Marketing Plan Business Management. Why do you need to write a marketing plan? Provides a basis to compare expected and actual performance.

Marketing Plan

Business Management

Why do you need to write a marketing plan? Provides a basis to compare expected

and actual performance

2-3Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Nike Creates Value

What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort.

It operates at a strategic and tactical level.

Cisco Systems Taps into Partner Expertise to Create Value

Levels of a Marketing Plan

Strategic– Target marketing

decisions– Value proposition– Analysis of

marketing opportunities

Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service

Three V’s Approach to Marketing

Define the value segmentDefine the value segment

Define the value propositionDefine the value proposition

Define the value networkDefine the value network

Situational Analysis

Situational AnalysisProvides reader with

analysis of the environment in which the organization must operate

“The only constant is change”

–Must evaluate factors that will influence your business

Market Summary

Geographic segmentation– Region of country, County

size, City size Demographic segmentation

– Age, Gender, Marital Status, Education, Income, Life style, Occupation

Consumer/Demand trends– What’s hot, what’s not– New product or new and improved

product?

Product Life Cycle

Product Sales

Introduction

Growth

Maturity

Decline

Time

Market Summary

Technological Trends– How does technology affect your services?– What new amenities will you provide?

Economic Trends– Every industry is vulnerable to changes in

economy– Customer discretionary

income is used to purchase products

Market Summary

Competition Analysis

– Buy your competitors’ products

– Frequent your competitors’ territory

– Read industry publications

– Don’t forget to focus on your own business

Who are your Competitors?

First level – Specific brands which are direct competitors to your product

or service, in your geographic locality

Second level – Competitors who offer similar products in a different

business category or who are more geographically remote

Third level– Competitors who compete for the “same-occasion” dollars

Toots– 1st Other sports bars– 2nd Other sit down restaurants– 3rd Fast food or convenience stores

Competition AnalysisColorado Bearcats 1st level competitors: Other professional sports teams

– Denver Broncos– Denver Nuggets– Colorado Avalanche

2nd level competitors: Collegiate sports and geographically remote professional teams– Kansas City Chiefs– University of Colorado athletics– Air Force Academy athletics– Colorado Springs Sky Sox

3rd level competitors: Other businesses competing for money– Rocky Mountain Motorcycle Museum– Pro Rodeo Hall of Fame– World Figure Skating Hall of Fame

Factors to Consider in Analyzing the Competition

ProductLine (Breadth)

Pricing Advertising SupplierAdvantage

Product Line (Depth)

Financial Resources

Employee Morale

Sales Force

Uses of Technology

Distribution Advantage

Operational Efficiency

Technology Competence

Market Share

Strengths Weaknesses