Mcom 341-11 Marketing Plans

Arens Contemporary Advertising 10e

Marketing Plans

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Class Objectives

Explain the role and importance of a marketing plan

Give examples of need-satisfying and sales-target objectives

Explain the difference between objectives, strategies, and tactics

Define top-down, bottom-up & integrated marketing communications planning

Describe how marketing and advertising plans are related

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The Marketing Plan

Assembles relevant facts about the organization, its markets, products, services, customers, and competition

Forces company departments to work together (pro-duct development, production, selling, advertising, credit, transportation) to focus efficiently on the customer

Sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them

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Effect of Marketing Plan on Advertising

Defines the role of advertising within the marketing mix (product, price, place, promotion).

Enables better implementation, control, and continuity of advertising programs

Ensures the most efficient allocation of advertising dollars

Porsche ad: localemedia.comSubaru ad: autospectator.com

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Situation Analysis

Marketing Objectives

Marketing Strategy

Marketing Tactics

TOP-DOWN MARKETING

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Step 1: Situational Analysis

Factual statement of the organizations current situation and how it got there.

Company history

Growth

Products and services

Sales volume

Share of market

Competitive status

Markets served

Distribution systems

Advertising programs

Market research

Company capabilities

SWOT

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Situation Analysis: SWOT

STRENGTHS (internal factor):

The positive attributes, tangible and intangible, internal to your organization

Within your control

What do you do well?

What resources do you have?

What advantages do you have over your competition?

E.g. employees with expertise, the best equipment, strong customer base, high quality

Graphic: browselocaljobs.comDescription: articles.mplans.com

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WEAKNESSES (internal factor):

The negative aspects of your business that detract from the value you offer, or place you at a competitive disadvantage

Within your control

Areas in need of improvement to effectively accomplish your marketing objectives

E.g. inadequate technology, lack of expertise, poor customer service, bad business location


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OPPORTUNITIES (external factor):

The external, attractive factors that represent the reason for your business to exist and prosper

Outside your control

What opportunities exist in your market, or in the environment, from which you hope to benefit?

E.g. growth of product class, lifestyle changes, market trends


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THREATS (external factor):

Factors beyond your control that could place your marketing strategy, or the business itself, at risk

Outside your control

What situations might threaten your marketing efforts?

E.g. the economy, government regulation, competition, bad reputation, price increases


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SWOT Analysis Example:

from MarketingTeacher.com

Logo: fanpop.com

STRENGTHS:

Prestigious, established, successful, global operation with sales in USA, Europe and Asia.

Synonymous with social responsibility and environmentalism. For example, its products are packed in unbleached cardboard containers.

Ben & Jerrys donates a minimum of $1.1 million of pretax profits to philanthropic causes yearly.

The company sells colorfully named ice cream and frozen yogurt under brand names such as Chunky Monkey, Phish Food, and Cherry Garcia.

750 Ben & Jerry's Scoop Shops worldwide.

In 2008, 2nd (36%) only to Haagen-Dazs (44%) in market share.

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Logo: fanpop.com

WEAKNESSES:

In 2006 former CFO Stuart Wiles was convicted of embezzling some $300,000 from the company during his tenure at Ben & Jerry's, which ran from 2000 to 2004.

In 2006 they had to stop using Michael Foods as their egg supplier, due to bad PR from the Humane Society, which alleged that Michel Foods treated chickens inhumanely.

Their clear focus on multiple social responsibility issues can hurt the company by shifting the focus away from important business matters, and also adding unnecessary costs.

They need more experienced management to fuel aggressive growth in a downturned economy and change flat sales in their premium product lines.

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Logo: fanpop.com

OPPORTUNITIES:

Provide more fat-free and healthy alternatives, along with frozen yogurt, amid todays health consciousness.

Provide allergen free food items, such as gluten free and peanut free.

Good PR: in 2009 Ben & Jerry's announced plans to roll out the country's first HFC-free freezers, freezers that would not emit harmful chemicals into the atmosphere.

Expand existing product lines to compete with the 'private-in house brands' offered by supermarkets.

Sell Ben and Jerry's premium ice cream in South America (which is an emerging market that has yet to be capitalized upon) and in new markets like Asia.

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Logo: fanpop.com

THREATS:

Consumers, especially Ben & Jerrys target market, which are accustomed to reading nutrition labels, have become more health conscious.

Any contamination of the food supply, especially e-coli.

Major competitors, like Nestle (Pillsbury), Kraft Foods, Dunkin Donuts, and Dean Foods, as well as grocery store label products.

Animal feed prices are rising, partly because biofuel crops are replacing cow fodder, which pushes up the cost of milk.

Prices of all milk products are rising worldwide, due to low supply and high demand. There may soon not be enough milk to meet demand, and there could be a global milk shortage.

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Step 2: Marketing Objectives

Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives.

Need-satisfying objectives

Sales-target objectives

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Need-satisfying Objectives

What customer needs does the product satisfy?

Nutrition

Convenience

Refreshment

Hope

Financial security

Puts the customer first

What are we planning to do for the customer?

What is the value of that to our customer?

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Sales-target Objectives

Specific, quantitative, realistic marketing goals to be achieved within a period of time.

Total sales volume

Sales volume by product, market segment, customer type

Market share

Growth rate

Gross profit

What are we planning to do for ourselves?

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Step 3: Marketing Strategy

The statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company the how-to of the marketing plan and is determined by the blend of the marketing mix elements (the 4Ps) that the company can control

Three Steps:

Defining the target markets

Determining the strategic positioning

Developing an appropriate mix for each market

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Selecting the Target Markets

GAP photo: nitrolicious.com GAP logo: fashionista.com ON logo: busymom.net ON photo: reviewretreat.com BR photo: smartcanucks.ca BR logo: gogetglasses.com

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Positioning the Product

Positioning: the association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.

In the fast food world, Subway positions itself as the healthy chain with a customizable menu.

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7 Positioning Strategies

PRODUCT ATTRIBUTE: Stress a particular product feature important to consumers. (Ben & Jerrys)

PRICE/QUALITY: Position on the basis of price or quality. (Old Navy)

USE/APPLICATION: Position based on how the product is used. (Arm & Hammer Baking Soda)

PRODUCT CLASS: Position against other products that, though not the same, offer the same class of benefits. (Dodge Ram v. Ford F-150)

PRODUCT USER: Position with the group who uses the product. (Viagra, LEGO)

PRODUCT COMPETITOR: Position against competitors to define the brand. (AT&T v. Verizon)

CULTURAL SYMBOL: Position through the creation or use of some recognized symbol or icon. (Coca-Cola, Apple)

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Selecting the Marketing Mix

Determine a cost-effective marketing mix for each target market

Product

Price

Place

Promotion

Each choice depends on:

Products target market

Its position in the market

Stage in the product life cycle

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Marketing Mix (MarketingTeacher.com)

Product

Price

Place

Promotion

Search results available on the worlds leading search engine through Google AdWords.

Advertisers bid for keywords. The more valuable the keyword, the higher the price.

Self-service via the world wide web.

Google uses AdWords.

B2B magazine ads.

Display ads online.

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Top-down case study: Mountain Dew

First Mountain Dew TV ad: http://www.youtube.com/watch?v=4xd8fzk8Rlk

Photo: rustbot82.blogspot.com

Early Mountain

Dew billboard

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Analysis leads to new positioning

Mountain Dew commercial, 1981

http://www.youtube.com/watch?v=FGhpvtHOumo

Mountain Dew commercial, 1997

http://www.youtube.com/watch?v=8usF-CzymY4

Ad: asweetlife.org

In the 1970s Mountain Dew repositioned its product as a high-energy, youth-oriented, citrus-flavored soft drink.

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Marketing objectives

Sales-target objectives:

Increased case volume

Increased share of market

Growth

Share of growth

Need-satisfying objectives:

Refreshment

Energy

Big flavor

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Marketing Strategy

Target market: Active, street-smart teenagers and 20-39 year olds, especially males.

Positioning (per Pepsico): Mountain Dew is the great-tasting soft drink that exhilarates like no other because it is energizing, thirst quenching, and has a unique citrus flavor.

Photo: flickr.com

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Marketing Mix: Product, Price, Place

Product: Original formula plus diet and several other flavors, including some chosen by consumers (Dewmocracy). Some products also retailer specific (Taco Bell, 7-Eleven).

Price: Competitively priced with other soft drinks.

Place: Available throughout the United States. Decaffeinated version available in limited other countries.

Photo: theconsumerscorner.net

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Promotion: Web Site, Green Label Art

Green label art commercial: http://www.youtube.com/watch?v=PSK7tsYHMM4

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Promotion: Sports Sponsorships

Dew Tour

AMP #88 in NASCAR

Mountain Dew was a sponsor of the first X Games in 1995 and has been prevalent in action sports since then.

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WOW Photo: besportier.comMGS Photo: giantbomb.com

Halo 3 Game Fuel ad: http://www.youtube.com/watch?v=uO-J5ImDEi8

World of Warcraft Game Fuel print ad

Promotion: Gaming

Product placement in Metal Gear Solid: Peace Walker

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Promotion: Events

Photo: xfire.com

Traveling promotional trailer

Virtual event

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Marketing Results

Marketing Tactics

Marketing Strategy

BOTTOM-UP MARKETING

How small companies work and some big ones.

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Keys to Building Brand Equity

Market relationships, not transactions

Customers, not products, are the focus

Know that the customer has choices

RELATIONSHIP MARKETING

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The Importance of Relationships

Cost of lost customers (LTCV)

How much does it cost to lose a customer to poor service or product disappointment?

Cost of acquiring new customers

It costs 5-8x more to acquire a new customer as it does to keep a loyal one.

Value of loyal customers

Companys first market. 90% of profits come from repeat purchasers.

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Transactional(Basic)

Reactive

Accountable

Proactive

Partnership

Levels of Relationships

Company works continuously with customers to deliver better value.

Company contacts customers occasionally with suggestions or new products.

Company contacts customers shortly after sale for feedback, suggestions.

Company asks customers to contact them if any problems with the product or service.

Company sells the product but does not follow up in any way.

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High MediumLowManyAccountableReactiveBasicMediumProactiveAccountableBasicFewPartnershipAccountableReactive
Levels of Relationships

# of Customers

Profit Margins

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Relationship Marketing IMC

Integrated Marketing Communications (IMC):

Centers around relationships with customers & potential customers (touchpoints)

Means a coordinated, strategic communications program where each element reinforces the other elements

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Integrated Marketing Communications

Endcap: arman.wordpress.com Event: nol.google.com Print/mobile ad: techielobang.com Facebook: insidefacebook.com Employee: guardian.co.uk

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Planned

Product

Service

Unplanned

IMC: 4 Sources of Brand Messages

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Say

Planned messages

Do

Product & servicemessages

Confirm

Unplanned messages

IMC: The Integration Triangle

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IMC: 3 Dimensions

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Consistent Positioning

Facilitate Interactions

Social Responsibility

Mcom 341-11 Marketing Plans

Education

Transcript of Mcom 341-11 Marketing Plans