The Marketing Plan

1. The Marketing Plan Everything is Possible From Here!

2. Major Components • Situation Analysis • Problems and Opportunities • Marketing Objectives • Marketing Strategies • Implementation • Evaluation

3. The Situational Analysis • Internal Considerations • Product • Promotion • Distribution • Price

4. Situational Analysis • External Considerations • Marketplace • Competition • Consumers • Demand • Environment

5. Problems and Opportunities • Identification Possible After SA • Problems May be Opportunities in Disguise • Promotion only Solves Communication Problems

6. Setting Objectives • Must be Specific and Measurable • Primary Marketing Objectives • Sales, Market Share, Volume • Secondary Objectives • 4 P’s

7. Marketing Strategies • Determine Target Market • Investigate Segmentation Opportunities • Product Strategies • Branding • Packaging • Distribution • Push vs. Pull

8. Marketing Segmentation • Identifying groups of people with shared characteristics within the broad markets for consumer or business products • aggregating these groups into larger segments according to their mutual interest in the product’s utility

9. Steps to Segment • Identify the needs structure of the consumer population • Group the customers into homogeneous segments • Id factors that are correlated with the segments (segmentation variables) • Select your target market • Develop your positioning strategy

10. Segmentation Variables • Demographics • age, income, sex, family size • Geographics • regions, climate, density • Behavioristic • benefits sought, usage rates, purchase occasion, psychographics

11. Demographics • Monitoring demo shifts can assist with • identifying segments • forecasting of sales • assisting with media planning • Geographic Dispersion • Population relocating to South and West from Northeast and Midwest

12. Population Growth • Relatively slow population growth in U.S. • World population to grow from 5 to 8 billion in 2025 • Concentration of growth will shift to the South and West

13. Changing Age Structures • Baby Boomers • 1946-1964 - birth of 75 million Americans • created a mini baby boom • increase in # kids <10 • preteens, teenagers and young adults declined • epicenter of society - but are aging • not a true market segment - merely share age range • Middle Agers • Nearly 83 million as of 2000 • Mature Consumers • 55 and older • quality and service > price • Highest discretionary income

14. Middle Agers • 35-54 • Not Psychologically old! • Exercise equiment, personal care items, skin care • Will spend money on grown up toys

15. Mature Consumer Segments Communication Techniques?? • Olders • 55-59 • 60-64 • Elders • 65-69 • 70-74 • The Very Old • 75-79 • 80-84 • 85 and older • Average Age • 1985 31.4 • 2000 35.5

16. Mature Consumers • 65 and over have the highest discretionary income • 12% of the population or 35 million in 2000 • Ads portray them as vital and active targeting products such as • Viagra • Internet and computers • Not a homogeneous group! Healthy hermits, ailing outgoers, frail recluses, healthy indulgers

17. Changing Age Structures • Children • Preschoolers • Elementary aged • Tweens • often play an influential role in decision making • Teenagers • Generation Y • substantial influence • conformist, narcissistic and fickle • Young Adults • Generation X • Yup and Comers, Bystanders, Playboys, Drifters

18. Changing Households - Trends • Growth of nontraditional Households • 40% population unmarried • 34 million nonfamily households • Singles have very different buying needs • example: Stouffers • New Women’s Roles • 70% working • traditional roles in advertising declining

19. New Roles for Women • Stereotypes • wife, homemaker, sexy • # in workforce growing dramatically; 70% 25-54 • staying single longer • Increasing diversity of roles

20. Ethnic Population Developments • African-Americans • 12% population • not a single market • growing market, young market, geographically concentrated, prestige buyers • Hispanic-American • Spanish speaking • 12% market • Geographically more mobile • Asian-Americans • higher incomes, growing, considerable differences, most prestigious jobs, • 50% linguistically isolated

21. Psychographic Trends • AIO • VALS - • Principle Oriented • Fulfillers - 11% ; avg age 48, responsible, educated, healthful products, • Believers - 16%; avg age 58; conserv, predictable, buy American products • Status Oriented • Achievers - 13%; avg age 36, successful, work oriented, satisfact from families and jobs • Strivers - 13%; avg age 34 fewer resources

22. VALS (cont’d) • Action Oriented • Experiencers (12%); avg age 26, high energy levels, exercisers, socialites! Buy clothes and food! • Makers (13%); avg age 30; practical, self sufficient, focus on family, work physical recreation • Others • Strugglers (14%) avg age 61; lowest incomes, not consumer oriented • Actualizers (8%) avg age 43, highest incomes, resources, and high self esteem

23. Criteria For Usable Segments • Sufficient Size • Measurability • Accessibility • Responsiveness • Durability

24. Target Markets • these are the aggregate segments that you will direct your marketing efforts towards • You’re prospects!

25. How Can the PLC be of Use in Target Marketing? • Influences the type of advertising that may be most appropriate • Primary vs. Selective Demand Stimulation • Introduction - education the focus

26. PLC (cont’d) • Growth Stage - turn the focus to the individual brand and maximize market share before competition becomes more aggressive • Maturity Stage - begin full focus on selective demand stimulation as competition increases and weaker competitors begin to exit the market

27. The Target Market Decision • Undifferentiated Marketing • Differentiated Marketing • Focused (Concentrated Marketing)

28. Positioning • Positioning by Attribute • Positioning by Price and Quality • Positioning by Use or Application • Positioning by Product User • Best Strategic Tool • Perceptual Maps!

29. Product Differentiation • Perceptible Differences - unique taste, features, quality • Hidden Differences - ingredients (i.e., natural vs. artificial chemicals, use of recyclables, etc.) • Induced Differences - branding the #1 tool!

30. Branding • the combination of names words, symbols or design that identifies the product and its source and distinguishes it from the competition • physical and perceptual dimension

31. Product PackagingFive Considerations in Package Design • Identification - visibility and legibility • Product Protection and Convenience • Consumer Appeal - color, size, material • Economy - increases costs but offset with consumer demand changes

32. Advertising and Distribution • Direct Distribution - Network Marketing • Indirect Distribution - resellers and channel members to consider • Three Primary Strategies • Intensive • Selective • Exclusive

33. Marketing Strategies • Co-op Strategies

34. Implementation • Scheduling • Budgeting

35. Evaluation • Compare Against Quantifiable Objectives

36. Advertising Plan • natural outgrowth of the marketing plan • outline of the actions, approaches and tactics that will be used to meet advertising objectives • often bounded by budgetary considerations

37. Advertising Pyramid • Action • Desire • Conviction • Comprehension • Awareness

38. Old Theory vs. New Theory • Learn-do-feel • recall Fishbein Model • high involvement • rational processing • ability! • Do-learn-feel • low involvement • lower levels of risk

39. Advertising Objectives • should support marketing objectives • deal with awareness, recall, likeability, recognition, and sometimes - action!

40. Advertising Strategy • our plan of action! • utilizes the creative mix to mobilize the forces! • target audience • product concept • communications media • advertising message

41. Creative Mix • target audience - the people you want to speak to and address the message to • product concept - the bundle of values or benefits • may be psychological or utilitarian • communications message • TV, radio, magazines, newspaper • advertising message - combo of art and copy and production to form message