How to Design a

Marketing Plan

‫الزتونة‬
Dr. Mohamed Fathy

Mfis_9999@yahoo.com
 Monitoring programs,
How To Design A Professional Marketing Plan Budgeting Follow up &
Product Contingency Plans
Price Implementation
Place
Promotion
Segmentation Sales force team
Targeting
Positioning Tactics
Differentiation

Forecasting Techniques

Strategy
Marketing Research

SWOT | PEST Analysis

Objectives’
Determination

Situation Analysis
Executive
Summary

Company Vision
Marketing Plan

• Company Vision & Mission

• Market Research
• Situation Analysis
• Objectives
• Strategy
• Tactics
• Budgeting
• Implementation
• Control & Evaluation
Executive Summary (Brief)
 Executive Summary (Brief) Part 3

 Company Vision & Mission

 Main Product Description
 Current Situation (Drivers, Inhibitors, Risks, Opportunities & Key Issues)
 Objectives, Forecasting (Expected Marketing & Financial Results), Profits
 Strategy
 Competitive attack plan
 Major Marketing Programs – Communication | Promotional Compaign
 Sales force
 Budget
 Distribution
 Implementation & Responsibilities
Situation Analysis
Situation Analysis
PEST - SWOT
 Situational Analysis

External Internal
Macroenviroment Key Success
Microenvironment (Segment analysis) Trends Resources SWOT Performance
(PEST) model Factors
Market area
Political
segments
Customers Competitors industry Assets Capabilities Strengths Sales

Hard Soft core

Economic Size & growth Characteristics Capabilities enviroment Weaknesses market share
(Tangible) (Intangible) competences
Sustainable
Market
Regulatory Needs Behavior customers Land Patents competitive Opportunities Cost
potential advantage
Capabilities
Technological Life cycle stage Unmet needs Objectives Facilities Trademarks Threats Profitability
from alliances

Social Seasonality Values Strategies Financial Human Contribution

Attitudes &
Attractiveness Performance Brands Variance
beliefs

Adoption Next moves Knowledge Ratios

Loyalty & Customer

Future Image
switching satisfaction

Satisfaction Innovation
PEST Analysis
Examples of SWOT Analysis in Pharmaceutical Domain
S W
• Product Efficacy
• Product Safety
• Tolerability
• No interaction
• Innovative class
• Fast onset
• Supportive clinical trial
programs
• Skilled sales force team
• Company image
• Superior segment
knowledge
• Prescribers relation
• Pharmacoeconomics
expertise
• Weak R&D portfolio
• Lack of financial resource
• Lack of human resource
• Old manufacture
technology
• Lack know-how
technology
• Complex dosing regimen
• Low acceptance of new
molecule
• Low awareness
• Low premarketing activity
• Multiple product priorities
O T
• Unmet market needs
• Market size
• High market growth
• High prices environment
• New way to promote
• Low market fragmentation
• Positive clinical outcomes
• Positive publicity
• New segments
• Treatment guidelines
support
• Chronic treatment
• Population aging
• High disease awareness
• Patient education
• Trade barriers reduction
• Tender business
• Competitor withdraw
• New, tough competition
• Economic problems
• Changing politics
• Sales seasonality
• Competitors mergers
• Technology breakthrough
out of hand
• Late market entry
• Be obsolete
• Patent expiration
• Generic launch
• New regulation
• Price wars
• Low patient compliance
• Bias to competitors
• Aggressive competitive
campaign
• Loss of customer base
 Define Market
Segment Part 6 to
Part 14
Focus on relevant info.

List Factors

Check facts

SWOT Analysis Steps List under SWOT

Reduce each list to 10

items

Prioritize
Objectives Determination
Objectives
 Financial Objectives
 Quantitative
 Volume - Value

 Marketing Objectives
 Qualitative
 Customer Objectives
 Future Objectives
 Reputation Objectives

 Forecasting
 Assess Market
Environment

Establish Tactics
and Budgets Estimate Market
Potential

The Forecasting Cycle

Compare Forecast
Estimate Market
with Objectives
Forecast

Estimate Sales
Potential
Rethink Marketing
Strategy
Forecasting Techniques
 Qualitative Approach:
 Delphi Methods (Expert's Subjective Rating – IMS Benchmarks)
 Marketing Research and Analysis (Customer Survey & Sales force team)
 Historical Analogy (Knowledge of similar products)
 IMS & Distributors.

 Quantitative Approach:
 Time Series Models:
 Simple Moving Average
 Weighted Moving Average
 Exponential Smoothing
 Regression Analysis, Trend Models:
 Linear vs. Non-Linear / Linear Regression.
 Single vs. Multi-variable / Multiple Regression.
Regression & Excel
One Variable (X)
Trend Projection & Excel Part 15 to
2 or more Variables (X) Part 24
Strategy
 Product Organization
Strategy Types
Growth | Intensive Strategy
• Market Penetration Strategy
Product Lifecycle Strategy PLC • Market Development Strategy
• Introduction • Product Development Strategy
• Growth • Diversification Strategy
• Mature
• Decline

BCG, Boston Matrix, Market share, Market Growth Generic Strategy

• Question Mark • Cost Leadership Strategy
• Star • Differentiation Strategy
• Cash cow • Focus Strategy
• Dog

Integration Strategies
Horizontal – Backward - Upward
 Hierarchy of Strategies
 Corporate Strategy
 What businesses are we in?
 What are our core competencies?
 How should we allocate resources?
 What businesses should we be in?

 Business-Level Strategy
 How do we compete in a given industry?
 How should we position ourselves against competitors?

 Functional Strategy
 How can we allocate resources to most efficiently and effectively
support business-level strategies?
 Marketing manages organization-customer connections.
 Strategy
Segmentation
Targeting
Positioning
Differentiation
• Segmentation:
Geographic / Demographic / Psychographic / Behavioural

• Demographic Segmentation:
Age, Gender, Life-cycle Stage, Income, Social class, lifestyle
Requirements for Effective Segmentation

Defendable
Positioning
Positioning According to:
 Product Benefits, Value, Features
 Product Uses / Users / Category
 Meeting Unsatisfied Needs within competitors
 Direct Comparison To Competitors
 Avoiding Competitors
 Price, Quality, Efficacy, Ease Of Access, Value-added
Service
 Company Service
 Customer Experience (Trust)

 Rational elements & Emotional elements / Objective or

Subjective
 Winning
Zone

What What your

customers brand
want does best

Losing
Zone

What your
Competitor
Risky does best
Zone
Dumb
Zone
 Positioning Y
Perceptual Map Product A

Product C
Positioning Examples:
X
• Price vs. convenient packaging
• Price vs. quality Product D
• Dosage regimen vs. broad spectrum activity Product B
Examples of Pharmaceutical Positioning Statements

Market Segment Brand Name Frame of Reference Differentiation Competitive Edge

Bcus it offers long relief Due to its innovative drug
In GERD treatment Product X Is the best choice
with no side effect combination
Among selective Bcus it offers superior
Is the most Due to its selective serotonin
serotonin reuptake Product Y efficacy and no side-
tolerable receptor actions
inhibitors SSRI effects
In hormonal
Is the standard of a Bcus it covers all body By acting on central and
replacement Product W
new era needs peripheral specific receptors
therapy
Is the only long- That offer fast relief and Due to its selectively targeted
Of all analgesics Product Z
lasting product tolerability effect on COX2 receptors
 Strategy
Differentiation Approaches

Product Services Personnel Promotion Company Distribution

Channels Image
Quality Delivery, Competences Channels,
Training, Digital Marketing Atmosphere, availability,
Pricing Consulting, Communication Delivery time
Advertising Culture,
Packaging post-sale Follow up Direct Marketing Financing
services, Events,
Features, maintenance, Credibility Sales Promotion Delivery
coverage
Forms, installation, Reliability Events Arrangements
Performance, ease of Public relation Warehousing,
Design, ordering Responsiveness Factory
Personnel Selling
Durability,
Style
Blue Ocean Concept Part 25 to
• What are blue oceans? Part 41
• Blue oceans are all the industries not in existence today,
the unknown market space

• Why do we call them blue oceans?

• Unexplored and untainted by competition, ‘blue oceans’
are vast, deep and powerful in terms of opportunity and
growth
• What is blue ocean strategy?
• Blue ocean strategy creates new demand. Companies
develop uncontested market space rather than fight over a
shrinking profit pool
• What outcomes does blue ocean strategy produce?
• Creating blue oceans is non-zero-sum. There is ample
opportunity for growth that is both profitable and rapid
Tactics
 Tactics
Budgeting
 Setting the Total Promotion Budget

 Percentage of Sales Method

 Competitive-parity Method
 Objective-and-task Method
 All we can afford
 Same as last time
 According to Product Life Cycle
Important Tips in Budgeting
 To just keep your current Market position → at least 5% Marketing
Budget of your pervious sales gain

 To gain more market share and achieve significant growth → at least

10% Marketing Budget

 In case of new product launch or new market development (New area

or new segment) → at least 15%-20% Marketing Budget

 In case of new company look for build new positioning in the market →
at least 30%-35% Marketing Budget

 Small to medium well-established businesses → spend around 7% - 10%

of projected revenue
Marketing Budget by Industry
Marketing Budgeting as % of industry revenue - 2019
 Average Business Spending • SEO
Allocation • Social
Market Research • Blogging
5%
Direct Marketing Online Marketing • Video
15% 30%
• Pay-per-Click
• Mails, Promotional letters
• Phone text messaging
• Coupons
• Phone calls
• Catalog distribution

• Television
Events
20% • Radio

Offline • Billboard
Marketing
• Newspapers
30%
• Magazines
Tactics
Pricing
Pricing Policies
Differential Pricing
Variable Pricing
2nd Market Discounting
Skimming
Periodic Discounting
Random Discounting
Competitive Pricing
Competition-meeting Pricing
Competition – undercutting Pricing Offer prices lower than competition, try to gain market share
Following the leader pricing
Penetration pricing
Predatory pricing
Traditional pricing
Inflationary pricing
Set different prices in different markets, due to local regulation
It primary market covers its costs (Variable& fixed) enter 2nd market e lower prices
Set initial high prices, then lower it gradually
Lower prices as periodic intervals, e.g. seasonally
Lower prices unpredictably & infrequently
Offer prices at the same level with competitors, to avoid prices wars
Adjust prices according to the market leader's pricing moves
Offer initial prices below cost, planning to capitalize as experience curve rises
Set initial prices low to eliminate competitors, then raise them
Set according to historic price of "reference" product, e.g. the first one or the famous
Adjust prices downward if inflation rises (lower purchasing power)
 Pricing Policies - 3
Product-Line Pricing
Total-profit pricing Sacrificing an item's price so that store traffic and, thus, total profit increase
Captive pricing Price a basic unit low, with its necessary supplies high
Leader pricing If the market leader, add a price premium on preferred product
Value pricing Set prices according to customer perceived value
Offer an “product version” priced low, planning to switch the customer to
Bait pricing
something higher
Price lining Instead of a wide range, offer three product classes at $5, $20, and $100 per unit
Price bundling Offer discounts for buying a product package
Multiple-unit pricing Bundle products in large quantities and low prices (economies of scale)
Pricing Policies - 4
Psychological | Image Pricing
Reference pricing Offering a low priced generic next to an expensive "reference priced" original
Odd and even pricing Odd prices (e.g., $8.99) indicate low price, while even prices (e.g., $800) indicate prestige
Prestige pricing Set very high prices to match a luxury item's prestigious image

Distribution-based pricing
FOB pricing "Free on Board" means an all-inclusive price up to a destination point
Delivered pricing Price of a product delivered at the customer's warehouse
Zone pricing Prices set according to regional zones (e.g., north, south, central)
Uniform delivered pricing Charge a uniform price across the country
Pricing Policies - 6

Other pricing policies

When business want to offer customers free services in addition to paid options, the free
Freemium Pricing
option typically has fewer features than the paid option
Is a volume-based pricing, when company price goods low, and gain revenue based on the
Economy Pricing
number of customers who purchase the product
Dynamic Pricing Businesses set flexible prices for products or services based on current market demand
Pay-what-you-want Provide the service, then let people decide how much they want to pay for it (e.g. street
Pricing performers & artist – internet services, …etc.)
Price Sensitivity & Consumer Psychology

 Reference Price effect

 Difficult comparison effect
 Switching costs effect
 Price-Quality effect
 Fairness effect
 Tactics
Communications
(Promotion)
Integrated Marketing Communication - IMC

Advertising

Digital Sales
Marketing Promotion

Personal
Publicity IMC Selling

Event Direct
Marketing Marketing

PR
Integrated Marketing Communication - IMC
Sales Events & Public Personal Direct Digital
Advertising
Promotion Experiences Relations Selling Marketing Marketing
• Billboards • Sampling • Sports • Press kits • Sales • Catalogs • SEO
• Print Ads • Trade shows • Entertainment • Speeches presentations • Mailings • Content
exhibits • Festivals • Seminars • Sales meetings • Telemarketing • Affiliate
• TV & Radio
• Coupons • Arts • Annual reports • Incentive • Electronic • Email
Broadcasting • Rebates
• Packaging ‫خصومات‬ • Causes • Charitable programs shopping • Social Media
• Comp. Cars • Entertainment • Factory tours. donations • Samples • TV shopping • SMS
• Newspaper • Continuity • Company • Publications • Fairs and trade • Fax mail
inserts programs museums • Community shows • Voice mail
• Motion pictures • Pay back • Street activities relations
• Brochures • Contests • Mall events • Lobbying
booklets • Games, area
• Sweepstakes
• Flyers
‫يانصيب‬
• Posters • Premiums
• Pop Display ‫نارية العاب‬
• Logos, slogan
• Ph. Bags
 Elements of
Communication
Strategy

Message Target Medium Frequency

Advertising Hooks

Product-Related Efficacy, safety, innovation, cost-effectiveness, packaging

User-Related Quality of life, preference, testimonials, recommendations, Compliance
Usage Safety, tolerability, dependability, before and after
Manufacturer-related Image, services, leadership, innovation,
Non-rational Empathy, humor, curiosity, patriotism, self-gratifying
Objectives of the Advertising Message

Informative Persuasive Reminder

• New product • Growth products

• New usage
• New product-line,
packaging
• Company image
• Elimination fear of usage
• Switching from
competitive products
• Create attitudes towards
product benefits
• Long-term cost-
effectiveness
• Mature products
• Available
• First choice
• Low price
• Home or office use
Guerrilla Marketing Concept
Is an advertisement strategy in
which a company uses surprise
and/or unconventional
interactions in order to promote
a product or service
How to Create a Promotional Plan - Example

Encourage customer switch to a new, more profitable formulation | to attack

Objectives
competitive market leader brand
Timing Summer 2021
Location Egypt Market
Resources required Marketing Manager, Sales force team (45 members)
Feb. 2021: TV advertising campaign ready
Critical Deadlines March 2021: TV campaign aired
Rebate coupons placed in supermarkets
Budget 250.000 LE for TV advertising campaign, printing
Goals Gain 100,000 units sales, capture additional 10% market share
Method of Evaluation Sales data & survey in 100 big supermarket in big cities
 Tactics
Sales Force Management
Tactics
Determining The required Sales Force Size

Breakdown Method Workload Method Incremental Method

Sales Reps Number = Sales Reps No. =

Sales Reps added if
Forecasted Sales \ Sales calls required to
Incremental profit >
Rep average serve customers \
Incremental cost
Productivity Sales call per Rep
 Tactics
Sales Force Team Management – Pharmaceutical Examples

Marketing Communication
Visiting Plan & Target Drs Mix items in Pharma Fields
Sales Force Execution Plan  Brochure
 What to do at First, 2nd , 3rd Visit
 Flyer
 No. of reps delegated
 Gifts Distribution, Timing  A.V Actions
 No. of call per day / per month
 Drs of Class A,B,C – Polyclinics  Gimmicks
 Frequency of visits  Samples
 Set priorities
 Products message & priorities  RTD
 Productivity per head  Stand Alone
 Gifts
 Dealing with Different types of Target
Groups  Service
 Events & Conferences
 Motivation plan – Incentive scheme
 Digital Marketing
 Tactics
Digital Marketing
Types of Digital Marketing
Effective marketing technique of creating and distributing valuable online content, e.g. videos, blogs
Content Marketing etc., to the targeted audience
Email marketing is a digital marketing strategy based on sending emails and developing relationships
Email Marketing with prospects and customers. An effective email marketing strategy convert prospects into
customers, and turn first time buyers into recurring customers
A marketing arrangement by which an online retailer pays commission to an external website for
Affiliate Marketing traffic or sales generated from its referrals.
Mobile marketing is any advertising activity that promotes products and services via mobile devices,
Mobile Marketing such as tablets and smartphones
Search engine optimization is the process of improving the quality and quantity of website traffic to a
SEO website or a web page from search engines. SEO targets unpaid traffic rather than direct traffic or
Search Engine Optimizer
paid traffic
SEM Search engine marketing is a form of Internet marketing that involves the promotion of websites by
Search-Engine Marketing increasing their visibility in search engine results pages primarily through paid advertising
SMM is the use of social media websites and social networks to market a company's products and services
Social Media Marketing
 Tactics
Distribution (Place)
 When to Use Distributors ?!
Favoring Distributors Favoring Direct Channel
 Product requires local stock
 Product line is small, unable to support direct sales
 Product is highly customized
 Product is somewhat generic
 Product is new or innovative
 Product has low unit value
 Product is near end of PLC  Product is technically sophisticated
 Customers are widely dispersed  Significant missionary selling is required
 Local repackaging, sizing, or fabrication is required  Large buyers are geographically concentrated
 Product requires extensive sales effort directed at
buying professionals
 Start-up venture or established company is entering a
new market
 Competition uses distributors
 Customers prefer distributors
Part 42
Distribution Channel Selection Factors Parts 42 to
67

Organization Market Product Environment

• Delivery speed • Density • Shelf life • Competition
• Delivery frequency • Geography • Storage • Technology
• Customer • Clustering • Packaging
Satisfaction • Size • Complexity
• Resources
• Capabilities
Implementation
Implementation
8 Ss For Successful Implementation:
 Strategy
 Structure
 Systems “hardware” of success
 Style (how employees think and behave)
 Skills (to carry out the strategy)
 Staff (people who are properly trained and assigned)
 Shared values (values that guide employees’ actions) are the
“software.”
 Supervision control & Follow up
Control & Evaluation

 Setting measurable standards

 Evaluating performance against standards as the organization
implements the plan
 Making any required adjustments
Contingency Plan
Part 68

Steps for Corrective and Preventive actions to

support continual improvement

 Define the problem & the scope

 Containment actions
 Find the root cause(s)
 Plan a corrective action
 Implement the corrective action
 Follow up to make sure the plan worked
What If …….
Plan B.
Failure Symptoms
Alternative Strategy
Two Types Of Companies

Linear Sales Growth

Fighting for No. 1
Company Types & Competitive Strategies
Challengers
• Similar resources and capabilities to Leader, its main strategic
objective is to gain market share by attacking
• Frontal Attack: offer similar new formulation at better price
• Leapfrog Attack: offer better & differentiated product
Leaders • Flank Attack: go after segment with unmet needs
• Encircle Attack: go after small untapped segment
• Guerilla: Sporadic attack on geographic market, or other
segment weak points, through sales promotion, local adv.
campaign

Followers Nichers
• May don’t have the enough resources to attack the leaders, but
• Focuses on specific, small segment chosen based on cost or
remain innovative and competitive, or may be focused only on
innovation differentiation
survival
• Adv.: reduce competition, compete with limited resources,
• Ex. Generics In pharmaceutical sectors, the most essentials are;
perception of by niche customers as affording superiority
bioequivalence, bioavailability, good quality & low price
• Disadv.: single market dependence
 ‫قناة اليوتيوب‬ ‫أنضم الى جروب الفيسبوك‬
‫‪Mohamed Fathy Ibrahim‬‬ ‫بالستوما أنكلستوما‬