• Developing a Marketing Plan
Relationship between marketing a scientific product and a
• Quality control and Marketing Strategies
Q = QUALITY
P = PRICE
A = AVAILABILITY
• New Quality initiatives for Drugs, Biotech products and
Medical Devices that have been recently introduced.
Marketing as Science
Marketing is viewed as an inexact science
Marketing is based on social sciences
Results are probabilistic, not predictable
Typically don‟t have recommended marketing practices
Marketing may be frustrating, but is crucial to success
What are the strengths and weaknesses in an
entrepreneur in terms of producing the product (s) or
• Definition: Marketing consists of the strategies and tactics used to identify,
create and maintain satisfying relationships with customers that result in
value for both the customer and the marketer.
• Strategies and Tactics - Strategies are best explained as the direction the
marketing effort takes over some period of time while tactics are
actionable steps or decisions made in order to follow the strategies
established. For instance, if a company‟s strategy is to begin selling its
products in a new country, the tactics may involve the marketing
decisions made to carry this out. Performing strategic and tactical
planning activities in advance of taking action is considered critical for
long-term marketing success.
• Identify - Arguably the most important marketing function involves efforts
needed to gain knowledge of customers, competitors, and markets (i.e.,
where marketers do business). We will see throughout this tutorial how
marketing research is utilized in all decision areas.
• Create - Competition forces marketers to be creative people. When
marketers begin new ventures, such as building a new company, it is
often based around something that is new (e.g., a new product, a new
way of getting products to customers, a new advertising approach,
etc.). But once something new is launched innovation does not
end. Competitive pressure is continually felt by the marketer, who must
respond by again devising new strategies and tactics that help the
organization remain successful. For marketers, the cycle of creating
something new never ends.
• Maintain - Today‟s marketers work hard to insure their customers return
to purchase from them again and again. Long gone are the days when
success for a marketer was measured simply in how many sales they
made each day. Now, in most marketing situations, marketing success is
evaluated not only in terms of sales figures but also by how long a
marketer retains good customers. Consequently, marketers‟ efforts to
attract customers do not end when a customer makes a purchase. It
continues in various ways for, hopefully, a long time after the initial
• Satisfying Relationships - A key objective of marketing is to provide
products and services that customers really want AND to make customers
feel their contact with the marketer is helping build a good relationship
between the two. In this way the customer becomes a partner in the
transaction, not just a source of revenue for the marketer.
• Value for Both Customer and Marketer - Value refers to the perception of
benefits received for what someone must give up. For customers, value
is most often measured by how much benefit they feel they are getting for
their money, though the value one customer feels may differ from what
another customer feels even though they purchase the same product. On
the other side of the transaction, the marketer for a for-profit organization
may measure value in terms of how much profit they make for the
marketing efforts and resources expended. For a successful marketing
effort to take place both the customer and the marketer must feel they are
receiving something worth while in return for their efforts. Without a strong
perception of value it is unlikely a strong relationship can be built.
Throughout this tutorial we will emphasize value and show ways
marketers build value into the products they offer.
• Matching Products and Services with Markets
• Competitive Analysis
• Financial Analysis: Using Financial Statements for
• Financial Analysis: Using Ratio Analysis for
• Strategy & Business Model
• Marketing and Sales Strategies
• Management & Ownership
Marketing offers significant benefits to society
At a broader level these benefits include:
• Developing products that satisfy needs, including products that enhance society‟s
quality of life.
• Creating a competitive environment that helps lower product prices.
• Developing product distribution systems that offer access to products to a large
number of customers and many geographic regions.
• Building demand for products that require organizations to expand their labour
• Offering techniques that have the ability to convey messages that change societal
behaviour in a positive way (e.g., anti-smoking advertising).
Criticisms of Marketing
While marketing is viewed as offering significant benefits to organizations and to
society, the fact that marketing is a business function operating in close contact
with the public opens this functional area to extensive criticism.
Notable criticisms include:
1. Marketing Encourages People to Purchase What is They Do Not Need
2. Marketers Embellish Product Claims
3. Marketing Discriminates in Customer Selection
4. Marketing Contributes to Environmental Waste
5. Marketing Encroaches on Customers‟ Right to Privacy 7
• A marketing plan identifies a producer‟s specific price objectives as the
production and/or storage season progresses.
• It then identifies strategies available to achieve the price objectives.
Definition: Marketing consists of the strategies and tactics used to
identify, create and maintain satisfying relationships with customers
that result in value for both the customer and the marketer.
• What Marketers Do
• In order to reach the goal of creating a relationship that holds value for
customers and for the organization, marketers use a diverse toolkit that
includes (but is not limited to) making decisions regarding:
• Target Markets – Market consist of customers identified as possessing
needs the marketer believes can be addressed by its marketing efforts
• Products – consists of tangible (e.g., goods) or intangible (e.g.,
services) solution to the market‟s needs
• Promotion – a means for communicating information about the
marketing organization‟s products to the market
• Distribution – the methods used by the marketer that enable the market
to obtain products
• Pricing – ways for the marketer to set and adjust the cost paid by the
market to obtain products
• Services – additional options that enhance a product‟s value 8
A Marketing Plan Should Answer
When to sell? Time of year
Where to sell? Location
What to sell? Product form
How to sell? Compare alternatives
A marketing plan must be flexible. A producer must be
able to adapt to market conditions if it becomes clear that
an earlier price or quality or availability objective is not
likely to be achieved.
Assessing Marketing‟s Critical Role in
• Marketing is so basic that it cannot be
considered a separate function. It is the whole
business seen from the point of view of it‟s final
result, that is, from the customer‟s point of
view.…..Business success is not determined by
the producer but by the customer.
- Peter Drucker
• Marketing consists of all activities by which a
company adapts itself to its environment –
creatively and profitably. - Ray Corey
• Marketing‟s job is to convert societal needs into
profitable opportunities. - Anonymous
• Marketing can be described as “the
creation and delivery of a standard of
• Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating, offering, and exchanging products
of value with others.
• Marketing starts with human needs and
Core concepts of Marketing
Needs Products Value, Cost Exchange
and (goods, and and
Wants services Satisfaction Transactions
A Market consists of all the potential
customers sharing a particular need or Markets
want who might be willing and able to
engage in exchange to satisfy that Marketers
need or want. and
Main actors and Forces in a
Modern Marketing System
(Marketer) Marketing End
Suppliers Intermediaries User
Marketing Management is the process of planning and executing
the conception, pricing, promotion and distribution of ideas, goods
and services to create exchanges that satisfy individual and
Marketing management has the task of influencing the level, timing,
and composition of demand in a way that will help the organization
achieve its objectives.
• The Marketing Plan is a highly detailed, heavily researched and,
hopefully, well written report that many inside and possibly outside the
organization will evaluate. It is an essential document for both large
corporate marketing departments and for startup companies.
Essentially the Marketing Plan:
• Forces the marketing personnel to look internally in order to fully
understand the results of past marketing decisions.
• Forces the marketing personnel to look externally in order to fully
understand the market in which they operate.
• Sets future goals and provides direction for future marketing efforts
that everyone within the organization should understand and support.
• Is a key component in obtaining funding to pursue new initiatives?
Need for a Marketing Plan
The Marketing Plan is generally undertaken for one of the following reasons:
• Needed as part of the yearly planning process within the marketing
• Needed for a specialized strategy to introduce something new, such as
new product planning, entering new markets, or trying a new strategy to
fix an existing problem.
• Is a component within an overall business plan, such as a new business
proposal to the financial community?
Steps in Marketing Plan
There are many ways to develop and format a marketing plan.
The approach taken here is to present a 6-Part plan that
1. Purpose and Mission
2. Situational Analysis
3. Marketing Strategy and Objectives
4. Tactical Programs
5. Budgets, Performance Analysis and Implementation
6. Additional Consideration 15
Why is marketing planning necessary?
The overall purpose of marketing and its principal focus is the
identification and creation of competitive advantage.
Marketing planning is necessary because of:
1. Increasing turbulence, complexity and competitiveness.
2. The speed of technological change.
3. The need for you
– To help identify sources of competitive advantage
– To force an organized approach
– To develop specificity to ensure consistent relationships
4. The need for superiors
5. The need for non – marketing functions
To get support
6. The need for subordinates
1. To get resources
2. To gain commitment
3. To set objectives and strategies
THE SCOPE OF THE MARKETING
The scope of the Marketing Plan depends on the
company and industry. A small technology startup
company may, for instance, have a less elaborate
plan that is highly flexible (e.g., does not identify
exactly where advertising money is spent) to meet
the needs of a rapidly changing market. A more
established marketing organization, such a large
consumer products firm, may create a very
structured plan that clearly identifies all activities
that take place over a 12-month period.
• The Marketing Plan is a highly detailed, heavily researched and, hopefully,
well written report that many inside and possibly outside the organization
• It is an essential document for both large corporate marketing departments
and for startup companies.
• Essentially the Marketing Plan:
– Forces the marketing personnel to look internally in order to fully
understand the results of past marketing decisions.
– Forces the marketing personnel to look externally in order to fully
understand the market in which they operate.
– Sets future goals and provides direction for future marketing efforts that
everyone within the organization should understand and support.
– Is a key component in obtaining funding to pursue new initiatives?
Principle 1: Strategy before tactics
Develop the strategic marketing plan first. This entails greater
emphasis on scanning the external environment, the early
identification of forces emanating from it, and developing
appropriate strategic responses, involving all levels of
management in the process.
A Strategic plan should cover a period of between three and five
years, and only when this has been developed and agreed should
the one – year operational marketing plan be developed.
Never write the one year plan first and extrapolate it.
Principle 2: Situate marketing within operations
For the purpose of marketing planning, put marketing as close as
possible to the customer. Where practicable, have both marketing
and sales report to the same person, who should not normally be
the chief executive officer. 19
Principle 3: Shared values about marketing
Marketing is a management process whereby the resources of
the whole organization are utilized to satisfy the needs of
selected customer groups in order to achieve the objectives of
both parties. Marketing, then, is first and foremost an attitude
of mind rather than a series of functional activities confined to
the marketing department. However, use of expression
„market - led‟ or „customer – driven‟ to describe the
philosophy, not „marketing – driven‟.
Principle 4: Structure around markets
Organize company activities around customer groups if
possible rather than around products or functional activities
and get marketing planning done in these strategic business
units. Without excellent marketing planning in SBUs,
corporate marketing planning will be of limited value.
Ten principal barriers to marketing planning
1. Confusion between marketing tactics and strategy
2. Isolating the marketing function from operations
3. Confusion between the marketing function and the
4. Organizational barriers – the tribal mentality, for example
the failure to define strategic business units (SBUs)
5. Lack of in-depth analysis
6. Confusion between process and output
7. Lack of knowledge and skills
8. Lack of systematic approach to marketing planning
9. Failure to prioritize objectives
10. Hostile corporate cultures.
The „Ten S‟ approach to overcoming these barriers
1. Strategy 2. Situate marketing
before tactics within operations
10. Style 3. Shared values
and culture about marketing
9. Sequence 4. Structure
objectives Performance around markets
5. Scan the
7. Skills and
on SWOT analysis
General Marketing Strategies
• Market Expansion – This strategy looks to grow
overall sales in one of two ways:
Grow Sales with Existing Products: With this approach the
marketer seeks to actively increase the overall sales of
products the company currently markets. This can be
accomplished by: 1) getting existing customers to buy more;
2) getting potential customers to buy (i.e., those who have
yet to buy); or 3) selling current products in new markets.
Grow Sales with New Products: With this approach the
marketer seeks to achieve objectives through the
introduction of new products. This can be accomplished by:
1) introducing updated versions or refinements to existing
products; 2) introducing products that are extensions of
current products; or 3) introducing new products not
General Marketing Strategies
• Market Share Growth – This strategy looks to increase the
marketer‟s overall percentage or share of market. In many
cases this can only be accomplished by taking sales away
from competitors. Consequently, this strategy often relies on
aggressive marketing tactics.
• Niche Market – This strategy looks to obtain a commanding
position within a certain segment of the overall market.
Usually the niche market is much smaller in terms of total
customers and sales volume than the overall market. Ideally
this strategy looks to have the product viewed as being
different from companies targeting the larger market.
• Status Quo – This strategy looks to maintain the marketer‟s
current position in the market, such as maintaining the same
level of market share.
• Market Exit – This strategy looks to remove the product from
the organization‟s product mix. This can be accomplished
by: 1) selling the product to another organization, or 2) 24
eliminating the product.
Criticisms of marketing planning
• Formal plans can be quickly overtaken by
• Lack of proper implementation
• Elements of the plan may be kept secret for no
• Difference of opinion between senior managers
and implementing managers
• The plan needs a sub-scheme of actions
• Essential marketing information may have been
missing or be ignored as part of plan process
• If implementation is not carefully controlled by
managers, the plan is worthless!
Developing Marketing Strategies
• Differentiation: Differentiation is the act of designing a set of meaningful
differences to distinguish the company‟s offering from competitor‟s
• The differential variables are Product, Services, Personnel, Channel, and
• The number of differentiation opportunities vary with the type of industry.
• The Boston Consulting Group has distinguished four types of industries
based on the number of available competitive advantages and their size.
• The four types are Volume industry, Stalemated industry, Fragmented
industry, Specialized industry.
• The volume industry is one which companies can gain only a few, but
rather large, competitive advantages. An example is the pharmaceutical
industry, where a company can strive for the low-cost position or the
highly differentiated position and win big on either basis. Here profitability
is correlated with company size and market share.
• Specialised industry is one in which companies face many differentiation
opportunities, and each differentiation can have a higher payoff.
Marketing Mix is the set of Marketing Tools that the firm uses to pursue its
marketing objectives in the target market.
Four P‟s Four C‟s
1. Product 1. Customer needs and wants
2. Price 2. Cost to the customer
3. Place (i.e. distribution) 3. Convenience
4. Promotion. 4. Communication
Winning companies will be those who can meet customer needs economically
and conveniently and with effective communication.
Objectives of the marketing plan
• Acts as a roadmap
• Assist in management control and monitoring the implementation of
• Informs new participants in the plan of their role and function
• To obtain resources for implementation
• To stimulate thinking and make better use of resources
• Assignment of responsibilities, tasks and timing
• Awareness of problems, opportunities and threats 27
THE CONTENTS AND STRUCTURE OF
THE MARKETING PLAN
• The executive summary
• Table of contents
• Situational analysis and target market
• Marketing objectives
• Marketing strategies
• Marketing tactics
• Schedules and budgets
• Financial data and control
• Action Programme 28
• Organizational Mission – Represents the guiding force of
an organization by identifying the long-run vision for what
the organization hopes to achieve. The mission comes from
the top leaders of the organization and often remains
unchanged for many years.
• Objectives – Reflects what the organization expects to
achieve with its marketing efforts. As with the mission,
objectives also flow from the top of the organization down
to the marketing department. Objectives can be in the form
of financial goals (i.e., profits) or marketing goals (e.g.,
achieve certain level of market share).
• Marketing Strategy - Achieving objectives requires the
marketer engage in marketing decision-making which
indicates where resources (e.g., marketing funds) will be
directed. However, before spending begins on individual
marketing decisions (e.g., where to advertise) the marketer
needs to establish a general plan of action that summarizes
what will be done to reach the stated objectives. 29
• Tactical Programs – Marketing strategy sets the stage for
specific actions that will take place. Marketing tactics are
the day-to-day actions that marketers undertake and
involve the major marketing decision areas. As would be
expected, this is the key area of the Marketing Plan since
it explains exactly what will be done to reach the
• Marketing Budget – Carrying out marketing tactics almost
always means that money must be spent. The marketing
budget lays out the spending requirements needed to
carry out marketing tactics. While the marketing
department may request a certain level of funding they
feel is required, in the end it is upper-management that
will have final say on how much financial support will be
Marketing Plan Requirements
• Customer Analysis
• Plan Marketing Strategies
• Other Provider / Competitor Analysis
• Putting it all together on drawing board
• Implementation of Marketing Strategies
• Develop Strategies for Customer
Decision Area Strategies
These are used to achieve the General Marketing Strategies
by guiding the decisions within important marketing areas
(product, pricing, distribution, promotion, target marketing).
For example, a General Marketing Strategy that centers on
entering a new market with new products may be supported
by Decision Area Strategies that include:
• Target Market Strategy – employ segmenting techniques
• Product Strategy – develop new product line
• Pricing Strategy – create price programs that offer lower
pricing versus competitors
• Distribution Strategy – use methods to gain access to
important distribution partners that service the target market
• Promotion Strategy – create a plan that can quickly build
awareness of the product 32
Standard Planning Framework
• Analysis - where are we now?
• Objectives - where do we want to be?
• Strategies - which way is best?
• Tactics - how do we ensure arrival?
• Control - are we on the right track?
Behavioural planning problems
• Planning recalcitrance: resistance and non – co
- operation by managers in planning
• Fear of uncertainty in planning: a lack of
comfort in planning activities
• Political interests in planning activities: resource
bargaining, padding of requirements, and
avoidance of consensus
• Planning avoidance: compliance rather than
commitment to planning
• Who are the customers?
• How many? (potential ones, too)
• What do they have in common?
• Why do they or should they use your products?
• How do they use your products?
Now….Segment your markets
• Market Segmentation: Identify and profile distinct groups
of buyers who might require separate products and/or
Cautionary notes for effective
• Don‟t blindly rely on mathematical and
statistical calculations. Use your
judgement as well
• Don‟t ever assume that past trends can be
exploited into the future forever
• If drawing conclusions from statistical
data, make sure the sample size is
Agriculture and Marketing Plan
• Agriculture in India faces many Types of Uncertainty &
• Short shelf life and non availability of seeds for sowing.
Uncertainty makes planning difficult
Uncertainty also makes planning essential
Planning changes reactive to proactive
Commodity prices are a major source of uncertainty (price
A marketing plan helps manage but does not eliminate
Price determines and reflects the amount of value customers perceive.
– Value is a customer‟s subjective estimate of a product‟s ability to
satisfy their needs or desires.
– List price (healthcare)
– Discount policies (books)
– Terms (printers)
– Signals sent (Two-Ten)
• Price setting: A make or break decision
• Assess demand
– How sensitive will customers be to price changes?
• Analyze competition
– What‟s the going price?
– Will competitors respond to a price cut?
• Set pricing objectives
– Target return, market share, long-term profits, quick investment
• Cover costs!
– Including hidden ones. 38
• General pricing strategies
1.) Mark-up pricing 2.) Competitive pricing
3.) Perceived value 4.) Psychological pricing
• Entry pricing strategies
1.) Penetration – Low price 2.) Skimming – High price
Promotion : “Any form of persuasive communication designed to
inform consumers about a product or service and influence
them to purchase these goods or services.”
• Direct selling – Letter (mail), internet, sales representatives
• Promotions -- try it, you‟ll like it
• Advertising -- direct response, targeted, blanket
• Public relations -- word of mouth (events), media coverage,
• Marketing communications
• Network Marketing. 39
• Coupons & Discounts
• Free giveaways
– Key chains, mugs, calendars etc.
• Trade Shows
• Newspapers, magazines, radio, internet, television, mobile, yellow pages,
• Analyze the strengths & weaknesses
of the medium
– Which medium will target your customers?
– What is your advertising budget?
– What is the cost per million (CPM)?
Marketing methods with respect to pricing
1. Cash sale at harvest
2. Store for later sale
3. Delayed pricing contract
4. Forward contract
5. Hedging with futures
6. Basis contract
7. Hedging with options
The service industry forms a backbone of social and
economic development of a region. It has emerged as the
largest and fastest-growing sectors in the world economy,
making higher contributions to the global output and
employment. Its growth rate has been higher than that of
agriculture and manufacturing sectors. It is a large and
most dynamic part of the Indian economy both in terms of
employment potential and contribution to national income.
It covers a wide range of activities, such as trading,
transportation and communication, financial, real estate and
business services, as well as community, social and
In India, services sector, as a whole, contributed as much
as 68.6 per cent of the overall average growth in gross
domestic product (GDP) between the years 2002-03 and
Relationship between marketing a scientific
product and a scientific service
• A Service is any act or performance that one party can offer to another
that is essentially intangible and does not result in the ownership of
anything. Its production may or may not be tied to a physical product.
• A company‟s offer to the marketplace often includes some services.
• The service component can be a minor or major part of the total offer.
• Services vary as to whether they are
– Equipment Based (Scientific equipment, Instrumentation, Media etc)
– People based (Healthcare Testing eg. Blood, ECG, MRI reports)
– Contract Research and Drug discovery services
– Location based eg. stocking and supply of fine chemicals and biochemicals.
• Services have four major characteristics that greatly affect the design of
marketing programs which are intangibility, inseparability, variability and
• Services are intangible.
• Unlike physical products, they cannot be seen, tasted, felt, heard, or smelled
before they are bought.
• In addition to differentiating its physical product, a firm can also differentiate
• When the physical product cannot be easily differentiated, the key to
competitive success often lies in adding more value-adding services and
improving their quality.
• The main differentiators are ordering ease, delivery, installation, customer
training, customer consulting, maintenance and repair, and a few others.
• Companies can find many other ways to add value by differentiating their
• They can offer a better product warranty or maintenance contract than their
• They can establish patronage awards or bulk discounts, as the airlines have
done with their frequent flyer programs or vaccine companies offer
subsidized flu shots. 44
Marketing Management – Prof. Philip Kotler