Chapter 17 – The Marketing Plan & Evaluation of
Performance
Failing to plan is
planning to fail
– Benjamin Franklin
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• What you’ll learn in the next two lessons
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- The key elements of a marketing plan
- establishing objectives
- marketing mix (product, price, place & promotion)
- expansion strategies such as exporting and diversifying
- relevant performance indicators to evaluate effective
marketing strategies
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Elements of a marketing plan
A marketing plan is a written document that can stand alone as an
individual plan or form part of the overall corporate business plan.
There are a number of key elements or questions that must be
included in the plan
What is our present situation?
Where do we want to go?
How do we get there from here?
Have we achieved what we set out to do?
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
What is our present situation?
This requires the business to undertake the following situation
analysis
1. Consult its mission statement
2. Conduct a SWOT
3. Gain information on competitors strengths and weaknesses
4. Determine what customers want and who they are
5. Check if there are any gaps in the market (market niche) not
currently being met
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
What is our present situation?
Consult the business mission statement –
This statement indicates why the business currently exists and
should continue to exist
What is Coca Cola Amatil’s Mission Statement?
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Conduct a SWOT
What are your STRENGTHS?
What are your WEAKNESSES?
What are your business OPPORTUNITIES?
What are your business THREATS?
See Table 17.1 on Page 298 for a list of possible areas that could be
considered when conducting a SWOT analysis.
What are your businesses? Conduct a quick SWOT analysis
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Gain information on your competitors strengths and weaknesses.
What can you do better?
Take advantage of their weaknesses.
Example of a business weakness that you could take advantage of?
Coca Cola?
McDonalds?
Coles?
Woolies?
Anyone else?
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Determine what customers want and who they are & Check if
there are any gaps in the market (market niche) not currently
being met.
What’s an example of a niche market?
http://www.thesolopreneurlife.com/6-cool-examples-of-successfulniche-businesses/
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Where do we want to go?
As a business, you need to make a decision as to the overall
direction that you want to take your business or brand.
This requires setting & having MARKETING OBJECTIVES – short term,
medium term, long term.
These could relate to either one or a combination of the following
ATTRACTION – to attract new customers
RETENTION – To maximise existing customer relationships
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
How do we get there from here?
This part of the plan incorporates identifying the target market, the
positioning strategy, the marketing mix (Product, Price, Promotion,
Place) (chapter 18)
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Growth strategies related to PRODUCT are product development,
product extension (Lipton Ice Tea) and developing brand
recognition.
For PRICING your strategy might be to offer value added pricing on
selected services to attract new customers
To attract new customers you may require to expand your store
locations – PLACE
Can you give me an example of PROMOTION to attract new
customers? Or to value add to existing customers?
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Have we achieved what we set out to do?
Budgets, evaluations methods and controls must be included in a
marketing plan.
Why?
So comparisons can be made to assess the the progress of the
marketing strategies against the marketing plan.
This measures how effectively the product is meeting the demands
of the marketplace, the pricing strategy adopted, the distribution
channels and the promotional activities (Product, Price, Place &
Promotion)
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
Complete
Activity 17.1
1.
2.
3.
4.
5.
VCE Business Management Year 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Evaluation – was the marketing process effective?
• This is the last step in the marketing process
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Step 1 – Market Research
Step 2 – Marketing Strategies
Step 3 – Marketing Mix
Step 4 – Evaluation
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Evaluation allows you to see and judge how well the first three
steps worked for the business.
• Now is the time to reflect on what improvements can be
made
• This is the stage where you check that your goals have been
met
• There are a number of ways to evaluate how you performed.
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Sales analysis
• Comparing actual sales with sales objectives set at the
commencement of the planning period
• We want to sell 100 burgers with this promotion, we normally
sell 50 burgers
• How many did you sell? Was it more or less? Was the
promotion successful?
• How could you break this down further?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Market Share Analysis
Market share analysis provides a comparison of how well a
business is performing in relation to its competitors
Lipton Ice Tea for example hold the market share over Nestle.
There are 4 Lipton Ice Tea’s sold for every 1 Nestea.
Can you think of any other market leaders?
How do you think they analyse this data?
Where do they get the data from?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Marketing expense-to-sales analysis
• Businesses need to keep an eye on how much it is costing
them in salespeople, advertising, sales promotion, market
research and sales administration for every dollar of sales
revenue
• How much are we spending v how much are we making?
• If this cost of spending is too high, and the sales too low has it
been an effective promotion?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Profitability Analysis
• It is important for a business to analyse whether certain
products or geographic areas are more profitable to the
business than others.
Examples?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Customer Based Measures
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The number of new customers
The number of repeat customers
The number of dissatisfied customers or lost customers
Target market awareness
Loyalty
Brand Awareness
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Complete
• Activity 17.2
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Issues in Marketing
• Issues in marketing can range from the changing role of
technology and our interaction with it to the social and moral
responsibilities of marketers
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Issues in Marketing - The Role of Technology
• How has the role of technology changed the way we market
products and services?
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Newspapers
Radio
Magazines
TV
• What has changed? Why is this change good for small
business? Why is this good for large business?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Issues in Marketing - Global & Domestic Business Market
• The domestic business market is regarded as the geographical
boundaries of Australia.
• But worldwide there are potential customers who have needs
to be satisfied and money to spend.
• Australian companies need to be aware also of aggressive
overseas competitors who see Australia as an expansion
opportunity.
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Should an Australian business decide to market globally, it
needs to be aware of
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Social
Cultural
Religious and
Language differences between countries.
Legal and Political differences are also important because of
trade barriers that could be in place (ie: Australian Beef &
Russia)
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Examples of language issues when marketing overseas
• Pee Cola – ‘Very Good Cola’ in Ghana
• Barf Detergent – ‘Snow’ in Iran
• It takes a tough man to make a tender chicken – in Spanish
means “it takes a well hard man to make a chicken
affectionate
• Fart Bar – Means ‘Lucky’ in Polish
• http://mentalfloss.com/article/31168/11-product-namesmean-unfortunate-things-other-languages
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Issues in Marketing -Ethical and Socially responsible
marketing
Read:
Ethical and Socially Responsible Marketing (page 306) on
Complete:
Activity 17.3 (Q 1 &2)
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Issues in Marketing – Legal Requirements
• There are a range of laws in place to protect consumers and to
regulate marketing practices. The overall purpose of the
Competition and Consumer Act 2010 (Commonwealth) is to protect
consumers against actions taken by producers and distributors of
products & unfair competition.
• Businesses also need to protect their trademark, as trademark
provides an indication of quality being associated with a particular
product or service
• Can you give me an example of a business that would protect its
trademark so consumers were confident of that product or service?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Expansion strategies in marketing
• Exporting
• Exporting is an excellent method for businesses to use when
wanting to expand their market.
• Can you think of any countries that would require a product or
service from Australia? What would they be? Why would this
be?
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Expansion strategies in Marketing – Innovation and
diversification
• For a business to be innovative, they usually have created a
better product or service, improved the method of production
or come up with an unusual approach to increase their appeal
to the marketplace.
• Activity 17.4
• Questions 1 to 11
Chapter 17 – The Marketing Plan & Evaluation of
Performance
• Expansion Strategies in Marketing – Research &
Development (R&D)
• Feedback from customers can lead to R&D of current products
to find an improved product to offer to the marketplace.
• Read page 311 and can you think of any other products or
services that have undergone R&D on the basis of feedback
from customers?
Final Chapter Summary Q’s
• Page 312 – Q
• 1a, b, c, d, e, f, g, h
• 2
• 3 a, b, c