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 • Allows the opportunity to look back and see what strategies worked well—and didn’t • Understand target market(s) better • No success unless the customers’ needs and wants are met. • Setting goals • Set goals are easier to remember, stick to, measure, and achieve. • Planning marketing strategies with more precision • Provides clear guidance on what strategies will be used and when. • Obtain funding • Potential investors will want to see a plan before putting money into a business. • Provide direction in organization • Clear direction is provided for everyone • Tracking progress more effectively • Can track progress in a measurable way

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. Items/Factors that use Sales Forecasts • New product decisions • Product scheduling • Financial planning • Inventory planning and procurement • Distribution • Human resource planning

7. The 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 statistical computations such as trend extensions based on past data, computer simulations, and economic models.

10. Factors affecting Sales Forecasts • Sales Fluctuations • Who are customers? • Number of customers? • Diversity of customers? • New Products • Very new? • Not similar to other items or services? • Market Conditions • Change for NUMEROUS reasons • Ex: Quick jump in fuel prices • People stop driving unnecessarily • People buy less gas • Ex: Release of new technology • Makes previous technology obsolete (Smart Phones replaced Palm Pilots and cell phones)

11. Business Activities which use Sales Forecast Information as a Planning Tool • Volume of attainable sales • Material costs • Labor costs • Equipment costs • Markets for products • Plans corporate strategy • Develops sales quotas • Determines the number and allocation of salespeople • Decide distribution channels • Prices products or services • Analyzes products and product potential in different markets • Decides on product features • Determines profit and sales potential for different products • Constructs advertising budgets • Determines the potential benefits of sales promotion programs • Decides on the use of various elements of the marketing mix • Sets production volume and standards • Chooses suppliers • Defines financing needs • Determines inventory standards

12. Why not all businesses use sales forecasts • Forces decisions to be based on facts rather than hunches. • Don’t want to look for historical information (there are no past sales) • It is a difficult and hard process • Some do not want to put forth the effort and energy • Doing it correctly is the key to understanding your business’s future.