ebookmarketingplanpresentation

Music Marketing and PromotionPutting Together a Solid Marketing PlanLearning ObjectiveslUnderstand the structure of a marketing plan.lObtain a sense of how a marketing plan fits into an overall business plan.lDevelop an appreciation for the critical success factors in a marketing plan.lObtain the understanding needed to begin the marketing plan project.lCreate a marketing plan good enough to implement and professional enough to submit to a potential employer Preliminary CommentslThe pathway to success in business is paved with creating and implementing sound business plans.lProfessionals who can create and implement a powerful strategy are far more likely to be successful and get promoted. lWithout these skills, careers are greatly limited.lThere is as much of an art in creating good strategy and plans as there is an playing any instrument. Virtuosos are just as rare. What is strategy and planning?lEvery business organization must strategize and plan. lGenerally, there are five strategies that the organization must develop: Financial Strategy Human Resource Strategy Manufacturing Strategy R&D Strategy Marketing StrategylLets discuss a little on each.Financial StrategylFrom where does the firm get money/resources? Taking on Debt (borrowing money, selling bonds) Selling equity (selling stock in the company)lHow does the firm manage its cash flow. Many firms make as much money on cash flow as they do from operations. Human Resource StrategylWhat sort of people is the firm going to hire?lHow much training will the firm provide?lFor what time period will the firm hold employees?lWhat sort of culture will exist in the organization?Manufacturing StrategylHow will the organization go about creating products?lWill they be produced by the organization or produced externally?lHow much will the organization invest in its ability to produce products/services?R&D StrategylEvery organization must produce new products and services.lHow will the organization go about creating new products and services? Create internally through a creative process? Buy innovation from outside?Marketing StrategylTo which customers is the organization going to target its efforts (market segmentation and target marketing)?l How do we mix the following elements to create a plan for success: Product Price Promotion P-distributionlWe will spend the rest of the semester addressing each of these issues.Business Plan and Marketings RolelHow a business goes about setting its strategies and plans is largely a function of its strategic direction and the environment in which it operates.l That is, a firm will scan the environment and see the possibilities, in the context of its capabilities. Based on this assessment, it will create a strategy for moving forward. Plans will be created for implementing the strategy.lThe firm will make general decisions on all five strategies and then dictate objectives to each area of the firm.Marketings Role in the Business PlanlMarketing is generally given objectives that are non-negotiable, but most everything else is.lThat is, marketing must meet some target (10% increase in revenues with a 5% increase in profits) but how to meet those targets is up to the marketing experts. lIn many jobs in the music industry, you will be the one that is expected to make those expert decisions.lWhat we will discuss assumes that the decision on objectives has already been made. The Steps in Creating a Marketing PlanlConduct a SWOT analysis/current situationlConvert the SWOT into a TOWS analysislIdentify the organizations aims, goals, and objectives.lIdentify the customers/target markets.lIdentify the customer requirements.lArticulate the objectives.lCreate a strategy for accomplishing the objectives (4-Ps+).lCreate action programs for carrying out the strategy.lProject profit/loss for at least two years.lInstall controls for monitoring progress. Conduct a SWOT AnalysislLook at 35,000 feet to assess the Strengths, Weaknesses, Opportunities and Threats.lStrengths and Weaknesses are internal.lOpportunities and Threats are external.lSuccessful examination of strengths and weaknesses requires an objective assessment of what the organization does well and what it does not do well.lSuccessful examination of opportunities and threats requires an accurate assessment of the industry and its competition.Conducting a SWOT AnalysislThere are tons of industry specific data available on the music industry. lThe current dynamics in the music industry are particularly relevant to anyone creating a SWOT analysis. The web is a great source.lOther sources include periodicals (Music Biz, Billboard, etc.) and research documents (Mediamark and Lifestyle Planner). Conducting a TOWS AnalysislThe broad trends unearthed in the SWOT analysis must be converted into relevant issues.lA TOWS analysis is one way of looking for patterns.StrengthsWeaknessesOpportunitiesS/OO/WThreatsS/TO/TOutput of SWOT and TOWSlAfter completing a SWOT and TOWS analysis the strategic background of the project should be addressed.lAll the relevant dynamics in the marketplace, especially competitive ones, should have been addressed. lThis background is critical for establishing the possibilities. Identify the Organizations Aim, Goals and ObjectiveslMost marketing plans are set inside an organizational context. lWhat organizational objectives must the project satisfy? The project cannot violate the aim of the organization or its mission. The project must contribute to the accomplishment of some organizational goal(s). lThe organization can be an important “customer” of the project. lWhat constraints have been placed on the project?Identify the Target MarketlNo project/product can satisfy every potential customer.lYou must select a target market for your project that can be satisfied and has a demand for the product/service.lThis identification must be very specific.Identify Customer RequirementslThe more that is known about the target market and its members needs, the more likely is success.lThese needs are oftentimes not easily manifest and may not even be well-understood by customer.lYou must have a concrete sense of what customer requirements are being satisfied.Articulate the ObjectiveslWhat performance is necessary to satisfy customers and achieve the objectives?lThis performance must be translated into measures that can be tracked.lWhen the objectives are fully reached, the project will be a success. lIt is critical to define the objectives accurately. What gets measured gets done.Develop a Strategy lThere are literally thousands of methods that can be used to accomplish an objective. lStrategies are “grand designs” for achieving an objective.lFor example, suppose an objective is to sell 20,000 CDs. The following would be strategies: Try to get airplay and then distribute them through one-stops and moms & pops Set up promotional events with sales in the back of the room Get access to an internet portal for “teaser” downloading. Sell through your website.Create Action PlanslOnce a strategy is chosen, more detailed, concrete steps must be taken to ensure proper execution of the strategy.lThese action plans must be sufficiently detailed to ensure success.lMethods for executing these action plans must be created. lMethods must be created for monitoring progress on them.lThese are generally presented effectively on VENN diagrams. More on Action PlanslEach action plan must contain: The objective to be achieved in the action plan The target market of the action plan A comprehensive, detailed description of the action plan Responsibility assignment for executing the plan Timing horizons Budget Controls for monitoring implementation A BudgetlAll the expenses incurred in the action plans must be rolled up into an overall budget.lRevenues must be estimated from sales for each time period.lThese are subtracted to from a potential profit/loss statement. Controls DocumentlAll the controls in each action plan must be rolled up into a comprehensive control plan.lThere will always be overlap in controls (i.e., some control devices will ensure the success of several action plans). lGenerally, these are consolidated by people (who is responsible) or by action (e.g., survey, action report, etc.).