Marketing Plan PDF

MARKETING PLAN AND TACTICS Danie Jordaan Reference : Dr Edward Mabay Marketing Defined  ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’  ‘The right product, in the right place, at the rig...

MARKETING PLAN AND TACTICS Danie Jordaan Reference : Dr Edward Mabay Marketing Defined  ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’  ‘The right product, in the right place, at the right time, and at the right price’  “The purpose of the firm is to delight customers, at a profit.” Marketing Plan  A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. For your company, lack of marketing strategy is a slow but sure way to die. Steps to Marketing Strategy or Tactics SEGMENT TARGET POSITION SEGMENTING MARKETS A Market “Segment” Is there such thing as “Mass Marketing”? A Market “Segment” Customization A Market “Segment”  Segmenting the Market 1. Cut the Market up (“segment the market”) 2. Choose attractive segments we plan to target (and which to avoid) 3. Lastly, we design an offering to appeal to those segments  P’s of marketing Possible Dimensions to Segment Consumer Markets  Geographic  Demographics  Income level, age  Psychological  Attitudes, beliefs, personality  Product use  Hobby, on-the-job, special occasion, level Possible Dimensions to Segment Consumer Markets Possible Dimensions to Segment Consumer Markets Possible Dimensions to Segment Consumer Markets Possible Dimensions to Segment Consumer Markets Possible Dimensions to Segment Consumer Markets Possible Dimensions to Segment Consumer Markets Segmenting a market Segmentation variable 2 In practice, segmentation will be multi-dimensional, not just two dimensions Segmentation variable 1 TARGETING Evaluating Market Segments  Segment size and growth  Boston Consulting Group  Growth Share matrix  Segment structural attractiveness (Porter 5 Forces)  Level of competition  Substitute products  Power of buyers  Powerful suppliers  Company objectives and resources  Five Forces Model 22 Potential Entrants Threat of New Entrants Bargaining Industry Bargaining Power Competitors Power of Suppliers of Buyers Suppliers Buyers Rivalry Among Existing Firms Threat of Substitute Products or Services Substitutes Most firms have several “primary targets” Segmentation variable 2 Segmentation variable 1 Focus on your primar y segme nt There may be secondary targets Segmentation variable 2 They are attractive, but not as- attractive and may distract the firm in the short-term Segmentation variable 1 A good strategy identifies: targets to avoid Segmentation variable 1 Segments to avoid Segments to avoid POSITIONING The abstract image of our practice that exists in the head of customers, actual and potential (use 4Ps) Positioning is tricky  On the one hand it’s the result of a good Marketing Strategy  On the other, you could make the case that you can’t plan a good Strategy without first being clear of your Position The Marketing Mix  The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives  4Ps – Price, Product, Promotion, Place.  Other Ps - People, Process, Physical Environment, etc. PRODUCT New Product Development Process Products Life Cycle Five stages of the PLC  Product development - sales are zero, investment costs are high  Introduction - profits do not exist, heavy expense of product introduction  Growth - rapid market acceptance and increasing profits  Maturity - slowdown in sales growth. Profits level-off or decline. Other Issues in Product Life Cycle Length Product Product Life Life Cycles Cycles Are Are Getting Getting Shorter Shorter The The Early Early Bird Bird Usually Usually Profits Profits Fashions Fashions and and Fads Fads Spot the difference? Remember agricultural products are unique Remember agricultural products are unique Remember agricultural products are unique Poor quality control can kill a good product PRICE  Pricing Strategies Quality Low High 2. Low 1. Economy Penetratio n Price High 3. Skimming 4. Premium Other Pricing Strategies  Psychological Pricing  Optional Product Pricing  Captive Product Pricing  Product Bundle Pricing  Promotional Pricing  Geographical Pricing  Price discrimination PLACE Traditional Supply Chain Industrial Food Markets and Distribution Systems Six basic PLACE decisions 1. Do we use direct or indirect channels? 2. Single or multiple channels? 3. Cumulative length of the multiple channels? 4. Types of intermediary? 5. Number of intermediaries at each level? 6. Which companies as intermediaries to avoid 'intra-channel conflict' Where is your product placed? Delivery time matters especially for agric and food products PROMOTION Elements of the Promotion Mix  Personal Selling  Sales Promotion  Public Relations (PR)  Direct Mail  Trade Fairs and Exhibitions  Advertising  Sponsorship Good advertising stays with the consumer Good advertising stays with the consumer  Summary of Marketing Strategy 1. Find some basis for segmentation (ways to cut the market up) 2. Identify the segments (give them cute names) 3. Choose “attractive segments” to target 4. Position you offering using elements of the Marketing Mix to delight them) Segmenting, Targeting & Positioning Position Segment Target