MKT 501: MARKETING MANAGEMENT

Creating a Marketing Plan

Instructor: Syed Ibrahim Saajid

Marketing Planning

Marketing planning is simply a logical sequence and a series of

activities leading to the setting of marketing objectives and the
formulation of plans for achieving them.

Marketing planning is necessary:

• to help identify sources of competitive advantage

• to force an organized approach to developing strategy

• to set objectives and strategies

Step 1: Mission Statement
The purpose of the mission statement is to ensure that the raison d’être of
the business is clearly stated.

Role or contribution of the business

e.g. profit generator service department opportunity seeker.

Definition of the business

e.g. the needs you satisfy or the benefits you provide. Don’t be too specific
(e.g. ‘we sell milking machinery’) or too general (e.g. ‘we’re in the
engineering business’).

Distinctive competence
This should be a brief statement that applies only to your business. A
statement that could equally apply to any competitor is unsatisfactory.

Indications for future direction

A brief statement of the principal things you would give serious consideration
to (e.g. move into a new segment).
Step 2: Summary of Previous Performance

This section is designed to give a bird’s eye view of the organization’s total
marketing activities.

In addition to a quantitative summary of performance, as follows, marketing

managers should give a summary of reasons for good or bad performance.

KPI 3 years ago 2 years ago Last year

Volume/turnover

Gross profit (%)

Gross margin
Step 3: Summary of Financial Projections
Its purpose is to summarize for the person reading the plan the financial
results over the full three-year planning period. It should be presented as a
simple diagram along the following lines:
Step 4: Market Overview
Provide a brief description of the entire market here. A good way to do it is
through Porter’s 5 forces analysis:
 Step 5: Choosing the Target Segment
Use the step-by-step segmentation process shown in Lecture 3
High Service Quality Need

30%

6% 24%

20% 80%
Low price Sensitivity High price Sensitivity

14% 56%

70%
Low Service Quality Need
Step 5: Choosing the Target Segment

1. Identify the Market Attractiveness Factors (MAFs) for all the identified
segments. Most common ones are: Growth, Size, Profitability.

2. Assign an importance weighting to each MAF so that the weightings for

each segment totals 100%.

3. Score each of the identified segments on a scale of 1 to 10, where 1 =

very poor and 10 = excellent for all the MAFs.

4. Multiply the weights by the scores and add up the weighted score for
each segment.

5. The segment with the highest score is the most lucrative segment to
target in the defined market.
 Step 5: Choosing the Target Segment

Score/Weighted score

MAFs Weighting
Young Middle-aged Senior
Trendy youth Teenagers Housewives
professionals professionals citizens

8 7.5 9 5 4 3
Growth 30%
2.4 2.1 2.7 1.5 1.2 0.9

9 8 6 5 5 3
Size 25%
2.25 2 1.5 1.25 1.25 0.75

7 9 7 8 7 5
Profitability 25%
2 2.25 1.75 2 1.75 1.25

8 8 9 5 4 3
Tech-
20%
savviness
1.6 1.6 1.8 1 0.8 0.6

Total 100% 8.00 8.10 7.75 5.75 5 3.5

Step 6: Critical Success Factors
1. Identify the Critical Success Factors (CSFs) that influence the customer’s
decision. There are usually not more than five-six important factors.

2. Assign an importance weighting to each CSF so that the weightings

totals 100%.

3. Identify the key competitors for and score performance of your company
and each key competitor on a scale of 1 to 10, where 1 = very poor and
10 = excellent. Limit to a few competitors (between one and three).

4. Multiply the weights by the scores and add up the weighted score for
each competitor.

5. Assess your relative strength by dividing your score by the best

competitor’s score.

6. Identify the key issues from the analysis.

Step 6: Critical Success Factors
Step 7: Objectives & Strategies

Objective 3-year business targets (key business KPIs)

Strategies Holistic approach to achieve the objectives

Actions Items Specific activities to implement the strategies

Specific team/department responsible for each

Responsibility
action item

Timeline Achievement timeline for each action item

Cost Budget requirement for each action item

Step 8: Brand Strategy

1. Brand Architecture

2. Brand Positioning

• Frame of reference
• Points of parity
• Points of difference

3. Brand elements

• Logo
• Slogan
• Color
• Character etc.
Step 9: Product & Pricing Strategy

1. Product levels

2. Product specifications

3. Pricing method and justification

Step 10: Communication Plan

1. Marketing communication objectives

2. Communication tools to be used

3. Communication media to be used

4. Key communication messages

5. Launch campaign plan

Conclusion: The Elevator Pitch

An elevator pitch is a brief, persuasive speech that you can use to spark
interest in what your organization does. You can also use one to create
interest in a project, idea, or product.

It needs to be succinct, while conveying important information.

This of yourself as a marketing consultant. Now create a 2-3 sentence

elevator pitch to summarize the marketing plan for board of directors of the
company. This must include the following:

• What is the problem

• What is the solution you have proposed
• Why it will work: the USP
Thank you!