608 Appendix A – Developing an Effective Marketing Plan
APPENDIX A
DEVELOPING AN EFFECTIVE MARKETING PLAN
OVERVIEW
“What are our mission and goals?” “Who are our customers?” “What types of products do we offer?”
“How can we provide superior customer service?” These are some of the questions addressed by a
marketing plan—a detailed description of the resources and actions needed to achieve stated marketing
objectives.
Chapter 2 discussed strategic planning—the process of anticipating events and market conditions and
deciding how a firm can best achieve its organizational objectives. Marketing planning encompasses all
the activities devoted to achieving marketing objectives, establishing a basis for designing a marketing
strategy. This appendix deals in depth with the formal marketing plan, which is part of an organization’s
overall business plan. At the end of this appendix, you’ll see what an actual marketing plan looks like.
Each plan component for a hypothetical firm called Blue Sky clothing is presented in the textbook.
LECTURE OUTLINE
Appendix A: Developing an Effective Marketing Plan
Key Terms: marketing plan, strategic planning, business plan, spreadsheet analysis
PowerPoint Basic: 2-11
PowerPoint Expanded: 2-15
1. Developing an effective marketing plan
a. Marketing plan refers to a detailed description of the resources and
2. Components of a business plan
a. The business plan puts in writing what all of the company’s
objectives are, how they will be met, how the business will obtain
financing, and how much money the company expects to earn over
a specified time period
enterprise, including:
Appendix A – Developing an Effective Marketing Plan 609
Figure A.1
Outline of a
Figure A.2
How Spreadsheet
Analysis Works
i. The marketing plan, which describes strategies for informing
potential customers about the goods and services offered by
3. Creating a marketing plan
a. The marketing plan is needed for a variety of reasons:
i. to obtain financing, because banks and most private
investors require a detailed business plan—including a
4. Formulating an overall marketing strategy
a. Before writing a marketing plan, a firm’s marketers formulate an
overall marketing strategy
b. A firm may use a number of tools in marketing planning, including
business portfolio analysis and the BCG matrix. Its executives may
conduct a SWOT analysis, take advantage of a strategic window,
study Porter’s Five Forces model as it relates to their business, or
consider adopting a first or second mover strategy
c. Marketers are also likely to use spreadsheet analysis—a grid of
columns and rows that organize numerical information in a
standardized, easily understood format.
i. Spreadsheet analysis helps planners answer various “what
if” questions related to the firm’s financing and operations
d. Once general planning strategies are determined, marketers begin
to flesh out the details of the marketing strategy
e. When marketers have identified the target market, they can develop
the optimal marketing mix to reach their potential customers:
iii. Promotional strategy. What mix of advertising, sales
promotion, and personal selling activities will the firm use to
reach its customers initially and then develop long-term
relationships?
610 Appendix A – Developing an Effective Marketing Plan
prices?
5. The executive summary, competitive analysis, and mission statement
a. Executive summary—answers the who, what, when, where, how,
and why questions for the business
6. Description of the company
a. May include a brief history or background of the firm, the types of
products it offers or plans to introduce, recent successes or
achievements
7. Statement of goals and core competencies
a. Goals should be specific and measurable and may be divided into
8. Outline of the marketing environment (situation analysis)
a. Covers the competitive, economic, political-legal, technological, and
social-cultural factors that affect the way a firm formulates and
9. The target market and marketing mix
10. Budget, schedule, and monitoring:
a. Every marketing plan requires a budget, a time schedule for
implementation, and a system for monitoring the plan’s success or
11. Sample marketing plan for Blue Sky Clothing, Inc.