1. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. C H A P T E R Overview 1

2. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Major Topics of Ch. 1 1.What is a Marketing Plan? 2.Marketing Plan Sequence 3.Contents of A Typical Marketing Plan 4.Good and Bad in Marketing Planning 5.Sources of Help for You

3. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. What is a formal marketing plan? A marketing plan is a written document containing the guidelines for the business unit’s marketing programs and allocations of resources over the planning period.

4. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Time Horizons for Marketing Plans Time PeriodConsumer Products Industrial Products Services 1 year62%45%65% 3 years558 5 years15173 Long term436 Indefinite022 Other142816

5. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Hierarchy of Planning Group or sector planning SBU planning Annual marketing (business) plan Corporate Strategic Planning www.ge.com/

6. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Objectives of a Marketing Plan 1.To define the current business situation. 2.To identify problems and opportunities facing the business. 3.To establish business objectives. 4.To define the strategies (e.g.,target market) and programs necessary to achieve the objectives.

7. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Objectives of a Marketing Plan cont. 5.To pinpoint responsibility for objectives. 6.To establish timetables and metrics for achieving objectives. 7.To encourage careful and disciplined thinking.*** 8.To establish an outward (customer/competitor) orientation. * Two Approaches: Top-Down or Bottom-Up

8. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Marketing Planning Sequence Collect data Analyze data Develop objectives, strategies, programs Develop financial documents Negotiate final plan Measure progress toward objectives Audit

9. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Marketing Plan Summary I.Executive summary (Don’t forget this!) II.Situation analysis A.Industry analysis (should be on the industry) B.Sales analysis (Industry level) C.Competitor analysis D.Customer analysis E.Planning assumptions F.Forecasts

10. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Marketing Plan Summary (con’t) III.(Marketing) objectives IV.(Marketing) strategy*** V.Marketing programs (Marketing Mix) VI.Financial documents VII.Monitors and controls* VIII.Contingency plans*

11. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Frequent Mistakes in the Planning Process The Speed of the Process The Amount of Data/Information Collected Who does the Planning? The Structure Length of the Plan: 20-30 Pages

12. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Frequent Mistakes in the Planning Process (cont) 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

13. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. What Makes a Good Planning System? Utilize experience from multiple managerial levels Employ internal and external sources of information Spend Sufficient Time Give Incentives for Good Planning

14. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Sources of Help I.Planning Software I.Marketing Plan Pro* www.paloaltosoftware.comwww.paloaltosoftware.com II.Some websites I. www.bizcenter.org www.bizcenter.org II.www.brs-inc.comwww.brs-inc.com III.www.startupjournal.comwww.startupjournal.com III.Workshops I.Tech Transfer Forum II.Corvallis Tech Pub ( www.sao.corvallis.or.us) www.sao.corvallis.or.us IV.Previous Project Reports (At my office)