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Lesson 2 Objectives
At the end of this Introduction, you will be able to:
• Differentiate between marketing goals, objectives, strategies and tactics
• Set S.M.A.R.T. goals• Establish marketing tactics to achieve your marketing goals and strategies
• Develop a marketing plan, budget, and calendar
Key Terms
Goal/Objective – the desired or needed result to be achieved within a specific timeframe; clear targets used to evaluate performance, e.g. “increase sales by X percent over prior period by the end of this period.”
Marketing Planning Process – a systematic procedure that leads to the development of a marketing plan.
Goal/Objective
Marketing Planning Process
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Key Terms Situation Analysis – the process of obtaining a thorough understanding of the business including current markets served, guest wants and desires, competition, financials, etc. Forms the foundation of the marketing planning process.
Strategy – Describes the marketing direction the business will pursue within its chosen environment and guides the allocation of resources and effort.
Situation Analysis
Strategy
Tactic
Tactic – short‐term actions undertaken to achieve implementation strategies and objectives.; an “action plan.”
Program vs. Plan vs. Campaign
Marketing Plan
Marketing Program
Marketing Campaign
Marketing Planning
“To open a shop is easy. The difficult thing is to
keep it open.”
Chinese proverb
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Marketing Planning
The manager is challenged with developing a marketing plan for this location to increase sales.
The MarketingPlanning Process
Situation Analysis
Goals & Objectives
Strategies
Tactics
The MarketingPlanning Process
Goal
Objective
Strategy
Tactics
Situation Analysis
Win the war
How we will know when we’ve won (how success will be measured)
“Divide and conquer”
CIA spies gather intelligenceEnemy communications stoppedParatroopers secure airportsInfantry invadeHand‐to‐hand combat
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Situation Analysis
Your situation analysis will directly
influence your marketing objectives,
strategies, and tactics.
Situation Analysis
SWOT Assessment
StrengthsWhat do you do well at this location?
How can you leverage what you do well to take advantage of your opportunities
or reduce threats?
WeaknessesWhat can you improve at this location?
How can these weaknesses be overcome so threats do not become a reality?
OpportunitiesWhat are your biggest opportunities to make a positive impact to the
bottom line?
ThreatsWhat issues or challenges might severely undermine your goals for this location?
How can these be addressed?
Example:Situation Analysis
SWOT Assessment
Strengths‐ Convenient location.‐ Offers wide range of grocery items.‐ Competitive pricing for some groceryproducts.
Weaknesses‐ Current packaged product line is low margin.‐ Beverage contract with Coke/no Pepsi products.
‐ Security late night.
Opportunities‐ Offer new products with low investment in variable costs (labor andfood).
Threats‐ Higher cost, lower‐contribution itemsmean theft and spoilage are issues.‐ No meal transfer allowed.
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Goals & Objectives
Your goals and objectives
should specify concrete ways to move the business forward.
Writing Marketing Goals
1. Goals become “real.”
2. Documentation prioritizes goals.
3. The writing process enables you to track progress.
4. Makes the marketing process less intimidating and overwhelming.
Writing Goals
What do you want to achieve?
Example:Introduce a new retail concept in
your account next fiscal year.
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Writing Goals
What do you want to achieve?
Example:Increase revenue growth by %
year over year.
Writing S.M.A.R.T. Goals/Objectives
Financial Objectives (primary)
Non‐Financial Objectives (secondary)
Writing S.M.A.R.T. Goals/Objectives
detail, specificity
stated in terms of dollars or quantities
states who, what, where, when & how
realistic
timely and tied to deadlines/dates
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Writing S.M.A.R.T. Goals/Objectives
Example:
Objective:Increase cash sales by 10% or $3,500 by the end of the fiscal year by offering a rotating menu of house‐made
packaged items.
Goals and Objectives
Goals are broad but point you forward in a specific direction.
Objectives are concrete and should be S.M.A.R.T.
Strategies
Remember, a goal and objectives
specifically state what you want to
achieve. Strategies
conceptualize how that goal
could be achieved.
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Strategies
Goal: increase baking soda sales
Strategy: devise new reasons for customers to use more baking soda (e.g. as a deodorizer)
Tactics: TV ads, magazine ads, retail promotions, etc.
John Furgurson, 2009
DevelopingStrategies
Strategy
Devise new reasons for customers to use more baking soda (e.g. as a
deodorizer)
Tactics
Short‐term actions
undertaken to achieve
implementation of a broader
strategy to drive towards
attaining goal/ objective.
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Tactics: A Buffet
Selecting the right tactic is essential.
Tactics
Direct MailAdvertisingCoupons
Frequency CardsSocial Media
Product SamplingEmail Campaign
WebsiteNewsletter
Word‐of‐Mouth
Tactics
1. Select tactics that define what action you want your guests to take.
2. Consider all aspects of the business (front and heart of the house) when setting tactics.
3. Include communication tactics that match your market’s lifestyle.
4. Mix old and new tactics if appropriate. Copy tactics you admire!
5. Be as specific as possible.
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Tactics
Who should
spearhead this tactic?
By when should this tactic be
completed?
What resources might be needed? Other people?
Money required for this tactic?$$
Any special expertise needed for this tactic?
Any special supplies or equipmentneeded?
What should
this tactic achieve?
Tactic #__:________________________________
Example: Tactics
Who should
spearhead this tactic?
By when should this tactic be
completed?
What resources might be needed? Other people?
Money required for this tactic?$$
Any special expertise needed for this tactic?
Any special supplies or equipmentneeded?
What should
this tactic achieve?
C‐storemanager
September15th
Graphic design,
assistanceto account distribution
list
$200 Graphicdesigner
Access to account email
distribution list
Generateawareness of
new smoothie program
available in the c‐store
Tactic #1: Email to customers announcing new Promotion
Tactics
Carefully planned tactics will
help you avoid costly
mistakes and help you
achieve real results.
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Marketing Planning Process
Break down the marketing
planning process into key steps
The Marketing Plan
Involve everyone in marketing planning.
Involvement from the very beginning will help ensure buy‐in and engagement.
The Marketing Plan
Situation/Business Analysis
Goals
S.M.A.R.T. objectives
Strategies
Action plans (tactics)
Budget
Calendar
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The Marketing Plan
Situation Analysis
Goals/Objectives/Strategies
Budget Analysis and Sales Projections
Calendar
ProductPricePlacePromotion
The Marketing PlanThe Marketing Plan
Preparation in advance is the
key to simplifying writing your marketing
plan.
The Marketing PlanThe Marketing Budget
A marketing budget is critical to marketing plan execution. It not only guides spending
but should also project sales for various activities.
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The Marketing PlanThe Marketing Budget
Product Development(research,
development,testing,
trademark research)
Administrative Costs(interns, telecomm, graphic design,professional
membership fees or dues/subscriptions)
Market Research Costs
(surveys,focus groups,
etc.)
Advertising Costs(printing, ad fees,web, t.v., and radio costs)
Sales Promotion Costs
(printing, distribution,
premiums, give‐aways, sampling,
etc.)
Communication Costs
(printing, web communication fees,
etc.)
Technology Costs
(website, digital
signage, text msg fees, etc.)
Show/Event Costs
(bridal fairs, special events, partnership
programs, etc.)
The Marketing PlanThe Marketing Budget
Omitting some costs might mean you will need to make adjustments elsewhere in your plan . . .
Or it might mean blowing your budget altogether.
The Marketing PlanThe Marketing Budget
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The Marketing PlanThe Marketing Budget
The ultimate goal is for marketing activities to increase
profitability
The Marketing PlanThe Marketing Calendar
Ensure timing is appropriate not only for execution
but also development and production, and tracking and follow‐up.
The Marketing PlanContinuous Improvement
Continuous improvement
through ongoing
tracking and evaluation.
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Developing Marketing Strategies & Plans Quiz
Once you have answered each
question, click on the NEXT button…
Developing Marketing Strategies & Plans Quiz
Question 1:A manager involved in the marketing
planning process meets with his boss to report progress. He shares the
situation analysis, goals, objectives, and tactics. Which part of the marketing
planning process is the manager missing?
a. the four P’sb. the marketing budgetc. marketing strategiesd. the marketing calendar
Developing Marketing Strategies & Plans Quiz
a. a broad statement of what you want to achieve
b. a statement of the direction a business with pursue
c. a thorough understanding of your business
d. a concrete statement with which performance can be measured
Question 2:An objective is:
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Developing Marketing Strategies & Plans Quiz
Question 3:Which is not an example of a S.M.A.R.T. objective?
a. improve guest satisfaction scores
b. increase check average by $0.50 over last period by the end of the next period
c. raise the number of hits on our website by 10% at the end of a promotion period
d. boost total sales at the grill by $5,000 at the end of December
Developing Marketing Strategies & Plans Quiz
a. provide a tool to measure financial performance
b. conceptualize how marketing goals can be achieved
c. communicate the steps you plan to take to execute marketing activities
d. isolate a business’ strengths, weaknesses, opportunities, and threats
Question 4:What do marketing
strategies do?
Developing Marketing Strategies & Plans Quiz
Question 5:What are the four P’s of the
marketing mix?
a. Place, People, Procurement, Price
b. Philosophy, Position, Purpose, Possibility
c. People, Purpose, Place, Program
d. Product, Price, Place, Promotion
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American Marketing Association. Dictionary. http://www.marketingpower.com/_layouts/Dictionary.aspx
Ehmke, Cole and Jay Akridge. The Elements of a Business Plan: First Steps for Entrepreneurs. Purdue University Extension Services.
Entrepreneur..com Marketing Plan. http://www.entrepreneur.com/encyclopedia/term/82450.html
Feltenstein, Tom. Underdog Marketing for the Foodservice and Hospitality Industry. 1997.
Furgurson, John. Brand Insight Blog. 2009. http://www.brandinsightblog.com/2009/11/01/marketing‐strategy‐vs‐tactics/
Hiam, Alexander.Marketing Kit for Dummies. Wiley Publishing, 2009.
Developing Marketing Strategies & Plans Sources
Humphrey, Albert. SWOT Analysis for Management Consulting: SRI Newsletter. 2009
Ignite Business Services. Strategic vs. Tactical Marketing. 2009.MB4 Marketing. Marketing Strategies for Business Success. 2012.
http://www.m4bmarketing.com/
Meyers, Ginger S. Marketing 101: University of Maryland Cooperative Extension.
Purdue University Extension. Strategic Business Planning for Commercial Producers.
Sandhusen, Richard. Marketing: A Streamlined Course for Students and Business People. Barron’s Business Review Series. 2000.
Sharen, Colleen. Thinking is Hard Work: Strategic vs. Tactical. 2009. http://colleensharen.wordpress.com/2009/03/06/strategic‐vs‐tactical/
Developing Marketing Strategies & Plans Sources
The Business Dictionary. http://www.businessdictionary.com/definition/marketing.html
The Times 100 Business Case Studies. Marketing Theory and Planning. http://businesscasestudies.co.uk/business‐theory/marketing/market‐planning.html
U.S. Small Business Administration. http://www.sbaonline.sba.gov/smallbusinessplanner/
Ward, Susan. Writing the Business Plan. About.com Small Business Canada. 2012. http://sbinfocanada.about.com/cs/businessplans/a/bizplanmarkplan.htm
Developing Marketing Strategies & Plans Sources