1. Analysis for Marketing Planning
Defining the Market

2. Marketing Planning
A written document containing a specific blueprint for business/business unit’s marketing program and allocations for a specific period of time.

3. Corporate
strategic planning
Group or
sector planning
SBU
planning
Annual marketing
plan

4. Marketing Planning Sequence
Collect
data
Analyze
data
Develop
objectives,
strategies,
programs
Develop
financial
documents
Negotiate
final plan
Measure
progress
toward
objectives
Audit

5. Marketing Plan Components
Executive summary
Situation analysis
Industry analysis
Competitor analysis
Customer analysis
Demand analysis & forecasts
Marketing objectives
Marketing strategy
Marketing tactics
Product/brand management
Pricing management
Distribution management
Communications management
Budget
Implementation and control plan
Contingency plan

6. Market Definition
How a business sees or defines its market for its product/service.
Who do we or will we compete with?

7. Different Bases of Competition
Customer-oriented
Marketing-oriented, i.e., advertising and promotion
Resource-oriented
Geographic

8. Methods for Determining Competitors
Existing categories
Substitutability
Managerial judgment

9. Defining market using customer-based data
Brand switching
Basic question: Are these products substitutes for each other?
Positive cross-elasticity of demand
Substitute products
Negative cross-elasticity of demand
Complementary products

10. Customer judgment Based on customer perceptions
Overall similarity--perceptual map

11. More Gentle
Anacin 3  
Tylenol
Reg. Str.
Less
Strong
More
Strong 
Tylenol
Extra Str. 
Bufferin 
Bayer 
Anacin 
Anacin Max. 
Excedrin
Less Gentle

12. Customer judgment Similarity of consideration sets Product deletion
Substitution in use

13. Defining market by levels of competition
Identify levels or dimensions of competition
Three dimensions of competition:
Works from broad to narrow
Identifies all possible opportunities, enabling business to be proactive and to anticipate consumer needs

14. First Dimension:
Identifies competing product classes serving generic need.
Example:
Generic need = thirst
Competing product classes =
milk, soda, coffee, tea, juices, water, etc.

15. Second Dimension:
Identifies competing product forms within product class.
Example:
Product class = coffee
Competing forms = whole bean, ground, instant, coffee bags, etc.

16. Third Dimension: Identifies competing brands within product form.
Example:
Product form = whole bean
Competing brands = Folger’s, Starbuck’s, Millstone, Gevalia, etc.

17. Marketing Definition Broad Narrow Thirst Milk Soda Coffee Tea Juice
Ground
Whole
Bean
Instant
Coffee
Bag
Narrow
Folger’s
Starbuck’s
Millstone
Gevalia

18. Product form
competition:
Diet colas
Product category
competition:
Soft drinks
Generic competition:
Beverages
Budget competition:
Food & entertainment

19. Choosing Competitor Focus
Depends on several factors:
Long-term vs. short-term
Product life cycle stage
Rate of change in technology
Firm’s distinctive capabilities

20. Product Life Cycle