Marketing Plan
By Team Whatever Date Class
Person 1 ______Person 2 ______Person 3 ______
I. Executive Summary______3
II. Introduction______4 III. Situational Analysis______5 A. The Situational Environments...... 5 1. Demand and demand trends...... 5 2. Social and cultural factors...... 6 3. Demographics...... 7 4. Psychographics-...... 8 5. Economic and business conditions...... 9 6. State of technology for this class of product...... 10 7. Laws and regulations...... 11 B. The Neutral Environments...... 12 1. Financial environment...... 12 2. Government environment...... 12 3. Media environment...... 12 4. Special interest environment...... 12 C. The Competitor Environments...... 13 1. Describe your competitor and their products...... 13 D. The Company Environments...... 13 1. Describe your company and products...... 13 IV. Strengths, Weaknesses, Opportunities and Threats______14 V. The Target Market or Segment, Target & Position (STP)______15 1. Product...... 15 2. Price...... 16 3. Place...... 16 4. Promotion...... 16 VI. Marketing Objectives and Goals______17 VII. Marketing Tactics*______18 VIII. Marketing Strategy, Implementation and Control______19 IX. Appendices______20
Created by Charlene McCormack Page 2 I. Executive Summary
Writing this section last will allow you to know what is important to highlight so that your reader can get a quick idea of what your plan entails.
The Executive Summary should be a one page synopsis of the plan which provides highlights of the current situation, objectives, strategies, principal action programs, and financial expectations. (Typically this is written last as it is a summary of the important data you will gather.)
Created by Charlene McCormack Page 3 II. Introduction This is very similar to the Executive Summary in that it should be written after all of the research is completed and it is an overview of your plan. However, the difference is that the introduction should make the audience want to read the entire plan, not just the Executive Summary. Introduce the company and the product or service you will be marketing.
Created by Charlene McCormack Page 4 III. Situational Analysis
A. The Situational Environments
1. Demand and demand trends
What are the demand trends of your product or service? Where will it be bought? How (card, cash, payments) (also how often)? When (time of day, seasonal, period in life)? This is probably one of the most difficult areas to research if it is a new product. Try to find similar products and compare your product while being honest about the benefits and drawbacks.
For example,
What is the demand currently for the product, how is it changing? Do you see more dramatic changes in the future? Can you take advantage of these? Is your product a less expensive substitute or a product that is easier to use with more features? Will you be selling to other businesses (b2b)? In which case: o Who would make the purchasing decision for your product/service? o Who would be the purchase agent? How do they decide whether or not to buy? Or will you be selling directly to customers (b2c)? How would this change the marketing of your product/service?
Created by Charlene McCormack Page 5 2. Social and cultural factors
Are you trying to appeal to a certain social or cultural group? How will they perceive your product?
Research the culture to make sure you are offering the right product. Talk to or survey people in the community or the type of people to whom you hope to market
You may find out that the town won't eat potato salad since the church food poisoning accident in 1998 or that college graduates want flashing mortarboards for nighttime graduation ceremonies.
Created by Charlene McCormack Page 6 3. Demographics
Demographics are the characteristics of human populations and population segments, especially when used to identify consumer markets.
Common groupings are:
1. Educational attainment or enrollment 2. Geographic Area 3. Income 4. Age 5. Gender 6. Race 7. Home ownership 8. Employment status
Created by Charlene McCormack Page 7 4. Psychographics-
Are any attributes relating to personality, values, attitudes, interests, or lifestyles of people.
1. What type of media do they consume? 2. What are their beliefs? Is this how they see themselves? How they want to be perceived? 3. Why do you believe they are the type to buy your product? Can you prove it?
Created by Charlene McCormack Page 8 5. Economic and business conditions
What are the economic and business conditions in the area you have chosen?
What are the current conditions and trends for this geographic area for your product? What are the current conditions and trends for this Industry for your product? What segment of the Economy is growing, what is shrinking, and how will this affect your industry? Changes in income: are people losing jobs, getting paid more, receiving bonuses? What are the changes in spending habits? Are more people taking the bus and driving less? Is your product something people buy in boom or bust economies?
Created by Charlene McCormack Page 9 6. State of technology for this class of product
State of technology for this class of product-
Is the product high-tech, state-of-the-art? Are other companies producing versions? How quickly is the market changing (short life cycle)? How is technology affecting this product or service? Are you coming upon an open playing field (new market) or half way through a game (a mature market)? o Check for competing products by looking up recent patents; this will help let you know if your product is sound before going to market. o Also check for competing companies newswires (could be company hype) as well as newspaper, magazine and journal articles. o Patents and trademarks: What patents have been issued or applied for in your product or service field.
Created by Charlene McCormack Page 10 7. Laws and regulations
What are the Government Regulations for this product/service or industry? (Remember, it is best to error on the side of caution.) This is very dependent on the product that you are promoting. How will changes affect your business?
1. Licensing- Federal, State, County and City? 2. Zoning- Can you operate your business where you want? 3. Insurance- Do you need special insurance? How will you protect your assets? 4. Taxes- Are their additional taxes on your product? Sin taxes? 5. Pollution- Toxins, proper waste disposal for your product or by products?
Created by Charlene McCormack Page 11 B. The Neutral Environments
1. Financial environment If the economy suffers a down turn will customers still buy your product or service as they would during an upturn (and vice versus)? Same amounts?
2. Government environment Is there any current legislative action in state, federal, or local government likely to affect marketing of this product or service? (Also see 3 & 4.) Are there any trends that will help or hurt your product or service?
3. Media environment What is happening in the media? Are people, celebrities or talk show personalities talking about similar products or concepts in good or bad ways?
4. Special interest environment Are any groups likely to oppose your product? Can you use this to your benefit? (e.g., PETA, Morals groups, PTA or environmental groups). Are you exploiting or stereotyping anyone with your product?
Note: Use the research that you have completed previously for this section.
Created by Charlene McCormack Page 12 C. The Competitor Environments
1. Describe your competitor and their products
Within this step research your competitor's companies. This will provide an understanding of the position each has in the industry and strengths and weaknesses.
Who are your main competitors? Describe; their products, plans, experience, know-how, financial, human, capital resources, suppliers, and strategy.
D. The Company Environments
1. Describe your company and products
Next, use the same resources and your current knowledge, to look at your own company for products, plans, experience, know-how, financial, human, capital resources, suppliers, and strategy.
Created by Charlene McCormack Page 13 IV. Strengths, Weaknesses, Opportunities and Threats (Note: For the appendix, summarize these in bullet points)
Why each strength is a strength and explain your reasoning for that.
Why each weakness is a weakness and explain your reasoning for that.
Why each opportunity is an opportunity and explain your reasoning for that.
Why each threat is a threat and explain your reasoning for that.
Write about how you can work to change the negatives to be positives. Clearly state the competitive differential advantage. Doing all of this will allow you to be ready to overcome the problems as they come up rather than struggling while you are in the midst of the problem.
Internal or Favorable or Unfavorable External Favorable Unfavorable Strengths Weaknesses
Internal 1 1
2 2 Opportunities Threats
External 1 1
2 2
Created by Charlene McCormack Page 14 V. The Target Market or Segment, Target & Position (STP)
1. Segment- who are potential buyers of this product?
2. Target- who will you pursue?
This should be decided by which segment your product would appeal to the most, and if they have the means to buy your product. Describe your target market segment in detail by using demographics, psychographics, geography, lifestyle, or whatever segmentation is appropriate. Why is this your target market? How large is it?
3. Position- What is the position that you want in the customers mind and how will you achieve that?
Positioning is designing a product or service that the targeted market sees as distinct and valuable when compared to competitors' products. (4 P's above)
Three ways to position a product:
Unique - this is the only one of its kind Difference - e.g., More than twice the speed, or more attachments, etc. Similarities - e.g., Same as ______but at a lower price.
What is this telling your targeted segments? Should you rethink anything?
1. How will you communicate with the market? 2. What is your value proposition - why is it better than your competition? 3. What is the evidence that it will be successful?
1. Product Describe all of the attributes of the product or service. Is it a service or tangible good? What is the product life cycle?
Map out your consumption pattern How do people become aware of the item? How does the consumer become aware of the need for the item? Where do consumers find the item? How does the consumer select the item? How is it ordered or purchased? How is it delivered? How is it installed? How is the product used? When is the product done?
Created by Charlene McCormack Page 15 How does the consumer get rid of it, (e.g., sold, garbage, loan or gifted)?
What is your product or service? (If you have explained it fully before, don’t repeat it. Just make sure it is fully explained.)
2. Price How will you determine price? What options will work best for your product? How will your consumers & competitors react to your pricing? Will you have price promotions? (see promotions)
What is the price? How did you determine this price? Show support of price using; cost of materials, time to produce, cost of transport, competitor's prices and your profit.
3. Place What are the locations you will use to make your product available?
Distribution channels or directly? Specialty stores, Big Box stores, online, or vending machines?
Where do you plan to locate your business? Where will you obtain the components necessary for your product or service? Where will you sell your product or service? How will it get there?
4. Promotion How are you going to promote your product or service? What promotional ideas work with the market you have selected? This is the reason for the whole report. What promotional ideas will you use? When and how? What image will that give to your product?
Promotional Ideas: Newspaper Write articles for the local paper Facebook Write a newsletter Mailing list for customers Talk to people Contests Sponsor little league teams Website Radio Yellow Pages advertising Trade fairs Mass Mailings Donate to local causes Television Cold calling Start a conference Booths at Fairs Magazine Giveaways- tee shirts, hats, buttons, pens Back of receipt Sandwich board Give away samples or trial version Parties Business Cards Pricing Promotion such as Coupons Grand Openings Partnerships Join Chamber of Commerce Write a book Temporary Tattoos Join Trade Services Word of Mouth
Created by Charlene McCormack Page 16 VI. Marketing Objectives and Goals
Is the product or service being introduced (to a new market or all new), rebranded, retrenched (shored up against competitors) or ready to be retired? How will this influence the marketing?
What are your marketing objectives and goals on- 1. Sales volume? 2. Market share? 3. Return on investment? What is the time frame in order to- 1. Breakeven? 2. To show a profit? 3. To pay back investors?
Created by Charlene McCormack Page 17 VII. Marketing Tactics*
Think about alternatives for your strategy; is your market in the early, mature or late stages. Will you be producing everything for your product or service (vertical integration) or buying parts of it (horizontal integration). Also how will this help you with niche marketing? Will it help you be more flexible with product changes?
What are the startup costs? What are the costs per unit? What is the breakeven point for your product or service at the price from above? When will the company show a profit? Project estimated sales out for three years.
Created by Charlene McCormack Page 18 VIII. Marketing Strategy, Implementation and Control
Write the body of the Marketing Plan using all of the research you have compiled and be sure to use in text citations.
Created by Charlene McCormack Page 19 IX. Appendices This section includes all supporting information you used to write your report. Perception map Management's resumes Ansoff's matrix Purchase process SWOT analysis Surveys with results Statistical data, time line Cost analysis Any charts or comparison tables that you created Diagrams of the product, packaging and screen shots of possible websites Management resumes Competitive analysis Projection of Sales by market line Product Line Profit Analysis Confidentiality Agreement Loan applications Letters from perspective buyers
Created by Charlene McCormack Page 20