What is Marketing Plan? What are the key points to remind you when you are designing a marketing plan? How marketing plan is developed? Examples of a marketing plan? Marketing plan templates, Marketing business plan? Marketing Strategy? Marketing Plan Strategy?
Whenever you are making a marketing plan for an organization this is some questions arise in your mind how a marketing plan is designed? What is the marketing plan?.
Here is the answer to your question on my other blog which is related to marketing business?
MBA in Marketing, books of Philip Kotler
I'm making my career in Marketing and for that purpose, I want to gather all contents, theory, concepts of Marketing in one place. This blog will help me out in my study and if in the future I have to revise any concept of Marketing then I can go through all that information with my own blog and it might help out others as well in their study.
This blog provides all relevant information about Marketing and its basic concept.
8P of Service Marketing
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| http://marketingbasicconcept.blogspot.com/,Marketing information,Service Marketing |
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| http://marketingbasicconcept.blogspot.com/,Marketing information,Service Marketing |
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| http://marketingbasicconcept.blogspot.com/,Marketing information,Service Marketing |
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| http://marketingbasicconcept.blogspot.com/,Marketing information |
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| http://marketingbasicconcept.blogspot.com/,Marketing information |
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| http://marketingbasicconcept.blogspot.com/,Marketing information |
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| http://marketingbasicconcept.blogspot.com/,Marketing information |
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| http://marketingbasicconcept.blogspot.com/,Marketing information |
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| http://marketingbasicconcept.blogspot.com/,Marketing information/Marketing Mix |
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| http://marketingbasicconcept.blogspot.com/,Marketing information/Value chain Analysis |
Link to philip kotler books
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Customer Life Cycle
How to acquire the potential customer?
How to develop relationship with the customer?
How to retain the customer?
How to inspire the new customer?
The customer life cycle revolve around the customer needs,wants,satisfaction. How the firm response to the behavior of
Marketing Mix
The basic concept of marketing is Marketing Mix.
By the help of marketing mix one should determine that how to market the product and the launching procedure.
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| Marketing Mix diagram,Marketing Concept,marketingconcept.blogspot.com |
Marketing Mix
The basic concept of marketing is Marketing Mix.
By the help of marketing mix one should determine that how to market the product and the launching procedure.
|
| Marketing Mix diagram,Marketing Concept,marketingconcept.blogspot.com |
Marketing Mix
The basic concept of marketing is Marketing Mix.
By the help of marketing mix one should determine that how to market the product and the launching procedure.
|
| Marketing Mix diagram,Marketing Concept,marketingconcept.blogspot.com |
Marketing Mix
The basic concept of marketing is Marketing Mix.
By the help of marketing mix one should determine that how to market the product and the launching procedure.
|
| Marketing Mix diagram,Marketing Concept,marketingconcept.blogspot.com |
Core Marketing Concepts
Core marketing concepts depends on the needs,wants and demands of the consumer after that producer produce the product and deliver the product to consumer by satisfying their wants,create value,maintain quality for long term relationship. In exchange the producer make profit and try to capture market.
I. Executive Summary
A high-level summary of the marketing plan.II. The Challenge
Brief description of product to be marketed and associated goals, such as sales figures and strategic goals.III. Situation Analysis
Company Analysis- Goals
- Focus
- Culture
- Strengths
- Weaknesses
- Market share
- Number
- Type
- Value drivers
- Decision process
- Concentration of customer base for particular products
- Market position
- Strengths
- Weaknesses
- Market shares
- Subsidiaries, joint ventures, and distributors, etc.
Macro-environmental PEST analysis :
- Political and legal environment
- Economic environment
- Social and cultural environment
- Technological environment
A SWOT analysis of the business environment can be performed by organizing the environmental factors as follows:
- The firm's internal attributes can be classed as strengths and weaknesses.
- The external environment presents opportunities and threats.
IV. Market Segmentation
Present a description of the market segmentation as follows:Segment 1
- Description
- Percent of sales
- What they want
- How they use product
- Support requirements
- How to reach them
- Price sensitivity
Segment 2
.
.
.
V. Alternative Marketing Strategies
List and discuss the alternatives that were considered before arriving at the recommended strategy. Alternatives might include discontinuing a product, re-branding, positioning as a premium or value product, etc.VI. Selected Marketing Strategy
Discuss why the strategy was selected, then the marketing mix decisions (4 P's) of product, price, place (distribution), and promotion.Product
The product decisions should consider the product's advantages and how they will be leveraged. Product decisions should include:- Brand name
- Quality
- Scope of product line
- Warranty
- Packaging
Price
Discuss pricing strategy, expected volume, and decisions for the following pricing variables:- List price
- Discounts
- Bundling
- Payment terms and financing options
- Leasing options
Distribution (Place)
Decision variables include:- Distribution channels, such as direct, retail, distributors & intermediates
- Motivating the channel - for example, distributor margins
- Criteria for evaluating distributors
- Locations
- Logistics, including transportation, warehousing, and order fulfilment
Promotion
- Advertising, including how much and which media.
- Public relations
- Promotional programs
- Budget; determine break-even point for any additional spending
- Projected results of the promotional programs
VII. Short & Long-Term Projections
The selected strategy's immediate effects, expected long-term results, and any special actions required to achieve them. This section may include forecasts of revenues and expenses as well as the results of a break-even analysis.VIII. Conclusion
Summarize all of the above.Appendix
Exhibits Calculations of market size, commissions, profit margins, break-even analyses, etc.
The division of a market into different homogeneous groups of consumers is known as market segmentation.
Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ.
A market segment should be:
- measurable
- accessible by communication and distribution channels
- different in its response to a marketing mix
- durable (not changing too quickly)
- substantial enough to be profitable
Consumer Market Segmentation
A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:- Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.
- Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.
- Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.
- Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.
Business Market Segmentation
While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:- Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.
- Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.
- Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.
Profiling the Segments
The identified market segments are summarized by profiles, often given a descriptive name. From these profiles, the attractiveness of each segment can be evaluated and a target market segment selected.The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market.
The Case of Barco
In late 1989, Barco N.V.'s projection systems division was faced with Sony's surprise introduction of a better graphics projector. Barco had been perceived as a leader, introducing high quality products first and targeting a niche market that was willing to pay a higher price. Being a smaller company, Barco could not compete on price, so it traditionally pursued a skimming strategy in the graphics projector market, where it had a 55% market share of the small market. Barco's overall market share for all types of projectors was only 4%.
Even though Barco's market was mainly in graphics projectors, the company had not introduced a new graphics projector in over two years. Instead, it was spending a large portion of its R&D budget on video projector products. However, video projectors were not Barco's market.
Barco's engineers had been working long hours on their new projector that would not be as good as Sony's. Some people thought they should not stop work on that product since the engineers' morale would suffer after being told how important it was to work hard to get the product out. However, even considering the morale of the product team, it would not have been a good idea to introduce a product that was inferior to that of Sony. Barco wisely stopped working on the inferior product and put a major effort in developing a projector that outperformed Sony's.
The Barco case illustrates several marketing strategy concepts:
- Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to be the first to introduce a product with very good performance, selling it to the innovator market segment and charging a premium price for it. It makes as much profit as possible, then moves on when the competition arrives. The price is likely to fall over time as competition is encountered. Such a skimming strategy contrasts with a penetrating strategy, which seeks to gain market share by sacrificing short-term profits, and increasing the price over time as market share is gained.
- Competitors have certain strengths and abilities. To succeed, a firm must leverage its own unique abilities.
- A firm should prepare defensive strategies before potential
threats arrive. If the competition surprises a firm with the
introduction of a vastly superior product, the firm should resist the
temptation to proceed with its mediocre product. A firm never should
introduce a product that is obsolete when it hits the market.
- The competition's probable response to a firm's actions should be considered carefully.
Marketing Research for Strategic Decision Making The two most common uses of marketing research are for diagnostic analysis to understand the market and the firm's current performance, and opportunity analysis to define any unexploited opportunities for growth. Marketing research studies include consumer studies, distribution studies, semantic scaling, multidimensional scaling, intelligence studies, projections, and conjoint analysis. A few of these are outlined below.
- Semantic scaling: a very simple rating of how consumers perceive the physical attributes of a product, and what the ideal values of those attributes would be. Semantic scaling is not very accurate since the consumers are polled according to an ordinal ranking so mathematical averaging is not possible. For example, 8 is not necessarily twice as much as 4 in an ordinal ranking system. Furthermore, each person uses the scale differently.
- Multidimensional scaling (MDS) addresses the problems associated with semantic scaling by polling the consumer for pair-wise comparisons between products or between one product and the ideal. The assumption is that while people cannot report reliably which attributes drive their choices, they can report perceptions of similarities between brands. However, MDS analyses do not indicate the relative importance between attributes.
- Conjoint analysis infers the relative importance of attributes by presenting consumers with a set of features of two hypothetical products and asking them which product they prefer. This question is repeated over several sets of attribute values. The results allow one to predict which attributes are the more important, the combination of attribute values that is the most preferred. From this information, the expected market share of a given design can be estimated.
Multi-Product Resource Allocation The most common resource allocation methods are:
- Percentage of sales
- Executive judgement
- All-you-can-afford
- Match competitors
- Last year based
What would sales be with:
- no sales force
- half the current effort
- 50% greater effort
- a saturation level of effort.
Decision algorithms that result in extreme solutions, such as allocating most of the sales force to one product while neglecting another product often do not yield practical solutions.
For mature products, sales increase very little as a function of advertising expenditures. For newer products however, there is a very positive correlation.
Portfolio models may be used to allocate resources among major product lines or business units. The BCG growth-share matrix is one such model.
New Product Diffusion Curve
As a new product diffuses into the market, some types of consumers such as innovators and early adopters buy the product before other consumers. The product adoption follows a trajectory that is shaped like a bell curve and is known as the product diffusion curve. The marketing strategy should take this adoption curve into account and address factors that influence the rate of adoption by the different types of consumers.
Dynamic Product Management Strategies
Two fundamental issues of product management are whether to pioneer or follow, and how to manage the product over its life cycle.
Order of market entry is very important. In fact, the forecasted market share relative to the pioneering brand is the pioneering brand's share divided by the square root of the order of entry. For example, the brand that entered third is forecasted to have 1/√3 times the market share of the first entrant (Marketing Science, Vol. 14, No. 3, Part 2 of 2, 1995.) This rule was determined empirically.
The pioneering advantage is obtained from both the supply and demand side. From the supply side, there are raw material advantages, better experience effects to provide a cost advantage, and channel preemption. On the demand side, there is the advantage of familiarity, the chance to set a standard, and the choice of perceptual position.
Once a firm gains a pioneering advantage, it can maintain it by improving the product, creating a standard, advertise that it was the first, and introduce a new product in the market that may cannibalize the first but deter other firms from entering.
There also are disadvantages to being the pioneer. Being first allows a competitor to leapfrog the early technology. The incumbent develops inertia in its R&D and may not be a flexible as newcomers. Developing an industry has costs that the pioneer must bear alone, and the way the industry develops and its potential size are not deterministic.
There are four classic price/selling effort strategies:
| Selling Effort | Price | |
| Low | High | |
| Low | Necessity Goods | Classic Skim Strategy Vulnerable to new entrants |
| High |
Classic Penetration Strategy
|
Luxury Goods
|
In general, products are clustered in the low-low or high-high categories. If a product is in a mixed category, after introduction it will tend to move to the low-low or high-high one.
Increasing the breadth of the product line as several advantages. A firm can better serve multiple segments, it can occupy more of the distributors' shelf space, it offers customers a more complete selection, and it preempts competition. While a wider range of products will cause a firm to cannibalize some of its own sales, it is better to do so oneself rather than let the competition do so.
The drawbacks of broad product lines are reduced volume for each brand (cannibalization), greater manufacturing complexity, increased inventory, more management resources required, more advertising (or less per brand), clutter and confusion in advertising for both customers and distributors.
To increase profits from existing brands, a firm can improve its production efficiency, increase the demand through more users, more uses, and more usage. A firm also can defend its existing base through line extensions (expand on a current brand), flanker brands (new brands in an existing product area), and brand extensions.
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4 comments:
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