Marketing: Chapter 2 - Marketing Plan

7 Parts of a Marketing Plan

1. Executive Summary 2. Situation Analysis 3. Goals & Objectives 4. Marketing Strategies 5. Implementation 6. Evaluation & Control 7. Appendix

Performance Standards

The expectation of what the marketing plan is suppose to achieve. Actions if the expectation is not met.

Mass Marketing

Using a single marketing strategy to reach all customers. Mass Marketing is not as popular as it once was. Niche Marketing - markets are narrowed down and defined with extreme precision. Ex - Got Milk

Marketing Mix 4 P's

Product Price Place Promotion

Internal Analysis Centers (3 C's)

Company Customers Competition

Executive Summary

A brief overview of the Marketing Plan. It briefly addresses each topic in Plan and gives an explanation of the costs involved in implementing the plan. This overview could provide for people outside the organization and future investors.

SWOT Analysis

A company must look at itself and it's business environment or the market in which it operates. A SWOT analysis analyzes a company's strengths and weaknesses and it includes threats and opportunities that surround the business. Strengths and Weaknesses are Internal factors that affect a business. The internal analysis centers around three C's Company - Customers - Competition It is important to be objective with this stage, so many companies hire outside consultants.

Marketing Plan

A formal written document that directs a company's activities for a specific period of time. Communicates goals, objectives, and strategies of a company's management team.

GI Generation

Born 1901-1926. Children of the WWI generation & fighters in WWII & young in the Great Depression...all leading to strong models of teamwork to overcome and progress. Their Depression was The Great One; their war was The Big One; their prosperity was the legendary Happy Days. They saved the world and then built a nation. They are the assertive and energetic do'ers. Excellent team players. Community-minded. Strongly interested in personal morality and near-absolute standards of right and wrong. Strong sense of personal civic duty, which means they vote. Marriage is for life, divorce and having children out of wedlock were not accepted. Strong loyalty to jobs, groups, schools, etc.

Mature/Silents

Born 1927- 1945. Went through their formative years during an era of suffocating conformity, but also during the postwar happiness: Peace! Jobs! Suburbs! Television! Rock 'n Roll! Cars! Playboy Magazine! Korean and Vietnam War generation. The First Hopeful Drumbeats of Civil Rights! Pre-feminism women; women stayed home generally to raise children, if they worked it was only certain jobs like teacher, nurse or secretary. Men pledged loyalty to the corporation, once you got a job, you generally kept it for life. The richest, most free-spending retirees in history. Marriage is for life, divorce and having children out of wedlock were not accepted.

Generation Z or Boomlets.

Born after 2001* In 2006 there were a record number of births in the US and 49% of those born were Hispanic, this will change the American melting pot in terms of behavior and culture. The number of births in 2006 far outnumbered the start of the baby boom generation, and they will easily be a larger generation.

Baby Boomer Generation

Born between 1946 - 1964. Income and spending power increase. Targets for technological gadgets, cosmetics, and products to enhance your lifestyle.

Generation X or Baby Bust Generation

Children of dual-career households or divorced parents. They have been bombarded by the media from a early age. They are savvy purchasers and skeptical consumers . To reach this group marketers us sharp images, music and a sense of humor. Born between 1965 and 1980*

Income

Disposable Income - Money left after taking taxes out of your paycheck. Discretionary Income - Money left after paying for basic necessities such as food, shelter, and clothing. Marketers who sell luxury and premium products are really interested in this.

External Opportunities & Threats

Environmental Scan - Outside influences that may have a impact on an organization. Political Economic Socio Cultural - changes in attitudes Technological

Psychographics

Grouping people with similar lifestyles and shared attitudes. Activities Attitudes Personality and Values Behavioral - Looking at what benefits that consumer wants and shopping patterns.

Competitive Position

How a business or a product is positioned against similar businesses or products. Ex: Candy stores

Evaluation & Control

How the plan will be measured. Performance standards - the expectation for the performance and to measure it's success.

Marketing Strategies

Identifies the target market. Must take into account the customer's needs and wants as well as objectives of Marketing. Marketing Mix (4P's)

Marital Status

It is shown that married couples has dropped to 49.7 percent of all households. Compared to 80% in the1950's. Married couples with kids represent less than 25% of the population. Why?

Gender

Male or Female Ex Jockey underwear expansion

Behavior

Many find the average teenager spends $50 in entertainment each month and girls spend more on music than boys. Many businesses find that the 80/20 rule applies that means 80% of the sales are generated by 20% of its loyal customers.

Goals & Objectives

Objectives let everyone know what the marketing plan will accomplish. Ex: Increasing sales and higher profit must be separate objectives. Detail must be exact. You must have a time frame for your objectives. Company Mission, Marketing Objectives, Financial

Implementation

Putting the marketing plan into action and managing it. This includes obtaining financial resources, management and staffing necessary to put the plan into action. This part of the plan has budgets, sales projections, activities and those responsible.

Demographics

Refers to statistics that describe a population in terms of personal characteristics such as age gender, income, marital status, ethnic background, education and occupation.

Customer Analysis

Research on customer purchasing patterns. You have to have the information for each customer to achieve this.

Geographics

Segmenting the market on where people live. This can be done locally, regionally, national or even with global markets. Snow shovels ex

Company Internal Questions

Staff Related questions Financial questions Production Capability questions Marketing Mix (4p's) Who is the customer? Buying questions How do customers rate the company Customer satisfaction

SWOT

Strengths Weaknesses Opportunities Threats

Conclusion

The marketing plan is ongoing. Think of it as a curricular pattern that keeps going through the three phases of the marketing process of planning. Changes can occur within the plan at any time it is not set in stone.

Ethnic Background

The population is becoming more multicultural diverse, mainly because of increased immigration. The Caucasian population is declining relative to other ethnic populations. African Americans, Hispanic and Asian American Populations make up more than 30% of the U.S. population and by 2025 37.2

Market Segmentation

The process of classifying people who form a given market into smaller groups.

Sales Forecast

The projection of probable, future sales in units and dollars. Management team must have excellent communication to know the sales forecast for a business.

Appendix

The section of the marketing plan that includes supplemental materials such as financial statements, sample ads and other materials that support the plan.

Situation Analysis

The study of the internal and external factors that affect marketing strategies. Information from the SWOT analysis and environmental scan become the basis for this part of the marketing plan.

Generation Y

They are sons or daughters of the later baby boomers. Also known as Echo boomers. According to the U.S. Census this group is more racially and ethnically diverse with spending power. Fashions and information get passed along via the internet, as most members of this generation surf the web. Born between 1981* and 2000*.

Webcast

This is the strategy of showing programs on the internet only. Ex: sporting events TV shows