Marketing Plan

How to Answer?

*Expected questions:

1-Design a marketing strategy/plan enable company to increase its market share world
wide? & discuss it?

2-Recommend segment which is suitable to your product? Which factors you used to
make segmentation?

3-Define marketing objective of the company?

4-Do brand positioning as premium? (mention how to modify marketing mix element to
apply this? prestigious profile of this product)

Answers:

By 3 steps: Concept

Application

Evaluation

*1, 2 & 3

1-Marketing Strategy: An organization's strategy that combines all of its marketing goals into one
comprehensive plan. A good marketing strategy should be drawn from market research and focus on
the right product mix in order to achieve the maximum profit potential and sustain the business. The
marketing strategy is the foundation of a marketing plan.

*Marketing Plan:
1. Executive Summary
2. Situation Analysis Macro, Micro and Financial analysis "Summary from Strategy
formulation"
3. Marketing Annual Objectives
4. Marketing Strategy
A- Competitive: -
i- Cost leadership (High demand, Economy of scale), need less skill in marketing.
EX: According to financial analysis, Cost leadership to achieve lowest
production and distribution costs that can underprice competitors and win market
share
ii- Differentiation (Using competitive advantage), seek quality leadership and
effectively communicate their quality
iii- Focus (Niche) (Localized Differentiation), business focuses on one or more narrow
profitable market segment
B- Growth (Ansoff): -
i- Market penetration: (convert non-user to user, Increase the consumption of actual
users)
ii- Product development: Partial or complete development of new product
iii- New Market Development: (New Geographic coverage,
Globalization)
iv- Diversification: (Related or Unrelated)
5- Segmentation, Targeting, Positioning (STP)
6- Marketing Mix: - 4 Ps (Product, Place, Price, Promotion) + other 3 (People, process &
physical evidence :tangible part of intangible services)
1- Executive Summary: What should be included in the summary?
Write the executive summary after you have completely written your marketing plan. It will contain
an overview of the entire marketing plan, which allows you the ability to focus your ideas and
concepts in a short summary. Nonetheless, there are several key elements that should be included.
They are:
 Market Overview
 Competitive Overview
 Product Overview
 Goals and Objectives
 Strategies
 Action Plan and Implementation Schedule
 Evaluation Methods

2- Situation Analysis "Summary from Strategy formulation": SWOT, PESTEL, IE matrix,

Space matrix, BCG (Will take copy paste summary of strategy formulation

3- Marketing Annual Objectives

The first market objective a company may define for a particular overseas market is which market
segment(s) should the firm focus its limited resources on.

This targeting is required because companies usually cannot satisfy the needs and requirements of
each segment equally well. From an examination of these different needs, it will become apparent
which products and services within the company’s portfolio will be the most attractive to these market
segments.

The company can also define its objectives in terms of how its market share after a given time will
compare to its competitors, for example:
 Market leader
 Market follower, etc.

A key consideration is where can the company’s marketing effort yield the greatest return? In other
words, where is Return-On-Investment (ROI) highest?

The company should define its market objectives, in line with the key issues for international
expansion, as identified in section 3.0 Situation Analysis. Often, objectives will be defined in terms of
quantity (volume of units) or value ($) of goods sold over a given time period.

Financial objectives follow from the above analysis. Marketing programs must ultimately be funded
from cash flow generated within the market, with profits being used by the company for:
 Repatriation to shareholders
 Funding further growth
 etc.

A number of profit analyses can be used:

 Contribution analysis
 Break-even analysis
 ROI analysis, etc.

All of these analyses (quantity/value objectives, profitability objectives) should have a time frame:
Short-term (1 - 3 years)
Long-term (4 - 5 years and longer)

Objectives should be measurable wherever possible.

Corporate marketing objectives may be expressed in terms of:

Profitability
 ROI
Growth
Earnings per share
Survival

Sales and Marketing objectives (Examples):

1-Increase Profitability by 15% at end of year 2017
2-Increase sales 20% at end of year 2017
3-Increase Market share 10% by end of 2017
4-Increase (4-6) new outlets "according to financial situation" and re-arrange its
distributed network to widen brand coverage & customer accessibility
5- To be the leading global supplier of healthy fruit drink (Specific) for children 2004 (Time) with market share
of 15% (Measurable, Relevant, Achievable).
6- To increase the percentage of enquiries converted to orders from 15% to 20% of the total supplied by the
telesales team by the end of March 2001.
7- To achieve a sales level of 350000 L.E from new contracts over the next 12 months.

4-Marketing Strategy

A-Business Strategy using Porter's Generic Strategies:

Type of strategies Ways to achieve the strategy Benefits Possible problems

Cost Leadership Size and economies of scale Globalization The ability to: Vulnerability to even lower cost
Relocating to low-cost parts of the world outperform rivals operators
Modification/simplification of designs erect barriers to entry Possible price wars
Greater labor effectiveness resist the five forces The difficulty of sustaining it in the long
Greater operating effectiveness term
Strategic alliances
New source of supply

Focus Concentration upon on or a small number A more detailed Limited opportunities for sector growth
of a strong and specialist reputation understanding of particular The possibility of outgrowing the market
segments The decline of the sector
The creation of barriers to A reputation for specialization which
entry ultimately inhibits growth and
A reputation for development into other sectors
specialization
The ability to concentrate
efforts
Differentiation The creation of strong brand identities A distancing from others in The difficulties of sustaining the bases
The consistent pursuit of pursuit of those the market for differentiation
factors which customers perceive to be The creation of a major Possibly higher costs
important competitive advantage The difficulty of achieving true and
High performance in one or more of a Flexibility meaningful differentiation
spectrum of activities

B- Ansoff’s Matrix: (Company's growth path to build Demand)

Products
Markets Existing Modified New
Existing Sell more of our Modify our current Design new
existing products to products and sell products that will
our existing types of more of them to our appeal to our
customers. (Market existing customers. existing customers.
penetration) (Product (New product
modification) development)
Markets Enter and sell our Offer and sell Design new
Modified products in other modified products to products for
geographical areas. new geographical prospects in new
 (Geographical markets. geographic areas.
expansion)
New Sell our existing Offer and sell Design new
products to new modified products to products to sell to
types of customers. new types of new types of
(Segment invasion) customers. customers.
(Diversification)

5- Segmentation, Targeting, Positioning (STP)

1- Market segmentation:
Division of market into groups of buyers who have different needs, characteristics, behavior or might
acquire separate product
Steps of Segmentation:
1- Identify bases "Variables" for segmenting the market
2- Develop segment profiles "Results"
Levels of Market Segmentation
 Mass marketing (shotgun)
 Segment marketing; different marketing programs for different segments (rifle)
 Niche marketing

Segmentation will be based on the following: -

Geographic
Region - County size - City size – Density - Climate
Demographic
Age - Gender Male/female or both Female for makeup, jewels – Income – Education - Family life
style ((Example: - people who prefer Jeep Cherokee for outdoor, adventure-some and fun)) - Social
class - Real State Compound, clubs
Psychographic
Social Class – Lifestyle - Personality
Behavioral
Benefits expectation - Brand loyalty - Price sensitivity
After segmenting market into groups then create profile for each group according to behaviors,
preferences, demographics, shopping styles Evaluate each market according to size, growth rates,
price sensitivity, brand loyalty and check which segment group is or are attractive to work on
2- Targeting:

Next, you decide which segments to target by finding the most attractive ones. There are several
factors to consider here: -
Which segment is profitable?
Size and potential growth of each segment
If there any barriers to serve any group, conduct PEST analysis to understand the opportunities and
threats that might affect each segment
Evaluating each segment`s attractiveness and selecting one or more segments to enter.

Steps of Targeting:

1- Evaluation of segment attractiveness

2- Select target segments

 Mass marketing (undifferentiated): The same offer with the advantage of economies of scale (The
firm tries to reach a wide range of consumers with one basic marketing mix).
 Segment (differentiated) marketing: Several segments with offer for each.
 Concentrated (niche) marketing: Target Singles with a single marketing mix (The major
disadvantage is reliance on a single segment of a single market, On the other hand Specialization
in a particular market segment can give a firm a profitable competitive edge over rivals).
 Local marketing: Tailoring products for the local customer group needs
 Customization: Tailoring products for the small group of people or specific individual's needs.
Five patterns of Target Market Selection:

 Single Segment Concentration (Targeting one single segment with one product)
 Selective Specialization (Targeting different segments in different markets with different
products)
 Product Specialization (Targeting with one product in different market segments)
 Market Specialization (Targeting one market segment with different products)
 Full market coverage (Targeting the whole market segments with the whole pipelines)
 3- Positioning
: Arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers. (Is how the customer perceives the
product or the service)
We need for repositioning due to: -
Current position became very competitive Change in customer needs
Your goal is to identify how you can position your product to target the most valuable customer
segments, this is achieved by being perceived by consumers as: -

Steps of Positioning:
1- Develop positioning for target segments
2- Select and develop a marketing mix and positioning concept for each segment

Begin by the differentiating the company’s marketing offer that will deliver more value than the
competitors thus gaining competitive advantage(Perceptual map – Positional Map: Price & Quality)

Choose a broad positioning for the product

 Become best at one of the three value disciplines. (Operational Excellence – Product Leadership
and Customer Intimancy)
 Achieve an adequate performance level in the other two disciplines.
 Keep improving one’s superior position in the chosen discipline so as not to lose out to a
competitor.
 Keep becoming more adequate in the other two disciplines, since competitors keep raising
customers’ expectations about what is adequate.

Choose a specific poisoning for the product

 Best quality
 Best performance
 Most reliable
 Most durable
 Safest
 Fastest
 Best value for the money
 Least expensive
 Most prestigious
 Best designed or styled
 Easiest to use
 Most convenient

Choose a value poisoning for the product

 More for More
 More for the Same
 The Same for Less
 Less for Much Less
 More for Less

Repositioning:
Repositioning is made for some reasons:
- The current position may become a very competitive.
- Trying to show that products are fashionable and of higher quality.
- Change in customer needs.

6- Marketing Mix (4 Ps)

By using 4P’s tools to implement the marketing strategy include(product, price, promotion and
place)
The Marketing Mix principles are based on controllable variables which can be used by companies to
meet the changing needs of the target group. Typical controllable variables are product variety,
quality, list price advertising and channels. The function on the model is useful helping companies to
develop an optimal package (mix) of variables that will not only satisfy the needs of their customers
within the target markets, but also simultaneously maximize the performance and profit of the
 company

4Ps Component Customer Perspective

(4Cs)
Product Quality, Design, performance , availability , value , Customer Solution
packaging, Features, Brand name , Sizes , Services ,
Warranties , Returns

Price List price , Discounts, Payment period (B2B), Credit Cost

terms (Credit Cards, B2B) , strategies

Channels ( direct or indirect [ retailers & wholesalers ]

Place ), Convenience
Coverage, Assortments, Location, Inventory,
Transport (
trucks ( full container load or less container load)) ,
Strategy ( intensive , selective , exclusive )

Promotion Ad ,Mass media , Sales Promotion, Direct Marketing Communication

“SMS” ,Personal Selling , public relations ,
Process Whole manufacturing process Coordination
People Employees Consideration
Physical evidence Tangible part of intangible services Confirmation
________________________________________________
*4

Product
1- The features and image of prestigious products is unique and the quality of these products is one of
the main reasons for such high sales
2- The designs are innovative and the precise use of technology has made the finished products very
attractive and sophisticated
3- refined and elegant

Place
1- Distribution channels is very selective making the customers feel special
2- All its stores are located in expensive and high profile street locations that are exclusive and
distinguished
3- The décor of every outlet is unique with classic tastes 4- sales persons are dressed smartly in all
black.

Price
1- mostly gone with a policy of premium pricing because its product quality is very superior
2- High prices are not a problem with such goods that are unique in style, quality and designs as they
are made for wealthy clients
3- The company does not compromise with the standards of quality and hence major cost cutting in
their prices is not possible.
4- In order to increase its revenues, the company has followed the policy of diversifying the various
products and brands and under this, they have tried to keep a reasonable pricing policy as well as
premium policy of prices.

Promotion
1- In order to create a special and separate entity for itself the company went for high
investments in the advertising area
2- Use celebrities on their ads
 ______________________________________________
5- What is the tactics or strategies steps should be taken for organic growth?
Or Select strategy to maximize growth?
Organic growth (healthy): 1- Mass production
2- market development
3- product development new products new branches
Inorganic: (loan, acquisition, merge)
______________________________________________

Budgeting

Approaches:
1. Top down: Budgets are prepared by top management and imposed on the lower layers of the
organization. Top down budgets clearly express the performance goals and expectations of
top management, but can be unrealistic because they do not incorporate the input of the very
people who implement them.
2. Bottom up: Supervisors and middle managers prepare the budgets and then forward them up
the chain of command for review and approval. These budgets tend to be more accurate and
can have a positive impact on employee morale because employees assume an active role in
providing financial input to the budgeting process.
3. Zero-based budgeting: Each manager prepares estimates of his or her proposed expenses
for a specific period of time as though they were being performed for the first time. In other
words, each activity starts from a budget base of zero. By starting from scratch at each
budget cycle, managers are required to take a close look at all their expenses and justify them
to top management, thereby minimizing waste.

When your expenditures exceed the limit, you can do several things to get
back on track:
1. Review your budget. Before you do anything else, take a close look at your budget and make
sure that the assumptions on which it is based are accurate and make sense in your changing
market. If your market is growing quickly, you may need to adjust up your estimates.
Sometimes, it’s the budget — not the spending — that is out of line.
2. Freeze spending. One of the quickest and most effective ways to bring spending back in line
with a budget is to freeze expenses such as pay raises, new staff, and bonuses.
3. Postpone new projects. New projects, including new product development, acquisition of new
facilities, and research and development, can eat up a lot of money. However, if you are too
zealous in curbing spending when you need to develop new products or services to compete,
 the result can be disastrous for the future growth and prosperity of the company.
4. Lay off employees and close facilities. This is the last resort when you’re trying to cut
expenses. Although these actions will result in an immediate and lasting decrease in expenses,
you also face an immediate and lasting decrease in the talent available to your organization.
Productivity and morale of remaining employees may also suffer.