Development of a Marketing Plan: Part 1 Basic Principles

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Development of a Marketing Plan Part 1 Basic
Principles
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Schick Vs. Gillette
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SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats
• Consider Oreos

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The Main Steps in the Marketing Management Process

• R ? STP ? MM ? I ? C

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• R Research
• STP Segmentation, Targeting, Position
• MM Marketing Mix
• I Implementation
• C Control (Getting feedback, evaluating
  results, and revising or improving STP strategy
  and MM tactics)

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Research

• Starting point
• Careful research into the market opportunity
• Shick
• Automotive Industry

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Sources of Information

• Internal sources
• External sources
• Government publications
• Periodicals and books
• Commercial sources
• Nielsen Media Research
• Simmons Market Research

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New Brands

• Geely
• Chery

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What do you know about these automobiles? What is
the appeal?
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Chinese Cars

• Malcolm Bricklin (Visionary Vehicles)
• Deal to import 250,000 Chinese-made cars annually
  beginning in 2007
• Opportunity ?
• Which consumer and environmental trends should
  Bricklin consider.

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Analyze Consumer and Environmental Trends

• Demographic environment
• Economic environment
• Other environmental trends
• Socio-cultural
• Political-legal
• Technological
• Natural (raw materials)

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Analyze the Competition

• List of primary and secondary competitors within
  a 30 mile radius
• Which three competitors are of the greatest
  threat?
• Create a chart summarizing each firms strengths
  and weaknesses
• Formulate your positioning strategy

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STP Strategic Marketing

• Research might uncover several segments
• Management must evaluate and decide
• Target Firepower

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Segment and then Target

• Mass.smaller groups
• Segmentation bases
• Choose one or more groups that you wish to serve,
  this is your target market

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Forecasting

• How many people are in your target market?
• www.census.gov
• Most new businesses achieve a 1-3 market share
• Estimate how many times per year your target
  market will buy your product or use your service

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Positioning

• Differentiation
• Mind of the Consumer
• Positioning Value Proposition

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Marketing Plan

• Establish 2-4 goals for your firm
• Market share (1-3)
• Sales/Profits
• Awareness level among target market

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MM Tactical Marketing

• Product
• Price
• Place
• Promotion

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Product

• Choose a product that has a clear core benefit
  for consumers
• Consider product features /benefits
• Think through branding implications of your
  product
• Functional name (nose strips)
• Image (Tiffany's)
• Experiential (Barnes and Nobel)
• The brand position should tie back to your
  strategic position

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Product

• Expand range
• Improve quality or features
• Consolidate range
• Standardize design
• Reposition
• Change the mix
• Branding

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What do these three products have in common?
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A little dab of the past

• Aqua Velva. Blue colored after-shave promoted by
  Pete Rose (1970s)
• Re-launch old brands
• Vitalis (popular in the 50s and 60s) new line
  of shampoos and mousses
• Old Spice deodorant

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Marketing Issues

• Brands have been on the market for over 50 years
• Young men have never heard of these brands. Or
  My father or grandfather used Old Spice
• Target market is a 30-year-old-guy who respects
  himself enough to want to stay in shape and stay
  attractive
• Greatest challenge is education Is a close
  shave important?

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Price

• Consider costs, markups, and competition
• Fixed costs?
• Variable costs?
• Industry standard for markups in your channel?

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Price

• How many units must you sell to break even?
• Examine competitors prices
• Value (low)
• Status quo (match)
• Prestige (high)

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Price

• Change the price
• Change the terms and conditions
• Penetration or skimming policy

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Distribution

• Channel strategy
• How direct should you be?
• Intensive, selective, exclusive?
• Number of channels? One or multiple?

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Place

• Change channels
• Change distribution methods
• Change service levels
• Consider forward or backward integration

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Marketing Communication

• Advertising
• Sales promotions (contests, premiums, samples,
  coupons)
• Public relations (press kits, sponsorships,
  speeches)
• Direct marketing

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Start UP

• 2 forms of advertising
• 2 sales promotions
• 1 form of PR
• Website
• What do you want your target market to do as a
  result of your communication?
• Aware? Try? Repeat purchase?

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Promotion

• Change advertising and/or promotion
• Change the promotions mix
• Change the message
• Is the message consistent?

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Implementation

• Engaged in strategic and tactical planning
• Now produce, price, distribute, promote
• Implementation Problems
• Presale the sales force

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Control

• Feedback
• Evaluate
• Improve