Marketingplan

Marketing Strategies/ Planning

Definition

David Aaker

Process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.

Effort to achieve the marketing objective or goal by pointing specific target market and making some marketing program.

Marketing Strategies/ Planning

Product

Price

Promotion

Place

Product

Something which can be offer to a market whether its satisfy as need or want, for attention, acquisition, use and consumption.

The product can be an object, services, experiences, person, places, organization and idea.

Price

Price is common issue in business. Some of the company or entrepreneur will facing with getting loss or profit from the initial asset.

Total cost = FC+VC(Q)

• FC=Fixed cost

• VC=Variable cost per unit

• Q=Quantity

Promotion

• Advertising – printed media, broadcast media, internet, outdoor advertisement

• Sales promotion – short term incentive given to the customers (discount, coupons, rebates, etc)

• Public relations and publicity – CSR activity

Place

•Direct to customer

•Selling through retailers

•Selling through wholesalers

•Selling through agent

• Is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards.

• Is the first element to a marketing strategy.

• A sales target is the number of products you need to sell to make a desired profit. Sales teams thrive on well-defined sales targets.

• Sales targets allow you and your sales staff to:

• set clear goals

• pursue incentives and bonuses that motivate and reward

• keep measuring, challenging and improving your sales performance.

• Reliable sales targets also help you track your sales progress within each period, and adjust your sales goals to meet your market and business needs. You can set targets by market segment, by region and for each member of your sales team.

• Your sales targets are a part of your sales plan, and are used to achieve the performance goals you set in your marketing plan.

Types

Product

Market SegmentRegion

Sales targets by product

• Setting specific goals for each product is a simple and effective way to meet your monthly sales budget.

• Product sales targets usually list the number of products you need to sell, as well as the targeted average sale price you need to get, to achieve a budgeted profit.

• Sales targets set by product also include other important business information, such as stock and storage requirements.

Example sales targets table

• Set out your sales goals by product or service, identifying the profit you need to make from each product sale and the volume of sales you anticipate.

Sales targets by market segment

• Customer researchers often choose to group market segments by:

• Geographic (based on location such as home addresses)

• Demographics (based on measurable statistics, such as income, age, gender, family size, income, occupation, education, socio-economic status, religion, nationality)

• Psychographics (based on lifestyle preferences, such as being urban dwellers or pet lovers, personality, lifestyle, values, attitudes)

• Behavioral segmentation (occasions, degree of loyalty)

• Using your marketing plan as a guide will help you to achieve your sales targets by pitching your products and services to these characteristics of your market segments.

Sales targets by region

• Businesses with area or travelling sales representatives most commonly set sales targets by region - removing the difficulty and frustration of setting and monitoring individual targets for large numbers of products.

• These businesses find it easier to set a dollar figure target per region, covering the whole product range and all the customers in that region.

• Regional targets are 'big picture' targets. Because they cover large customer numbers and don't specify product sales, you need to keep them simple -one figure per area.

Marketing Strategy

• Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. A marketing strategy is composed of several interrelated components called the marketing mix.

• An organization's strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a marketing plan.

Read more: http://www.businessdictionary.com/definition/marketing-strategy.html#ixzz2fddR8hZc

Why do you need a marketing strategy?

• An effective marketing strategy will help you to define the overall direction and goals for your marketing. Moreover, it will articulate how you are going to deliver your products and services in ways that will satisfy your customers (the golden rule of business).

What about the marketing plan?• If your marketing strategy represents where you are

going, then your marketing plan represents how you are going to get there. It details the specific actions required to achieve your marketing objectives.

Your marketing objectives

• Your marketing objectives are where you would like your marketing strategy to take you. Think of them as your marketing goals. In the past, they were articulated via general terms, such as:

• Increasing the average size of the sale per client (Market Penetration)

• Selling a new or improved product/service to existing clients (Product Development)

• The ‘SMART’ acronym (Specific, Measurable, Achievable, Realistic and Timely) . Examples:-

• To achieve a 20% return on capital employed by April 2014 (Profitability Objective)

• To gain 15% of the market for sports socks by November 2018 (Market Share Objective)

• To make X brand of juice the preferred brand of 21-29 year old females in Australia by August 2019 (Branding Objective).

Identify your target market

• Gathering information about your market is vital when creating your marketing strategy. Identifying the key characteristics of your target market will help you to find the most effective way to reach your target clients. Ask questions such as:

• What’s the size and growth potential of your market?

• What are the social trends?

• What are the key demographics? (Statistics such as age, gender, income level etc)

• Keep revisiting this process regularly to ensure that your strategy remains relevant and targeted.

Target Market

Current customers

Know your competitors

Profile potential

customers

7 Components Before Decide Marketing Mix

1.• Who & what application does the

product plan to serve?

2. • What is the payoff they are looking for?

3. • How ready are the customers to accept

what we plan to offer?

4.• What are the needs, which are

unfulfilled and which really matter?

5. • Who are you competing against ?

6. • What is our source of growth ?

7. • What is the product / story we offer ?

8.• How is it better than whom we are

competing with ?

7 Components Before Decide Marketing Mix (cont)

Elements of the marketing mix that comprise a cohesive marketing program

Pricing StrategiesCost based pricing

• the most popular method. Based on total cost of the product/service + a standard mark-up (%) according to margin in the industry

Value based pricing

• based on customer perception of the value.

Competition based pricing

• Most common method.

Distribution strategy

Direct to customer

Selling through retailers

Selling through wholesale

Selling through retailers or agent.

Promotion strategy

Advertising

• printed media, broadcast media, internet, outdoor advertisement

Sales promotion

• short term incentive given to the customers (discount, coupons, rebates, etc)

Public relations and publicity

• Corporate Social Responsibility (CSR) activity

Marketing BudgetELEMENTS

*Fixed assets expenses

*Monthly expenses

*Other expenses

Example of marketing budget

Setting the Marketing Budget

Affordability

• Set at a level that a company can afford

Percentage of Sales

• Past or forecasted sales may be used

Competitive Parity

• Budget matches competitors outlays

Setting the Promotional Budget and Mix

• OBJECTIVE AND TASK METHOD

• Has specific objectives

• Costs of performing tasks are estimated then summed to create the promotional budget

Total Promotional

Budget

• Determined by the nature of each promotional tool

• Selected promotion mix strategyOverall

Promotion Mix

Conclusion

• At the heart of any business strategy is a marketing strategy. Businesses exist to deliver products that satisfy customers.