MARKETING STRATEGY DEVELOPMENT

Company Products & Services

MARKETING STRATEGY DEVELOPMENT

CONTENTS

MARKETING STRATEGY DEVELOPMENT

As a general introduction to this section it is useful to define the Objectives facing the industry and make some broad statements as to where the company management may want to go in the next few years. This discussion relates to the Strategy or grand design to enable the industry to actually get there. This Strategy is a suggested battle plan using the resources of marketing, finance and processes elements; albeit, here one will emphasize the marketing elements.

One can, and should, use the scenarios and theoretical situations in order to illustrate the concept of strategy. Thus this section provides a large number of Scenarios which are available to ensure that corporate managers and/or prospective investors are aware and cognizant of many of the foreseeable eventualities.

Whether or not a particular company is a major player in the product Markets, with a noteworthy market share of the countries in which they operate, is not important - the essential question is whether the company wishes to evaluate the Marketing Strategy options and act accordingly.

Clearly companies feel that the product markets will continue to have high growth in the coming years and the Market data given below will confirm or deny this proposition. The company managers will seek to provide many reasons for the Medium and Long-Term growth of the product Markets. It is however necessary for any observer to ensure that this optimism is well founded.

Any manager seeking to invest in the industry must assume an ambitious objective - being the realization that the industry must retain, and expand, its share of the market in relation to competitive and parallel products.

The questions managers and potential investors must ask are:-

    Is product quality in the industry so well regarded that buyers are willing to pay a premium of 5 to 10 percent more than for comparable or parallel products?

    Are service factors in the industry considered the best by customers?

    Is the distribution system of the industry so structured that it can guarantee product and service delivery within a period less than competitors or parallel products suppliers in each of the national markets?

    Does the industry have dedicated distribution channels and do these channels carry other competitive or parallel products?

    Are the distribution channels for the industry of a unit size greater than their competitors or parallel products suppliers and do they thus have the necessary strengths and resources in their own local and/or national markets?

In the product industry, companies face significant and aggressive competitors:-

 

THIS SECTION COVERS THE COMPETITORS

These competitors are extremely unlikely to allow their opponents to gain any major competitive advantage in the near future.

BASIS FOR A MARKETING STRATEGY

MARKET SEGMENTATION

Market segmentation is the basic recognition that every market is made up of distinguishable segments consisting of buyers with different needs, buying styles, responses and product variations offered by the industry. No one offer or approach by the industry to the market will satisfy all buyers. Each segment of the market represents a somewhat different opportunity and the industry will need to study the opportunities in different parts of the market before making product positioning moves.

There is no unique way to segment a market and if the management of the industry has been professional they would already have found creative new ways of presenting and marketing their products and services.

The first objective is that of geographic segmentation and whilst companies cannot be strong everywhere it is necessary for the company management to seriously consider where geographically the best market potential will be found.

In general terms this section assumes that the potentially most valuable geographic markets for companies (within the national market) are as follows in terms of the trade cell:-

 

THIS SECTION COVERS THE TRADE CELL

There is obviously considerable scope for and nationally based company to improve its geographic coverage and the company's job is to study the propensity to consume, the growth rates of different regions and nations, find out where competitors are relatively weak (but the growth strong), and give top consideration to those markets which fulfill the criteria.

Another way to break down the product market is by End Uses and this too can prove useful in a geographic context.

Each discrete End Use calls for different types and mixes of product and services as well as defining different types of customers. An analysis must be made of the character, growth, and potential profitability of these different segments of the market.

The product markets can also be analyzed by buyer description variables; for example, type of buyer, customer size, customer class - customers can be classified by their buying motive (economy, quality, service, etc.) or some other variable. There are a host of alternative parts of the market on which the industry could concentrate.

The market can also be approached in terms of specific products and the industry can attempt to provide and market the best version of those types of products and services that will experience the most rapid growth in demand.

An easier course for any nationally based company is the provision of existing products in new geographic markets and the provision of new or improved products in existing geographic markets.

    Can the industry face the challenge of the development of its existing product ranges?

 

THIS SECTION COVERS THE PRODUCTS

MARKET POSITIONING

The second objective of the industry marketing strategy is to select a specific pattern of market concentration that will afford the maximum opportunity to the company management to achieve its leadership objective.

Companies cannot be everywhere and they must now go after more a viable market position which will afford better profitability and prospects for future success.

    Can the industry follow the principle of more aggressive target marketing?

    What makes any part of the market an attractive one for the industry?

The optimum target market segmentation for the industry would have four characteristics:

1) The market segmentation is of sufficient current size.

2) The market segmentation has the potential for further growth.

3) The market segmentation is not exclusively dominated by one competitor.

4) The market segmentation has some relative unsatisfied needs that a company can serve particularly well.

If company management decide to seek a leadership position in only one market segment, a so called single segment concentration strategy, this will undoubtedly hamper the long-term prospects for that company.

Usually one would expect company management to cultivate a mix of market segments that hopefully have synergistic relations, that is, where strength in one market segment gives the company an advantage in the other market segments. This strategy is called a multiple segment concentration.

The chosen company pattern of market concentration has set the course and determines the products the company will offer, the customers the company will serve, and the competitors the company will face.

In making Market Positioning decisions the industry needs to consider its existing strategic structure, its operational facets and its existing resources:

 

THIS SECTION COVERS THE OPERATIONS OF THE INDUSTRY

MARKET ENTRY STRATEGY

The third element of marketing strategy for company managers is to determine how to enter a target market segment. The company can proceed through acquisition, internal development, or collaboration with other companies. Indeed this section may represent a similar Market Entry Strategy for an investor in the industry.

Acquisition of an existing product or company is the easiest and quickest way to enter a new market as it obviates the costly and time-consuming process of attempting to build up internally the knowledge, resources and reputation necessary to become an effective participant in that part of the market. In fact, the following factors would favor acquisition:

1) The acquiring company has very little knowledge of the industry.

2) There is a strong advantage in entering the new market as soon as possible.

3) The predator would face several barriers to entry through internal development, such as patents, substantial economies of scale, closed or difficult-to-enter channels of distribution, costly advertising requirements, or lack of raw materials or other supplies.

Some companies prefer to achieve most of their growth through internal development. They feel that true leadership is only achieved by running their own new product or research and development effort; they might feel that acquiring a company will raise the brows of shareholders and others and/or face the possibility of running foul of competition or fair trading legislation; or indeed they could feel that the companies prone to acquisition are not very good or are too highly priced. Finally there may simply be no suitable companies available to acquire.

Entry into a new market or market segment may also be accomplished by collaboration with others to jointly exploit the new opportunity. A major advantage is that the risk is shared, and therefore reduced, for each of the participating companies. Another advantage may be that each company brings specific skills or resources whose lack makes it impossible for either company to venture by itself. In the best joint-venture combinations, there are not only complementary benefits but also a real synergy of resources and corporate thought.

One might suggest that most companies should rely primarily on internal development to secure its target market positions; but equally, for certain market opportunities, the company might move towards acquisition, and yet in other cases, might affect joint venture with other companies.

	MARKET POSITION
	Sufficient Current Market Segmentation
	Potential Growth for Market Segmentation
	Competitive Market Segmentation Position
	Unsatisfied Market Segmentation
	Competitor Dominated Market Segmentation

H87      Grid Definition

MARKETING-MIX

A vital constituent of marketing strategy is for the industry to determine how it will profile its products and services in order to attract and sell to the particular market segment. The key concept here is one of marketing mix.

Marketing mix is the set of controllable variables that the industry can use to influence the responses and thereafter purchases of potential customers.

Many variables qualify as marketing-mix variables and the industry tend to use a popular four-factor classification which they call the four P's:

 

 

 

The industry marketing management will contend that buyers are influenced by variables related to the product, the place, promotion and price.

Marketing mix functions, as a strategic concept, can be used by the industry to improve the market position for its products.

If one considers two important factors, being, quality -v- price a matrix can be formed for each of the products offered by the industry.

Nine different marketing-mix strategies can be generated:-

A premium strategy consists of offering a high-quality product at a premium price. This should be the strategy employed by the industry.

An average-quality strategy consists of offering an average product at an average price. This is a strategy for the complacent and soon leads to failure.

In many cases company managers should employ a penetration strategy, which calls for offering a superior-quality product at a medium price. If potential buyers can be convinced that products are of a comparable quality to that of competitors but priced at 10-15% less, they might make their purchase decision in favor of the company - thereby gaining market share.

Conditions have to be monitored and checked on an annual basis before a company can confidently select such a strategy and in truth it is not entirely sure if the industry has paid sufficient attention to this task.

First, company managers must really be convinced that the company's products possess the same high quality and performance characteristics as the competitors. This may not be so easy to demonstrate as may be supposed because many buyers judge the product by its price. Secondly, potential buyers must feel that the other elements of the marketing mix - such as service and associated products - are comparable for the company and its competitors. Thirdly, company managers must be sure that competitors will not react to the penetration strategy of the company by lowering their prices. This is a real and very likely possibility and in this case the company will neither gain market share nor recoup an adequate return on its investment. Finally, company managers must check that any proposed marketing-mix strategy is compatible with its other departments' resources and competence. The company must be sure that it can develop the quality products, achieve the necessary economies of scale, and handle the necessary cash flows called for by a penetration strategy.

	MARKETING MIX
	Product
	Place
	Promotion
	Price : Premium Strategy
	Average Strategy

H88      Grid Definition

TIMING STRATEGY

The final element of the industry marketing strategy is that of timing. Just because a company may have spotted a good market opportunity, set an objective and thereafter developed a marketing strategy does not mean it would, or indeed should, immediately enter the market. One may lose by moving too soon or too late and thus proper sequencing and timing are a key component of company strategy.

Let us return to the scenario where the company might decide that it would like to increase its penetration of a particular product range and market sector through a penetration pricing strategy. First, it must visualize the sequence of activities that it would have to initiate to launch this strategy. New products would have to be designed and tested with potential buyers; process and operational considerations would surface; distribution channels would have to be established and trained; and sales promotion would have to be prepared. These activities would have to be time estimated and sequenced so that company management could know how long it would be before it could launch its actual attack. These activities are even more critical during or soon after an acquisition as staff is lost, margins eroded and cash-flow reduced.

There is also the question of whether this is an opportune time for company managers to begin the activities in the strategic sequence. Is the company destined for stagnation or prosperity? Are the major competitors increasing their market share or are they minded and ready for an aggressive push? These and other questions must be faced by the industry in trying to determine the best moment to strike.

 

BASIS FOR MARKETING TACTICS

FORMULATING PLANS

Much of what we have described above can be regarded as basic strategic planning issues for the industry. The next step is the development of written plans in the form of specific targets, budgets, and work assignments which combine to formulate the tactics of accomplishing the given objectives.

The marketing objectives and targets form the backbone of the company manager's corporate plan. A commitment is made to achieve a certain level of sales, and then all of the resource decisions on marketing, processes, finance and personnel are made. Here we shall concentrate on the major concepts used in developing tactical marketing plans and budgets for the industry.

The precise tactics available to the industry are described (in the various following parts of this report) and this part of the report will simply look at the broad issues.

 

SALES TARGETS

The marketing plan begins with a statement of sales targets for each of the company's operational divisions and products. The sales target does not represent an arbitrary choice of a sales volume but instead emerges from an analysis of the profitability of different possible marketing strategies. The sales target is allocated to the performing units of the company, such as sales regions, sales districts, and finally individual salesmen. They often go under the name of sales quotas and are based on the past performance and estimated potential facing each of these units.

 

MARKETING BUDGET

To enable the various marketing tasks to be carried out, the company develops a total marketing budget and this budget is fully discussed in this report. Normally, the company sees the total marketing budget as some conventional percentage of the sales target. This marketing budget and the viewed percentage of targeted sales turnover varies for each operating division and product group. These variations are startlingly different in some cases.

Companies when entering a new market are especially interested in learning what the marketing budget-to-sales ratio is in the typical competitor company, although this information is usually highly confidential and not easy to obtain. Furthermore a particular competitor may spend more than the normal ratio in the hope of achieving a higher market share. Ultimately, company managers should analyze the marketing work that has to be done to attain a given sales volume or market share and then price this work; the result is the desired marketing budget.

 

MARKETING SPEND

The company has to decide how to allocate the total marketing budget for each operational division and product group to the various marketing-mix tools, such as advertising, sales promotion and personal selling.

Apparently the question of the relative emphasis of the tools is settled by the industry earlier in the forming of a marketing strategy. Yet there may still be conflict among those in different parts of the marketing operation as to how much money they need for their job. A sales manager usually feels that hiring one extra salesman for $10,000 per 3 months will do more good than placing a one-page ad in a magazine. The market research manager usually feels that spending $10,000 to get some basic information about customer needs is worth more than either of the two other uses of the money. Albeit it is clear that the opportunity cost of this book has in this circumstance been directed by the reader to this purchase - evidently the opportunity costs associated to Marketing-Mix decisions are varied and wide.

 

PRODUCT PRICING

Pricing is the fundamental revenue-producing element in the company marketing plan. The rough pricing guide-lines would be considered earlier as a matter of marketing strategy, but the plan requires a specific level of price to be set within the pre-defined strategic parameters. The planned realized price as well as the list price before discounts, promotions and allowances must be determined and the company's marketing management must carefully consider the three elements of demand, cost, and competition in setting the planned price.

 

MARKETING BUDGET ALLOCATION

Multi-product firms must resolve each year how much money to allocate to each of the products in its line. The product line consists of a mixed bag of new products that are fairly small but have bright futures; important products that have been around for a while and face continued strong demand; and other products, both large and small, that are the tried breadwinners of the past and are just limping along. The company has to make a basic determination of which products call for increased market budgets, which call for harvesting, and which call for reduced marketing budgets.

For example, one company competitor and prime practitioner of strategic planning, recently decided to put the maximum company resources into specific technology driven products - based on their highly leveraged total earnings growth in recent years - it decided on a level of steady reinvestment in the targeted product areas. It decided to disinvest in some smaller product areas; whilst conversely putting considerable funds into new venture opportunities. Company managers have to show the same resolve and determination if they are to succeed in the long-term.

These plan decisions - on sales targets, total marketing budget, marketing mix allocation, pricing, and marketing budget allocation to products - constitute the key components of the company's marketing programme.

 

MARKETING IMPLEMENTATION + CONTROL

A plan is nothing unless, as the saying goes, it degenerates into work and whilst the company's marketing plan is a blueprint for work and accomplishments, it should define what is supposed to be accomplished during each period along the way. Thus the company's product sales targets are stated not only in total and by performing units but also by periods, such as months and quarters. The same is true of the company's marketing budgets.

One of the major jobs of company functional managers, besides planning, supervising and doing, is controlling and each manager should know what to watch. The product sales managers scans each period the sales volumes and expenses of each sales effort against individual quotas and budgets; he monitors those periods which do not perform according to target; he resolves problems and shortfalls by constructive fire-fighting and implementing ready-formulated emergency plans; he analyses new and potential problem areas which may cause sales problems during the forecast period.

Simultaneously the company's sales director examines the actual sales of his operational units and brings in alternative plans when actual income deviates from targets. Even the Chief Executive of the company gets on the telephone when he looks at total sales for the period and they are below target.

This is only one aspect of the control system which the company calls the annual company plan. Company management also exercises profitability control by examining the real profitability of its various products, markets, and territories and different marketing channels. Finally, there is the major issue of strategic control, that is, whether the industry products, resources and objectives are properly matched to the right markets. In times of rapid change, the industry marketing strategy can easily become inappropriate to its opportunities and threats. The job of the Marketing Director is essentially to evaluate the final and ultimate Objectives of strategic control.

	MARKETING TACTICS
	Sales Targeting
	Overall Marketing Mix
	Product Pricing
	Marketing Budgets
	Marketing Control

H89      Grid Definition

MARKETING SUMMARY

The Marketing Management in the industry is the catalytic agent that interprets market needs and translates them into meaningful products and services. To do this, the industry management goes through a strategic-marketing process consisting of analyzing opportunities, choosing objectives, developing strategy, formulating plans and carrying out implementation and control.

The opportunities available to the industry are not simply the general opportunities in the environment - but that subset for which a particular operating unit would enjoy a differential advantage in carrying out marketing actions. It must have a set of distinctive abilities that match well the success requirements for effectiveness in that area. Company management can generate a systematic picture of its relevant opportunities by first considering intensive growth opportunities within its present product-market scope (such as market penetration, market development and product development), then considering integrative growth opportunities within its core marketing system (such as backward, forward and horizontal integration) and finally considering diversification growth opportunities outside of its core marketing system (such as concentric, horizontal and conglomerate diversification).

To choose among opportunities, the industry must refer to its basic purpose and mission, which should be defined in terms of meeting generic needs, not producing particular products. For any opportunity, it must develop a well-integrated set of objectives that are hierarchical, quantitative, realistic and consistent.

Whereas objectives are a statement of where the industry wishes to go, strategy is a grand design for getting there.

The major elements in formulating marketing strategy are; market segmentation, market positioning, market entry strategy, marketing-mix strategy and timing strategy.

A strategy must be translated into a concrete documented plan that specifies sales targets, budgets and work assignments. The key marketing decisions made in the plan are sales targets, total marketing budget, marketing-mix allocation, pricing and marketing budget allocation to products.

Finally, the work specified in the plan must be implemented and controlled. A good plan provides for periodic checking and corrective action by different levels of management. In addition to annual plan marketing, management must carry out profitability control and strategic control.

MARKETING OBJECTIVES

HISTORIC FINANCIAL DATA

MARKETING STRATEGY DEVELOPMENT ISSUES

F_H - FIN_HIST.HTM   HISTORIC FINANCIAL DATA

 Financial Definitions

---

MARKETING STRATEGY DEVELOPMENT FINANCIAL SCENARIOS
FINANCIAL DATA FORECAST

 

MARKETING STRATEGY DEVELOPMENT BALANCE SHEET FORECASTS

The MARKETING STRATEGY DEVELOPMENT FINANCIAL SCENARIOS BALANCE SHEET FORECASTS section gives a series of Balance Sheet Forecasts for the industry using a number of assumptions relating to the strategic marketing decisions available to the management of the industry.

The Balance sheet forecast given shows the effects of financial improvements which marketing Management is likely to recommend:

MARKETING STRATEGY DEVELOPMENT FINANCIAL SCENARIOS

- Base Forecast : Best Market Scenario
- Base Forecast : Median Market Scenario
- Base Forecast : Worst Market Scenario

- Marketing Expenditure
- Market Segmentation
- Distribution Channel Improvement
- Export Sales Improvement
- Fixed Marketing Cost Objectives
- Variable Marketing Cost Objectives
- General Marketing Process Cost Objectives
- Distribution & Product Delivery Cost Objectives
- Selling Cost Objectives
- Advertising Cost Objectives
- Promotional & Pricing Cost Objectives
- Sales Cost Improvement
- Promotional Expenditure
- Target Markets Development
- Product Positioning
- Product Branding + Multi-branding Investment
- Sales Personnel + Staff Improvement

Managers in the industry will, in both the short-term and the long-term, have vital decisions to make regarding the marketing improvements, margins and profitability and these decisions will need to be evaluated in light of the customers, markets, competitors, products, industry and internal factors. The scenarios given isolate a number of the most important factors and provide balance sheet forecasts for each of the scenarios.

The data provides a short and medium term forecast covering the next 6 years for each of the Forecast Financial and Operational items. The Financial and Operational Data sections show each of the items listed below in terms of forecast data and covers a period of the next 6 years.

Base Forecast : Best Market Scenario

F0M|     MEDIAN  FORECAST : Financials

G0M|     MEDIAN  FORECAST : Margins & Ratios

Base Forecast : Median Market Scenario

F0B|     BEST  FORECAST : Financials

G0B|    BEST  FORECAST : Margins & Ratios

Base Forecast : Worst Market Scenario

F0W|     WORST  FORECAST : Financials

G0W|     WORST  FORECAST : Margins & Ratios

Marketing Expenditure

F01 |     MARKETING EXPENDITURE : Financials

G01 |     MARKETING EXPENDITURE : Margins & Ratios

Market Segmentation

F03 |     MARKET SEGMENTATION : Financials

G03 |     MARKET SEGMENTATION : Margins & Ratios

Distribution Channel Improvement

F06 |     DISTRIBUTION CHANNEL IMPROVEMENT : Financials

G06 |     DISTRIBUTION CHANNEL IMPROVEMENT : Margins & Ratios

Export Sales Improvement

F11 |     EXPORT SALES IMPROVEMENT : Financials

G11 |     EXPORT SALES IMPROVEMENT : Margins & Ratios

Fixed Marketing Cost Objectives

F25 |     FIXED MARKETING COST OBJECTIVES : Financials

G25 |     FIXED MARKETING COST OBJECTIVES : Margins & Ratios

Variable Marketing Cost Objectives

F26 |     VARIABLE MARKETING COST OBJECTIVES : Financials

G26 |     VARIABLE MARKETING COST OBJECTIVES : Margins & Ratios

General Marketing Process Cost Objectives

F27 |     GENERAL MARKETING PROCESS COST OBJECTIVES : Financials

G27 |     GENERAL MARKETING PROCESS COST OBJECTIVES : Margins & Ratios

Distribution & Product Delivery Cost Objectives

F28 |     DISTRIBUTION & PRODUCT DELIVERY COST OBJECTIVES : Financials

G28 |     DISTRIBUTION & PRODUCT DELIVERY COST OBJECTIVES : Margins & Ratios

Selling Cost Objectives

F30 |     SELLING COST OBJECTIVES : Financials

G30 |     SELLING COST OBJECTIVES : Margins & Ratios

Advertising Cost Objectives

F31 |     ADVERTISING COST OBJECTIVES : Financials

G31 |     ADVERTISING COST OBJECTIVES : Margins & Ratios

Promotional & Pricing Cost Objectives

F32 |     PROMOTIONAL & PRICING COST OBJECTIVES : Financials

G32 |     PROMOTIONAL & PRICING COST OBJECTIVES : Margins & Ratios

Sales Cost Improvement

F37 |     SALES COST IMPROVEMENT : Financials

G37 |     SALES COST IMPROVEMENT : Margins & Ratios

Promotional Expenditure

F40 |     PROMOTIONAL EXPENDITURE : Financials

G40 |     PROMOTIONAL EXPENDITURE : Margins & Ratios

Target Markets Development

F41 |     TARGET MARKETS DEVELOPMENT : Financials

G41 |     TARGET MARKETS DEVELOPMENT : Margins & Ratios

Product Positioning

F43 |     PRODUCT POSITIONING : Financials

G43 |     PRODUCT POSITIONING : Margins & Ratios

Product Branding + Multi-branding Investment

F44 |     PRODUCT BRANDING + MULTI-BRANDING INVESTMENT : Financials

G44 |     PRODUCT BRANDING + MULTI-BRANDING INVESTMENT : Margins & Ratios

Sales Personnel + Staff Improvement

F48 |     SALES PERSONNEL + STAFF IMPROVEMENT : Financials

G48 |     SALES PERSONNEL + STAFF IMPROVEMENT : Margins & Ratios

MKT_DEFI.HTM  MARKET DEFINITIONS

INDEX

Acquisition, 6
Advertising, 11, 19
Analyzing opportunities, 25
Associated Products & Services, 11
Average-Quality Strategy, 12

Balance Sheet Advertising Cost Objectives, 82
Balance Sheet Base Forecast : Best Market Scenario, 34
Balance Sheet Base Forecast : Median Market Scenario, 38
Balance Sheet Base Forecast : Worst Market Scenario, 42
Balance Sheet Distribution Channel Improvement, 54
Balance Sheet Distribution & Product Delivery Cost, 74
Balance Sheet Export Sales Improvement, 58
Balance Sheet Fixed Marketing Cost Objectives, 62
Balance Sheet General Marketing Process Cost Objectives, 70
Balance Sheet Historic, 28
Balance Sheet Market Segmentation, 50
Balance Sheet Marketing Expenditure, 46
Balance Sheet Product Branding + Multi-branding, 106
Balance Sheet Product Positioning, 102
Balance Sheet Promotional Expenditure, 94
Balance Sheet Promotional & Pricing Cost Objective, 86
Balance Sheet Sales Cost Improvement, 90
Balance Sheet Sales Personnel + Staff Improvement, 110
Balance Sheet Selling Cost Objectives, 78
Balance Sheet Target Markets Development, 98
Balance Sheet Variable Marketing Cost Objectives, 66
Bargain, 12
BASIS FOR A MARKETING STRATEGY, 3
BASIS FOR MARKETING TACTICS, 18
Branding, 11
Budgets, 18
Budget-to-sales ratio, 18
Buyer description variables, 4

Cheap, 12
Choosing objectives, 25
Collaboration, 6
Competitive Market Segmentation Position, 7
Competitor Dominated Market Segmentation, 7
Competitors, 2
Costs & Margins Historic, 29

Dedicated distribution channels, 1
Developing strategy, 25
Discounts & Promotional Offers, 11
Distribution channels, 1, 11
Distribution Coverage, 11
Distribution system, 1

End Uses, 4

Features & Options, 11
Financial data definitions, 115
Financial forecast notes, 32
Financial Ratios Advertising Cost Objectives, 84
Financial Ratios Base Forecast : Best Market Scenario, 36
Financial Ratios Base Forecast : Median Market Scenario, 40
Financial Ratios Base Forecast : Worst Market Scenario, 44
Financial Ratios Distribution Channel Improvement, 56
Financial Ratios Distribution & Product Delivery, 76
Financial Ratios Export Sales Improvement, 60
Financial Ratios Fixed Marketing Cost Objectives, 64
Financial Ratios General Marketing Process Cost, 72
Financial Ratios Market Segmentation, 52
Financial Ratios Marketing Expenditure, 48
Financial Ratios Product Branding + Multi-branding, 108
Financial Ratios Product Positioning, 104
Financial Ratios Promotional Expenditure, 96
Financial Ratios Promotional & Pricing Cost Objectives, 88
Financial Ratios Sales Cost Improvement, 92
Financial Ratios Sales Personnel + Staff Improvement, 112
Financial Ratios Selling Cost Objectives, 80
Financial Ratios Target Markets Development, 100
Financial Ratios Variable Marketing Cost Objectives, 68
Financial Ratios & Margins Historic, 30
FORMULATING PLANS, 18, 25

Geographic segmentation, 3
Guarantee product, 1

HISTORIC FINANCIAL DATA, 27
Hit & Run, 12

Implementation and control, 25
Internal development, 6

Loss-Leader, 12

Market concentration, 5
MARKET ENTRY STRATEGY, 6
MARKET POSITION, 7
MARKET POSITIONING, 5
MARKET SEGMENTATION, 3
MARKETING BUDGET, 18
MARKETING BUDGET ALLOCATION, 19
Marketing Budgets, 21
Marketing Control, 21
MARKETING IMPLEMENTATION + CONTROL, 20
MARKETING MIX, 13
Marketing mix allocation, 19
MARKETING OBJECTIVES, 26
MARKETING SPEND, 19
MARKETING STRATEGY DEVELOPMENT, 1
MARKETING STRATEGY DEVELOPMENT FORECASTS, 33
MARKETING SUMMARY, 25
MARKETING TACTICS, 21
MARKETING-MIX, 11
Marketing-Mix decisions, 19
Marketing-mix tools, 19
Multiple segment concentration, 5

Operational Costs Advertising Cost Objectives, 83
Operational Costs Base Forecast : Best Market, 35
Operational Costs Base Forecast : Median Market, 39
Operational Costs Base Forecast : Worst Market, 43
Operational Costs Distribution Channel Improvement, 55
Operational Costs Distribution & Product Delivery, 75
Operational Costs Export Sales Improvement, 59
Operational Costs Fixed Marketing Cost Objectives, 63
Operational Costs General Marketing Process Cost, 71
Operational Costs Market Segmentation, 51
Operational Costs Marketing Expenditure, 47
Operational Costs Product Branding + Multi-branding, 107
Operational Costs Product Positioning, 103
Operational Costs Promotional Expenditure, 95
Operational Costs Promotional & Pricing Cost, 87
Operational Costs Sales Cost Improvement, 91
Operational Costs Sales Personnel + Staff Improvement, 111
Operational Costs Selling Cost Objectives, 79
Operational Costs Target Markets Development, 99
Operational Costs Variable Marketing Cost Objectives, 67
Operational Facets, 5
Operational Margins Advertising Cost Objectives, 85
Operational Margins Base Forecast : Best Market, 37
Operational Margins Base Forecast : Median Market, 41
Operational Margins Base Forecast : Worst Market, 45
Operational Margins Distribution Channel Improvement, 57
Operational Margins Distribution & Product Delivery, 77
Operational Margins Export Sales Improvement, 61
Operational Margins Fixed Marketing Cost Objectives, 65
Operational Margins General Marketing Process Cost, 73
Operational Margins Market Segmentation, 53
Operational Margins Marketing Expenditure, 49
Operational Margins Product Branding + Multi-branding, 109
Operational Margins Product Positioning, 105
Operational Margins Promotional Expenditure, 97
Operational Margins Promotional & Pricing Cost, 89
Operational Margins Sales Cost Improvement, 93
Operational Margins Sales Personnel + Staff Improvement, 113
Operational Margins Selling Cost Objectives, 81
Operational Margins Target Markets Development, 101
Operational Margins Variable Marketing Cost Objectives, 69
Operational Ratios & Margins Historic, 31
Optimum target market, 5
Outlet Locations, 11
Overall Marketing Mix, 21
Overpriced, 12

P R & Publicity, 11
Packaging & Merchandising, 11
Parallel products, 1
Parallel products suppliers, 1
Payment & Terms of Trading, 11
Penetration, 12
Penetration pricing strategy, 17
Penetration Strategy, 12
Personal Contact, 11
Personal selling, 19
Place, 11, 13
Potential Growth for Market Segmentation, 7
Premium, 12
Premium Strategy, 12
Present Products -v- New Products, 17
Price, 11
Price : Average Strategy, 13
Price : Premium Strategy, 13
Pricing, 11, 19
Product, 11, 13
Product Availability -v- Locations, 11
Product Handling Factors, 11
Product positioning, 3
PRODUCT PRICING, 19, 21
Product quality, 1
Product Range, 4
Product Ranges, 11
Promotion, 11, 13

Quality, 11
QUALITY -v- PRICE, 12

Resource decisions, 18

Sales Promotion, 11, 19
Sales quotas, 18
Sales Targeting, 21
SALES TARGETS, 18, 19
Sales / Market Territories, 11
Sequencing and timing, 17
Service delivery, 1
Service factors, 1
Service level, 11
Shoddy, 12
Single segment concentration strategy, 5
Specific products, 4
Strategic sequence, 17
Style & Image, 11
Sufficient Current Market Segmentation, 7

Tactical marketing plans, 18
Target marketing, 5
Timing, 17
TIMING STRATEGY, 17
Total marketing budget, 19
Trade Cell, 3

Unsatisfied Market Segmentation, 7

Warranty & After-Sales, 11
Work assignments, 18

CONTENTS

acquisition
Advertising Cost Objectives
Advertising
advertising
analyzing opportunities
Associated Products & Services
Average-Quality Strategy
Bargain
Base Forecast : Best Market Scenario
Base Forecast : Median Market Scenario
Base Forecast : Worst Market Scenario
BASIS FOR A MARKETING STRATEGY
BASIS FOR MARKETING TACTICS
Branding
budget-to-sales ratio
budgets
buyer description variables
Cheap
choosing
collaboration
Competitive Market Segmentation Position
Competitor Dominated Market Segmentation
Competitors
dedicated distribution channels
developing strategy
Discounts & Promotional Offers
Distribution & Product Delivery Cost Objectives
Distribution Channel Improvement
distribution channels
Distribution Channels
Distribution Coverage
distribution system
End Uses
Export Sales Improvement
Features & Options
Fixed Marketing Cost Objectives
FORMULATING PLANS
formulating plans
General Marketing Process Cost Objectives
geographic segmentation
guarantee product
HISTORIC FINANCIAL DATA
Hit & Run
implementation and control work assignments
internal development
Loss-Leader
market
MARKET ENTRY STRATEGY
MARKET POSITION
MARKET POSITIONING
MARKET SEGMENTATION
Market Segmentation
marketing budget allocation
MARKETING BUDGET ALLOCATION
MARKETING BUDGET
Marketing Budgets
Marketing Control
Marketing Expenditure
MARKETING IMPLEMENTATION + CONTROL
marketing mix allocation
MARKETING MIX
MARKETING OBJECTIVES
MARKETING SPEND
MARKETING STRATEGY DEVELOPMENT FORECASTS
MARKETING STRATEGY DEVELOPMENT
MARKETING SUMMARY
MARKETING TACTICS
Marketing-Mix
marketing-mix tools
MARKETING-MIX
multiple segment
Operational Facets
optimum target market
Outlet Locations
Overall Marketing Mix
Overpriced
P R & Publicity
Packaging & Merchandising
parallel products suppliers
parallel products
Payment & Terms of Trading
penetration pricing strategy
Penetration Strategy
Penetration
Personal Contact
personal selling
Place
Place
Potential Growth for Market Segmentation
Premium Strategy
Premium
Present Products -v- New Products
Price : Average Strategy
Price : Premium Strategy
Price
Pricing
pricing
Product Availability -v- Locations
Product Branding + Multi-branding Investment
Product Handling Factors
Product Positioning
product positioning
PRODUCT PRICING
Product Pricing
product quality
Product Range
Product Ranges
Product
Product
Promotion
Promotion
Promotional & Pricing Cost Objectives
Promotional Expenditure
QUALITY -v- PRICE
Quality
resource decisions
Sales / Market Territories
Sales Cost Improvement
Sales Personnel + Staff Improvement
sales promotion
Sales Promotion
sales quotas
Sales Targeting
SALES TARGETS
sales targets
Selling Cost Objectives
sequencing and timing
service delivery
service factors
Service level
Shoddy
single segment concentration strategy
specific products
strategic sequence
Style & Image
Sufficient Current Market Segmentation
tactical marketing plans
target marketing
Target Markets Development
TIMING STRATEGY
timing
total marketing budget
Trade Cell
Unsatisfied Market Segmentation
Variable Marketing Cost Objectives
Warranty & After-Sales

MARKETING STRATEGY DEVELOPMENT
Competitors
BASIS FOR A MARKETING STRATEGY
MARKET SEGMENTATION
Trade Cell
Product Range
MARKET POSITIONING
Operational Facets
MARKET ENTRY STRATEGY
MARKETING-MIX
Product
Place
Promotion
Price
QUALITY -v- PRICE
Premium Strategy
Average-Quality Strategy
Penetration Strategy
TIMING STRATEGY
Present Products -v- New Products
BASIS FOR MARKETING TACTICS
FORMULATING PLANS
SALES TARGETS
MARKETING BUDGET
MARKETING SPEND
PRODUCT PRICING
MARKETING BUDGET ALLOCATION
MARKETING IMPLEMENTATION + CONTROL
MARKETING SUMMARY
MARKETING OBJECTIVES
HISTORIC FINANCIAL DATA
MARKETING STRATEGY DEVELOPMENT FORECASTS
MARKET POSITION
Sufficient Current Market Segmentation
Potential Growth for Market Segmentation
Competitive Market Segmentation Position
Unsatisfied Market Segmentation
Competitor Dominated Market Segmentation
MARKETING MIX
Product
Place
Promotion
Price : Premium Strategy
Price : Average Strategy
MARKETING TACTICS
Sales Targeting
Overall Marketing Mix
Product Pricing
Marketing Budgets
Marketing Control
Base Forecast : Best Market Scenario
Base Forecast : Median Market Scenario
Base Forecast : Worst Market Scenario
Marketing Expenditure
Market Segmentation
Distribution Channel Improvement
Export Sales Improvement
Fixed Marketing Cost Objectives
Variable Marketing Cost Objectives
General Marketing Process Cost Objectives
Distribution & Product Delivery Cost Objectives
Selling Cost Objectives
Advertising Cost Objectives
Promotional & Pricing Cost Objectives
Sales Cost Improvement
Promotional Expenditure
Target Markets Development
Product Positioning
Product Branding + Multi-branding Investment
Sales Personnel + Staff Improvement