will pay a lot more for super premium.

8. 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
Book 'Em Nov 14, Robert Klara
By all accounts, Black Friday (a mere 11 days hence) will usher in tidings of comfort and joy for the likes of Kindle, Sony Reader, Nook and iPad. Sure, you’ve heard tech prognostications aplenty in the past when it comes to e-readers, but the breakout seems to be upon us. This time last year, 3.7 million people were reading e-books, per Forrester; now, it’s well over 10 million.
An estimated 4 million U.S. homes have an e-book reader such as Amazon's Kindle or Barnes & Noble's Nook, according to Forrester Research, which predicts sales of more than 29 million devices by 2015.
In a Harris poll conducted in August, 8% say they have an e-reader; 12% are likely to buy one in the next six months. But 80% say they're not likely to do so.
With pickings like that, it’s no surprise that brands are cranking up the marketing efforts early. Just-released Amazon ads show a grandmother buying a Kindle for her grandson. Sony has announced a partnership with Martha Stewart just in time for the holiday rush. And Barnes & Noble is hoping its in-store Nook boutiques (“our most amazing marketing vehicle,” says BN.com president Jamie Iannone) will deliver sales. “All the forces are lining up to create a healthy selling season,” says Paul Verna, senior analyst at eMarketer. “It would be hard to stop it.” Here are snapshots of the four major e-reader players heading into the holiday retail season.
Michael Norris, an analyst with Simba Information, a market research firm, also questions if a tipping point has been reached. He sees "gradual, uninterrupted growth in e-books, but tipping point implies there will be something overnight which will instantly change the character of the publishing business. Thousands of new consumers are showing up in the e-book 'yes' column every day, but on the other hand, there are still over 120 million people who buy print books."
When people think of Godiva, the words that come to mind first are “WOW,” “LUXURY” and “EXPENSIVE.” Because of the ailing economy, consumers were more likely to give up things that they felt were luxuries and, as a result, Godiva’s sales were soft. Through various exercises and assignments members completed, the community brought to life the changes in behavior such as shopping habits, gifting patterns and “self-treating” in the midst of the recession. From this work, it was clear there were two key themes at play that were changing how members were interacting with the brand-accessibility and affordability.
Accessibility: While members love eating Godiva, they were reducing their visits to the mall, where the majority of Godiva Boutiques are located. At the same time, competitors were making premium chocolate available in more locations where consumers shopped often—e.g., Grocery and Drug Stores. This allowed members to self-treat with other premium chocolate brands more often.
Affordability: Members were budgeting more than ever before and therefore seeking premium chocolate at a value. The majority of Godiva consumers gift the signature Godiva Gold Ballotin for “Special” Occasions to people they have an intimate relationship with (Valentine’s Day, Birthdays, etc.)—the Gold Box communicates that they spent money on the recipient because they are worth it. However, members were also starting to seek more affordable premium chocolate to gift to people they were not close with, but still wanted to impress (e.g., Mail Carriers, Teachers, and Co-workers). The members helped Godiva uncover this “Casual Gifting” behavior that was a gap in their portfolio, especially in the accessible channels where they were not participating.

9. Situation Analysis: External Macro-environment
Competition
Economic Trends
Legal/Regulatory Issues
Political Trends
Social/Lifestyle Trends
Technological Advancements
It's a transformation, says Peter Osnos, founder of PublicAffairs Books, "in the same way that people moved from silent pictures to talking pictures to movie theaters to television to television-on-demand. We are adapting to the notion that we can choose where, when and how we read books.“
More bibliophiles get on the same page with digital readers By Bob Minzesheimer, USA TODAY Updated 10/20/ :28 PM
Fewer trips to the bookstore
•In Roanoke, Va., Jones, 58, a legal secretary, says her iPod with a Kindle app is "so much easier to carry than a regular book."
After downloading a free e-book, Naomi Novik's His Majesty's Dragon, Jones bought three more e-books in the alternate-reality series. Next on her reading list: free e-books of classics she never got to, including Uncle Tom's Cabin.
•In Cary, N.C., Julie Powsner, 47, a saleswoman, says the Kindle app on her iPhone changed her reading habits, which include finally reading the Twilight series "to see what all the fuss was about."
She borrowed a copy of the first book, bought a print version of the second, and downloaded the last two books: "They were less expensive than the hard copy I purchased, which was a great benefit. I also didn't have to run to the store to get it."
•In Pearl River, N.Y., Kathy Miscioscio, 58, a marketing consultant, loves her local library's digital download center, which saves trips to and from the library.
She's reading more and faster because "e-books from the library cannot be renewed, and they are deactivated in 21 days."
•In Houston, Gregory Williams, 47, a hospital administrator, always has been an avid reader — three books a week — but is enjoying it more with his iPad.
And since he and his wife recently "downsized," he says, "the e-books have really helped with storage. All the books that I care to keep are in one little folder. It's awesome."

10. 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.

11. Marketing Plan Structure
III. SWOT Analysis
Analysis of the SWOT matrix
Developing Competitive Advantage
Positive
Negative
External
Opportunity
Threat
Internal
Strengths
Weaknesses
SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis
a)SWOT analysis focuses on the internal factors (strengths and weaknesses) and external factors (opportunities and threats)—derived from the situation analysis in the preceding section—that give the firm certain advantages and disadvantages in satisfying the needs of its target market(s).
b) Strengths and weaknesses are internal issues unique to the firm conducting the analysis.
c) Opportunities and threats are external issues that exist independently of the firm conducting the analysis. A common mistake is to list the firm's strategic alternatives as opportunities.
d) Beyond the Pages 2.2 discusses how Dell has shifted its strategic focus to remain competitive in the personal computer industry.
Matching and Converting
Strength—Opportunity Links
Threat—Opportunity Conversions
Weaknesses that must be Overcome

12. Marketing Strategy Targeting Positioning
Determines which of the market segments you want to develop a marketing mix for
Positioning
Identifies how you want the targeted market segment to think about your brand and offering relative to competitors’
Amazon Kindle [$139]   - Units Sold in 2010*: Estimated at 5 million - Positioning: First to market and now at a lower price, the Kindle may be losing market share (Credit Suisse sees a slip to 35 percent by 2015 from this year’s 72 percent). But maybe the warm-and-fuzzy holiday ads will help. - The CEO says: “This holiday season we’ll have the best prices, the biggest selection, the highest in-stock and the fastest delivery in our history,” said Jeff Bezos in an October statement. - Analyst Prediction: “Apple poses a huge threat to the Kindle, which has taken a number of steps, including cutting its price to stay competitive. But the good news is that the market’s big enough for both to do quite well.” —Paul Carton, director of research, ChangeWave
Sony Reader [$149]        - Units Sold in 2010†: Approx. 1.5 million - Positioning: Sony cut its prices in July and is building what it calls  “book club community” tied in with Martha Stewart’s The Martha Blog. Stewart is “a major tastemaker and media personality” who will “showcase the benefits of the Reader,” says a rep. - The CEO says: “The burgeoning e-book market is a significant business opportunity. We have launched a broad lineup of Reader digital books that…contain features consumers want, at prices they can afford.” —Howard Stringer from 2010 Annual Report - Analyst Prediction: “While Amazon’s focused on cost, Sony will focus on differentiation. They still have a bright future.” —Dmitriy Molchanov, Yankee Group
Barnes & Noble’s Nook [$249]         - Units Sold in 2010††: “Well over 1 million” Nooks sold, CEO William Lynch announced on Oct Positioning: Making its debut in October, the Nook Color is a hybrid between the traditional e-reader and a tablet—though some grumble the LCD is harder to read than the black-and-white E Ink screen. Still, the Nook Color undercuts the iPad by $250, and B&N has landed the device at Best Buy and Walmart in hopes of scoring bigger holiday sales. - The prez says: “This is going to be the hot gift of the year. Folks are not seeing any other device like this. I’m extremely optimistic.” —Jamie Iannone, president, BN.com - Analyst Prediction: “The Nook Color is a bold move,” says Gartner analyst Allen Weiner, “because it’s saying that reading goes beyond just books.”
Apple iPad [$499]        - Units Sold in 2010**: 7.5 million - Positioning: As of this past summer, 63 percent of potential e-reader buyers had their hearts and wallets set on Apple’s iPad, according to a survey by ChangeWave. - The CEO says: With the iPad, Steve Jobs told analysts during a rare call in October, “I’m convinced we’ve got a tiger by the tail here.” - Analyst Prediction: “There’s a lot of excitement around the iPad for the holidays and a lot of momentum behind it. We’ll likely see a great fourth quarter for Apple because they get tremendous store traffic.” —Ross Rubin, executive director of industry analysis, NPD’s Consumer Technology Division

13. Marketing Strategy: Action Plans
Product Strategy
Creates form utility that meets needs and wants.
Pricing Strategy
Creates value perceptions that impact demand.
Distribution Channel Strategy
Creates time & place utility.
Promotion Strategy
Creates awareness & preference
Godiva Chocolatier, known for over 80 years as the leader in premium chocolate, uses Godiva Chocolate Talk, their private, invitation-only community created with their partner Communispace, to listen to the changing attitudes and behaviors of its customers. They gather feedback about their members' lifestyles on a daily basis, helping Godiva develop compelling new products and programs that enhance the Godiva experience. In addition, the member-to-member conversations in the community provide Godiva with a unique way to learn how their chocolate fits into members' lives. By listening to their customers' mindset during the tumultuous economic environment of 2009, they learned that they needed to develop a product line that could deliver on affordability, accessibility and year-round relevance -- evolve beyond Formal Gifting. Godiva was able to take these foundational insights and develop a new product line that would mark a ground-breaking moment for Godiva.
The "ah-ha" came in the form of small, individually wrapped Godiva chocolates, aptly named Gems. By wrapping Godiva chocolates individually, Godiva could now tap into a common behavior in the category -- everyday sharing. Importantly, Godiva then took the bold move of putting these individually wrapped chocolates in the Channels where consumers habitually buy them most often -- Grocery and Drug Stores. And because Godiva Gems are more affordable, they allow consumers to not only "self-treat" daily, but also "casually" gift to people. With the community validating their ideas about how to meet consumers' needs, Godiva had the confidence to move ahead. The Godiva Gems platform was launched globally in September 2009 (and for the first time ever in Grocery and Drug Stores). It would turn out to be the single biggest global launch in the history of the brand. Godiva Gems has become a significant growth engine for the brand globally. Sales to date are $35 million and are projected to become 10% of Godiva's worldwide sales in its 1st year. In North America, Godiva's Wholesale business is up +42% YTD June 2010, driven primarily by their new distribution in Grocery and Drug Stores.

14. Marketing Plan Structure
Marketing Implementation
What 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?
Evaluation and Control
Formal marketing control
Informal marketing control
Financial assessments
Marketing Implementation
a) The implementation section of the marketing plan describes how the marketing program will be executed. This section also answers several questions:
1)What specific marketing activities will be undertaken?
2)How will these activities be performed?
3)When will these activities be performed?
4)Who is responsible for the completion of these activities?
5)How will the completion of planned activities be monitored?
6)How much will these activities cost?
b) Without a good plan for implementation, the success of the marketing strategy is seriously jeopardized. For this reason, the implementation phase of the marketing plan is just as important as the marketing strategy phase.
Evaluation and Control
a) This section of the marketing plan details how the results of the marketing program will be evaluated and controlled.
b) Marketing control involves establishing performance standards, assessing actual performance by comparing it with these standards, and taking corrective action if necessary to reduce discrepancies between desired and actual performance.
c) The financial assessment of the marketing plan is also an important component of evaluation and control. Estimates of costs, sales, and revenues determine financial projections.
d) A marketing audit—a systematic examination of the firm's marketing objectives, strategy, and performance—can be used to pinpoint potential causes for discrepancies.

15. Purposes and Significance of the Marketing Plan
A good marketing plan will:
Explain both the present and future situations of the organization
Specify the outcomes that are expected
Describe the specific actions that are to take place
Identify the resources that will be needed
Permit the monitoring of each action and its results
Communicating the strategy to top executives is paramount.
D. Purposes and Significance of the Marketing Plan
1. A good marketing plan will fulfill five purposes in detail:
a) It explains both the present and future situations of the
organization. This includes the situation and SWOT analyses and
the firm's past performance.
b) It specifies the expected outcomes (goals and objectives) so that
the organization can anticipate its situation at the end of the
planning period.
c) It describes the specific actions that are to take place so that the
responsibility for each action can be assigned and implemented.
d) It identifies the resources that will be needed to carry out the
planned actions.
e) It permits the monitoring of each action and its results so that
controls may be implemented. Feedback from monitoring and
control provides information to start the planning cycle again in the
next time frame.
2. These five purposes are very important to various persons in the firm. The
most pressing concern for success, however, may lie in the fourth purpose.
E.Organizational Aspects of the Marketing Plan
1. In many organizations, the marketing manager, brand manager, or product
manager writes the marketing plan.
2. The authority to approve the marketing plan is typically vested in upper-
level executives. These top managers ask:
a)Will the proposed marketing plan achieve the desired marketing,
business unit, and corporate goals and objectives?
b) Are there alternative uses of resources that would better meet
corporate or business unit objectives than the submitted marketing
plan?
3. In most cases, final approval of the marketing plan lies with the president,
chairman, or CEO of the organization.