The Marketing Plan is a highly detailed, heavily researched and, hopefully, well written report that many inside

and possibly outside the organization will evaluate. It is an essential document for both large corporate marketing departments and for startup companies. Essentially the Marketing Plan

forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions. forces the marketing personnel to look e!ternally in order to fully understand the market in which they operate. sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support. is a key component in obtaining funding to pursue new initiatives.

The Marketing Plan is generally undertaken for one of the following reasons ". #eeded as part of the yearly planning process within the marketing functional area. $. #eeded for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a new strategy to fi! an e!isting problem. %. Is a component within an overall business plan, such as a new business proposal to the financial community. There are many ways to develop and format a marketing plan. The approach taken here is to present a &'Part plan that includes ". Part " Purpose and Mission $. Part $ (ituational )nalysis o Product, Market )nalysis o *istribution )nalysis o +ompetitor )nalysis o ,inancial )nalysis o -ther )nalysis %. Part % Marketing (trategy and -b.ectives o ,inancial -b.ectives o Marketing -b.ectives /. Part / Tactical Programs o Markets o Product o Promotion o *istribution o Pricing o -thers 0. Part 0 1udgets, Performance )nalysis, Implementation o 1udgeting and )nalysis o Implementation &. Part & )dditional +onsiderations This plan is aimed at individual products and product lines, however, it can be adapted fairly easily for use in planning one or more strategic business units 2(134. The page length suggested for each section represents a single'spaced typed format for a plan focused on a single product. -bviously for multi'product plans lengths will be somewhat longer.

#ote, throughout the plan the word 5product5 is used. 6owever, the information presented in the Marketing Plan tutorials applies to products and services. It is assumed that anyone developing a Marketing Plan possesses a working understanding of marketing principles. ,inally, this tutorial is continually being revised so you may want to check back on a regular basis for any updates. Part 1: Purpose and Mission Part " of the plan is designed to provide the reader with the necessary information to fully understand the purpose of the marketing plan. This part also includes organizational background information, which may be particularly important if the audience for the plan is not familiar with the company, such as potential financial backers. (ome of the information, in particular the mission statement, may re7uire the input of upper' management. The information in this part will prove useful later in the plan as a point of reference for material that will be introduced 2e.g., may help e!plain pricing decisions4. In cases in which there are separately operated divisions or (13, there may also be mission statements for each. 28ength one page or less4 1. Purpose of the Marketing Plan

-ffer brief e!planation for why this plan was produced o e.g., introduce new product, enter new markets, continue growth of e!isting product, yearly review and planning document, etc. (uggest what may be done with the information contained in the plan o e.g., set targets to be achieved in the ne!t year, represents a departmental report to be included in larger business or strategic plan, etc.

2. Mission Statement The mission statement consists of a short, finely'honed paragraph that considers the following issues

Identifies a stable 2i.e., not dramatically changing every year4, long'run vision of the organization that can answer such 7uestions as o 9hy is the company in business: o 9hat markets do we serve and why do we serve these markets: o In general terms, what are the main benefits we offer our customers: e.g., a low price software provider may state they offer ;practical and highly affordable business solutions< o 9hat does this company want to be known for: o 9hat is the company out to prove to the industry, customers, partners, employees, etc.: o 9hat is the general corporate philosophy for doing business: o 9hat products=services does the company offer: In developing the vision presented in the mission statement consider o +ompany 6istory 6ow company started and ma.or events of the company, products, markets served, etc. o >esources and +ompetencies +onsider what the company currently possesses by answering the following 9hat are we good at: 9hat is special about us compared to current and future competitors 2in general terms do not need to mention names4: 9hat do we do that gives us a competitive advantage:

+onsider the 7uestions above in term of people, products, financial position, technical and research capabilities, partnership=supply chain relations, others Environment +onsider the conditions in which company operates including physical 2e.g., facilities4, e7uipment, political regulatory, competitive, economic, technological, others

Part 2: Situational Analysis The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented. This part of the Marketing Plan is e!tremely important and 7uite time consuming. ,or many, finding the numbers may be difficult, especially for those entering new markets. The situational analysis covers si! key areas product, target market, distribution, competitors, financial and other issues. 1. Current Product Analysis Provide detailed analysis of the company?s product2s4. 28ength "'$ pages4.

*escribe the company?s current product2s4 offerings in terms of o Product )ttributes *escribe the main product features, ma.or benefits received by those using the product, current branding strategies, etc. o Pricing *escribe pricing used at all distribution levels such as pricing to final users and to distributors, incentives offered, discounts, etc. o *istribution *escribe how the product is made accessible to final users including channels used, ma.or benefits received by distributors, how product is shipped, process for handling orders, etc. o Promotion *escribe promotional programs and strategies in terms of advertising, sales promotion, personal selling and public relations, how product is currently positioned in the market, etc. o (ervices -ffered *escribe support services provided to final users and distributors before, during and after the sale

2. Describe the Current arget Market!s" E!amine in detail the company?s current target market2s4. -bviously to do this section correctly takes a great deal of customer'focused research. 28ength $'% pages4.

*escribe the target market approach o 9hat general strategy is used to reach targeted customers: @enerally approaches include mass market A aim to sell to a large broad market segmentation approach A aim to selectively target one 2niche4 or more markets *escribe demographic=psychographic profile of the market o Profile criteria may include gender, income, age, occupation, education, family life cycle, geographic region, lifestyle, attitudes, purchasing characteristics, etc. *escribe the following characteristics of targeted customers o #eeds=benefits sought by market

Product usage +onsider answers to these 7uestions related to customers using the product such as who is using the product: why do they use the product: when do they use the product: how is the product used: o Product positioning Evaluate how customers perceive the product in relation to competitor?s products or to other solutions they use to solve their problems o )ttitudes 9hat is the target market?s attitude regarding the company?s product: 9hat is the target market?s attitude regarding the general product category: i.e., e!am the general attitude regarding how products from all companies serve the target market?s needs *escribe the purchasing process o 6ow does the target market make their purchase: 9hat does the decision'making process involve: 9hat sources of information are sought: 9hat is a timeline for a purchase 2e.g., impulse vs. e!tended decision'making4: o 9ho makes the purchase: *oes user purchase or is other party responsible 2e.g., parent purchasing for children4: o 9ho or what may influence the purchase: Provide market size estimates o Beep in mind these are estimates for the market not for a specific product Provide size estimates for the potential market 9hat is the largest possible market if all buy: Provide estimates of size for the current target market 9hat percent of the potential market actually purchased: Provide estimates of future growth rates )t least through the timeframe for the plan 2e.g., " year4 but most likely longer 2e.g., %'0 year pro.ections4
o

#. Describe Current Distributor $et%ork 2if appropriate4 Evaluate how the company?s product2s4 is distributed. +learly marketing plans for a service company may not have much detail here but this section will most likely have some relevance even for service firms 2e.g., package delivery services, online legal service, etc,4. 28ength $ pages4.

*escribe the channels=supply chain employed to sell and deliver the product (Note: internal sales force discussion should appear under company promotion in Current Product Analysis above.) o -ptions may include direct to customer indirect via a distributor combination of both 9hat are the needs=benefits sought by distributors: *escribe the product?s role within the distributor network o 6ow is this product used within the distributor?s business: o 6ow important is product within the distributor?s strategy: o 6ow is product positioned: e.g., how does distributor view product in relation to competition o )ttitudes and perceptions about companyCs product2s4 Purchase process

6ow does distributor network make their purchase: 9ho or what influence distributor?s purchases: *emographics o 9ho makes up the distributor network: types size geographic region markets served
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&. Competiti'e Analysis E!amine the main competitors serving the same target market. This section may also benefit from the use of comparison tables. 28ength %'/ pages4.

*escribe direct competitors in terms of o Target markets served o Product attributes o Pricing o Promotion o *istribution including the distributor network o (ervices offered *iscuss competitor?s strengths and weaknesses o May need to consider much more than .ust marketing issues such as financial standing target market perception > D * capabilities *iscuss competitive trends o May need to include discussion of future competitive threats

(. )inancial Analysis for Product or Product *ine Much of this information can be handled within a graphical format, such as tables and graphs, though a paragraph e!planation of each is generally re7uired. Make sure to include total dollar 2or other currency4 amounts as well as percentage market share. ,or more detailed marketing plans or for plans for seasonal products, providing monthly or even weekly sales figures may be re7uired. Provide a spreadsheet'style layout showing detailed breakdown of marketing revenues and e!penses. 28ength $'/ pages4.

+urrent (ales )nalysis o -verall industry sales and market share 2for at least the last year4 total market sales total for company?s product2s4 total for competition o 1y segments=product categories total for segments=product categories total for company?s product2s4 total for competition o 1y +hannels of *istribution total for each channel total for company?s product2s4 by channel total for competition by channel o 1y @eographic >egion total for each region total for company?s product2s4 by region total for competition by region

Profitability )nalysis o >evenues ,or highly detailed plans break out into categories as shown above in the +urrent (ales )nalysis section. o Marketing E!penses Types *irect A those e!penses that can be tied to the product Indirect or Proportional A generally administrative or broad marketing e!penses that may be assigned to a product based on some established criteria 2e.g., a product?s percentage of overall company sales4 Note: not all companies follow this approach ,or highly detailed plans break out into categories as shown above in the +urrent (ales )nalysis section.

+. ,n'ironmental Problems and -pportunities *escribe trends, events, conditions that are e!ternal 2usually uncontrolled by the company4 that may impact the company?s product2s4 or the market. 28ength "'$ pages4

)reas of consideration o social and cultural o demographic o economic o technological o political o legal, regulatory, ethical

.. Product/Market Analysis ools In an effort to provide an easy to visualize summary of the product2s4 consider using one or more of the following commonly used product=market analysis tools. 28ength " page4

Product 8ife +ycle )nalysis

Product 8ife +ycle 2Industry 8ife +ycle4

Analyzing Industry Maturity Stages Product Life Cycle

)o01 2asson1 3ofer1 Anderson 4 5eithaml1 3ill 4 6ones

The Product Life Cycle model can help analyzing Product and Industry Maturity Stages. Any Business is constantly seeking ays to gro future cash flo s !y ma"imizing re#enue from the sale of products and ser#ices. Cash $lo allo s a company to maintain #ia!ility% in#est in ne product de#elopment and impro#e its orkforce& all in an effort to ac'uire additional market share and !ecome a leader in its respecti#e industry. A consistent and sustaina!le cash flo (re#enue) stream from product sales is key to any long*term in#estment% and the !est ay to attain a sta!le re#enue stream is a Cash Co product% leading products that command a large market share in mature markets. Also% product life cycles are !ecoming shorter and shorter and many products in mature industries are re#italized !y product differentiation and market segmentation. +rganizations increasingly reassess product life cycle costs and re#enues as the time a#aila!le to sell a product and reco#er the in#estment in it shrinks. ,#en as product life cycles shrink% the operating life of many products is lengthening. $or e"ample% the operating life of some dura!le goods% such as automo!iles and appliances% has increased su!stantially. This leads the companies that produce these products to take their market life and ser#ice life into account hen

planning. Increasingly% companies are attempting to optimize life cycle re#enue and profits through the consideration of product arranties% spare parts% and the a!ility to upgrade e"isting products. It-s clear the concept of life cycle stages has a significant impact upon !usiness strategy and performance. The Product Life Cycle method identifies the distinct stages affecting sales of a product% from the product-s inception until its retirement. In the Introduction stage% the product is introduced to the market through a focused and intense marketing effort designed to esta!lish a clear identity and promote ma"imum a areness. Many trial or impulse purchases ill occur at this stage. .e"t% consumer interest ill !ring a!out the /ro th stage% distinguished !y increasing sales and the emergence of competitors. The /ro th stage is also characterized !y sustaining marketing acti#ities on the #endor-s side% ith customers engaged in repeat purchase !eha#ior patterns. Arri#al of the product-s Maturity stage is e#ident hen competitors !egin to lea#e the market% sales #elocity is dramatically reduced% and sales #olume reaches a steady state. At this point in time% mostly loyal customers purchase the product. Continuous decline in sales signals entry into the 0ecline stage. The lingering effects of competition% unfa#ora!le economic conditions% ne fashion trends% etc% often e"plain the decline in sales. Se#eral #ariations of the industry life cycle model ha#e !een de#eloped to address the de#elopment of the product% market% and1 or industry. Although the models are similar% they differ as to the num!er and names of the stages. 2ere are some ma3or ones4 56784 $o"4 precommercialization * introduction * gro th * maturity * decline. 56794 :asson4 market de#elopment * rapid gro th * competiti#e tur!ulence * saturation1maturity ; decline 56<94 Anderson = >eithaml4 introduction * gro th * maturity * decline 566<4 2ill and ?ones4 em!ryonic * gro th * shakeout * maturity * decline

1oston +onsulting @roup @rowth=(hare Matri!

The BC/ matri" product portfolio method

The BCG matrix method is !ased on the product life cycle theory that can !e used to determine hat priorities should !e gi#en in the product portfolio of a business unit. To ensure long*term #alue creation% a company should ha#e a portfolio of products that contains !oth high*gro th products in need of cash inputs and lo *gro th products that generate a lot of cash. It has @ dimensions4 market share and market growth. The !asic idea !ehind it is that the !igger the market share a product has or the faster the product-s market gro s the !etter it is for the company. Placing products in the BC/ matri" results in 9 categories in a portfolio of a company4 1. Stars (Ahigh gro th% high market share)

* use large amounts of cash and are leaders in the !usiness so they should also generate large amounts of cash. * fre'uently roughly in !alance on net cash flo . 2o e#er if needed any attempt should !e made to hold share% !ecause the re ards ill !e a cash co if market share is kept. 2. Cash Cows (Alo gro th% high market share) * profits and cash generation should !e high % and !ecause of the lo gro th% in#estments needed should !e lo . Beep profits high * $oundation of a company 3. Dogs (Alo gro th% lo market share) * a#oid and minimize the num!er of dogs in a company. * !e are of e"pensi#e Cturn around plansD. * deli#er cash% other ise li'uidate . !uestion "arks (A high gro th% lo market share) * ha#e the orst cash characteristics of all% !ecause high demands and lo returns due to lo market share * if nothing is done to change the market share% 'uestion marks ill simply a!sor! great amounts of cash and later% as the gro th stops% a dog. * either in#est hea#ily or sell off or in#est nothing and generate hate#er cash it can. Increase market share or deli#er cash The BCG "atrix method can help understand a fre'uently made strategy mistake4 ha#ing a one* size*fits*all*approach to strategy% such as a generic gro th target (6 percent per year) or a generic return on capital of say 6%EF for an entire corporation. In such a scenario4 A. Cash Co s Business Gnits ill !eat their profit target easily& their management ha#e an easy 3o! and are often praised anyho . ,#en orse% they are often allo ed to rein#est su!stantial cash amounts in their !usinesses hich are mature and not gro ing anymore. B. 0ogs Business Gnits fight an impossi!le !attle and% e#en orse% in#estments are made no and then in hopeless attempts to -turn the !usiness around-. C. As a result (all) Huestion Marks and Stars Business Gnits get mediocre size in#estment funds. In this ay they are una!le to e#er !ecome cash co s. These inade'uate in#ested sums of money are a aste of money. ,ither these SBGs should recei#e enough in#estment funds to ena!le them to achie#e a real market dominance and !ecome a cash co (or star)% or other ise companies are ad#ised to disin#est and try to get hate#er possi!le cash out of the 'uestion marks that ere not selected. Some limitations of the Boston Consulting Group "atrix include4 2igh market share is not the only success factor Market gro th is not the only indicator for attracti#eness of a market Sometimes 0ogs can earn e#en more cash as Cash Co s Book4 Carl :. Stern% /eorge Stalk * Perspecti#es on Strategy from The Boston Consulting /roup

7. Summary of Current Situation (ummarize all information in the (ituational )nalysis. 28ength " page4

Provide a (9-T analysis for the company?s product2s4 that includes o strengths o weaknesses o opportunities o threats Part #: Marketing Strategy and -b8ecti'es

Those reading a marketing plan need a clear picture of the direction the product will take. )lso, they want to see that some accountability has been built into the plan so that the plan is not .ust fluff but results in measurable actions. The best way to provide this information is through a section devoted to identifying the key strategies and ob.ectives for the product2s4. This section consists of three ma.or issues

Marketing (trategy ,inancial -b.ectives Marketing -b.ectives

1. Marketing Strategy In this section identify the general marketing strategy under which this plan is being developed. It is very possible that a product will follow more than one strategy 2e.g., sell more of same product to current customers but also find new customers in new markets4. Plan developers may get some guidance and also rationale for strategy by e!amining results from the (ituational )nalysis. In particular, planners may look to strategies that are suggested within the scope of Product=Market )nalysis Tools. )dditionally, planners should refer to the Mission (tatement in (tep " to insure strategies are in line with how the company views itself. 2Page length less than " page4. (trategies generally fall under one of the following 2or in some cases more than one4 ideas

Market growth 2see ansoff matri!4 o 6igher market penetration (ell more to same market 2i.e., get current customers to buy more or buy more fre7uently4 If overall market is growing this may not necessarily mean a growth in overall market share If overall market is not growing this means a growth in overall market share o ,ind new markets (ell to markets or market segments not previously targeted o *evelop new products for e!isting customers o *evelop new products for new customers Market stability o Techni7ues to keep the status 7uo Primarily used in times of economic decline or market decline @enerally re7uires the taking of market share from others in the industry +ost control o Techni7ues to contain costs or operate more effectively +an work in combination with market growth or market stability Market e!it

1.

Techni7ues to depart a market

ansoffCs product = market matri!

The )nsoff @rowth matri! is a tool that helps businesses decide their product and market growth strategy. )nsoff?s product=market growth matri! suggests that a business? attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the )nsoff product=market matri! is a series of suggested growth strategies that set the direction for the business strategy. These are described below "arket penetration Market penetration is the name given to a growth strategy where the business focuses on selling e!isting products into e!isting markets. Market penetration seeks to achieve four main ob.ectives

E Maintain or increase the market share of current products A this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling E (ecure dominance of growth markets E >estructure a mature market by driving out competitorsF this would re7uire a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors E Increase usage by e!isting customers A for e!ample by introducing loyalty schemes ) market penetration marketing strategy is very much about ;business as usual<. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will re7uire much investment in new market research.
"arket de#elopment Market development is the name given to a growth strategy where the business seeks to sell its e!isting products into new markets. There are many possible ways of approaching this strategy, including

E #ew geographical marketsF for e!ample e!porting the product to a new country E #ew product dimensions or packaging for e!ample E #ew distribution channels E *ifferent pricing policies to attract different customers or create new market segments
$roduct de#elopment Product development is the name given to a growth strategy where a business aims to introduce new products into e!isting markets. This strategy may re7uire the development of new competencies and re7uires the business to develop modified products which can appeal to e!isting markets. Di#ersification *iversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no e!perience. ,or a business to adopt a diversification strategy, therefore, it must have a clear idea about what it e!pects to gain from the strategy and an honest assessment of the risks.

2. )inancial -b8ecti'es ,or many organizations the ultimate goal of the marketing plan is the effect it will have on the bottom line. Measures reflect income statement items and common ratios. 2Page length less than " page4

+ustomer sales o by volume and growth percentage o by segments +hannel sales o by volume and growth percentage o by channel Margins Profitability >atios o use common financial ratios and other metrics associated with marketing in the industry

#. Marketing -b8ecti'es Marketing success can be measured on several non'financial market metrics. These measure are important since these often shed light on underlying conditions and circumstances facing the company that are not easily seen within financial measures. ,or instance, a company may report strong sales for a product but market share information may suggest the product is losing ground to competitors. The marketing ob.ectives section will indicate targets to be achieved across several marketing decision areas. To add additional strength to this section include marketing metrics where possible. 2Page length less than " page4

Target market ob.ectives o market share total by segments by channel o customers total number=percentage new number=percentage retained o purchases rate of purchases size=volume of purchases Promotional ob.ectives o level of brand=company awareness o traffic building 2e.g., store traffic, website traffic4 o product trials 2e.g. sales promotions, product demonstrations4 o sales force 2e.g. cycle time, cost per call, closing rate, customer visits, etc.4 +hannel ob.ectives o dealers total number=percentage new number=percentage retained o order processing and delivery on'time rate

shrinkage rate correct order rate Market research ob.ectives o studies initiated o studies completed >D* ob.ectives o product development -ther ob.ectives o partnerships developed

Part &: actical Marketing Programs This is the heart of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the ob.ectives and goals established in (tep %. It is typically the longest section of the plan, often representing 0GH or more of total page count. In this section details and timetables are presented for si! key decision areas

Target Markets Product Promotion Pricing *istribution -ther )reas

Preferably this section includes a brief summary of current marketing decisions 2see (ituational )nalysis4 so readers of the plan can easily compare what was planned to what is planned. 1. arget Market 9ssues If the target market remains the same as what was identified in the (ituational )nalysis then identifying the market will be relatively easy though .ustification for continuing with this market is re7uired. ,or new markets a more detailed discussion is needed. This section also includes the sales forecast which is the driving force for all financial forecasts. *epending on the depth of detail sought in the marketing plan, it may be a good idea to include likelihood scenarios, such as best case, worst case, and probable case, when developing the sales forecast. 28ength "'$ pages4

Target market description o 1rief summary of current target market o Identify planned changes (ummarize changes *escribe using profile 2e.g., demographic, psychographic, behavioral, etc. 4 *escribe how it will be accomplished Iustify planned changes *ue to results *ue to research *ue to competition -thers *escribe target market tactics -b.ectives Methods used change target market Profile the target marketing Product positioning

1rief summary of product postition 6ow does target market view product in relation to competitor?s products: o Identify planned changes (ummarize changes in product positioning Iustify planned changes *ue to results *ue to research *ue to competition -thers o *escribe tactics to carryout changes -b.ectives e.g. what is desired position: Methods used to change position (ales forecast for each product o 1rief summary of current sales o Identify changes (ummarize changes in forecast Iustify forecast 2i.e., figures determined based on what information:4 o *escribe forecast -b.ectives Methods used to carry out #umerical estimates +ategories Total 1y segment2s4 1y distribution channel -thers consider likelihood scenario analysis
o

2. Product 9ssues In this section discuss the decisions to be made for e!isting or new products and services. Make sure to consider all aspects of product decisions 2branding, labeling, packaging4 and not .ust the product itself. )lso, keep in mind product decisions can also impact distributors 2e.g., distributor?s response to packaging used to ship the product4. 28ength "'% pages4
o

1rief summary of current product decisions for users and distributors in terms of @eneral description e.g., category of product, product line information ,eatures=attributes offered list key features main benefits target market receives 1randing Packaging 8abeling Identify planned changes (ummarize changes ,or new products 6ow was product developed: (tage in development process Timetable for availability Iustify changes *ue to results

*ue to research *ue to competition -thers *escribe planned changes Identify changes directed to the targeted user market -b.ectives e.g., modify e!isting products, e!tend e!isting product line, develop new products, develop new uses=benefits for e!isting products, delete current product, etc. ,eatures=attributes offered 1randing Packaging 8abeling Identify changes to the distributor network -b.ectives e.g., improve distribution, improve protection, lower cost of handling, gain distribution, etc. ,eatures=attributes offered 1randing Packaging 8abeling

#. Promotion 9ssues *escribe the decisions related to how the product will be promoted. In general, promotion consists of four ma.or areas A advertising, sales promotion, public relations and personal selling A though not all may be used. Timetables for promotion are important since certain types of promotions 2e.g., magazine ads, trade shows4 re7uire long lead times. Most information in this section can be shown in tables and graphs. Each of the four promotion areas is separated out, however, some planners find it easier to combine the areas. ,or instance, the promotional areas could be combined within special promotion programs, such as 6oliday Promotion Program, (ummer Promotion Program, etc. 28ength "'/ pages4

1rief summary of current promotional decisions for users and distributors in terms of o @eneral description for four promotional areas advertising sales promotion personal selling public relations o Message=theme o Methods used (ummarize methods used (ummarize spending for each method o Interrelation of four promotional areas e.g., e!plain how advertising supports sales promotion Identify planned changes o (ummarize changes o Iustify changes *ue to results *ue to research *ue to competition -thers *escribe planned changes o Identify changes directed to the targeted user market

@eneral description for four promotional areas -b.ectives )dvertising ' e.g., build general awareness=in7uiries=traffic, encourage product trial, shift awareness 2e.g., change attitude4, response to competitor promotion, increase use or purchase rate, support other market decisions 2e.g., support sales force4, general corporate=product image building, etc. (ales promotion ' e.g., build in7uires, increase product trial, encourage repurchase, build traffic, support other promotions Personal selling ' e.g., new account development, account support=maintenance, increase product trial, encourage purchase=repurchase, build traffic, support other promotions Public relations ' e.g., build general awareness=in7uiries=traffic, encourage product trial, shift awareness 2e.g., change attitude4, respond to negative news=perception, image building, prepare markets for future activity 2e.g., new product4 Methods and message type and media used e.g., ad type 2e.g., television spots, Internet banner ads, roadside billboards, direct mail, etc.4 , sales promotion type 2e.g., coupons, demonstrations, etc.4, selling type 2e.g., sales force, call center4, pr type 2e.g., press release, pitch to magazines, etc.4 message conveyed (pending and timetables total sub'divided by type e.g., ad spending, sales force compensation media used targeted users Identify planned changes directed to the distributor network @eneral description -b.ectives )dvertising ' e.g., build general awareness=in7uiries, encourage product handling, shift awareness 2e.g., change attitude4, response to competitor promotion, increase purchase rate, support other market decisions 2e.g., support sales force4, general corporate=product image building, etc. (ales promotion ' e.g., build in7uires, encouraging inventory building, support other promotions, encourage handling of new products, obtain distributor assistance Personal (elling ' e.g., new account development, account support=maintenance, encourage purchase=repurchase=inventory building Public >elations ' e.g., build general awareness=in7uiries=traffic, encourage distribution trial, shift awareness 2e.g., change attitude4, respond to negative news=perception, image building, prepare markets for future activity 2e.g., new product4 Methods and message type and media message conveyed (pending and timetables total sub'divided by type media used

targeted distributor network

&. Distribution 9ssues This marketing tactics section lays out the distribution plan for the product or service. *istribution is a broad concept that includes all activities and entities 2e.g., value chain partners4 responsible for getting the product or service to the customer. *istribution costs can represent a high portion of the overall cost of the product so an efficient distribution system may be critical for marketing success. 28ength "'% pages4

1rief summary of current distribution network=value chain decisions o Types of channels used direct ' e.g., direct via sales force, Internet, etc. indirect ' e.g., retailers, wholesalers, agents combination o 8evel of market coverage intensive ' e.g., mass availability selective ' e.g., wide availability e!clusive ' e.g., restricted availability o -utlets handling product types number=level of penetration geographic location o Perceived product positioning in relation to competitors o *istribution costs Identify planned changes o (ummarize changes o Iustify changes *ue to results *ue to research *ue to competition -thers *escribe planned changes o -b.ectives e.g., account development, gain distributor support, account maintenance, account penetration o Types of channels employed o 8evel of market coverage o -utlets handling product o Product positioning o *istribution costs

(. Pricing 9ssues Pricing decisions can be a complicated undertaking that re7uires knowledge of the market, competitors, economic conditions and, of course, customers. ,or this section it is not necessary to provide e!tensive financial evaluation of the pricing decision since most of this will take place in Part 0 1udgeting and Implementation, however, the use of tables and graphs may be helpful in showing pricing trends and pricing decisions within various categories. 28ength "'$ pages4

1rief summary of current pricing decisions o *escribe pricing decisions by model=product segment channel

geography other o )d.ustments and )llowances *iscounting Payment terms Identify planned changes o (ummarize changes o Iustify changes *ue to results *ue to research *ue to competition -ther *escribe planned changes o -b.ectives e.g., return on investment, market share, profit level, price leadership, match competition, etc. o ,actors affecting price setting +ost factors ,i!ed costs to be covered Jariable costs +ustomer e!pectations +ompany e!pectations e.g., margins, >-I *emand +onsiderations market elasticity position on product life cycle +ompetition Economic conditions 8egal=regulatory considerations o Pricing -ptions list, preferred or suggest pricing ad.ustments and allowances sub'divided by product=model customer channel other

+. -ther Areas 2optional4 In this section include a discussion of other marketing decision areas. Two additional areas A customer support service and marketing research A are provided though it is possible others e!ist. 28ength " page or less4

Customer Support Ser'ices o 1rief summary of current customer support services decisions types offered e.g. call center, online, service desk, walk'up, on'site customers being serviced e.g., current customers, potential customers, distributor network service delivery method e.g., internally managed, contracted, partnership arrangement o Identify planned changes

(ummarize changes Iustify changes *ue to results *ue to research *ue to competition -ther *escribe planned changes -b.ectives e.g., availability, response time, satisfaction level Types offered +ustomers being serviced (ervice delivery method (pending and timetables

Market :esearch o 1rief summary of current market research efforts Pro.ects e.g., completed, in process, under consideration >esearch responsibility e.g., internally managed, contracted, partnership arrangement Identify planned changes (ummarize changes Iustify changes *ue to results *ue to research *ue to competition -ther *escribe planned changes -b.ectives e.g., customer analysis, market analysis, competitor analysis, e!ploratory Pro.ects (ervice responsibility (pending and timetables Part (: ;udgeting1 Performance Analysis and 9mplementation

In many ways this part of the marketing plan is the area that will ultimately ;sell< the plan to those who have the power to give final approval. This step consists of three key topics

Marketing 1udget ' presents a clear picture of the financial implications of the plan Performance )nalysis ' presents the e!pected results of the plan including its financial impact Implementation (chedule ' shows timelines and identify those responsible for performing tasks

1. he Marketing ;udget This section should lay out spending re7uirements necessary for meeting the plan?s ob.ectives. It is e!pected that several tables and graphs will be presented along with narratives e!plaining important budget issues. 28ength $'% pages4

-utline spending re7uirements for each tactical marketing decision o 1reakdown each tactical category e.g., types of advertising, types of services offered, marketing research e!pense, etc.

(how detailed spending timetable by Month Kear (how spending by Product 2if plan is for more than one4 (egment=@eographic area *istribution #etwork=+hannel

2. Performance Analysis This section should contain financial implications of the plan in terms of contributions to the company?s bottom line. 6-9EJE>, as was stated in the beginning of the Marketing Plan tutorial, the marketing plan is generally a component of a larger business plan. 9e do not cover a full financial discussion such as a full balance sheet, income statement, detailed ratio analysis, etc., though these could be included if necessary. )gain, numerous tables and graphs should be presented. 28ength $'% pages4

Marketing +ontribution o (how revenue versus e!penses for marketing decisions >evenue should follow sales forecasts 2see Part /4 (how e!penses by category 2e.g., advertising4 and sub'category 2e.g., types of advertising4 o 1reakdown by Product (egment=@eographic area *istribution #etwork=+hannel 1reakeven )nalysis o Primarily for plans that involve the sale of tangible products, the breakeven analysis indicates the level of sales 2generally described in terms of number of units sold4 re7uired before the company realizes positive marketing contribution. o >e7uires understanding of ,i!ed costs A cost that occur no matter level of sales Jariable costs A cost that may change as level of sales varies o Present as both graph and chart (how breakeven point over level of sales volume ,rom zero through best scenario sales level (how breakeven over time >atio )nalysis o 8imit to important marketing ratios that are common to the industry e.g., sales cycle, advertising'to'sales, conversions from trial to purchase, website traffic' to'search engine marketing, etc.

#. 9mplementation Provide a discussion of how and by whom the plan will be carried out. 28ength "'$ pages4

*etailed schedule of tasks and those responsible o 1reakdown by important tactical marketing decisions 1est presented in a @antt chart format. o Identify those responsible for each important task If unsure leave generic e.g., advertising agency, web hosting company, distributors, etc. Part +: Additional Considerations

The final ma.or section in the Marketing Plan prepares the reader for potential situations that may affect the plan. In this way the reader is provided with a somewhat more balanced picture of what the company may face as it attempts to implement the plan. 28ength $'% pages4 1. 9nternal )actors

*iscuss company factors that may affect the plan o e.g., loss of funding sources, loss of key personnel, current plan is linked to success to other products that may not reach their goals, production problems, etc.

2. ,0ternal )actors

*iscuss outside factors that may affect the plan o e.g., supply chain problems, competitor reaction, technological developments, legal environment, societal changes, economic issues, governmental concerns, etc.

#. :esearch *imitations

*iscuss problems that may e!ist with the research information on which assumptions are being made o e.g., difficult to find solid data on a certain sub.ect