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Marketing
Plan Guidelines
Purpose of the Marketing Plan
Selecting the
Topic of Your Marketing Plan
Sources of Ideas for
Marketing Plan Topics
Organization
and Content of the Marketing Plan
Suggested
Approach to Building the Market Plan
Data Sources
Grading Standards
Student/Team
Presentation Schedule (to be posted each semester)
Model Student Marketing Plans
Guidelines for Corporate Sponsors
Alternative
Projects (in lieu of Marketing Plan)
Purpose of the Marketing Plan
One of the key requirements of the course is to
develop a marketing plan for a technology that you're interested in studying or for a
technology that you would like to take to a market. The marketing plan, in lieu of a term
paper or team project, is a vehicle for integrating and demonstrating your understanding
of the concepts developed in the course, and for applying the theory to a real-world
company and product. The questions that you are asked to address below are among the most
difficult, yet important, that any technology company needs to consider in developing its
marketing strategy.
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Selecting the
Topic of Your Marketing Plan
The selection of a topic for your marketing plan is an important
decision. You will be investing a considerable amount of effort in it, and your instructor
and classmates will be reviewing it and giving you valuable third-party feedback and
suggestions.
The subject of your marketing plan should meet the following criteria:
It may be any new product (including software), process, service,
system or technology.
It is currently in some stage in the innovation process (research,
development, trial or launch), as distinct from being a mature product in a mature market.
It will be marketed (sold, leased, licensed, etc.) to external customers
(as distinct from being used only internally by the developer's company).
If it is a product that your employer is marketing, you have any
required permissions or concurrences to share your plan with the instructor and other
members of the class.
The marketing plan should be for the most part your original work
(as distinct from an existing marketing plan developed by others). But you are encouraged
to make use of others' work, provided you attribute it to them.
If it is feasible, you are strongly encouraged to consider for your topic
a marketing initiative in which you are involved within your organization. This has
several benefits:
You are more likely to have access to resources, such as technical and
marketing experts in your company, consultant studies, and published literature.
You can put to use within your organization the considerable effort you
have put into developing your plan, and the careful scrutiny that it will be given by the
rest of the class.
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Sources of Ideas for
Marketing Plan Topics
Some of my favorite sources of ideas for marketing plan topics and the
latest updates on technology (in layman's language!) are:
Organization
and Content of the Marketing Plan
Suggested Length: The written marketing plan will consist of a cover
sheet, table of contents, thirteen sections divided among two parts, and appendices. The
final plan should run about 15-20 ANNOTATED PowerPoint slides (1-2 slides per
section) or a Word file with the equivalent content. Spreadsheet models can be copied and
pasted into the appropriate point of the presentation.
Organization: Sections 1-12 will address the following 12 questions.
Each section should include a paragraph or two of essay, supported by tables or graphics.
If you use a chart or incorporate information from an appended source, be sure to refer to
it in the text..
Part I (Sections 1-6). Market Analysis
Part II (Sections 7-13). Marketing Strategy
Part I (Sections
1-6). Market Analysis (due Session 14):
Introduction: Describe what the technology is, what it
does, the intended market, and its potential benefits for that market.
- Capabilities Analysis:
What core competencies does your company bring to bear on
this product in the market it intends to address? In which value discipline does it excel?
Describe the ideal (may be hypothetical) market that these capabilities
would address. (Session 2)
- Industry Analysis:
1. Using Michael Porter’s industry forces model, identify the
industries your company is competing in with this product and evaluate
your company’s strengths and vulnerabilities in that industry on each
of the six forces (a three- point scale is suggested for each
force: 1 = weak, 2 = moderate; 3 = strong).
2. Develop a map of the competitive space you operate in, based on
the 2-3 most relevant competitive bases (e.g., price-quality point, vs.
market breadth), showing the position of the major competitors (direct
and indirect). Justify your choice of positions.
3. Using Porter's industry forces model, profile your company's top
two direct competitors and at least one indirect competitor (e.g.,
substitute, complementor). (Session
3)
- Leverage Points and Resistance Points: What role does the product play in the
customer’s value chain? What leverage points and resistance points might they have, and how could you
address them? (Session 5 and Session 6)
- Value Proposition:
What is the value proposition for your company’s product in
the target market? (Session 7) How does it address the key leverage points and the resistance points
that you identified in Section 3 above? Develop a simple spreadsheet
model showing how a typical customer would benefit from the product. (You
may want to modify the model provided in the EMS
case.)
- Market Segmentation: Now that you've pinpointed your value
proposition, scan and evaluate the potential market segments using the
Factor Mapping Tool from Assignment 2.
Modify the factors as needed to better fit your technology. (Session 8, Session9, and
Session 10)
- Demand Analysis/Forecast:
Having identified the target market and market segments
you will pursue, build a simple spreadsheet model to forecast demand for your company’s
product in those segments. You may modify the demand model (Cellular Sales
Forecast) linked to Session 11 or build your own model. Include in
your model factors that "drive" demand (both stimulators and
inhibitors). Model the uncertainty in these factors using @RISK. What is
the assumption behind your projected market share (Rule of 3, Increasing
Returns, etc.)? (Session 11
and Session 12)
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Part II
(Sections 7-12). Marketing Strategy (due Session 28):
- Plan Validation Strategy (market research): In the course of formulating your
market analysis and marketing strategy, you have made a number of implicit assumptions
about your market's attitude and expected behavior (e.g., its willingness to pay a premium
for your company’s product). What are these assumptions, and how would you test them
through market research? Consider secondary research, survey research, user studies, and
trials. (Session 13 and Session
14) Example: see Market
Research Plan for EMS. Over the remainder of the semester: Carry
out your research by conducting at least eight interviews with experts
or customer representatives, integrate interview findings into your
marketing plan, and append interview summaries.
- Marketing Strategy: Having pinpointed your
market, what marketing strategy (e.g., which of Porter’s four generic competitive
strategies; which of the three competitive positions) would you apply to your product?
Why? Which quadrant of the strategy matrix and which position do your
key competitors seem to be occupying? (Session 15)
Develop a bowling pin model for the market dissemination of your
technology (Session 16 -
see lecture notes: Moving from the Early Adopter to the Mainstream
Market).
- Product Strategy: How can your company create competitive differentiation from
current competitors and potential entrants (e.g., specific features, customer service,
brand/reputation, price, multiple products) through the product's
life cycle? (Session 17,
Session 18, and Session
19)
- Pricing Strategy: Formulate a pricing strategy for your company’s
product.
What market entry price and price path would this strategy suggest? Why? (Sessions
20-21).
Using the scenario model introduced in Session 22,
build a business model to show your projected profitability under
alternative plausible scenarios.
- Promotional Strategy: Who are the key buying influences
affecting purchasing decisions in your target market? What are their
"hot buttons" and what are the key messages you will
communicate about your product? What marketing communication mix will
you use to promote it? (Session 24)
- Partnering Strategy: What gaps or competitive weaknesses does your company have
that might be offset by an alliance with a partner? What are the characteristics of
companies it should seek out as partners? Which type of alliance would you
recommend? (Session 25)
- Executive Summary
(maximum 300
words): The final section (which should appear in front of the marketing plan, behind the
cover sheet) is the executive summary. It is designed to give a senior executive of the
company a top-level view of the key conclusions of the analysis and key elements of the
strategy. It is intended as a stand-alone read for a
CEO-level executive and should not require him/her to read the rest of the
document to learn your major points.
Appendices. The appendices should contain copies of the original source material
you used in building your market plan, as well as any additional tables, charts, etc.,
that you choose not to include in the body of the market plan. The appendices should be
numbered, with a list of appendices in front. When drawing on information from one of the
appendices in the market plan itself, cite the appendix by number and page.
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Suggested
Approach to Building the Market Plan
Build your marketing plan in stages over the semester, after each topic is
concluded. Twice during the semester (Sessions 15 and 28), you'll be asked to present your
plan.
- Get a "feel" for the company and the industry.
Once your proposed company
and product are approved, select from the sources below some product literature and three
or four articles from the trade or business press. Reading them should give you enough of
a "feel" for the company, the product, and the industry to carry out the
assignment. You can always seek out additional information later. If
your company is local, schedule an initial meeting and ask your client to
introduce you to their organization and to orient you to their product
line.
- Familiarize yourself with the concepts and tools for each section.
For each section
of the plan, start by reviewing the lecture notes on that topic. Then review the example
provided on the Xerox Network Printer (XNP), which may be accessed from the session web
page.
- Stick to the schedule.
Plan to complete each section the week after the lecture on
it. Time will be set aside at the beginning of the following week’s session to
discuss problems and issues with the assignment.
- Tie it together for the presentations.
For the two formal PowerPoint presentations
of your plan to the class (Sessions 15 and 28), review and revise the sections so that
earlier sections are consistent with those developed later. Presentations should follow
the organization described above.
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Data Sources
The intent of this project is not to achieve a usable marketing plan based
on detailed inside knowledge of the company, the technology, or the product. When you are
developing a real market plan, presumably you will have access to this information.
Rather, the intent, as discussed earlier, is to give you a chance to practice applying the
marketing tools developed during the course. Accordingly, you are expected to have only a
rudimentary knowledge of the company, the product, the underlying technology, the
industry, and the target market. This information may be obtained from publicly available
sources.
Some public sources of company, industry and product information:
- The company’s and its competitors’ corporate websites.
- EDGAR (the electronic version of all public
companiy filings with the Securities and Exchange Commission)
The following sources are available only to registered Vanderbilt University students
or via paid subscription.
- ProQuest
– an on-line data base indexing selected articles from approximately 1200
international business and management periodicals. ProQuest is accessible from any
computer within the Vanderbilt network. Ignore the password window and hit the Connect
button to go directly to the search engine.
- Business & Industry
- Complements ProQuest by offering access to 600 industry-specific trade journals and
general business sources.*
- Business Premiere/Regional Business
News - covers harder-to-find local and regional business information, for example, on privately
held companies, from sources that the other data bases might otherwise miss: city, local,
state, and regional business publications, daily newspapers, and business-focused news
wire services.
- Other data bases available through Vanderbilt’s Walker Management Library.
*Accessible only from a terminal at the Walker Management Library.
Making Assumptions When Information is Not Available. Where information that you
need is not available from public sources (for example, the company’s cost of
manufacturing the product), you are asked to make an explicit educated assumption.
Briefly indicate how the conclusions or recommendations would change if the assumption
doesn’t hold (i.e., sensitivity analysis). In the final section of the marketing plan
(validation), you will explain how you would obtain the information needed to
confirm the assumption.
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Grading
Standards
The marketing plan will consist of two parts, a market analysis, to be submitted
Session 15, and a marketing strategy (accompanied by a revised market analysis), to be
submitted Session 28. Each part will include both a written document and a PowerPoint
presentation. The following criteria will be used to evaluate the marketing plans:
- Application of Course Concepts
. Have you intelligently and appropriately
applied the course concepts to your situation? Not every tool will apply in every
situation.
- Domain Knowledge (specificity).
Have you learned enough about the industry to know
its specific "hot buttons" so that your marketing advice is
relevant? Generic marketing advice that applies to all industries all the
time is of little or no value to a particular industry.
- Strength of Argument.
Are your recommendations persuasive
(without being "salesy")? Are they supported by data and
transparent logic? Is the plan internally consistent: Is your marketing
strategy consistent with the market analysis, and are the various
marketing tactics (product, pricing, etc.) consistent with the overall strategy and with each
other?
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Model
Student Marketing Plans
The following exemplary plans (posted with permission of their
authors) provide an example of the scope and content of what is expected.
Monchromatic Monochromatic X-Ray Mammography System: MXISystems
(courtesy of Davis Soans, graduate student in Biomedical Engineering, Vanderbilt
University). Excellent use of course concepts and tools, combined with deep
domain research.
Real-time Measurement of Material Properties for Food-Processing Industry:
XFlo
Solutions (courtesy of Paul Carau, Hewlett-Packard Corp., and James Taber,
Agilent Corp.) One of the all-time exemplary marketing plans in
terms of clarity of exposition, research thoroughness, use of the course tools,
and strategic thinking.
Communicating PDA Application: Wireless
Point-of-Sale Systems for Restaurants (courtesy of Will and Amber
Hopper and Jason Tomlinson). Clear, concise execution. Good choice of segments.
Particularly good use of course tools and @RISK - see value proposition and
demand analysis. Strategy really "clicks" with analysis.
IP-based Storage Area Network
(SAN): iSCSI Market Plan
(courtesy of Chris Xydes, IBM Corp.). This plan is a model of clarity and excellent
execution, with particularly effective use of the course concepts and modeling
tools. See in particular how he modeled his value proposition (pp. 17-19) and
his demand analysis for two distinct segments (pp. 22-26). The only other thing
I would like to have seen would be an NPV model included within his pricing
strategy (a straightforward extension of the demand model).
Broadband Wireless Communication: MobilStar
Network Corporation (courtesy of Vijay Bharatiya). This may be the most
successful marketing plan submitted in its explicit application of course
concepts to an innovative technology. While it is longer than would be necessary
for use in industry, much of the plan was used to link it to relevant concepts
presented in the course, making it an exceptionally useful model for future
plans. Particularly noteworthy is the use of the Motorola model for building a
business plan for MobilStar.
E-commerce Software: E-Wallet
for Palm (courtesy of Peter Simpson,
Marck Vaisman, and Maximilian Wolf). This is a very successful attempt to apply
the course concepts to a pure e-commerce technology. E-Wallet is a software
program for personal digital assistants such as the Palm Pilot that seeks to
eliminate the need to carry a wallet (!), including credit cards, driver's
license, and other key personal information. This plan demonstrates the level of
strategic thinking that is the best that is coming out of any top MBA program in
the country. The team did a particularly good job wrestling with the business
model issue.
Alternative Engine Technology: Fuel
Cells in the Automotive Industry (Courtesy of Alejandro
Franco): This is one of the most ambitious, all-out marketing plans ever
attempted for this course. It creatively applies almost every concept presented
in the lectures. Of particular interest are the use of the Motorola model for
demand modeling and an @RISK model for modeling the value proposition. Also note
the extensive integration of reference material.
Consumer Electronics Product: Divx (3 files).
This much shorter, simpler plan makes creative use of @RISK to model different strategy
options:  DIVX
Marketing Plan, 
Presentation,
 Worksheet.
(Courtesy of Brett Baier, Square-D Corporation)
Medical Technology: Nanoparticle
Drug Delivery System
(courtesy of Brooke Fahlencamp)
This plan was distinguished by the excellent logical flow and thorough,
well-documented research. (To be fair, this paper has very extensive
research that was also used in another paper for a class in biomedical
engineering. I wouldn't expect that much research for a marketing plan
submission alone.)
Advanced Imaging Technology: IPIX
(Courtesy of Mark Provencal)
This marketing plan for virtual studios applications (broadcast and web-based) is
outstanding, particularly the charts and graphics (awesome), the technical
description, and your research on the market and competition.
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