How to Write a Marketing Plan
The Marketing Plan is
a highly detailed, heavily researched and, hopefully, well written report that
many inside and possibly outside the organization will evaluate. In many
respects, the Marketing Plan is the most important document produced by
marketers as it not only helps to justify what has occurred in the past, but is
critical for explaining where a company intends to go in the future.
Th Marketing Plan is widely used by both large large
corporate marketing departments and also by small startup companies.
It is particularly important for marketers who seek funding for new projects or
to expand existing products or services.
Essentially the Marketing Plan:
·
forces the marketing personnel to
look internally in order to fully understand the results of past marketing
decisions.
·
forces the marketing personnel to
look externally in order to fully understand the market in which they operate.
·
sets future goals and provides
direction for future marketing efforts that everyone within the organization
should understand and support.
·
is a key component in obtaining
funding to pursue new initiatives.
The Marketing Plan is generally undertaken for one of the
following reasons:
1.
Needed as part of the yearly
planning process within the marketing functional area.
2.
Needed for a specialized strategy to
introduce something new, such as new product planning, entering new markets, or
trying a new strategy to fix an existing problem.
3.
Is a component within an overall
business plan, such as a new business proposal to thefinancial community.
There are many ways to develop and format a marketing plan.
The approach taken here is to present a 6-Part plan that includes:
1.
Purpose and Mission
2.
Situational Analysis
3.
Marketing Strategy and Objectives
4.
Tactical Programs
5.
Budgets, Performance Analysis and
Implementation
6.
Additional Consideration
This plan is aimed at individual products and product lines,
however, it can be adapted fairly easily for use in planning one or more strategic business units
(SBU). The page length suggested for each section represents a single-spaced
typed format for a plan focused on a single product. Obviously for
multi-product plans lengths will be somewhat longer.
It is assumed that anyone developing a Marketing Plan
possesses a working understanding of marketing principles. If you do not, it is
suggested you spend considerable time learning about basic marketing through
the previous sections of the Principles of Marketing Tutorials.
Note, throughout the plan the word "product" is
used. However, the information presented in the Marketing Plan tutorials
applies to both products and services.
Part 1: Introduction
Part 1 of the plan is
designed to provide the reader with the necessary information to fully
understand the purpose of the marketing
plan. This part also includes organizational background information, which
may be particularly important if the audience for the plan is not familiar with
the company, such as potential financial backers.
This part of the plan
contains two key components:
1. Purpose of the Marketing Plan
2. Organization Mission Statement
Some of the
information, in particular the mission statement, may require the input of
upper-management. The information in this part will prove useful later in the
plan as a point of reference for material that will be introduced (e.g., may
help explain pricing decisions). In cases in which there are separately
operated divisions or SBU, there may also be mission
statementsfor each.
Purpose of the Marketing Plan
The main bo
dy of the Marketing
Plan often starts with the planner providing the rationale for the
plan. The tasks associated with this section are to (Length: 1 paragraph):
1. Offer brief
explanation for why this plan was prod
uced
·
e.g., introduce new
product, enter new markets, continue growth
of existing product, yearly review and planning document,
etc.
2. Suggest what may be
done with the information contained in the plan
·
e.g., set targets to
be achieved in the next year, represents a departmental report to be included
in larger business or
strategic plan, etc.
Organization Mission Statement
For larger firms this
may already exist in a public way (e.g., found in annual report, found on
corporate website) but for many others this may need to be formulated.
The organization mission statement consists of a short, finely-honed paragraph
that considers the following issues (Length: 1 paragraph):
1. Identifies a stable
(i.e., not dramatically changing every year), long-run vision of the
organization that can answer such questions as:
·
Why is the company in
business?
·
What markets do we
serve and why do we serve these markets?
·
In general terms, what
are the main benefits we offer our customers?
o
e.g., a low price
software provider may state they offer “practical and highly affordable
business solutions”
·
What does this company
want to be known for?
·
What is the company
out to prove to the industry, customers, partners, employees, etc.?
·
What is the general
corporate philosophy for doing business?
·
What products/services
does the company offer?
2. In developing the
vision presented in the mission statement consider:
o
How company started
and major events of the company, products, markets served, etc.
·
Resources and
Competencies
o
Consider what the
company currently possesses by answering the
following:
§ What are we good at?
§ What is special about us compared to current
and future competitors (in general terms do not need to mention names)?
§ What do we do that gives us a competitive
advantage?
o
Consider the questions
above in terms of:
§ people, products, financial
position, technical and research capabilities, partnership/supply chain
relations, others
·
Environment
o
Consider the
conditions in which company operates including:
§ physical (e.g., facilities), equipment,
political regulatory, competitive, economic, techn
ological, others
Part
2: Situational Analysis
The situational
analysis is designed to take a snapshot of where things stand at the time the
plan is presented. It covers much of the same ground covered in the Preparing a Market Studytutorial, so those preparing a Marketing
Plan should check this out as well.
The situational
analysis covers the following key areas:
·
Current Products
·
Current Distributor
Network
·
Current Competitors
·
Financial Analysis
·
External Forces
Analysis: Current Product(s)
May be able to skip
this section if plan is for a new product and no related products exist.
Provide detailed analysis of the company’s product(s). (Length: 1-2 pages).
Describe the company’s
current product(s) offerings in terms of:
1. Product Attributes
·
Describe the main
product features, major benefits received by those using the product, current
branding strategies, etc.
2. Pricing
·
Describe pricing used
at all distribution levels such as pricing to final users and to distributors,
incentives offered, discounts,
etc.
3. Distribution
·
Describe how the
product is made accessible to final users including channels used, major
benefits received by distributors, how product is shipped, process for handling
orders, e
tc.
4. P
romotion
·
Describe promotional
programs and strategies in terms of advertising, sales promotion,personal
selling and public relations, how product is currently positioned in
the market, etc.
5. Services Offered
·
Describe support
services provided to final users and distributors before, during and after the
sale
Analysis: Current Target Market(s)
Examine in detail the
company’s current target
market(s). Obviously to do this section correctly takes a great deal of
customer-focused research. (Length: 2-3 pages).
1. Describe the target
market approach:
·
What general strategy
is used to reach targeted customers? Generally approaches include:
o
mass market – aim to
sell to a large broad market
o
segmentation approach
– aim to selectively target one (niche) or more markets
2. Describe
demographic/psychographic profile of the market:
·
Profile criteria may
include:
o
gender, income, age,
occupation, education, family life
cycle, geographic region, lifestyle, attitudes, purchasing characteristics,
etc.
3. Describe the
following characteristics of targeted customers:
·
Needs/benefits sought
by market
·
Product u
sage
o
Consider answers to
these questions related to customers using the product such as:
§ who is using the product?
§ why do they use the product?
§ when do they use the product?
§ how is the product used?
·
Product positioning
o
Evaluate how customers
perceive the product in relation to competitor’s products or to other solutions
they use to solve their problems
·
Attitudes
o
What is the target
market’s attitude regarding the company’s product?
o
What is the target
market’s attitude regarding the general product category?
§ i.e., exam the general attitude regarding how
products from all companies serve the target market’s needs
·
How does the target
market make their purchase?
o
What does the
decision-making process involve?
o
What sources of
information are sought?
o
What is a timeline for
a purchase (e.g., impulse vs. extended decision-making)?
·
Who makes the
purchase?
o
Does user purchase or
is other party responsible (e.g., parent purchasing for children)?
·
Who or what may
influence the purchase?
5. Provide market size
estimates (keep in mind these are estimates for the market not for a specific
product)
·
Provide size estimates
for the potential market
o
What is the largest
possible market if all buy?
·
Provide estimates of
size for the current target market
o
What percent of the
potential market actually purchased?
·
Provide estimates of
future growth rates
o
At least through the
timeframe for the plan (e.g., 1 year) but most likely longer (e.g., 3-5 year
projections)
Analysis: Current Distributor Network(s)
This may not apply if
company does not use distributors.Evaluate how the company’s product(s) is distributed. Clearly marketing plans
for a service company may not have much detail here but this section will most
likely have some relevance even for service firms (e.g.,package
delivery services, online legal service, etc,). (Length: 2 pages).
1. Describe the
channels/supply chain employed to sell and deliver the product: (Note:
internal sales force discussion should appear under company promotion in
Current Product Analysis above.)
·
Options may include:
o
direct to customer
o
indirect via a
distributor
o
combination of both
2. What are the
needs/benefits sought by distributors?
3. Describe the
product’s role within the distributor network:
·
How is this product
used within the distributor’s business?
·
How important is
product within the distributor’s strategy?
·
How is product
positioned?
o
e.g., how does
distributor view product in relation to competition
·
Attitudes and
perceptions about company's product(s)
4. Purchase process
·
How does distributor
network make their purchase?
·
Who or what influence
distributor’s purchases?
5. Demographics
·
Who makes up the
distributor network?
o
types
o
size
o
geographic region
o
markets served
Analysis: Current Competitor(s)
Examine the main
competitors serving the same target
market. For much more detail on analyzing competitors see the Preparing a Market Study tutorial. This section may
also benefit from the use of comparison tables. (Length: 3-4 pages).
1. Describe direct
competitors in terms of:
·
Target markets served
·
Product attributes
·
Pricing
·
Promotion
·
Distribution including
the distributor network
·
Services offered
2. Discuss
competitor’s strengths and weaknesses:
·
May need to consider
much more than just marketing issues such as:
o
target market
perception
o
R & D capabilities
3. Discuss competitive
trends:
·
May need to include
discussion of future competitive threats
Analysis: Current Financial Condition
Much of this
information can be handled within a graphical format, such as tables and
graphs, though a paragraph explanation of each is generally required. Make sure
to include total dollar (or other currency) amounts as well as percentage
market share. For more detailed marketing plans or for plans for seasonal products,
providing monthly or even weekly sales figures may be required. Provide a
spreadsheet-style layout showing detailed breakdown of marketing revenues and
expenses. (Length: 2-4 pages).
1. Current Sales
Analysis
·
Overall industry sales
and market share (for at least the last year)
o
total market sales
o
total for company’s
product(s)
o
total for competition
·
By segments/product
categories
o
total for
segments/product categories
o
total for company’s
product(s)
o
total for competition
·
By Channels of
Distribution
o
total for each channel
o
total for company’s
product(s) by channel
o
total for competition
by channel
·
By Geographic Region
o
total for each region
o
total for company’s
product(s) by region
o
total for competition
by
region
2. Prof
itability
Analysis
·
Revenues
o
For highly detailed
plans break out into categories as shown above in the Current Sales Analysis
section.
·
Marketing Expenses
o
Types:
§ Direct – those expenses that can be tied to
the product
§ Indirect or Proportional – generally
administrative or broad marketing expenses
that may be assigned to a product based on some established criteria (e.g., a
product’s percentage of overall company sales) Note: not all companies
follow this approach
o
For highly detailed
plans break out into categories as shown above in the Current Sales Analysis
section.
Analysis: External Forces
Describe trends,
events, conditions that are external (usually uncontrolled by the company) that
may impact the company’s product(s) or the market. (Length: 1-2 pages)
1. Areas of
consideration:
·
social and cultural
·
demographic
·
economic
·
technologic
al
·
political
·
legal, regulatory,
ethical
Analysis: Summary
In an effort to
provide an easy to visualize summary of the product(s) consider using one or
more of the following commonly used product/market analysis
tools. (Length: 1 page)
Finally, summarize all
information in the Situational Analysis. (Length: 1 page)
Provide a SWOT
analysis for the company’s product(s) that includes:
·
Strengths
·
Weaknesses
·
Opportunities
·
Threats
Part 3: Marketing Strategy and Objectives
Those reading a marketing plan
need a clear picture of the direction the product will take. Also, they want to
see that some accountability has been built into the plan so that the plan is
not just fluff but results in measurable actions.
The best way to
provide this information is through a section devoted to identifying the key
strategies and objectives for the product(s).
This section consists
of three major issues:
·
Marketing Strategy
·
Marketing Objectives
Identify Marketing Strategy
In this section
identify the general marketing strategy under which this plan is being
developed. It is very possible that a product will follow more than one
strategy (e.g., sell more of same product to current customers but also find
new customers in new markets). Plan developers may get some guidance and also
rationale for strategy by examining general business objectives that may be
established for the entire organization. For instance, the organization
may state within its Mission Statement or in other internal documents that
its objective is to be the market leader in all markets it serves. This would
then become an objective for the products managed by a marketer.
Additionally, the
Situational Analysis performed by the marketer may also provide insight. In
particular, planners may look to strategies that are suggested within the scope
of Product/Market Analysis
Tools. However, planners should refer to the Mission Statement in
Step 1 to ensure any strategies that are developed are in line with how the
company views itself. (Page length: less than 1 page)
Strategies generally
fall under one of the following (or in some cases more than one) ideas:
·
Higher market
penetration
o
Sell more to same
market (i.e., get current customers to buy more or buy more frequently)
§ If overall market is growing this may not
necessarily mean a growth in overall market share
§ If overall market is not growing this means a
growth in overall market share
·
Find new markets
·
Develop new products
for existing customers
·
Develop new products
for new customers
2. Market stability
·
Techniques to keep the
status quo
o
Primarily used in
times of economic decline or market decline
o
Generally requires the
taking of market share from others in the industry
3. Cost control
·
Techniques to contain
costs or operate more effectively
o
Can work in
combination with market growth or market stability
4. Market Exit
·
Techniques to depart a
market
Determine Financial Objectives
For many organizations the
ultimate goal of the marketing plan is the effect it will have on the bottom
line. Measures reflect income
statement items and common ratios. (Page length: less than 1 page)
1. Customer sales
·
by volume and growth
percentage
·
by segments
2. Channel sales
·
by volume and growth
percentage
·
by channe
l
3
.Margins
4. Profitability
5. Ratios
·
use common financial
ratios and other metrics associated with marketing in
the industry
Determine Marketing Objectives
Marketing success can be measured on several non-financial
market metrics. These measure are important since these often shed light on
underlying conditions and circumstances facing the company that are not easily
seen within financial measures. For instance, a company may report strong sales
for a product but market share information may suggest the product is losing
ground to competitors. The marketing objectives section will indicate targets
to be achieved across several marketing decision areas. To add additional
strength to this section include marketing
metrics where possible. (Page length: less than 1 page)
·
market share
o
total
o
by segments
o
by chan
nel
·
customers
o
total
o
number/percentage new
o
number/percentage retained
·
purchases
o
rate of purchases
o
size/volume of purchase
s
2. Promo
tional Objectives
·
level of brand/company awareness
·
traffic building
o
(e.g., store traffic, website
traffic)
·
product trials
o
(e.g. sales promotions, product
demonstrations)
·
sales force
o
(e.g. cycle time, cost per call,
closing rate, customer visits, etc.)
3. Channel Objectives
·
dealers
o
total
o
number/percentage new
o
number/percentage retained
·
order pro
cessing and delivery
o
on-time rate
o
shrinkage rate
o
correct order rate
4, Market Research Objectives
·
studies initiated
5. R&D Objectives
·
product development
6. Other Objectives
·
partnerships developed
Part 4: Tactical Marketing P
rograms
T
his is the heart of
the marketing
plan. It contains descriptions of detailed tactics to be carried out to
achieve the objectives and goals established in Step 3. It is typically the
longest section of the plan, often representing 50% or more of total page
count.
In this section
details and timetables are presented for six key decision areas:
·
Target Markets
·
Product
·
Promotion
·
Pricing
·
Distribution
·
Other Areas
Preferably this section
includes a brief summary of current marketing decisions (see Part 2: Situational Analysis) so readers of
the plan can easily compare what
was planned to what is planned.
Tactical Decisions: Target Market
If the target market
remains the same as what was identified in the Situational Analysis then
identifying the market will be relatively easy though justification for
continuing with this market is required. For new markets a more detailed
discussion is needed. This section also includes the sales
forecast which is the driving force for all financial forecasts.
Depending on the depth of detail sought in the marketing plan, it may be a good
idea to include likelihood scenarios, such as best case, worst case, and
probable case, when developing the sales forecast. (Length: 1-2 pages)
·
Brief summary of
current target market
·
Identify planned
changes:
o
Summarize changes:
§ Describe using profile (e.g., demographic,
psychographic, behavioral, etc. )
§ Describe how it will be accomplished
o
Justify planned
changes:
§ Due to results
§ Due to research
§ Due to competition
§ Others
·
Describe target market
tactics:
o
Objectives
o
Methods used change
target market
o
Profile the target
marketing
2. Product
Positioning:
·
Brief summary of
product postition
o
How does target market
view product in relation to competitor’s products?
·
Identify planned
changes:
o
Summarize changes in
product positioning
o
Justify planned
changes:
§ Due to results
§ Due to research
§ Due to competition
§ Others
·
Describe tactics to
carryout changes
o
Objectives
o
Methods used to change
position
3. Sales Forecast for
Each Product:
·
Brief summary of
current sales
·
Identify changes
o
Summarize changes in
forecast
o
Justify forecast
(i.e., figures determined based on what information?)
·
Describe forecast
o
Objectives
o
Methods used to carry
out
o
Numerical estimates
§ Categories:
§ Total
§ By segment(s)
§ By distribution channel
§ Others
o
Consider likelihood
scenario analysis
Tactical Decisions: Product
In this section
discuss the decisions to be made for existing or new products and services.
Make sure to consider all aspects of product decisions (branding, labeling,
packaging) and not just the product itself. Also, keep in mind product
decisions can also impact distributors (e.g., distributor’s response to
packaging used to ship the product). (Length: 1-3 pages)
1. Brief Summary of
Current Product Decisions for Users and Distributors in Terms of:
·
General description
o
e.g., category of
product, product line information
·
Features/attributes
offered
o
list key features
·
Branding
·
Packaging
·
Labeling
2. Identify Planned
Changes:
·
Summarize changes
o
For new products:
§ How was product developed?
§ Stage in development process
§ Timetable for availability
·
Justify changes:
o
Due to results
o
Due to research
o
Due to competition
o
Others
3. Describe Planned
Changes:
·
Identify changes
directed to the targeted user market:
o
Objectives:
§ e.g., modify existing products, extend
existing product line, develop new products, develop new uses/benefits for
existing products, delete current product, etc.
o
Features/attributes
offered
o
Branding
o
Packaging
o
Labeling
·
Identify changes to
the distributor network:
o
Objectives:
§ e.g., improve distribution, improve
protection, lower cost of handling, gain distribution, etc.
o
Features/attributes
offered
o
Branding
o
Packaging
o
Labeling
Tactical Decisions: Promotion
Describe the decisions
related to how the product will be promoted. In general, promotion consists of
four major areas – advertising, sales promotion, public relations and personal
selling – though not all may be used. Timetables for promotion are important
since certain types of promotions (e.g., magazine ads, trade shows) require
long lead times. Most information in this section can be shown in tables and
graphs. Each of the four promotion areas is separated out, however, some
planners find it easier to combine the areas. For instance, the promotional areas
could be combined within special promotion programs, such as Holiday Promotion
Program, Summer Promotion Program, etc. (Length: 1-4 pages)
1. Brief summary of
current promotional decisions for users and distributors in terms of:
·
General description
for four promotional areas:
o
advertising
o
sales promotion
o
personal selling
o
public relations
·
Message/theme
·
Methods used:
o
Summarize methods used
o
Summarize spending for
each method
·
Interrelation of four
promotional areas
o
e.g., explain how advertising supports
sales promotion
2. Identify planned
changes:
·
Summarize changes
·
Justify changes:
o
Due to results
o
Due to research
o
Due to competition
o
Others
3. Describe planned
changes:
·
Identify changes
directed to the targeted user market:
o
General description
for four promotional areas:
o
Objectives
§ Advertising - e.g., build general
awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change
attitude), response to competitor promotion, increase use or purchase rate,
support other market decisions (e.g., support sales force), general
corporate/product image building, etc.
§ Sales promotion - e.g., build inquires,
increase product trial, encourage repurchase, build traffic, support other
promotions
§ Personal selling - e.g., new
account development, account support/maintenance, increase product trial,
encourage purchase/repurchase, build traffic, support other promotions
§ Public relations - e.g., build general
awareness/inquiries/traffic, encourage product trial, shift awareness (e.g.,
change attitude), respond to negative news/perception, image building, prepare
markets for future activity (e.g., new product)
o
Methods and message:
§ type and media used: e.g., ad type (e.g.,
television spots, Internet banner ads, roadside billboards, direct mail, etc.)
, sales promotion type (e.g., coupons,
demonstrations, etc.), selling type (e.g., sales force, call
center), PR type (e.g., press release, pitch to magazines, etc.)
§ message conveyed
o
Spending and
timetables
§ total
§ sub-divided by:
§ type
§ e.g., ad spending, sales force compensation
§ media used
§ targeted users
·
Identify planned
changes directed to the distributor network:
o
General description
o
Objectives
§ Advertising - e.g., build general
awareness/inquiries, encourage product handling, shift awareness (e.g., change
attitude), response to competitor promotion, increase purchase rate, support
other market decisions (e.g., support sales force), general corporate/product
image building, etc.
§ Sales promotion - e.g., build inquires,
encouraging inventory building, support other promotions, encourage handling of
new products, obtain distributor assistance
§ Personal Selling - e.g., new account
development, account support/maintenance, encourage
purchase/repurchase/inventory building
§ Public Relations - e.g., build general
awareness/inquiries/traffic, encourage distribution trial, shift awareness
(e.g., change attitude), respond to negative news/perception, image building,
prepare markets for future activity (e.g., new product)
o
Methods and message
§ type and media
§ message conveyed
o
Spending and
timetables
§ total
§ sub-divided by:
§ type
§ media used
§ targeted distributor network
Tactical Decisions: Distribution
This marketing tactics
section lays out the distribution plan for the product or service. Distribution
is a broad concept that includes all activities and entities (e.g., value chain
partners) responsible for getting the product or service to the customer.
Distribution costs can represent a high portion of the overall cost of the
product so an efficient distribution system may be critical for marketing
success. (Length: 1-3 pages)
·
Brief summary of
current distribution network/value chain decisions:
o
Types of channels used
§ direct - e.g., direct via sales force,
Internet, etc.
§ indirect - e.g., retailers, wholesalers,
agents
§ combination
o
Level of market
coverage
§ intensive - e.g., mass availability
§ selective - e.g., wide availability
§ exclusive - e.g., restricted availability
o
Outlets handling
product
§ types
§ number/level of penetration
§ geographic location
o
Perceived product
positioning
§ in relation to competitors
o
Distribution costs
·
Identify planned
changes:
o
Summarize changes
o
Justify changes:
§ Due to results
§ Due to research
§ Due to competition
§ Others
·
Describe planned
changes:
o
Objectives
§ e.g., account development, gain distributor
support, account
maintenance, account penetration
o
Types of channels
employed
o
Level of market
coverage
o
Outlets handling
product
o
Product positioning
o
Distribution costs
Tactical Decisions: Pricing
Pricing decisions can
be a complicated undertaking that requires knowledge of the market,
competitors, economic
conditions and, of course, customers. For this section it is not
necessary to provide extensive financial evaluation of the pricing decision
since most of this will take place in Part 5 Budgeting and Implementation,
however, the use of tables and graphs may be helpful in showing pricing trends
and pricing decisions within various categories. (Length: 1-2 pages)
·
Brief summary of
current pricing decisions:
o
Describe pricing
decisions by:
§ model/product
§ segment
§ channel
§ geography
§ other
o
Adjustments and
Allowances
§ Discounting
§ Payment terms
·
Identify planned
changes
o
Summarize changes
o
Justify changes:
§ Due to results
§ Due to research
§ Due to competition
§ Other
·
Describe planned
changes:
o
Objectives
§ e.g., return on investment, market share,
profit level, price leadership, match competition, etc.
o
Factors affecting
price setting
§ Cost factors
§ Fixed costs to be covered
§ Customer expectations
§ Company expectations
§ e.g., margins, ROI
§ Demand Considerations
§ market elasticity
§ Competition
§ Economic conditions
§ Legal/regulatory considerations
o
Pricing Options
§ list, preferred or suggest pricing
§ adjustments and allowances
§ sub-divided by:
§ product/model
§ customer
§ channel
§ other
Tactical Decisions: Additional Considerations
(These may be
optional.)
In this section include a discussion of other marketing decision areas. Two
additional areas –customer
support service and marketing research – are provided though it is
possible others exist. (Length: 1 page or less each)
·
Customer
Support Services
o
Brief summary of
current customer support services decisions:
§ types offered:
§ customers being serviced:
§ e.g., current customers, potential customers,
distributor network
§ service delivery method:
§ e.g., internally managed, contracted,
partnership arrangement
o
Identify planned
changes
§ Summarize changes
§ Justify changes:
§ Due to results
§ Due to research
§ Due to competition
§ Other
o
Describe planned
changes
§ Objectives
§ e.g., availability, response time,
satisfaction level
§ Types offered
§ Customers being serviced
§ Service delivery method
§ Spending and timetables
·
Market
Research
o
Brief summary of
current market research efforts
§ Projects
§ e.g., completed, in process, under
consideration
§ Research responsibility
§ e.g., internally managed, contracted,
partnership arrangement
§ Identify planned changes
§ Summarize changes
§ Justify changes:
§ Due to results
§ Due to research
§ Due to competition
§ Other
§ Describe planned changes
§ Objectives
§ Projects
§ Service responsibility
§ Spending and timetables
Part 5: Budgeting, Performance and Implementation
In many ways this part
of the marketing plan is the area that will ultimately "sell" the
plan to those who have the power to give final approval. This step consists of
three key topics:
·
Performance Analysis -
presents the expected results of the plan including its financial impact
·
Implementation
Schedule - shows timelines
and identify those responsible for performing tasks
Setting the Marketing Budget
This section should
lay out spending requirements necessary for meeting the plan's objectives. It
is expected that several tables and graphs will be presented along with
narratives explaining important budget issues. (Length: 2-3 pages)
·
Outline spending
requirements for each tactical marketing decision
o
Breakdown each
tactical category
§ e.g., types of advertising, types of services
offered, marketing research expense, etc.
o
Show detailed spending
timetable by:
§ Month
§ Year
o
Show spending by:
§ Product (if plan is for more than one)
§ Segment/Geographic area
§ Distribution Network/Channel
Performance Analysis
This section should
contain various performance
metrics including the financial implications of the plan in terms of
contributions to the company’s bottom line. HOWEVER, as was stated in the
beginning of the Marketing Plan tutorial, the marketing plan is generally a
component of a larger business plan. We do not cover a full financial
discussion such as a full balance
sheet,income
statement, detailed ratio analysis, etc., though these could be included if
necessary. Again, numerous tables and graphs should be presented. (Length: 2-3
pages)
·
Marketing Contribution
o
Show revenue versus
expenses for marketing decisions
§ Revenue should follow sales forecasts (see
Part 4)
§ Show expenses by category (e.g., advertising)
and sub-category (e.g., types of advertising)
o
Breakdown by:
§ Product
§ Segment/Geographic area
§ Distribution Network/Channel
·
Breakeven Analysis:
o
Primarily for plans
that involve the sale of tangible products, the breakeven analysis indicates
the level of sales (generally described in terms of number of units sold)
required before the company realizes positive marketing contribution.
o
Requires understanding
of:
§ Fixed costs – cost that occur no matter level
of sales
§ Variable costs – cost that may change as level
of sales varies
o
Present as both graph
and chart
§ Show breakeven point over level of sales
volume
§ From zero through best scenario sales level
§ Show breakeven over time
·
Ratio Analysis
o
Limit to important
marketing ratios that are common to the industry
§ e.g., sales cycle, advertising-to-sales,
conversions from trial to purchase, website traffic-to-search engine
marketing, etc.
Implementation
Provide a discussion
of how and by whom the plan will be carried out. (Length: 1-2 pages)
·
Detailed schedule of
tasks and those responsible:
o
Breakdown by important
tactical marketing decisions
§ Best presented in a Gantt chart
format.
o
Identify those
responsible for each important task:
§ If unsure leave generic
Part 6: Additional
Considerations
The final major section in the
Marketing Plan prepares
the reader for potential situations that may affect the plan. In this way the
reader is provided with a somewhat more balanced picture of what the company
may face as it attempts to implement the plan. (Length: 2-3 pages)
1. Internal Factors
·
Discuss company factors that may affect the plan
o
e.g., loss of
funding sources, loss of key personnel,
current plan is linked to success to other products that may not reach their
goals, production problems, etc.
2. External Factors
·
Discuss outside factors that may affect the plan
o
e.g., supply chain problems, competitor
reaction, technological developments, legal environment, societal changes,
economic issues, governmental concerns, etc.
3. Research Limitations
·
Discuss problems that may exist with the
research information on which assumptions are being made
o
e.g., difficult to find solid data on a certain
subject
