Chapter 1: Introduction to Marketing Planning

Chapter 1: Introduction to Marketing Planning
1-1 Chapter 1: Introduction to Marketing Planning Presentation © 2005 Marian Burk Wood - all rights reserved

What is a marketing plan for?
1-2 What is a marketing plan for? To summarize marketplace knowledge To show what marketing will accomplish To detail marketing strategies, activities To show how progress will be measured To explain implementation control Presentation © 2005 Marian Burk Wood - all rights reserved

Marketing plan contents
1-3 Marketing plan contents Executive summary, table of contents Current situation (with SWOT) Objectives and issues analysis Target market Marketing strategy and programs Financial plans Implementation controls Presentation © 2005 Marian Burk Wood - all rights reserved

Researching the current situation
1-4 Researching the current situation Examine external environment Assess internal capabilities Understand competitors’ strategies Analyze stakeholders’ influence Presentation © 2005 Marian Burk Wood - all rights reserved

Understanding markets/customers
1-5 Understanding markets/customers Learn about markets and customers Examine needs, wants, attitudes Research buying behaviors Presentation © 2005 Marian Burk Wood - all rights reserved

Planning segmentation, targeting, and positioning
1-6 Planning segmentation, targeting, and positioning Identify segments, decide which to target Create competitively distinctive position in the minds of targeted customers Presentation © 2005 Marian Burk Wood - all rights reserved

Planning direction, objectives, and marketing support
1-7 Planning direction, objectives, and marketing support Determine strategic direction Set objectives Plan customer service support Plan internal marketing support Presentation © 2005 Marian Burk Wood - all rights reserved

1-8 Approaches to growth Exhibit source: Adapted from Alan R. Andreasen and Philip Kotler, Strategic Marketing for Non-Profit Organizations, 6e (Upper Saddle River, NJ: Prentice Hall, 2003), 81. Presentation © 2005 Marian Burk Wood - all rights reserved

Preparing to track progress and control implementation
1-10 Preparing to track progress and control implementation Develop sales forecasts Create budgets and schedules Plan to measure performance Diagnose results Adjust activities as needed Presentation © 2005 Marian Burk Wood - all rights reserved

Guiding principles for marketing
1-11 Guiding principles for marketing Expect change Emphasize relationships Involve everyone Seek alliances Be innovative Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 2: Analyzing the Current Situation
2-1 Chapter 2: Analyzing the Current Situation Presentation © 2005 Marian Burk Wood - all rights reserved

Inside the marketing environment
2-2 Inside the marketing environment Macroenvironment Broad forces that can affect performance Microenvironment Groups that more directly influence performance Presentation © 2005 Marian Burk Wood - all rights reserved

Using environmental scanning
2-3 Using environmental scanning Exhibit source: Marian Burk Wood, Marketing Planning: Principles into Practice (Harlow, Essex, England: Pearson Education, 2004), 40. Presentation © 2005 Marian Burk Wood - all rights reserved

SWOT analysis Strengths Weaknesses Opportunities Threats
2-4 SWOT analysis Strengths Internal capabilities that can help the organization achieve its objectives Weaknesses Internal factors that can prevent the organization from achieving its objectives Opportunities External circumstances that may be exploited for higher performance Threats External circumstances that might hinder performance Presentation © 2005 Marian Burk Wood - all rights reserved

Analyzing the internal environment
2-5 Analyzing the internal environment Mission Resources Offerings Previous results Keys to success, warning signs Business relationships Presentation © 2005 Marian Burk Wood - all rights reserved

Analyzing the external environment
2-6 Analyzing the external environment Demographic trends Economic trends Ecological trends Technological trends Political-legal trends Social-cultural trends Competitors Presentation © 2005 Marian Burk Wood - all rights reserved

Judging strengths & weaknesses
2-7 Judging strengths & weaknesses Exhibit source: Mary K. Coulter, Strategic Management in Action (Upper Saddle River, NJ: Prentice Hall, 1998), 141. Presentation © 2005 Marian Burk Wood - all rights reserved

Sample SWOT: FedEx Strengths Weaknesses Opportunities Threats
2-8 Sample SWOT: FedEx Presentation © 2005 Marian Burk Wood - all rights reserved Strengths FedEx, Kinko’s brands Air, ground strength Stable workforce Weaknesses Possible labor actions Slower growth in package volume Opportunities New markets (China) Custom/special services More channels (Kinko’s) Threats Intense competition Technology Fuel costs

Chapter 3: Understanding Markets and Customers
3-1 Chapter 3: Understanding Markets and Customers Presentation © 2005 Marian Burk Wood - all rights reserved

Types of markets Consumer market Business market
3-2 Types of markets Consumer market People buying for themselves or their families Business market Companies, nonprofits, government agencies, or institutions buying for organizations Presentation © 2005 Marian Burk Wood - all rights reserved

Qualified available market
3-3 Defining the market Penetrated market (customers already buying such an offering) Target market (customers being targeted) Qualified available market (customers qualified to buy based on certain criteria) Available market (customers interested in, with enough income for, and with access to offering) Potential market (all customers who may be interested in an offering) Presentation © 2005 Marian Burk Wood - all rights reserved

Calculating market share
3-4 Calculating market share Units: If all companies sell 10 million units of a type of product and Company A sells 2 million units, its market share is 20% Dollars: If all sales of a type of product total $100 million and Company A’s sales are $15 million, its market share is 15% Presentation © 2005 Marian Burk Wood - all rights reserved

Influences on consumer markets
3-5 Influences on consumer markets Cultural considerations Nation or region, subculture, class Social connections Family, friends, colleagues, aspirations Personal factors Lifestyle, motivation, perceptions/attitudes Presentation © 2005 Marian Burk Wood - all rights reserved

Influences on business markets
3-6 Influences on business markets Organizational connections Role in and influence on buying process, relations with competing suppliers Organizational considerations Company’s size, industry, share, growth, competition, buying policies, finances, buying cycle, derived demand Presentation © 2005 Marian Burk Wood - all rights reserved

Using marketing research
3-7 Using marketing research Secondary research Data collected for another purpose Sources: government, industry groups, other Primary research Data collected for a specific situation Sources: surveys, ethnography, other Presentation © 2005 Marian Burk Wood - all rights reserved

Analyzing markets and customers
3-8 Analyzing markets and customers Presentation © 2005 Marian Burk Wood - all rights reserved Understand behavior, needs Check demographics Watch for changes Take customers’ view Look below the surface Plan for research

Chapter 4: Planning Segmentation, Targeting, and Positioning
4-1 Chapter 4: Planning Segmentation, Targeting, and Positioning Presentation © 2005 Marian Burk Wood - all rights reserved

Applying market segmentation
4-2 Applying market segmentation Group customers according to similar needs, habits, or attitudes that can be addressed through marketing. Useful if customers in a segment react differently to marketing, vs. customers in other segments. Presentation © 2005 Marian Burk Wood - all rights reserved

Using segmentation, targeting, and positioning
4-3 Using segmentation, targeting, and positioning Presentation © 2005 Marian Burk Wood – all rights reserved Segmentation Select the market Apply segmentation variables Assess, select segments for targeting Targeting Select number, rank segments for entry Select segment coverage strategy Positioning Select attributes for differentiation Apply positioning through marketing

Selecting the market to segment
4-4 Selecting the market to segment Define the general market Eliminate inappropriate markets/segments Geographically difficult to reach Insufficient purchasing power Ethical issues Environmental problems Presentation © 2005 Marian Burk Wood – all rights reserved

Behavioral/Attitudinal
4-5 Variables for consumer market segmentation Presentation © 2005 Marian Burk Wood - all rights reserved Demographic Age, gender, household size, family status, income, race, occupation, religion, class, nationality Geographic Location (country, region, state, city, neighborhood, postal code), distance, climate Psychographic Lifestyle, activities, interests Behavioral/Attitudinal Benefits perceived/expected, loyalty, usage occasion/rate, user status, price sensitivity, product or brand attitude

Variables for business market segmentation
4-6 Variables for business market segmentation Demographic Industry; business size/age; ownership Geographic Location; distance; climate Behavioral/attitudinal Purchasing patterns/process; user status; benefits expected; supplier requirements… Presentation © 2005 Marian Burk Wood - all rights reserved

Assessing segment attractiveness
4-7 Assessing segment attractiveness Presentation © 2005 Marian Burk Wood – all rights reserved Fit with Company resources Core competencies Fit with Market factors Competitive factors Economic and technological factors Business environment factors Identify Most promising segments Order of segment entry

Coverage strategies Concentrated marketing Undifferentiated marketing
4-8 Coverage strategies Concentrated marketing Target only one segment Undifferentiated marketing Target all segments with same strategy Differentiated marketing Use a separate strategy to target each segment Presentation © 2005 Marian Burk Wood - all rights reserved

Positioning for competitive advantage
4-9 Positioning for competitive advantage Use meaningful differentiation Based on what customers value Conveys the brand’s value Apply marketing leverage Positioning drives marketing Positioning reinforces differentiation Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 5: Planning Direction, Objectives, and Marketing Support
5-1 Chapter 5: Planning Direction, Objectives, and Marketing Support Presentation © 2005 Marian Burk Wood - all rights reserved

Options for marketing plan direction
5-2 Options for marketing plan direction Growth Maintenance Retrenchment Presentation © 2005 Marian Burk Wood - all rights reserved

Growth strategies Market penetration Market development
5-3 Growth strategies Presentation © 2005 Marian Burk Wood - all rights reserved Market penetration Sell more of existing products in existing markets/segments Market development Sell existing products in new segments/markets Product development Sell new products in existing markets/segments Diversification Sell new products in new markets

Maintenance strategies
5-4 Maintenance strategies Sustain current revenues/share Wring short-term profits Prepare for future growth Presentation © 2005 Marian Burk Wood - all rights reserved

Retrenchment strategies
5-5 Retrenchment strategies Exit markets, drop products Downsize marketing, limit distribution Close down in orderly fashion Presentation © 2005 Marian Burk Wood - all rights reserved

Effective marketing plan objectives
5-6 Effective marketing plan objectives Specific, time-defined, measurable Realistic yet challenging Consistent with mission and goals Appropriate for environment, opportunities, and threats Presentation © 2005 Marian Burk Wood - all rights reserved

Types of marketing plan objectives
5-7 Types of marketing plan objectives Marketing objectives To manage key relationships/activities Financial objectives To attain certain financial results Societal objectives To achieve social responsibility results Presentation © 2005 Marian Burk Wood - all rights reserved

Sample objectives Marketing Financial Societal
5-8 Sample objectives Marketing Customer/channel relationships; market share; brand awareness Financial ROI; revenue/profit by product, channel; break-even by product Societal Greener/cleaner operations; charitable activities; energy conservation Presentation © 2005 Marian Burk Wood - all rights reserved

Planning marketing support
5-9 Planning marketing support Customer service Satisfy customer needs Reinforce positioning, allocate resources Internal marketing Focus employees on customers Inform and involve employees Improve employee performance, satisfaction Presentation © 2005 Marian Burk Wood - all rights reserved

Shaping the marketing mix
5-10 Shaping the marketing mix Exhibit source: Adapted from Tim Berry and Doug Wilson, On Target: The Book on Marketing Plans (Eugene, OR: Palo Alto Software, 2001), 107. Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 6: Developing Product and Brand Strategy
6-1 Chapter 6: Developing Product and Brand Strategy Presentation © 2005 Marian Burk Wood - all rights reserved

What can be marketed as a product?
6-2 What can be marketed as a product? Tangible goods Services Places Ideas Organizations People Presentation © 2005 Marian Burk Wood - all rights reserved

Product and brand strategy
6-3 Product and brand strategy Presentation © 2005 Marian Burk Wood - all rights reserved

Features, benefits, and services
6-4 Features, benefits, and services Features Enable product to perform its function Benefits Need satisfaction that customers want Related services Deliver benefits valued by customers Presentation © 2005 Marian Burk Wood - all rights reserved

Quality and design Quality Design
6-5 Quality and design Quality How well a product satisfies customers Basic functionality is a given Design Perform properly, repair easily Be aesthetically pleasing Presentation © 2005 Marian Burk Wood - all rights reserved

Packaging and labeling
6-6 Packaging and labeling Packaging For convenience and product safety Labeling To communicate contents, uses, warnings Presentation © 2005 Marian Burk Wood - all rights reserved

Product life cycle Introduction Growth Decline Maturity 6-7
Presentation © 2005 Marian Burk Wood - all rights reserved Introduction Growth Decline Maturity

New product development process
6-8 New product development process Idea generation Screening of ideas Initial concept testing Business analysis Prototype design Market testing Commercialization Monitoring reaction Presentation © 2005 Marian Burk Wood - all rights reserved

Managing products Product line Product mix
6-9 Managing products Product line Products in a line are related Line extension adds a product Product mix Assortment of all lines offered Brand extension widens mix Presentation © 2005 Marian Burk Wood - all rights reserved

Branding a product Conveys an identity Differentiates an offer
6-10 Branding a product Conveys an identity Differentiates an offer Uses words, designs, or symbols May be legally protected Presentation © 2005 Marian Burk Wood - all rights reserved

Pyramid of brand equity
6-11 Pyramid of brand equity Exhibit source: Adapted from Kevin L. Keller, Strategic Brand Management 2e (Upper Saddle River, NJ: Prentice Hall), 76. Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 7: Developing Channel and Logistics Strategy
7-1 Chapter 7: Developing Channel and Logistics Strategy Presentation © 2005 Marian Burk Wood - all rights reserved

What is the value chain? Series of interrelated, value-added functions
7-2 What is the value chain? Series of interrelated, value-added functions Structure of organizations performing these functions Gets the right product to the right markets at the right time, place, price Presentation © 2005 Marian Burk Wood – all rights reserved

Major links in the value chain
7-3 Major links in the value chain Presentation © 2005 Marian Burk Wood - all rights reserved

Channel functions to be handled
7-4 Channel functions to be handled Match volume, amount, offer to customers’ needs Share information Contact, negotiate with customers Transport and store products Presentation © 2005 Marian Burk Wood - all rights reserved

Planning channel levels
7-5 Planning channel levels More intermediaries = more levels Zero-level = direct to customer One-level = one type of intermediary Each level must add value, get profit Presentation © 2005 Marian Burk Wood - all rights reserved

Choosing channel members
7-6 Choosing channel members Intensive distribution = many outlets Selective distribution = fewer outlets Exclusive distribution = fewest outlets Presentation © 2005 Marian Burk Wood - all rights reserved

Internal influences on channel strategy
7-7 Internal influences on channel strategy Direction, goals, objectives Resources and core competencies Marketing activities Need for control Presentation © 2005 Marian Burk Wood - all rights reserved

External influences on channel strategy
7-8 External influences on channel strategy Customers and markets Environmental factors Competitors Intermediary availability Presentation © 2005 Marian Burk Wood - all rights reserved

Planning logistics Manage flows through value chain
7-9 Planning logistics Manage flows through value chain Make decisions about: Storage and inventory Order processing/fulfillment Transportation Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 8: Developing Pricing Strategy
8-1 Chapter 8: Developing Pricing Strategy Presentation © 2005 Marian Burk Wood - all rights reserved

Types of pricing Fixed pricing Dynamic pricing
8-2 Types of pricing Fixed pricing Customers pay the price set by marketer Dynamic pricing Prices vary from customer to customer or situation to situation Presentation © 2005 Marian Burk Wood - all rights reserved

How customers define value
8-3 How customers define value The difference between: total perceived benefits (features, quality, service, performance, etc.) and total perceived price (purchase price, repair costs, shipping costs, etc.) Presentation © 2005 Marian Burk Wood - all rights reserved

How pricing affects demand
8-4 How pricing affects demand Elastic demand Small price change significantly increases or decreases the amount demanded Inelastic demand Price change does not significantly affect the amount demanded Presentation © 2005 Marian Burk Wood - all rights reserved

Planning value-based pricing
8-5 Planning value-based pricing Start with customers’ perceptions of value and price they will pay Use target costing to allow for profit or other objectives Presentation © 2005 Marian Burk Wood - all rights reserved

Planning pricing objectives
8-6 Planning pricing objectives Relate to financial, marketing, societal objectives Must be consistent with each other and with the mission and direction Presentation © 2005 Marian Burk Wood - all rights reserved

External influences on pricing
8-7 External influences on pricing Customers Perceptions of value, behavior, attitudes Competitors Alternatives available to customers Channel members Channel profit considerations Legal, regulatory, ethical concerns Decision consequences Presentation © 2005 Marian Burk Wood - all rights reserved

Internal influences on pricing
8-9 Internal influences on pricing Break-even Level at which revenue covers costs Marketing mix decisions Appropriate for product life cycle, context Presentation © 2005 Marian Burk Wood - all rights reserved

8-10 Break-even analysis Exhibit source: Tim Berry and Doug Wilson, On Target: The Book on Marketing Plans (Eugene, OR: Palo Alto Software, 2000), 163. Presentation © 2005 Marian Burk Wood - all rights reserved

Options for adapting prices
8-11 Options for adapting prices Discounts and allowances Bundling/unbundling Product enhancement Segment pricing Presentation © 2005 Marian Burk Wood - all rights reserved

Applying integrated marketing communication (IMC)
9-2 Applying integrated marketing communication (IMC) Coordinate message content/delivery Ensure consistency of communications Support the positioning and direction Presentation © 2005 Marian Burk Wood - all rights reserved

9-4 Who will be targeted? Exhibit source: Gary Armstrong and Philip Kotler, Marketing: An Introduction 7e (Upper Saddle River, NJ: Prentice Hall, 2005), 405. Presentation © 2005 Marian Burk Wood - all rights reserved

IMC objectives and budget
9-5 IMC objectives and budget Establish specific IMC objectives Identify targeted audience(s) Influence behavior, feelings, or attitudes Indicate timing Develop the IMC budget Part of overall marketing budget Consider objectives, IMC tools, markets targeted, competition, potential ROI Presentation © 2005 Marian Burk Wood - all rights reserved

Issues in IMC planning Legal/regulatory Ethical Cultural Competitive
9-6 Issues in IMC planning Legal/regulatory Ethical Cultural Competitive Presentation © 2005 Marian Burk Wood - all rights reserved

Planning advertising Market scale Target audience characteristics
9-8 Planning advertising Presentation © 2005 Marian Burk Wood - all rights reserved Market scale Local, regional, national, global Target audience characteristics Demographic, geographic, psychographic, behavioral, media habits Media choices Reach vs. frequency; radio, outdoor, print, Internet, TV, direct mail, other Message content Rational appeal or emotional appeal; design, wording, format, graphics, sound, other

Planning sales promotion
9-9 Planning sales promotion Audiences Consumers, channel, salespeople Objectives Build awareness, support IMC campaign Encourage trial/usage/repurchase Reinforce loyalty, defend against rivals Encourage speedy response Presentation © 2005 Marian Burk Wood - all rights reserved

Planning public relations
9-10 Planning public relations Audiences Customers/prospects, employees, channel members, government officials, special interest groups, analysts, other Objectives Understand public perceptions Enhance image, build awareness Communicate views and information Presentation © 2005 Marian Burk Wood - all rights reserved

Planning personal selling
9-11 Planning personal selling One-on-one attention Apply the sales process Identify and qualify prospects Plan presales approach Make sales contact Handle objections, close the sale Follow up after the sale Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 10: Planning Performance Management and Implementation Control
10-1 Chapter 10: Planning Performance Management and Implementation Control Presentation © 2005 Marian Burk Wood - all rights reserved

Using forecasts Estimate future sales and costs
10-3 Using forecasts Estimate future sales and costs Consider external and internal factors Think about best-case, worst-case, most likely scenario Presentation © 2005 Marian Burk Wood - all rights reserved

Tools for forecasting Causal analysis methods Time series methods
10-4 Tools for forecasting Causal analysis methods Regression analysis, econometric models Time series methods Smoothing, decomposition Judgmental tools Delphi method, sales force estimates, executive opinion Presentation © 2005 Marian Burk Wood - all rights reserved

Budgeting for marketing
10-5 Budgeting for marketing Affordability budgeting Percentage-of-sales budgeting Competitive-parity budgeting Objective-and-task budgeting Presentation © 2005 Marian Burk Wood - all rights reserved

Scheduling marketing programs
10-6 Scheduling marketing programs List main tasks and activities Assign starting/ending dates Identify who is responsible for each Presentation © 2005 Marian Burk Wood - all rights reserved

Why use marketing metrics?
10-7 Why use marketing metrics? Focus employees on key tasks Establish performance expectations that can be measured Allow internal accountability, pride in accomplishments Presentation © 2005 Marian Burk Wood - all rights reserved

Sample marketing metrics
10-8 Sample marketing metrics New customer acquisition Count new customers attracted within a year, a quarter, a month Profitability Measure gross or net margin per product or brand for given period Presentation © 2005 Marian Burk Wood - all rights reserved

Applying marketing metrics
10-9 Applying marketing metrics Consider expected outcomes Consider historical results Consider competitive/industry results Consider environmental factors Presentation © 2005 Marian Burk Wood - all rights reserved

Profitability control
10-10 Controlling implementation Presentation © 2005 Marian Burk Wood - all rights reserved Annual plan control Check progress toward marketing plan and program objectives Profitability control Check progress toward profit-related objectives Productivity control Check progress toward higher efficiency in marketing activities Strategic control Check effectiveness in managing marketing, relationships, ethics, social responsibility

Preparing contingency plans
10-11 Preparing contingency plans Consider significant, unexpected changes and emergencies Review and update regularly Apply lessons learned to next plan Presentation © 2005 Marian Burk Wood - all rights reserved

Chapter 1: Introduction to Marketing Planning

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Chapter 1: Introduction to Marketing Planning

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