1. Marketing Plans

2. Class Objectives Explain the role and importance of a marketing plan Give examples of need-satisfying and sales-target objectives Explain the difference between objectives, strategies, and tactics Define top-down, bottom-up & integrated marketing communications planning Describe how marketing and advertising plans are related

3. The Marketing Plan Assembles relevant facts about the organization, its markets, products, services, customers, and competition Forces company departments to work together (pro-duct development, production, selling, advertising, credit, transportation) to focus efficiently on the customer Sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them

4. Effect of Marketing Plan on Advertising Defines the role of advertising within the marketing mix (product, price, place, promotion). Enables better implementation, control, and continuity of advertising programs Ensures the most efficient allocation of advertising dollars Porsche ad: localemedia.com Subaru ad: autospectator.com

5. TOP-DOWN MARKETING Situation Analysis Marketing Objectives Marketing Strategy Marketing Tactics

6. Step 1: Situational Analysis Factual statement of the organization’s current situation and how it got there. Company history Growth Products and services Sales volume Share of market Competitive status Markets served Distribution systems Advertising programs Market research Company capabilities SWOT

7. Situation Analysis: SWOT STRENGTHS (internal factor): The positive attributes, tangible and intangible, internal to your organization Within your control What do you do well? What resources do you have? What advantages do you have over your competition? E.g. employees with expertise, the best equipment, strong customer base, high quality Graphic: browselocaljobs.com Description: articles.mplans.com

8. Situation Analysis: SWOT WEAKNESSES (internal factor): The negative aspects of your business that detract from the value you offer, or place you at a competitive disadvantage Within your control Areas in need of improvement to effectively accomplish your marketing objectives E.g. inadequate technology, lack of expertise, poor customer service, bad business location Graphic: browselocaljobs.com Description: articles.mplans.com

9. Situation Analysis: SWOT OPPORTUNITIES (external factor): The external, attractive factors that represent the reason for your business to exist and prosper Outside your control What opportunities exist in your market, or in the environment, from which you hope to benefit? E.g. growth of product class, lifestyle changes, market trends Graphic: browselocaljobs.com Description: articles.mplans.com

10. Situation Analysis: SWOT THREATS (external factor): Factors beyond your control that could place your marketing strategy, or the business itself, at risk Outside your control What situations might threaten your marketing efforts? E.g. the economy, government regulation, competition, bad reputation, price increases Graphic: browselocaljobs.com Description: articles.mplans.com

11. SWOT Analysis Example: from MarketingTeacher.com STRENGTHS: Prestigious, established, successful, global operation with sales in USA, Europe and Asia. Synonymous with social responsibility and environmentalism. For example, its products are packed in unbleached cardboard containers. Ben & Jerry‘s donates a minimum of $1.1 million of pretax profits to philanthropic causes yearly. The company sells colorfully named ice cream and frozen yogurt under brand names such as Chunky Monkey, Phish Food, and Cherry Garcia. 750 Ben & Jerry's Scoop Shops worldwide. In 2008, 2nd (36%) only to Haagen-Dazs (44%) in market share. Logo: fanpop.com

12. SWOT Analysis Example: from MarketingTeacher.com WEAKNESSES: In 2006 former CFO Stuart Wiles was convicted of embezzling some $300,000 from the company during his tenure at Ben & Jerry's, which ran from 2000 to 2004. In 2006 they had to stop using Michael Foods as their egg supplier, due to bad PR from the Humane Society, which alleged that Michel Foods treated chickens inhumanely. Their clear focus on multiple social responsibility issues can hurt the company by shifting the focus away from important business matters, and also adding unnecessary costs. They need more experienced management to fuel aggressive growth in a downturned economy and change flat sales in their premium product lines. Logo: fanpop.com

13. SWOT Analysis Example: from MarketingTeacher.com OPPORTUNITIES: Provide more fat-free and healthy alternatives, along with frozen yogurt, amid today’s health consciousness. Provide allergen free food items, such as gluten free and peanut free. Good PR: in 2009 Ben & Jerry's announced plans to roll out the country's first HFC-free freezers, freezers that would not emit harmful chemicals into the atmosphere. Expand existing product lines to compete with the 'private-in house brands' offered by supermarkets. Sell Ben and Jerry's premium ice cream in South America (which is an emerging market that has yet to be capitalized upon) and in new markets like Asia. Logo: fanpop.com

14. SWOT Analysis Example: from MarketingTeacher.com THREATS: Consumers, especially Ben & Jerry’s target market, which are accustomed to reading nutrition labels, have become more health conscious. Any contamination of the food supply, especially e-coli. Major competitors, like Nestle (Pillsbury), Kraft Foods, Dunkin Donuts, and Dean Foods, as well as grocery store label products. Animal feed prices are rising, partly because biofuel crops are replacing cow fodder, which pushes up the cost of milk. Prices of all milk products are rising worldwide, due to low supply and high demand. There may soon not be enough milk to meet demand, and there could be a global milk shortage. Logo: fanpop.com

15. Step 2: Marketing Objectives Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives. Need-satisfying objectives Sales-target objectives

16. Need-satisfying Objectives Puts the customer first… “What are we planning to do for the customer?” “What is the value of that to our customer?” What customer needs does the product satisfy? Nutrition Convenience Refreshment Hope Financial security

17. Sales-target Objectives “What are we planning to do for ourselves?” Specific, quantitative, realistic marketing goals to be achieved within a period of time. Total sales volume Sales volume by product, market segment, customer type Market share Growth rate Gross profit

18. Step 3: Marketing Strategy The statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company – the how-to of the marketing plan – and is determined by the blend of the marketing mix elements (the 4Ps) that the company can control Three Steps: Defining the target markets Determining the strategic positioning Developing an appropriate mix for each market

19. Selecting the Target Markets GAP photo: nitrolicious.com GAP logo: fashionista.com ON logo: busymom.net ON photo: reviewretreat.com BR photo: smartcanucks.ca BR logo: gogetglasses.com

20. Positioning the Product Positioning: the association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer. In the fast food world, Subway positions itself as the healthy chain with a customizable menu.

21. 7 Positioning Strategies PRODUCT ATTRIBUTE: Stress a particular product feature important to consumers. (Ben & Jerry’s) PRICE/QUALITY: Position on the basis of price or quality. (Old Navy) USE/APPLICATION: Position based on how the product is used. (Arm & Hammer Baking Soda) PRODUCT CLASS: Position against other products that, though not the same, offer the same class of benefits. (Dodge Ram v. Ford F-150) PRODUCT USER: Position with the group who uses the product. (Viagra, LEGO) PRODUCT COMPETITOR: Position against competitors to define the brand. (AT&T v. Verizon) CULTURAL SYMBOL: Position through the creation or use of some recognized symbol or icon. (Coca-Cola, Apple)

22. Product Price Place Promotion Selecting the Marketing Mix Determine a cost-effective marketing mix for each target market Each choice depends on: Product’s target market Its position in the market Stage in the product life cycle

23. Marketing Mix (MarketingTeacher.com) Product Price Place Promotion Search results available on the world’s leading search engine through Google AdWords. Self-service via the world wide web. Advertisers bid for keywords. The more valuable the keyword, the higher the price. Google uses AdWords. B2B magazine ads. Display ads online.

24. Top-down case study: Mountain Dew First Mountain Dew TV ad: http://www.youtube.com/watch?v=4xd8fzk8Rlk Early Mountain Dew billboard Photo: rustbot82.blogspot.com

25. Analysis leads to new positioning In the 1970’s Mountain Dew repositioned its product as a high-energy, youth-oriented, citrus-flavored soft drink. Mountain Dew commercial, 1981 http://www.youtube.com/watch?v=FGhpvtHOumo Mountain Dew commercial, 1997 http://www.youtube.com/watch?v=8usF-CzymY4 Ad: asweetlife.org

26. Marketing objectives Sales-target objectives: Increased case volume Increased share of market Growth Share of growth Need-satisfying objectives: Refreshment Energy Big flavor

27. Marketing Strategy Target market: Active, street-smart teenagers and 20-39 year olds, especially males. Positioning (per Pepsico): Mountain Dew is the great-tasting soft drink that exhilarates like no other because it is energizing, thirst quenching, and has a unique citrus flavor. Photo: flickr.com

28. Marketing Mix: Product, Price, Place Product: Original formula plus diet and several other flavors, including some chosen by consumers (Dewmocracy). Some products also retailer specific (Taco Bell, 7-Eleven). Price: Competitively priced with other soft drinks. Place: Available throughout the United States. Decaffeinated version available in limited other countries. Photo: theconsumerscorner.net

29. Promotion: Web Site, Green Label Art Green label art commercial: http://www.youtube.com/watch?v=PSK7tsYHMM4

30. Promotion: Sports Sponsorships Mountain Dew was a sponsor of the first X Games in 1995 and has been prevalent in action sports since then. AMP #88 in NASCAR Dew Tour

31. Promotion: Gaming Halo 3 Game Fuel ad: http://www.youtube.com/watch?v=uO-J5ImDEi8 World of Warcraft Game Fuel print ad Product placement in Metal Gear Solid: Peace Walker WOW Photo: besportier.com MGS Photo: giantbomb.com

32. Promotion: Events Traveling promotional trailer Virtual event Photo: xfire.com

33. Marketing Results Marketing Strategy BOTTOM-UP MARKETING How small companies work… and some big ones. Marketing Tactics

34. RELATIONSHIP MARKETING Customers, not products, are the focus Keys to Building Brand Equity Know that the customer has choices Market relationships, not transactions

35. The Importance of Relationships Value of loyal customers Cost of lost customers (LTCV) Cost of acquiring new customers How much does it cost to lose a customer to poor service or product disappointment? It costs 5-8x more to acquire a new customer as it does to keep a loyal one. Company’s first market. 90% of profits come from repeat purchasers.

36. Levels of Relationships Company works continuously with customers to deliver better value. Partnership Company contacts customers occasionally with suggestions or new products. Proactive Company contacts customers shortly after sale for feedback, suggestions. Accountable Company asks customers to contact them if any problems with the product or service. Reactive Transactional(Basic) Company sells the product but does not follow up in any way.

37. Levels of Relationships Profit Margins # of Customers

38. Relationship Marketing  IMC Integrated Marketing Communications (IMC): Centers around relationships with customers & potential customers (touchpoints) Means a coordinated, strategic communications program where each element reinforces the other elements

39. Integrated Marketing Communications Endcap: arman.wordpress.com Event: nol.google.com Print/mobile ad: techielobang.com Facebook: insidefacebook.com Employee: guardian.co.uk

40. IMC: 4 Sources of Brand Messages Planned Product Service Unplanned

41. Say Planned messages Do Confirm Product & servicemessages Unplanned messages IMC: The Integration Triangle

42. IMC: 3 Dimensions