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Creating An Effective Marketing Plan


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Key Elements of Key Elements of Marketing PlanMarketing Plan

Outline or Table of Contents

Executive Summary

Situation Analysis

Objectives

Strategies

Tactics

Budget


The outline is the headings of each

section with page numbers (remember to

include page num bers—without them,

anybody reading your plan is lost).

Outline or Table of Contents


Begin your marketing plan with a one-

page summary of the circumstances and

principal recommendations contained in

the plan.

Executive Summary


Summary allows everyone to grasp

quickly the main thrust of the plan and

then lets them read further in search of

the information most critical to his or her

part in it.

Executive Summary


• This section describes where your

company stands at that moment in time.

• It includes background on past sales,

major competitors, and explanations of

recent sales and profit results.

Situation Analysis


• It should also feature a forecast for the

industry, including opportunities and

threats and some mention of the

company's strengths and weaknesses

versus the competition.

Situation Analysis


• Every company has objectives. They are

simply a matter of deciding where you

want to be and when you want to get

there.

Objectives


Objectives

• Is the purpose of your marketing plan to

launch a new product or line of products?

• If so, your objective might read, "Achieve

10 percent market share within the first

12 months of product launch."


Objectives

• Is the purpose of your marketing plan to

boost revenue from existing products?

• Your objective then might read, "Increase

revenue 12 percent from our existing line

of products over the next six months

while maintaining current profit margins."


Strategies

Strategies are the things you need

to do to accomplish your

objectives. If your objective is

where you want your company to

be, the strategy is the route you

need to take to get there.


Strategies

• For example, if the objective is to increase sales revenue, your strategies might be one or more of the following:

• Increase the average price on all units

• Increase overall sales volume

• Sell more of the higher-priced units

• Any combination of these


Tactics

• Whereas strategies establish a broad outline

of how you want to achieve your objectives,

tactics are specific actions.

• "Increase awareness among potential

customers" is a strategy. "Develop a

brochure to send to new prospects" is simply

a tactic for implementing that strategy.


Budget

• Of course, each tactic has a price. Add up all

that you plan to use and you know what your

budget must be to achieve your goals.


Marketing Plan: An Example

PlasticMaker Inc.


Executive Summary

• PlasticMaker is a plastic injection molding firm with

annual sales of $2 million.

• This plan was developed to provide opportunities for

increasing sales 40 percent or more over the next

three years.

• The company will expand its sales territory and

attract new customers through direct mailing,

publicity, and the personal selling efforts of

independent manufacturers' representatives.


Situation Analysis

• PlasticMaker uses technologically advanced plastic

molding equipment capable of unattended

operation to provide just-in-time service to clients

in Minnesota, Wisconsin, and Michigan's Upper

Peninsula.


• Sales have been flat over the past two years due

to a highly price-competitive market, but have

experienced steady growth the four previous

years.

• The company has an excellent reputation and

typically turns 15 percent of quote requests into

customers.

Situation Analysis


• Opportunities exist for expansion to Illinois and

Iowa due to higher price points and fewer

competitors in this region.

Situation Analysis


Objectives

• Increase sales 40 percent over the next three years while maintaining 20 percent profit margins or better.

• Retain current mix of customers so no one cus tomer represents more than 20 percent of sales.

• Relieve Joe Dokes, owner, of the burden of sales, allowing him more time for administration and quality control.


Strategies

• In all promotion materials, present clear, consistent image of quality and service to target market.

• Hire Independent Manufacturers' Sales Organization to relieve Dokes of sales responsibilities.

• Expand to markets beyond current geographic region of Minnesota, Wisconsin and the Upper Peninsula.


Strategies

• Provide ample sales support for sales representatives.

• Develop training programs for sales representatives designed to encourage loyalty and enhance service image of firm.

• Respond to quote requests faster.


Tactics

• Seek out, retain, and train independent sales

representatives (at a 10-percent commission rate) to

cover the territory of Illinois and Iowa, which will increase

customer base by 120 percent.

• Purchase CAD/CAM design system. Customer research

indicates it is important to return quote requests promptly.

Current average turn around time is ten days.

PlasticMaker will cut this time to five days by purchasing

a CAD/CAM design system and using computer-

dedicated fax lines to return quote requests promptly.


Tactics

• Hold annual sales meeting. The additional sales

representatives require training and a sense of "team

spirit."

• Develop new brochure. Feedback from the field indicates a

need for a more detailed brochure that can be used as a

direct mailing prior to a sales call, a "leave behind" at the

sales call, or as a follow-up to a customer contact.


Tactics

• Obtain magazine reprints. Use high-quality reprints of

company's trade journal advertisements for distribution by

sales representatives, in mailings, and at trade shows.

• Publicity. The company will use its public relations agency

to develop articles of interest to the industry while

portraying the firm in a positive light. Emphasis will be

placed on publications in the Midwest, particularly in

Illinois, Iowa, and Wisconsin.


Tactics

• Direct mailing. Purchase prospective customer mailing

lists targeting by ZIP Code (Illinois, Iowa), Standard

Industry Classification (SIC) code, and sales (over $10

million but less than $1 billion). Develop mailing designed

to attract 5 percent or better prospect inquiries, of which

15 percent will become customers. Provide lists to sales

representatives and notify them which portion of the list

will be mailed and when.


Source of ReferenceSource of Reference

• W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy, HBS

Publication

Documents

1 visit: Creating An Effective Marketing Plan