Developing Your Marketing PlanThe Essential QuestionsComponentsRevenue ModelExample 1 – RestaurantExample 2 – FloristForecast and AssumptionsMarketing CostsCodaAny Questions?Developing Your Marketing PlanDeveloping Your Marketing PlanMHR 423Fall 2003The Essential QuestionsThe Essential QuestionsWho are your primary customers?Why will they buy from you?How can you reach them?How much will they buy over time?How much will it cost you to get them to buy?What assumptions are you making?ComponentsComponentsTarget marketValue propositionPositioningAdvertising and promotionPricingDistributionPre-launch marketing activities and costsRevenue ModelRevenue ModelSales forecast (“most likely” case)By month for two yearsIn both units and dollarsReasonable assumptionsBetter to be conservativeMust be realisticMust dovetail with productionGenerate a “worst case” scenario tooExample 1 – RestaurantExample 1 – RestaurantOver time, patronage buildsAssume rate (based on advertising & promotion)In any evening, assumeNo. of seats x percentage occupiedAverage food and bar expenditure per person (based on menu and drink prices)Number of seatings per evening (based on hours restaurant is open)Other revenuesExample 2 – FloristExample 2 – FloristEstimate number of shoppers per dayMore on holidays and weekendsClose for one day each week on the slowest dayEstimate an average purchaseMuch more on special days like Valentine’s Day, Mother’s Day, graduation, etc.More if you stock other items for purchase, e.g., vases, cards, balloons, etc.Patronage will build over time (based on advertising and promotion)Forecast and AssumptionsForecast and AssumptionsThe sales forecast is your revenue projectionDo a ‘most likely’ case and a ‘worst’ case (put on Sheet 2)Use supporting schedules linked to the main projectionYour assumptions must explain every number on your projectionsLine by line and month by monthMarketing CostsMarketing CostsWhat marketing-related activities must you do that will take time and cost money?BrochuresHiring and training salespeopleLeasing cars and giving salespeople cell phones, laptop computersHiring a PR firmAdvertising in the local paper (or trade magazine)Creating a websiteCoupons, discounts, and special offersMarket researchEstimate the time and cost of each one you useCodaCodaHaving a marketing strategy does not constitute a marketing planYou need to also outline what you are going to do in order to implement the strategyThese activities take timeThey cost moneyEstimate the results of your effortsThis is the revenue modelNow you have a marketing PLANAny Questions?Any
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