Appendix A © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing an Effective Marketing Plan 1

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Components of a Business Plan ▮ Marketing plan - Detailed description of the resources and actions needed to achieve stated marketing objectives ▮ Strategic planning - Process of anticipating events and market conditions and deciding how a firm can best achieve its organizational objectives 2

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Components of a Business Plan ▮ Executive summary ▮ Competitive analysis ▮ Mission statement ▮ Series of component plans Marketing plan Financing plan Production plan Facilities plan Human resources plan 3

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Figure A.1 - Outline of a Business Plan 4

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Creating a Marketing Plan ▮ To obtain financing ▮ Provide direction for the firm’s overall business ▮ Support the development of long- and short-term organizational objectives ▮ Guide employees ▮ Serve as a standard against which the firm’s progress can be measured 5

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Formulating an Overall Marketing Strategy ▮ Tools used in marketing plan Business portfolio analysis BCG matrix SWOT analysis Porter’s Five Forces model ▮ Spreadsheet analysis - Grid that organizes numerical information in a standardized, easily understood format 6

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Figure A.2 - How Spreadsheet Analysis Works 7

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Formulating an Overall Marketing Strategy ▮ Elements of a marketing strategy: Identifying the target market Studying the marketing environment Creating a marketing mix 8

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Formulating an Overall Marketing Strategy ▮ Optimal marketing mix based on: Product strategy Distribution strategy Promotional strategy Pricing strategy 9

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan The Executive Summary, Competitive Analysis, and Mission Statement ▮ Executive summary - Answers the who, what, when, where, how, and why questions for the business ▮ Competitive analysis - Focuses on the environment in which the marketing plan is to be implemented ▮ Mission statement - Puts into words an organization’s overall purpose and reason for being 10

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Description of the Company ▮ It includes: Brief history or background of the firm Types of products it offers or plans to introduce Recent successes or achievements 11

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Statement of Goals and Core Competencies ▮ Goals are specific and measurable and may be divided into financial and nonfinancial aims ▮ Core competencies make a firm stand out from everyone else in the marketplace 12

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Outline of the Marketing Environment ▮ SWOT analysis identifies the firm’s strengths, weaknesses, opportunities, and threats within the marketing environment 13

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Budget, Schedule, and Monitoring ▮ Every marketing plan requires a budget, a time schedule for implementation, and a system for monitoring the plan’s success or failure ▮ Long-range marketing plans encompass a two- to five-year period 14

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix A Developing an Effective Marketing Plan Budget, Schedule, and Monitoring ▮ Short-term plans to cover marketing activities for a single year ▮ Exit strategy - Plan for the firm to leave the market 15