Marketing Plan Development
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Marketing Plan Development

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@TruthfulJackalope

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Questions and Answers

What type of system is control oriented and looks at today's performance based on variances from budgets?

  • Contribution-oriented system
  • Historical financial system
  • External constituent system
  • Performance-based system (correct)
  • What is the main purpose of break-even analysis?

  • To determine the level of sales at which the company breaks even (correct)
  • To calculate the contribution margin
  • To analyze sales volume
  • To identify fixed and variable costs
  • What is a characteristic of fixed costs?

  • It is directly associated with a given product
  • It does not vary in amount with the volume of sales or production (correct)
  • It varies in amount with the volume of sales or production
  • It is a type of variable cost
  • What is the primary focus of external constituents, such as investors?

    <p>The company's overall financial performance</p> Signup and view all the answers

    What is the term for the amount of money left over after accounting for variable costs that goes toward covering fixed costs?

    <p>Contribution margin</p> Signup and view all the answers

    What type of system is useful for looking at historical financial results?

    <p>Historical financial system</p> Signup and view all the answers

    What is an example of a fixed cost?

    <p>Advertising cost</p> Signup and view all the answers

    What is the purpose of analyzing variances from budgets?

    <p>To identify problems</p> Signup and view all the answers

    Which of the following is NOT a type of cost?

    <p>Contribution margin</p> Signup and view all the answers

    What is the term for costs that vary from time to time?

    <p>Variable cost</p> Signup and view all the answers

    Study Notes

    Marketing Planning

    • Marketing plans are an essential function for marketers, focusing on a product or product lines, and improving coordination and performance.
    • A marketing plan can be divided into two parts: situation analysis and objective strategy programs.

    Types of Marketing Plans

    • Retailing typically has short planning cycles due to seasonality and fashion trends.
    • Industrial firms and firms manufacturing consumer durable products often have annual marketing plans.
    • Automobiles have longer planning cycles due to longer product development lead times.

    Hierarchy of Planning

    • Strategic planning occurs at the corporate, group, or strategic business unit levels and has a long-term nature (3-5 years or more).
    • Marketing planning takes place at the business center level and has specific objectives (e.g., market share) and strategies (e.g., pursuing small business segments).

    Objectives of Planning

    • Define the current situation facing the product and how it was achieved.
    • Identify problems and opportunities facing the business.
    • Define strategies and programs necessary to achieve objectives.
    • Pinpoint responsibility for achieving product objectives.
    • Encourage careful and disciplined thinking.
    • Establish a customer-competitor orientation.

    Frequent Mistakes in the Planning Process

    • Speed of the process: too slow or too fast.
    • Amount of data collected: insufficient or too much.
    • Who does the planning: delegated to professional planners or line managers.
    • Structure: too formal or too loose.
    • Length of the plan: too long or too short.
    • Frequency of planning: too frequent or too infrequent.
    • Number of courses of action considered: too few or too many.
    • Who sees the plan: limited to marketing department or shared with other departments.
    • Not using the plan as a sales document.

    Situation Analysis

    • Presents relevant background data on sales, cost, market, competitors, and macro-environment.
    • Defines market size, growth rate, and relevant trends.
    • Conducts SWOT analysis to develop sound marketing strategies.

    Marketing Objectives and Strategy

    • Statement of marketing objectives: defines where the product wants to go.
    • Marketing strategy: defines how to achieve objectives, including mission, marketing and financial objectives, and competitive positioning.

    Supporting Marketing Programs

    • Decisions on pricing, channel of distribution, customer service programs, advertising, and other marketing programs.
    • Implements marketing strategies.

    Financial Projections

    • Sales forecast: predicts sales volume by month and product category.
    • Expense forecast: predicts marketing expenses broken down into finer categories.
    • Break-even analysis: shows how many units must be sold to offset monthly fixed costs and average per-unit variable costs.

    Implementation Controls

    • Outlines controls for monitoring and adjusting the implementation of the plan.
    • Spells out goals and budget for each month or quarter.

    Financial Analysis

    • Product managers need to be knowledgeable about financial dimensions of their jobs.
    • Financial analysis is essential for understanding the financial implications of decisions.
    • Contribution-oriented system: focuses on the amount of money left over after accounting for variable costs that contribute to covering fixed costs.

    Break-Even Analysis

    • Refers to the level of sales at which the company breaks even.
    • Managers often focus on the break-even level of sales to determine how far estimates could be before the company begins to lose money.

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    Description

    Learn about the importance of marketing plans, which are typically annual and focus on a product or product lines, and how they improve coordination and performance. Discover the two general parts of a marketing plan: situation analysis and objective strategy programs.

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