Chapter 1 The Marketing Plan as a Business

Chapter 1 The Marketing Plan as a Business Document

Chapter 2 The Framework for Marketing Planning

an mp Co Context © 2018 Alexander Chernev s Competitors r to Customers ra bo lla Co y Figure 1. Identifying the Target Market: The 5 -C Framework

Figure 2. Defining the Value Exchange Company Value Customers Collaborators Value Competitors Context © 2018 Alexander Chernev

Figure 3. The 3 -V Market Value Principle Company value Customer value © 2018 Alexander Chernev OVP The Optimal Value Proposition Collaborator value

Figure 4. Marketing Tactics: The Seven Attributes Defining the Market Offering Company value Customer value OVP Collaborator value Strategy Tactics Market Offering Product © 2018 Alexander Chernev Service Brand Price Incentives Communication Distribution

Figure 5. Tactics as a Process of Designing, Communicating and Delivering Value Designing value © 2018 Alexander Chernev Product Service Brand Price Value Incentives Communication Distribution Communicating value Delivering value

Figure 6. Marketing Tactics: Company Actions and Customer Impact © 2018 Alexander Chernev Company actions Customer impact Designing the offering Attractiveness of the offering Communicating the offering Awareness of the offering Delivering the offering Availability of the offering

Figure 7. The Market Value Map Target Market Offering Customers What customer need does the company aim to fulfill? Who are the customers with this need? Collaborators What other entities will work with the company to fulfill the identified customer need? Company What are the company’s resources that will enable it to fulfill the identified customer need? Competition What other offerings aim to fulfill the same need of the same target customers? What are the key features of the company’s product? Service What are the key features of the company’s service? Brand What are the key features of the offering’s brand? Price Context What are the sociocultural, technological, regulatory, economic, and physical aspects of the environment? What is the offering’s price? Incentives Value Proposition Customer Value What value does the offering create for target customers? Collaborator Value What value does the offering create for the company’s collaborators? Company Value What value does the offering create for the company? © 2018 Alexander Chernev Product Strategy What incentives does the offering provide? Communication How will target customers and collaborators become aware of the company’s offering? Distribution How will the offering be delivered to target customers and collaborators? Tactics

Figure 8. The G-STIC Framework for Marketing Management Goal Business model Strategy Tactics Implementation Control © 2018 Alexander Chernev

Figure 9. The G-STIC Action-Planning Flowchart The ultimate criterion for success Goal Focus Benchmarks Strategy Target market Value proposition Tactics Product Service Brand Price Incentives Communication Distribution Implementation Development © 2018 Alexander Chernev The specifics of the market offering The logistics of creating the offering Deployment Monitoring goal progress Control Performance The value created in the target market Environment

Chapter 3 Writing a Marketing Plan

Executive Summary What are the key aspects of the company’s marketing plan? Situation Overview Company What are the company’s history, culture, resources, offerings, and ongoing activities? What are the key aspects of the markets in which the company competes? Market Goal What is the key performance metric the company aims to achieve with the offering? Focus What are the criteria (temporal and quantitative) for reaching the goal? Benchmarks Strategy Target market Who are the target customers, competitors, and collaborators? What are the company’s resources and context? Value proposition What is the company’s value proposition for target customers, collaborators, and the company? Tactics What are the product, service, brand, price, incentives, communication, and distribution aspects of the offering? Market offering Implementation Deployment Development How is the company offering being developed? What processes will be used to bring the offering to market? Control How will the company evaluate the progress toward its goal? Performance Exhibits What are the details/evidence supporting the company’s action plan? © 2018 Alexander Chernev Environment How will the company monitor the environment to identify new opportunities and threats?

Appendix C Developing a Communication Plan

Executive Summary What are the key aspects of the company’s communication campaign? Situation Overview Company What are the company history, culture, resources, offerings, and ongoing activities? Market What are the key aspects of the market in which the company competes? Goal Focus What is the focus of the company’s communication? What are the temporal and quantitative benchmarks for reaching the goal? Benchmarks Strategy Who is the company’s target audience? Audience Message What is the message the company aims to communicate? Tactics Media Where will the audience encounter the company’s communication? Creative How will the company’s message be expressed? Implementation Development What resources need to be developed/acquired to communicate the company’s message? What is the process of bringing the company’s message to the target audience? Deployment Control How will the company evaluate the effectiveness of the communication campaign? Performance Exhibits What are the details/evidence supporting the company’s communication plan? © 2018 Alexander Chernev Environment How will the company monitor the environment to identify emerging opportunities and threats?

Appendix D Developing Meaningful Exhibits

Figure 1: Organizing the Information Presented as a Table Label Title Outline Body Note Source © 2018 Alexander Chernev Exhibi t Price Elasticity Analysis Price and Cross-Price Elasticities of Coke, Pepsi, and RC Cola in Market X Brand Coke Pepsi Coke -1. 9 0. 4 0. 8 Pepsi 0. 4 -2. 2 0. 7 RC Cola 0. 2 -3. 1 RC Cola Emphasis Note: Cell numbers indicate the percentage change in sales volume resulting from a percentage change in price. Diagonal cells indicate a brand’s own price elasticity. Off-diagonal cells indicate the effect of price change of brands listed in the top row on sales volume of brands listed in the first column. Source: Proprietary data

Figure 2: Organizing the Information Presented as a Figure Label Titl e Outline Exhibit 2 Sales Revenue Results and Projections Sales revenues of Company X, in millions U. S. dollars Units Sold 82. 1 80 62. 3 74. 8 60 Body 40 287% Emphasis 28. 6 20 1 Q Note Source © 2018 Alexander Chernev 2 Q 3 Q 4 Q Note: Sales revenue data exclude revenues from international operations. Fourth quarter sales are projections Source: Proprietary data

Figure 3. Line Chart 30 Brand A Brand B 20 10 2015 © 2018 Alexander Chernev 2016 2017 2018

Figure 4. Column Charts 80 80 60 60 40 40 20 20 2016 2017 Brand A Brand B 2016 2018 Single-Column Chart 2018 Grouped-Column Chart 100 80 Brand A 60 Brand B 40 20 2016 2017 2018 Subdivided Chart Showing Actual Values © 2018 Alexander Chernev 2017 2016 2017 2018 Subdivided Chart Showing Percentages

Figure 5. Bar Charts Brand A Current Brand A Potential Brand B Brand C 0 10 20 30 40 Single Bar Chart © 2018 Alexander Chernev 50 0 10 20 30 40 Subdivided Bar Chart 50

Figure 6: Pie Chart Offering A Offering B Brand A Brand D Brand B Offering C Brand C Pie Chart © 2018 Alexander Chernev Bar of Pie Chart Product X Product Y Product Z

Figure 7. A 2 x 2 Matrix © 2018 Alexander Chernev Current customers New customers Current products Market penetration Market development New products Product development Diversification

Figure 8. Perceptual Map Attribute 1 Offering A Offering B Offering C Attribute 2 Offering E Offering D © 2018 Alexander Chernev

Figure 9. Flowchart Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Idea discovery Concept development Business model design Offering development Commercial deployment Gate 1 Idea validation © 2018 Alexander Chernev Gate 2 Concept validation Gate 3 Business model validation Gate 4 Offering validation

Figure 10. Project-Management Chart Timeline (weeks) Activity 1 2 3 4 5 6 7 8 9 10 Activity A Team 1 Activity B Activity C Activity D © 2018 Alexander Chernev Team 2 Team 3 Team 4

Figure 11. Functional Organizational Chart Top Management Business Unit A © 2018 Alexander Chernev Business Unit B R&D Manufacturing Marketing Finance

Appendix E Relevant Frameworks

Figure 1. The SWOT Framework © 2018 Alexander Chernev Favorable factors Unfavorable factors Internal factors Strengths Weaknesses External factors Opportunities Threats Company analysis Market analysis

Figure 2. The Five Forces of Competition New entrants Suppliers Competitors Substitutes © 2018 Alexander Chernev Buyers

Figure 3. The Product-Market Growth Framework © 2018 Alexander Chernev Current customers New customers Current products Market penetration Market development New products Product development Diversification

Figure 4. The 4 -P Framework Product Service Brand Price Value Incentives Price Promotion Communication © 2018 Alexander Chernev Distribution Place

Figure 5. The Product Life Cycle Framework Sales Introduction Growth Maturity Small Moderate Large Moderate/Small Market growth Low High Low Negative Competition Low Moderate High Moderate/Low Market size © 2018 Alexander Chernev Decline Time

Figure 6. The Critical Path Method D 4 5 7 A C 2 2 B © 2018 Alexander Chernev 6 E

Figure 7. The Responsibility Assignment Matrix Activity A Activity B Activity C Activity D © 2018 Alexander Chernev Responsibilities Role/Team 1 Role/Team 2 Role/Team 3 Role/Team 4

Figure 8. Gantt Matrix Timeline (weeks) Activity A Activity B Activity C Activity D © 2018 Alexander Chernev 1 2 3 4 5 6 7 8 9 10

Appendix F Essential Marketing Concepts

Figure 1. Push and Pull Promotions Manufacturer Communication Incentives Demand Manufacturer Retailer © 2018 Alexander Chernev Retailer Communication Incentives Demand Customers Push promotions Pull promotions