bmgt 411 week_1

BMGT 411: Week 1

Wood Chapter 1: Marketing Plan Framework

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Marketing Planning Is Important

• Today, consumers have:

• Better information,

• More choices,

• Higher expectations,

• Better market access, and

• More purchasing power.

• Consumers are getting more involved in marketing.

• Consumers demand more transparency.

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Marketing and the Concept of “Value”

• AMA Definition of Marketing:

• “…the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.”

• Thus, marketing covers everything the company is and does to consistently provide competitively-superior value.

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Marketing Planning

• Marketing planning is the structured process of determining how to provide value to customers, the organization, and key stakeholders by:

• Researching and analyzing the current situation,

• Developing and documenting the firm’s objectives, strategies, and programs, and

• Implementing, evaluating, and controlling marketing activities.

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The Marketing Planning Process

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Contents of the Marketing Plan

I. Executive Summary

II. Current Marketing Situation

III. Target Market, Customer Analysis, Positioning

IV. Objectives and Issues

V. Marketing Strategy

VI. Marketing Programs

VII. Financial and Operational Plans

VIII. Metrics and Implementation Control

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The Strategic Planning Process

• Overall Strategic Plans, Business Plans, and the Marketing Plan

• Overall Strategic Plan: Lays out the broad strategies for all of the firm’s units, divisions and departments over a 3–5 year planning horizon.

• Business Plan: Outlines the organization’s overall financial objectives and explains the overall strategy for achieving these objectives. It is usually a 1 – year plan.

• Marketing Plan: Created at a lower level than the Overall Strategic Plan and the Business Plan. Contains much more detail about the coming year’s marketing strategy and implementation.

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General Considerations When Developing a Marketing Plan

• Consider how competitors and other stakeholders may influence the plan.

• The planning process usually starts several months before the plan is scheduled to go into operation.

• Coordination must occur inside the firm and with outside strategic partners.

• Marketing plans today must be flexible for new platforms and tends

• Vine, Instagram Video, etc

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Step 1: Research and Analyze the Current Situation

• The marketer performs both:

• External analysis, and

• Internal analysis.

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External Analysis

• Involves the understanding of:

• Political-legal changes

• Economic changes

• Social-cultural changes

• Technological changes

• Ecological changes

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Internal Analysis

• Marketers also assess the firm’s capabilities and the strategies of competitors in order to:

• Build on strengths, and

• Exploit competitors’ weaknesses.

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Step 2: Understand Markets and Customers

• Consumers or businesses

• Comprehensive understanding is desired:

• Buying habits and behaviors

• Who? What? Where? When? Why? How?

• Are buying patterns changing? Why?

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Step 3: Plan Segmentation, Targeting, and Positioning

• Purpose of Segmentation: To group customers with similar needs, wants, behavior, or attitudes.

• Targeting: The selection of specific segments for marketing.

• Positioning: A competitively distinctive place (position) in the mind of the targeted customers.

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Step 4: Plan Direction, Objectives, and Marketing Support

• Goals: Long-term performance targets.

• Objectives: Shorter-term targets that support the achievement of goals.

• Most businesses use their marketing plans to support growth strategies through different combinations of product innovation and market penetration.

• Sustainable Marketing: “The process of creating, communicating, and delivering value to customers in such a way that both natural and human capital are preserved or enhanced throughout.”

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Step 5: Develop Marketing Strategies and Programs

• Consistent with the firm’s overall direction, goals and strategies.

• Utilizing the tools of the “marketing mix,” enhanced by service.

• Includes the development of strategic alliances with suppliers, partners, and channel partners.

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Step 6: Plan Metrics and Implementation Control

• Metrics: Numerical measures of performance-related activities and outcomes.

• These include “KPIs”: Key Performance Indicators

• Indicators that are vital to effective performance in achieving the organization’s strategic goals and marketing plan objectives

• Financial Metrics:

• Return on marketing investment (ROMI)

• Return on sales

• Market share

• Cost per customer acquired

• Non-Financial Metrics:

• Brand performance

• Customer loyalty

• Marketing Control: measuring interim performance against metrics, diagnosing any performance issues, and making changes as needed.

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Primary Marketing Tools

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BMGT 411: Preparing for Week 2

• Written Assignment #1: Explore some recent articles around JC Penney. Can you find an article about their recent struggles with a part of the marketing mix? What could they have done differently?

• Post answer to pghmarketing.wordpress.com

• Kottler: Read Chapter 1 and 2

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