Quarter 4 Marketing Plan

Objectives:

• Integrate the marketing concepts and techniques learned by preparing a marketing plan. (ABM_PM11-IIg-j-24)

• Present a mini-marketing plan, orally and in writing. (ABM_PM11-IIg-j-25)

MARKETING PLAN

It is the blueprint of how the marketing strategy is going to be implemented.

It is much more tactical in its nature.

Clarifies the key marketing elements of a business and maps out directions, objectives and activities for the business and its employees.

It is one of the most important business tools for any company to utilize.

IMPORTANCE:

1. It gives direction to an organization and its departments.

2. It helps to predict the future and control uncertainties.

3. Helps all the departments in an organization to work towards a common goal, that is, customer satisfaction.

4.  Reduces unwanted costs in marketing activities

5.  A good marketing plan help an organization to achieve its goals and objectives

6. It allows for good flow of communication between various departments

7. It removes doubts and fears, if any, from the minds of employees

8. A good marketing plan enhances coordination and control

9. Marketing planning helps in continuous improvement of marketing activities

10.  A good marketing plan leads to product innovation and new product development

11. It helps to leverage brand image and build brand equity.

Brief outline of a Mini-Marketing Plan: 

Elements or Parts of the Marketing Plan: 

Executive Summary

The Executive Summary presents in a very concise manner, vital information contained in the marketing plan such as its marketing objectives, strategy recommendation, marketing budget, projected sales, and profitability. A well written executive summary is usually no longer than one or two pages because it is a summary of the significant points and figures contained in the marketing plan and it can only be composed after the marketing plan is completed.

II. Study Background

A. Brief History of the Company

• As the starting point for your paper, select a product brand. Identify its manufacturer and write a brief history of this company. Most companies historical background can be found on the Internet. Whenever you use material from the Internet, always cite your source.

B. Mission and Vision

• Research on the company’s mission and vision through the Internet. These statements can give you vital information on its business philosophy and long-term direction. 

C. Product/Service offerings

• List down the company’s current product offerings, classifying them by type (hair care, personal care, home care. etc.) and also indicate their suggested retail prices (SRP). This product listing can determine the specific role your selected product bran displays in the company’s entire product offering of product portfolio.

III. Macro-environmental Analysis

Make an assessment of each of the company’s six macro-environments. Get the latest data possible. A marketing plan of a particular product is a plan of action for the future and is intended to be implemented in the coming year. It is important that after accessing current information, secure also authoritative information on how the figures may look like the following years.

III. Macro-environmental Analysis

A. Economic

• Latest economic data is projected. Make sure only relevant data are used. Economic factors should be concisely stated and the accompanied figures and projections acquired should also be indicated.

• An example of how to state a relevant economic factor would be: Inflation rate as of the end of 2017 is 3.2%, and is expected to 3.7% in 2019.

B. Politico-legal

• The political macro-environment is assessed. Unless there is obvious political instability, there is no need to project the political environment. An exception would be a national election, which may cause the economic and business climate to change dramatically.

C. Socio-cultural

• Identify relevant socio-cultural factors that may affect the manner of how the selected brand will be marketed.

D. Demographic

• Based on the target market, cite current and relevant figures that may affect the marketability of the product. Therefore, if the target market is “female residents of Metro Manila between the ages of 18 and 25, who are career-oriented,” determining the population of Metro Manila, the gender mix of the population, and the distribution of the population by age are all relevant to your brand’s marketability.

E. Technological

• Depending on the industry, identify relevant technological developments that may favorably or unfavorably affect the chosen brand. This may include, for example, a new production process which the company can adopt to reduce manufacturing costs or an innovative type of packaging, the patent of which may be owned by one of the competitors.

F. Natural

• A thorough analysis of the natural macro-environment is undertaken in this section: pollution, global warming and “acts of God”, among others. There is no need to project this into the marketing plan’s implementation phase, however, because these issues are not volatile over the short-term period.

IV. Opportunities and Threats

Enumerate identified opportunities and threats from the macro-environmental analysis. Arrange them chronologically. Relate them directly to a specific macro-environmental factor and justify why they are classified as opportunities or threats.

• An example is shown below:

Inflation rate as of the end of 2017 is 3.2%, and is expected to 3.7% in 2019. This is considered a threat because increase product manufacturing costs and may result in reduction in consumer demand.

V. Micro-environmental Analysis

The six Micro-environmental factors are assessed and evaluated because the Micro-environment is not expected to change dramatically over the short term. It is largely unnecessary to project the situation to the following year. The only aspect which may situationally require projection is the competitive situation.

A. The company

• The company is evaluated in terms of its organizational ability to implement marketing strategies. The relationship among functional areas must be evaluated to determine if there are bottlenecks in decision-making and if other functional departments are supportive of the marketing.

B. The Supplier

• The relationship between the company and its suppliers is assessed. This is specially for suppliers involved in the supply of raw materials vital to product manufacturing. Any opportunities to improve the company’s supply chain should also be investigated with the objective of reducing product cost and increasing value to customers.

C. Marketing intermediaries

• The company’s distribution network is illustrated and explained in this section. The choice of distribution type is reviewed and possible improvements in intermediary relationships is determined.

D. Customers

• In this section of the marketing plan, identification of the geographic, demographic and psychographic profile of the brand’s typical customer is expected. The buying behavior should be explained and understood, 

e.g. why they buy, where they buy, how frequently they buy and how they use your product.

E. Competition

• This is where the brand competitors and the companies that manufacture them are identified. If necessary, draw a perceptual map to identify the closest competitors. Identify also the relative positions of the different competing brands (including your own) in terms of market share.

E. Competition

• This is where the brand competitors and the companies that manufacture them are identified. If necessary, draw a perceptual map to identify the closest competitors. Identify also the relative positions of the different competing brands (including your own) in terms of market share.

VI. Strengths and Weaknesses

Enumerate the identified strengths and weaknesses from microenvironmental analysis. Arrange them chronologically. Relate them directly to a specific micro-environmental factor and justify why they are classified as strengths or weaknesses.

VII. The Market

A. Market size

• Show the size of your market. The total market is the sum total of the group of individual or organizational consumers who have both the willingness and financial capability to purchase a particular product or service.

• Market size is expressed either in units or in value (pesos).

B. Market needs

• Know your market intimately to be able to serve its needs. Understand and express what exactly the market is looking for in the product that you are offering. Describe the market’s needs and wants and its value perceptions of various product/service attributes.

C. Market trends

• Based on the historical trend, the segment or sub-segment’s growth rate is projected over the plan period. Trends are also identified with respect to market needs and preferences and subsequently projected.

VIII. Marketing Objectives

• Arrange the objectives in sequence. It may include brand awareness target and sales revenue objectives. They must be specific, measurable, attainable, realistic and time-bound.

• An example of a marketing objective pertaining to brand awareness is as follows:

To attain a brand awareness level of 65% by December 31, 2025.

IX. Marketing Strategies

• Marketing Strategies are proposed based on a thorough analysis of opportunities and threats, strengths and weaknesses and the market for the proposed product/service. Strategies must collectively be able to achieve all marketing objectives.

A. Product/Service Strategy

• It should be fully explained. Indicate any innovations you plan to implement in your product or service, e.g. a change in packaging or label, supplements to your service offering, etc. Identify the value proposition or unique selling proposition of the product/service.

1. Target Market

➢ Describe in detail the target market of the product/service. Use as many or as few segmentation variables as necessary to outline the target market’s geographic, demographic and psychographic profile. Quantify the size of the target market. If you plan to expand, contract or totally change your brand’s present target market, indicate the changes and justify it convincingly.

2. Brand Positioning

➢ State the current positioning of the brand/service. Remember that the positioning of your proposed product/service must be unique, beneficial and credible and must revolve around a product/service attribute that is relevant to the target market.

B. Pricing Strategy

• Based on the marketing objectives formulated, decide on a general

pricing strategy for the brand. It is possible to implement several pricing strategies for a brand during an operating year.

• For example, a brand may have a general strategy of going-rate pricing but implement promotional pricing during the last quarter of the year.

C. Distribution Strategy

• Review the brand’s current distribution strategy to determine if it still applicable for the marketing plan’s implementation period. When adjustments or modifications are required, give recommendations as to how the selected brand can be distributed more efficiently.

D. Advertising and Promotion Strategy

• Provide details of the media and promotional plan, including locations for advertising placements, their frequency and approximate costs. Also, indicate the mechanics of the trade and consumer promotions, if any their corresponding costs. Select media carefully, giving consideration on cost effectiveness.

X. Tactical Implementation

• Develop tactics for each strategy. Some strategies may only require as little as two tactical plans, while others may need to be supported by five or more tactics. There is no precise number of tactics per strategy. There should be as many tactics as necessary to contribute to successful strategy implementation.

XI. Marketing Budget

In this chapter indicate the total cost involved in the implementation of the proposed marketing plan. Only third expenditures are to be included in the marketing budget. Capital expenditures like retail outlet construction expenses and the purchase of packaging machinery are excluded from the marketing budget.

XII. Feedback and Control

The purpose of this section is to ensure that each of the tactics is carried out as planned. There should be feedback and control write-up for each of your tactics. In paragraph form, discuss individual tactic benchmarks or milestones to indicate that the tactic is implemented according to plan. Corrective measures that can be taken to ensure adherence to plan must be developed, e.g., reporting procedures and forms, coordination among parties and accountabilities.

XIII. Financial Projections

At this point, present the financial viability of your proposed marketing plan. The latest available incoming statement of your company can be used. Begin by calculating the expected revenues to be generated by your marketing plan. Add the expected amount to the average historical sales of the company. The sum is the total sales generated for the year. Using the same percentage of cost of sales from the latest available income statement, deduct the percentage amount from the total sales to obtain the gross profit. Then, add your marketing budget to the average historical operating expense. Subtract the sum from the gross profit. The difference is your income before tax (gross income). Deduct income tax (currently at 30% of income for corporations) from the gross income. The resulting amount is your income after tax (net income).

If latest income statement is not available, you can prepare a projected Income Statement using the incremental method. Simply calculate the additional (incremental) sales the brand can realize as a result of the proposed marketing plan. Use a close competitor’s historical income statement to determine percentage cost of sales. Because the competitor manufactures a similar product, its costs should be similar to yours. Apply this percentage to your incremental brand sales and deduct this amount from your incremental brand sales to arrive at incremental gross profit. Deduct your marketing budget from your incremental gross profit to determine your incremental income before income tax. Deduct incremental income tax (currently at 30% of income for corporations) to arrive at your incremental income after income tax.