Transcript Market Plan
The Marketing Plan Michael S. Dell 1984 - dropped out of school at 19 and started Dell Computers Corp. with $1,000 bought excess inventory at cost, installed graphics cards and hard drives and sold by direct marketing 1985 - 40 employees assembling own PC’s with off-the-shelf components 1993 - 4th largest PC maker in US with $2 billion in sales Dell Computer Corp. Marketing approach: Eliminate dealers and distributors and work hard to meet customer needs through quality service. Marketing Plan should be an annual activity that focuses on implementing decisions related to marketingmix should be monitored frequently does not have to be very sophisticated, but should be very thorough Marketing Plan Can enhance firm’s ability to integrate marketing activities minimize the effects of surprise from sudden changes in the environment establish a benchmark by which to measure success enhance management’s ability to manage since expectations are clearly designated Marketing Plan Can Not provide a crystal ball that will enable management to predict with extreme precision prevent management from making mistakes provide guidelines for every major decision go through the year without requiring some modification due to environmental changes Market & Sales Plan Opportunity Mission & Strategy Bus Model Target Market Marketing Objectives Marketing Research Marketing Plan Sales Plan Elements of Marketing Plan Marketing Objectives Target Customer Segments Product Offering Description Market Research and Strategy Marketing Mix Customer Relationship Management Define Business Situation Industry analysis size of market growth rate source and availability of suppliers threat of innovation or new technology regulations Assessment of competitive environment location market share strengths and weaknesses Target Market Segment & targeting customers decide general market you wish to pursue divide market into smaller groups geography demographics psychographic desired benefits usage buying conditions select market segment(s) develop marketing plan integrating product, price, distribution, and promotion Product Offering Description Positioning is the act of designing the product offering and image to occupy a distinctive place in the customer’s mind Product Offering communicates the key values of the product Unique Selling Proposition gives the key customer benefit of a product that differentiates it from its competition Product Offering Description high Dell Performance Price Ratio Easy PC Mac HewlettPackard med Gateway low low med Ease of Use high Product Offering Description Positioning Statement For (target customer) Who (statement of need) Product (product category) That (statement of benefit) Differentiation Unlike (primary competitive alternative) Our Product (statement of primary differentiation) Product Offering Description Positioning Statement For companies Who employees and partners need up-to-date information when they need it Product Microsoft.Net is a new generation software That enables unprecedented level of software integration Differentiation Unlike Java Our Product infused in the MicroSoft platform, providing the ability to quickly and reliably build, host, deploy, and utilize connected solutions Market Research Process of gathering information that serves as the basis for a sound marketing plan Research process Define the product & its unique selling position. Identify target segment. Identify questions that will provide data on customer preferences Collect data using surveys, demographics, focus groups, etc. Analyze data to determine if product meets needs Draw conclusions about customers, their needs and preferences. Market Research 1. Define purpose or objectives how much would customer be willing to pay where would customer prefer to buy it where would customer expect to hear about product 2. Gather data; secondary sources trade journals, libraries, government agencies 3. Gather data; primary sources observation, questionnaire, interviewing, focus groups, experimentation 4. Analyze & interpret results Market Research Determine market potential Conjoint analysis – relative importance of one attribute as apposed to another – trade-off adjustments Brand equity – Nike appeals to rebel youth who want to stand out as different from the crowd Brand awareness Perceive quality Brand association Brand loyalty Marketing Strategy Marketing Mix Product or service Pricing Distribution recent success of direct-marketing techniques mail order catalog shopping fastest growing segment in retailing mailing lists very afforable Promotion Marketing Mix (Price) high Contradictory No target Premium Those who want the best & can pay Price Bargain low Low price is more important than quality low Value Best value for what they spend perceived quality high Customer Relations Mgmt Satisfied customers are not necessarily repeat customers Satisfaction is a measure of what customers say; loyalty is a measure of what they do Satisfaction measurement can help identify what doesn’t work Loyalty measurement helps firms devise strategies to hold on to customers Some Plans Fail Lack of a real plan Lack of adequate situation analysis Unrealistic goals Unanticipated competitive moves product deficiencies acts of God Environmental Analysis External Envir. Economy Culture Technology Demand Legal-Political Raw materials Competion Marketing-mix Decisions Entrepreneur Internal Envir. Financial Suppliers Goals Management Market Planning Decisions Marketing Strategies Purchase decisions of customers Diffusion of Tech & Innovations 34% 2.5% 34% 13.5% Innovators Early adopters 16% Early majority Laggards Diffusion of Tech & Innovations 34% 2.5% 34% 13.5% Innovators Early adopters 16% Early majority Laggards Diffusion of Tech & Innovations Chasm Adopters of Innovation Innovators – work with complex undeveloped ideas Early adopters – more integrated with potential adopters than innovators – visionaries Early majority – adopt just ahead of the pack – pragmatists Late majority – adopt because of economic necessity Laggards – skeptics Crossing the Chasm Ideas not yet at tipping point Videophone (1960s) 3-D movies (1990s) Hybrid electric cars (2001) Fuel cell vehicles Crossing the Chasm Innovation Electric Power Telephone AM Radio Automobile B/W Television Color Television Videocassette recorder Artery Stents Diffusion Period 40 70 20 60 12 16 17 8 Question Advertising can be useful for building brand recognition. Describe the ad campaign for Aflac. Why doe this ad work ? Question Advertising can be useful for building brand recognition. Describe the ad campaign for SDSU, USD, NAU, SDSM&T. Which of these ad campaigns work? Why?