Understanding the Marketing Mix and Marketing Plan

1. Understanding the Marketing Mix and Marketing Plan

2. Marketing Mix • Every plan will be different because every business is different. • Decisions about the Marketing Mix – 4 P’s – is the foundation of a marketing plan. • Answers to these questions will be a guide to developing the actual Marketing Plan and Action Plans.

3. Product Decisions • Quantity? • Sizes? • Packaging? • Warranty? • Design and Image? • Logo/Slogan?

4. Price Decisions • Cost of goods to produce? • Markup? • Profit Margin? • Break-Even Point? • List price Vs. Selling Price? • Comparison with competitors?

5. Place Decisions • How/Where products will be sold? • Distribution & Logistics? • Warehousing? • Inventory? • Order Processing? • Delivery of Product?

6. Promotion Decisions • Advertising? • Sales Promotions? • Reward Programs? • Special Events? • Public Relations? • Customer Service/Return Policies?

7. What is a Marketing Plan? • Written document that defines the target market and describes the promotion and marketing efforts to achieve one or more marketing objectives for a specific time period. • Written each year but sometimes modified as the business’s progress and situations change. • Describes a business’ marketing objectives and the strategies and tactics to achieve them.

8. Parts of a Marketing Plan • Situation Analysis • Marketing Objectives • Marketing Strategies • Marketing Tactics • Action Plan • All marketing plans should include this basic information

9. Situation Analysis • Snapshot of the environment in which the business has been operating • Introductory statement • Target Market • Competition

10. Target Market • Define by using demographic, geographic, economic, behavioral, and psychographic information. • Estimate the total size of the target market. • Include information gained that describe market trends. • Describe factors that may affect purchasing – season, price, availability, emotions, services, etc.

11. Competition • List both direct and indirect competitors • Outline the product line and what they offer • Describe your business’ advantage • Explain why your product is different or better – more variety? Better pricing? Better sizing?

12. Marketing Objectives • The goals a business wants to achieve during a given time • Most have both corporate and marketing goals • May be short term – achieved in less than a year • May be long term – achieved in a year or more • All marketing objectives should be written as SMART goals

13. SMART Goals • S = Specific • M = Measurable • A = Attainable • R = Realistic • T = Timely

14. Marketing Strategies • Decisions made about product, price, place, and promotion • Outline of the who, what, when, where and how of the marketing process

15. Marketing Tactics • Specific activities to carry out the marketing strategies. • Every marketing strategy will have a set of tactics designed to accomplish it • Usually the longest section because it lists very specific activities

16. Action Plan • Time Line – lists when each activity starts and where it happens, the end date and who is responsible – also keeps business on track and keeps plan moving forward • Budget – costs to implement the marketing and promotional activities • Metrics – the way we measure the effectiveness of a project – marketing is very expensive so business’ want to make sure they have a return on their investment

17. Format the Marketing Plan • At some point, the marketing plan may be presented to investors and employees • Make sure it is well written and paragraphs fully explain the marketing plans • Grammatically correct, words appropriate and punctuation accurate • Exciting, enthusiastic and attractive • Unique – be creative