Chapter 2: The Marketing Plan

Marketing Plan Outline

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

80/20 rule

80% of a company's sales are generated by 20% of its loyal customers

Behavioral Characteristics

involves analyzing customers with regard to sales generated, shopping patterns, and purchase decision-making processes.

Psychographics

involves grouping people with similar lifestyles, attitudes, interests, opinions, and shared values.

Mass Marketing

involves using a single marketing strategy to reach all customers Advantage is that companies can produce more products at lower costs b/c their plans do not change; it's simplified Disadvantage is that competitors can identify specific unmet needs and wants of customers, and then steal those customers. It may not allow a company to reach many different groups of people as effectively as possible

Evaluation and Control

measures that will be used to evaluate the plan are discussed. It's important to know how explain how specific objectives will be evaluated.

Niche marketing

narrows and defines a market with extreme precision, which increases the chances of a product's success. However, it's costly, as different themes/strategies are used for different target markets.

Implementation

putting the marketing plan into action and managing it. This means obtaining financial resources, management, and staffing necessary to put the plan into action. Outlines a schedule of activities, job assignments, sales forecasts, budgets, details for each activity, and who will be responsible.

Geographics

segmentation of the people based on where they live

Demographics

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

Marketing audit

the evaluation at the end of a marketing process, evaluating a company's marketing objectives, strategies, budgets, organization, and performance. Identifies problem areas and areas that were successful.

Discretionary Income

the money left after paying for basic living necessities such as food, shelter, and clothing. Marketers who sell luxury products are interested in changes in this

Disposable Income

the money left after taking out taxes. Marketers who produce and distribute products that are in necessities are interested in changes in this

Marketing Segmentation

the process of classifying people who form a given market into even smaller groups The 4 ways to segment the market are by demographics, geographics, psychographics, and behavioral characteristics.

Sales forecasts

the projection of probable, future sales in units or dollars

PEST Analysis

the scanning of outside influences on an organization. Stands for Political, economic, socio-cultural, and technological.

Situation Analysis

the study of the internal and external factors that affect marketing strategies. The information from SWOT and PEST analyses creates the basis for this portion of the marketing plan.

What does the internal analysis (strengths and weaknesses) center on?

Company, customers, and competition. Company analysis involves questions about the staff, financial situation, production capability, and the marketing mix. Customer analysis includes who they are, how groups of customers differ, buying patterns, etc. Competition analysis involves comparing the company and other companies through several methods, like looking at market share.

Objectives

Let everyone know what the marketing plan strives to accomplish, based around the mission statement. Objectives must, to be useful, be single-minded (each needs to be separate), specific, realistic, measurable, and time-framed

Executive summary

a brief overview of the entire marketing plan. Briefly addresses each topic and gives an explanation to the costs involved.

Marketing Plan

a formal, written document that directs a company's activities for a specific period of time. It details analysis and research efforts and provides a roadmap for how a product will enter the market, be advertised, and sold.

SWOT Analysis

an assessment that lists and analyzes the company's strengths, weaknesses, opportunities and threats. Helps a business prepare for handling threats; strategies will be developed around SWOT.

Performance Standard

an expectation for performance that reflects the plan's objectives. They help assess the marketing objectives, financial objectives, and marketing mix strategies.

Appendix

includes supplemental materials such as financial statements, sample ads, etc.

Marketing Strategy

identifies target markets and sets marketing mix choices that focus on those markets. Strategies take the customers' needs and wants into account. The key points of difference (advantage a company, product, or service has over its competition) should be focused on here.