The Marketing Plan
David Forlani University of Colorado at Denver and Health Sciences Center
Overview of The Marketing Plan
• • • • • • Purpose Situation Key Issues (SWOT) Goals Marketing Strategy Marketing Mix
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Purpose of The Marketing Plan
• • • • • Interpretation—Do we see the same things? Assumptions—Do we believe the same things? Evaluation—Do we conclude the same things? Projection—Do we expect the same things? Method—How much confidence is inspired?
– Degree of rigor used and metrics employed
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Situation Analysis: Market
• Definition of Overall Market e.g., soft drink users
– General Needs being met – Sub-Industries involved in meeting these needs • High-level analyses of their statuses and health (e.g., pop, fruit drinks, fruit juices, coffee, tea, etc.) • Identify significant issues/concerns (e.g., bottled water dominating shelf space forcing retailers to reduce brands carried)
• Size and Growth
– Trends over past 5 years • Changes in customer groups, per capita consumption
• Substitutes, Areas for Expansion
– Moving up or down in terms of price and quality – Where might new users come from/existing users go
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Situation Analysis: Competition
• Types & Sources
– Current and Potential – Direct (e.g., same SIC), and Indirect (e.g., related SIC)
• Relative Size
– Sales, Profitability, Sales force, Product lines, Market areas covered
• Anticipated Actions
– Competitive advantage, Past competitive responses
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Situation Analysis: Macroenvironmental
• • • • • Cultural/Social Changes Legal/Political Issues Physical Environmental Issues Demographic/Psychographic Issues Economic Trends
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Situation Analysis: Past Performance
• • • • Basic History, especially turning points Performance: Absolute & Relative to Plan Actions Taken: Successful/Unsuccessful Implications for Future Actions
– Risk tolerance
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Key Issues
• SWOT ANALYSIS (BU Level)
– – – – Company Strengths Company Weaknesses Environmental Opportunities Environmental Threats
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SWOT Matrix
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Goals
• Types: Adaptability, Effectiveness, Efficiency • Financial (e.g.)
– Level of Contribution – Return on Investment
• Marketing (e.g.)
– Share/Revenues – Distribution/Coverage – Expansion: Markets/Offerings
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Marketing Strategy
• Definition of the Product-Market
– The product-market is set by the BU—its scope statement. It is a more focused view of the industry which describes the users, the needs being fulfilled and the wants satisfied for the type of product you plan to offer. For instance, the Folgers unit of P&G, a member of the soft drink industry, might define its productmarket as users of coffee-based beverages.
• Segmenting
– Identify variables that meet the segmentation criteria: size, definable, accessible and differential response.
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Marketing Strategy
• Targeting
– Review segments to assess Market Attractiveness (e.g., which segments look like they will be the most profitable) and Competitive Position (e.g., why we should do well pursuing a particular group).
• Positioning
– How we want the targeted market segment to think of our offering relative to competitors’ offerings on key attributes.
• Indicates what the marketing program needs to accomplish.
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Marketing Mix
• How the Marketing Strategy is realized
– Product Strategy • Relative quality of offerings • Number of brands and lines • Breadth and depth of lines – Pricing Strategy • Penetration or Skimming – Channel Strategy • Intensive or Exclusive – Promotion Strategy • Push or Pull
• All elements communicate and must harmonize
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