Analysis for Marketing Planning

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Analysis for Marketing Planning

• Defining the Market

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Marketing Planning

• A written document containing a specific
  blueprint for business/business units marketing
  program and allocations for a specific period of
  time.

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Corporate strategic planning
Group or sector planning
SBU planning
Annual marketing plan
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Marketing Planning Sequence
Collect data
Analyze data
Develop objectives, strategies, programs
Develop financial documents
Negotiate final plan
Measure progress toward objectives
Audit
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Marketing Plan Components

• Executive summary
• Situation analysis
• Industry analysis
• Competitor analysis
• Customer analysis
• Demand analysis forecasts
• Marketing objectives
• Marketing strategy
• Marketing tactics
• Product/brand management
• Pricing management
• Distribution management
• Communications management
• Budget
• Implementation and control plan
• Contingency plan

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Market Definition

• How a business sees or defines its market for its
  product/service.
• Who do we or will we compete with?

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Different Bases of Competition

• Customer-oriented
• Marketing-oriented, i.e., advertising and
  promotion
• Resource-oriented
• Geographic

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Methods for Determining Competitors

• Existing categories
• Substitutability
• Managerial judgment

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Defining market using customer-based data

• Brand switching
• Basic question Are these products substitutes
  for each other?
• Positive cross-elasticity of demand
• Substitute products
• Negative cross-elasticity of demand
• Complementary products

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• Customer judgment
• Based on customer perceptions
• Overall similarity--perceptual map

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More Gentle
Anacin 3 ?
? Tylenol Reg. Str.
Less Strong
More Strong
? Tylenol Extra Str.
? Bufferin
? Bayer
? Anacin
? Anacin Max.
? Excedrin
Less Gentle
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• Customer judgment
• Similarity of consideration sets
• Product deletion
• Substitution in use

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Defining market by levels of competition

• Identify levels or dimensions of competition
• Three dimensions of competition
• Works from broad to narrow
• Identifies all possible opportunities, enabling
  business to be proactive and to anticipate
  consumer needs

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First Dimension

• Identifies competing product classes serving
  generic need.
• Example
• Generic need thirst
• Competing product classes
• milk, soda, coffee, tea, juices, water,
  etc.

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Second Dimension

• Identifies competing product forms within product
  class.
• Example
• Product class coffee
• Competing forms whole bean, ground,
  instant, coffee bags, etc.

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Third Dimension

• Identifies competing brands within product form.
• Example
• Product form whole bean
• Competing brands Folgers, Starbucks,
  Millstone, Gevalia, etc.

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Marketing Definition
Thirst
Broad
Milk
Coffee
Soda
Tea
Juice
Ground
Whole Bean
Instant
Coffee Bag
Narrow
Folgers
Starbucks
Millstone
Gevalia
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Product form competition Diet colas
Product category competition Soft drinks
Generic competition Beverages
Budget competition Food entertainment
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Choosing Competitor Focus

• Depends on several factors
• Long-term vs. short-term
• Product life cycle stage
• Rate of change in technology
• Firms distinctive capabilities

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Product Life Cycle