1. Marketing Management Dawn Iacobucci
© 2010 South-Western, a part of Cengage Learning

2. Marketing Plan
Chapter 15

3. Marketing Plans

4. Framework: 5Cs-Context
What does the economy look like?
Is it a stable economic environment?
Future growth
Nation, region, state, and local
Current consumer mood
Spending activities
Power of customers in target markets

5. THE ECONOMIC AND TECHNOLOGICAL ENVIRONMENT
If rapid change
Impact on interest rates
Charge to borrow money
Inflation
If rates go up
Cost of goods up
Global economy
World economies are interconnected
Trade—exchange rates
Technological
Economy affected by country’s technological base

6. The Impact of Technology
application of science to convert the economy’s resources to output
Technology presents marketing opportunities:
new products
new ways to process marketing functions
Examples: consider the Internet
Products: software for computer users
Process: selling from a web site

7. Framework: 5Cs-Context
Technological advances enhance customer offerings
provides new technologies
competitors threats

8. Examples of the Effect of Technological Environment
Rapid changes
Internet and World Wide Web
Robotics
better quality control, lower production costs
Networked computer scanners
retail check-out counters
Worldwide satellites
data communication
Automated inventory control
Hybrid engines
vehicles
New drugs
knowledge of genes

9. The Political Environment
This slide relates to material on pp
Indicates place where slide “builds” to include the corresponding point (upon mouse click).
The Political Environment
Examples of
Characteristics of the Political Environment
Regional Economic Groupings (European Union; NAFTA)
Nationalism (emphasis on a country’s interest)
Summary Overview
The political environment refers to the way societies order their governments and to the attitudes of the government and people toward business.
Let’s talk about two examples of different characteristics of the political environment.
Key Issues
Nationalism is an emphasis on a country’s interests before anything else.
Nationalism can be limiting in international markets, by reducing sales and blocking marketing activity.
Regional economic groupings are becoming more important.
The European Union has unified European markets.
The North American Free Trade Agreement (NAFTA) is building trade cooperation in North America.
Discussion Question: Are regional groupings a form of nationalism? Explain.

10. Framework: 5Cs-Context
Political concerns:
Trends
Elections
Legal
regulatory constraints
Partners stability
Honor trade agreements
Potential new consumer laws

11. Examples of Changes in the Political/Legal Environment
Deregulation
Energy industries
Less emphasis
Antitrust laws by federal government
Maturing
consumerism
More attention
international trade laws
Changes
labeling requirements
Increased concern
consumer privacy

12. The Cultural and Social Environment
This slide relates to the material on pp and Overhead 45.
Cultural Trend:
The Changing Roles of Women
Time
Poverty
Economic
Power
Summary Overview
The cultural and social environment affects how and why people live and behave as they do. A key consideration for marketing managers is recognizing that cultures are based upon different assumptions about the way societies should do things. In international settings, it is important to recognize that perfectly acceptable marketing practices in one culture may be extremely offensive in another.
The Cultural Environment
The changing role of women illustrates the importance of the cultural environment:
In the US, the roles of women have changed (and are changing) from a traditional focus as wife and mother to a more independent person with different consumer needs. Key considerations include:
Greater Career Opportunities. More women are in the workforce and for longer tenures.
Time Poverty. With increased time demands from jobs and careers, women and their families are in the market for new services and goods that save time.
Economic Power. Although women still earn considerably less than men (often for the same jobs), their economic power and independence is increasing. More firms are recognizing this fact and designing unique marketing mixes for this target market.
Discussion Note: Some Saturn car ads play up this trend by contrasting traditional car salespeople as not taking women seriously while Saturn treats women with the respect that every customer deserves.
Career
Opportunity
4-11

13. Changing role of women—United States Grater career opportunities
THE CULTURAL AND SOCIAL ENVIRONMENT: ASSUMPTIONS ABOUT THE WAY SOCIETY SHOULD DO THINGS
Changing role of women—United States
Grater career opportunities
More women in workforce
Time poverty
Jobs
Careers
Families
Economic power
Economic power and independence is increasing

14. Examples of Trends in the Cultural Environment
Aging of America
New growth in ethnic groups
More single-person households
More health consciousness
More concern about the environment

15. Ethnic Dimensions of the US Market
What’s going on in society?
Major demographic shifts
Major attitudinal sensitivities?
Buying
Behavior
Median
Income
Growth
Accurate
Target
Rate

16. Ethnic Dimensions of the US Market
This slide refers to material on pp
 Indicates place where slide “builds” to include the corresponding point (upon mouse click).
Increasing Median Income (e.g., over 13% of AA families income over $100,000
Buy Differently
(cultural variables)
High Growth Rate (e.g., Latino population increasing 1 million per year)
Avoid Stereotypes 30

17. Framework: 5Cs-Company
Who are we?
What are we known for?
What are we good at?
Who do we want to become?
What are the profitable opportunities?

18. OBJECTIVES OF THE FIRM COMPANY’S OBJECTIVES: PERFORM:
SOCIALLY AND ECONOMICALLY USEFUL FUNCTION
NEED AN ORGANIZATION TO:
IMPLEMENT BUSINESS AND STRATEGIES
EARN PROFIT TO SURVIVE
MAKE OBJECTIVES EXPLICIT
COORDINATED EFFORT
LEAD TO MARKETING OBJECTIVES
MISSION STATEMENT
ORGANIZATION’S BASIC PURPOSE FOR BEING

19. Framework: 5Cs-Customer
Use secondary data
Get in touch with competitors and customers
Current
Past
potential
Develop demographic and psychographic description of:
potential customers

20. Different Types of Spending
This slide refers to material on pp
 Indicates place where slide “builds” to include the corresponding point (upon mouse click).
Taxes
Total
Income
Discretionary
Income
Disposable
Income
Necessities 22

21. Family Life Cycle Implications
This slide refers to material on pp
 Indicates place where slide “builds” to include the corresponding point (upon mouse click).
Reallocation for Teenagers
(influence parent’s purchases)
Acceptance of New Ideas
(young people)
Key Issues
Empty Nesters
(higher discretionary income)
Senior Citizens
(live longer; more active lifestyles) 25

22. Framework: 5Cs-Customer
Need to know Products brought
quantity
When
with our purchases
Are products stockpiled?
How are products used?
Is the decision maker and user the same person?

23. Framework: 5Cs-Customer
For non-buyers
Why not buying?
If not in the category
can we get them in?
If not buying from us
get from competition
What do they want that we’re not providing?

24. Framework: 5Cs-Customer
Customers’ level of satisfaction
Customers opinion of Ours versus competitor’s brand
Like or don’t like
Deal breakers
lose our customers

25. Framework: 5Cs-Customer
Price sensitivity of Segment
Potential of Long-term loyalty program
Where do customers buy product?
e-commerce or other channels’ role
Changing of customers’
needs and desires
living behaviors

26. Framework: 5Cs-Competitors
In SWOT analysis--strengths are relative to other providers
Who are major competitors?
Brand or any substitute product
From a customer's perspective—competition that:
go after our dollar
share of mind
heart

27. THE COMPETITIVE ENVIRONMENT: KEY AREAS TO CONSIDER
KINDS OF MARKETS
MONOPOLY
MONOPOLISTIC
OLIGOPOLY
PURE COMPETITION
COMPETITOR ANALYSIS
STRENGTH & WEAKNESS
COMPETITIVE RIVALS
CLOSEST COMPETITORS
COMPETITIVE BARRIERS
CONDITIONS THAT MAKES IT DIFFICULT OR IMPOSSIBLE TO COMPETE
INFORMATION ON COMPETITORS

28. Framework: 5Cs-Competitors
know competitors’
strengths
product features
price points
cost advantages
potential response to our actions

29. Framework: 5Cs-Collaborators
Relationship with supply chain providers
Relationship with downstream channel members
What adjustments might be fruitful?

30. Framework: STP-Segmenting
Demographic variables
Gender
Age
Household composition
stage in life cycle
Education
Income
Ethnicity
etc.
Geographic variables
Countries
Cultures
urban vs. rural
Climate
zip code

31. DEMOGRAPHIC DIMENSIONS
Operational dimensions used to:
Segment markets
Develop marketing mixes
Analyze data
Determine
size of target markets
Is the market substantial?
demographic trends
opportunities
shifts in age distribution
geographic growth/decline

32. Framework: STP-Segmenting
Psychological variables used to determine customers’
Wants
level of expertise
opinion leaders
early adopters

33. Framework: STP-Segmenting
Behavioral data
What do customers purchase?
Who are:
current users
competitors’ brands users
potential customers who aren’t buying in the category
What products are our customers purchasing with our brand?
Scanner data, etc.

34. Framework: STP-Targeting
Segment target according to its:
potential for
profit
growth
goal fit
actionable

35. Framework: STP-Positioning
Conduct perceptual mapping
Writing positioning statement
Positioning is executed via 4Ps

36. Framework: 4Ps-Product
where to position the offer:
high-end quality
value
what assortment features for:
existing customers
potential customers
Core business:
offer customer service plans
Determine whether it is a new product or segment

37. Framework: 4Ps-Price High price consistent with early PLC
high quality positioning
skimming
Low price consistent with early PLC
value offering
penetration

38. Framework: 4Ps-Price Supplemental pricing components: Couponing
Occasional discounting
Consistent pricing (e.g., EDLP)
Warranties
Loyalty programs and rewards

39. Framework: 4Ps-Promotion
Level of Promotion for exclusive appeal
maximum
minimal
What is the Goal of the integrated marketing campaign?
What is the message of advertising communications?
Does media fit to our position?
Did we achieve Integration in the IMC?

40. Framework: 4Ps-Place Access to sites consistent with positioning:
exclusive
mass
e-commerce arm of the business:
integrated
incidental website

41. Marketing Plans Marketing plans works in progress
Plan modified as situations change
Traditionally marketing plans include
executive summary
elaboration of the plan

42. Study Question 1
As Kelly writes her marketing plan, she needs to address the 5Cs, which are:
a. customer, cash, content, context, competition
b. company, competitor, collaborator, content, and context
c. customer, core competence, competition, complexity, and collaboration
d. customer, company, competitor, collaborator, and context D

43. a. buying motivations and behaviors b. customer satisfaction levels
Study Question 2
What sort of customer information should be discussed in a marketing plan?
a. buying motivations and behaviors
b. customer satisfaction levels
c. demographics and psychographics
d. all of these D

44. a. behavior of non-buyers. b. customer satisfaction levels.
Study Question 3
In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to
a. behavior of non-buyers.
b. customer satisfaction levels.
c. other providers in the marketplace.
d. competitors’ misfortunes. C

45. In marketing, the acronym STP stands for
Study Question 4
In marketing, the acronym STP stands for
a. segmentation, targeting, positioning.
b. strategy, targeting, promotions.
c. strategic targeting plan.
d. segmenting towards profit. A

46. Which of the following is NOT criteria for customer segmentation?
Study Question 5
Which of the following is NOT criteria for customer segmentation?
a. countries, cultures, urban vs. rural, and climate
b. behavioral data
c. fit with corporate goals
d. gender, age, and household composition C

47. Video C