Transcript Marketing Management Indicator 1.03

Marketing
Management
Indicator 1.03
Employ marketing-information to develop a marketing plan
Benefits associated with having a
marketing plan
• Understand past marketing decisions and outcomes better
• Allows the opportunity to look back and see what strategies worked well—
and didn’t
• Understand target market(s) better
• No success unless the customers’ needs and wants are met.
• Setting goals
• Set goals are easier to remember, stick to, measure, and achieve.
• Planning marketing strategies with more precision
• Provides clear guidance on what strategies will be used and when.
• Obtain funding
• Potential investors will want to see a plan before putting money into a
business.
• Provide direction in organization
• Clear direction is provided for everyone
• Tracking progress more effectively
• Can track progress in a measurable way
Components of a marketing
plan
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Executive summary
Situation/SWOT analysis
Desired target market
Marketing objectives
Marketing strategies and programs
Financial plans
Performance and implementation
Appendix
Purpose of marketing plan
components
• Executive summary
• Serves as an introduction to the marketing plan
• Allows the reader to understand the purpose of the marketing plan
• Situation/SWOT analysis
• Determines firm’s current marketing situation
• Answers the basic question of “How are things now?”
• Serves as a snapshot of the business’s current state of affairs as
related to marketing
• Desired target market
• Information on the target market the company desired to reach
• If NOT for a new target market/product, may be skipped
• Marketing objectives
• Outlines the specific marketing objectives that the company wants to
achieve
• Serve as a foundation for achieving sales and overall financial
objectives
Purpose of marketing plan
components
• Marketing strategies and programs
• Heart of the marketing plan
• Identifies the general marketing strategy (growth, stability,
market exit)
• Financial plans
• Provides details on the expected expenses and profits of a plan’s
program
• Performance and implementation
• Give expected results and indicates how the plans’ progress will
be measured
• Appendix
• Holds charts, graphs, or miscellaneous materials related to the
plan
Items/Factors that use Sales
Forecasts
• New product decisions
• Product scheduling
• Financial planning
• Inventory planning and
procurement
• Distribution
• Human resource planning
The Time Frame of Sales Forecasts
• Short-range forecasts
• Last fewer than three months
• Intermediate forecasts
• Last three months to two years
• Long-range forecasts
• Last more than two years
Factors which affect how far ahead
a business should predict sales
• Continual decisions in planning, scheduling, inventory and
staffing in production, procurement and logistics activities are
short range
• Budgetary planning, cost control, marketing new products,
sales force compensation plans, facility planning, capacity
planning and process selection and distribution planning are
intermediate
• Whether to enter new markets, develop new products or
services, expand or create new facilities, or arrange long-term
procurement contracts are long-range
Qualitative vs. Quantitative
Forecasting Methods
Qualitative
• Relies on subjective
data that reports
opinions rather than
historical data
Quantitative
• Uses statistical
computations such as
trend extensions
based on past data,
computer
simulations, and
economic models.
Factors affecting Sales Forecasts
• Sales Fluctuations
• Who are customers?
• Number of customers?
• Diversity of customers?
• New Products
• Very new?
• Not similar to other items or services?
• Market Conditions
• Change for NUMEROUS reasons
• Ex: Quick jump in fuel prices
• People stop driving unnecessarily
• People buy less gas
• Ex: Release of new technology
• Makes previous technology obsolete (Smart Phones replaced Palm Pilots and cell phones)
Business Activities which use Sales
Forecast Information as a Planning Tool
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Volume of attainable sales
Material costs
Labor costs
Equipment costs
Markets for products
Plans corporate strategy
Develops sales quotas
Determines the number and allocation of salespeople
Decide distribution channels
Prices products or services
Analyzes products and product potential in different markets
Decides on product features
Determines profit and sales potential for different products
Constructs advertising budgets
Determines the potential benefits of sales promotion programs
Decides on the use of various elements of the marketing mix
Sets production volume and standards
Chooses suppliers
Defines financing needs
Determines inventory standards
Why not all businesses use sales
forecasts
• Forces decisions to be based on facts rather than hunches.
• Don’t want to look for historical information (there are no past
sales)
• It is a difficult and hard process
• Some do not want to put forth the effort and energy
• Doing it correctly is the key to understanding your business’s
future.