The
following is an example of a typical
Marketing Plan Outline. The outline
may vary buy industry or type of
organization, but the basic
principles of the outline are
consistant.
I.
Executive Summary
A
one- to three-page synopsis of the
plan providing highlights of the
current situation, objectives,
strategies, principal actions
programs, and financial
expectations.
II.
Situation Analysis
Often
called SWOT Analysis, (Strengths,
Weaknesses, Opportunities and
Threats), this section serves to
help you understand your current
business situation.
By
looking at where you have been and
where you are now, in terms of your
resources and competition, you will
be better able to determine where
you are likely to be tomorrow.
The
situation analysis consists of two
parts:
(1)
an EXTERNAL analysis of the
uncontrollable factors that affect
business operations.
(2)
an objective evaluation of your
INTERNAL strengths and
weaknesses.
A.
Industry Analysis
Every
business is part of a larger
industry that exists within a
macro external environment. In
this section it is important that
you analyze the trends and
characteristics of the
environment that you compete
in.
1.
Market
a.
Size, scope, and share of the
market sales history of all
producers and their market
shares
b.
Market potential and major
trends in supply and demand of
this and related
products
2.
Market Activity
a.
Pricing history through all
levels of distribution and
reasons for principal
fluctuations
b.
The distribution
channels
c.
Selling policies and
practices
d.
Advertising and
promotion
3.
Sales, Costs and Gross
Profits
a.
Sales history by grades,
varieties; by sales district;
by end user; by
industry
b.
Cost history
c.
Profit history
d.
Changes in volume and profit
rankings of product lines and
items in a product
line
4.
Technology -- Product and Process
Improvements
We
live in an era of rapid
technological change. You must
look at the developments
within your industry that may
make your product, service, or
business obsolete, or even
less competitive. How close
are you to the cutting edge of
technological advance? This
will help you decide whether
you need a short-term strategy
or if you can be comfortable
with a long-term strategy. In
addition, you must look at all
of the variable components of
marketing to stay abreast of
what's happening. Look at your
product, place/distribution,
price and promotion when
dealing with available and
future technology.
a.
Rate (life cycle)
b.
Lead time required for design
and development of a new
product
c.
Market impact (primary versus
selective demand)
d.
How interrelated are product
and process?
5.
Market Characteristics:
Trends
in
a.
Industry use
patterns
b.
End-use patterns
c.
Frequency, quantity, and
timing of purchase
d.
Buying procedures and
practices
e.
Service
6.
Government and Social
a.
Regulatory climate
Complying
with federal, state, and local
regulations can be costly.
However, not complying with
them can be fatal! You must
know the regulations that
affect your business and be
prepared to adapt if
necessary. What regulations
and controls current exist?
Are any pending political or
legal actions likely to affect
your product?
b.
Fiscal and monetary
policy
The
impact of economic conditions
has a strong effect on the
products and services that
consumers purchase. You will
want to be aware of the
current situation within the
area that you are competing.
Factors that can affect your
business include macroeconomic
conditions such as inflation,
unemployment, and interest
rates. Further, you must look
at the ability of your
customer to buy your product
or service in relation to
gross, disposable, and
discretionary components of
his or her income.
c.
Consumerism
d.
Environmental
impact
e.
Social/Cultural
What
are the characteristics of the
general population and your
particular customer segments
in terms of population trends,
cultural values, lifestyle and
occupation changes, etc? Look
for relevant situations that
pose either an opportunity
upon which to capitalize or a
threat that may affect your
marketing strategy if left
unattended. For example, the
maturing "baby boomers" who
have higher incomes, are more
convenience-oriented, and more
health conscious. As well,
there are a growing proportion
of women and minorities in the
workplace.
7.
Industry attractiveness
analysis
a.
Market Factors:
1.
Size
2.
Growth
3.
Cyclicity
4.
Seasonality
b.
Industry Factors:
1.
Capacity
2.
New product entry
prospects
3.
Rivalry
4.
Power of
suppliers
5.
Power of buyers
6.
Threat of
substitutes
c.
Environmental
factors:
1.
Social
2.
Political
3.
Demographic
4.
Technological
5.
Regulatory
B.
Sales Analysis
This
section should be an intensive
study to uncover problems hidden
by aggregate numbers. For
example, an overall sales
increase of a product line may be
hiding the fact that one
particular product in that line
is unprofitable.
1.
Market area performance versus
company average
2.
Trends of sales, costs and
profits by products
3.
Performance of distributors, end
users, key customers
4.
Past versus current results by
area, product, channel, and so
on
C.
Competitor Analysis
In
addition to the items in this formal
outline, ask yourself questions
like:
How
easily can potential customers
substitute something else
instead of using your product
or service?
How
difficult is it for other to
enter this market?
Is there anything you can do
to prevent new competitors
from entering this market?
What
factors are barriers to your
entering this market?
What
factors are barriers to others
entering this
market?
1.
For each major competitor and
your own company ask:
a.
How does they measure and
evaluate their results?
b.
How did they achieve the
results and what factors
helped or hurt
them?
c.
What are thei important
strengths and liabilities and
how are these likely to
change?
d.
What is their future strategy
likely to be?
2.
Thorough analysis
requires:
a.
Exploration of past
results
b.
Reconstruction of past
strategy
c.
Evaluation of
resources
1.
Ability to conceive and
design new products
2.
Ability to produce or
manufacture
3.
Ability to
market
4.
Ability to
finance
5.
Ability to
manage
6.
Will to succeed in this
business
d.
Comparative analysis of
existing and anticipated
future products
D.
Customer Analysis
Key
questions to better understand
your market.
Knowledge
of consumers is critical to
developing successful marketing
plans. In addition to answering
the questions in this formal
outline, you need to determine
what your answers will be based
on: primary or secondary sources
of information, and how you will
acquire that information (e. g.,
will you conduct your own
research or hire an outside
research firm?).
1.
Who:
a.
Who are your customers?
b.
How can they be
classified?
c.
Which classification is most
important to you and your
competitors -- today and
tomorrow?
2.
Why:
a.
Why do customers buy when, as
much as, and the way they do?
b.
How involved and prolonged is
the purchase
decision?
c.
How many people are involved
and at what level?
d.
What are the objectives of
each person
involved?
e.
Which objectives are most
important?
3.
What does the product or service
offer the customer?
What
is the OVERT BENEFIT to the
customer?
a.
Functionally?
b.
In terms of image or
perception?
4.
What if . . .
a.
What would cause a change in
customers'
objectives/needs?
b.
What information will help
anticipate these
changes?
5.
So what?
a.
What are the implications of
changes in customer
behavior?
b.
What is the expected impact on
you and your
competitors?
6.
What then?
a.
How will this customer
analysis improve your
understanding of the total
market, size, mix growth rate,
and timing?
E.
Planning Assumptions
It
is important to honestly
articulate your assumptions since
you must be prepared to answer
questions like: How badly will
the product's market position be
hurt if your assumptions turn out
to be incorrect?
1. Explicit
statement of assumptions about
the future
2. Projections,
predictions, and
forecasts
F.
Forecasts
1. Industry
2. Product
III.
Situation Analysis &endash;
Internal
Resource
capabilities
1.
Financial resources
What
is the current scope of the
business in terms of size,
growth, and
profitability?
2.
Human resources
Do
the managers of this plan have
special talents or abilities
that provide some competitive
advantage?
Do
you have sufficient and
adequately training staff to
meet the needs of your
business at the present time?
Will
you need additional staff to
implement this plan?
Where
and how will you get additional
staff if required?
3.
Manufacturing/production
resources
Do
you have the facilities and
equipment necessary for
increasing production?
At
what capacity do you presently
operate?
What
impact will increased demand
have?
4.
R & D resources
What
is the effectiveness of your
organization's research and
development effort?
What
can be done to modify these
resources to suit the needs
identified by this
plan?
IV.
Objectives
This
part of the plan spells out what the
plan is expected to accomplish.
Objectives should be stated for each
target market.
A.
Corporate objectives (if
appropriate)
B.
Divisional objectives (if
appropriate)
C.
Marketing objectives
1.
Quantity (sales, share, and so
on)
2.
Direction
3.
Number
4.
Time frame
5.
Rationale
D.
Program objectives
1.
Pricing
2.
Advertising/Promotion
3.
Sales/Distribution
4.
Product
5.
Service
V.
Marketing Strategy
This
part of the plan discusses how the
objectives will be achieved, or how
the plan will be implemented.
A.
Strategic alternative(s)
B.
Customer targets
C.
Competitor targets
D.
Core strategy
VI.
Marketing Programs
This
part of the plan focuses on the
Marketing Mix considerations of
product, place (distribution), price
and promotion.
A.
Pricing
B.
Advertising/Promotion
1.
Copy
2.
Media
3.
Trade versus consumer
promotion
C.
Sales/Distribution
D.
Product development
E.
Service
F.
Market research
VII.
Financial Documents
In
today's business environment, the
product or marketing manager must be
knowledgeable about the financial
dimensions of his or her job. In
fact, in many ways this marketing
plan can be seen as comparable to a
start-up plan for a new
business.
In
addition, in order to be part of the
firm's overall decision making, the
product manager must understand the
financial implications of his or her
decisions.
A.
Budgets
1.
Advertising/promotion
2.
Sales
3.
Research
4.
Product development
B.
Pro Forma Statements
1.
Costs
a.
Dollar, unit
b.
Variable, fixed
2.
Revenues
(forecasted)
3.
Profits
a.
Dollars, dollars per
unit
b.
ROI
c.
Versus company
average
VIII.
Monitors and Controls: Specific
research information to be
used
This
section of the plan specifies the
type of marketing research or
information needed to measure
progress toward achieving the stated
objectives. The kind of information
collected often depends on the
objectives.
A.
Secondary data
1. Sales reports
2. Orders
3. Internet
4. Informal sources
B.
Primary data
1.
Sales records (Nielsen,
IRI)
2.
Specialized consulting
firms
3.
Customer panel
IX.
Contingency Plans and Other
Miscellaneous
Documents
This
section of the plan discusses both
contingencies (what action should or
will be taken if conditions and
assumptions used in this plan
change), and alternative strategies
that were considered and then
rejected.
A.
Contingency plans
B.
Alternative strategies
considered
C.
Miscellaneous
