Preparing a Marketing Plan 1. Situational Analysis a. Porters five forces - Industry level analysis [Enter/Exit the industry] b.

PEST Political, Economic, Social & Technology Entering into an industry/state/country new prod c. SWOT Strengths, Weaknesses, Opportunities, Threats Useful for mkt expansion + diversification d. 3 Ways a company can grow increasing market space, integrating growth (forward/backward) e.g. Reliance from cloth to petrochem backward; diversification (entering different business) e. BCG matrix Use in case of diversification. Which business to continue, which one to close f. 5Cs Use for any marketing decision 2. Give more than three options to choose a solution 3. Values a. Target market - Needs & wants of target market + wants of organization b. Total Customer Value i. Perceived benefits (product value, service value, personnel value, image value) perceived costs (time, psychological, opp cost, energy cost) ii. E.g. use of branding is the increase in psychological value for a customer c. Customer lifetime value: Generating repeat customers (loyalty). Useful to know whom to target 4. Attributes/Beliefs Segment 1 Segment 2 Attribute 1 X Ok a. Will help us to identify that segment which fits our criteria perfectly. Use in conjunction with segmentation to identify the correct segment 5. Segmentation (S/T/P) a. Identify a set of customers who increase our profitability. Based on 5Cs decide on segmentation (i.e. do we have money incur costs etc.) b. Segments should be: Accessible, Measureable, Identifiable, Sustainable, Homogenous demand c. Look at the five steps of Buyer behavior i. Problem recognition, Information search, Evaluation of alternatives [Points of parity (compare two products), Points of differentiation], Purchase decision, Post purchase behavior d. When you are trying to differentiate our product then choose criteria that matter to the customer e. Buying center or Decision Making Unit i. Identify which person to go after E.g. RekaCem case (who is the customer/consumer?) ii. Initiator (e.g. child buying an ice cream), influencer (mother influences the decision), Decider (child makes the decision), buyers(father moots the bill), end user (child), gatekeepers (e.g. officers peon) 6. Targeting (S/T/P) a. We mix our 4Ps to make an offering that best fits ours and customers value maximization b. Price: Skimming High initial prices (Apples initial high charges), Loss leadership, price cut (never attempt this because it will lead to price wars and bleeding), dynamic, static, premium. c. Place: Find a distribution system (depends on segment). E.g. super market etc. d. Product: i. Product life cycle [PLC] - Introduction, Growth, Maturity, Decline ii. Based on where your product is you decide on how much to invest in promotion iii. Identify Brand extension: Same product different pack sizes or Line extension: Increase product in other segments. E.g. Dettol to Sanitizer, soaps etc. 1. Fit with existing product and brand important for this decision e. Promotion: i. 5M: Mission (e.g. Vodafone promoting VAS services), Message (ZooZoo Ads), Medium (Print/TV), Money (how much to spend), Measure (Procedure to measure success) ii. Push strategy: Push sales using sales teams. Force people to buy iii. Pull strategy: Pull people to your products (e.g. Apple phones etc.) iv. Generally we use a mix of Push and pull strategies f. 4 New Ps (Use 2) Service marketing i. People: Moment of truth (MOT) when customers meet service & people ii. Process: How is the work happening? iii. Program & Performance can be ignored 7. Positioning (S/T/P) a. Create an image in the mind of the customer (e.g. Xerox for copiers) b. Use an attribute as an anchor. Customer will decide this

Porters five forces 1. Entry barriers / Threat of new entrants 2. Bargaining power of customers 3. Bargaining power of suppliers 4. Threat of substitutes 5. Competitive rivalry 5C Analysis 1. Company Evaluation of companys objectives, position, performance and product line 2. Competitors Identify competitors, assessment of competitors, predict future initiatives of them 3. Customers Identify possible customers. Demographics, market size, customer wants & needs, motivation, distribution channels, quantity of frequency of purchase, income level of customers etc 4. Collaborators Agencies (middlemen), Suppliers of raw material (manufacturers, retailers, merchants, etc.), Distributors, Partnerships (who share assets and liabilities) 5. Climate PEST analysis Perceived customer value 1. Total Customer benefit : Product value, services value, personnel value, image value 2. Total customer loss : Monetary cost, time cost, energy cost, psychic cost Porters generic strategies Target Low Cost Scope\Advantage Broad (industry Cost leadership strategy wide) 1. Appeal to cost conscious customers 2. Have the lowest prices in the mkt or lowest price/value ratio 3. Company can compete in the broad scope Product Uniqueness Differentiation strategy 1. Differentiate the product in some way to compete effectively 2. Appropriate when tgt segment is not price sensitive. Customers have specific needs that are not served 3. Company has unique resources Focus strategy (differentiation) 1. Differentiate 2. Focus on few target markets

Narrow (market segment)

Focus strategy (low cost) 1. Focus on few target markets 2. Follow cost leadership strategy

Important points: 1. Do number work 2. Keep break-even analysis, profit analysis in mind, profit equation = $0 3. Variable costs vs. fixed costs. Market share break-even: Break even / Market size. Is it achievable? 4. Mark-up = (Retail Price Wholesale Price) / Wholesale Price. Wholesale price = Retail price / (1+ Markup) 5. Use topline and bottom line AIDA model - Awareness, Interest, Desire and action. This is how advertisement works in consumers' mind. In above mentioned sequence VALS Framework: Its an important means of segmentation that we may not be familiar with.Its not based on demographics but on behavior. 1. Innovators: Successful, sophisticated, active people with high self-esteem and highest incomes. They prefer relatively upscale, nicheoriented products and services. 2. Thinkers: Mature, satisfied and reflective people who are idealistic and value order, knowledge and responsibility a lot. They seek durability, functionality and value in products. 3. Achievers: Goal-oriented people who focus on career and family. They favor products that demonstrate success to their peers. 4. Experiencers: Young, enthusiastic, impulsive people who seek variety and excitement. They spend more on fashion, entertainment and socializing. The four groups of consumers with lower resources and motivation are: 1. Believers: Conservative and traditional people with concrete beliefs. They prefer familiar products and are loyal to established brands. 2. Strivers: Trendy and fun-loving people who are resource-oriented. They favour stylish products that emulate the purchases of those with greater material wealth. 3. Makers: Practical, down-to-earth, self-sufficient people who like to work with their hands and like products with a practical/functional purpose. 4. Survivors: Elderly, passive people who are concerned about change. They are loyal to their favorite brands.