Presentation

Elements of the marketing plan

● As an action plan, this document details the company’s marketing actions.
○ Marketing objectives
○ Marketing budget
○ Segmentation and the target market
○ Market research
○ Marketing strategies
○ Control tools
The marketing budget
● Objective based: an estimate of how much will be needed to achieve the objective.
● *Historical*
○ Sales based: a fixed percentage of the firm's sales revenue is allocated to
marketing.
○ Incremental based: last year's marketing budget is used as a guide, with a
percentage increase to cover inflation.
Examples
● Objective based: To become brand leaders with product x, we will allocate 500k
● Sales based: 20% of sales revenue is allocated for next fiscal year's Marketing Budget
● Incremental based: Y1 budget: 100k inflation: 8%
Y2 budget: 108k inflation: 3%
Y3 budget: 111.2k
What can it cover?
● Paid campaigns: PPC, banner, or social media ads.
● Events: Conferences, trade shows, or in-store events.
● Freelancers and agencies: Content, design, PR, and SEO support.
● Research: Surveys, focus groups, and other market research.
● Tools: Software and infrastructure (e.g., your website).
Segmentation and target market
● Market segmentation allows a company to analyze the most profitable market segments
to target.
 ● Different products are targeted at different segments. This is a form of niche marketing.
Example

Market research
● Gathering information about consumers' needs, tastes, habits and preferences to aid
marketing decisions.
Marketing strategies
● Long term plans established for achieving marketing objectives.
● The marketing mix outlines the elements that help the firm achieve its marketing
objective.
● Detailed marketing plans give focus and direction but should be flexible
Definitions
Control tools
● Tools that allow to assess the effectiveness of the Marketing Strategies by gathering
qualitative & quantitative information
○ sales figures
○ customer retention figures
○ customer perception surveys and focus groups
○ market analysis reports
The marketing cycle

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Marketing Mix

Product Price

Package Retail Price

- First impression - The price depends on a place
Design Bonuses
- Package, form and texture - Giving bonuses for inviting people to
Variety your service/product, cashback
- Different varieties of same product Credit Terms
Quality - Time, months without interest
- Not necessary the best Payment Plans
Brand - Acquire different plans from the same
- Brand on itself is a product organization.
- Align product with brand Discount
Competition
Production Costs
- Make sure they are covered with the
price
Demand
- If your product is not selling, maybe is
too expensive, include R&D
Time
- Depending on the era the price might
vary, early stages and seasons
Objectives

Place Promotion

Retail Locations Sponsorship

Delivery Advertising
Distribution - Paid
Logistics Publicity
Downloads - Free
- Digital content (experience) Brochures
- Physical promotion
Personal Selling
Sales Calls
Sales Promotion
- Winter/Summer sales, Direct
marketing, community interaction
Customer Emails
- Answering a customer email/call
Direct Marketing
PR
Market segmentation
● Breaking the market into groups based on their specific needs.
● A company finds out those needs, they don’t create them.
● Geographic segmentation: dividing consumers according to their location
○ Continent
○ Global Region
○ Country
○ National Region
○ State
○ Urban/Rural
○ Post Code
○ Climate
○ ACCORN (A classification of residential neighborhoods)
● Demographic segmentation: dividing consumers according to characteristics such as age,
gender and occupation.
○ Age
○ Gender
○ Race
○ Occupation
○ Family life cycle
○ Socio-economic group
● Psychographic segmentation: divides the population according to lifestyle and personal
interests.
○ Technology Adoption Life Cycle
○ Personality
○ Values
○ Attitude
○ Interests
○ Lifestyles

Accorn
Family Life Cycle

Socio-economic group
Technology adoption life cycle

Advantages revenue and profits.

● Specific design and production of Disadvantages
goods and services → increase sales. ● R&D costs increase.

● Identify gaps in the market. ● Promotional costs increase.

● Differentiated marketing strategies ● Marketing economies of scale may

can be focused on target market not be fully exploited.

groups. ● Production costs increase + stock

● Small firms → specialize in one or holding.

● Excessive specialization can increase
two market segments.
the risk for the company.
● Price discrimination → increase

Selecting a target market

● Target market is the specific group of customers at which a firm aims its product(s).
● Understand your consumer profile and your consumers' perception of existing brands.
○ The level of competition
○ The marketing budget
○ The marketing objective
 ○ The current brand image
The level of competition
● To have a chance of survival, new entrants need to avoid direct competition with
established rivals (loyal customers).
The marketing budget
● Depending on the size of the company and the market ( niche vs mass) the company can
adopt:
○ Below the Line (niche markets)
○ Above the Line (mass markets)
Definitions
● Below the line: The promotional techniques that tend to reach customers more directly
and that are more within the organization's control. These tend to be one-to-one
marketing activities, with the use of pamphlets and samples, for example.
● Above the line: Above-the-line promotional activities are those aiming to reach large
audiences, and will feature on television, in magazines, on the internet and on radio.
The marketing objective
● Divided in two:
○ For-profit organizations' marketing objectives.
○ Not-for-profit organizations' marketing objectives.
The current brand image
● A company may spot a gap in the market, but may be unable to exploit it because of its
current brand image.
Definitions
● Niche market: a small specific subsection of a larger market, focused on providing a
particular product or service or satisfying the needs and wants of a small market segment.
● Mass market:
○ Mass-market products are undifferentiated.
○ The same marketing mix is used to target all consumers.
○ Target markets are likely to be large and may even include an entire population.
Positioning
● Positioning: The place that a brand occupies
in the minds of the customers and how it is
distinguished from the products of the
competitors and different from the concept of
brand awareness.
● Understand your consumer profile and your
consumers' perception of existing brands.
Positioning Maps
● Visual representations of various competitors
positioning attempts.
● Usually these display two attributes.
● Common axes include price, quality, product
range or average store size.
● Strategic groups are companies that are very
similar and target the same consumers.
Why are Positioning Maps useful?
● Used to identify potential new opportunities.
● Used to identify main rivals.
Product differentiation and unique selling points
● A unique selling point (USP) is a feature of a product that makes the product stand out
from its competition.
○ Differentiation by product USPs .
○ Differentiation by promotion USPs
○ Differentiation by price USPs
○ Differentiation by place USPs