Marketing Plan

It is the central
instrument for directing
and coordinating the
marketing effort
Two levels of marketing plan

1. Strategic Marketing Plan – lays out the

target markets and the value proposition
that will be offered, based on an analysis
of the best marketing opportunities

2. Tactical Marketing Plan – specifies the

marketing tactics, including product
features, promotion, merchandising,
pricing, sales channels and service
 COMPONENTS OF COMPANY
PLANNING & STRATEGY
FORMULATION
VALUES ANALYSIS
Commitments, Priorities, Risk-taking
OBJECTIVES SETTING
Guides & Standards
Strategy Selection
How to fulfill Mission & achieve
Objectives
MANAGEMENT PROCESS
IN MARKETING

» Planning
» Organizing
» Implementing
» Evaluating
 KEY PLANNING CONCEPTS
MISSION – general terms which states the
parameters of the Company’s activities
• What customers are served
• What needs are satisfied
• What products are offered

OBJECTIVES – the Company’s desired

outcome. These should be:
• Specific  Consistent
• Written  Measurable
• Realistic  Time Bound
 KEY PLANNING CONCEPTS

STRATEGIES – the Company’s

broad plans to reach its
objectives

TACTICS – means by which

the Company implements its
strategies
 KEY PLANNING CONCEPTS
EXAMPLES:
Too General & Weak Specific & Workable
Objective “Increase our market “Increase our market
share.” share to 25% next year
from its present level
of 20%.”

Strategy “Intensify our marketing “Intensify marketing

efforts.” efforts in the domestic
market and expand into
foreign markets.”

Tactics “Advertise aggressively “Advertise in magazines

in media.” read by females and in
television programs
watched by them.”
 TARGET MARKET STRATEGY
PLANNING
ANALYZE CONSUMER DEMAND
• Determining Demand Patterns
• Establishing Bases of Segmentation
• Identifying Potential Market Segments
TARGET THE MARKET
• Choosing a Target Market Approach
• Selecting the Target Market(s)
DEVELOP MARKETING STRATEGY
• Positioning Company’s Offering
• Outlining Appropriate Marketing Mix
 TARGET MARKET STRATEGY
PLANNING

DEMAND PATTERNS – Show how similar or different

consumer desires are for a product
or a service

HOMOGENEOUS DEMAND
Consumers have relatively similar needs and wants
 TARGET MARKET STRATEGY
PLANNING

CLUSTERED DEMAND - consumer

needs and wants can be grouped into
two or more clusters (segments); each
with its own set of purchase criteria
 TARGET MARKET STRATEGY
PLANNING

DIFFUSED DEMAND - consumer

needs and wants are so diverse; no
clear clusters (segments) can be
identified
MARKET SEGMENTATION

Classifying customers into groups

and appealing to one specific group
through specialized and uniform
marketing programs.
 CONDITIONS FOR EFFECTIVE
SEGMENTATION
MEASURABILITY – Information is existing and
obtainable on a particular consumer
characteristic.

ACCESSIBILITY – Marketing efforts can effectively

be focused on a chosen segment.

SUBSTANTIALITY – Segments are large and

profitable enough to be worth going into.
 CONDITIONS FOR EFFECTIVE
SEGMENTATION
DIFFERENCES – There are distinct characteristics
among consumers.

SIMILARITIES – There are enough consumer

similarities within each segment to develop
an appropriate marketing plan.
 BENEFITS OF SEGMENTATION
Marketers are in a better position to spot and
compare opportunities.
- needs are examined and offerings are
done to satisfy these

Marketers can use this knowledge of marketing

response differences to guide their marketing
plans and budgets.
- there will be different responses to
different tools
 BENEFITS OF SEGMENTATION
Marketers can make finer adjustments in their
products and marketing appeals.
- a rifle approach to consumer instead of a
shotgun
 BASIS FOR SEGMENTATION
GEOGRAPHIC – population, transportation,
climate, type of commerce, retail
establishments, media, competition, growth
pattern, laws

PERSONAL DEMOGRAPHICS – gender, age,

education, mobility, income, occupation,
status, family size, nationality, life cycle
 BASIS FOR SEGMENTATION
CONSUMER LIFESTYLE – social class, usage rate,
usage experience, brand loyalty, personality,
attitudes
 Targeting the Market
Choosing a target market approach and
selecting the target market(s)

Undifferentiated
- majority of customers have similar needs and
appeals to a broad spectrum of people
- also known as mass marketing
 Targeting the Market

Differentiated
- develop one or more products for each of
several customer groups
- also known as multiple segmentation
 Targeting the Market

Concentrated
- offer one or more products to a single market
- also called niche marketing where there is
little or no competition and market is
small
 Targeting the Market

Customized
- a market of one and develop a separate
marketing mix for each customer
 ANALYZING MARKET
OPPORTUNITIES
The Product/Market Opportunity Matrix
Existing New
Product Product
Existing Market Product
Market Penetration Development

New Market
Diversification
Development
Market
The Product/Market Opportunity Matrix

Market Penetration
- market is growing and not yet saturated
- company seeks to expand sales of its present
products
- goes into intensive distribution, aggressive
promotion, and competitive pricing
- attracts competitors’ customers or non-users
 The Product/Market Opportunity Matrix

Market Development
- new market segments are emerging due to changes
in lifestyles
- company seeks bigger sales of its present products
in new markets or new product uses
- enters new geographic markets, appeals to market
segments it is not yet satisfying, repositions
existing products
- tries new distribution methods and promotion
efforts are more descriptive
 The Product/Market Opportunity Matrix

Product Development
- company has a core of strong brands and sizable
consumer following
- develops new or modified products to appeal to
present market
- introduces new models, quality improvements,
innovations to closely related products
- markets to loyal customers using traditional
distribution methods and promotions, stressing
products are made by a well established company
The Product/Market Opportunity Matrix

Diversification
- company decides not to be overly dependent on
one SBU or product line
- develops new products aimed at new markets
- products may be new to the industry or only to
the company
- distribution and promotion orientations are
both different from its traditional practices
 Product Positioning
Projects a product’s image in relation to
competitors’ products and the company’s
products. It enables the company to map its
offerings in terms of consumer perceptions
and desires, and environmental changes.
HIGH PRICE
• Accura
• Infiniti
• Accord
• Lexus
• Cefiro
LESS • Camry
MORE
LUXURIOUS/ LUXURIOUS/
POWERFUL POWERFUL
• Charade • Civic
• Pride • Sentra
• Starlet • Lancer
• Suzuki • Corolla

LOW PRICE
 POSITIONING STRATEGIES

ATTRIBUTE - As to size or years in existence

BENEFIT – A leader in certain benefits
APPLICATION – Best for some use
USER – Best for some user group
COMPETITOR – Better than a named competitor
PRODUCT CATEGORY - Leader in a certain category
QUALITY-PRICE – Best Value
DIFFERENTIATION – Act of designing a set of
meaningful differences to distinguish the
company’s products or services from competitors

PRODUCT DIFFERENTIATION
Features Durability
Performance Quality Reliability
Conformance Quality Repairability

SERVICE DIFFERENTIATION
Ordering Ease Customer Training
Delivery Customer Consulting
Installation Maintenance & Repair
PERSONNEL DIFFERENTIATION
Competence Reliability
Courtesy Responsiveness
Credibility Communication
IMAGE DIFFERENTIATION
Identity Atmosphere
Symbols Events
Written & Audiovisual Media
CHANNEL DIFFERENTIATION
Coverage
Expertise
Performance