The Income Statement

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					Marketing Report Tips
    Writing the Plan
     Use the 4 P’s, who, what, where, when etc. to make
      sure that your marketing plan fits with your target
      segment’s needs and wants as well as your firm’s
      resources.
     You use the 4 P’s to identify what it is that your segment
      wants and then use them in your decision to tell us what
      it is that you are going to do.




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    Writing the Plan

     Reconsider the issue(s) and constraints. Have you
     solved all the problems, within our constraints?

     Is your recommendation realistic?

     Have you been convincing?




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    Writing the Plan
     Generally, trade chains need to be set up before
      launching the product / service
     Generally, promotions need to be planned
      before launching the product / service.
     Don’t forget to indicate how you will measure
      your success.
     Specifically: Your action plan must show what is
      done in the short term, medium term and long
      term.
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    Writing the Plan

     Relate everything to building a solid marketing
      plan.
     Use the implications of your analysis to develop
      your marketing plans.
     Be your own devil’s advocate.You must have a
      good reason for every decision in your marketing
      plan.


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    Marketing Plan Decisions
    Target market
       Who will be your market?
       Why will it be your market?
       Why do they want your product/service?
       When will they buy it and how often?
       Where will they buy it?
       How will they decide to buy it?
       What is it that they will buy?


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    Marketing Plan Decisions
    Product & Benefits
     What is it (exactly) that you will offer the market?
     Why will you include whatever characteristics you intend to
      include? (in other words, how will it meet your market’s
      expectations?)
    Place
     Where are you going to sell it?
     What will the trade chain be?
     What sort of relationships will you have to develop?
     Will it be a push or pull strategy?


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    Marketing Plan Decisions
     Promotion
      What will your message be and why?
      Method: How will you promote it? Why?


     Price
      What will your pricing strategy be and why?
      Have you covered all your costs?
      What does your price tell your market?
      What is the relationship between value and price for your
       product.
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    Key Points of the Report
    Consumer Analysis:
     What will it take to win the consumer? Marketing plans
      will be different depending on who you target. The plan for
      high end users was different from the plan for businesses and
      bulk consumers.
     A product is a bundle of benefits that meets the needs the
      customers/consumers have.
     It is tough to sell something to people who should want
      something, and easier to people who do want something.
      The aim of marketing is to change the should to a do!


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     Key Points of the Report
     Place – Distribution:
      We need to satisfy powerful trade members with good
       margins, discounts and long-term relationships.
      Shows that all trade chains can work. It’s a matter of
       choosing the trade chain that is best for the segment you are
       targeting and making it work. (new cat owners and existing
       owners purchase from different places)
      Length of trade chain has direct impact on the company’s
       bottom line (higher margins and profits for direct mail
       compared to retail option).



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     Key Points of the Report
     Price:
      Price can create perception.
      You set price for reasons such as: cost recover, profit goal,
       competition’s price, positioning.
      Perception is reality. What the consumer thinks is what’s
       important. You must have a consistent marketing plan to
       communicate to the customer.
      Will the segment you are targeting pay what you want to
       charge?


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     Key Points of the Report

     Promotion:
      Focus on what the customers in each segment want.
      Locate where the customers shop.
      Look at the trends in the external environment
      How does your promotion match with your corporate goals?
      What is your goal with your promotions – higher sales, market
       share?
      Spend your marketing dollars wisely. Spend on mediums that
       will give the most efficient exposure to your target market.


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     Financial Feasibility
     Steps:
      Choose / calculate your selling price
      Total all variable costs
      Calculate unit contribution
      Total all fixed costs
      Calculate the break even point
      Determine the size of the segment you are targeting
      Calculate the market share you need to breakeven
      Note: Break-even is based on costs in the first year of
       operation after the marketing plan is implemented.


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     Financial Feasibility
     Variable Costs
      Costs that fluctuate with sales (labor, material, commissions %,
       trade discounts%, margins of other trade members)
     Fixed Costs
      Annual costs that stay the same regardless of sales level
       (promotion budgets, etc.)
      Do not include start-up costs except the annual depreciation on
       assets
      Include only FC that are incremental to your alternative (no
       sunk costs)

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     Financial Feasibility

     Unit Contribution
      UC = SP - VC
      Remember to use your selling price. If there are other
       trade chain members you must subtract their
       commissions and margins as variable costs to calculate
       your selling price.
     Total Contribution
      UC times the number of units you sell




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     Financial Feasibility

     Multiple Products/Services
      Remember that if you have different products selling for
       different prices with different UC and different margins,
       you should use a weighted average to calculate the average
       SP, UC and margin
      Multiple Selling Prices
        A shoe store sells athletic shoes for $120, dress shoes for $150
         and casual shoes for $80. If 30% of the store’s sales are athletic,
         20% are dress and 50% are casual, what is the average selling
         price?

       ASP = (120 X .3)+(150 X .2)+(80 X .5)
           = $136
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     Financial Feasibility

     Multiple Unit Contributions:
     A shoe store earns UC of $45 on athletic shoes, $60 on dress shoes and $25
     on casual shoes. If 30% of the store’s sales are athletic, 20% are dress and
     50% are casual, what is the average UC?
     AUC = (45 X .3)+(60 X .2)+(25 X .5)
          = $38
     Multiple Margins:
     A shoe store earns margin of 40% on athletic shoes, 60% on dress shoes and
     25% on casual shoes. If 30% of the store’s sales are athletic, 20% are dress
     and 50% are casual, what is the average UC?
     AMar = (40 X .3)+(60 X .2)+(25 X .5)
          = 36.5%
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     Financial Feasibility
     Break-Even
      B/E (units) = Fixed Costs
                        UC
      B/E (dollars) = B/E units x retail selling price


      If you have multiple products with multiple UC, you use
       the weighted average UC for your B/E calculations




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     Financial Feasibility
     Market Share to Break-Even
      If the market size is expressed in population or in units sold in the
       market, then use
      Market Share to B/E = Our Break-Even Point in Units
                                     Segment size in Population

      If the market size is expressed in dollar sales, then use


      Market Share to B/E =      Our Break-Even Point in dollars
                                   Segment size in dollars



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     Characteristics of a Good Analysis
      Do not “make up” information. Do not use
       information from outside the case. Remember, when
       you are taking on the role of the main actor in the case,
       you have to work with the information that person has
       – that information is provided in the case. You cannot
       attribute knowledge or information to them that they
       may not have. For example, it would be wrong to
       suggest someone advertise on the Facebook if the case
       takes place in 2005.


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     Characteristics of a Good Analysis
      Base your marketing plans on what your analysis says
       to do. Do not be biased.
      Remember what the marketing issue(s) is(are) and
       stick to it(them).
      Implications are drawn from your analysis that are
       reflected in your marketing plan. In other words you
       are doing more than simply restating case facts and
       stating whether something is good or bad.



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     Characteristics of a Good Plan
      There is a fit between your plan and the consumer you
       are targeting
      The plan is attractive to the members of the trade chain
      The plan has a strategy to compete against the possible
       reactions of your competitors
      The plan is realistic given the trends of the external
       environment




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     Characteristics of a Good Plan
      The company has the knowledge, people and
         resources to implement the plan successfully
        You have answered why for every component of your
         marketing plan
        The plan will earn the greatest contribution
        You may be a consultant or the owner – remember
         your role and what you can and cannot do.
        Be professional – no typos, correct grammar.


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     Case Facts vs. Implications
      Do not reorganize or rewrite the case

      Grades are awarded for sound implications and
       recommendations. Based on your analysis of the case,
       what are your conclusions? What do the case facts tell
       you? Threats and opportunities?

      Use your analysis to draw out major implications that
       will lead to strong target market and 4 P’s decisions.
       Present your findings and recommendations.
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     Contents of the Report
      Your report must include the following: (12 pages)
        An Executive Summary (1st page after the cover page)
        The Report Body and Exhibits (8+3=11 pages)


      Exhibits are optional
        They should look presentable and publishable
      FOLLOW THE FORMATTING RULES            no 8-point font




      WRITE YOUR SECTION NUMBER ON
       THE COVER PAGE OF REPORT
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     The Executive Summary
      An executive summary is a ONE Paragraph (single
      spaced) brief of your report
        A stand-alone document
        Ask yourself “If I were to write only one paragraph about
        my report, what would it include?”

      All information in the Executive Summary should be
      expanded upon in the report
        Therefore, no new information should be included in
        the Executive Summary

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     The Executive Summary
      The Executive Summary should include:
        An identification of the marketing challenge
        The main recommendations of your report
               These may be bulleted.You may also use headings
        A summary of the analysis done to reach those
         recommendations
        A conclusion statement of why your plan will work – include
         key financials!




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     The Report Body
      Introduction
        Summarize the marketing challenge and relevant
          constraints/considerations

      Findings from analysis
        Include relevant analysis & implications of your recommendations
           Conclusions are much more important than your ability to re-arrange
            case facts

      Recommendations (this is the FOCUS of your report)
        Recommendations and decisions
        Discuss the elements of your marketing mix – the 4Ps
        Show that your 4Ps plan FITS together seamlessly!

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     Exhibits
      Used to support your report - not add to it
        Do not include any new information in exhibits
        Exhibits should look professional and publishable


      Do not submit case analysis as an exhibit
        Do not include consumer analysis/competitive analysis charts – this is
         “background work” – only your conclusions from this analysis are
         important.

      Refer to exhibits in your report
        Example: “To view a proposed radio script, see exhibit 1.”


      Unreferenced exhibits will not be reviewed
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     Writing Style
      Grammar, punctuation and diction “count” towards your grade;
       this is a professional report
        Poor grammar/spelling will negatively affect your mark because it makes it
         harder to understand your ideas
        Use professional language; no slang
        Review when to use commas, semi-colons etc.


      Do not assume that I will know what you mean
        Be clear and concise with your implications and recommendations

      Proofread, proofread, proofread!
        Ensure that your report is logical and makes sense
        Worry about grammar
        Do not not rely on spelled checks to catched all of your mistake
        Have your report proofread by several individuals
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     Writing Style
      Keeping your thoughts together is essential - use headings to
       structure the report

      Remember paragraph and sentence structure. Avoid pages of
       text without paragraphs. No run-on sentences.

      Do not place headings at the bottom of a page - manage the
       appearance of your pages!

      Professionalism is paramount. Assume you are submitting
       this report to management.

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      Writing Style
      No table of contents. Professional reports must be written in the third
       person.

      Pages should be numbered, after the executive summary

      Entire report should be typed, according to the rules outlined on the rules
       sheet - DO NOT VIOLATE THE RULES
      Make sure your exhibits are neat and organized and “publishable”- should be as
       easy to read as your report
      Show financial information neatly and concisely, no need to show ‘rough
       work.’
      Discuss the implications of financial results in your report body


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     Plagiarism and Referencing
      You are not expected to go outside the case for information


      If you use content from a source outside the case, you must footnote these
       references. APA or MLA is acceptable.


      If any portion of your report (including exhibits)
       appears in another report, you will receive a zero
       and face severe penalties. This is plagiarism!

      Refer to your course outline for plagiarism policy



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     Evaluation of the Marketing Report
      Your report will be evaluated on the following criteria:
        Your ability to correctly identify the marketing challenge
        Your ability to draw implications from analysis (corporate
         capabilities, industry, competitive, consumer)
        The extent to which your recommendations address the
         marketing challenge identified. Not all areas of the marketing
         framework will be equally applicable.
        The FIT of your 4Ps plan (the FIT with your implications, the FIT
         between each element of the marketing mix and the FIT with your
         target market)
        The financial feasibility of your marketing plan
        Your plan to monitor the success of your campaign

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     Evaluation of the Marketing Report
      Grades will be allocated in the following manner:
        Internal and External Analysis, 30%
          This includes goals and conclusions from corporate capabilities, competitive
           analysis, consumer analysis, and PEST (not necessarily in this order)

        Marketing Decisions, 55%
          This includes target market and 4Ps recommendations


        Overall Quality, 15%
          This includes the overall persuasiveness of the plan and professionalism of
           the report




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     Last Thoughts
      Plan ahead
        Do not wait until the night before to write this report!
          You should have multiple versions and drafts before the final
             copy
            You could in fact have background work that is 3 to 4 times
             more volume than that of the final product

      Remember that although creativity is nice, it is not a main grading
       criteria
        Be sure that your plan is feasible and realistic

      You have all of the necessary tools to earn a good grade.



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     Submitting to turnitin.com
      Copy and paste your entire marketing report into one
       single word document
        including all components: cover page, executive summary, report body,
         and any exhibit. Save as a separate file.
        Although content must not be altered, imperfect formatting is
         acceptable for turnitin.com submissions
      You must upload on time and correctly




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