DEVELOPING A
MARKETING PLAN
Chapter 11.3 and 11.4
Know Where You are Headed
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A marketing plan is a written component of the
strategic plan that addresses how the company will
carry out the key marketing functions.
A marketing plan can be simple or detailed.
Of primary importance in a marketing plan is the
development of a mission statement.
A mission statement is the identification of the
nature of the business or the reasons the business
exists.
A Sense of Direction
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There is no specific format for a marketing plan.
The major components of a marketing plan are
determined by the specific needs of the firm and
the products or services to be marketed.
When a company moves its focus away from its
customers, it loses the customers’ business.
Focusing on the Customer
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In 1997, video-rental company Blockbuster saw its
earnings drop 20 percent.
Some of the strategies Blockbuster used to help
improve their company included:
A
guarantee that new movies will be available or next
movie is free
 Improved the way of purchasing videos from major movie
studios
 Backed their plan with a 160-million advertising blitz
What’s the Plan?
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Sporting events and the athletes who participate in
them are consumer products.
Fans buy the products by purchasing tickets and
viewing the game.
Game tickets must be sold or they quickly become
worthless.
Because they are perishable, sports and
entertainment must be pre-sold.
A marketing plan helps the company make the presale.
Components of a Strategic Marketing
Plan
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A strategic marketing plan includes several
components that guide a company’s direction.
 Mission
of the business
 Goals of the business
 What
does the company intend to accomplish by marketing
this product?
 Product
 What
planning
event, product, or service will be marketed?
 Marketing-Information
 Who
Management
are the company’s competitors? Who makes up the
target market?
 Distribution
 How
System
will the product get to the customer?
 Pricing
 What
is the best price for the product?
 Promotional
Strategies
 How
will the company use advertising, publicity, personal
selling, and sales promotion to position the product in the
minds of customers?
 Financing
 How
much will it cost to produce or deliver the product?
 Purchasing
 What
 Risk
materials or services must be purchased?
Management
 What
legal liability might the company incur?
 Selling
 How
will the direct sale of tickets and related merchandise
be handled?
 People
 Who
is responsible for each segment of the plan?
 Internal
Communication Systems
 How
will one department communicate with the other
department within the organization?
 Timelines
 What
is the scheduled date for the action to commerce?
 Intervals
 What
 The
for Implementing the Plan
of Review and Evaluation
can be done better, faster, and cheaper?
Future
 Where
is the business going?
Let’s Make Money
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The purpose of all business activity surrounding sports
and entertainment marketing is to make a profit.
Profit is the amount of money remaining after all costs.
Since a number of entities generally come together to
stage an entertainment or sports event, each entity has
the possibility to make or lose money.
Money is generated through ticket sales, broadcast
rights, licensing, and facility revenues.
Either the people who are the owners of the event idea
must risk their own money to stage and market the
event, or they must find others who are willing to invest
in or sponsor the event.
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Promotion is intended to persuade fans to attend
and make a monetary commitment to sports and
entertainment.
Television networks make a profit by selling
commercial time to advertisers and by selling
programs to affiliated stations.
Challenges of Physical Limits
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There are physical limits to the number of good seats
that can be created for any sporting event.
As a result, the ideal stadium size and seating
configuration for each sport does not change.
The sources of revenue with potential for growth are
special seating arrangements, concessions, and other
commercial licenses.
Personal Seat License (PSL) is when a fan pays a fixed
fee to obtain the right to buy season tickets.
In football and baseball, PSL fees are sometimes used
to pay for part of the cost of the sports stadium.
New Homes for Sports Teams
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Professional sports stadiums are often difficult to
build if a public subsidy is necessary.
Neighbors frequently oppose the projects, and antitax protestors are relentless.
Ticket prices at new venues are so high that many
people are unable to attend professional sporting
events.
This alarming trend will have a definite impact on
future fan base and attendance.
Did We Make Money?
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As a part of the marketing plan, a forecast must be
made.
The forecast predicts the cost of expenses and
expected revenues from the event.
A budget is developed that details the financial
impact of each part of the marketing plan.
The budget is a plan for controlling the flow of
funds.
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Records must be kept of all financial transactions.
The records include a balance sheet and an income
statement.
A balance sheet shows the company’s current assets,
including cash, property, and equipment, and its
current liabilities, including debts owed and loans.
The income statement is a record of all revenue
received and all expenses incurred.