Lesson 2 Developing Marketing Plans -...

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Lesson 2 Objectives

At the end of this Introduction, you will be able to:

• Differentiate between marketing goals, objectives, strategies and tactics

• Set S.M.A.R.T. goals• Establish marketing tactics to achieve your marketing goals and strategies

• Develop a marketing plan, budget, and calendar

Key Terms

Goal/Objective – the desired or needed result to be achieved within a specific timeframe; clear targets used to evaluate performance, e.g. “increase sales by X percent over prior period by the end of this period.”

Marketing Planning Process – a systematic procedure that leads to the development of a marketing plan.

Goal/Objective

Marketing Planning Process

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Key Terms Situation Analysis – the process of obtaining a thorough understanding of the business including current markets served, guest wants and desires, competition, financials, etc. Forms the foundation of the marketing planning process.

Strategy – Describes the marketing direction the business will pursue within its chosen environment and guides the allocation of resources and effort.

Situation Analysis

Strategy

Tactic

Tactic – short‐term actions undertaken to achieve implementation strategies and objectives.; an “action plan.”

Program vs. Plan vs. Campaign

Marketing Plan

Marketing Program

Marketing Campaign

Marketing Planning

“To open a shop is easy. The difficult thing is to

keep it open.”

Chinese proverb

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Marketing Planning

The manager is challenged with developing a marketing plan for this location to increase sales.

The MarketingPlanning Process

Situation Analysis

Goals & Objectives

Strategies

Tactics

The MarketingPlanning Process

Goal

Objective

Strategy

Tactics

Situation Analysis

Win the war

How we will know when we’ve won (how success will be measured)

“Divide and conquer”

CIA spies gather intelligenceEnemy communications stoppedParatroopers secure airportsInfantry invadeHand‐to‐hand combat

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Situation Analysis

Your situation analysis will directly

influence your marketing objectives,

strategies, and tactics.

Situation Analysis

SWOT Assessment

StrengthsWhat do you do well at this location?

How can you leverage what you do well to take advantage of your opportunities

or reduce threats?

WeaknessesWhat can you improve at this location?

How can these weaknesses be overcome so threats do not become a reality?

OpportunitiesWhat are your biggest opportunities to make a positive impact to the

bottom line?

ThreatsWhat issues or challenges might severely undermine your goals for this location?

How can these be addressed?

Example:Situation Analysis

SWOT Assessment

Strengths‐ Convenient location.‐ Offers wide range of grocery items.‐ Competitive pricing for some groceryproducts.

Weaknesses‐ Current packaged product line is low margin.‐ Beverage contract with Coke/no Pepsi products.

‐ Security late night.

Opportunities‐ Offer new products with low investment in variable costs (labor andfood).

Threats‐ Higher cost, lower‐contribution itemsmean theft and spoilage are issues.‐ No meal transfer allowed.

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Goals & Objectives

Your goals and objectives

should specify concrete ways to move the business forward.

Writing Marketing Goals

1. Goals become “real.”

2. Documentation prioritizes goals.

3. The writing process enables you to track progress.

4. Makes the marketing process less intimidating and overwhelming.

Writing Goals

What do you want to achieve?

Example:Introduce a new retail concept in

your account next fiscal year.

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Writing Goals

What do you want to achieve?

Example:Increase revenue growth by %

year over year.

Writing S.M.A.R.T. Goals/Objectives

Financial Objectives (primary)

Non‐Financial Objectives (secondary)


detail, specificity

stated in terms of dollars or quantities

states who, what, where, when & how

realistic

timely and tied to deadlines/dates

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Example:

Objective:Increase cash sales by 10% or $3,500 by the end of the fiscal year by offering a rotating menu of house‐made

packaged items.

Goals and Objectives

Goals are broad but point you forward in a specific direction.

Objectives are concrete and should be S.M.A.R.T.

Strategies

Remember, a goal and objectives

specifically state what you want to

achieve. Strategies

conceptualize how that goal

could be achieved.

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Strategies

Goal: increase baking soda sales

Strategy: devise new reasons for customers to use more baking soda (e.g. as a deodorizer)

Tactics: TV ads, magazine ads, retail promotions, etc.

John Furgurson, 2009

DevelopingStrategies

Strategy

Devise new reasons for customers to use more baking soda (e.g. as a

deodorizer)

Tactics

Short‐term actions

undertaken to achieve

implementation of a broader

strategy to drive towards

attaining goal/ objective.

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Tactics: A Buffet

Selecting the right tactic is essential.

Tactics

Direct MailAdvertisingCoupons

Frequency CardsSocial Media

Product SamplingEmail Campaign

WebsiteNewsletter

Word‐of‐Mouth

Tactics

1. Select tactics that define what action you want your guests to take.

2. Consider all aspects of the business (front and heart of the house) when setting tactics.

3. Include communication tactics that match your market’s lifestyle.

4. Mix old and new tactics if appropriate. Copy tactics you admire!

5. Be as specific as possible.

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Tactics

Who should

spearhead this tactic?

By when should this tactic be

completed?

What resources might be needed? Other people?

Money required for this tactic?$$

Any special expertise needed for this tactic?

Any special supplies or equipmentneeded?

What should

this tactic achieve?

Tactic #__:________________________________

Example: Tactics

Who should

spearhead this tactic?

By when should this tactic be

completed?

What resources might be needed? Other people?

Money required for this tactic?$$

Any special expertise needed for this tactic?

Any special supplies or equipmentneeded?

What should

this tactic achieve?

C‐storemanager

September15th

Graphic design,

assistanceto account distribution

list

$200 Graphicdesigner

Access to account email

distribution list

Generateawareness of

new smoothie program

available in the c‐store

Tactic #1: Email to customers announcing new Promotion

Tactics

Carefully planned tactics will

help you avoid costly

mistakes and help you

achieve real results.

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Marketing Planning Process

Break down the marketing

planning process into key steps

The Marketing Plan

Involve everyone in marketing planning.

Involvement from the very beginning will help ensure buy‐in and engagement.

The Marketing Plan

Situation/Business Analysis

Goals

S.M.A.R.T. objectives

Strategies

Action plans (tactics)

Budget

Calendar

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The Marketing Plan

Situation Analysis

Goals/Objectives/Strategies

Budget Analysis and Sales Projections

Calendar

ProductPricePlacePromotion

The Marketing PlanThe Marketing Plan

Preparation in advance is the

key to simplifying writing your marketing

plan.

The Marketing PlanThe Marketing Budget

A marketing budget is critical to marketing plan execution. It not only guides spending

but should also project sales for various activities.

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Product Development(research,

development,testing,

trademark research)

Administrative Costs(interns, telecomm, graphic design,professional

membership fees or dues/subscriptions)

Market Research Costs

(surveys,focus groups,

etc.)

Advertising Costs(printing, ad fees,web, t.v., and radio costs)

Sales Promotion Costs

(printing, distribution,

premiums, give‐aways, sampling,

etc.)

Communication Costs

(printing, web communication fees,

etc.)

Technology Costs

(website, digital

signage, text msg fees, etc.)

Show/Event Costs

(bridal fairs, special events, partnership

programs, etc.)


Omitting some costs might mean you will need to make adjustments elsewhere in your plan . . .

Or it might mean blowing your budget altogether.


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The ultimate goal is for marketing activities to increase

profitability

The Marketing PlanThe Marketing Calendar

Ensure timing is appropriate not only for execution

but also development and production, and tracking and follow‐up.

The Marketing PlanContinuous Improvement

Continuous improvement

through ongoing

tracking and evaluation.

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Developing Marketing Strategies & Plans Quiz

Once you have answered each

question, click on the NEXT button…


Question 1:A manager involved in the marketing

planning process meets with his boss to report progress. He shares the

situation analysis, goals, objectives, and tactics. Which part of the marketing

planning process is the manager missing?

a. the four P’sb. the marketing budgetc. marketing strategiesd. the marketing calendar


a. a broad statement of what you want to achieve

b. a statement of the direction a business with pursue

c. a thorough understanding of your business

d. a concrete statement with which performance can be measured

Question 2:An objective is:

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Question 3:Which is not an example of a S.M.A.R.T. objective?

a. improve guest satisfaction scores

b. increase check average by $0.50 over last period by the end of the next period

c. raise the number of hits on our website by 10% at the end of a promotion period

d. boost total sales at the grill by $5,000 at the end of December


a. provide a tool to measure financial performance

b. conceptualize how marketing goals can be achieved

c. communicate the steps you plan to take to execute marketing activities

d. isolate a business’ strengths, weaknesses, opportunities, and threats

Question 4:What do marketing

strategies do?


Question 5:What are the four P’s of the

marketing mix?

a. Place, People, Procurement, Price

b. Philosophy, Position, Purpose, Possibility

c. People, Purpose, Place, Program

d. Product, Price, Place, Promotion

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American Marketing Association. Dictionary. http://www.marketingpower.com/_layouts/Dictionary.aspx

Ehmke, Cole and Jay Akridge. The Elements of a Business Plan: First Steps for Entrepreneurs. Purdue University Extension Services.

Entrepreneur..com Marketing Plan. http://www.entrepreneur.com/encyclopedia/term/82450.html

Feltenstein, Tom. Underdog Marketing for the Foodservice and Hospitality Industry. 1997.

Furgurson, John. Brand Insight Blog. 2009. http://www.brandinsightblog.com/2009/11/01/marketing‐strategy‐vs‐tactics/

Hiam, Alexander.Marketing Kit for Dummies. Wiley Publishing, 2009.

Developing Marketing Strategies & Plans Sources

Humphrey, Albert. SWOT Analysis for Management Consulting: SRI Newsletter. 2009

Ignite Business Services. Strategic vs. Tactical Marketing. 2009.MB4 Marketing. Marketing Strategies for Business Success. 2012.

http://www.m4bmarketing.com/

Meyers, Ginger S. Marketing 101: University of Maryland Cooperative Extension.

Purdue University Extension. Strategic Business Planning for Commercial Producers.

Sandhusen, Richard. Marketing: A Streamlined Course for Students and Business People. Barron’s Business Review Series. 2000.

Sharen, Colleen. Thinking is Hard Work: Strategic vs. Tactical. 2009. http://colleensharen.wordpress.com/2009/03/06/strategic‐vs‐tactical/


The Business Dictionary. http://www.businessdictionary.com/definition/marketing.html

The Times 100 Business Case Studies. Marketing Theory and Planning. http://businesscasestudies.co.uk/business‐theory/marketing/market‐planning.html

U.S. Small Business Administration. http://www.sbaonline.sba.gov/smallbusinessplanner/

Ward, Susan. Writing the Business Plan. About.com Small Business Canada. 2012. http://sbinfocanada.about.com/cs/businessplans/a/bizplanmarkplan.htm


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