Slide 1Major Topics of Ch. 1What is a (formal) marketing plan?Time Horizons for Marketing PlansHierarchy of PlanningObjectives of a Marketing PlanObjectives of a Marketing Plan (cont’).Marketing Planning SequenceMarketing Plan SummaryMarketing Plan Summary (con’t)Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning Process (cont)What Makes a Good Planning System?Sources of Help*McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.C H A P T E R Overview1McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Major Topics of Ch. 1Major Topics of Ch. 11. What is a Marketing Plan?2. Marketing Plan Sequence*3. Contents of A Typical Marketing Plan*4. Good and Bad in Marketing Planning5. Sources of Help for YouMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.What is a (formal) marketing plan?What is a (formal) marketing plan? A marketing plan is a written document containing the guidelines for the business unit’s marketing programs and allocations of resources over the planning period.McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Time Horizons for Marketing PlansTime Horizons for Marketing PlansTime Period Consumer ProductsIndustrial ProductsServices1 year 62% 45% 65%3 years 5 5 85 years 15 17 3Long term 4 3 6Indefinite 0 2 2Other 14 28 16McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Hierarchy of PlanningHierarchy of PlanningGroup or sector planningSBU planningAnnual marketing (business) planCorporate Strategic Planningwww.ge.com/www.hp.comMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.ObjectivesObjectives of a Marketing Plan of a Marketing Plan1. To define the current business situation.2. To identify problems and opportunities facing the business.*3. To establish business objectives.4. To define the strategies (e.g.,target market) and programs necessary to achieve the objectives.McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Objectives of a Marketing Plan (cont’).Objectives of a Marketing Plan (cont’).5. To pinpoint responsibility for objectives.6. To establish timetables and metrics for achieving objectives.*7. To encourage careful and disciplined thinking.*** 8. To establish an outward (customer/competitor) orientation.* Two Approaches: Top-Down or Bottom-UpMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Marketing Planning SequenceMarketing Planning SequenceCollect dataAnalyze dataDevelop objectives, strategies, programsDevelop financial documentsNegotiate final plan*Measure progress toward objectivesAuditMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Marketing Plan SummaryMarketing Plan SummaryI. Executive summary (Don’t forget this!)II. Situation analysisA. Industry analysis (should be on the industry, not a firm)B. Sales analysis (Industry level)C. Competitor analysisD. Customer analysisE. Planning assumptionsF. Sales ForecastsMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Marketing Plan Summary (con’t)Marketing Plan Summary (con’t)III. (Marketing) objectivesIV. (Marketing) strategy**V. Marketing programs (Marketing Mix)**VI. Financial documentsVII. Monitors and controls (optional)VIII. Contingency plans (optional)McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning ProcessThe Speed of the ProcessThe Amount of Data/Information CollectedWho does the Planning?The StructureLength of the Plan: 20-30 PagesMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Frequent Mistakes in the Planning Process (cont)Frequent Mistakes in the Planning Process (cont)Number of Courses of Action Considered*Who Sees the PlanNot Using the Plan as a Sales DocumentInsufficient Senior Management LeadershipNot Tying Compensation to Successful Planning EffortsMcGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.What Makes a Good Planning System?What Makes a Good Planning System?Utilize experience from multiple managerial levels*Employ internal and external sources of information*Spend Sufficient Time*Give Incentives for Good Planning*McGraw-Hill/Irwin© 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.Sources of Help*Sources of Help*I. Planning SoftwareI. Marketing Plan Pro* www.paloaltosoftware.comII. Some websitesI. www.bizcenter.orgII. www.brs-inc.comIII. www.startupjournal.comIII. WorkshopsI. Tech Transfer Forum II. Iowa SBDC and Pappajohn centerIV. Previous Project Reports (in my