Marketing plan in 85 slides

Johanna Heinonen

Marketing is the success factor in a company Marketing can be seen in everything that is

done in a company Every function in a company has its effect to

and in marketing Even customers and stakeholders has affect

marketing results Marketing is much more than advertising

Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler)

Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer.

Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (American Marketing Association AMA)

Marketing is an on-going process without a clearend or a beginning

Everyone is a marketeer in a company Marketing has many goals

Creating knowledge or image Getting new customers Increasing sales Motivating the personnel Informing stakeholders and investors Etc

Some sort of marketing is needed in every branchand every business

A good marketer can easily form the big picture of the situation

A good marketeer knows something aboutalmost everything

A good marketeer is curios and hardworkin A good marketeer gathers enough information

and then thinks what are the best solutions to the problem

A good marketeer is creative

1. Introduction and idea2. Analyses

2.1 Organizational analysis2.2. Competitor analysis2.3. Demand analysis2.4. PEST analysis2.5. SWOT

3. Strategical decisions3.1. Target group3.2. Strategical values3.3. Goals and objectives for marketing plan

4. Implementation4.1. Product4.2. Price4.3. Place4.4. Personnel4.5. Promotion

5. Budget, timetable and responsibilities6. Follow-up

WHERE ARE WE NOW?• Facts•Information from different sources to beanalyzed• Research if needed

WHERE ARE WE GOING TO?• Your own definitions about the mostreasonable target group, the values / adjectives this target group respects and the goals for this marketing planHOW TO GET THERE?• Your own ideas/suggestions of the implementation based on the facts youhave gathered earlier and put under the topics of 5P• Strategical values should be seen in eachof 5p’s and this should be written in the report, too• In the report ther must also be the wayshow the defined implementation (5p’s) helps in reaching the goals

Knowledge of marketing and its different elementsas such

Knowledge of the phenomenons that affect targetsof marketing

Knowledge of the phenomenons that affect marketing itself

Knowledge of phenomenons that affect the environment where marketing happens

“In a time of turbulence and change, it is more true than ever that knowledge is power” John Fitzgerald Kennedy quotes (American 35th US President (1961-63), 1917-1963)

External opportunities and threats arecircumstances that can’t be affected by the company byt which has a great impact on company’s functions Competitors Demand Laws and regulations Trends and culture Technological development

First of all, We’ve got to know A LOT of our customers and the potential customers (demand) and how they are going to evolve in the future

Who they are? Where they come from? What are their characteristics (socioeconomical and demograpfical background)?

What they buy? Where they buy? How they buy? How much they buy? Why they buy?

Purchase habits? Purchase reasons? ◦ Needs, values, opinions –FEELINGS?

How are they going to change in the future?=> CUSTOMER AND DEMAND ANALYSIS

ALL THIS AFFECTS THEN COMPANY’S FUTURE DECISIONS!, because we should develop our company and our marketing mix so that customers find our company as the best alternative in the market!

Then we’ve got to know our competitors and how they are going to evolve in the future

Who they are? What they sell? How they sell? Why people buy from them? What are their values and their image? How are they going to change in the future?=> COMPETITOR ANALYSIS

We can divide our competitors to core competitors, needcompetitors, marginal competitors and potential competitors

ALL THIS AFFECTS THEN COMPANY’S FUTURE DECISIONS, because we should differ from our competitors so, that our customers think that we are the best alternative!

We should also know about the rules that companies and people should follow when the live here on Planet Earth

This means Laws, Regulations Culture Politics Sociological issues (communication etc.) Technological issues Environmental issues

=> PEST Analysis

ALL THIS AFFECTS COMPANY’S FUTURE DECISIONS, too, because we must in certain amount follow the newest trends and we must fuNction accordIng to the laws . We must also take the culture ant the politics in a country into consideration if we want to be successful.

Internal strengths and weaknesses can be Business idea: basic for whole entrepreneurship Products, prices, distribution, co-operation: what are

they, why, what needs do they fullfil etc Personnel: is there enough, what kind of skills it has, is it

motivated etc. Management: what is it, why Resources: money, machines, know-how Marketing: how is it done now, why Customers: who are they know, why etc

Then we’ve got to know A LOT about our own company and what are our future goals

Who are we? Why do we exist? What are our values and our image? What are our resources and finance? What do we sell (products and services)? What are our selling

arguments? With what price do we sell? Why? Where do we sell our product/service? Who are our distributors? Why? What is the strategy here (massdistribution or direct selling to the

customer)? How do we communicate of ourselves? What kind of adds do we have?

Why? Where? What is the central message? Why? What kind of people is there working with us? What is their meaning to

the company? What is their competence? Is there enough of them? How have we differentiated our product from our competitors?=> ORGANIZATIONAL ANALYSIS

AFTER THIS WE SHOULD COMPARE OUR PRESENT STATE TO OTHER ANALYSIS AND FIGURE OUT, how we should develop and market our company in order to differ from our competitors so that customers think we are the best alternative and still keep our own values and function according to the rules of society.

SWOT is a tool that helps you to gather informationof many different things affecting the company and its success

SWOT is based on facts that are gathered fromdifferent objective sources, not just something thatyou think or like

SWOT dividesinformation into company’sinternal strengths and weaknessesand external opportunities and threats that affect company fromoutside

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

SWOT is not a list of things, it is an analysis This means that SWOT should be written with

whole sentences and everything written in itshould be analyzed

Easist way to analyze is to think, whethersomething is good or bad and should it be changedor improved somehow

The normal / usual way to use SWOT is to think how to take advantage of strengths and opportunities how to improve weaknessed And how to foresee and prevent threats

Gather information of the company Facts about location, ownership, marketing, products, services, resources, decoration, values, personnel,

goals Analyze customers

Present vs. future Needs, values, wishes How do the customers affect business and marketing? What kind of changes / improvements they cause?

WHY? Analyze the competitors (NOTE! Competitors are those, who fight for customers’ attention and money)

Present competitors vs. future competitors Their products, services, marketing, strengths, values How should the company differentiate itself from the competitors so, that that customer would choose it

instead of competitors? What this means in practice – changes in personnel, products etc? WHY? Analyze laws and regulations

What laws and regulations affect the company and its business? How do these laws affect? What kind of demands or restrictions they set to the company?

Analyze trends and culture Are there some trends that affect demand or our business? Does culture has some impact on demand,

marketing or our business? How do these effect? Do they cause some improvements / changes? Why?

Analyze economical and technological environment and trends Are there some trends that affect demand or our business amd its marketing? How do these effect? Do they cause some improvements / changes? Why?

Be critical! Don’t just take the entrepreneurs word as the

only truth – it is usually biased and subjective Gather other information from objective sources

Your decisions and suggestions should bebased on facts – so gather enough informationof everything and many different sources and point of views

Analysis is usually 80 % of marketing plan

Now you have finished your analysis tool and know a lot more about your markets, competitors and customers than in the beginning

You also have a clue what is needed from yourorganization

Now it is time to consider company’s strategiesand target groups

It is also time to set goals that are based on the analysis, so that they are realistic and stilldemanding

CompetitorsOur company

CUSTOMER

€€

NO!YES

!

In order to make marketing more effective and to concentrate on the most profitable target group a company must divide its potential customers into target groups

Customers can be divided into groups based on Demografic and social-economic basis Psychografic basis According to situation

Nowadays the most usual way is to find groups with similar interests and values!

It is also important to think, how the companyshall keep the customers as its customers in the future

This is called as customer program and it aims to keep customers satisfied

Customer satisfaction is always customer’s owndecisions and evaluation

Customer satisfaction is effected by: The quality of product / service The whole personnels skills and attitude towards customers Managers’ attitude towards customers and personnel A long-term planning and implementing process Keeping of the service promise

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

A marketing strategy should be centered around the key concept where customer satisfaction is the main goal.

A marketing strategy is often the starting point to a marketing plan, which contains a set of specific actions required to successfully implement a marketing strategy.

A marketing strategy often binds an organization's marketing goals, policies, and action sequences (tactics) together.

Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.

Company’s values are important!

the state of affairs that a plan is intended to achieve

A goal or objective consists of a projected state of affairs which a person or a system plans or intends to achieve or bring about

A personal or organizational desired end-point in some sort of assumed development.

Many people endeavor to reach goals within a finite time by setting deadlines.

Marketing plans built with clear, stated goals — backed up with appropriate metrics and measurements — will be approved a lot more readily than those that aren't.

Marketing must develop its plans based on the realities of the business environment while remaining in alignment with corporate goals.

If a marketing plan's primary goal is not expressed in these terms, it will be difficult for the plan to gain approval from company executi

Concrete goals are a key component of all marketing plans.

Goals help to steer the development of all marketing activities, including promotions, advertising campaigns, and press related activities

Goals should be specific and measurable (quantity goals), e.g. increasing market share by two percentage points over a 12-

month period doubling sales of a particular product in six months increasing customer retention by 25 percent from one holiday

season to the next Less specific goals are often qualitative, e.g.

increasing a company's visibility within a marketplace differentiating a company from its rivals

If you state your goals clearly and with good grounds, it’s easy to follow-up whether the implementation goes right and the right and sufficient results are achieved

~ The activities and functions ~

PRICE

PLACE PROMOTION

PEOPLE

PRODUCT

PRICE

PLACEPROMOTI

ON

PEOPLEPRODUC

T

Does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of yourcustomers.

• Why would our target group ”buy” our product?• How can we make our target group interested in our product?• How can we differ from our competitors?

• Differentation• Branding

IMAGE

SUPPORTING PARTS

CORE PRODU

CT

A product can be defined as a collection of physical, service and symbolic attributes which yield satisfaction or benefits to a user or buyer.

A product is a combination of physical attributes say, size and shape; and subjective attributes say image or "quality“

COMMODITY is a common name for everything, that a company produces to the sales. It can be a product or a service

SERVICE is an immaterial commodity. PRODUCT is something real and touchable

The production of the product or service should be well planned and coordinated

The main elements to consider are the production process itself specifications culture the physical product packaging labelling branding warranty service

Product marketing in a business addresses four important Strategic questions: What products will be offered? Who will be the target customers? How will the products reach those customers? Why will customers prefer our products to those of competitors?

distinguishing the differences of a product or offering from others

to make a product more attractive to a particular target market

Source of a competitive advantageThe objective is to develop a position that

potential customers see as unique

The brand differences difference in packaging difference in an advertising theme

Differences in quality Differences in price Differences in functional features Differences in design Sales promotion activities of sellers Differences in availability

Differentiation is due to buyers perceiving a difference,

Differentiation is the possibility of charging more money from customers

However, if customers value the firm's offer, they will be less sensitive to aspects of competing offers and price may not be one of these aspects

A brand is a collection of images and ideas representing a product or a company

FOR BRANDING

COMPANY

Company name >< Individual branding Colours Sounds Forms and designs Packages Prices Logos Slogans Advertisements Names Attitudes

PLACEPROMOTIO

N

PEOPLEPRODUCT

PRICE

How much are the intended customers willing to pay?Here we decide on a pricing strategy - do not let it just happen!The consumer is often sensitive for price discounts and special offers.Price builds also the company image: something that is expensive must be good

• How should we price our product so that our customers buy it? Is priceimportant to our customers?

• How should we price our product so that it differs from our competitors?• How should we price our product so that we make some profit?

• Discounts• Terms of payment• Price creating image

Price is the result of an exchange; a numerical monetary value to a good, service or asset

In marketing the price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product.

The business may increase or decrease the price of product if other stores have the same product.

How much to charge for a product or service? How much do customers value the products and services?

What are the pricing objectives? How to set the price? (cost-plus pricing, demand based or

valuebased pricing, rate of return pricing, or competitor indexing) Should there be a single price or multiple pricing? Should prices change in various geographical areas, referred to as

zone pricing? Should there be quantity discounts? Do you use a price skimming strategy or a penetration pricing

strategy? What image do you want the price to convey? Do you use psychological pricing? How visible should the price be? Should the price be neutral? What sort of payments should be accepted?

PRICE

PROMOTION

PEOPLEPRODUCT

PLACE

~ Available at the right place, at the right time, in the right quantities ~

•What is the best place to sell our product so that it is available to ourcustomers?

• How widely should the product be sold?• Should we use distributors? Who are our distributors? Why?• How should our ”shop” (premises) look like?

• Signs• Decoration• Distributors• Storage• Availability

Place strategy tells how the product or service will be distributed to the end user. The product must be at the right place at the right time.

Two types of distribution methods: Indirect distribution – use of an retailer or an

intermediary Direct distribution - selling directly from a manufacturer

to the consumer Three type of distribution strategies

1. Intensive distribution - the product is sold in as many places as possible.

2. Exclusive distribution - a single outlet3. Selective Distribution: - A small number of retail outlets

PRICE

PLACEPROMOTIO

N

PRODUCTPEOPLE

~ People are the most important element of any service or experience. ~

•What is the meaning of people in our company and in our success?• What kind of people do we need?• How many people do we need?• Appearance of our people?• Skills and knowledge of our people?• How to motivate our staff?

People buy from people that they like Personnel’s attitude, skills and appearance are

important Personnel is a company’s first market – they must

believe in the company and know its products, strategies and values

INTERNAL MARKETING An ongoing process which aims for that personnel is

satisfied and gives its best for the company and itscustomers.

1. Hire right kind of people to the company2. Keep the good, old workers3. Motivate personnel for doing their jobs better4. Create employee job satisfaction5. Internal communication

Better job performance Responsibility for employees Common understanding of the company and its

strategies Better service to clients Improved employee development Integrates business culture, structure, human

resources management, vision and strategy with the employees' professional and social needs

Better coordination and cooperation among departments of the business.

PRICE

PLACE

PEOPLEPRODUCT

PROMOTION

PROMOTION = All communication that happens inside or outside the company1. You’ve got to have something to tell – the central message / the

service promise• Company’s point of view• Customers’ point of view!!!

2. ”The package”• You’ve got to express the central message in such a way that

customers pay attention to it, notice your message and adapt it as their own

3. Media choices• You’ve got to find the medias that your customers follow and

use them as your marketing channels• The package? / The budget? / The effect?

4. Timetable5. Responsibilities (The role of advertising agency?)

Information about a product, product line, brand, or company one of the five key aspects of the marketing mix

Definition of Promotion Promotion keeps the product in the minds of the customer and

helps stimulate demand for the product. Promotion involves ongoing advertising and publicity

Above the line promotion: promotion in the media advertiser pays for it targeted directly to the customers

Below the line promotion: All other promotion Promotion targeted to other groups than customers – affects

indirectly customers For example sponsorship, product placement, sales promotion,

public relations, trade shows

Promotional mix or communication mix: Advertising: Any paid presentation and promotion of ideas, goods, or services by an

identified sponsor Personal selling: A process of helping and persuading one or more prospects to purchase

a good or service or to act on any idea through the use of an oral presentation. Sales promotion: Incentives designed to stimulate the purchase or sale of a product,

usually in the short term Public relations: Non-paid non-personal stimulation of demand for a product, service, or

business unit by planting significant news about it or a favorable presentation of it in the media.

Two strategies: "push" and "pull". Push Uses salesmen and trade promotion to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to

retailers, and the retailers promote it to consumers. Pull Uses advertising and consumer promotion to build up consumer demand for a

product. If the strategy is successful, consumers will ask their retailers for the product, the

retailers will ask the wholesalers, and the wholesalers will ask the producers.

NOTE! With promotion you build images and give information. Whether your promotion campaign has emphasis on information or images depends firstly on customers wishes and values and secondly on your product and company.

Decisionsin

marketing communication

Interactive marketing Support for sales

Customer service

Personalselling

Advertising SalesPromotion

PublicRelatuins

Communication in the print media

Electric media(radio, TV, internet etc.)

Direct marketingOutdoor advertising

Johanna Heinonen-Salakka12.2.2002

AdvertisingA message that is sent and paid by a recognisable sender usually in massmedia. The message tells aboyt the services, products and the company and its goal ist tucreate/increase selling and/or the knowledge of the product/service/company orcreate/improve the image of the prod

Why advertising needs?1. It informs customers of the product/service/company and its contents and

elements, the price, the selling places…2. It affects people’s attitudes and feelings and it aims for creating a good product-

and company image; a brand. 3. It wants to create a will for purchase by telling the good sides and the

advantages in buying the product


The positive elements in advertising• Reaches masses• Quick• Cheap, if you consider the number of persons you

reach• Cheap for the customer

The negative elements in advertising• Expensive• Demands skills to be done right• Impersonal


How to make a good advertisement?

BASIC:Keep it simpleDon’t change it

• in order to make people remember your advertisement, you must use the same elements over and over again during the years. E.g. The color blue in Fazer blue chocklate, color Red in Viking Line, three stripes in Adidas, ”Have a Coce and a smile”

Advertisements can be• Visually same (same color, logo etc)• Verbally same (same slogan)• Orally same (same sound)


How to make a good advertisement?Go public regularyly and often enoughDon’t use too many elements in your advertisement – rather use empty spaceUse picture as often as its possible

Further information about the topic can be found e.g. the following netsites:• http://www.bly.com/Pages/documents/HTWAGA.html• http://www.marketingtoday.com/marcom/writeads.htm


CONTENTS IN ADVERTISING

• main promise / central message• the parts that support the main promise

Useful tool is AIDA (e.g. an exaggerated version is TV Shop)A get your customers’ attentionI create interestD make them desire your product / companuA make them act (buy)S guarantee satisfaction


Advertising campaing

Lasts a certain period during which the advertiser sends a message to the target group in the chosen mediasThe same message can be told with different communicationtools

Levels in advertising campaing

1. National2. Regional3. In one shop or residence

PLANNING AND ADVERTISING CAMPAIGN

Gathering backgroundinformation

Goals and target groupsfor advertising campaign

Budget

Choosing media/s

Deciding the centralMessage and contents

Implementantion:PretestingProductionPublishing

Measuring the effectivenessand gathering feed back

Publishing time

Number of repeats

Timing alternatives for an advertising campaingEven Rising Sinking Changing

Centered

Continuous

Breaking


Advertising medias

• Print media (newspapers, magazines etc) (further information e.g. http://contentmanagementsoftwares.net/Benefits_of_advertising_through_print_media.htm)

• Radio (further information e.g. http://www.rab.com/ and http://www.rab.fi/en_GB/)

• TV (further information e.g. http://www.nelonen.fi/inenglish/ and http://spotti.mtv3.fi/site/mtv3/en/)

• Internet

• Outdoor advertising adn advertising on vehicles

• Advertising in the shop

Why to choose a certain advertising media?

1. Target group

2. The elements in product or service

3. Competitor’s actions

4. Economic point of views

GOALS IN ADVERTISING• informational goals

• goals that aim for change the attitudes among target group

•goals that aim for action in target group


MEASUREMENTSIn general: Read this http://www.wan-press.org/IMG/pdf/Adfvertising_Measure_14074F.pdf

OTS – Opportunity to seeHow many times people who are reached by the media has an oppotunity to see the asvertisement

Cover numbersHow many percent of the target group will be reached

Contact numbersHow much does it cost to reach one people

Now make a list of everything, that you havethought to do in your marketing plan (in product, price, place, people, promotion etc) like this e.g…1. Task nro 1: Design a new package2. Task nro 2: Give a novelty discount3. Task nro 3: Decorate the shop4. Task nro 4: Buy new furniture5. Task nro 5: Have a TV –commercial6. Task nro 6: Have a newspaper ad7. Task nro 7: Have a direct marketing letter8. Task nro 8: Hire 2 new people9. Etc…..

Next: Figure out what each one of your tasks would cost and then count them together

1. Task 1:xxx €2. Task 2:zzz €3. Task 3:yyy €4. etc

Next step is to define the timetable for different actions (= tasks). Like this for example…

1. Task 1:The 1st of May2. Task 2:Week 383. Task 3:On July at the latest4. Task 4:During March5. Etc.

The last step in this phase is to decide who is resposible for different tasks. Here is an example again:

1. Task 1:Marketing Manager2. Task 2:Mister X3. Task 3:Advertising agency4. Task 4:Financial department5. etc.

In order to know whether your marketing plan has been succesful and if it has reached

the gols you have ste before, it is essential to measure up the results and the process itself

The results from measurement will be used in planning the next marketing round

Measurement and follow-up are in that sense a part of analysis tool Measurement and the pre-set goals go always hand in han

STEPS how to do it Decide what to follow

at least the goals and objectives you have set, but are there other important things Decide how to follow different topics

There can be different ways of following different items in one marketing plan. Each one of them must be defined

Decide when the follow up should be made Decide who is responsible for each follow-up action Decide what to do if the marketing hasn’t been succesful or the goals haven’t

been reached Think corrective measures

=> And actually here you start a new circle of planningmarketing actions

It is essential to plan in advance how to followup the results and how to gather feedback

Follow-up is usually based on the goals youhave set earlier

Targets can be almost anything Customers, Sales, Image, Profit, Turnover, Costs,

Quality of products, Development of prices, Efficiency of the distributor etc.

How to follow-up Desk survey, questionnaires, interviews

(quantitative vs. qualitative)

Johanna Heinonen

MARKETING RESEARCH

Problem IdentificationResearch Problem-Solving Research

Market Potential ResearchMarket Share Research

Image ResearchMarket Characteristics Research

Sales Analysis ResearchForecasting Research

Business Trends Research

Segmentation ResearchProduct ResearchPricing Research

Promotion ResearchDistribtion Research

Exploratory research formulates problems more precisely,

clarifies concepts, gathers explanations, gains insight, eliminates impractical ideas, and formis hypotheses

literature search or case studies Descriptive research

describes users of a product, determines the proportion of the population that uses a product, or predicts future demand for a product

who, what, where, when, why, and how aspects of the research should be defined

Causal research cause and effect relationships between

variables laboratory and field experiments

A marketing research can be done by the desk or on the field A desk study concentrates on the literature, statistics, studies etc. that

already exist and draws conclusions based on them This is usually secondary research = you don’t get the answer directly from

the target group PROS AND CONS: s usually less time consuming is usually less costly may not be updated is usually not customised to suit your needs may be sufficient if you require just general information such as industry profile,

trends and demographics A field study goes outside the firm and asks customers, competitors,

stakeholders etc. some special questions => primary research PROS AND CONS: time consuming Costly tailored to suit your specific needs valuable especially if you need to know something specific

The best way to do marketing research is to combine these two ways

Marketing research can bedone once or repeatedly

A study that is done once is called ad hoc. It usuallyconcentrates on a specialproblem or a question

Omnibus study repeatsitself in a certain timeintervals (eg. annually). The goal for an omnibusstudy is to gather materialin order to see howsomething has developed

There are two ways of doing research: qualitativeand quantitative Qualitative generally used for exploratory purposes small number of respondents not generalizable to the whole population statistical significance and confidence not calculated examples include focus groups, depth interviews, and

projective techniques Usually studies emotions, opinions and perspectives

Quantitative generally used to draw conclusions can test a specific hypothesis uses random sampling techniques so as to infer from the

sample to the population involves a large number of respondents examples include surveys and questionnaires Provides numbers and percentage (hard data) for a

certain item

Experiments and testing Observations Interviews Questionnaires Use of existing data

(desk study)

Gather background information and theory Define the problem Determine research design (method) Identify data types and sources Design data collection forms and questionnaires Determine sample plan and size Do the timetable and budget for your research Agree of the responsibilities Survey the risks in your research

Collect the data Analyze and interpret the data Prepare the research report

THANK YOU!

List the goals you have set in your marketing planearlier

Think at least one way (there can be several ways) to measure each goal you have set

Then read through your marketing plan and think, what other things are to be measured and figure out the way to do that

Finally write down a way to measure the marketing plan process

NOTE! It’s not enough to write down the ways to measure – you should also think, how the information should be used

Marketing plan in 85 slides

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Transcript of Marketing plan in 85 slides