Developing a Marketing Plan

Types of Marketing Plans
Strategic and Tactical Marketing Plans
Strategic Marketing Plan
based on careful examination of a firm’s core business strategy and primary marketing objectives, broad, have far-reaching implications, often extend three or more years into the future
Tactical Marketing Plans
focus on implementing the broad strategies that are established in the strategic plan, short-term focus, typically cover a period of one year, emphasize implementation, focus on specific activities, concentrate on allocation of resources to achieve stated objectives
Advantages of Marketing Plans
helps firm effectively cope with change, helps ensure objectives are either achieved or modified, aids management in decision-making, forces managers to carefully examine operations, aids management in evaluating marketing efforts
Disadvantages of Marketing Plans
very time-consuming, must have support and commitment of top management to be effective, can be inaccurate or ineffective if poorly conceived or based on false assumptions, may not be enough time to conduct background work necessary for high-quality plan, may not have personnel with required knowledge and expertise in planning
Why Marketing Plans Fail
strategic planning not integrated into day-to-day activities of the firm, those responsible for planning do not understand the planning process, there is a lack input from non-marketing managers, financial projections treated as marketing plans, inadequate input and insufficient consideration of all environmental variables, planning based too heavily on short-term results, no procedures established to monitor and control planning process
Steps in Marketing Planning Process
Conduct a Situation Analysis–>Define the firm’s goals and objectives–>Formulate marketing strategies and action plans–>Implement action plans and monitor performance
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
SWOT Leverage Items
Strengths and Opportunities
SWOT Problem Items
Weaknesses and Threats
SWOT Internal
Strengths and Weaknesses
SWOT External
Opportunities and Threats
Characteristics of a Good Objective
specific and easy to understand, identify specific results in specific terms, within the power of the organization to achieve, acceptable to the individuals within the organization
types of objectives
financial, sales, competitive, customer
Financial Objective
profit, rate of return, cash flow
Sales Objective
revenue, volume, market share
Competitive Objective
position, survival, parity
Customer Objective
awareness, image, satisfaction
Product Development Strategy Options
Market Penetration, Market Development, Product Development, Product Diversification
Market Penetration
existing product to existing market
Product development
new product to an existing market
market development
new markets for existing products
product diversification
new products to new markets
Methods to Evaluate Performance
sales data control, cost control data, profit control data, consumer feedback
sales control data
sales by segment, share, sales inputs
cost control data
compare budget to actual
profit control data
sales and costs by segment
consumer feedback
awareness, knowledge, attitudes, purchasing behavior, satisfaction
Types of Sales Forecasting
Qualitative and Quantitative
Qualitative Sales Forecasting
expert opinion, delphi technique (forecasting and review), sales force forecast, survey of buying intentions-asking
Quantitative Sales Forecasting
time series analysis and causal methods
Forecasting Techniques
time horizon, availability of data, pattern of the data, desired level of accuracy, cost of collecting and analyzing data, ease of application