CHAPTER 3: Marketing Planning PRODUCT MANAGEMENT CHAPTER 3: Marketing Planning

LEARNING OBJECTIVES: After studying this chapter, you should be able to: Define what is marketing planning Understand the aim of marketing plan Identify the component of marketing plan Create a marketing plan

CHAPTER OUTLINE Definition of marketing plan Objectives of marketing plan The planning process Components of the marketing plan

Definition A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.

Further Explanation: Written Document It must be written, not something stored in a product manager’s head It calls for disciplined thinking Provides a vehicle for inter-functional areas of the firm Pinpoints responsibility for achieving results by a specified date Provide continuity

Further Explanation: Business Center It occurs at different organizational levels Based on organizational structure

Further Explanation: Planning Period Time horizon varies from product to product Rates of technological change Intensity of competition Frequency of shifts in tastes Typical horizon is annually

Frequent Mistakes in Planning Process Speed of the process Amount of data collected Who does the planning The structure Length of the plan Frequency

Frequent Mistakes in Planning Process Number of courses of action considered Who sees the plan Not using the plan as a sales document Insufficient senior management leadership Not tying compensation to successful planning efforts

The Planning Process Step 1: Update the facts about the past Step 2: Background data Step 3: Analyze historical and background data Step 4: Develop objectives, strategies, and action programs Step 5: Develop pro forma financial statements Step 6: Negotiate Step 7: Measure progress Step 8: Audit

Components of the Marketing Plan: Executive Summary A brief summary of the marketing plan Useful for quickly reviewing the major elements of the plan and easily comparing product plans

Components of the Marketing Plan: Situation Analysis Contains the data and analysis vital to develop sound marketing strategies The ‘homework’ part of marketing plan No strategy should be developed without first analyzing the product category

Components of the Marketing Plan: Situation Analysis (Category definition) Manager considers both close and distant competitors and prioritizes them Impact other analysis

Components of the Marketing Plan: Situation Analysis (Category analysis) Identify factors that can be used to asses the attractiveness of a product category Competitors, customers, technology and sales growth rate alter the attractiveness level

Components of the Marketing Plan: Situation Analysis (Competitor analysis) Asks who are the key competitors in the market their likely future strategies Critical section is termed resource analysis; comparing our product with competitors to identify strengths and weaknesses

Components of the Marketing Plan: Situation Analysis (Customer analysis) Important in order to retain constant customer focus We must understand who they are; how and why they behave the way they do

Components of the Marketing Plan: Situation Analysis (Planning assumption) Understand product’s market potential Includes forecasts and assumptions such as raw material and labor supply

Components of the Marketing Plan: Objectives/Strategies Statement of marketing objectives (where do we want to go?) Marketing Strategy (How are we going to get there)

Components of the Marketing Plan: Supporting Marketing Programs The implementation part of the plan Decisions on pricing, channel of distribution, customer service programs, advertising and other relevant marketing agenda

Tutorial Activity (ready in 2 weeks from now) Describe the situation analysis for your product