SOLANO COMMUNITY COLLEGE
MARKETING PLAN HANDOUT
MARKETING 171 – INTRODUCTION TO MARKETING
Professor T. Watkins
When I assign a marketing plan for your class, don’t make a
face and complain about the work—for two special reasons.
First, you will get insights into trying to actually “do
marketing” that often go beyond what you can get by simply
reading the textbook. Second, thousands of graduating
students every year get their first job by showing
prospective employers a “portfolio” of samples of their
written work from college—often a marketing plan if they
have one. This can work for you.
MARKETING PLAN
Your Marketing Plan is your guide to your business. It organizes your thoughts
as to why you are in business. It defines your customers and competitors. It
points out your strengths and weaknesses. It details what your plans are for the
future. It is an important part of your overall Business Plan. Some businesses
don’t have a Business Plan, but those who take time to put their plan on paper
are in a much better position to succeed. In preparing your Marketing Plan,
keep in mind that you are putting it together for your business and you. This is
your map for planning and measuring your performance, so include as many
hard facts as possible, as well as measurable goals and timelines.
A Business Plan is also your presentation to lenders or suppliers from which you
wish to borrow money. It will tell them the complete story about your business
as briefly as possible. Business plans show potential lenders and suppliers that
you have thought about the basics of business in general and about the specifics
of your own business. It gives them your projections of the future.
The plan should be concise, factual, and easy to read. The finished product
should have a separate paragraph or list for each aspect of your plan with a
heading that identifies the subject you are discussing.
Because every business is different, the guide is just a starting place and should
be modified to fit your specific business situation.
Developing a Marketing Plan
The natural outgrowth of the planning process is a marketing plan – a detailed
description of resources and actions a firm needs to achieve its stated marketing
objectives. A marketing plan is an important part of an organization’s overall
business plan.
A marketing plan is necessary to any organization for many reasons:





It is needed to obtain financing since financial institutions and most
private investors require a detailed business plan before they will even
consider a loan application or venture capital investment.
It provides direction for the firm’s overall business and marketing
strategies.
It supports the development of long-term and short=term organizational
objectives.
It guides employees in achieving those objectives.
It serves as a standard against which the firm’s progress can be measured
and evaluated.
After creating and implementing this plan, marketers should reevaluate it
periodically to gauge its success in moving the organization toward its goals. If
necessary, changes should be implemented promptly.
Components of a Marketing Plan
Marketing Plans vary in length and format; however, most contain the
following components:

Mission Statement: Summarizes the organization’s purpose, vision, and
overall goals. The mission statement provides the foundation upon which
further planning is based.
Component plans that present goals and strategies for each functional
area that of the organization include:





Marketing Plan: Describes strategies for informing potential customers
about goods and services that are offered, and describes strategies for
winning repeat business.
Financing Plan: Lays out realistic approach in obtaining financing and
managing cash flow and debt.
Production Plan: Describes how the organization will go about
producing its products in the most efficient, cost-effective manner
possible.
Facilities Plan: Describes the physical environment and equipment
necessary to implement the production plan.
Human Resources Plan: Estimates employment needs and staff skills
necessary to achieve organizational goals.
This basic format applies whether a company operates in the manufacturing,
wholesaling, retailing, or service industry. It is also important to remember that
the marketing plan must be developed in conjunction with other functional plans.
Creating the Mission Statement and Determining Organizational
Objectives
The mission statement presents the organization’s broad objectives – its overall
purpose and reason for existing. The following are two examples of
organizations’ mission statements.
First, consider the following mission statement of Unilever Corporation:
Our purpose in Unilever is to meet the needs of people everywhere – to
anticipate the aspirations of our consumers and customers and to respond
creatively and competitively with branded products and services which
raise the quality of life. Our deep roots in local cultures and markets
around the world are our unparalleled inheritance and the foundation for
future growth. We will bring our wealth of knowledge and international
expertise to the service of local consumers – a truly multi-local
multinational.
These broad mission statements can be used to develop more specific objectives
that state a course of action to be followed. These objectives should be both
quantifiable and measurable so they can be evaluated objectively and adjusted
as necessary.
Based on the preceding mission statement, Unilever’s foods division
developed a number of organizational objectives, such as the following:



Establish four main “innovation centers” that focus on research and
development related to margarine. (For example, the company’s
Vlaardingen innovation center developed two new products, Rama
margarine and Calve’ mayonnaise to cater to the growing market in
Russia.)
Produce different types of tea bags tailored to consumer
preferences in different parts of the world. (Such as pyramid tea
bags in the United Kingdom and squeezable bags in Australia.)
Build a new sales information network, using encrypted personal
computers, to serve facilities around the world.
Clearly, Unilever’s marketing plan guides it in achieving goals in on a global
scale. However, smaller organizations also benefit from the guidance of a well
thought-out marketing plan.
For the second example, consider the following:
When Roberta Lamb, a former professional opera singer, decided to start
her own opera company in Boston, her mission statement consisted of
two goals: (1) Provide a showcase for local musical talent and (2) sell
enough tickets to fill every seat in whatever facility she booked.
Realizing that she needed a specific plan to help her achieve her
ambitious mission, Lamb developed the following organizational
objectives:




Offer performances during the summer, when other Boston-area
opera theaters are closed
Reserve a small theater of fewer than 1,000 seats, since it will be
easier to fill
Limit performances to a two-week run, to leave audiences wanting
more
Recruit local celebrities for non-singing roles, to attract a broader
audience
Lamb signed up singers from other opera companies, who readily agreed
to accept lower fees for the chance to perform during the summer. A
popular local broadcaster, eager to broaden his skills, was happy to take a
speaking role. Lamb booked a 500-seat theater at Boston University for
two weeks and sold out every performance. Ticket sales generated a
profit of $16,000 – an impressive achievement for a fledgling opera
company and a tribute to Lamb’s well conceived marketing plan.
Formulating a Marketing Strategy
As discussed in earlier chapters, a marketing strategy begins with the
selection of a target market. For example, the typical patron of
Wisconsin-based Kohl’s department stores is a working woman aged 30 to
49 who has a family and a household income of up to $70,000 a year. By
contrast, the target market for the $45,000 Dodge Prowler is a married
man, average age 53, who can afford a third car.
After selecting the target market, the marketer develops a marketing mix
to reach the chosen consumer segments:
Product Strategy. Which goods and services should the firm offer to
meet customers’ needs? For instance, Unilever’s foods division groups its
products into five key categories–culinary, frozen foods, ice cream, teabased beverages, and spreads and cooking products–-and concentrates
on developing new consumer items in each category. (See page 47 of
text)
Distribution Strategy. Through which channel(s) and physical facilities
will the firm distribute its products? Sherwin-Williams, as an example,
bases its distribution strategy on company-owned stores. By contrast,
Avon uses a direct channel based on its network of independent
contractors. (See page 48 of text)
Promotional Strategy. What mix of personal selling, advertising, and
sales promotion activities should the firm pursue? Safeco, the Seattlebased insurance company, decided that naming the Seattle Mariners’ new
ballpark, Safeco Field should be part of its promotional strategy. (See
page 48 of text)
Pricing Strategy. At what general level should the firm set prices?
“Everyday low prices” is the foundation of Wal-Mart’s pricing strategy. By
contrast, the expensive gifts in Neiman Marcus’ annual Christmas catalog
suggest that this upscale retailer is using a different pricing strategy to
reach its intended market—primarily women age 35 to 55 with household
incomes of $150,000 or more. (See page 49 of text)
Follow the prescribed format and develop a marketing plan for an
organization of your choice. Some examples are:
 A sports franchise, such as Sacramento Kings, San Francisco
Giants, Oakland Raiders
 A local Best Western franchise motel
 A start-up software firm
 Stanford University