Marketing Outline Explained Part 2

Summary

The script outlines the essentials of creating a marketing plan, emphasizing the importance of a clear mission statement and financial objectives. It highlights the significance of the marketing mix—product, price, place, and promotion—and the need for a promotional budget. The script also touches on the use of secondary data for market research and the necessity of defining target markets and positioning strategies. It concludes with advice on building a comprehensive marketing plan that includes an executive summary, implementation, controls, marketing organization, contingency plans, and a forecast.

Takeaways

• 📝 A mission statement should be a concise overview of a company's goals, including where the product or service is headed and marketing objectives.
• 💹 Financial objectives are crucial and should detail how the company plans to be profitable, including budgeting and a three-year revenue forecast.
• 🎯 The target market is a key component of the marketing plan, defining who the company aims to reach and how to engage them effectively.
• 🔍 Marketing research involves using secondary data to understand the market and should detail how data is collected, analyzed, and applied.
• 📈 The marketing mix, encompassing the four Ps (Product, Price, Place, Promotion), is central to defining how a product will be taken to market.
• 💼 The product section should provide a detailed description of the offering, including any unique selling points or features.
• 💰 Pricing strategy is vital and should consider customer willingness to pay, cost, and competitive pricing.
• 📢 Promotion involves detailing how and when to reach the target market, including the promotional budget and tactics.
• 📚 The marketing plan should include an implementation strategy, outlining how the plan will be put into action and monitored.
• 🛑 A contingency plan is essential, outlining alternative strategies if the primary plan does not succeed or if market conditions change.

Q & A

What is the purpose of a mission statement?

A mission statement is an overview of where a company wants its product or service to go, including its marketing objectives and financial goals such as profitability.

How long should a mission statement be?

A mission statement can be as short as one paragraph or as long as two, depending on the complexity and scope of the company's objectives.

What are the financial objectives typically included in a mission statement?

Financial objectives usually include a company's budget, revenue goals, cost of goods sold, selling and general administrative expenses, and the aim to achieve gross profit and profitability.

What is the significance of being profitable within 18 months in a business?

Achieving profitability within 18 months indicates that the business is functional and very successful, as it shows efficient management of resources and financial planning.

What is the role of marketing research in a marketing plan?

In a marketing plan, marketing research involves using secondary data to understand market trends, customer preferences, and competitive analysis, which informs strategic decision-making.

Why is the marketing mix an essential part of a marketing plan?

The marketing mix, which includes product, price, place, and promotion, is crucial as it defines how a product is taken to market, targeting specific customer segments with a defined promotional budget.

What are the 'three C's' of pricing mentioned in the script?

The 'three C's' of pricing refer to customer, cost, and competition, which are factors that influence the pricing strategy of a product or service.

How does the promotion aspect of the marketing mix relate to the financial objectives?

Promotion in the marketing mix relates to financial objectives by determining how much is spent to target specific customers, which directly impacts the company's profitability and revenue generation.

What is the importance of a contingency plan in a marketing plan?

A contingency plan is important as it outlines alternative strategies (Plan B) to be implemented if the primary plan fails, ensuring business continuity and adaptability to market changes.

What does the executive summary serve in a marketing plan?

The executive summary serves as a concise overview of the entire marketing plan, highlighting key points and strategies, and is typically placed at the beginning for quick reference by stakeholders.

How does the script suggest one should approach creating a marketing plan?

The script suggests creating a marketing plan by focusing on the who, what, when, why, and how questions, and by integrating elements like SWOT analysis, competition analysis, budget, forecast, target market selection, and product uniqueness.

Outlines

00:00

📈 Mission and Financial Objectives

The paragraph discusses the importance of a company's mission statement and how it should be a concise overview of the company's direction, focusing on product or service goals and marketing objectives. It emphasizes the need to outline financial objectives, such as profitability and revenue generation, and suggests including a three-year financial forecast. The forecast should detail revenue, cost of goods sold, SGNA, marketing costs, and gross profit. The ideal target for profitability is within 18 months, indicating a successful business. The paragraph also introduces the next sections of a marketing plan, which include positioning strategies, marketing mix, and marketing research, with a focus on using secondary data due to the course's constraints.

05:03

📊 Marketing Mix and Plan Components

This paragraph delves into the marketing mix, which consists of the four Ps: product, price, place, and promotion. It stresses the significance of the marketing mix in defining how a product reaches the market, including details on promotion, target markets, and the allocation of a promotional budget. The paragraph also touches on the necessity of defining the product and price within the marketing plan, with price being crucial for financial success. It mentions the '3 C's' of pricing: customer, cost, and competition. The paragraph concludes by discussing the structure of a marketing plan, including implementation, controls, marketing organization, contingency plans, and an executive summary. It advises that while not every plan follows the same outline, the core sections are essential for a comprehensive marketing strategy.

Keywords

💡Mission Statement

A mission statement is a concise summary of a company's goals and objectives, outlining what the business aims to achieve and how it plans to reach these goals. In the video, the mission statement is described as an overview of the company's direction, including financial objectives like profitability and marketing objectives. The mission statement is crucial as it guides the overall strategy and decision-making processes within the company.

💡Financial Objectives

Financial objectives refer to the specific monetary goals a company sets, such as becoming profitable within a certain timeframe. In the script, financial objectives include creating a budget and projecting profits over a three-year period. Achieving profitability within 18 months is highlighted as a key target, emphasizing the importance of financial planning in the company's success.

💡Marketing Mix

The marketing mix, often referred to as the '4 Ps' (Product, Price, Place, Promotion), represents the core elements of a marketing strategy. The video discusses the importance of defining these elements in detail, as they dictate how the product is brought to market. The marketing mix is essential for targeting the right audience and achieving financial objectives, making it a cornerstone of the marketing plan.

💡Target Market

The target market is the specific group of consumers a company aims to reach with its products or services. The video emphasizes the importance of understanding and defining the target market in the marketing plan, as it influences all other marketing decisions, including the marketing mix and promotional strategies. A well-defined target market ensures that marketing efforts are focused and effective.

💡Pricing Strategy

Pricing strategy involves determining the best price for a product, considering factors like customer demand, competition, and cost. In the video, pricing is linked to the company's financial objectives, as it directly impacts profitability. The three Cs of pricing—Customer, Cost, and Competition—are mentioned as critical factors in setting the right price. A well-crafted pricing strategy helps a company remain competitive and financially viable.

💡Positioning Strategies

Positioning strategies involve how a company wants its product to be perceived in the market relative to competitors. The video discusses how positioning is part of the broader marketing strategy, helping to define how the product stands out in terms of quality, price, or other unique features. Effective positioning is key to attracting the target market and achieving long-term success.

💡Marketing Research

Marketing research refers to the process of gathering and analyzing data about consumers, competitors, and the market. The script mentions the use of secondary data (data that has already been collected by others) in the marketing plan, as primary research (original data collection) is not feasible in this context. Marketing research is essential for making informed decisions and validating marketing strategies.

💡Promotion

Promotion encompasses all the activities a company undertakes to communicate its product to the target market. The video highlights the importance of planning promotions, including timing and budget, to effectively reach and persuade the target audience. Promotion is a key component of the marketing mix, influencing brand awareness and sales.

💡Contingency Plan

A contingency plan is a backup strategy that a company can implement if the original plan fails. The video suggests including a contingency plan as part of the marketing plan to address potential risks or unforeseen challenges. This plan ensures that the company can adapt and continue operating even if things do not go as expected, which is crucial for long-term stability.

💡Executive Summary

The executive summary is a brief overview of the entire marketing plan, providing a snapshot of the key points and strategies. According to the video, the executive summary should be the final component of the marketing plan, encapsulating the mission, objectives, target market, marketing mix, and financial projections. It serves as a concise presentation for stakeholders who need to understand the plan quickly.

Highlights

A mission statement should be a brief overview of the company's goals and marketing objectives.

Financial objectives should include a budget and a three-year forecast for profitability.

Being profitable within 18 months is a sign of a successful business.

Positioning strategies, marketing mix, and marketing research are crucial components of a marketing plan.

Secondary data is used for market research in this context, as primary data collection is not part of the plan.

The marketing mix consists of the four Ps: Product, Price, Place, and Promotion.

Promotion should include details on target audience, timing, and budget.

A detailed product description and channel strategy should be provided in the marketing mix.

Pricing strategy should be based on customer, cost, and competition considerations.

The final submission of the marketing plan should build upon and include all previous submissions.

Implementation and controls are part of the final submission, detailing how the plan will be executed.

A contingency plan is necessary, outlining alternative actions if the primary plan fails.

An exit strategy might be included as part of the contingency plan.

The executive summary should be placed at the beginning of the marketing plan.

The marketing plan outline should address the who, what, when, why, and how of the business.

The uniqueness of the product and analysis of competition are integral to the marketing plan.

The final marketing plan should be a comprehensive document that includes all aspects from the initial outline.

Transcripts

[Music]

so your

mission State your mission what is your

company Mission remember we talked about

a vision statement um a mission has to

be an overview of where you want your

product or service to go where your

company needs to be your marketing

objectives pretty simple that's a two

paragraph type statement sometimes you

can do it in one paragraph what you

intend to do how you want to be re uh

generate Revenue be profitable Financial

objectives make money right somewhere in

there you need to tell me you want to be

profitable so maybe here you can put

your budget your financial budget

remember we looked at a threeyear in our

first week year one year two year three

uh Revenue minus uh cost of goods sold

minus sgna minus marketing equals your

gross profit maybe that could be your

three-year forecast right there those

are your financial objectives at the end

of the year you want to be profitable

after 3 years that makes sense the sweet

the sweet Target is 18 months if you can

get profitable in 18 months you've got a

real functional business very

successful okay the next section which

is the next piece that you have to

deliver is your positioning strategies

marketing mix and marketing research 35

to

38 now let's talk about marketting

research for a second generally speaking

speaking that in this type of a

marketing plan in our marketing plan for

this course it's really not that

comprehensive because we're not doing

our own individual studies we're not

hiring someone to do our market research

for us so we're using what we call

secondary data right not primary data

primary data is the data we go out and

get for ourselves so that's where you

would Define this in this marketing

research section you'll Define how you

collected the data how you got the data

how you use the data all the

quantitative analysis goes into this so

for hours we don't have to worry that

much about it however you could use this

section to dump in information that you

couldn't find somewhere else to put and

reference it within the plan somewhere

since you're doing a lot of research

maybe there's additional information

that'll help support the argument you

can put that here in 38 so what's the

important part of this section then 35

to 38 it's the marketing mix right the

four Ps product price place and

promotion this section here could be

four individual Pages it could be eight

individual Pages it could be 10

individual Pages the two biggest pieces

of this plan are your target markets and

your marketing mix because this is going

to Define how you're taking a product to

Market so when you talk about your

promotion you have to make sure that you

talk about not only who you're going

after but when you're going after them

and how much you spending to go after

them now we we'll talk about a

promotional budget in a couple classes

from now but this is where that section

goes in you want to put a promotional

budget here of how much you're spending

that's

important you want to Define your

product more closely here if you didn't

Define it as good as you want to in 24

you want to talk about your ch panel if

you didn't really discuss it uh uh as

well in any of the two sections and then

of course you want you want to talk

about your

price okay because the price is going to

help us make money which is our

financial objectives it's going to help

us be successful it's going to be

defined everywhere in within the section

so price has to be defined in this

section as well and remember we talked

about price last week there are three

C's

for pricing and that was what customer

cost customer and competition okay if

you know those three C's you can develop

your price now we'll look at Price a

little more I think in two weeks because

that's a very important part of the plan

here

okay all

right so that's your three

submissions your last submission is a

build upon on all these submissions

today or when you get done

uh with your first submission I'll go

back and look at that I'm going to go

through it put a lot of comments in

there or as many as I need to to guide

you into the direction you need to go

and then you're going to work that into

your final draft so each part can be

done

individually but it's a build upon okay

so you it's going to be connected

somewhere in your mind hopefully maybe

not on the paper at the moment but in

your mind is connected because your

final submission has to include

everything from page one all the way

down to the final page and the final

submission includes your

implementation uh which are your

controls right how you going to uh put

your controls into place your marketing

organization in this case is a very

simple explanation me um as the CMO

somebody else as the marketing executive

very flat very straight line explanation

because this is just a new plan that

we're doing and then of course

contingency plan what's that plan B if

something fails we go to plan B we try

to make something happen that way and it

could be an exit strategy too an exit

strategy should include something that

maybe you want to pull out of close uh

end whatever it is has to be a plan view

there and then finally your executive

summary that's the marketing plan

outline generally speaking though so not

every marketing plan will follow this

outline there are more traditional some

have more bullet points some have less

bullet points uh we reviewed nine

important sections I always start there

because that's the the meat of any

marketing plan without those nine

sections you can't do any of this and

remember the important part to think

about when you're doing this marketing

outline is the who the what the when the

why the how think of those fundamental

basic questions and I will help you fill

in some blanks here and you can sort of

map that out and then we talk about the

four Ps product price place and

promotion Okay add that together with

being unique add that together with your

squat analysis and your competition your

macro and your uh micro analysis add

that to your budget and your forast you

add that to your uh your target market

selection of course add that to your

product your uniqueness and you've got

yourself a marketing plan you put the

executive summary on top and you're done

okay