Next Step Marketing
Research and Marketing Tips

Steps to undertake a Successful Marketing Plan:

Paper Outline:

I. Objective
II. General Overview
III. Definition
IV.Market Research
V. Segmentation
VI. Targeting
VII. Positioning
VIII. Marketing Mix
IX. Implementation
X. Feedback and Control.

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I. Objective:

“How to design an effective Marketing Plan”
R => S => T => P => MM => I => C => R

R = Market Research
S = Market Segmentation
T = Targeting
P = Positioning
MM = Marketing Mix
I = Implementation
C = Control

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II. General Overview:

Marketing is an ongoing effort aimed at helping organizations promote and sell products and services to their target market. Different marketing strategies fit different objectives such as new product introduction, sales increase, or branding. Also marketing depends on your market position: Leader, follower, or niche market.

Two common mistakes in the business community:

1. Equating “marketing” with “selling” or” advertising”. In fact, needs and potential opportunities identification are the very early stages of marketing efforts.
2. Blaming only the marketing department in case of failure. In deed, all departments should be involved in marketing efforts. Only a well-coordinated plan aligning all available resources can ensure positive results.

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“Marketing is finding or creating a need and filling it”. It is the art of delivering your product or service to your target market. It goes through several stages:

1. Market Research
2. Segmentation
3. Targeting
4. Positioning
5. Marketing Mix (4 P’s: product, place, price, and promotion)
6. Implementation
7. Feedback and control

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As a society, we live in continuously changing business environment. Advanced technology and new rules of engagement are shaping the way we conduct business. Means of communication are both effective and efficient: phone, e-mail, fax, Internet and videoconferencing. Transactions are faster than ever.

Strategic alliances and partnerships are more of a must than of a choice to face fierce competition from all over the globe. Work environment have evolved to empower employees, accommodate flexibility, and reduce bureaucracy. Flat structures took over vertical hierarchy. All departments share information in smooth and faster way. E-commerce is revolutionizing business operations in many ways. R&D departments strive to introduce creative and unique products.

Customer is becoming the focus of all strategies; “customer is king”. It is no longer enough to react to his demands; companies like Ford are moving a step a head by predicting and identifying future changes in taste and needs.

The “Market Place” is changing in the following ways:

1. Supply exceeding demand
2. Falling prices
3. Worldwide Competition
4. Information easy access
5. Substitutes availability
6. Innovation and Creativity
7. Lower trade barriers
8. E-commerce
9. More Convenience (delivery, support services…)
10. Highly demanding customers
11. Lower production costs
12. Globalization

The first stage in the marketing process is to identify needs and opportunities in the market. Many companies set up “New ideas” departments to develop new products and services.

The identification process can be conducted in many ways such as surveys, questionnaires, random phone calls, web surveys, on site observations, market testing, or brainstorming. Honda, the Japanese cars manufacturer, introduced larger trunks after observing shoppers unloading groceries at the supermarkets.

Once a need is identified (communication devise) or even created (walkman or PC), the next step is to design the matching product/service. This approach increases the response rate from the target market. The final outcome will depend on test-marketing and focus groups feedback.

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Companies are required to select the segment they can serve better. They present high value product to that specific segment only. Microsoft succeeded in selling computers to ordinary people (PC), while IBM provided businesses with mainframe computers.

When targeting a segment, companies should provide the highest value package possible in order to compete with others. Niche marketing turned out to be the most efficient marketing approach. It is also the least expensive.

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Positioning your product depends on your target market and your potential competitors. There are many alternatives to differentiate your offering:

1. Price: K-mart offers low-price items. All its stores are located in mid to low income neighborhoods. But also “The beers” is offering very expensive luxury diamonds to very rich people.
2. Convenience: Banks compete by providing on line services to allow time saving. FedEx offer its clients pickup and drop off services
3. Luxury: Cadillac cars are attractive to retired high income consumers
4. Safety: Volvo are known to be safe cars
5. Performance: Mustang is a high performance car.
6. Reliability: Mercedes
   

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VIII. Marketing Mix:

This is the big picture that combines the product, pricing, target market, and promotional avenues. It is the action plan developed based on previous stages.

1. Product: Product development is designed to suit the target market needs.
   Customer needs identification => Product development:
   This is the right sequence
   Product development => Customer offering
   This is a wrong sequence
2. Pricing: It is a very important decision to make. It depends whether you are a market leader, market follower, or a niche. Be careful not to overprice or under price your product. It also depends on your positioning strategy, associated value, services, and payment terms.
3. Place: It is related to your target market. It is also important to develop a detailed profiling that combines their culture, ethnic background, taste, habits, believes, social values, preferences, income level, family size, priorities, and life style.
4. Promotion: Many companies allocate considerable budget for marketing efforts, but they choose the wrong medium, the wrong timing, or the wrong message. Marketing channels differ in their cost, frequency, and exposure level:

1. TV Advertisement
2. Print Medium: magazines, newspapers, monthly publications…
3. On line ad: web site banners
4. Sales promotion
5. Promotional items
6. Cause marketing: (Cancer research, orphan programs…)
7. Conventions, seminars…
8. Public Relations
9. Articles
10. Contests
11. Sports and art events sponsorship
12. Relief and humanitarian efforts
13. Word of mouth
14. Distribution Channels: (Stores, Distributors, e-commerce, direct marketing, catalogues…)
    

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This is mainly a management task. All departments and resources should be aligned to support and implement the marketing strategy. It is a joined effort by all. Cross-functional team can ensure communication and cooperation.

It is important to leave room for flexibility to accommodate unexpected changes (external as well as internal environment).

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Creating value is only the beginning, attracting new clients and earning their loyalty is the real challenge. Customer service departments are intended to help monitor feedback and evaluation. They also help communicate directly with customers to address their concern and complain.

“Customer is king”