Marketing Plan

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Marketing Plan

• Business Plan Preparation
• College of Business Administration
• University of Central Florida

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Agenda

• Company Overview
• Marketing Plan
• Next week

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Company Overview
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Company Overview

• Introduction (1 paragraph)
• Name, location, organization
• Slogan
• Mission Statement
• History and Current Status (1 paragraph)
• Markets and Products
• Objectives
• Length about 1 page

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Slogan

• Pithy 4 to 10 word statement of company purpose
• Use in business plan, advertising, descriptions
  of business, business cards,

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Mission Statements

• What is a mission statement?
• What makes a good mission statement?

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Mission StatementsFast Food Industry
To make, distribute and sell the finest quality
all-natural ice cream and related products in a
wide variety of innovative flavors made from
Vermont dairy products. Ben Jerrys To
satisfy the world's appetite for good food, well
served, at a price people can afford. McDona
lds
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Mission StatementLL Bean
Sell good merchandise at a reasonable price
Treat your customers as you would your friends.
Leon Bean, 1911
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission StatementGeneral Electric
Become 1 or 2 in every market we serve and
revolutionize this company to have the agility of
a small enterprise. Jack Welch, 1983
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission StatementShipbuilding
We will always build good ships. At a profit if
we can, At a loss if we must, But always good
ships. Bath Ship Works
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Mission StatementGreat Britain WWII
Our whole people and empire have vowed themselves
to the single task of cleansing Europe of the
Nazi pestilence and saving the world from the new
dark ages. We seek to beat the life and soul of
Hitler and Hitlerism. That alone. That all the
time. That to the end. Winston Churchill, 1941
Collins and Lazier, Managing the Small to
Mid-sized Company
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Mission Statements

• What makes a good mission statement?

• Compelling
• Inspiring
• Clear, measurable objectives
• Concise

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Marketing Plan
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Marketing Plan Objectives

• Most important piece of your plan
• Build on industry and marketplace analysis
  define your niche
• Identify your customers
• Demonstrate how you will solve problems for
  customers
• Describe how you will reach customers
  advertising sales
• Convince reader that there is an eager market for
  your product or service

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Marketing Plan Outline

• Introduction
• Target Market
• Product/Service Strategy
• Pricing Strategy
• Distribution Strategy
• Advertising and Promotion
• Sales Strategy
• Sales and Marketing Forecasts

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Introduction

• Seven sentence introduction
• The first sentence tells the purpose of the
  marketing strategy.
• The second tells how youll achieve this purpose,
  focusing upon your benefits.
• The third tells your target market or markets.
• The fourth, the longest sentence, tells the
  marketing weapons youll employ.
• The fifth tells your niche.
• The sixth tells your identity.
• The seventh tells your budget, expressed as a
  percentage of your projected gross revenues.

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Introduction Example
The purpose of Prosper Press is to sell the
maximum number of books at the lowest possible
selling cost per book. This will be accomplished
by positioning the books as being so valuable to
free-lancers that they are guaranteed to be worth
more to the reader than their selling price.
The target market will be people who can or do
engage in free-lance earning activities.
Marketing tools to be utilized will be a
combination of classified advertising in
magazines and newspapers, direct mail, sales at
seminars, publicity in newspapers and on radio
and television, direct sales calls to bookstores,
and mail-order display ads in magazines. The
niche to be occupied is one that stands valuable
information that helps free-lancers succeed, the
ultimate authority for free-lancers. Our
identity will be one of expertise, readability,
and quick response to customer requests. Thirty
percent of sales will be allocated to marketing.
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Target Market Strategy

• Identify the market niche you will serve
• Be as specific as possible
• Better to be too specific
• Benefits to target market
• What problems do you solve?
• What needs do you fulfill?

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Two Types of Benefits

• Emotional
• Hope, fear, love guilt, greed, convenience
• Financial
• Increased profit, value pricing, save money,
  payback period

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Talk to Your Customers

• Imperative that you talk with customers!
• Casual conversations
• Interviews
• Surveys
• Focus groups
• Identify needs
• Listen!

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Target Market Questions

• What buy now? How get service?
• Would you be interested in ?
• Demographics
• Newspapers, magazines, TV
• Would you buy?
• Where would you expect us to advertise?
• Who do you consider our competition?
• Other comments?

Levinson, Guerrilla Marketing 3rd edition
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Creating New Market SpaceHBR, Kim Mauborgne
New MarketSpace
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Product/Service Strategy

• Describe how the design of your product/service
  fulfills unmet marketplace needs
• Differentiate your product/service from the
  competition
• Explain why and how customers will switch to your
  product or service
• Describe how you will defend your product or
  service from competition

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Product Attribute Map
Attribute 1
Competitor 3
You
Competitor 1
Attribute 2
Competitor 2
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Pricing Strategy

• Describe and justify your pricing strategy
• Provide evidence that your target market will
  accept your price
• Position your strategy relative to current and
  potential competition
• NOTE Low price often (usually) is NOT a good
  strategy for a startup!

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Advertising/Promotion

• Describe how you will communicate with current
  and potential customers
• Advertising
• Public relations
• Personal selling
• Printed materials
• Other means of promotion
• Explain why this be strategy is most effective in
  reaching your target market
• Note See Guerrilla Marketing

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Distribution Strategy

• Explain how you will deliver your product or
  service to your customers
• How will your customers acquire your product or
  service
• Describe and justify the distribution channels
  you will use
• Describe how you will gain access to your planned
  distribution channels

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Sales Strategy

• Describe to whom you must sell your product or
  service (not always obvious)
• Explain how you will sell
• An internal sales force
• Manufacturer's representatives
• Telephone solicitors
• Describe how you will support your sales effort
• internal staff
• service operations

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Goals for Marketing Plan

• Compelling story that there is a need in the
  market
• Need flows logically from industry analysis
• Product/service designed to fulfill market needs
• Advertising, price, distribution, and sales all
  flow logically, convincingly from characteristics
  of the market
• WOW! What a great idea! I wish I had thought of
  that

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Next Week

• Lecture/Discussion
• Step 4 Operations Plan