© 2013 Cengage Learning. All Rights Reserved © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

17 Marketing Plans © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

Marketing Framework

Marketing Plan Overview

Situational Analysis An analysis of the current situation facing the company

5 Cs: Company Example Company questions Proposed answers What are we known for? A central point to coordinate receipt and dispersal of scholarships, to enhance college attendance and graduation rates. Who do we want to become? A brand as well-known as Unicef or World Wildlife Fund so we would be the 1st NPO a donor would think of when wishing to spend their largesse.

5 Cs: Customer Example Customer questions Proposed answers Demographics 30-45 to 60-65 years Psychographics Care about higher education Buying behavior Give $20 or $50 once a year Customer satisfaction? Never measured, assumed ok if repeated Do we have a loyalty program? No, but give a calendar if receive $100+ Why don’t non-donors donate? They think they have to give large amounts Channel for donors? Send check by mail Are our buyers price sensitive? Let donors know that giving only a little is ok, and give more frequently Changes to expect? Should grown as awareness grows Begin with secondary research, then primary research

5 Cs: Context Example Context questions Proposed answers Economy Concerned with economy Politics Unknown; never tried a different appeal to Democrats and Republicans Legal N/a Technology Move more giving online, perhaps online videos of students’ testimonials Societal Emphasize the many benefits of an educated populace

5 Cs: Collaborators Example Collaborator questions Proposed answers Good relations with supply chain? Fine so far, perhaps try to partner with some professional associations? Good relations with distribution channel members? Perhaps post ads on professional sites, Linked-In, etc., to broaden appeal

5 Cs: Competitors Example Competitor questions Proposed answers Who are they? Any donation behavior: medical and health, museums & the arts, etc. Competitors’ strengths? Some have very good brand names

Marketing Plan Overview

Segmentation Example Segmentation questions Proposed answers Current customers Early 20s, some stay connected to friends, some click through and buy trips Non-users 40s and older Ideal customers Mid 20+ with good disposable income Identify segmentation variables that are relevant to the product

Targeting Example Find targets that Fit well with company Targeting questions Proposed answers Estimate size and profitability Friendship connectors bring in no direct $ and only minimal from WOM; buyers are worth $625 a year (they take one trip every other year, approx. $1350) Corporate fit Maybe aim a little older, maybe we should stop trying so hard to be hip (we may be turning off older crowd) Rank desirability of segments 25-35—better disposable income than younger, and more time than 35-50 crowd Find targets that Fit well with company Are profitable Are actionable

Positioning Example Positioning is executed via the 4Ps Positioning questions Proposed answers High quality and high price? or Low quality and low price? High quality, prices are high but we say they're “good value” Compare to competitors? No one is exclusive Distribution mass/exclusive? Promo heavy/light? To succeed, need some scale, which suggests wide availability/presence and mass promo if cheap (e-referral program) Positioning is executed via the 4Ps Write a positioning statement

Marketing Plan Overview

Product Example Product questions Proposed answers Are we high-end or basic? High-end, innovative What are our primary features? Convenient, trusted, good product What are our brand associations? Few due to minimal awareness as yet Where are we in product life cycle? Brand new

Pricing Example Price questions Proposed answers What are our customers’ price sensitivities? Minimal, what is being digitized is valued, and the time-savings would be great Offer occasional price discounts? No reason, benefits outweigh high price Beneficial to price differently from competitors? No competitors yet, but keep price high to gain margin and spend on R&D

Promotion Example Promotional questions Proposed answers Our marketing communications (advertising) goals? Search engines, get into Sharper Image How to measure ad effectiveness? Click-thrus How to budget across IMC? Aim for BusinessWeek, Forbes

Place Example Place questions Proposed answers Will we be extensive or selective? Selective currently, one office Use more pull or push? Pull Any conflicts to resolve? Still forging relationships  

Market Plan Considerations Establish a time line for actions Establish cost estimates Make sure that your 4Ps are consistent with one another Make sure that your 4Ps are what your target desires

Appendices

Marketing Plans Better marketing plans Have more refined detail Have precise estimates Shed light on weaknesses of the plan Are more actionable Allow for better forecasting, understanding of costs, tighter ops delivery, etc.

Managerial Recap When completing a marketing plan, remember the 5Cs, STP and the 4Ps The marketing plan reminds the company of its goals and serves as a guide to achieve those goals Marketing strategy/planning is iterative

Managerial Recap Marketing plans are works in progress As situations change, plans change More detailed plans are better Create a readable plan and market it