Need an executive summary and P & L

TEAM TERM PROJECT FOR MARKETING 331

EACH TEAM WILL PREPARE A STRATEGIC MARKETING PLAN FOR “ITS” COMPANY'S INTRODUCTION OF A PRODUCT THAT WILL COMPETE WITH BRANDS IN A RECOGNIZED INDUSTRY SECTOR OR CATEGORY. The product you choose must be a manufactured good that is marketed to a consumer market. [If a team has a special reason for wanting to do a good aimed at a business market, it may explain its request to me in person.] The plan, which must have a well researched and analyzed situation analysis section, must clearly explain the rationale for the marketing strategy you develop; i.e., the target markets you select and the marketing mix strategies you create to satisfy the needs of the customers and/or consumers within those markets. Then, you must devise specific action programs that arise from those strategies. You must be aware of the costs involved and prepare an overall budget for the implementation of your plan, listing the costs of tactical programs. In addition, you must prepare a financial projection of the results that you predict by having a properly constructed 3 year Pro Forma P&L (income) statement. The control section of your plan should indicate how standards will be measured and the acceptable deviations from projected results. You should have contingency plans that state what will occur when actual results go outside of acceptable deviations.

Industry Examples: Consumer Package Goods; Health and Beauty Aids; Computer and Electronic Instrumentation; Consumer Electronics; Food and Beverage markets; etc.

THE PROJECT WILL CONSIST OF THE SUBMITTED MARKETING PLAN DOCUMENT AND AN ORAL PRESENTATION OF THAT MARKETING PLAN. The presentation will be made under a constrained time limit of 10 minutes, and you will present the marketing plan (using PowerPoint and any other visual aids you wish) as if you were seeking approval from the CEO or “Board” of your company (or other funding source if you decide to be a start-up) to provide the funds necessary to implement the plan.

Teams may arrange to speak to me after class or at any other mutually convenient time concerning any question you may have regarding this project.

Specific Instructions Follow:

I. I MUST PERSONALLY APPROVE OF YOUR SELECTION.

Before next week, submit your alternative choices to me in a type written and properly formatted business letter addressed to me at: Marketing Department, Lubin School of Business, Pace University, 1 Pace Plaza, New York, NY 10038. Send it to me by e-mail with the letter as an attachment in Word format. Be sure the e-mail indicates your Team number, MAR 331, and the purpose of the message being sent. [Remember, unlike reports, business letters are single spaced. The letter should be signed with the closing "Respectfully submitted" before your signatures, under which your names will be clearly typed.]

In the letter, briefly describe the nature of “your company or organization” and the product for which you would like to develop a marketing plan. Remember, it must be a consumer good – not a service. Describe one or two alternative products in case the first one is not acceptable. [Prior to submitting the letter, you may meet with me to gain my verbal approval of your product, but you must still submit the letter as a matter of form.] Also, list the products and companies with which you will be competing. Remember, you will have to discuss these companies and their "apparent" strategies in the situation analysis section of the plan.

Also, in the letter, indicate how you intend to go about researching the necessary information for your plan. [Indicate the types of secondary research sources you will use (e.g., which of the Pace Library Databases) and any primary research you intend to do (for example, personal or phone interviews with an executive or manager in a firm that is in the industry sector you are researching.] In addition, it is important that you state that you have actually found sources of market information that will give you the size of the market in dollar volume for the industry your product is in AND that indicates the various competing brands and their relative market shares.

NOTE: A competitive analysis is necessary even if your product is an entirely “new” product (i.e., truly innovative) because even new products compete within a sector for both acceptance and a share of the market. [For example, even before there were computers, there was a systems market that employed different tools. The computer manufacturers had to prove to large organizational customers that highly expensive computers were well worth the investment for the ultimate benefits that they would provide. More recent examples of new products come from modest improvements to a product; e.g., 1) the microwave oven that also can be used as a convection oven competes in a sector with other methods of cooking; 2) When Lay’s introduced its non-fat potato chips, they had to compete with other potato chip brands and with other snack foods in its category.]

With regard to your company/organization, it may be a fictitious one or an actual one. You may decide to introduce your product as a “start-up company” or from a larger organizational base. Whether fictitious or not, you will describe your organization and refer to it in the appropriate sections of your plan. There are pros and cons to the organizational choice you make depending on the type of product you decide to introduce. It is for you to determine what will be best for you, but, of course, you may always seek my advice.

II. SELECTING THE PRODUCT AND ORGANIZING YOUR REPORT

A. In general, your marketing plan will follow the five step process of strategic marketing planning which you should have studied in your prior marketing courses: 1) Conduct a Situation Analysis; 2) Develop Marketing Objectives; 3) Determine Positioning and Differential (Competitive) Advantage; 4) Select Target Markets and Measure Market Demand; 5) Design Strategic Marketing Mix. However, the actual organization of your paper should follow the sections outlined in the Format for Marketing Plan handout that is on Blackboard in the Marketing Planning Folder under Course Documents. [Reminder: The Executive Summary is more than just a summary. It should be no more than two pages. Its purpose is to give the recipient an idea of what is within the plan document and to persuade the reader to want to read it .] In addition to the “Format” handout, be sure to read the other documents in the online folder. They are there to help you understand the planning process, in general, and how different types of organizational plans are related to each other.

B. It is imperative that you develop a sound and succinct Mission Statement for your organization. I have provided a place for you to do this at the beginning of your Situation Analysis. However, it should also be highlighted briefly in the Executive Summary section at the beginning of the plan. [Reminder: One does the entire plan first, and then prepares an Executive Summary of no more than two (2) pages. The job of the Executive Summary is not only to highlight the major points within each section of the plan, but to generate enough excitement to persuade the reader that reading the plan is a worthwhile activity.]

State the organization's mission and overall objectives and show how they relate to the marketing objectives and strategies that are developed for the product that you have selected and on which you are reporting. [Obviously, the company’s Mission Statement and overall objectives “inform” and influence the specific marketing objectives that you will develop for your product. In this manner, strategies that are developed for your product will be in conformity (rather than conflict) with the overall policies, objectives and mission of the organization.]

C. USE YOUR IMAGINATION IN SELECTING THE TYPE OF GOOD YOU WISH TO DEVELOP. Think about the types of businesses that interest you. For example, you may be somewhat familiar with a type of business because of employment or family involvement within an industry. Other items to consider in making your selection: 1) How readily available are industry statistics? 2) How much information can be gathered about competitors? [Annual reports and SEC filings (available via the Internet) are good sources of information to see what general objectives and strategies companies are using.] 3) What type of career interests you? etc.]

III. SOME GENERAL THOUGHTS FOR YOU TO CONSIDER

For how to organize your plan, refer to the format given to you in “Format For A Marketing Plan.” The following points are important items of consideration, and may help you in thinking about the plan.

A. Discuss the marketing environment in which your chosen product is sold. All major external forces (physical & technological; political, legal and regulatory; socio-cultural; economic; international; competitive; etc.) should be considered, but especially stress competitors’ products and the strategies they employ to market them. [Refer to Situation Analysis.]

B. Analyze and describe the markets that you will target. In particular, describe your chosen product's target market(s). Explain how they are segmented and detail the marketing mix (4P's) that will be used to satisfy the needs of the customers within those markets.

C. How does your new product fit into “your organization's” product mix and overall strategy?

D. How will the product and pricing decisions you have made affect other aspects of your marketing mix strategies (i.e., distribution and promotion).

E. Be sure to describe and analyze the channels of distribution for the product. [For example: Will you sell through wholesalers to retailers? Will you sell directly to the customer? Will you deliver the product through multiple channels depending on the type of customer (e.g., HP sells its computers and peripherals via large specialty retailers as well as through the direct channel)?]

F. What communications will be used to reach the targeted customer (target market)? And does it make sense to sub-segment the target market(s) for marketing communications purposes (developing several target audiences within the same target market)? Communications Examples: Measured media advertising (e.g., TV, Radio, Magazines, Newspapers, Internet/Digital, etc.), direct marketing techniques, public relations initiatives, grassroots marketing (often called guerrilla marketing), e-mail initiatives, social media strategies and other UGC, how best to use mobile and other new or emerging media, etc. Also, keep in mind what I wrote about concerning viral vs. advocate marketing. [See Blackboard for my online comments under Readings and within my article Strategic Plans Solidify Branding on Net.]

G. How will you communicate with employees, distributors and vendors who will be party to implementing the plan? (E.g., meetings, bulletins, e-mail postings, intranet, extranet, etc.)

IV. SPECIFIC SUGGESTIONS, REMINDERS, ETC. WHEN FOLLOWING THE “FORMAT

FOR A MARKETING PLAN.” Make sure you use the “Format for a Marketing Plan” document in conjunction with this longer detailed document. Also, there is a sample Table of Contents available on Blackboard. Remember, the organization and formatting of a plan is critical – and I consider it worth 20% of your grade, at minimum.

Your Marketing Plan will cover and include:

A. A Mission Statement (placed at the beginning of the plan) for your company with brief, general organizational goals (these general goals are not marketing objectives, which must be specific and measurable).

B. The Situation Analysis is to include: 1) A profile of the market that includes all the separate sections shown in the “Format for a Marketing Plan” document such as Product Category, Consumer Research, and Competitive Research. This part of the overall Situation Analysis will make clear that you know the overall size (in dollars/units) of the U.S. and/or North American market and the relative market shares of the competing brands. In other words, who are the competitors and what market shares do they possess? [Detail this in Competitive Research section, but show the size of market right at the beginning of the Product Category section as well .] Also, using Simmons, MRI, Passport and other library databases, you will delve into the types of consumers/customers that are in the market and their relationship with the type of product you are marketing. [Refer to Consumer Research in the Format document for more details. NOTE: I EXPECT ALL TEAMS TO USE SIMMONS FOR IDENTIFYING AND PROFILING THEIR TARGET. MAKE SURE YOU HAVE LEGIBLE PRINTOUTS IN THE PLAN'S APPENDIX.  Be sure to Highlight the data that you cited from the Simmons reports you generate. Same goes for your use of MRI and any other sources used.]

2) A SWOT Analysis as a significant part of your full Situation Analysis. This analysis briefly lists the strengths and weaknesses (internal to the firm) and the opportunities and threats (external to the firm) facing the company.

3) A Target Market Analysis describing the possible alternative market segments that could be selected as a target market (or as target markets) – and why they might be suited to the product.

4) A Competitive Analysis resulting in a description of what you believe the possible determinant attributes and benefits of the product are as compared to those of competing brands. Remember, customers/consumers might find a certain number of attributes as salient (i.e., important), but it is a marketers job to ascertain which ones of those are determinant (i.e., which attributes actually determine which brand will be purchased).

C. Marketing Objectives: A LIST of specific and measurable objectives for the product that result from your research and analysis. Of course, all objectives must include a time frame. [For sample marketing objectives, see “Planning and the Marketing Plan” in Marketing Planning Folder under Course Documents.]

Important: The order to list the objectives is from the most measurable (dollar sales volume (unit volume as well if pertinent), market share, profit, ROI, etc.) to those objectives that are not as easily measured (e.g., level of consumer satisfaction; most recognized brand in the market; etc.).

Of course, your sales and profit objectives arise from a quantitative analysis that relates to your assessment of the demand in the market for the product (market potential) and then your extrapolating what share of the market under ideal conditions your company might expect (sales potential). Both these measures refer to maximum expectations under ideal conditions; therefore your sales forecast will be based on the conditions you expect to see each year as based on your marketing strategies and conditions in the market.

Sales Forecast = Expected sales ($ and/or units) of a company’s product during a stated period in a specific market as based on the specific marketing plan for the product. [Do not confuse with sales potential which is the maximum percentage a firm can achieve for a specific product under ideal conditions.]

D. Positioning & Competitive Advantage

Positioning. Certainly, you want to turn your product into a valuable brand name in the product category and in the overall market. Therefore, you must develop a positioning statement that clearly indicates how the brand will be positioned in the consumer’s mind. First, state the value proposition of your brand; that is, what is the basic value to the consumer when purchasing your brand. Then, from that, develop a clear positioning statement. Example:

Positioning Statement and Value Proposition for Volvo Automobiles in the United States:

Value Proposition: • Target market: Upscale American families • Benefits offered: Safety • Price range: 20% premium over similar cars

Positioning Statement: For upscale American families, Volvo is the automobile that offers the utmost in safety.

Also, use your creativity to come up with a tagline that will be used for promotional purposes. [A tagline is a slogan that clearly conveys the brand’s positioning; e.g., Volkswagen’s tagline at one point = Drivers Wanted (specific user positioning & positioning on lifestyle); Maytag Appliances = The Dependability People (positioning on benefits, problem solutions, or needs); Coor’s Beer = "Taste the Rockies" (specific product feature positioning); Hebrew National’s two tag lines over the past years = “We Answer To a Higher Authority” and “No Ifs Ands or Butts” (specific product feature positioning); Visa Card = "Everywhere You Want To Be" (positioning on benefits, problem solutions, or needs); Secret Deodorant = Strong Enough for a Man, but Made for a Woman (specific user positioning combined with positioning on benefits, problem solutions, or needs).]

Note that a tag-line and the positioning statement may be very close, but the tag-line is the memorable way that the consumer recognizes/recalls the positioning of the brand. And, remember, the positioning (the favorable image that is to be held by the consumer) is not only conveyed by the tagline but is also conveyed via all elements of the marketing mix – not only promotion. For example, distribution can be important in conveying an image as in the case of selecting a retail store to carry your product. Designer apparel, for example, would not be sold in a discount store because that would convey a negative image for the brand.

Competitive Advantage. State the competitive advantage of the brand by describing what determinant attributes of the product will be stressed in order to differentiate it from competing products. [Refer to your discussion from B.4 (above), and indicate your decision of what attributes/benefits mentioned earlier are to be stressed and the rationale behind that decision.] Since much of this has been discussed earlier, simply list the competitive advantages of your product introduction and, then, provide a brief rationale for your decision(s).

Keep in mind that a successful competitive strategy has three characteristics: (1) it should provide value to customers that exceeds any product that is already on the market; (2) the superior value must be perceived by customers (this relates, of course, to communications strategies but also other elements of the Marketing Mix such as pricing because a superior product at too high a price does not deliver the perceived value … and too low a price might convey inferiority despite the product actually providing superior performance); and (3) the competitive advantage should be difficult for others to copy (at least within a reasonable time frame for the product to establish a sustainable advantage in order to build brand equity).

E. Targeting. Identify and Analyze the Target Market. Indicate the target market(s) you have selected from those you discussed earlier that you might select. [Refer to your discussion from B.3 (above). There you discussed the possible segments you might target. Here you indicate which ones you have actually selected with a brief rationale for each.] It is in this section that you develop descriptive profiles of the typical consumers/customers in your selected target market(s). Profiles are based on geographic variables, behavioral variables (how consumers relate to the product; e.g., business class flights on airlines is behavioral segmentation), demographic variables (age, gender, income, occupation, social class, sub-culture, etc.), and the very important psychographic variables (values and lifestyle – based on AIOs … activities, interests, opinions). There must be a well expressed descriptive profile for each target market at which you are aiming.

NOTE: A sample description of a target market is on Blackboard. It is simply verbal. The idea is to make the targeted customers “come alive” and be more than statistical data. To see just how descriptive a profile can get, view some of the recent Ad Team campaigns at http://webpage.pace.edu/paceadteam/campaigns.htm . There, of course, the profiles take on personalities, enabling the reader to better understand the attitudes, behavior and overall concerns of the target on a more deeply human level. The goal, of course, is to truly understand the targeted customers’ needs and wants. This is extremely important prior to developing any marketing strategies that will be aimed at them.

F. Marketing Mix Strategies. Develop strategic statements for each of the four major categories of the marketing mix (product, price, distribution, and promotion). [See below.]

G. Tactics. Specifically delineated action programs that arise from stated strategies. [See “Format …” document for other tactical requirements.] Note: The budget expense for each action program should be stated next to the action program title. The breakdown for each item should be listed within an Overall Budget in the Financial Schedules/Statements Section to the plan, where you would also place the 3-year Pro Forma P&L projections. [See the Sample Table of Contents.]

H. Evaluation – Control and Update. [See “Format ...” and the Sample Table of Contents.] Control and Update of your plan arises from a continual feedback process that a company engages in through traditional market research and marketing research as well as through CRM initiatives and other programs. Note: Add contingency plan statements in this section.

Some Considerations for Your Marketing Mix Strategic Statements

and Specific Tactical Implementations

Product: Describe the product and how it will be packaged. If there are varieties of offerings within a new product line, list each of them by name and describe it. What are the attributes/benefits that will be stressed for each variation? Remember, you will have already named the product line with a brand name. Now, if there are varieties, decide if each should have its own distinct name within your branding efforts. If so, remember that each variation should be in accordance with your previous positioning and competitive advantage decisions – and with your own creative flair. [Notes: (1) Don’t forget to state a budget figure for Product Development. (2) This is a marketing plan; product development costs are NOT production or manufacturing costs. Production costs are not part of the marketing budget. Production costs are important in determining your Cost of Goods Sold and your Gross Profit (as reflected on the unit level in the pricing section of the plan … and on a collective basis in your pro forma P&L – but production costs are NOT part of the marketing budget.]

What about packaging? In what size containers will the product be sold? What type of packaging will be used (e.g., blister packs, bottles, cans, aseptic containers, etc.)? What type of graphics will be used on the container? Remember, packaging is more than just for containment and transportation; it is an important element of communication, which means that it is an important aspect of promotion. It is in packaging that we can clearly see how all the marketing mix elements are interrelated and must therefore be integrated. Even if your new product was a service, it would have to be packaged in some way (e.g. a phone card is a service, but it has a physical aspect).

Keep in mind that your product development budget should consider the costs involved throughout the New Product Development Process, from idea generation to commercialization (roll out of the product to the specified markets). Also, will you be including the expense of market testing in one form or another? [See online handout on the New Product Development Process.]

Price: If this is a consumer product, what will be the suggested retail price for the brand? [This, of course, depends on what decisions you have made about packaging sizes, etc. Look at the competition, and see what their products sell for in different locations in order to get an idea about what the ultimate consumer is paying at different types of outlets.] Ultimately, however, for a manufactured good, it is the wholesale price that will determine your own gross profit margins as well as that of your distributors/dealers. Remember, there has to be enough of a spread (gross profit margin or unit contribution to profit) between the wholesale price and the retail price for a retailer to have an incentive to carry your brand and for a wholesaler to earn his profit as well. However, your gross profit has to be large enough, as well, to cover manufacturing, marketing development, and other costs.

A REMINDER ABOUT MARGINS: The gross profit margin (GPM) or unit contribution to profit percentage is actually the mark-up as a percentage of the selling price; therefore, it is represented by a percentage below 100% since the markup (margin) plus the cost equals 100% of the selling price. For example, if you are PepsiCo or Coca Cola and sell a unit of a tropical juice beverage to the distributor or dealer for 60 cents, and it cost you 45 cents to produce that unit, your gross margin percentage (GPM%) is 25% because the 15 cent unit profit represents 25% of the selling price: GPM% = Dollar Markup / Selling Price (15 cents divided by 60 cents). The retailer (say Dunkin Donuts) may then markup the unit 100% on its cost (mark-up on cost of retailer) to $1.20. Since the profit is 60 cents, Dunkin’s gross margin is 50% (60 cents divided by $1.20). Therefore, although its markup on cost is 100% (Markup on Cost = Markup / Cost), Dunkin’s GPM (gross profit margin or markup on selling price) is 50%. The Table Below Illustrates This Example:

	Mfr./Mktr					Retailer’s
Size	Cost	Price	$Markup	% Markup on Cost	%(GPM) Unit Profit	Cost	Sug.* Price	$ Markup	% Markup on cost	%(GPM) Gross Profit
20oz. bottle	$0.45	$0.60	$0.15	33.33%	25%	$0.60	$1.20	$0.60	100%	50%

* Suggested Retail Price is $1.20. Remember, marketers, in general, can only suggest a price. The retailer might decide to set the price higher to increase profit margins or lower to increase unit sales volume (revenues).

Of course, it is likely that you will use a wholesaler as well to distribute your product. In that case, you must make sure there is enough profit for each “ partnership” relationship in the distribution channel. [Note: viewing channel members as partners in profit is a key to mutual long-term relationships with customers; i.e., Relationship Marketing.] The way to show this is through a price schedule table similar to the one above or the one below – and the pricing section of your plan MUST use a price schedule such as the ones shown. This table can be later used to develop price sheets for your customers. The following represents a price schedule table for the typical three tiered channel, showing relevant information including profit margins (%) per unit size of offering. [Notes: (1) If using multiple channels, a price schedule table should be included for each. (2) Be careful! The pricing schedule you use must conform to the distribution channel type indicated in the Distribution section of the plan.]

Manufacturer

Wholesale Distributor

Retailer

Size

Cost

$Markup

Price

Markup on Cost %

GPM %

Cost

$Markup

Price

Markup on Cost %

GPM%

Cost

$ Markup

Suggested Price

Markup on Cost%

GPM %

Distribution: Describe where and how your new product will be distributed. Will you be introducing the brand nationally? That would be quite an undertaking. Perhaps you will research which geographic areas are best to reach your stated target market; i.e., consider where your prime prospects are located.

     Regarding physical distribution (logistics), which are the activities concerned with the physical movement of the right amount of the right products to the right place at the right time, only address transportation, which is one of the five tasks of logistics. [The five tasks are: 1) Inventory Location & Warehousing; 2) Materials Handling; 3) Inventory Management (Inventory Control); 4) Order Processing; & 5) Transportation.] For the purposes of this project, make sure you state where your manufacturing facilities are located. How will the product actually move to the various markets where it will be distributed? What type of transportation will be used, and what costs will be involved? [HINT: Research what competitors are using and look at what their expenses are. You can find their costs by looking at their income statements if they are publicly traded companies. Also, you can contact transportation firms, freight forwarders, etc.]

     Most important, will you sell only direct to retailers, or will you use wholesale distributors in each market, or is a combination possible? If you choose to do both, how will you avoid channel conflict, which occurs when a producer uses two or more channels of distribution? HP is an example. It sells its computers through retailers and also uses direct marketing (sales communications that have a measurable response and create a direct channel to the consumer). This can create a vertical conflict between the producer (HP) and its retailers (who may be upset at HP removing potential customers from their income stream). Also, a horizontal conflict may occur between the various channel members on the same level of distribution (e.g., between the different types of retailers if some believe HP may be offering better terms to their competitors). Another example: you can buy a beverage in many different types of retail stores (supermarkets, fast-food outlets, convenience stores, grocery markets, vending machines, etc.). This creates horizontal channel conflict between the channel members.

The general rule for avoiding conflict: Treat all channel members fairly and different channels should have different conditions of sale (e.g., a vending machine sells a cold beverage, which is quite a different condition of sale than buying a warm six pack). Another example of a different condition of sale is Godiva’s retail outlet sales to consumers of its chocolates and its direct marketing offerings to businesses (for gifts and incentives).]

Note: Make sure the Distribution section conforms to the pricing schedules in the Price section.

Promotion: [NOTE:I will be looking for specifics on campaign strategy and several tactical executions that illustrate that strategy.] Your research of your industry and your competitive analysis will give you some insight into what your competitors have been doing within the product category you have chosen to introduce your new product. Keep in mind that your overall budget for promotion has a limit. The amount will depend on the size and resources of your company. Remember, promotion is only one aspect of an overall marketing budget. Whatever the amount you decide on must be reasonable when compared to what all competitors spend on promotion in your product category. [You will research this and be sure to cite in footnotes the sources behind the logic of the amount you have chosen. For example, what are the average advertising expenditures when compared to sales in the industry; also, what are they compared to gross profit margins. To look up what competitors spend on measured media, the Pace Library has the Ad $ Summary database that can only be used in the library.] Consider that your competitors may be established players in this market. Will you try to match them dollar for dollar in advertising, or will you use public relations programs such as publicity and special events instead of or in addition to advertising? Does Social Media play a role in your promotional strategy? Mobile? Be sure to describe exactly how and in what ways. Perhaps, you will consider non-traditional grassroots marketing programs to generate positive word-of-mouth (buzz). Or perhaps, in order to introduce your new product line, you will spend more on advertising and sales promotion (trade as well as consumer) than your competitors.

Note that I will be looking for your breakdown of your overall Promotion Budget. This is especially important as it relates to the budget for the Media selected (e.g., TV, Magazines, Radio, Internet, etc.), PR, Sales Promotion, Word of Mouth (Buzz) Marketing ideas, etc. Also, be sure to specify the media vehicles selected for each media type you use; e.g., Time Magazine is a media vehicle of the Magazine media category, The Tonight Show is a media vehicle of the TV (late night TV) media category, Advertising Age is a media vehicle of the Business Magazines media category, Google, Bing and Yahoo! are media vehicles for Search Engine Marketing on the Internet, etc. Information on rates and costs to advertise on such media vehicles can be found by consulting the SRDS directories available in the library. [SRDS stands for Standard Rate and Data Service.] Also, most magazines (and many other media) have their Media Kits on their Web sites. A good source for advertising costs for prime time TV shows is the Advertising Age Annual for the current year (and the Pace Library now has access to the Advertising Age Data Center – a very good source for other information as well).

Think about what type of promotion would be best suited to your selected target market – and how you can get "the best bang for your buck." There are many possibilities. However, remember that there are other functional areas (such as distribution and product development) that will require some of the total marketing budget; therefore, the promotion percentage of your total marketing budget must be reasonable. [The four general categories of promotion are advertising, sales promotion (trade and consumer), public relations (which includes publicity), and personal selling. Collectively, they are known as the promotion mix.]

     According to recent studies, the average consumer is subjected to approximately 5,000 to 7,000 commercial communications in a day. Think about how you will go about breaking through all that clutter. How will you use the tag-line that you have created for the brand? Where will it be seen and heard? Remember, this is a new product. The consumers in your target market not only have to become aware of your brand, they must recognize it for what you are positioning it to mean in their mind. So much of advertising is wasted because it only makes the consumer aware of the brand. Recognition implies that the consumer recognizes the brand as an alternative for purchase. In fact, "recognition" is a degree of brand loyalty – while simple "awareness" is not. [Three degrees of brand loyalty (a consumer’s favorable attitude toward a brand) are brand recognition, brand preference, and brand insistence.]

V. CLOSING REMARKS

A HARD COPY OF YOUR MARKETING PLAN IS DUE MONDAY, DEC. 4th in my Lubin mail box no later than 6 pm. [NOTE: Do not staple your plan. Use a good quality pressure clip.] Digital versions must be in BOTH the Team File Exchange and Turnitin.com by no later than NOON of 12/4.

Any team not ON TIME with their submission will have their plan’s grade reduced by 10 points.

Just as described in the Supplement to Syllabus, THE DOCUMENT is to have a COVER PAGE, TABLE OF CONTENTS, AND BIBLIOGRAPHY (all of which must be properly executed). The paper must be DOUBLE SPACED and must have FOOTNOTES for all information, opinions and/or quotations taken from a source. The Chicago style citations must be at the bottom of each page of the report (which is why they are called "footnotes"). They must be in the correct format as shown and discussed in the Supplement to Syllabus. The Bibliography, of course, is attached to the back of the plan. Just as with all submissions, the document will be graded on professional appearance and proper English as well as content . The very last page of both your plan and your presentation must have the Contribution Statement indicated in the syllabus and later in this document under the discussion of Teams.

A ten (10) minute ORAL PRESENTATION (a pitch for funding the plan) will be made by each team on Thursday, December 7th. A digital version of it must be submitted in your Team File Exchange on Blackboard by 10 pm on Wednesday, Dec. 6th – the day before your presentation.

All teams MUST be in class on time to hear each others’ presentations. Any team that is not in class on time will have its presentation’s grade reduced by 10 points.

This presentation must be a SUMMARY/SYNTHESIS of the highlights of your plan. Remember, the presentation is a selling instrument . You want the CEO and board (or venture capitalist, angel investor, etc. if you are start-up) to approve and fund the plan. Be sure your team is well rehearsed for making its 10-minute presentation of your plan. You will be stopped if you go over 10 minutes, and you will lose 10 points. Therefore, practice your presentation so that you are sure that it fits into the time allotted and that the PowerPoint slides help move the presentation along . Slides that have the verbiage that you are speaking do NOT do the job well – AND I will subtract points every time I see a slide that simply is repeating the exact words that the speaker is stating. Rather, you should use bullet points and short phrases, words, graphics, etc. to support the compelling and interesting aspects of the plan that you stress in your talking points and that will support your rationale. Also, charts, graphs and tables that clearly make a point are better than a lot of verbiage on a slide. However, when you use one, be sure you briefly express on the slide what important point(s) are being made. Remember, the best presentations are energized by the enthusiasm of the presenters who make every effort to create excitement about their proposed plan.

NOTE:  IT IS UP TO EACH TEAM AS TO HOW MANY TEAM MEMBERS PRESENT.  It is not required that all team members actually be presenters.  It is required that they contribute to the development of the presentation.  However, if some people do NOT wish to present - OR the team does not want someone to present because they have not been to rehearsals - this is a decision that the team, as a whole, makes.  The idea is to have a well organized and enthusiastic presentation that creates excitement about the product so that it will get funded.  And, of course, it must be well rehearsed and timed so that it fits into the 10-minute time frame given.  My advice is to rehearse it so that it takes no longer than 9 minutes and 20 seconds.  When you actually do the presentation, it tends to expand a bit in time.

At the START of your presentation, you must submit a HARD COPY of your presentation to me in an inexpensive binder along with each team member’s Team Evaluation Form – each sealed in its own #10 (regular size) business envelope with each student’s name and other instructed information on the outside. [The form itself explains what should be listed on the envelope.] The binder must also include typed copies of the team’s script; i.e., each presenter’s spoken words for each slide’s TALKING POINTS. In other words, the script should reflect what each presenter will be saying for each numbered slide (and make sure your slides have page numbers). You must include a disk or an inexpensive flash drive in the binder that has digital versions of your presentation, your script, and your submitted Marketing Plan. In addition, any primary research survey questionnaire of the target market(s) should be included on the disk and a hard copy should be placed in the binder.

IMPORTANT! INTERIM SUBMISSION: Team Term Project (Part I) Due on Monday, Oct. 16th.

On Monday, Oct. 16th, Part 1 of your Marketing Plan must be submitted in my Lubin mail box no later than 6 pm with the following done: your Marketing Plan’s complete Situation Analysis (all research and analysis), your LIST of specific and measurable Marketing Objectives with time frames, Positioning of your brand including Value Proposition leading to Positioning Statement and Tagline, your section stating your brand’s Competitive Advantage, and the Targeting section where you list, describe and profile your Target Market(s) of prime prospects/customers. Any team late with their submission will lose 10 points off their project grade.

NOTE: The team administrator (or other designated team member) must submit a digital version of the Marketing Plan (Part 1) document to Turnitin.com no later than the morning of Monday, 10/16. 

This interim submission is important so that I can see the direction your plan is taking and any problems you are having. Mistakes are OK, but omissions are NOT! This is your opportunity to get my guidance for your plan, and I expect all parts stated to be complete. I cannot correct or give you guidance on that which you have not done; therefore, any missing parts will result in a 10-point loss from your eventual overall grade. So, be sure to include all parts requested. Further, at the time of your interim submission, each team will have to make an appointment to meet with me outside of class as soon as possible (no later than 10/26) to go over Part 1 of their plan. These meetings usually are quite lengthy and can last well over an hour or even more.

IMPORTANT NOTE ABOUT TEAMS

A few words about teams vs. groups, and your responsibility to each other as team members:

TEAMS vs. GROUPS - A group is 2 or more persons who come together to achieve particular objectives. Individuals may come together to share information and make decisions that will aid each other perform in their area of responsibility. Therefore, they are working as a group, but they are not working as a team.

Remember, one of the central characteristics of TQM is the use of Teams. A TEAM is a group that engages in collective work that requires joint effort and that develops a constructive synergy resulting in an outcome where the "whole is greater than the sum of its parts"; i.e., through coordinated efforts, team members achieve substantially more collectively than the sum total of their individual efforts could have possibly attained if each were working separately. To summarize, the effective work team is a group of two or more people who share a mission and collective responsibility as they work together to achieve a goal.

Regarding this term project and the other team assignments , any team member not "pulling his/her weight" should be spoken to by the other members and encouraged to participate more. If team members are having a particularly difficult time with one of their members, they should bring it to my attention as early as possible for the benefit of all concerned – the member in question as well as the team. [See Syllabus for more information/consequences … including the firing of a team member by a team.] Each student will be required to hand in a confidential TEAM EVALUATION FORM when the completed project is submitted. In this form, you will evaluate your own and your fellow team members’ performance. The form will be submitted in a sealed envelope and will be read only by me. If you do not submit a form, properly filled out, you will not receive credit for the term project. Also, in the back of your presentation binder, include a page with the following on it:

"The following members of the team have contributed to this project in the following percentages:"

Then, list each member’s name and the percentage of contribution for each member as agreed to by the entire team. This allows the team to give special credit to those who went the “extra mile” in developing the project. It should not be confused with the confidential Team Evaluation Form which covers all the work the team has done and your evaluations of each other’s performance. [See the Syllabus for more details on Team performance]

Remember, you are all relying on each other to act in the best interests of your team. One of the objectives of this project is for members to work together as a team to achieve a goal in which they will all share. [Ideally, you will be working as a self-managed team.]

This learning-by-doing project will (it is hoped) sharpen your research and analytical skills as well as your organizing and planning ones. But it also has great potential for letting loose the most creative aspects of your minds. So, let your creativity reign, and have some fun!