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CHAPTER TWENTY-ONE

Developing Innovative
Marketing Plans

For use only with


Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin

www.mhhe.com/fourps

When we finish this lecture you should

1.
2.
3.
4.

Know the content of and differences among


strategies, marketing plans, and a marketing
program.
Understand all of the elements of the marketing
strategy planning process and the strategy
decisions for the four Ps.
Understand why product classes and typical
mixes should be considered when developing a
marketing plan.
Understand ways the marketing strategy and
plan are likely to need to change at different
stages of the product life cycle.

When we finish this lecture you should

5.
6.
7.

Understand the basic forecasting approaches


and why they are used to evaluate the
profitability of potential strategies.
Know what is involved in preparing a marketing
plan, including estimates of costs and revenues
and specification of other time-related details
Understand ways firms can become involved in
international marketing.

The
Development
Marketing Plansand
(Exhibit
21-1)
Strategy
Planning,ofImplementation,
Control
(Exhibit 21-1)

Putting Together Innovative


Marketing Plans

Blending the
marketing mix

Forecasting the
target market
potential & sales

Writing marketing
plans

Marketing Planning Process Is More Than


Assembling the Four Ps
Weve become a
model for how to do
business on the
Internet. Everything
from being integrated
with suppliers to ecommerce to customer
support creating
efficiencies that result
in business to
business at its best.
Online.

Developing Different Marketing Mixes

2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

S.W.O.T. Analysis

S.W.O.T. Analysis

Checking your knowledge


Which of the following would a S.W.O.T. analysis classify
as an opportunity for Microsoft:
A. Microsoft has a great deal of cash available for
marketing strategies.
B. Microsoft develops new patented technology that makes
its software run faster.
C. European trade regulators consider rulings that would
require Microsoft to develop a new version of Windows
for its market.
D. Emerging markets in Asia and Africa show increased
demand for computers and software.
E. The company hires an expert in online advertising.

Marketing Mix Flows from Target Market


Dimensions (Exhibit 21-3)

Marketing Manager Must Blend the Four Ps

Product Life Cycle Guides Planning (Exhibit 21-4)

Forecasting Target Market Potential and Sales

We can tell you who


your next customer
is right down to
the partially
hydrogenated
canola oil on his
poly/cotton
undershirt.

Two Approaches to Forecasting (Exhibit 21-5)


Extending Past Trends Can Miss Turning Points

So, Predicting Future Behavior Takes Judgment!

Forecasting Company Product Sales by Extending


Past Behavior
A Bread Producer Example of the Factor Method
Past
Past share:
share:
1/10%
1/10% of
of total
total
retail
retail food
food
sales
sales in
in target
target
markets
markets aa
factor
factor of
of .001
.001

Previous
Previous years
years
total
total food
food sales
sales
in
in Denver,
Denver, CO:
CO:
$4,700,116,000
$4,700,116,000

Bread
Bread
producers
producers
estimated
estimated
sales:
sales:
$4,700,116
$4,700,116

The Factor Method Can Use Several Factors!

Producers of Business Products Can Use Several


Factors Too (Exhibit 21-7)

Other Trend Extension Methods

Time
Time Series
Series

Leading
Leading Series
Series

Indices
Indices

Predicting Future Behavior Calls for More


Judgment and Some Opinions
Jury
Jury of
of
Executive
Executive
Opinion
Opinion

Estimates
Estimates from
from
Sales
Sales People
People

Key
Methods

Surveys,
Surveys,
Panels,
Panels,
Market
Market Tests
Tests

Checking your knowledge


Viktor Potrenko conducted research for his dance studio,
VP Dance. There is only one other dance studio
currently in town and his research indicated that the
market potential was $400,000 for the coming year.
From this information we know that:
A. His dance studio should have a marketing plan that
forecasts $400,000 in sales.
B. His dance studios sales will be less than $400,000 in the
coming year.
C. Potrenko has yet to develop his marketing strategy.
D. If his studio gets a 40 percent market share, then the
other studio will have sales of $600,000 in the coming
year.
E. None of the above are true.

Analysis of Costs and Sales Can Guide Planning


(Exhibit 21-8)

Marketing
Mix
Price

Selling
Cost

Advertising Total
Cost
Units

Sales
Revenue

Total
Cost

Total
Profit

More What If? Questions


(Exhibit 21-9)

Marketing
Mix
Price

Selling
Cost

Advertising Total
Cost
Units

Sales
Revenue

Total
Cost

Total
Profit

The Marketing Plan Brings All the Details Together


Marketing
Marketing
Environment
Environment

Name
Name of
of
ProductProductMarket
Market

Product
Product

Customer
Customer
Analysis
Analysis
Competitor
Competitor
Analysis
Analysis
Company
Company
Analysis
Analysis

Place
Place

Types
of
Key
Parts
Demand-Oriented
of a
Marketing
PricingPlan

Marketing
Marketing
Information
Information
Needs
Needs

Promotion
Promotion
Price
Price
Special
Special
Implementation
Implementation

Forecasts
Forecasts and
and
Timing
Timing

Control
Control

Companies Plan and Implement Whole Marketing


Programs

Target
Target
Market
Market

+
Marketing
Marketing
Mix
Mix

Marketing
Marketing
Strategy
Strategy

+
TimeTimeRelated
Related
Details
Details

Marketing
Marketing
Plan
Plan

+
Other
Other
Marketing
Marketing
Plans
Plans

AA Firms
Firms
Marketing
Marketing
Program
Program

Planning for Involvement in International Marketing

Lower
Lower Levels
Levels of
of
Involvement
Involvement

Exporting
Licensing
Contract
manufacturing
Management
contracting

Planning for Involvement in International Marketing

Lower
Lower Levels
Levels of
of
Involvement
Involvement

Exporting
Licensing
Contract
manufacturing
Management
contracting

Higher
Higher Levels
Levels
of
of Involvement
Involvement

Joint
venturing
Wholly owned
subsidiaries
Multinational
corporations

Checking your knowledge


Maria Petrino is the marketing manager at Imported
Toys, a small online retailer. She has developed a
marketing mix for one of the retailers prime target
groups grandparents. She has finished laying out the
details of who in the firm does what during the next year
to attract the grandparents. Maria apparently has
created:
A. Only a marketing strategy.
B. A marketing plan.
C. A marketing program.
D. Both a marketing strategy and the associated marketing
plan.
E. All of the above are correct.

Interactive Exercise: International Marketing

2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

You now

1.
2.
3.
4.

Know the content of and differences among


strategies, marketing plans, and a marketing
program.
Understand all of the elements of the marketing
strategy planning process and the strategy
decisions for the four Ps.
Understand why product classes and typical
mixes should be considered when developing a
marketing plan.
Understand ways the marketing strategy and
plan are likely to need to change at different
stages of the product life cycle.

You now

5.
6.
7.

Understand the basic forecasting approaches


and why they are used to evaluate the
profitability of potential strategies.
Know what is involved in preparing a marketing
plan, including estimates of costs and revenues
and specification of other time-related details
Understand ways firms can become involved in
international marketing.

Key Terms

S.W.O.T. analysis
Market potential
Sales forecast
Trend extension
Factor method
Factor
Time series
Leading series
Indices
Jury of executive
opinion

Spreadsheet
analysis
Exporting
Licensing
Contract
manufacturing
Management
contracting
Joint venturing
Wholly-owned
subsidiary
Multinational
corporations