Market Planning

Marketing Strategies — Discussion Guide

Performance Indicator: Explain the concept of marketing strategies

Slide #2 Opening Discussion (Entry) THINK ABOUT IT

• Have you ever purchased a pack of gum in a checkout aisle? What about bought an extra pair of jeans because there was a “buy-one-get-one” sale?

  • It was no accident that the product was in the right place at the right time with the right message.

  • Marketers were planning your purchase long before you got to the store.

KEY CONCEPTS

Slide #3 Establish a Goal

• Marketing strategies begin when a group of marketers get together and set a goal.

• Before discussing how to get to their destination, marketers collaborate to determine where they want to go.

• This goal is determined collaboratively and is based on the company’s overall plan.

Slide #4 Marketing Strategies

• Marketers strive to get where they are going as efficiently as possible.

• Marketers create a plan of action, or strategy, to help them achieve their marketing goal.

• Tactics are specific, short-term actions that are used to carry out strategies.

Slide #5 Preparing Marketing Strategies

• Marketers must create a plan that is both thorough and flexible.

• Even if the goal never changes, strategies and tactics may need to be adjusted along the way.

• Prepare for the unknown by discussing alternative paths that can achieve the same goal.

• Each product requires a unique design and customized approach.

• Marketers put together a unique combination of the marketing mix for each project or product.

Discussion#1: Ask students to discuss what kinds of obstacles might cause marketers to adjust their strategies or adapt new tactics. Can they think of any solutions?

Slide #6-7 Marketing Mix

• The marketing mix is a combination of the four elements of marketing.

• Product is the good, service, or idea that a business will offer its customers.

  • Market research must be done to figure out what customers need and how to address those needs.

• Price is the amount of money a business asks for in exchange for its products.

  • Establishing a price is all about balancing customer value and satisfaction with company cost and profit.

• Place can make all the difference.

  • Place can overshadow product shortcomings or a high price if done well.

  • To some customers, convenience may be worth some added expense.

• The final element is promotion.

  • The ultimate goal of promotion is to generate a positive response from customers that leads them to buy the product.

• The elements of the marketing mix are interrelated.

  • A change to one element can significantly affect the others.

Discussion #2: How a change in place might affect the promotion of a product? How might it affect the price?

Discussion #3: Which Element in the marketing mix do you think is the most important and why?

Market Identification—Discussion Guide

Performance Indicator: Explain the concept of market and market identification

Slide #9 Opening Discussion (Entry) THINK ABOUT IT

• Choose a partner:

  • Identify as many things that you have in common in 60 seconds.

• People tend to have much more in common with one another than they might realize.

  • Why is this important to marketers?

    • This allows marketers to group people together.

    • Grouping is how marketers find their customers and figure out what needs they have.

    • Grouping also allows marketers to develop products that meet the needs of customers in these groups.

KEY CONCEPTS

Slide #10 What is a Market?

• In any business, a customer or potential customer who has a want or need that is unfulfilled and is financially able and willing to satisfy that desire is considered a market.

• Simply having a want or need is not enough; the customer must also have the ability and willingness to purchase a product to fulfill it.

• With proper market identification, the process by which marketers carefully determine which customers make up a market, a company can effectively market the right products to the right people.

Slide #11 Target Marketing

• Marketers split their customers into categories or groups according to what they have in common.

• Marketers then develop market strategies that will meet the needs of the smaller groups they’ve identified.

• Customers who have the same needs are considered to be in the same target market.

• The identification and selection of specific markets is called target marketing.

Discussion#1: Think about the different target markets you belong to. What target market would include the entire class? How could you split the class into tow target markets? What about 3?

Slide #12 Mass Marketing

• Mass marketing is a strategy in which marketers determine that their products will appeal to most buyers and then direct their marketing activities to the whole market.

• The goal of mass marketing is to appeal to many types of customers through one marketing plan.

• This strategy works particularly well when a product is first introduced, offers a limited number of features, or appeals to a wide variety of people.

• Mass marketing is more cost effective because the business only has to produce and market one version of a product.

• The downside is that not every product will appeal to large groups of people.

Slide #13 Market Segmentation

• Marketers often divide the total market for their products into smaller, more specific groups called market segments. This process is known as market segmentation.

• Rather than trying to direct marketing activities at the whole market, marketers plan their activities for specific, well-defined groups of customers.

• Marketers tailor their marketing mix (product, price, place, and promotion) to the segments they specifically target.

• Because today’s customers have access to a wide variety of products and seek ones that are specifically designed for their needs, market segmentation has become a very common practice.

Discussion #2: Think of a product that is marketed to multiple market segments. How do the marketing strategies differ based on which market segment is being targeted?

Slide #14 Types of Market Segmentation

• There are a number of ways that marketers determine and divide market segments.

• Demographic segmentation divides a market based on physical and social characteristics, such as:

  • Gender, heritage, religion, socioeconomic status, or life stage

• Geographic segmentation is used to identify customers from regions, states, cities, and even neighborhoods.

• Psychographic segmentation is based on lifestyle and personality.

Slide #15 Types of Behavioral Segmentation

• Behavioral segmentation groups customers based on their response to a product. The four types of behavioral segmentation are:

• Rate of use

  • Marketers tend to focus their strategies on the heavy and moderate users.

• Benefits derived

  • These customers might be looking for a product that serves as a status symbol or is known for its high quality.

• Loyalty response

  • Regardless of price, some people will only buy a certain brand of product, even if a similar product exists.

• Occasion response

  • Marketers have found, for example, that people will often pay much more for a wedding cake than a similar cake for a birthday party.

Discussion #3: Name a brand that has high customer loyalty. What makes the customers loyal? If those companies raised their prices, do yo think hey would lose loyal customers, why or why not?

Marketing Planning—Discussion Guide

Performance Indicator: Explain the nature of marketing planning

Slide #19 Opening Discussion (Entry) THINK ABOUT IT

Max is badly out of shape.

• He visits the gym with no set routine.

• He is disappointed because he hasn’t improved.

• He failed to set a fitness goal or a plan to achieve it.

• Businesses must also set goals and plan to achieve success.

KEY CONCEPTS

Slide #20 Marketing Planning is a Continuous Process

• Marketing planning helps an organization identify what it hopes to achieve and what its current situation is.

• Having a clear picture of its desired future and its current situation helps a company determine the “how”—what actions it must take to achieve success.

• Marketing planning is a continuous process in which marketers regularly select and improve the effectiveness of marketing objectives, policies, and procedures.

• Marketing planning helps a company make informed decisions, update goals, and regularly improve its marketing strategies.

Discussion #1: Share examples of marketing planning they have been involved with through student activities or work experiences.

Slide #21 Company Goals are Reviewed

• There are several elements of marketing planning.

• Company goals are reviewed.

  • These include the business’s organizational mission and any corporate objectives the organization plans to achieve within the next one to five years.

    • By keeping these long-range plans in view, marketers can avoid establishing goals that are not in alignment with the company’s main purpose and direction.

    • For example, if a company is planning to expand into foreign markets, the marketing of its products is going to be impacted in a big way.

Slide #22 Research is Conducted

• Marketers conduct research to identify customer needs and wants and appropriate target markets that will help achieve the company’s goals.

• Target markets are analyzed for opportunities and profitability.

• Marketers carefully study customers to determine who they are, what they buy, and how they feel about the company.

  • Data from CRM databases, customer surveys, and sales reports are some common ways that companies study their customer base.

• Marketers also study their competitors to discover potential weaknesses or strengths.

  • What is the competition known for—poor customer service or fantastic products?

Slide #23 Analysis

• Analysis is done in several ways.

  • SWOT analysis—a detailed look at a company’s strengths, weaknesses, opportunities, and threats—is essential.

  • A PEST analysis examines external influences that have a major impact on an organization and typically includes political, economic, sociocultural, and technological factors.

  • Additionally, the marketing mix—the four P’s—is put under a microscope to determine if the right product, price, place, and promotion is being used.

Slide #24 Implementation and Monitoring

• Marketing managers document expected costs to determine how much funding is needed to realize company goals.

• They also decide which individuals or departments will be responsible for achieving those goals.

• Lastly, managers acquire resources such as software programs, business services, equipment, or facilities that are needed to carry out the organization’s marketing objectives.

  • Marketing managers are also responsible for selecting monitoring strategies (planned techniques for measuring and documenting the success of a company’s marketing efforts).

  • Customer feedback, planned surveys, and analysis of customer data collected from company databases are common types of monitoring strategies.

  • Information obtained helps a company adjust marketing strategies, objectives, or even overall company goals.

  • For example, if a company discovers its customers prefer quality over price, marketing strategies using promotional discounts are likely to be closely reexamined and changed.

Discussion #2: Provide Examples of information that would cause a company to reexamine or change its marketing strategies.

Slide #25 Marketing Plan

• A marketing plan is developed by managers.

  • It is a written set of procedures or strategies for attracting the target customer to a business.

  • It is a detailed explanation of an organization’s specific marketing objectives and the procedures needed to implement them.

  • In other words, it is a map for where the business is going and how it plans to get there.

Slide #26 Benefits of Marketing Planning

• There are benefits gained from marketing planning.

Discussion #3: Give an example of a clear, realistic marketing goal.

• Marketing planning helps a company set clear, realistic goals.

• It also helps a company save time and money by preventing runaway projects and unnecessary marketing activities.

• Since marketing planning determines which individuals or departments are responsible for accomplishing company goals, employee accountability and performance improves.

• When monitoring strategies are implemented, a company can identify ineffective strategies and avoid making and/or repeating mistakes.

• Marketing planning also helps a company understand its target markets better and develop the most effective marketing techniques for reaching them.

• Most importantly, marketing planning provides a clear direction for everyone within the company—where they are going and what they should be doing to reach their goals.

Marketing Plans—Discussion Guide

Performance Indicator: Explain the nature of marketing plans

Slide #29 Opening Discussion (Entry) THINK ABOUT IT

• There’s an old saying that goes something like this: “Those who fail to plan, plan to fail.” Success is hard to achieve without putting in some thoughtful, careful planning. This fact is especially evident in the business world. Whether a business is just starting up or has been established for decades, it must have a marketing plan in place to succeed.

KEY CONCEPTS

Slide #30 Marketing Plans

• A marketing plan is a set of procedures or strategies for attracting the target customer to a business. There are three common reasons for preparing a marketing plan:

  • The marketing plan may be included as a part of the organization’s overall business plan.

  • The plan may be presented to upper management by the marketing team as a way to demonstrate and solidify its goals and strategies for the upcoming year.

  • The marketing plan may outline the company’s intentions for introducing a new product, entering a new target market, or trying a new marketing strategy.

Slide #31 Benefits of Marketing Plans

• Marketing plans can contribute to business success in a number of ways. Here are some specific benefits an organization can achieve through the process:

• Institutional memory—The marketing team can use its catalog of detailed marketing plans to build on its knowledge of the past to create ideas and plans for the future and avoid repeating mistakes.

• Better understanding of target markets—The level of research and detail required to write a marketing plan helps the marketing team know and understand its target markets.

• Setting goals—Writing a marketing plan forces the marketing team to set specific goals.

• More precise marketing strategies—A marketing plan provides clear guidance on what strategies should be used, when they should be implemented, and by whom.

• Obtaining funding—A marketing plan, as part of an overall business plan, is something that potential investors will want to see before deciding on whether or not to invest.

• Providing direction—Marketing plans provide clear direction for everyone in the organization, both inside and outside the marketing team.

• Tracking progress—A well-written marketing plan allows a business to track its progress in a measurable way.

Discussion #1: Ask students if they can think of any other benefits to having a complete marketing plan in place before beginning other aspects of the marketing process.

Slide #32 Marketing Plan Components

• Each organization crafts a marketing plan to respond to different target markets and a variety of types and numbers of products. Most marketing plans will include these components:

  • Executive summary

  • Situation analysis

  • Demographics of target market

  • Marketing objectives

  • Marketing strategies, programs, and activities

  • Financial plans

  • Performance and implementation

  • Appendix

Slide #33 Marketing Plan: Executive Summary

• An executive summary serves as an introduction and typically includes:

  • Background information on the organization

  • The organization’s mission statement

  • A brief introduction to the organization’s management and/or marketing management team

  • A brief review of the plan’s highlights and objectives

Slide #34 Marketing Plan: Components

• A situation analysis (sometimes summarized in a SWOT analysis chart) serves as a snapshot of the business’s current marketing state of affairs and covers the following areas (known as the “5 C’s”):

  • Company—the company’s goals, goods/services, and financial situation

  • Customers—size, demographics, and purchasing behaviors of target market(s)

  • Competitors—market position and strengths/weaknesses of main competitors

  • Collaborators—how subsidiaries or joint ventures affect the marketing situation

  • Climate—how external factors affect the company’s marketing situation

Slide #35 Marketing Plan: Demographics

• A full demographic description of the target market includes:

  • Goals for how the target market should be reflected in the marketing mix

  • These are only the goals for the marketing mix. The details of how these goals will be met will come later in the marketing strategies section.

Discussion #2: Ask students why it is a good idea to establish the goals for the marketing mix in a separate section from the detailed account of how those goals will be met.

Slide #36 Marketing Plan: Marketing Objectives

• An outline of marketing objectives that the company wants to achieve and serves as a foundation for achieving sales in addition to overall financial objectives

  • Marketing objectives should be SMART (specific, measurable, achievable, realistic, and time-bound).

  • Some marketers may include any issues that could affect the organization’s ability to reach its goals.

Discussion #3: Ask students to describe the importance of each part of the SMART criteria, that a goal be specific, measurable, achievable, realistic, and time-bound. What would happen if a goal didn’t meet each requirement?

Slide #37 Marketing Plan: Marketing Strategies, Programs & Activities

• The heart of any marketing plan, often taking up over 50% of the overall length, typically contains the marketing strategies, programs, and activities, and moves from the general to the specific. It often includes:

• The identification of a general marketing strategy such as:

  • Growth (obtaining a bigger market share)

  • Stability (keeping the same market share)

  • Market exit (taking a product off the market before introducing a replacement)

• A detailed look at the specific marketing strategies of the overall plan, including schedules, timetables, and the assignment of all tasks relating to the marketing mix:

  • Product: branding, features, quality, packaging, variety, benefits, warranty, labeling

  • Price: list price, discounts, payment periods, new product pricing, price competition, leasing options, bundling, credit terms

  • Place (Distribution): channel members, coverage, warehousing, locations, order fulfillment, inventory, transportation

  • Promotion: advertising, public relations, direct marketing, sales promotions, personal selling, Internet marketing

Slide #38 Marketing Plan: Finances, Projections, Additional Resources

• The final components of a typical marketing plan tend to focus on projections and additional resources or information. They are most often grouped into these sections:

  • Detailed financial plans, including expected expenses and profits of the plan’s programs

  • An explanation of the performance and implementation of the marketing plan in which marketers explain their expected results, including how progress will be measured

    • This portion also describes potential changes and adjustments that can be made to keep the marketing plan on track to meet its goals.

  • Any charts, graphs, research, or miscellaneous materials related to the marketing plan are contained in the appendix. This may include more detail relating to concepts that were only summarized in other parts of the overall plan.

Situation Analysis—Discussion Guide

Performance Indicator: Explain the role of situation analysis in the marketing planning process.

Slide #41: Opening Discussion (Entry) THINK ABOUT IT

• Kwan and Omar decide to hike through the forest, cross a bridge, and eat lunch at a café.

  • It rains and the bridge is unpassable.

  • Cold and hungry, they hike back in the rain.

  • Evaluating the weather and the trail would have improved their adventure.

  • Marketers scan their business environments to develop good marketing plans.

KEY CONCEPTS

Slide #42 Situational Analysis

• A situation analysis is the determination of a firm’s current marketing situation.

  • It is a major aspect of the marketing planning process.

  • A situation analysis answers the basic question, “Where do things stand right now?”

  • It serves as a snapshot of the current environment that the business is operating in.

  • A situation analysis is a careful evaluation of five key areas, often referred to as the 5 C’s: the company, its customers, its competitors, its collaborators, and the climate the business is operating in.

Slide #43 Company Analysis

• Company—one of the 5 C’s

  • Marketers make sure they understand and keep the company’s overall goals in view.

  • They evaluate the company’s organizational culture, its financial situation, and any unique selling propositions (USPs) offered by the company or its products.

  • Most importantly, they evaluate the goods and services produced as well as those products’ features and benefits.

    • An improvement in product quality, for example, can have a favorable impact on a company and provide a specific focus for its promotional efforts.

Discussion #1: Why do some companies lose sight of their own strengths and weaknesses?

Slide #44 Customer Analysis

Customers—one of the 5 C’s

• It’s important for marketers to have a clear understanding of its current target market and that market’s purchasing behavior.

• Marketers study the size of their target market, demographic information, and psychographic information about customer attitudes and beliefs.

• All these data help a company determine what marketing strategies will be the most effective in reaching its target market.

  • For example, customers interested in nutrition are more likely to be influenced by health benefits than trendy packaging or advertising.

Discussion #2: Share examples of companies that have failed to understand their customers.

Slide #45 Competitor Analysis

• Competitors—one of the 5 C’s

  • Marketers need to understand the market position of major competitors as well as their strengths and weaknesses.

  • By identifying its competitor’s issues and problems, a company can identify new opportunities—ways to increase profit for itself.

    • If a café’s marketers learn that a competing restaurant has developed a poor reputation, for example, the café could develop strategies to attract the competitor’s dissatisfied customers.

Slide #46 Collaborator Analysis

• Collaborators—one of the 5 C’s

  • Collaborators are any organizations or individuals that the company is dependent on to conduct business.

  • Marketers should evaluate the strengths and weaknesses of partners and distributors, as well as the quality of these business relationships.

  • If a company has any subsidiaries or joint ventures, marketers should also evaluate how these relationships affect the company’s current marketing situation.

  • A partner organization experiencing negative publicity, for example, can negatively impact any company associated with it.

Slide #47 Climate Analysis

• Climate—one of the 5 C’s

  • Lastly, marketers must consider external forces in the marketplace that they have no control over—often by conducting an environmental scan.

  • An environmental scan is a three-step process in which businesses gather information about their surroundings, analyze that information, and determine the future impact of that information.

  • They are actively looking for opportunities or threats caused by any of the following external forces:

    • Social and cultural

    • Demographic

    • Economic

    • Technological

    • Political and legal

  • After collecting information about the business environment, marketers consider how each outside threat or opportunity is currently impacting the internal environment—the company, customers, competitors, and collaborators—and how the company should respond to these threats and opportunities.

Discussion Question #3: Give an example of an opportunity or threat that has a tremendous impact on a company, its customers, its competitors , and it collaborators.

Slide #48 Accurate Analysis

• Accurate analysis is important.

  • Marketers should strive to create an objective and honest evaluation of the company’s current condition.

  • If problems or unfavorable situations exist within the company or the market, marketers should identify them and determine the severity of their impact on the organization.

  • It’s equally important for marketers to avoid exaggerating company strengths and business opportunities.

  • And, if questions arise without clear answers, marketers should conduct research instead of making uninformed assumptions.

  • An accurate analysis is important because it provides guidance and direction on how a company can achieve its marketing objectives.