Download Marketing Management Indicator 1.03

Marketing
Management
Indicator 1.03
Employ marketing-information to develop a marketing plan
Benefits associated with having a
marketing plan
• Understand past marketing decisions and outcomes
better
• Understand target market(s) better
• Setting goals
• Planning marketing strategies with more precision
• Obtain funding
• Provide direction in organization
• Tracking progress more effectively
Components of a marketing plan
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Executive summary
Situation/SWOT analysis
Desired target market
Marketing objectives
Marketing strategies and programs
Financial plans
Performance and implementation
Appendix
Purpose of marketing plan
components
• Executive summary
• Serves as an introduction to the marketing plan
• Allows the reader to understand the purpose of the marketing plan
• Situation/SWOT analysis
• Determines firm’s current marketing situation
• Answers the basic question of “How are things now?”
• Serves as a snapshot of the business’s current state of affairs as
related to marketing
• Desired target market
• Information on the target market the company desired to reach
• If NOT for a new target market/product, may be skipped
• Marketing objectives
• Outlines the specific marketing objectives that the company wants to
achieve
• Serve as a foundation for achieving sales and overall financial
objectives
Purpose of marketing plan
components
• Marketing strategies and programs
• Heart of the marketing plan
• Identifies the general marketing strategy (growth, stability,
market exit)
• Financial plans
• Provides details on the expected expenses and profits of a plan’s
program
• Performance and implementation
• Give expected results and indicates how the plans’ progress will
be measured
• Appendix
• Holds charts, graphs, or miscellaneous materials related to the
plan
Sales Forecasts are used for:
• New product decisions
• Product scheduling
• Financial planning
• Inventory planning and
procurement
• Distribution
• Human resource planning
Time Frame of Sales Forecasts
• Short-range forecasts
• Last fewer than three months
• Intermediate forecasts
• Last three months to two years
• Long-range forecasts
• Last more than two years
Factors which affect how far ahead
a business should predict sales
• Continual decisions in planning, scheduling, inventory and
staffing in production, procurement and logistics activities are
short range
• Budgetary planning, cost control, marketing new products,
sales force compensation plans, facility planning, capacity
planning and process selection and distribution planning are
intermediate
• Whether to enter new markets, develop new products or
services, expand or create new facilities, or arrange long-term
procurement contracts are long-range
Qualitative vs. Quantitative
Forecasting Methods
Qualitative
Quantitative
• Relies on subjective
data that reports
opinions rather than
historical data
• Uses facts or
statistical
computations such as
trend extensions
based on past data,
computer
simulations, and
economic models.
Factors affecting Sales Forecasts
Internal
• Sales Fluctuations
• Who are our customers?
• Number of customers?
• Diversity of customers?
• New Products
• Very new?
• Not similar to other items
or services?
External
• Market Conditions
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New Technology
Industry Growth
Trends
Laws/Regulations