Understanding the Marketing Mix

and Marketing Plan

Marketing Mix Every plan will be different because every business is

different.

Decisions about the Marketing Mix – 4 P’s – is the foundation of a marketing plan.ProductPricePlacePromotion

Answers to these questions will be a guide to developing the actual Marketing Plan and Action Plans.

Product DecisionsQuantity?

Sizes?

Packaging?

Warranty?

Design and Image?

Logo/Slogan?

Price Decisions

Cost of goods to produce?

Markup?

Profit Margin?

Break-Even Point?

List price Vs. Selling Price?

Comparison with competitors?

Place DecisionsHow/Where products will be sold?

Distribution & Logistics?

Warehousing?

Inventory?

Order Processing?

Delivery of Product?

Promotion DecisionsAdvertising?

Sales Promotions?

Reward Programs?

Special Events?

Public Relations?

Customer Service/Return Policies?

What is a Marketing Plan?Written document that defines the target

market and describes the promotion and marketing efforts to achieve one or more marketing objectives for a specific time period.

Written each year but sometimes modified as the business’s progress and situations change.

Describes a business’ marketing objectives and the strategies and tactics to achieve them.

Parts of a Marketing PlanSituation Analysis

Marketing Objectives

Marketing Strategies

Marketing Tactics

Action Plan

All marketing plans should include this basic information

Situation Analysis

Snapshot of the environment in which the business has been operating

Introductory statement

Target Market

Competition

Target MarketDefine by using demographic, geographic,

economic, behavioral, and psychographic information.

Estimate the total size of the target market.

Include information gained that describe market trends.

Describe factors that may affect purchasing – season, price, availability, emotions, services, etc.

CompetitionList both direct and indirect

competitors

Outline the product line and what they offer

Describe your business’ advantage

Explain why your product is different or better – more variety? Better pricing? Better sizing?

Marketing ObjectivesThe goals a business wants to achieve

during a given time

Most have both corporate and marketing goals

May be short term – achieved in less than a year

May be long term – achieved in a year or more

All marketing objectives should be written as SMART goals

SMART GoalsS = Specific

M = Measurable

A = Attainable

R = Realistic

T = Timely

Marketing StrategiesDecisions made about product,

price, place, and promotion

Outline of the who, what, when, where and how of the marketing process

Marketing TacticsSpecific activities to carry out the

marketing strategies.

Every marketing strategy will have a set of tactics designed to accomplish it

Usually the longest section because it lists very specific activities

Action PlanTime Line – lists when each activity starts and

where it happens, the end date and who is responsible – also keeps business on track and keeps plan moving forward

Budget – costs to implement the marketing and promotional activities

Metrics – the way we measure the effectiveness of a project – marketing is very expensive so business’ want to make sure they have a return on their investment

Format the Marketing PlanAt some point, the marketing plan may be

presented to investors and employees

Make sure it is well written and paragraphs fully explain the marketing plans

Grammatically correct, words appropriate and punctuation accurate

Exciting, enthusiastic and attractive

Unique – be creative