Marketing Planning

‡ Brand Management System ‡ On Building A Brand ‡ Managing Across Brands
Marketing Plan ± 1

Professor Carl Mela BA 460 Product Management Fuqua School of Business

Agenda
‡ Marketing Planning ‡ PharmaSim

Marketing Plan ± 2

The Purpose of Planning
‡ ³Planning is everything, plans are nothing.´
± General Eisenhower

‡ Planning is to a large extent the job of making things happen that would not otherwise occur.

Marketing Plan ± 3

Obstacles to Planning ‡ ‡ ‡ ‡ Good Forecasting Time Lack of Process Lack of Management Commitment Marketing Plan ± 4 .

Responsibility for Planning Industrial Consumer Service Products Products Firms Marketing managers or directors Vice President mktg or similar Product/brand managers General managers. mktg research Planning titles Committee or team Source: Conference Board 34% 25 15 11 6 9 0 17% 29 23 8 9 13 1 36% 12 0 36 4 8 4 Marketing Plan ± 5 . advertising. division heads Sales.

Responsibility for Approving Plans I President. irman. CEO eneral division manager Vice President marketing Group ead Committee Executive (or senior VP) Ot er i l C i i 22 12 12 9 4 3 14 11 11 4 13 3 8 4 0 16 24 0 Source: Conference Board Marketing Plan ± 6 .

Planning Horizon Industrial Consum r Service 1% 6% 0% 18% 23% 14% < 1 year 1 year 1 year + reference to later years 1 year + longer term plan > 1year Source: Conference Board 44% 18% 19% 40% 16% 15% 58% 0% 28% Marketing Plan ± 7 .

better forecasts ‡ Top Down ± More vision at the top. motivated by control.Top Down v. more coordination Marketing Plan ± 8 . Bottom Up ‡ Bottom Up ± Closer to implementation.

Planning Process ‡ ‡ ‡ ‡ ‡ ‡ ‡ Set Deadlines / Initiate Process Gather Data Analyze Data / Situation Assessment Make Plans & Forecasts Refine Plan Management Approval Disseminate. Monitor & Control Marketing Plan ± 9 .

Action Plans. and Due Dates Evaluate Programs Against Objectives Attainable Unattainable Draft Marketing Plan Compare Programs to Resources Feasible Infeasible Submit Plan for Approval Approved Go Source: Conference Board Not Approved .Assess Situation Consider Company Goals Set Measurable Objectives Develop Strategies. Responsibility Assignments.

The Marketing Plan ‡ Where are we now? ‡ Where do we want to be? ‡ How do we get there? Marketing Plan ± 11 .

Marketing Plan ‡ ‡ ‡ ‡ ‡ ‡ Executive Summary Situation Analysis Marketing Objectives Strategy and Tactics Monitors and Controls Financial Documents Marketing Plan ± 12 .

prioritization of information ± Diagnostic.Situation Analysis ‡ Review of Status and Future Outlook ± Not just data. but implications ± Brevity. not descriptive ± Contains: ‡ ‡ ‡ ‡ ‡ Category Analysis and Forecast Trends Sales Analysis 3 C Analysis Planning Assumptions Summary (Problems and Opportunities) Marketing Plan ± 13 .

‡ Measurable and achievable ‡ Subsequent strategy and tactics must demonstrate compliance with objectives Marketing Plan ± 14 . share.Objectives ‡ ³If you don¶t know where you want to go. etc. with dates and numbers ‡ Sales. profits. any road will take you there´ ‡ Precise.

g. message.. media schedule.Strategy and Tactics ‡ Strategy is means to accomplish goal. with what resources Marketing Plan ± 15 . by when. by whom. agency.g. e. awareness goal will be met by advertising ‡ Tactics pertains to the implementation.. ± how to. etc. e.

. competitor merges or leaves) ± What ifs and appropriate trigger points Source: Conference Board Marketing Plan ± 16 .g.Monitors and Controls ‡ 74% of consumer product firms have explicit sales promotion tactics ± Only 36% monitor ‡ 69% of industrial firms have explicit sales tactics ± Only 46 % monitor ‡ Only 1 in 4 firms has a contingency plan ± Both good and bad events (e.

PharmaSim ‡ Goal: Provide context for plan ± 20% plan. 5% performance ± Assignment detailed on website ‡ Goal: More experience in decision making ‡ More brand oriented than Markstrat ± More promotion and advertising decisions. not classmates Marketing Plan ± 17 . less production ± Play against pc.

PharmaSim ‡ Overview of Market ± 250MM Persons (1% Growth /Year) ± 2% GNP Growth ± Moderate Inflation ± 80% of Population Suffers from Colds ± OTC Market is $2BB Growth 4% / Yr ± Manufacturer Sales = $1.5BB ± Five companies ± Capacity adjusts automatically to demand Marketing Plan ± 18 .

C. and E) ‡ Four Trade (not Consumer) Categories ± Cold. and allergy ‡ Brands Have Five Attributes ± Symptoms relieved.PharmaSim Market ‡ Competition ± Four competitors (B. liquid. nasal. cough. D. form (capsule. spray). duration of relief. side effects. and price Marketing Plan ± 19 .

PharmaSim Market 119.1 Col Cough 366.7 Nasal Marketing Plan ± 20 .4 All rgy 879.1 126.

or usage ± Note: mfg. allergy). work or home) ± Thus. can segment by illness. age. sales study (pre-defined category) consumer survey (usage) ‡ Buying process ± Awareness Purchase Intention In Store Attractiveness Purchase Usage Satisfaction Repurchase Marketing Plan ± 21 . age.PharmaSim Consumers ‡ Buying behavior varies with ± Illness/symptom (cold. and usage occasion (day or night. cough.

PharmaSim Channel ‡ Through Wholesale or Direct to: 9% 4% 22% Independent Drugstores Chain Drugstores Grocery Stores Convenience Stores 37% 28% Mass Merchandisers Marketing Plan ± 22 .

D. >2500 Units ‡ Wholesale ‡ Salesforce Size ± Direct (By Channel) ± Indirect (Wholesale. Detailers for M.PharmaSim Decisions ‡ Pricing ± MSRP ± Trade ‡ <250 Units.Retail Sales Support. Merchandisers .¶s) Marketing Plan ± 23 . <2500 Units.

benefits. congestion.PharmaSim Decisions ‡ Advertising ± Targeting ‡ Segments (By Age and Usage) ‡ Agency ‡ Budget ± Message ‡ Message (primary demand. etc..) Marketing Plan ± 24 . competitive comparison. aches.g. or reminder message) ‡ Benefits (e.

PharmaSim Decisions ‡ Trade Promotions ± Allowances (% of MSRP by channel) ± Co-op Ads (total $ and which channels) ‡ Consumer and Trade ± POP ($ and which channels) ± Trial Size ($) ± Coupons ($ and face value) Marketing Plan ± 25 .

before decision 5 ± Your own product .before decision 8 Marketing Plan ± 26 .before decision 4 ± New product .PharmaSim Decisions ‡ Product ± Reformulation .before decision 2 ± Line extension .

but easily missed.PharmaSim Tips ‡ Please review tips on website (link from syllabus) ‡ Read pages 5-66 carefully. buried on page 66 is the statement that FC continue when product is dropped.g. Important. Marketing Plan ± 27 .. Other examples abound. E.

product life cycle) Marketing Plan ± 28 . positioning relative to competition) ± Size = f(population. synergies among marketing activities. industry marketing $ and quality. value/price. available product benefits. needs.Other PharmaSim Tips ‡ Think analytically ‡ Sales = Share * Market Size ± Share = f (marketing $ and quality. fit with segments selected.

± Shift resources to new product Marketing Plan ± 29 ..More Tips ‡ Marketing $ can interact ± Deals more effective with ads ‡ Stockpiling is possible ‡ Understand the role of channel and how to motivate ‡ Think about the ramifications of your strategies ± A leading brand (Allround) should never run comparison ads against a niche brand (Coughcure) ± Line extensions do not need the same marketing $ as new brands ‡ Allocate marketing $ to area with highest returns ‡ Key opportunity is chance to introduce new product into a market with a real need (e.g. Allright Allergy).

Marketing Plan ± 30 .One Last Tip ‡ Cost dynamics. and capacity utilization are essential to profitability. margin management. value based pricing.

‡ First move of Pharmasim should take 2 hours. Marketing Plan ± 31 . Then. Harvard runs 10 moves in 24 hours period. about 1 hour + for the remaining 7 moves for a total of 10 hours.Marketing Plan Assignment ‡ The assignment is detailed on the website and linked to the syllabus.

Marketing Plan Assignment ‡ Three parts (4 pages & Exhibits) ± Situation analysis ± Marketing program and financials ± Executive summary. performance = 5% ‡ Please turn in copy of diskette and administrator report with the first two parts ‡ Note: marketing planning (although not handed in) should occur each period of PharmaSim! Marketing Plan ± 32 . and post-mortem ‡ 3 reports = 20% . contingencies.

Marketing Plan ± 33 . ‡ This Assignment aligns with both. ‡ Daily product management is the other 7080%.Marketing Plan Assignment ‡ Marketing plans represents 20-30% of what you will do.

Summary ‡ Marketing Plan ± Executive Summary ± Situation Analysis ± Marketing Objectives ± Strategy and Tactics ± Monitors and Controls ± Financial Documents ‡ PharmaSim is Vehicle for Plan Marketing Plan ± 34 .

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