Marketing Management Indicator 1.03

1. Marketing Management Indicator 1.03 Employ marketing-information to develop a marketing plan

2. Benefits associated with having a marketing plan • Understand past marketing decisions and outcomes better • Understand target market(s) better • Setting goals • Planning marketing strategies with more precision • Obtain funding • Provide direction in organization • Tracking progress more effectively

3. Components of a marketing plan • Executive summary • Situation/SWOT analysis • Desired target market • Marketing objectives • Marketing strategies and programs • Financial plans • Performance and implementation • Appendix

4. Purpose of marketing plan components • Executive summary • Serves as an introduction to the marketing plan • Allows the reader to understand the purpose of the marketing plan • Situation/SWOT analysis • Determines firm’s current marketing situation • Answers the basic question of “How are things now?” • Serves as a snapshot of the business’s current state of affairs as related to marketing • Desired target market • Information on the target market the company desired to reach • If NOT for a new target market/product, may be skipped • Marketing objectives • Outlines the specific marketing objectives that the company wants to achieve • Serve as a foundation for achieving sales and overall financial objectives

5. Purpose of marketing plan components • Marketing strategies and programs • Heart of the marketing plan • Identifies the general marketing strategy (growth, stability, market exit) • Financial plans • Provides details on the expected expenses and profits of a plan’s program • Performance and implementation • Give expected results and indicates how the plans’ progress will be measured • Appendix • Holds charts, graphs, or miscellaneous materials related to the plan

6. Sales Forecasts are used for: • New product decisions • Product scheduling • Financial planning • Inventory planning and procurement • Distribution • Human resource planning

7. Time Frame of Sales Forecasts • Short-range forecasts • Last fewer than three months • Intermediate forecasts • Last three months to two years • Long-range forecasts • Last more than two years

8. Factors which affect how far ahead a business should predict sales • Continual decisions in planning, scheduling, inventory and staffing in production, procurement and logistics activities are short range • Budgetary planning, cost control, marketing new products, sales force compensation plans, facility planning, capacity planning and process selection and distribution planning are intermediate • Whether to enter new markets, develop new products or services, expand or create new facilities, or arrange long-term procurement contractsare long-range

9. Qualitative vs. Quantitative Forecasting Methods Qualitative • Relies on subjective data that reports opinions rather than historical data Quantitative • Uses facts or statistical computations such as trend extensions based on past data, computer simulations, and economic models.

10. Factors affecting Sales Forecasts Internal External Market Conditions New Technology Industry Growth Trends Laws/Regulations • Sales Fluctuations • Who are our customers? • Number of customers? • Diversity of customers? • New Products • Very new? • Not similar to other items or services?