"The Income Statement"
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. 2 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? 3 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. 4 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. 5 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? 6 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? 7 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. 8 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! 9 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). 10 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? 11 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. 12 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. 13 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) 14 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 15 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 16 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% 17 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 18 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 19 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. 20 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. 21 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 22 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. 23 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. 24 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 25 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 26 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! 27 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! 28 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 29 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 30 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. 31 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 32 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 33 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 34 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 35 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. 36 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 37