Posted: February 4th, 2015

SUBDOMAIN 318.1 – MARKETING Competency 318.1.5: Marketing Plans – The graduate can create a marketing plan.

SUBDOMAIN 318.1 – MARKETING

Competency 318.1.5: Marketing Plans – The graduate can create a marketing plan.

Objectives:
318.1.5-06: Apply Porter’s Five Forces model to an analysis of the competitive environment for a given business situation.
318.1.5-07: Define the target market as part of a marketing plan for a given situation.
318.1.5-08: Classify a specified consumer product using the three-way consumer products classification system.
318.1.5-09: Develop an appropriate set of marketing objectives that support a given mission statement.
318.1.5-10: Develop a SWOT analysis for a given business situation.
318.1.5-11: Select an appropriate distribution channel for a given marketing situation.
318.1.5-12: Select an appropriate pricing strategy for a given marketing situation.
318.1.5-13: Select an appropriate promotion strategy for a given marketing situation.
318.1.5-14: Develop a tactical marketing plan that supports specified elements of a strategic marketing plan.
318.1.5-15: Identify monitoring and control activities appropriate for a specified tactical marketing plan.
________________________________________
Introduction:

Company G is a well-established firm that is highly regarded in the electronics market. Its mission statement is as follows:

“We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.”

Company G’s engineers and designers have developed a line of small appliances that the company feels can be very successful in the small-appliance market. The company

feels that the current marketing plan for its products does not put them in a position to reach the profit potential for the small appliances.

Success with the new line will depend upon an accurate assessment of the market and a well-crafted, effectively implemented marketing plan that will fit the current

market.

As the marketing manager, you are charged with the responsibility of developing a new marketing plan that will enable the company to reach the full profit potential of

one small appliance from the new product line.

The president has suggested that you use the “clean sheet of paper” concept as you develop the plan; therefore, during the time you are creating the new plan, all

details of the company’s existing electronics marketing plan are to be considered irrelevant. The intent is that current strategies, practices, etc., will be

considered for relevance and possible continuance only after your new plan has been presented to and is understood by top management.

Given:

Company G’s team of engineers and designers have developed a line of top-quality small appliances, and through concept and prototype testing, they have shown that the

visual design features are very appealing to potential buyers and give a distinct impression associated with quality and artistic elegance. Extensive testing has

demonstrated that the new products may be the most reliable line of products in the small-appliance industry. Additionally, the team has designed a production process

that is very efficient in terms of labor and production-line time and that will result in very little raw materials waste. The combination of these efficiencies and

the relatively small front-end investment for this line will result in the company’s ability to produce each of the products in the line at a cost that should enable

them to emerge as the lowest-cost producer in the small-appliance industry.

Company G has a low debt-to-equity ratio and a high credit rating. It enjoys excellent relationships with current suppliers, but because of differences in material

requirements, new raw material suppliers will be needed to support the small appliance line. Company G will also need new suppliers for two component parts that will

be purchased ready for assembly into some of the small appliances.

The credit terms Company G offers to intermediaries in their distribution channel are typical for their industry. Marketing research has shown that the company’s XG

brand and logo are readily recognized by most categories of electronics product consumers.

Task:

Prepare a three-year marketing plan (suggested length of 5–7 single-spaced pages) for one of the small appliances from the new line. Describe the specific appliance

you have chosen. Carefully examine the details provided in the given Company G marketing situation and identify the specific information that should be considered

while developing the plan. Consider other information from the real world that you should incorporate as you develop the plan. Include the following sections in your

plan:

A.  Product Support of Mission Statement
1.  Explain how the small appliance you have selected supports Company G’s mission statement provided in the introduction.
2.  Classify Company G’s products using the three-way consumer product classification system.

B.  Target Market
1.  Describe the target market for the company’s product.

C.  Analysis of Competitive Environment
1.  Analyze Company G’s competitive environment utilizing Porter’s Five Forces model of competitive forces.

D.  SWOT Analysis
1.  Describe three of Company G’s strengths related to the marketing of the new product.
a.  Support your choice of each of these elements as strengths.
b.  Identify at least two strengths that should be considered as core competencies.

2.  Describe three areas where Company G has weaknesses related to the marketing of the new product.
a.  Support your choice of each of these elements as weaknesses.
3.  Describe three current or potential opportunities within the industry.
a.  Support your choice of each of these as opportunities.
4.  Describe three current or potential threats within the industry.
a.  Support your choice of each of these as threats.

E.  Marketing Objectives
1.  Select four marketing objectives for Company G consisting of one objective for each of the four marketing mix elements (product, distribution, price, and

promotion).

F.  Marketing Strategies
1.  Describe three strategies for each element of the market mix (product, distribution, price, and promotion) that are appropriate for the target market. The 12

strategies should be consistent with each other and supportive of the related objective.
2.  Explain why you feel this is the best mix to achieve the objectives.

G.  Tactics and Action Plan
1.  Develop an action plan for implementing the marketing strategies identified.
a.  Include one task for each strategy identified (for a total of 12).
2.  Create a timeline outlining when each task is to be completed.

H.  Monitoring Procedures
1.  Describe the specific actions that will be taken to measure the effectiveness of the plan.
2.  Create a timeline for these actions from the action plan (part H1 above).

I.  When you use sources, include all in-text citations and references in APA format.

Note: When bulleted points are present in the task prompt, the level of detail or support called for in the rubric refers to those bulleted points.

Note: For definitions of terms commonly used in the rubric, see the Rubric Terms web link included in the Evaluation Procedures section.

Note: When using sources to support ideas and elements in a paper or project, the submission MUST include APA formatted in-text citations with a corresponding

reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text

of the paper or project.

Note: No more than a combined total of 30% of a submission can be directly quoted or closely paraphrased from sources, even if cited correctly. For tips on using APA

style, please refer to the APA Handout web link included in the General Instructions section.

Marketing Plan Worksheet
This worksheet is a complement to the study guide for both the MKT1.  The purpose of this worksheet is to help you think about and apply important marketing concepts

to Company G.  By working through the exercises and matrices introduced in this worksheet (Section A, Section B, and Section C), you are laying the foundation for your

marketing plan required in this assessment.  This worksheet should be completed before you write your Marketing Plan, for which a template is provided.

SECTION A – Product and Target Market
The purpose of this exercise is to help you define and classify your chosen product, and define a specific target market.  What a product is, how it supports the

company mission, and how it fits into the market must be well understood in order to market it effectively.   The target market must also be a fairly narrow, specific

group of customers for this task.
Product
Product Description & Support of Mission Statement:  Describe the different features of your product, then explain how that feature supports the given mission

statement
Example:
Product Description:  ACME Roadrunner pellets    Mission Statement: Our mission is to delight our customers and channel partners by providing high quality, effective

roadrunner pellets with timely delivery, superior customer service, and the best warranty in the industry.
Feature: potent roadrunner deterrent chemicals    How this supports the mission statement: The concentrated formula makes our pellets more effective than competing

products.  It will be perceived as higher quality because it is more effective.  Because it works well it will delight our customers, and they will continue purchasing

our products from our channel partners, which will enhance their businesses.

Complete the following table for your product. Add as many rows as necessary for your product.
Product Description:      Given Mission Statement:  We enable consumers to improve the quality and convenience of their lives by providing innovative electronics

solutions.
Feature (Example):  Enter a feature of your product here    How this supports the mission statement: Enter your explanation here
Feature:  Enter a feature of your product here    How this supports the mission statement: Enter your explanation here
Feature:  Enter a feature of your product here    How this supports the mission statement: Enter your explanation here
Feature:  Enter a feature of your product here    How this supports the mission statement: Enter your explanation here

Consumer Product Classification
Reading:  Please review the following resources to gain an understanding of the Consumer Product Classification System.
– Principles of Marketing and Business Communication Text:  Chapter 6 Section 2 entitled, “Types of Consumer Offerings.”
– Learning Community Blog:  “3-way Consumer Product Classification System “
Examine your product to determine which class your product matches most closely.  On the table below, fill in the characteristic and its respective classification for

each factor. The most frequently named class should be the correct consumer product classification.
Factor    Characteristic    Class (convenience, shopping, or specialty)
Consumer Factors
–    Planning time involved in purchase
–    Purchase frequency
–    Importance of convenient location
–    Comparison of price and quality
–    Enter characteristic here
–    Enter characteristic here
–    Enter characteristic here
–    Enter characteristic here
–    Enter class here
–    Enter class here
–    Enter class here
–    Enter class here
Marketing Mix Factors
–    Price
–    Importance of seller’s image
–    Distribution channel length
–    Number of sales outlets
–    Promotion
–    Enter characteristic here
–    Enter characteristic here
–    Enter characteristic here
–    Enter characteristic here
–    Enter class here
–    Enter class here
–    Enter class here
–    Enter class here

Target Market
Target Market:  A specific customer group a company focuses its marketing efforts toward. The target market is generally the most lucrative choice from among different

market segments – each segment being identifiable, measurable, sizable, reachable.  For best results, include a fair amount of demographic information (income range,

education level, family situation, etc.).
Example:  Coyotes, located in desert regions of the U.S., seeking revenge against roadrunners, and making more than $25K annually.
Target Market

SECTION B – Market Analysis
The purpose of this exercise is to provide a framework for you to analyze the marketing environments and opportunities for Company G.  These analyses provide the

rationale for the decisions you make regarding your marketing strategies.
Porter’s 5-Forces Model:  A method for examining the competitive environment for a company or industry.  It specifies and evaluates threats from new entrants,

suppliers, buyers, and substitutes in the arena of competition.
Web site: http://www.quickmba.com/strategy/porter.shtml
SWOT Analysis:  A tool for examining a company and its environment. Defines the company’s strengths, weaknesses, opportunities, and threats
Web site:  http://www.marketingteacher.com/Lessons/lesson_swot.htm

List forces that may threaten Company G’s success as it moves forward with marketing its product.
PORTER’S 5-FORCES FOR COMPANY G

List Company G’s strengths, weaknesses, opportunities, and threats.
SWOT ANALYSIS FOR COMPANY G

SECTION C – Objective & Strategy Planning
The purpose of this exercise is to help you plan your marketing objectives, strategies, and tactics. By planning in advance you ensure you have all the needed

elements, determine if they are appropriate and if they properly align with each other.
Objective:  Describes how the company’s goals and mission will be accomplished.  Read the mission statement or goals.  Objectives answer the question “How will we

accomplish this mission/goal?”  Must be specific, measurable, time-oriented, and realistic.
Example:  Launch a new product, ACME pellets, which will increase revenue 5% within 3 years.
Strategies:  Describe how the objective will be accomplished.  Read the objective.  Answer the question “How will we accomplish that objective?” Please refer to

Learning Community BLOG:  Marketing: Features of the Marketing Mix for ideas.
Example:  Provide ACME pellets in varying bag sizes: small, medium, and large.
Tactic/action:  Details how the strategy will be executed.  Read the strategy. Answer the question, “What needs to be done in order to achieve that strategy?”  Include

due dates, assign responsibility, and project costs to include with your action and timeline
Example:  Define capacity of bags by researching customer usage trends.
Due:  Month 3     Responsibility:  Product Manager      Cost:  $100
Monitoring Activities:  These activities are the way we measure how well our strategies are working. From these measurements we can also make any needed strategy

adjustments.  They can relate to any element: objective, strategy, action.  Usually they need to be conducted on a regular basis. While the task may not require a

monitoring activity for each element of the marketing mix, it is a good exercise to measure the effectiveness of strategies in each area.  Be sure to assign

responsibility and define when the measurements will be taken
Example:  The product manager will examine monthly sales results of bag sizes to determine if sizes are maximizing customer value.
Frequency:  Monthly        Responsible Party:  Product Manager

Copy your Target Market from Section A.  Then derive objectives, strategies, tactics, and monitoring procedures that support the mission for each element of the

Marketing Mix.
Mission Statement    We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.

Target Market
C.1:  PRODUCT
Objective:
Strategy 1:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 2:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 3:
Action/Tactic:
Due Date:    Responsible Party:
Monitoring Activity:
When/Frequency:    Responsible Party:

C.2:  PRICE
Objective:
Strategy 1:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 2:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 3:
Action/Tactic:
Due Date:    Responsible Party:
Monitoring Activity:
When/Frequency:    Responsible Party:

C.3:  PLACE
Objective:
Strategy 1:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 2:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 3:
Action/Tactic:
Due Date:    Responsible Party:
Monitoring Activity:
When/Frequency:    Responsible Party:

C.4: PROMOTION
Objective:
Strategy 1:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 2:
Action/Tactic:
Due Date:    Responsible Party:
Strategy 3:
Action/Tactic:
Due Date:    Responsible Party:
Monitoring Activity:
When/Frequency:    Responsible Party:

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