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Advertising and Promotion (MKT621)

Lesson 28

MARKETING PLAN

OVERVIEW

This lecture will apprise the students regarding the methods to make a successful marketing

plan. This will cover various avenues of marketing plan different required analyses identify

various situations and their elements. The marketing goals and objectives will be explained and

in this aspect marketing and financial objectives will be discussed and explained.

HOW TO MAKE A SUCCESSFUL MARKETING PLAN:

The key component of a business plan and required advertising strategy demands a marketing

plan. Every business large or small can only be successful with a good marketing plan which

summarizes the who, what, where, when and how much questions of company marketing and

sales activities for the planning year. Following are the questions which need answers.

1. Who are our target buyers?

2. What unique position do we have in the market?

3. Where will we implement our marketing spending plans?

4. When will market spending plans occur?

5. How much sales, spending & profits will we achieve?

It is the marketing plan that details on the basis of the questions above as to who are your

buyers and what is the position of your company and then in a marketing plan where in it has to

be determine when expenditures will be made, what level of sales will be achieved and how

and when advertising and promotional expenditures will be made. From here onwards

discussed below are the major elements of a marketing plan.

Situational Analysis:

The primary purpose of situational analysis in a marketing plan is to describe what is

happening in the markets in which the company competes and the company's product and

distribution trends. In this perspective following are the questions to be tackled.

1. What is happening in the markets where company competes?

2. What are the company's products & distribution trends?

3. What are the product trends & your company's distribution channels description?

Macro Environment Situation:

Macro Environment Situation provides only relevant information about macro-environmental

trends that might affect your business.

1. DEMOGRAPHICS: Generally the need of the people are taken into consideration by age,

gender and other factors who spend more on various entertainments vacations recreations

etc.

2. ECONOMIC/BUSINESS CONDITIONS: In a situation of inflation money is more

expensive to borrow; people tend to buy less because of government tariffs etc.

3. TECHNOLOGICAL: In many cases innovations cause the change or wiping out of

industries and businesses in less than a year e.g. the popularity and convenience of CD

players and now Digital Format Audio Devices almost eliminated the sale of record players

and seriously depressed the manufacturer and the sale of vinyl records.

4. POLITICAL & LEGAL: Health care and special provision / legislations affect all business

large or small such as many new restaurants in basements must have an elevator for

handicap employees and or even for customers.

5. SOCIAL & CULTURAL: Various social and cultural attributes cause the marketing trends

to change rapidly and thereby causing the marketing plans to be adjusted accordingly.

Advertising and Promotion (MKT621)

Market Situation:

The study of marketing situation provides information on the size, growth and trends of the

overall market and any relevant segments of the total market or category in this context

following essential elements should be carefully study and taken into consideration

1. Past, present & future market trends.

2. Company sales & share in market.

3. Increased marketing spending by competitors.

Competitive Situation:

Competitive Situations provides information about key competitors on the basis of following

factors.

1. Description of key competitors & their market positioning.

2. Size of key competitors in units. (Currency)

3. Market share of key competitors.

4. Sales trends of key competitors.

5. Strengths & weaknesses of key competitors as compared to your company.

6. Perceived marketing strategies of key competitors & their probable impact on your

company.

Target buyer or end user situation:

Target buyer or end user situation provides actionable information on selling to target buyers &

stimulating purchases or usage by ultimate users. Key questions to be answered in this regard

include the following.

1. Description of target buyers.

2. Target buyer's wants, needs, attitudes & perception of category products & services.

3. Location of target buyers/end users & how to reach them.

4. Which segments of total market or category are growing or declining & why.

Product Situation:

The product situation analysis provides information about the company on the following.

1. Sales.

2. Profit.

3. Product trends.

4. Cost of goods history. (5 years)

5. Marketing spending history (5years of advertising , promotion, PR spending)

6. Distribution trends & developments.

7. Description of Sales organization.

Distribution Situation:

Distribution Situation provides information about each distribution channel & its relative

importance to company in terms of

1. Percent of Company Sales.

2. Company volume.

3. Cost to distribute products & services.

4. Growth potential.

5. Competitive status.

Marketing Goals & Objectives:

This component of marketing plan outlines major company goals, marketing & financial

objectives. Major company goals could be short term as well long term e.g.

Advertising and Promotion (MKT621)

Marketing Objectives:

1. Company definition (e.g. manufacturers of 100 % all-natural snack food products)

2. Market definition (e.g. to attain leadership in market share & volume for the

healthy, all natural snack segment of salty snacks category)

3. Technology ( e.g. to become known in the industry as the leading developers of new

vegetable protein products)

Financial Objectives:

The financial objectives are generally described in quantitative terms for at least three years

in the future.

1. Gross Sales. ( Increase)

2. Cost of goods. (Decrease)

3. Gross Margin (Increase)

4. Net Income (Increase)

5. Return on investment.

6. Return on income.

Business which seeks outside funding and capital should provide a minimum of five years

of projected incomes although these are usually located in the financial section of the

business plan rather than the marketing section. Marketing objectives are quantitative

translations of the company's financial objectives in marketing terms e.g.

1. Sales. (Value-Money)

2. Sales Units.

3. Market share.

4. Distribution Channels.

5. Advertising awareness.

6. Key account distribution.

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