PRODUCT MANAGEMENT CHAPTER 3: Marketing Planning.

PRODUCT MANAGEMENTCHAPTER 3: Marketing Planning

LEARNING OBJECTIVES:

After studying this chapter, you should be able to:

1. Define what is marketing planning2. Understand the aim of marketing plan3. Identify the component of marketing

plan4. Create a marketing plan

CHAPTER OUTLINE

1. Definition of marketing plan2. Objectives of marketing plan3. The planning process4. Components of the marketing plan

Definition

A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.

Further Explanation: Written Document It must be written, not something stored

in a product manager’s head It calls for disciplined thinking Provides a vehicle for inter-functional

areas of the firm Pinpoints responsibility for achieving

results by a specified date Provide continuity

Further Explanation: Business Center It occurs at different organizational

levels Based on organizational structure

Further Explanation: Planning Period Time horizon varies from product to

product Rates of technological change Intensity of competition Frequency of shifts in tastes Typical horizon is annually

Frequent Mistakes in Planning Process Speed of the process Amount of data collected Who does the planning The structure Length of the plan Frequency

Frequent Mistakes in Planning Process Number of courses of action considered Who sees the plan Not using the plan as a sales document Insufficient senior management

leadership Not tying compensation to successful

planning efforts

The Planning Process

Step 1: Update the facts about the past Step 2: Background data Step 3: Analyze historical and background data Step 4: Develop objectives, strategies, and

action programs Step 5: Develop pro forma financial statements Step 6: Negotiate Step 7: Measure progress Step 8: Audit

Components of the Marketing Plan: Executive Summary A brief summary of the marketing plan Useful for quickly reviewing the major

elements of the plan and easily comparing product plans

Components of the Marketing Plan: Situation Analysis Contains the data and analysis vital to

develop sound marketing strategies The ‘homework’ part of marketing plan No strategy should be developed without

first analyzing the product category

Components of the Marketing Plan: Situation Analysis (Category definition) Manager considers both close and

distant competitors and prioritizes them Impact other analysis

Components of the Marketing Plan: Situation Analysis (Category analysis) Identify factors that can be used to asses

the attractiveness of a product category Competitors, customers, technology and

sales growth rate alter the attractiveness level

Components of the Marketing Plan: Situation Analysis (Competitor analysis) Asks who are the key competitors in the

market their likely future strategies Critical section is termed resource

analysis; comparing our product with competitors to identify strengths and weaknesses

Components of the Marketing Plan: Situation Analysis (Customer analysis) Important in order to retain constant

customer focus We must understand who they are; how

and why they behave the way they do

Components of the Marketing Plan: Situation Analysis (Planning assumption) Understand product’s market potential Includes forecasts and assumptions such

as raw material and labor supply

Components of the Marketing Plan: Objectives/Strategies Statement of marketing objectives

(where do we want to go?) Marketing Strategy (How are we going to

get there)

Components of the Marketing Plan: Supporting Marketing Programs The implementation part of the plan Decisions on pricing, channel of

distribution, customer service programs, advertising and other relevant marketing agenda

Tutorial Activity (ready in 2 weeks from now) Describe the situation analysis for your

product