The Marketing Plan is a highly detailed, heavily researched and, hopefully, well written report that many inside and possibly outside the organization will evaluate. It is an essential document for both large corporate marketing departments and for startup companies.  Essentially the Marketing Plan:

forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions.

forces the marketing personnel to look externally in order to fully understand the market in which they operate.

sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support.

is a key component in obtaining funding to pursue new initiatives.

The Marketing Plan is generally undertaken for one of the following reasons:

1. Needed as part of the yearly planning process within the marketing functional area. 2. Needed for a specialized strategy to introduce something new, such as new product planning, entering

new markets, or trying a new strategy to fix an existing problem. 3. Is a component within an overall business plan, such as a new business proposal to the financial

community.

There are many ways to develop and format a marketing plan. The approach taken here is to present a 6-Part plan that includes:

1. Part 1: Purpose and Mission 2. Part 2: Situational Analysis

o Product, Market Analysis o Distribution Analysis o Competitor Analysis o Financial Analysis o Other Analysis

3. Part 3: Marketing Strategy and Objectives o  Financial Objectiveso Marketing Objectives

4. Part 4: Tactical Programs o Marketso Producto Promotiono Distributiono Pricingo Others

5. Part 5: Budgets, Performance Analysis, Implementation o Budgeting and Analysiso Implementation

6. Part 6: Additional Considerations

This plan is aimed at individual products and product lines, however, it can be adapted fairly easily for use in planning one or more strategic business units (SBU). The page length suggested for each section represents a single-spaced typed format for a plan focused on a single product. Obviously for multi-product plans lengths will be somewhat longer.

Note, throughout the plan the word "product" is used. However, the information presented in the Marketing Plan tutorials applies to products and services. 

It is assumed that anyone developing a Marketing Plan possesses a working understanding of marketing principles. 

Finally, this tutorial is continually being revised so you may want to check back on a regular basis for any updates.

Part 1: Purpose and Mission

Part 1 of the plan is designed to provide the reader with the necessary information to fully understand the purpose of the marketing plan. This part also includes organizational background information, which may be particularly important if the audience for the plan is not familiar with the company, such as potential financial backers. Some of the information, in particular the mission statement, may require the input of upper-management. The information in this part will prove useful later in the plan as a point of reference for material that will be introduced (e.g., may help explain pricing decisions). In cases in which there are separately operated divisions or SBU, there may also be mission statements for each. (Length: one page or less)

1. Purpose of the Marketing Plan

Offer brief explanation for why this plan was produced o e.g., introduce new product, enter new markets, continue growth of existing product, yearly

review and planning document, etc. Suggest what may be done with the information contained in the plan

o e.g., set targets to be achieved in the next year, represents a departmental report to be included in larger business or strategic plan, etc.

2. Mission StatementThe mission statement consists of a short, finely-honed paragraph that considers the following issues:

Identifies a stable (i.e., not dramatically changing every year), long-run vision of the organization that can answer such questions as:

o Why is the company in business? o What markets do we serve and why do we serve these markets? o In general terms, what are the main benefits we offer our customers?

e.g., a low price software provider may state they offer “practical and highly affordable business solutions”

o What does this company want to be known for?  o What is the company out to prove to the industry, customers, partners, employees, etc.? o What is the general corporate philosophy for doing business? o What products/services does the company offer?

In developing the vision presented in the mission statement consider: o Company History

How company started and major events of the company, products, markets served, etc. o Resources and Competencies

Consider what the company currently possesses by answering the following: What are we good at? What is special about us compared to current and future competitors (in general

terms do not need to mention names)? What do we do that gives us a competitive advantage?

Consider the questions above in term of: people, products, financial position, technical and research capabilities,

partnership/supply chain relations, others o Environment

Consider the conditions in which company operates including: physical (e.g., facilities), equipment, political regulatory, competitive, economic,

technological, others

Part 2: Situational Analysis

The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented. This part of the Marketing Plan is extremely important and quite time consuming. For many, finding the numbers may be difficult, especially for those entering new markets. 

The situational analysis covers six key areas: product, target market, distribution, competitors, financial and other issues.

1. Current Product Analysis Provide detailed analysis of the company’s product(s). (Length: 1-2 pages).

Describe the company’s current product(s) offerings in terms of:  o Product Attributes

Describe the main product features, major benefits received by those using the product, current branding strategies, etc.

o Pricing Describe pricing used at all distribution levels such as pricing to final users and to

distributors, incentives offered, discounts, etc. o Distribution

Describe how the product is made accessible to final users including channels used, major benefits received by distributors, how product is shipped, process for handling orders, etc.

o Promotion Describe promotional programs and strategies in terms of advertising, sales promotion,

personal selling and public relations, how product is currently positioned in the market, etc.

o Services Offered Describe support services provided to final users and distributors before, during and after

the sale

2. Describe the Current Target Market(s) Examine in detail the company’s current target market(s). Obviously to do this section correctly takes a great deal of customer-focused research. (Length: 2-3 pages).

Describe the target market approach: o What general strategy is used to reach targeted customers? Generally approaches include:

mass market – aim to sell to a large broad market segmentation approach – aim to selectively target one (niche) or more markets

Describe demographic/psychographic profile of the market: o Profile criteria may include:

gender, income, age, occupation, education, family life cycle, geographic region, lifestyle, attitudes, purchasing characteristics, etc.

Describe the following characteristics of targeted customers: o Needs/benefits sought by market

o Product usage Consider answers to these questions related to customers using the product such as:

who is using the product? why do they use the product? when do they use the product? how is the product used?

o Product positioning Evaluate how customers perceive the product in relation to competitor’s products or to

other solutions they use to solve their problems o Attitudes

What is the target market’s attitude regarding the company’s product? What is the target market’s attitude regarding the general product category?

i.e., exam the general attitude regarding how products from all companies serve the target market’s needs

Describe the purchasing process: o How does the target market make their purchase?

What does the decision-making process involve? What sources of information are sought? What is a timeline for a purchase (e.g., impulse vs. extended decision-making)?

o Who makes the purchase? Does user purchase or is other party responsible (e.g., parent purchasing for children)?

o Who or what may influence the purchase? Provide market size estimates:

o Keep in mind these are estimates for the market not for a specific product Provide size estimates for the potential market

What is the largest possible market if all buy? Provide estimates of size for the current target market

What percent of the potential market actually purchased? Provide estimates of future growth rates

At least through the timeframe for the plan (e.g., 1 year) but most likely longer (e.g., 3-5 year projections)

3. Describe Current Distributor Network (if appropriate) Evaluate how the company’s product(s) is distributed. Clearly marketing plans for a service company may not have much detail here but this section will most likely have some relevance even for service firms (e.g., package delivery services, online legal service, etc,). (Length: 2 pages).

Describe the channels/supply chain employed to sell and deliver the product: (Note: internal sales force discussion should appear under company promotion in Current Product Analysis above.)

o Options may include: direct to customer indirect via a distributor combination of both

What are the needs/benefits sought by distributors? Describe the product’s role within the distributor network:

o How is this product used within the distributor’s business? o How important is product within the distributor’s strategy? o How is product positioned?

e.g., how does distributor view product in relation to competition o Attitudes and perceptions about company's product(s)

Purchase process

o How does distributor network make their purchase? o Who or what influence distributor’s purchases?

Demographics o Who makes up the distributor network?

types size geographic region markets served

4. Competitive Analysis Examine the main competitors serving the same target market. This section may also benefit from the use of comparison tables. (Length: 3-4 pages).

Describe direct competitors in terms of: o Target markets served o Product attributes o Pricing o Promotion o Distribution including the distributor network o Services offered

Discuss competitor’s strengths and weaknesses: o May need to consider much more than just marketing issues such as:

financial standing target market perception R & D capabilities

Discuss competitive trends:o May need to include discussion of future competitive threats

5. Financial Analysis for Product or Product Line Much of this information can be handled within a graphical format, such as tables and graphs, though a paragraph explanation of each is generally required. Make sure to include total dollar (or other currency) amounts as well as percentage market share. For more detailed marketing plans or for plans for seasonal products, providing monthly or even weekly sales figures may be required. Provide a spreadsheet-style layout showing detailed breakdown of marketing revenues and expenses. (Length: 2-4 pages).

Current Sales Analysis o Overall industry sales and market share (for at least the last year)

total market sales total for company’s product(s) total for competition

o By segments/product categories total for segments/product categories total for company’s product(s) total for competition

o By Channels of Distribution total for each channel total for company’s product(s) by channel total for competition by channel

o By Geographic Region total for each region total for company’s product(s) by region total for competition by region

Profitability Analysis o Revenues

For highly detailed plans break out into categories as shown above in the Current Sales Analysis section.

o Marketing Expenses Types:

Direct – those expenses that can be tied to the product Indirect or Proportional – generally administrative or broad marketing expenses

that may be assigned to a product based on some established criteria (e.g., a product’s percentage of overall company sales) Note: not all companies follow this approach

For highly detailed plans break out into categories as shown above in the Current Sales Analysis section.

6. Environmental Problems and Opportunities Describe trends, events, conditions that are external (usually uncontrolled by the company) that may impact the company’s product(s) or the market. (Length: 1-2 pages)

Areas of consideration: o social and cultural o demographic o economic o technological o political o legal, regulatory, ethical

7. Product/Market Analysis Tools In an effort to provide an easy to visualize summary of the product(s) consider using one or more of the following commonly used product/market analysis tools.  (Length: 1 page)

Product Life Cycle Analysis

Product Life Cycle

(Industry Life Cycle)

Analyzing Industry Maturity Stages

Product Life Cycle 

Fox, Wasson, Hofer, Anderson & Zeithaml, Hill &

JonesThe Product Life Cycle model can help analyzing Product and Industry Maturity Stages.

Any Business is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Cash Flow allows a company to maintain viability, invest in new product development and improve its workforce; all in an effort to acquire additional market share and become a leader in its respective industry.

A consistent and sustainable cash flow (revenue) stream from product sales is key to any long-term investment, and the best way to attain a stable revenue stream is a Cash

Cow product, leading products that command a large market share in mature markets.  Also, product life cycles are becoming shorter and shorter and many products in mature industries are revitalized by product differentiation and market segmentation. Organizations increasingly reassess product life cycle costs and revenues as the time available to sell a product and recover the investment in it shrinks.

Even as product life cycles shrink, the operating life of many products is lengthening. For example, the operating life of some durable goods, such as automobiles and appliances, has increased substantially. This leads the companies that produce these products to take their market life and service life into account when planning. Increasingly, companies are attempting to optimize life cycle revenue and profits through the consideration of product warranties, spare parts, and the ability to upgrade existing products.

It's clear the concept of life cycle stages has a significant impact upon business strategy and performance. The Product Life Cycle method identifies the distinct stages affecting sales of a product, from the product's inception until its retirement.  In the Introduction stage, the product is introduced to the market through a focused and intense marketing effort designed to establish a clear identity and promote maximum awareness. Many trial or impulse purchases will occur at this stage. Next, consumer interest will bring about the Growth stage, distinguished by increasing sales and the emergence of competitors. The Growth stage is also characterized by sustaining marketing activities on the vendor's side, with customers engaged in repeat purchase behavior patterns. Arrival of the product's Maturity stage is evident when competitors begin to leave the market, sales velocity is dramatically reduced, and sales volume reaches a steady state. At this point in time, mostly loyal customers purchase the product. Continuous decline in sales signals entry into the Decline stage. The lingering effects of competition, unfavorable economic conditions, new fashion trends, etc, often explain the decline in sales. Several variations of the industry life cycle model have been developed to address the development of the product, market, and/ or industry. Although the models are similar, they differ as to the number and names of the stages. Here are some major ones: 1973: Fox: precommercialization - introduction - growth - maturity - decline.1974: Wasson: market development - rapid growth - competitive turbulence - saturation/maturity – decline1984: Anderson & Zeithaml: introduction - growth - maturity - decline1998: Hill and Jones: embryonic - growth - shakeout - maturity - decline

Boston Consulting Group Growth/Share Matrix

The BCG matrix product portfolio method

The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business  unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or

the faster the product's market grows the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share)- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.- frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept.2. Cash Cows (=low growth, high market share)- profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high- Foundation of a company3. Dogs (=low growth, low market share)- avoid and minimize the number of dogs in a company.- beware of expensive ‘turn around plans’.- deliver cash, otherwise liquidate4. Question Marks (= high growth, low market share)- have the worst cash characteristics of all, because high demands and low returns due to low market share- if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog.- either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash The BCG Matrix method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy, such as a generic growth target (9 percent per year) or a generic return on capital of say 9,5% for an entire corporation.

In such a scenario:A. Cash Cows Business Units will beat their profit target easily; their management have an easy job and are often praised anyhow. Even worse, they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore. B. Dogs Business Units fight an impossible battle and, even worse, investments are made now and then in hopeless attempts to 'turn the business around'. C. As a result (all) Question Marks and Stars Business Units get mediocre size investment funds. In this way they are unable to ever become cash cows. These inadequate invested sums of money are a waste of money. Either these SBUs should receive enough investment funds to enable them to achieve a real market dominance and become a cash cow (or star), or otherwise companies are advised to disinvest and try to get whatever possible cash out of the question marks that were not selected. Some limitations of the Boston Consulting Group Matrix include:High market share is not the only success factorMarket growth is not the only indicator for attractiveness of a marketSometimes Dogs can earn even more cash as Cash CowsBook: Carl W. Stern, George Stalk - Perspectives on Strategy from The Boston Consulting Group

General Electric Market Attractiveness Matrix

The GE matrix / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.  A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets. A Strategic Business Unit (SBU) can

either be an entire mid-size company or a division of a large corporation, that formulates its own business level strategy and has separate objectives from the parent company. The aim of a portfolio analysis is: 1) Analyze its current business portfolio and decide which SBU's should receive more or less investment, and2) Develop growth strategies for adding new products and businesses to the portfolio3) Decide which businesses or products should no longer be retained.

The BCG Matrix (Boston Consulting Group Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG Matrix.  The McKinsey matrix / General Electric Matrix

The GE / McKinsey Matrix is more sophisticated than the BCG Matrix in three aspects: 1. Market (Industry) attractiveness replaces market growth as the dimension of industry attractiveness. Market Attractiveness includes a broader range of factors other than just the market growth rate that can determine the attractiveness of an industry / market. Compare also: Porter's Five Competitive Forces model2. Competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed. Competitive strength likewise includes a broader range of factors other than just the market share that can determine the competitive strength of a Strategic Business Unit.3. Finally the GE / McKinsey Matrix works with a 3*3 grid, while the BCG Matrix has only 2*2. This also allows for more sophistication.  Typical (external) factors that affect Market Attractiveness:

- Market size- Market growth rate

Typical (internal) factors that affect Competitive Strength of a Strategic Business Unit:

- Strength of assets and competencies- Relative brand strength (marketing)

- Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry- Entry barriers - Opportunity to differentiate products and services- Demand variability- Segmentation - Distribution structure- Technology development 

- Market share- Market share growth- Customer loyalty- Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors)- Distribution strength and production capacity- Record of technological or other innovation- Quality- Access to financial and other investment resources- Management strength 

Often, Strategic Business Units are portrayed as a circle plotted in the GE McKinsey Matrix, whereby:- The size of the circles represent the Market Size- The size of the pies represent the Market Share of the SBU's- Arrows represent the direction and the movement of the SBU's in the future A six-step approach to implementation of portfolio analysis (using the GE / McKinsey Matrix) could look like this:

1. Specify drivers of each dimension. The corporation must carefully determine those factors that are important to its overall strategy2. Weight drivers. The corporation must assign relative importance weights to the drivers 3. Score SBU's each driver4. Multiply weights times scores for each SBU5. View resulting graph and interpret it 6. Perform a review/sensitivity analysis using adjusted other weights (there may be no consensus) and scores.  Some important limitations of the GE matrix / McKinsey Matrix are:- Valuation of the realization of the various factors- Aggregation of the indicators is difficult- Core competencies are not represented- Interactions between Strategic Business Units are not considered

8. Summary of Current Situation Summarize all information in the Situational Analysis. (Length: 1 page)

Provide a SWOT analysis for the company’s product(s) that includes:  o strengths o weaknesses o opportunities o threats

Part 3: Marketing Strategy and Objectives

Those reading a marketing plan need a clear picture of the direction the product will take.  Also, they want to see that some accountability has been built into the plan so that the plan is not just fluff but results in measurable actions.  The best way to provide this information is through a section devoted to identifying the key strategies and objectives for the product(s).  

This section consists of three major issues:

Marketing Strategy Financial Objectives Marketing Objectives

 1. Marketing Strategy In this section identify the general marketing strategy under which this plan is being developed.  It is very possible that a product will follow more than one strategy (e.g., sell more of same product to current customers but also find new customers in new markets).  Plan developers may get some guidance and also rationale for strategy by examining results from the Situational Analysis.  In particular, planners may look to strategies that are suggested within the scope of Product/Market Analysis Tools.  Additionally, planners should refer to the Mission Statement in Step 1 to insure strategies are in line with how the company views itself. (Page length: less than 1 page). Strategies generally fall under one of the following (or in some cases more than one) ideas:

Market growth  (see ansoff matrix) o Higher market penetration 

Sell more to same market (i.e., get current customers to buy more or buy more frequently)

If overall market is growing this may not necessarily mean a growth in overall market share

If overall market is not growing this means a growth in overall market shareo Find new markets

Sell to markets or market segments not previously targetedo Develop new products for existing customers o Develop new products for new customers

Market stability o Techniques to keep the status quo

Primarily used in times of economic decline or market decline Generally requires the taking of market share from others in the industry

Cost control o Techniques to contain costs or operate more effectively

Can work in combination with market growth or market stability Market exit

1. Techniques to depart a market

ansoff's product / market matrixThe Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below:

Market penetrationMarket penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.Market penetration seeks to achieve four main objectives:

• Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling

• Secure dominance of growth markets• Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors• Increase usage by existing customers – for example by introducing loyalty schemes

A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.

Market developmentMarket development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including:

• New geographical markets; for example exporting the product to a new country• New product dimensions or packaging: for example • New distribution channels• Different pricing policies to attract different customers or create new market segments

Product developmentProduct development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.

DiversificationDiversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

2. Financial ObjectivesFor many organizations the ultimate goal of the marketing plan is the effect it will have on the bottom line.  Measures reflect income statement items and common ratios. (Page length: less than 1 page)

Customer saleso by volume and growth percentageo by segments

Channel saleso by volume and growth percentageo by channel

Margins Profitability Ratios

o use common financial ratios and other metrics associated with marketing in the industry

3. Marketing ObjectivesMarketing success can be measured on several non-financial market metrics.  These measure are important since these often shed light on underlying conditions and circumstances facing the company that are not easily seen within financial measures.  For instance, a company may report strong sales for a product but market share information may suggest the product is losing ground to competitors.  The marketing objectives section will indicate targets to be achieved across several marketing decision areas.  To add additional strength to this section include marketing metrics where possible. (Page length: less than 1 page)

Target market objectives o market share

total by segments by channel

o customers total number/percentage new number/percentage retained

o purchases rate of purchases size/volume of purchases

Promotional objectives o level of brand/company awareness o traffic building 

(e.g., store traffic, website traffic) o product trials

(e.g. sales promotions, product demonstrations)o sales force

(e.g. cycle time, cost per call, closing rate, customer visits, etc.) Channel objectives

o dealers total number/percentage new number/percentage retained

o order processing and delivery on-time rate

shrinkage rate correct order rate

Market research objectives o studies initiated o studies completed

R&D objectives o product development

Other objectives o partnerships developed

Part 4: Tactical Marketing Programs

This is the heart of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the objectives and goals established in Step 3. It is typically the longest section of the plan, often representing 50% or more of total page count.

In this section details and timetables are presented for six key decision areas:

Target Markets Product Promotion Pricing Distribution Other Areas

Preferably this section includes a brief summary of current marketing decisions (see Situational Analysis) so readers of the plan can easily compare what was planned to what is planned.

1. Target Market Issues If the target market remains the same as what was identified in the Situational Analysis then identifying the market will be relatively easy though justification for continuing with this market is required. For new markets a more detailed discussion is needed. This section also includes the sales forecast which is the driving force for all financial forecasts. Depending on the depth of detail sought in the marketing plan, it may be a good idea to include likelihood scenarios, such as best case, worst case, and probable case, when developing the sales forecast. (Length: 1-2 pages)

Target market description: o Brief summary of current target market o Identify planned changes:

Summarize changes: Describe using profile (e.g., demographic, psychographic, behavioral, etc. ) Describe how it will be accomplished

Justify planned changes: Due to results Due to research Due to competition Others

Describe target market tactics: Objectives Methods used change target market Profile the target marketing

Product positioning:

o Brief summary of product postition How does target market view product in relation to competitor’s products?

o Identify planned changes: Summarize changes in product positioning Justify planned changes:

Due to results Due to research Due to competition Others 

o Describe tactics to carryout changes Objectives

e.g. what is desired position? Methods used to change position

Sales forecast for each product: o Brief summary of current sales o Identify changes

Summarize changes in forecast Justify forecast (i.e., figures determined based on what information?)

o Describe forecast Objectives Methods used to carry out Numerical estimates

Categories: Total By segment(s) By distribution channel Others

consider likelihood scenario analysis

2. Product Issues In this section discuss the decisions to be made for existing or new products and services. Make sure to consider all aspects of product decisions (branding, labeling, packaging) and not just the product itself. Also, keep in mind product decisions can also impact distributors (e.g., distributor’s response to packaging used to ship the product). (Length: 1-3 pages)

o Brief summary of current product decisions for users and distributors in terms of: General description

e.g., category of product, product line information Features/attributes offered

list key features main benefits target market receives

Branding Packaging Labeling

o Identify planned changes: Summarize changes

For new products How was product developed? Stage in development process

Timetable for availability Justify changes:

Due to results

Due to research Due to competition Others

o Describe planned changes: Identify changes directed to the targeted user market:

Objectives: e.g., modify existing products, extend existing product line, develop new

products, develop new uses/benefits for existing products, delete current product, etc. 

Features/attributes offered Branding Packaging Labeling

Identify changes to the distributor network: Objectives:

e.g., improve distribution, improve protection, lower cost of handling, gain distribution, etc.

Features/attributes offered Branding Packaging Labeling

3. Promotion Issues Describe the decisions related to how the product will be promoted. In general, promotion consists of four major areas – advertising, sales promotion, public relations and personal selling – though not all may be used. Timetables for promotion are important since certain types of promotions (e.g., magazine ads, trade shows) require long lead times. Most information in this section can be shown in tables and graphs. Each of the four promotion areas is separated out, however, some planners find it easier to combine the areas. For instance, the promotional areas could be combined within special promotion programs, such as Holiday Promotion Program, Summer Promotion Program, etc. (Length: 1-4 pages)

Brief summary of current promotional decisions for users and distributors in terms of: o General description for four promotional areas:

advertising sales promotion personal selling public relations 

o Message/theme o Methods used:

Summarize methods used Summarize spending for each method

o Interrelation of four promotional areas e.g., explain how advertising supports sales promotion

Identify planned changes: o Summarize changes o Justify changes:

Due to results Due to research Due to competition Others

Describe planned changes: o Identify changes directed to the targeted user market:

General description for four promotional areas: Objectives

Advertising - e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), response to competitor promotion, increase use or purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.

Sales promotion - e.g., build inquires, increase product trial, encourage repurchase, build traffic, support other promotions

Personal selling - e.g., new account development, account support/maintenance, increase product trial, encourage purchase/repurchase, build traffic, support other promotions

Public relations - e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)

Methods and message: type and media used: e.g., ad type (e.g., television spots, Internet banner ads,

roadside billboards, direct mail, etc.) , sales promotion type (e.g., coupons, demonstrations, etc.), selling type (e.g., sales force, call center), pr type (e.g., press release, pitch to magazines, etc.)

message conveyed Spending and timetables

total sub-divided by:

type e.g., ad spending, sales force compensation

media used targeted users

o Identify planned changes directed to the distributor network: General description Objectives

Advertising - e.g., build general awareness/inquiries, encourage product handling, shift awareness (e.g., change attitude), response to competitor promotion, increase purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.

Sales promotion - e.g.,  build inquires, encouraging inventory building, support other promotions, encourage handling of new products, obtain distributor assistance

Personal Selling - e.g., new account development, account support/maintenance, encourage purchase/repurchase/inventory building

Public Relations - e.g., build general awareness/inquiries/traffic, encourage distribution trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)

Methods and message type and media message conveyed

Spending and timetables total sub-divided by:

type media used

targeted distributor network

4. Distribution Issues This marketing tactics section lays out the distribution plan for the product or service. Distribution is a broad concept that includes all activities and entities (e.g., value chain partners) responsible for getting the product or service to the customer. Distribution costs can represent a high portion of the overall cost of the product so an efficient distribution system may be critical for marketing success. (Length: 1-3 pages)

Brief summary of current distribution network/value chain decisions: o Types of channels used

direct - e.g., direct via sales force, Internet, etc. indirect - e.g., retailers, wholesalers, agents combination

o Level of market coverage intensive - e.g., mass availability selective - e.g., wide availability exclusive - e.g., restricted availability

o Outlets handling product types number/level of penetration geographic location

o Perceived product positioning in relation to competitors

o Distribution costs Identify planned changes:

o Summarize changes o Justify changes:

Due to results Due to research Due to competition Others

Describe planned changes: o Objectives

e.g., account development, gain distributor support, account maintenance, account penetration

o Types of channels employed o Level of market coverage o Outlets handling product o Product positioning o Distribution costs

5. Pricing Issues Pricing decisions can be a complicated undertaking that requires knowledge of the market, competitors, economic conditions and, of course, customers. For this section it is not necessary to provide extensive financial evaluation of the pricing decision since most of this will take place in Part 5 Budgeting and Implementation, however, the use of tables and graphs may be helpful in showing pricing trends and pricing decisions within various categories. (Length: 1-2 pages)

Brief summary of current pricing decisions: o Describe pricing decisions by:

model/product segment channel

geography other

o Adjustments and Allowances Discounting Payment terms

Identify planned changes o Summarize changes o Justify changes:

Due to results Due to research Due to competition Other

Describe planned changes: o Objectives

e.g., return on investment, market share, profit level, price leadership, match competition, etc. 

o Factors affecting price setting Cost factors

Fixed costs to be covered Variable costs

Customer expectations Company expectations

 e.g., margins, ROI Demand Considerations

market elasticity position on product life cycle

Competition Economic conditions Legal/regulatory considerations

o Pricing Options list, preferred or suggest pricing adjustments and allowances sub-divided by:

product/model customer channel other

6. Other Areas (optional) In this section include a discussion of other marketing decision areas. Two additional areas – customer support service and marketing research – are provided though it is possible others exist. (Length: 1 page or less)

Customer Support Services o Brief summary of current customer support services decisions:

types offered: e.g. call center, online, service desk, walk-up, on-site

customers being serviced: e.g., current customers, potential customers, distributor network

service delivery method: e.g., internally managed, contracted, partnership arrangement

o Identify planned changes

Summarize changes Justify changes:

Due to results Due to research Due to competition Other

o Describe planned changes Objectives

e.g., availability, response time, satisfaction level Types offered Customers being serviced Service delivery method Spending and timetables 

Market Research o Brief summary of current market research efforts

Projects e.g., completed, in process, under consideration

Research responsibility e.g., internally managed, contracted, partnership arrangement

Identify planned changes Summarize changes Justify changes:

Due to results Due to research Due to competition Other

Describe planned changes Objectives

e.g., customer analysis, market analysis, competitor analysis, exploratory Projects Service responsibility Spending and timetables

Part 5: Budgeting, Performance Analysis and Implementation

In many ways this part of the marketing plan is the area that will ultimately “sell” the plan to those who have the power to give final approval. This step consists of three key topics:

Marketing Budget  -  presents a clear picture of the financial implications of the plan Performance Analysis - presents the expected results of the plan including its financial impact Implementation Schedule  - shows timelines and identify those responsible for performing tasks

1. The Marketing BudgetThis section should lay out spending requirements necessary for meeting the plan’s objectives. It is expected that several tables and graphs will be presented along with narratives explaining important budget issues. (Length: 2-3 pages)

Outline spending requirements for each tactical marketing decision o Breakdown each tactical category

e.g., types of advertising, types of services offered, marketing research expense, etc.

o Show detailed spending timetable by: Month Year

o Show spending by: Product (if plan is for more than one) Segment/Geographic area Distribution Network/Channel

2. Performance Analysis This section should contain financial implications of the plan in terms of contributions to the company’s bottom line. HOWEVER, as was stated in the beginning of the Marketing Plan tutorial, the marketing plan is generally a component of a larger business plan. We do not cover a full financial discussion such as a full balance sheet, income statement, detailed ratio analysis, etc., though these could be included if necessary. Again, numerous tables and graphs should be presented. (Length: 2-3 pages)

Marketing Contribution o Show revenue versus expenses for marketing decisions

Revenue should follow sales forecasts (see Part 4) Show expenses by category (e.g., advertising) and sub-category (e.g., types of

advertising) o Breakdown by:

Product Segment/Geographic area Distribution Network/Channel

Breakeven Analysis: o Primarily for plans that involve the sale of tangible products, the breakeven analysis indicates the

level of sales (generally described in terms of number of units sold) required before the company realizes positive marketing contribution.

o Requires understanding of: Fixed costs – cost that occur no matter level of sales Variable costs – cost that may change as level of sales varies

o Present as both graph and chart Show breakeven point over level of sales volume

From zero through best scenario sales level Show breakeven over time

Ratio Analysis o Limit to important marketing ratios that are common to the industry

e.g., sales cycle, advertising-to-sales, conversions from trial to purchase, website traffic-to-search engine marketing, etc.

3. ImplementationProvide a discussion of how and by whom the plan will be carried out. (Length: 1-2 pages)

Detailed schedule of tasks and those responsible: o Breakdown by important tactical marketing decisions

Best presented in a Gantt chart format. o Identify those responsible for each important task:

If unsure leave generic e.g., advertising agency, web hosting company, distributors, etc.

Part 6: Additional Considerations

The final major section in the Marketing Plan prepares the reader for potential situations that may affect the plan. In this way the reader is provided with a somewhat more balanced picture of what the company may face as it attempts to implement the plan. (Length: 2-3 pages)

1. Internal Factors

Discuss company factors that may affect the plan o e.g., loss of funding sources, loss of key personnel, current plan is linked to success to other

products that may not reach their goals, production problems, etc.

2. External Factors

Discuss outside factors that may affect the plan o e.g., supply chain problems, competitor reaction, technological developments, legal environment,

societal changes, economic issues, governmental concerns, etc.

3. Research Limitations

Discuss problems that may exist with the research information on which assumptions are being made o e.g., difficult to find solid data on a certain subject