Marketing Plans: Saying How You’ll Get Sales Chapter 12 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Learning Objectives LO1 Understand the importance of a marketing plan LO2 Recognize the major methods of conducting market research LO3 Use sales forecasting methods LO4 Find or create a product’s differential advantage LO5 Identify the critical components of a marketing plan © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-2 The Importance of Having a Marketing Plan Marketing plan a systematic written plan of all phases of marketing for a business, including information on the product, price, and distribution and promotion strategy, as well as a clear identification of the target market and competition © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-3 Market Research Marketing research Systematic collection and interpretation of data to support future marketing decisions. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-4 Market Research Primary research New information collected to solve a problem at hand or answer current questions. Secondary research Information already collected for some other purpose than the current problem or questions. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-5 Market Research Secondary data BizStats.com information already Economic Census: collected for some census.gov other purpose than the current problem Business Expenses Survey: www.census.gov/cs d/bes/ © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-6 Primary Research Primary data information is extremely current Take some more time and money to gather it Marketing research firms can do this for you Zoomerang (www.zoomerang.com) Survey Monkey(www.surveymonkey.com) SCORE (www.score.org) © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-9 Cost Comparisons for Various Survey Methods © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-10 Primary Research Ethnographic research data gathered by simple observation – seeing what consumers do, rather than asking them Focus group form of data gathering from a small group led by a moderator © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-11 Primary Research Survey A data-collection method using a questionnaire—in person, on phone, on paper, or on the Internet. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-12 Sales Forecasting One of the most important pieces of marketing plan Knowing what your sales will be Companies often base sales forecasts on historical sales, but new companies cannot do that © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-16 Sales Forecasting Products or services are tied to others Estimate total market Calculate what percentage of that market you can get Other products and services are not tied as neatly to others Good situation for some marketing research © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-17 Differential Advantage Differential advantage The characteristic that separates one company from another in product, price, promotion, and/or distribution. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-19 Components of The Marketing Plan Discuss your target market Explain your current situation Marketing strategy and objectives Product, promotion, price, and place © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-20 Target Market Market segmentation The process of dividing the market into groups that have somewhat homogeneous needs for a product or service. Geographic, demographic, benefit © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-21 Target Market Undifferentiated strategy A marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marketing mix. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-22 Target Market Differentiated strategy A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-23 Target Market Concentrated strategy A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-24 Current Situation What you have done over the past year and how effective these actions were Reflect on the political, economic, cultural, and other external environments SWOT analysis © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-25 Current Situation Direct competition Other companies that make a similar product or provide a similar service; for example, direct competition for Coca-Cola includes all other soft drink providers. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-26 Current Situation Indirect competition Companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need; for example, indirect competition for Coca-Cola includes any other company providing items to quench thirst. © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-27 Competitive Analysis Exhibit 12.1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-28 The 4 P’s Product Place Price Promotion © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-29 Marketing Plan Outline Table 12.2 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12-31