METANOTES Executive Summary > > > > > > THE BIG IDEA: > > > > The METANOTES team will build the best system for note-taking ever > > invented. Obvious lock-in, network-effect, and value-creation > > opportunities will generate for us a portfolio of sustainable > > competitive advantage. We will establish an “immortal brand” > > associated with providing value surrounding the eternal, nearly > > universal task of “taking notes”. We will capture value initially > > through cost-per-click advertising, upgrade subscriptions, affiliate > > sales, and ultimately by selling this system to the enterprise, > > ideally with a powerful partner such as IBM or Red Hat, with whom we > > have been building bridges both technically and through executive > > contact. > > > > > > HOW WE WIN: > > > > 1) create the best collaboration/composition product (which is a > > cognitive battle as much as a technological one) > > 2) market it effectively among SMARTPHONE USERS and STUDENTS > > 3) get these users to use it obsessively and practically – become > > their total notetaking solution > > 4) turn this momentum into strategic partnerships and investment > > 5) develop an enterprise-class edition of the product to sell at > > market-share-capturing price > > > > > > VALUE PROPOSITION: > > > > The METANOTES system, including the Twitter-like “TIME-LOG” product, > > meets core needs for our users: > > * taking notes (and reviewing notes taken when needed) > > * creating projects, setting goals and tracking them over time > > * saving and sharing web content (text, images, video, widgets) in > > “web scrapbooks” > > * collaborating in a “notes network” (including community and commerce) > > * publishing and advertising > > > > METANOTES provide a substitute for needs currently met by simple > > programs such as MemoPad and WordPad; as we develop a whole product, > > we constitute a threat to Microsoft Office Word and all wiki > > companies. We provide a complement to Web 2.0 projects such as > > YouTube, Facebook, Twitter, Google Docs, Gmail and 30Boxes. METANOTES > > is like an “operating system” for users of these sites. > > > > Beyond meeting these core needs, MetaNotes is also a simple and > > feature-rich tool for grabbing content from the Web, adding one’s one > > annotation, and arranging text, images, audio and video on a page for > > personal or shared use. As users grow accustomed to MetaNotes, they > > will use it in creative ways to build content pages for one another as > > well as our social network community. > > > > > > ORGANIZATIONAL STRUCTURE: > > > > Three teams constitute our firm: > > * Product Development – headed by CEO Srini Kumar and CTO John Beppu > > * Marketing – headed by VP Emery Dora > > * Network Development – headed by VP Matt Madsen > > > > Product Development will develop a continually expanding and improving > > product and set of surrounding options, ultimately creating solutions > > fit for enterprise needs. Marketing will proliferate the system to > > segment after segment. As the system improves, more smartphones are > > sold, and network effects take hold, comparisons between our platform > > and existing note-taking solutions will break our way. Network > > Development is in charge of a) promoting and sustaining deep USAGE > > among current members of the community, b) developing API bridges to > > other networks, and c) overseeing value capture through revenue > > generation activities and partnerships. > > > > > > MARKET STRUCTURE: > > > > This is a winner-take-all market, involving firms as small as freeware > > wiki projects and as large as Google and Microsoft. This market, > > especially when it spreads to the enterprise in force during 2009, > > will be worth a lot of money. The competitive battlefields are: 1) > > product superiority along a host of dimensions 2) market acceptance > > and deep usage 3) compatibility across systems 4) reliability and > > flexibility and 5) segment selection. The only major business model > > in this space is in enterprise adoption; advertising, as discovered by > > Web 2.0 projects like Facebook and Twitter, can only take a firm so > > far. We are aimed at creating and selling “ENTERPRISE METANOTES” next > > year, ideally working with a strategic partner such as IBM or Red Hat. > > > > The Web 2.0 segment of the Internet industry is characterized by great > > branding, wild leaps in user value and involvement, and a superheated > > acquisition environment in which startups barely a year old are > > acquired for billions. MetaNotes intends to capitalize on that growth. > > > > > > MARKETING STRATEGY: > > > > Pre-funding, we select SMARTPHONE USERS for our marketing promotion. > > Our product for smartphones – a “killer app” called TIME-LOG – is > > nearly ready for beta launch; its quality means we can market it > > through publicity and perhaps develop partnerships. We select THE > > STUDENT SEGMENT for our marketing and product development investments > > once this product is on its way to market acceptance; ideally this > > outreach will be coincident with closing a round of funding. > > > > The usage of METANOTES among students will provide proof to enterprise > > collaboration shoppers, giving us a springboard into enterprise next > > summer. We are certain that we can market effectively to this segment > > based on our team’s experience as well as the initial rationale for > > our having developed this system in the first place. We have > > test-marketed METANOTES at South By Southwest Interactive with highly > > satisfactory results and believe we can operationalize our marketing > > promotions effectively given adequate resources. > > > > > > KEY MILESTONES: > > > > already achieved: WINNER: 2008 South By Southwest Interactive Web Award > > > > 1) Complete and launch the dual product: TIME-LOG and METANOTES. > > 2) Establish and publicize TIME-LOG inexpensively: THE BEST > > NOTE-TAKING PLATFORM FOR YOUR SMARTPHONE. > > 3) Get students taking notes with TIME-LOG + METANOTES during and > > after Back To School 2008. > > 4) Enter Enterprise Collaboration market with STRATEGIC INTENT of > > triggering a wave of substitution from: > > * Microsoft Office > > * Enterprise Wikis and Social Networks > > * In-House Collaboration Initiatives > > > > > > PRODUCTS AND SERVICES > > > > METANOTES Inc. has already created a SaaS platform for “note-taking” > > using an interface that looks like “Post-It Notes” and sprawls > > invitingly across an Excel-like scrolling workspace. Many MetaNotes > > are visible on one “space”; an account can contain multiple worksheets > > (we may charge past a certain number). Our distinctive interface style > > is recognizable from twenty feet away on a standard laptop screen. > > This gives the user a unique overview of many ideas in one glance, and > > the ability to rearrange notes at will makes MetaNotes an ideal > > brainstorming and composition tool. A MetaNote can contain text, > > images, video or audio, letting users make “video mixtapes”, and can > > be dragged and resized magically using technology not seen elsewhere. > > METANOTES resembles an OPERATING SYSTEM FOR WEB 2.0 rather than a > > website or application. > > > > Our four most common usages at this time are: > > * a simple scrapbooking tool for events and research > > * a way to make video walls (or video “mixtapes”) for sharing > > * setting up personal and project profiles and blog content > > * collaboration and project management – our ultimate product marketing > aim. > > > > MetaNotes is incredibly easy to use. New users are treated to > > delightful and highly targeted introductory experiences such as > > building out a “GOALS” worksheet through a wizard-driven interface or > > watching a video about how to best use MetaNotes to lead a study > > group. We will create user-friendly marketing materials (such as > > “cheat sheets” for common shortcuts) as well as a community where > > MetaNotes users can ask and answer questions. Marketing will include > > “the METAPAD”, a notepad optimized for pen-and-paper notetaking that > > gets uploaded into METANOTES, distributed by college interns. > > > > We will sell upgraded features to accounts, creating Basic (free), > > Gold, Platinum, Education and Enterprise editions of the core software > > at tiered monthly (or yearly at a discount) subscription pricing. A > > MetaNotes account is simple to get started to use, but incredibly > > involving, much as a Microsoft Office application might be. It’s > > Google Docs with a “social networking” and (eventually) an > > eBay/Amazon/HotorNot twist through which our users will buy and sell > > real and “virtual” goods. The prototype is currently hosted on a > > prototype site, which will be transferred to MetaNotes.com before > > launch. > > > > In addition, “implementations” of the MetaNotes interface technology > > will be created to provide specialized vertical social networks either > > on subdomains from MetaNotes.com or on other domains such as > > PeopleMath.com and the-time-log.com. These vertical networks will each > > be centered around a targeted business model, such as auctions, online > > dating, business planning, or travel, and will attract deeply > > segmented audiences for which our firm will staff up with topic > > experts. Key to our planning process is the uncertainty of what within > > our product is inimitable; if we are able to secure and defend our > > product dominance, we may be able to create many different business > > models to make the most of the Internet traffic our properties will > > generate. Finally, our integrated TIME LOG (“your private journal”) > > showcases our capability for generating many monetizable smartphone > > apps that link into METANOTES, extending our platform to the pocket. > > > > Our prototype can be viewed at this location: > > http://www.metanotes.com. To experiment with the prototype, register > > a new account and just get started creating and sharing notes, which > > can be moved around and resized at will, and which can stretch far > > across the page. With real-time sharing, this is a new kind of CHAT. > > > > > > > > THE COMPANY > > > > MetaNotes, Incorporated, a Delaware Corporation based in North > > Carolina, provides a Web 2.0 note-taking tool to students, > > entrepreneurs, and others who rely on taking notes and want to do so > > online. > > > > The company’s stock is currently held by President and CEO Srini Kumar > > (based in Hollywood CA), with an assignation of work pending in > > exchange for equity with the primary coder, CTO John Beppu (based in > > Pasadena, CA) and equity packages also pending for VP’s Emery Dora and > > Matt Madsen.

• Offer brief explanation for why this plan was produced
  • e.g., introduce new product, enter new markets, continue growth of existing product, yearly review and planning document, etc.
• Suggest what may be done with the information contained in the plan
  • e.g., set targets to be achieved in the next year, represents a departmental report to be included in larger business or strategic plan, etc.

• Identifies a stable (i.e., not dramatically changing every year), long-run vision of the organization that can answer such questions as:
  • Why is the company in business?
  • What markets do we serve and why do we serve these markets?
  • In general terms, what are the main benefits we offer our customers?
    • e.g., a low price software provider may state they offer “practical and highly affordable business solutions”
  • What does this company want to be known for?
  • What is the company out to prove to the industry, customers, partners, employees, etc.?
  • What is the general corporate philosophy for doing business?
  • What products/services does the company offer?
• In developing the vision presented in the mission statement consider:
  • Company History
    • How company started and major events of the company, products, markets served, etc.
  • Resources and Competencies
    • Consider what the company currently possesses by answering the following:
      • What are we good at?
      • What is special about us compared to current and future competitors (in general terms do not need to mention names)?
      • What do we do that gives us a competitive advantage?
    • Consider the questions above in term of:
      • people, products, financial position, technical and research capabilities, partnership/supply chain relations, others
  • Environment
    • Consider the conditions in which company operates including:
      • physical (e.g., facilities), equipment, political regulatory, competitive, economic, technological, others

In this section identify the general marketing strategy under which this plan is being developed. It is very possible that a product will follow more than one strategy (e.g., sell more of same product to current customers but also find new customers in new markets). Plan developers may get some guidance and also rationale for strategy by examining results from the Situational Analysis. In particular, planners may look to strategies that are suggested within the scope of Product/Market Analysis Tools. Additionally, planners should refer to the Mission Statement in Step 1 to insure strategies are in line with how the company views itself. (Page length: less than 1 page)

Strategies generally fall under one of the following (or in some cases more than one) ideas:

• Market growth (see ansoff matrix)
  • Higher market penetration
    • Sell more to same market (i.e., get current customers to buy more or buy more frequently)
      • If overall market is growing this may not necessarily mean a growth in overall market share
      • If overall market is not growing this means a growth in overall market share
  • Find new markets
    • Sell to markets or market segments not previously targeted
  • Develop new products for existing customers
  • Develop new products for new customers
• Market stability
  • Techniques to keep the status quo
    • Primarily used in times of economic decline or market decline
    • Generally requires the taking of market share from others in the industry
• Cost control
  • Techniques to contain costs or operate more effectively
    • Can work in combination with market growth or market stability
• Market exit
  • Techniques to depart a market

Those reading a marketing plan need a clear picture of the direction the product will take. Also, they want to see that some accountability has been built into the plan so that the plan is not just fluff but results in measurable actions. The best way to provide this information is through a section devoted to identifying the key strategies and objectives for the product(s).

This section consists of three major issues:

• Marketing Strategy
• Financial Objectives
• Marketing Objectives

For many organizations the ultimate goal of the marketing plan is the effect it will have on the bottom line. Measures reflect income statement items and common ratios. (Page length: less than 1 page)

• Customer sales
  • by volume and growth percentage
  • by segments
• Channel sales
  • by volume and growth percentage
  • by channel
• Margins
• Profitability
• Ratios
  • use common financial ratios and other metrics associated with marketing in the industry

Part 1 of the plan is designed to provide the reader with the necessary information to fully understand the purpose of the marketing plan. This part also includes organizational background information, which may be particularly important if the audience for the plan is not familiar with the company, such as potential financial backers. Some of the information, in particular the mission statement, may require the input of upper-management. The information in this part will prove useful later in the plan as a point of reference for material that will be introduced (e.g., may help explain pricing decisions). In cases in which there are separately operated divisions or SBU, there may also be mission statements for each. (Length: one page or less)

This is the heart of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the objectives and goals established in Step 3. It is typically the longest section of the plan, often representing 50% or more of total page count.

In this section details and timetables are presented for six key decision areas:

• Target Markets
• Product
• Promotion
• Pricing
• Distribution
• Other Areas

Preferably this section includes a brief summary of current marketing decisions (see Situational Analysis) so readers of the plan can easily compare what was planned to what is planned.

If the target market remains the same as what was identified in the Situational Analysis then identifying the market will be relatively easy though justification for continuing with this market is required. For new markets a more detailed discussion is needed. This section also includes the sales forecast which is the driving force for all financial forecasts. Depending on the depth of detail sought in the marketing plan, it may be a good idea to include likelihood scenarios, such as best case, worst case, and probable case, when developing the sales forecast. (Length: 1-2 pages)

• Target market description:
  • Brief summary of current target market
  • Identify planned changes:
    • Summarize changes:
      • Describe using profile (e.g., demographic, psychographic, behavioral, etc. )
      • Describe how it will be accomplished
    • Justify planned changes:
      • Due to results
      • Due to research
      • Due to competition
      • Others
    • Describe target market tactics:
      • Objectives
      • Methods used change target market
      • Profile the target marketing
• Product positioning:
  • Brief summary of product postition
    • How does target market view product in relation to competitor’s products?
  • Identify planned changes:
    • Summarize changes in product positioning
    • Justify planned changes:
      • Due to results
      • Due to research
      • Due to competition
      • Others
  • Describe tactics to carryout changes
    • Objectives
      • e.g. what is desired position?
    • Methods used to change position
• Sales forecast for each product:
  • Brief summary of current sales
  • Identify changes
    • Summarize changes in forecast
    • Justify forecast (i.e., figures determined based on what information?)
  • Describe forecast
    • Objectives
    • Methods used to carry out
    • Numerical estimates
      • Categories:
        • Total
        • By segment(s)
        • By distribution channel
        • Others
      • consider likelihood scenario analysis

In this section discuss the decisions to be made for existing or new products and services. Make sure to consider all aspects of product decisions (branding, labeling, packaging) and not just the product itself. Also, keep in mind product decisions can also impact distributors (e.g., distributor’s response to packaging used to ship the product). (Length: 1-3 pages)

• Brief summary of current product decisions for users and distributors in terms of:
  • General description
    • e.g., category of product, product line information
  • Features/attributes offered
    • list key features
    • main benefits target market receives
  • Branding
  • Packaging
  • Labeling
• Identify planned changes:
  • Summarize changes
    • For new products
      • How was product developed?
      • Stage in development process
        • Timetable for availability
  • Justify changes:
    • Due to results
    • Due to research
    • Due to competition
    • Others
• Describe planned changes:
  • Identify changes directed to the targeted user market:
    • Objectives:
      • e.g., modify existing products, extend existing product line, develop new products, develop new uses/benefits for existing products, delete current product, etc.
    • Features/attributes offered
    • Branding
    • Packaging
    • Labeling
  • Identify changes to the distributor network:
    • Objectives:
      • e.g., improve distribution, improve protection, lower cost of handling, gain distribution, etc.
    • Features/attributes offered
    • Branding
    • Packaging
    • Labeling

Describe the decisions related to how the product will be promoted. In general, promotion consists of four major areas – advertising, sales promotion, public relations and personal selling – though not all may be used. Timetables for promotion are important since certain types of promotions (e.g., magazine ads, trade shows) require long lead times. Most information in this section can be shown in tables and graphs. Each of the four promotion areas is separated out, however, some planners find it easier to combine the areas. For instance, the promotional areas could be combined within special promotion programs, such as Holiday Promotion Program, Summer Promotion Program, etc. (Length: 1-4 pages)

• Brief summary of current promotional decisions for users and distributors in terms of:
  • General description for four promotional areas:
    • advertising
    • sales promotion
    • personal selling
    • public relations
  • Message/theme
  • Methods used:
    • Summarize methods used
    • Summarize spending for each method
  • Interrelation of four promotional areas
    • e.g., explain how advertising supports sales promotion
• Identify planned changes:
  • Summarize changes
  • Justify changes:
    • Due to results
    • Due to research
    • Due to competition
    • Others
• Describe planned changes:
  • Identify changes directed to the targeted user market:
    • General description for four promotional areas:
    • Objectives
      • Advertising – e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), response to competitor promotion, increase use or purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.
      • Sales promotion – e.g., build inquires, increase product trial, encourage repurchase, build traffic, support other promotions
      • Personal selling – e.g., new account development, account support/maintenance, increase product trial, encourage purchase/repurchase, build traffic, support other promotions
      • Public relations – e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)
    • Methods and message:
      • type and media used: e.g., ad type (e.g., television spots, Internet banner ads, roadside billboards, direct mail, etc.) , sales promotion type (e.g., coupons, demonstrations, etc.), selling type (e.g., sales force, call center), pr type (e.g., press release, pitch to magazines, etc.)
      • message conveyed
    • Spending and timetables
      • total
      • sub-divided by: *type
        • e.g., ad spending, sales force compensation

• media used
• targeted users

• Identify planned changes directed to the distributor network:
  • General description
  • Objectives
    • Advertising – e.g., build general awareness/inquiries, encourage product handling, shift awareness (e.g., change attitude), response to competitor promotion, increase purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.
    • Sales promotion – e.g., build inquires, encouraging inventory building, support other promotions, encourage handling of new products, obtain distributor assistance
    • Personal Selling – e.g., new account development, account support/maintenance, encourage purchase/repurchase/inventory building
    • Public Relations – e.g., build general awareness/inquiries/traffic, encourage distribution trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)
  • Methods and message
    • type and media
    • message conveyed
  • Spending and timetables
    • total
    • sub-divided by:
      • type
      • media used
      • targeted distributor network

This marketing tactics section lays out the distribution plan for the product or service. Distribution is a broad concept that includes all activities and entities (e.g., value chain partners) responsible for getting the product or service to the customer. Distribution costs can represent a high portion of the overall cost of the product so an efficient distribution system may be critical for marketing success. (Length: 1-3 pages)

• Brief summary of current distribution network/value chain decisions:
  • Types of channels used
    • direct – e.g., direct via sales force, Internet, etc.
    • indirect – e.g., retailers, wholesalers, agents
    • combination
  • Level of market coverage
    • intensive – e.g., mass availability
    • selective – e.g., wide availability
    • exclusive – e.g., restricted availability
  • Outlets handling product
    • types
    • number/level of penetration
    • geographic location
  • Perceived product positioning
    • in relation to competitors
  • Distribution costs
• Identify planned changes:
  • Summarize changes
  • Justify changes:
    • Due to results
    • Due to research
    • Due to competition
    • Others
• Describe planned changes:
  • Objectives
    • e.g., account development, gain distributor support, account maintenance, account penetration
  • Types of channels employed
  • Level of market coverage
  • Outlets handling product
  • Product positioning
  • Distribution costs

Pricing decisions can be a complicated undertaking that requires knowledge of the market, competitors, economic conditions and, of course, customers. For this section it is not necessary to provide extensive financial evaluation of the pricing decision since most of this will take place in Part 5 Budgeting and Implementation, however, the use of tables and graphs may be helpful in showing pricing trends and pricing decisions within various categories. (Length: 1-2 pages)

• Brief summary of current pricing decisions:
  • Describe pricing decisions by:
    • model/product
    • segment
    • channel
    • geography
    • other
  • Adjustments and Allowances
    • Discounting
    • Payment terms
• Identify planned changes
  • Summarize changes
  • Justify changes:
    • Due to results
    • Due to research
    • Due to competition
    • Other
• Describe planned changes:
  • Objectives
    • e.g., return on investment, market share, profit level, price leadership, match competition, etc.
  • Factors affecting price setting
    • Cost factors
      • Fixed costs to be covered
      • Variable costs
    • Customer expectations
    • Company expectations
      • e.g., margins, ROI
    • Demand Considerations
      • market elasticity
      • position on product life cycle
    • Competition
    • Economic conditions
    • Legal/regulatory considerations
  • Pricing Options
    • list, preferred or suggest pricing
    • adjustments and allowances
    • sub-divided by:
      • product/model
      • customer
      • channel
      • other

• Describe the target market approach:
  • What general strategy is used to reach targeted customers? Generally approaches include: mass market – aim to sell to a large broad market segmentation approach – aim to selectively target one (niche) or more markets
• Describe demographic/psychographic profile of the market:
  • Profile criteria may include:
    • gender, income, age, occupation, education, family life cycle, geographic region, lifestyle, attitudes, purchasing characteristics, etc.
• Describe the following characteristics of targeted customers:
  • Needs/benefits sought by market
  • Product usage
• Consider answers to these questions related to customers using the product such as:
  • who is using the product?
  • why do they use the product?
  • when do they use the product?
  • how is the product used?
• Product positioning
  • Evaluate how customers perceive the product in relation to competitor’s products or to other solutions they use to solve their problems
• Attitudes
  • What is the target market’s attitude regarding the company’s product?
  • What is the target market’s attitude regarding the general product category?
    • i.e., exam the general attitude regarding how products from all companies serve the target market’s needs
• Describe the purchasing process:
  • How does the target market make their purchase?
  • What does the decision-making process involve?
  • What sources of information are sought?
  • What is a timeline for a purchase (e.g., impulse vs. extended decision-making)?
  • Who makes the purchase?
  • Does user purchase or is other party responsible (e.g., parent purchasing for children)?
  • Who or what may influence the purchase?
• Provide market size estimates:
  • Keep in mind these are estimates for the market not for a specific product
• Provide size estimates for the potential market
  • What is the largest possible market if all buy?
• Provide estimates of size for the current target market
  • What percent of the potential market actually purchased?
• Provide estimates of future growth rates
  • At least through the timeframe for the plan (e.g., 1 year) but most likely longer (e.g., 3-5 year projections)

In this section include a discussion of other marketing decision areas. Two additional areas – customer support service and marketing research – are provided though it is possible others exist. (Length: 1 page or less)

• Customer Support Services
  • Brief summary of current customer support services decisions:
    • types offered:
      • e.g. call center, online, service desk, walk-up, on-site
    • customers being serviced:
      • e.g., current customers, potential customers, distributor network
    • service delivery method:
      • e.g., internally managed, contracted, partnership arrangement
  • Identify planned changes
    • Summarize changes
    • Justify changes:
      • Due to results
      • Due to research
      • Due to competition
      • Other
  • Describe planned changes
    • Objectives
      • e.g., availability, response time, satisfaction level
    • Types offered
    • Customers being serviced
    • Service delivery method
    • Spending and timetables

• Market Research
  • Brief summary of current market research efforts
    • Projects
      • e.g., completed, in process, under consideration
    • Research responsibility
      • e.g., internally managed, contracted, partnership arrangement
    • Identify planned changes
      • Summarize changes
      • Justify changes:
        • Due to results
        • Due to research
        • Due to competition
        • Other
    • Describe planned changes
      • Objectives
        • e.g., customer analysis, market analysis, competitor analysis, exploratory
      • Projects
      • Service responsibility
      • Spending and timetables

The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented. It covers much of the same ground covered in the Preparing Market Study Tutorial, so those preparing a Marketing Plan should check this out as well.

This part of the Marketing Plan is extremely important and quite time consuming. For many, finding the numbers may be difficult, especially for those entering new markets. Anyone in need of numbers should look the Finding Seconday Research Tutorial, which may offer ideas for locating the numbers Marketing Plan writers may need.

The situational analysis covers six key areas: product, target market, distribution, competitors, financial and other issues.

• Describe direct competitors in terms of:
  • Target markets served
  • Product attributes
  • Pricing
  • Promotion
  • Distribution including the distributor network
  • Services offered
• Discuss competitor’s strengths and weaknesses:
  • May need to consider much more than just marketing issues such as:
    • financial standing
    • target market perception
    • R & D capabilities
• Discuss competitive trends:
  • May need to include discussion of future competitive threats

• Current Sales Analysis
  • Overall industry sales and market share (for at least the last year)
    • total market sales
    • total for company’s product(s)
    • total for competition
  • By segments/product categories
    • total for segments/product categories
    • total for company’s product(s)
    • total for competition
  • By Channels of Distribution
    • total for each channel
    • total for company’s product(s) by channel
    • total for competition by channel
  • By Geographic Region
    • total for each region
    • total for company’s product(s) by region
    • total for competition by region
• Profitability Analysis
  • Revenues
    • For highly detailed plans break out into categories as shown above in the Current Sales Analysis section.
  • Marketing Expenses
    • Types:
      • Direct – those expenses that can be tied to the product
      • Indirect or Proportional – generally administrative or broad marketing expenses that may be assigned to a product based on some established criteria (e.g., a product’s percentage of overall company sales) Note: not all companies follow this approach
    • For highly detailed plans break out into categories as shown above in the Current Sales Analysis section.

Much of this information can be handled within a graphical format, such as tables and graphs, though a paragraph explanation of each is generally required. Make sure to include total dollar (or other currency) amounts as well as percentage market share. For more detailed marketing plans or for plans for seasonal products, providing monthly or even weekly sales figures may be required. Provide a spreadsheet-style layout showing detailed breakdown of marketing revenues and expenses. (Length: 2-4 pages).

Marketing success can be measured on several non-financial market metrics. These measure are important since these often shed light on underlying conditions and circumstances facing the company that are not easily seen within financial measures. For instance, a company may report strong sales for a product but market share information may suggest the product is losing ground to competitors. The marketing objectives section will indicate targets to be achieved across several marketing decision areas. To add additional strength to this section include marketing metrics where possible. (Page length: less than 1 page)

• Target market objectives
  • market share
    • total
    • by segments
    • by channel
  • customers
    • total
    • number/percentage new
    • number/percentage retained
  • purchases
    • rate of purchases
    • size/volume of purchases
• Promotional objectives
  • level of brand/company awareness
  • traffic building
    • (e.g., store traffic, website traffic)
  • product trials
    • (e.g. sales promotions, product demonstrations)
  • sales force
    • (e.g. cycle time, cost per call, closing rate, customer visits, etc.)
• Channel objectives
  • dealers
    • total
    • number/percentage new
    • number/percentage retained
  • order processing and delivery
    • on-time rate
    • shrinkage rate
    • correct order rate
• Market research objectives
  • studies initiated
  • studies completed
• R&D objectives
  • product development
• Other objectives
  • partnerships developed

In many ways this part of the marketing plan is the area that will ultimately “sell” the plan to those who have the power to give final approval. This step consists of three key topics:

• Marketing Budget – presents a clear picture of the financial implications of the plan
• Performance Analysis – presents the expected results of the plan including its financial impact
• Implementation Schedule – shows timelines and identify those responsible for performing tasks

This section should lay out spending requirements necessary for meeting the plan’s objectives. It is expected that several tables and graphs will be presented along with narratives explaining important budget issues. (Length: 2-3 pages)

• Outline spending requirements for each tactical marketing decision
  • Breakdown each tactical category
    • e.g., types of advertising, types of services offered, marketing research expense, etc.
  • Show detailed spending timetable by:
    • Month
    • Year
  • Show spending by:
    • Product (if plan is for more than one)
    • Segment/Geographic area
    • Distribution Network/Channel

This section should contain financial implications of the plan in terms of contributions to the company’s bottom line. HOWEVER, as was stated in the beginning of the Marketing Plan tutorial, the marketing plan is generally a component of a larger business plan. We do not cover a full financial discussion such as a full balance sheet, income statement, detailed ratio analysis, etc., though these could be included if necessary. Again, numerous tables and graphs should be presented. (Length: 2-3 pages)

• Marketing Contribution
  • Show revenue versus expenses for marketing decisions
    • Revenue should follow sales forecasts (see Part 4)
    • Show expenses by category (e.g., advertising) and sub-category (e.g., types of advertising)
  • Breakdown by:
    • Product
    • Segment/Geographic area
    • Distribution Network/Channel
• Breakeven Analysis:
  • Primarily for plans that involve the sale of tangible products, the breakeven analysis indicates the level of sales (generally described in terms of number of units sold) required before the company realizes positive marketing contribution.
  • Requires understanding of:
    • Fixed costs – cost that occur no matter level of sales
    • Variable costs – cost that may change as level of sales varies
  • Present as both graph and chart
    • Show breakeven point over level of sales volume
      • From zero through best scenario sales level
    • Show breakeven over time
• Ratio Analysis
  • Limit to important marketing ratios that are common to the industry
    • e.g., sales cycle, advertising-to-sales, conversions from trial to purchase, website traffic-to-search engine marketing, etc.

Provide a discussion of how and by whom the plan will be carried out. (Length: 1-2 pages)

• Detailed schedule of tasks and those responsible:
  • Breakdown by important tactical marketing decisions
    • Best presented in a Gantt chart format.
  • Identify those responsible for each important task:
    • If unsure leave generic
      • e.g., advertising agency, web hosting company, distributors, etc.

The final major section in the Marketing Plan prepares the reader for potential situations that may affect the plan. In this way the reader is provided with a somewhat more balanced picture of what the company may face as it attempts to implement the plan. (Length: 2-3 pages)

1. Internal Factors

• Discuss company factors that may affect the plan
  • e.g., loss of funding sources, loss of key personnel, current plan is linked to success to other products that may not reach their goals, production problems, etc.

2. External Factors

• Discuss outside factors that may affect the plan
  • e.g., supply chain problems, competitor reaction, technological developments, legal environment, societal changes, economic issues, governmental concerns, etc.

3. Research Limitations

• Discuss problems that may exist with the research information on which assumptions are being made
  • e.g., difficult to find solid data on a certain subject

• Product Attributes
  • Describe the main product features, major benefits received by those using the product, current branding strategies, etc.
• Pricing
  • Describe pricing used at all distribution levels such as pricing to final users and to distributors, incentives offered, discounts, etc.
• Distribution
  • Describe how the product is made accessible to final users including channels used, major benefits received by distributors, how product is shipped, process for handling orders, etc.
• Promotion
  • Describe promotional programs and strategies in terms of advertising, sales promotion, personal selling and public relations, how product is currently positioned in the market, etc.
• Services Offered
  • Describe support services provided to final users and distributors before, during and after the sale