Marketing Plan

Special Issue

What is a Marketing Plan?

Marketing plan is used to describe the methods of applying marketing resources to achieve marketing objectives. Marketing planning is used to

Segment markets Identify market position Forecast market size Plan viable market share within each market segment

Contents of a Marketing Plan

1. Introduction 2. Executive Summary 3. Situation Analysis

Strategic Markets Key Products and resources Competition Key Sales Areas and Distribution

4. Marketing Objectives 5. Marketing Strategies

Contents of a Marketing Plan (Continued)

6. Schedules 7. Sales Promotion 8. Financial Analysis and Projections

Budgets Projected Income Statement Projected Balance Sheet Projected Cash Flow Statement Break-even Analysis

9. Controls/Contingency Plan 10. Appendix

Marketing Plan
Introduction It includes the background to the plan, reasons for the preparation of it, and outlines its uses. Executive Summary It indicates the key points and facts of the plan and should include

The underlying assumptions on which the plan is based The objectives of the plan The timescale over which the plan will be implemented

Marketing Plan (Continued)

Situation Analysis Strategic Markets

Showing the companys key market segments. Presenting the dominant market needs.

Identifying the environmental factors that affect customer purchasing. Showing the percentage share of individual markets. Using tabular or graphical form to present this analysis.

Example: Strategic Markets

Sales by strategic market for Product A Year (all values in Million Taka) Household Business Government Total Actual 2004 20 45 50 115 % 17.4 39.1 43.5 100 Projected 2005 25 60 65 150 % 16.7 40 43.3 100

Marketing Plan (Continued)

Situation Analysis Key Products and Resources

Listing and describing key products of the company.

Discussing key commercial and technological factors relating to the products. Adding SWOT analysis on the companys products and resources. Adding product portfolio matrix (i.e. BCG matrix) for the products of a company.

SWOT Analysis
Strengths Internal capabilities that may help a company reach its objectives Weaknesses Internal limitations that may interfere with a companys ability to achieve its objectives Threats Current and emerging external factors that may challenge the companys performance
Negative

Internal External

Opportunities External factors that the company may be able to exploit to its advantage

Positive

SWOT Analysis

Marketing Plan (Continued)

Situation Analysis Competition

Identifying the major competitors and their respective market position (i.e. market share). Exploring the products, promotions, and distribution strategies of the competitors. Indicating competitors pricing strategies in the major market segments.

Marketing Plan (Continued)

Situation Analysis Key Sales Areas And Distribution

Presenting geographical distribution of the sales for both actual and projected years. Showing the key geographical market/s in terms of growth and position in each market. Discussing the distributor, agent, and/or other methods of distribution in the key sales areas.

Example: Key Sales Areas

Sales by geographic locations for Product A Year (all values in Million Taka) Dhaka Chittagong Rajshahi Total Actual 2002 4 3 3 10 2003 8 3 4 15 2004 13 4 3 20 Projected 2005 16 4 5 25 2006 19 9 7 35 2007 23 14 8 45

Marketing Plan (Continued)

Marketing Objectives These are the overall objectives that are to be achieved, and quantified in terms of -. Order intake Sales turnover Market share Profit

Example o To double market share of Product B in the household segment by 2014.

Marketing Plan (Continued)

Some Marketing Objectives

Introduce new products Extend or regain market for existing product Enter new territories for the company Boost sales in a particular product, market or price range. Enter into long-term contracts with desirable clients Raise prices without cutting into sales figures

Marketing Plan (Continued)

Marketing Strategies Indicate the companys marketing strategy as defensive, developing or attacking . List individual strategies under four headings

Strategies relating to products Strategies relating to pricing Strategies relating to advertising/promotion Strategies relating to distribution

Marketing Strategies (Continued)

Product

What are the features and benefits of our product? What is our competitive advantage? How will we position and differentiate our product? What complementary products are available?

Price

What are the costs associated with the product or service? What will our pricing strategy be?

Marketing Strategies (Continued)

Distribution

Who are our suppliers and intermediaries?

How will we make the product or service conveniently available to consumers? What partnerships can be developed to distribute the product?

Promotion

Where will we advertise? What public relations activities will be involved? What types of promotions will we run?

Marketing Plan (Continued)

Schedules Schedule shows the programme for the implementation of the action plans.

An action plan should be listed either in the main schedule or in a sub-schedule for the functions related to 4Ps. Schedule shows the responsibilities of the departments and staffs under these departments. Schedule shows the timeline for carrying out these responsibilities.

Example: Schedule

Example: Schedule

Marketing Plan (Continued)

Sales Promotion

Defining the mix of the distribution channel. Defining the structure of the sales organization.

Providing organizational chart of the sales department with a list of existing and additional sales personnel. Adding details and costs promotional campaigns. of the advertising and

Adding details of advertising and promotion schedule for next 12 18 months.

Key Financial Statements (Continued)

Key Financial Statements (Continued)

Marketing Plan (Continued)

Controls/Contingency Plan These are checkpoints for measuring and monitoring performance and for proposing corrective actions. The control process involves

Establishing standards Measuring performance

Proposing measures to correct deviations from the standard

END OF SESSION