1. CHAPTER 3: Marketing Planning
PRODUCT MANAGEMENT
CHAPTER 3: Marketing Planning

2. 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

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

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

5. 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

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

7. 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

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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

16. 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

17. 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

18. 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)

19. 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

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