when you were younger did you ever want to convince your parents to let you do something so you made an entire presentation for it maybe you wanted to stay home alone for the first time so you explain things like what precautions you take what you do in an emergency and of course the fact that everyone else in your grade is allowed to stay home and you're not your presentation may or may not have worked in front of your parents but when marketers in a company need funding to carry out a marketing campaign to achieve certain goals much like your goal of staying home alone they too need to prepare a presentation to show corporate leadership this presentation takes a form of a marketing plan and outlines very specific details of what the campaign will look like it's a job of whoever creates a plan to prove that the marketing campaign is something worth doing in this video we'll talk about the specific components of a typical marketing plan this is the second video in Unit 16 Market planning take a look at this breakdown which shows you how often these unit comes up on District State International exams for each of the different clusters [Music] hello and welcome this is less than 16.2 parts of the marketing plan now let's get to work team in this video we're going to go over the parts of a marketing plan which are the title page table of contents executive summary business description sales analysis situation analysis marketing objectives marketing strategies bibliography and dependencies in the last lesson we talked about why a marketing plan is necessary now we'll talk about the content that actually makes up this marketing plan the first part is the title page the title page is extremely important because it leaves the first impression on the reader make sure to include these five things on the title page the company name the product line the marketing manager important team members and the date the second part of a marketing plan is a table of contents which tells a reader what's included in the plan and where each section is this section is key for easy navigation the third part is the executive summary which gives an overview of the marketing plan and highlights important points the reader should be able to read the executive summary and Come Away with an understanding of the important parts of the entire plan but the executive summary should also be interesting enough to entice the reader to keep reading although this is one of the first things a reader will go through the exact negative summary is typically written after all the other sections it's kind of like the abstract in a science paper the fourth part of the marketing plan is the business description which is just an overview of the business plan if you don't remember what A business plan is re-watch this video a business description has five main components company goals vision statement mission statement business overview and product descriptions let's talk about each one in detail the first aspect of a business description is the company's goals these tell you where the company projects it will be in one to five years these lead the foundation for Revenue Productions the second section is a vision statement which is the overall goal for the future of the company vision statements are usually inspiring and motivating an example of a vision statement is to become the world's most trusted cleaning solution the third part of a business description is the mission statement which tells the customers why the business exists for example a mission statement could be providing environmentally free non-toxic cleaning solutions for families so you might be wondering what's the difference between a vision statement and a mission statement a vision statement is kind of like an idealistic aspiration so what the organization wants to be known for whereas the mission statement defines organization's specific purpose think of the vision statement as the ultimate destination for a company and the mission statement as The Guiding Light that helps the company reach that destination the fourth part is a business overview which identifies the business as a manufacturer wholesaler retailer or service and describes whether it's an online store or brick and mortar store this is like the one-line elevator pitch for your business the last part of the business description is product descriptions which explains specific products in depth including how the product works it's selling price and more the fifth part of the marketing plan is a sales analysis which helps determine future sales goals by identifying where new and repeat sales can be generated before you can set sales goals you need to do three key things analyze sales history make sales forecasts and evaluate the best sales opportunities first you need to analyze the sales history from up to five years in the past that'll give you enough data to make accurate sales Productions How many units you think you're going to sell and how much money you'll make from those sales you can get a refresher on sales forecasts in this video here the last thing you need to do to set sales goals is evaluate the best sales opportunity to do this you need to do market research and get feedback from the company's sales team maybe your products have been super popular in the 35 to 45 demographic and there's an opportunity to expand into an older or younger target market the sixth part of the marketing plan is the situation analysis Deca loves asking you to offer a situation analysis and role plays a situation analysis is essentially the snapshot of the environment a business operates in it often begins with a statement of both internal and external environments as they relate to marketing and sales the internal environment refers to things within the company so like Staffing shortages would be brought up here meanwhile external environments refer to the condition of both local and National economies for some businesses the state of the economy plays an important factor in the amount of sales the business can generate there are five main components to a situation analysis Target Market Market segmentation competition SWOT analysis and unique selling proposition your target market is a description of the kind of people your business targets as customers you can identify the target market by looking at sales data to see who is buying from you right now and by looking at market research to see who else might be good candidates make sure to include a profile the targeted customers based on age gender education income level or lifestyle after defining it you should estimate the size of your target market then include information from sales histories marketing studies reports or Market testing activities that can help uncover marketing fronts also you need to describe factors that affect purchasing of the product like the season price availability people's emotions services or tax considerations the next part of your situation analysis is Market segmentation which is the process of dividing your total target market into smaller subgroups for example if you sell headphones your target market might include everyone from high school students in America to adult commuters in China by dividing your target market into subgroups of customers with similar characteristics you can tailor your marketing materials to that specific segment the message you want to use on teenagers might be different from the message you want to use on parents who like to listen to music while they cook for their children the third part of your situation analysis is an overview of competition competition refers to two or more businesses who are trying to attract the same customers in this section you need to describe the other businesses who are also competing for your customers in marketing plans competition is usually represented with grids that list and describe competitors there are locations their product lines pricing their market share and their strength and weaknesses in the competitive analysis section you should also plan how your company will compete with these other businesses to gain your share of the market as you can see we've included the company profiles physical locations product lines pricing market shares strengths and weaknesses for both companies normally this analysis will be more comprehensive but this is just a simple example to show you what it looks like the next two parts of the situation analysis are closely related to competition first is a SWOT analysis which stands for strengths weaknesses opportunities and threats for your company in general a SWOT analysis should explain why your company is better than your competitors and how you can stand out to your target market you should include specific examples of how you offer product or service that's unique to only your company within your SWOT analysis one of your strengths should include something called a unique selling proposition this explains what unique things your business offers compared to the competition your USP should clearly illustrate why someone should purchase from you as opposed to your competitors now note that many people consider unique selling propositions to be the same as unique value propositions or uvp and while they're linked they're not quite the same value proposition is how you communicate that your brand or product is going to add value to the customer's life the selling proposition is how you communicate that your product offers a different value than your competitors Ferrari and Lamborghini both sell luxury cars and offer a similar value proposition but each brand develops products that they differentiate from each other with their unique selling propositions now this is all part of a marketing plan so we need to make sure we Define our marketing objectives which is the seventh part of the plan you might have a marketing goal of increasing your company's brand awareness and market share by 10 that goal becomes a marketing objective when constrained to a given time usually a year however it is important that your marketing objectives follow the smart framework which stands for specific measurable attainable realistic And Timely smart goals can either be short-term or long term in general marketing plans have between two and four marketing objectives per year most marketing managers use sales goals to establish their marketing objectives for example a marketing goal could be to increase sales by 20 if you remember when you have marketing objectives you need to have strategies that you implement to achieve that these are the decisions made about product price place and promotion the four piece of marketing marketing strategies outline the who what when where and how of the marketing process and they directly support objectives for example if the objective is to increase sales by 20 some strategies may include offering sales providing free delivery or creating higher quality products now there are two components within marketing strategies marketing tactics and the action plan within the action plan there are three parts timeline budget and metrics first let's talk about tactics these are specific ways that a company will carry out its marketing strategies for example one of your strategies might be to set the price of your products at or below the competition from there you'd write Specific Instructions to carry out that strategy for example you could assign an intern to monitor prices every Monday monitor advertising and coupons in the newspapers meet with the vice president every Tuesday to review competitive pricing information and reset prices as needed these marketing tactics are specific detailed and relevant to the strategy as a whole after the marketing plan is all written out it's time to actually do it the action plan includes a timeline budget and metrics to evaluate the effectiveness of a campaign let's go into a little more depth here first the timeline describes when each activity starts and ends where it takes place and the people responsible for running it this keeps the marketing team on schedule and make sure they don't run behind second the budget describes the amount of money dedicated to each of the marketing tactics and promotional activities most companies basis budget off of a percentage of sales for the company or other factors related to sales the last component is metrics which are the standards of measurement that tell you whether your marketing campaign was successful or not one of the metrics that most companies use is the return on investment or Roi which shows the efficiency of the investment by comparing the gains of the investment with the costs even though Roi is pretty standard different marketing strategies use different metrics the ninth part of the marketing plan is the bibliography just like the ones you've written for an English or a history paper your plan can cost the company a lot of money so they want to see that you're not just making stuff up in the marketing plan bibliography list all the resources you use to develop the plan including interviews books periodicals websites and any other sources you used the tenth and final part of the marketing plan is the appendices which includes Financial Productions data about the target marketer competitors and other documents that support the plan now that we've gone over all the content it's time to test your knowledge with a real Deca question pause the video and try to answer the answer is D SWOT analysis as I described earlier the SWAT includes both strengths and weaknesses of a company that's what the S and W and SWAT stand for a creative and flexible staff is the strength of Maria's company while Financial limitations are a weakness and here are the sources we use for this video feel free to check them out if you still have any questions all right that pretty much sums up lesson 16.2 parts of the marketing plan great work team and we'll see in the next video