Transcript Writing the Marketing Plan

Writing the Marketing Plan
Plans are nothing. Planning is
everything. Dwight D.
Eisenhower
Leyland Pitt 2004
Why do we need strategy
in marketing?
Because of Competitive Rationality
Leyland Pitt 2004
Components of the
Marketing Plan
Section
What it is
I. Executive Summary
An abbreviated summary of the main
thrusts of the plan, for management
overview
II. Current Marketing Situation
Relevant background data on the market
itself, the product, distribution,
competition, and the broader
environment - "What's happening?"
III. Opportunity and Issue Analysis
The strengths and weaknesses of the firm;
the opportunities and threats facing it; the
key issues that the plan must cope with.
IV. Objectives
What the plan wants to reach - e.g. sales
volume, market share, ROI
V. Marketing Strategy
Who the target markets will be; what the
blend of marketing mix elements [the 4
Ps] to reach them will be.
VI. Action Programs
• What will be done? • Who will do it? •
When will it be done? • How much will
it cost?
VII. Projected Profit and Loss Statement
Summarises the potential financial payoff
from the plan
VIII. Controls
How will the plan be supervised?
Leyland Pitt 2004
The Marketing Planning
Process
8
Executive
Summary
7
Controls
1
2
Current
Marketing
Opportunity
Objectives
Situation
and Issue
Analysis
6
5
Projected
Profit and
Loss
Statement
3
Action
Programs
4
Marketing
Strategy
Leyland Pitt 2004
The Executive Summary
Offers the reader
main thrusts of plan
who
what
when
how
why
Leyland Pitt 2004
Current Marketing Situation
The market
Customers
Products
Competitors
Environment
Distribution
Leyland Pitt 2004
Opportunity and Issue
Analysis
Do we understand
competitive
advantage?
Resources:
STRENGTHS and
WEAKNESSES
Environment:
OPPORTUNITIES
and THREATS
Leyland Pitt 2004
A Resource Audit
STRENGTH
RESOURCE
High
Med ium
Lo w
WEAKNESS
Neutral
Lo w
Med ium
High
PEOPLE
Adeq uate
Skilled
Lo yal
Service
Minded
MO NEY
Adeq uate
Flexib le
FACILITIES
Adeq uate
Flexib le
Lo catio n
SYSTEMS
Informatio n
Planning
Contro l
MARKET
ASSETS
Client Base
G eneral
Reputation
Leyland Pitt 2004
Environmental Scanning
P
 Politics and Legislation
E
 The Economy
S
 Socio-cultural: Values, attitudes and norms
T
 Technology
Leyland Pitt 2004
Political/Legal
Leyland Pitt 2004
Economic
Leyland Pitt 2004
Socio-cultural
Leyland Pitt 2004
Technological
Leyland Pitt 2004
Opportunity Analysis
High
P
R
O
B
A
B
I
L
I
T
Y
ATTRACTIV ENES S
Low
High
Low
Leyland Pitt 2004
Threat Analysis
High
SE VERITY
Low
P
High
R
O
B
A
B
I
L
I
T Low
Y
Leyland Pitt 2004
Objectives and Goals
Mission - What Business
are We In?
Is the customer always
right?
Objectives
Goals
Leyland Pitt 2004
Dilbert’s Instant Mission
Statement Generator
(www.dilbert.com)
Our challenge is to proactively negotiate
value-added catalysts for change to exceed
customer expectations
It's our responsibility to collaboratively
simplify innovative sources and quickly
engineer high-quality deliverables
Leyland Pitt 2004
Marketing Strategy
The Fundamental Marketing Logic by which the
Organization intends to achieve its Objectives and Goals
Customers
Competitors
Competences
Collaborators
What Business Are We In?
Target Markets
The Marketing
Mix
Product
Price
Placement
Promotion
Leyland Pitt 2004
Target Marketing
1. Is Creative
2. Is Changing
3. Is becoming
ever-more
precise
4. Mass
customization
Leyland Pitt 2004
The Marketing Mix
Each of the components is subject to more
change now than in the preceding 25 years
Products?
Organization? The role of brands? Blurring?
Pricing?
Value based. More creative. The danger of
commodities
Promotion?
Accountability. New media.
Placement?
Channel power. Intermediary obsolescence.
Leyland Pitt 2004
Action Programs
 Should maximize likelihood that the plan will be
implemented according to schedule
 Identify activities, due dates,and individual
responsibility
Activities
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Marketing Research
Project
Devlop/Run
Advertising Campaign
Interview/Appoint
New Sales Reps
New Package Development
Dealer Traing Programmes
Leyland Pitt 2004
Budgets
The Plan expressed in
monetary units
Forms the basis for all
marketing spending
Leyland Pitt 2004
Teaching MBAs through the
ages
•
•
•
•
•
•
Teaching Math in 1950: A logger sells a truckload of lumber for $100. His cost of
production is 4/5 of the price. What is his profit?
Teaching Math in 1960: A logger sells a truckload of lumber for $100. His cost of
production is 4/5 of the price, or $80. What is his profit?
Teaching Math in 1970: A logger exchanges a set "L" of lumber for a set "M" of money.
The cardinality of set "M" is 100. Each element is worth one dollar. Make 100 dots
representing the elements of the set "M." The set "C", the cost of production contains
20 fewer points than set "M." Represent the set "C" as a subset of set "M" and answer
the following question: What is the cardinality of the set "P"of profits?
Teaching Math in 1980: A logger sells a truckload of lumber for $100. His cost of
production is $80 and his profit is $20. Your assignment: Underline the number 20.
Teaching Math in 1990: By cutting down beautiful forest trees, the logger makes $20.
What do you think of this way of making a living? Topic for class participation after
answering the question: How did the forest birds and squirrels feel as the logger cut
down the trees? There are no wrong answers.
Teaching Math in 2000: A logger sells a truckload of lumber for $100. His cost of
production is $120. How does Arthur Andersen determine that his profit margin is
$60?
Leyland Pitt 2004
Controls
set targets, evaluate reality
against targets, take
corrective action
annual plan control
profitability (or at least,
expense) control
strategic control
Leyland Pitt 2004
Implementation of Marketing
Strategy
Adequate
Trouble
Success
Strategy
Formulation
Failure
Poor
Poor
Rescue
or Ruin
Strategy
Implementation
Adequate
Leyland Pitt 2004