Index
ABC Banners, 240
account executives (advertising agencies), 24
administration (profit and loss matrix), 190
AdMob, Inc., 244
banner, 239–240
in market life cycle, 40
pay-per-click, 238–239
pop-up, 239–240
print, 253–254
research for, 252–253
see also promotion public relations
advertising agency(-ies), 275–283
compensation of, 276–278
evaluations of, 279
letter of agreement with, 279–280
termination of, 280
working with, 275–276
advertising plan, 117–138
and media plan, 129–136
and media strategy, 126–129
AFLAC, 119
Amazon, 238
American Express, 142, 144–145
Apple, Inc., 12, 67, 93, 110, 163, 242
average market selling price (share of market matrix), 186
average number units repeat transaction (unit and dollar volume matrix), 185
average number units trial transaction (unit and dollar volume matrix), 185
average repeat purchase cycle (repeat purchases matrix), 180, 182
backward vertical integration, 92
banner advertising, 239–240
Barnes & Noble, 140–141
benchmark studies, 112, 250–251
Best Buy, 246
Bing, 10
Bloomingdale’s, 67, 70, 113, 144, 154
brand development, 67–71, 219, 265–266
by Girl Scouts, 158
and Internet plan, 243
positioning statements in, 69–71
brand managers, 22–23
brand personality, 69–71
breakeven points, 168–169
brochures, 144–145
budgets
marketing communications, see marketing communications budget
objectives for, 272
Burger King, 144
Busch, August, III, 49
business plans, 13–17
Buss, Dale, on Girls Scouts’ branding, 158
buy-back coupons, 141
buying decisions, 58
capital-intensive markets, 44
catalogs, 145
cell phones, 241–244
charity, 157–158
Chrysler, 142
Clear Channel Communications, 241
Coach, 110
community relations, 160
company development, 219
compensation, of advertising agencies, 276–278
competitive analysis, 109–115
of distribution/customer service, 113
of manufacturing, 110–111
of promotion, 111–112
of quality, 110
of research and development, 115
of retailing, 112–113
of sales force, 114–115
competitive strength, 35–38
content-based websites, 237
contests, 143
Coolidge, Calvin, on sin, 68
Corel, 240
corporate sponsorship, 160
costs
of research and development, 28, 46
variable, 164–166
Council of American Survey Research Organization, 250
coupons, 140–141
Crayola, 12
creative departments (advertising agencies), 24
creative plan (advertising), 136–137, 252
creative strategy (advertising), 118–126, 258
Cross pens, 69
cumulative aware (trial transactions matrix), 179
cumulative second repeat (repeat purchases matrix), 182
cumulative trial (trial transactions matrix), 180
customer, net profit by, 208–213
and advertising, 118
benchmark studies for, 251
and delivery of benefits, 63–65
market segmentation in, 55–59
research and examination in, 61–63
customer perceptions, 159
customer service, 259
competitive analysis of, 113
plans for, 270–271
strategy for, 95
customer service plan, 197–200
and customer service policies, 197–198
internal monitoring in, 198–199
customer service websites, 237
Days Inn, 74
DCF, see discounted cash flow
Delta Airlines, 159
depth of line, 110
differentiation, 110
direct mail, 145
discounted cash flow (DCF)
calculation of, 79, 84–87, 97–98
and pricing, 88, 91, 169–170, 172, 173
competitive analysis of, 113
expansion in, 267
distribution (trial transactions matrix), 179
DM2PRO, 242
dollar repeat (unit and dollar volume matrix), 185
dollar share of market (share of market matrix), 187
dollars total (unit and dollar volume matrix), 185
dollars trial (unit and dollar volume matrix), 185
Dow, Roger, on goals for trade shows, 151
economies of scale, 36
electronic coupons, 141
eMarketer, 254
engineering
strategy for, 95–96
estimated sales, 219
experience curve, 75–76
calculating, 76–83
strategy models for, 87
taking advantage of, 35–36
Family Dollar, 143
first repeat (repeat purchases matrix), 182
fixed costs
control of, 49
and pricing, 163–165, 169, 171
Flemming Zulack Williamson Zauderer LLP, 14
Flipboard, 242
focus groups, 250
Ford, 124
forecasting, 203–235
by maximizing high-potential accounts, 215–235
by net profit by customer, 208–213
by net profit by product/service, 213–215
by sales volume by customer, 204–208
forward vertical integration, 92
Foursquare, 242
frequency (advertising), 129
Fuller, Steve, on paper catalogs, 145
future sales, 175–196
of new products and services, 192–195
range profit in, 188–190
repeat purchases in, 180–183
share of market in, 186–188
trial transactions in, 176–180, 193
unit and dollar volume in, 183–186
Geico, 136
general and administrative (G&A) expenses, 46
General Motors (GM), 38, 141, 257–258
Geomentum, 125–126
Girl Scouts, 158
GM, see General Motors
Godiva chocolates, 69
Google AdWords, 241
gross margin (profit and loss matrix), 189
Haagen Dazs, 69
Hamm’s Beer, 143
Hanson, Bjorn, on Marriott’s brand, 74
Harris Interactive, 241
Hasselblad cameras, 74
Hawaiian Punch, 68–69
high marginal income, 167–169
high-potential accounts, maximizing, see maximizing high-potential accounts
Holiday Inn, 144
Hopper, Dennis, 16
Iacocca, Lee, 141–142
Iagnoco, Paul, on eMarketer, 254
income
marginal, 166–169
in-house activities, 250
Intel, 67
internal marketing, 159–160
banner ads in, 239–240
for cell phones and smartphones, 241–244
pay-per-click programs in, 238–239
pop-up advertising in, 239–240
search engine optimization in, 240–241
social media in, 244–247
and types of websites, 237–238
Internet research, 254–255
Internet surveys, 251
Ipsos ASI Research, 250, 251, 253
J.C. Penney, 34
Johnson & Johnson, 68
Jones, David, on advertising, 243
Kern, Laura S., 246
Kumar, V., 198
Lampert, Edward, 34
learning curve, 36
letters of agreement, with advertising agencies, 279–280
Liu, Ellen, on social media, 246
low marginal income, 167–169
Macy’s, 55
Madison Square Garden, 127
magazine advertising, 127, 131
Magazines Publishers of America, 246
Major League Baseball, 251
Make Your Banners, 240
Mandarin Oriental, The Hotel Group, 15–16
manufacturing
competitive analysis of, 110–111
and services, 199
strategy for, 95–96
marginal income, 166–169
market analysis, 27–53
of competitive strength, 35–38
market cost structure in, 43–46
of market growth, 33–35
and market life cycle, 28, 38–41
market physical structure in, 47–51
of market size, 31–33
and price sensitivity, 42–43
profit potential in, 27–30
marketing
internal, 159–160
objectives for, 264–265
sales as part of, 192
vice president of, 22
see also specific headings
marketing (profit and loss matrix), 189
marketing communication plans, 267–269
marketing communications budget, 101–108
depth of line worksheet for, 107
importance to customer worksheet for, 105
market growth worksheet for, 104
market share objective worksheet for, 103
new products/services worksheet for, 103
participant market factor worksheet for, 102
plant utilization worksheet for, 104
premium or discounted pricing worksheet for, 106
recap worksheet for, 108
relative quality worksheet for, 106
standard vs. custom products/services worksheet for, 107–108
typical sales transaction amount worksheet for, 105
marketing management, 21–25
and choice of advertising agency, 23–25
departmental coordination in, 21
organizational setup for, 22–23
marketing plan
components of, 3–6, see also specific components
summary of, 263–274
marketing units (MUs), 219–220, 223
market life cycle
and profit potential, 28
stages of, 38–41
market pricing and value matrix, 190–192
market profit potential, 27–30, 51–53, 56
market(s)
cost structure of, 43–46
determining your, 10
discovering new, 10
growth of, 33–35
physical structure of, 47–51
seasonal, 48–50
service, 45
market segmentation
in customer analysis, 55–59
as factor in market physical structure, 48, 50
Marriott Hotels, 73, 74, 95, 110
Mars, Incorporated, 143
maximizing high-potential accounts, 203, 204, 215–235
by determining number of share points and cost per marketing unit, 220–223
by estimating sales potential and company development, 217–220
examples of, 224–233
McDonald’s, 67, 110, 142, 157, 245
McKinney (advertising agency), 136, 137
Mediabrands, 125
media departments (advertising agencies), 24–25
media plan (advertising), 129–136
media strategy (advertising), 126–129
Memorial Sloan-Kettering Cancer Center, 120, 121
Merck, 35
Midwest Express, 197
milestone calendars, 273
Miller Brewing, 48
MillerCoors LLC, 11
Mininni, Ted, on resonant brands, 12–13
mobile phones, 241–244
Montessori schools, 74
MUs (marketing units), 219–220, 223
Mylikes.com, 247
National Basketball Association, 251
National Football League (NFL), 157
National Hockey League, 251
Neiman Marcus, 67
net present value, 170
net profit
by customer, forecasting by, 208–213
by product/service, forecasting by, 213–215
New Jersey Nets, 127
newly aware (trial transactions matrix), 179
newspaper advertising, 128, 136
news releases, 155
new trial (trial transactions matrix), 179
new triers (repeat purchases matrix), 182
New York Times, 154
NFL (National Football League), 157
Nordstrom’s, 197
objectives, 17–19
OfficeMax, 140
Ogilvy North America, 246
Omniture, 254–255
operating profit, 46–47
other costs (profit and loss matrix), 190
OXO, 12
P.A. Semi, 93
Panera Bread, 74
participant market factor, 101
pay-per-click (PPC) programs, 238–239
percent triers repeat continuously (repeat purchases matrix), 182
percent triers repeat once (repeat purchases matrix), 180, 182
percent triers repeat twice (repeat purchases matrix), 182
perk charts, 273
Petersen, J. Andrew, 198
Philip Morris, 48
Pizza Hut, 245
planning process, 9–19
business plan in, 13–17
strategic plan in, 10–13
use of fact book in, 17–18
point of purchase (POP) displays, 142–143
Poise, 16
pop-up advertising, 239–240
positioning statements, 69–71, 265
potential buyers aware (trial transactions matrix), 179
potential buyers trying (trial transactions matrix), 180
PPC (pay-per-click) programs, 238–239
price deals, 139–140
price per unit (unit and dollar volume matrix), 185
price sensitivity, 42–43
price/volume relationship, 167–168
determining breakeven points for, 168–169
and discounted cash flow, 88, 91, 169–170, 172, 173
and fixed costs, 163–165, 169, 171
as part of sales plan, 190–192
and price/volume relationship, 167–168
and total marginal income, 166–167
print advertising, 253–254, see also magazine advertising
newspaper advertising
Procter & Gamble, 22–24, 35, 94, 141
product(s)
forecasting by net profit by, 213–215
new, 192–195
objectives for, 266
perceived value of, 42
plans for, 267
and public relations, 153–157
quality of, 110
strategies for, 266–267
product/service plan, 73–99
customer service and distribution strategy in, 95
and discounted cash flow, 79, 84–87, 97–98
experience curve in, 75–83, 87, 97
manufacturing and engineering strategy in, 95–96
pricing strategy in, 87–91
promotion strategy in, 94–95
sales strategy in, 95
and value added, 92–93
profit
net, 208–215
operating, 46–47
range, 188–190
profit and loss matrix (sales plan), 188–190
profit before taxes (profit and loss matrix), 190
profit potential, market, 27–30, 51–53, 56
projectability, 65
promotion, 269
advantages of, 258
competitive analysis of, 111–112
strategy for, 94–95
with videos, 245
see also advertising sales promotion plan
promotional websites, 237
public relations plan, 153–161
charity in, 157–158
community relations in, 160
and customer perception, 159
and internal marketing, 159–160
product/service publicity in, 153–157
purchase process, 60–63
purchase rate, 110
Quantcast, 255
Quattro Wireless, 242
radio advertising, 127–128, 131, 136
R&D, see research and development
reach (advertising), 129
Reeves, Rosser, on changing campaigns, 69
regulatory exposure, 49–50
reliability, 65
repeat continuously (repeat purchases matrix), 182
repeat percent of total dollars (unit and dollar volume matrix), 186
repeat purchases matrix (sales plan), 180–183
repeat % total transactions (repeat purchases matrix), 183
research and development (R&D)
competitive analysis of, 115
and market life cycle, 39–40
markets requiring high levels of, 43–44
research plan, 249–255, 269–270
advertising research in, 252–253
benchmark studies in, 250–251
in-house data for, 250
for Internet campaigns, 254–255
for print campaigns, 249–250, 253–254
retailing, 112–113
return on investment (ROI)
and discounted cash flow, 79
and market cost structure, 44
and market share, 32
Reynolds Metals, 92
Rite Aid, 143
ROI, see return on investment
Roper, 251
Roper Canada, 253
Ross, Eddie, 144
sales
estimated, 219
forecasting by volume of, 204–208
future, see future sales
strategy for, 95
see also pricing
sales (profit and loss matrix), 189
sales closure rate (trial transactions matrix), 179
sales development, common mistakes in, 203
sales management, 271–272
sales plan(s), 163–173, 175–196
determining breakeven points in, 168–169
discounted cash flow in, 169–170, 172, 173
fixed costs in, 163–165, 169, 171
forecasting by maximizing high-potential accounts, 215–233
forecasting by net profit by customer, 208–213
forecasting by net profit by product/service, 213–215
forecasting by sales volume by customer, 204–208
for new products and services, 192–195
price/volume relationship in, 167–168
range profit in, 188–190
repeat purchases in, 180–183
share of market in, 186–188
total marginal income in, 166–167
trial transactions in, 176–180, 193
unit and dollar volume in, 183–186
see also pricing
sales presentations, 148–149
sales promotion plan, 139–152
brochures in, 144–145
coupons in, 140–141
direct mail in, 145
point of purchase displays in, 142–143
price deals in, 139–140
samples in, 141–142
sweepstakes and contests in, 143
trade shows in, 146–151
see also promotion
sales volume by customer, forecasting by, 204–208
samples (promotional), 141–142
Sandburg, Sheryl, on social media, 244
San Francisco Examiner, 11
Santana, Ralph, on social media, 244–245
search engine optimization (SEO), 237, 240–241
search engine results page (SERP), 239
search engines, 10
seasonal markets, 48–50
second repeat (repeat purchases matrix), 182
segmentation, see market segmentation
selling price, 164–166
SEO (search engine optimization), 237, 240–241
SEOCentro, 241
SERP (search engine results page), 239
service markets, 45
service(s)
development of, 219
forecasting by net profit by, 213–215
and manufacturing, 199
new, 192–195
objectives for, 266
perceived value of, 42
plans for, 267
and public relations, 153–157
quality of, 110
strategies for, 266–267
share objective, 222
share of market matrix (sales plan), 186–188, 205
share points, 220–223
Simon, Bryant, on success of Starbucks, 62, 63
Six Sigma, 10–11
smartphones, 241–244
social media, 244–247
SponsoredReviews.com, 247
Staples, 13
Starch Research, 127, 250, 251, 253
Strategic Planning Institute, 32
strategic plans, 10–13
strategic position, 263–264
strategies, 17–18
surveys, 250–251
sweepstakes, 143
target audience, 125
technology, 267
Ted Bates (advertising agency), 69
television advertising, 128, 136
Texas Instruments, 94
3M, 43–44
timing, 272–273
total marginal income, 166–167
total market in dollars (share of market matrix), 186
total market in units (share of market matrix), 186
total number of potential buyers (trial transactions matrix), 177, 178
total repeats (repeat purchases matrix), 182
total transactions (repeat purchases matrix), 183
total units (unit and dollar volume matrix), 185
trade associations, 250
trade journals, 250
trade shows, 146–151
transactional websites, 237
trial rate, 110
trial transactions matrix (sales plan), 176–180, 193
Unilever, 12
unit and dollar volume matrix (sales plan), 183–186
United Technologies, 119
unit share of market (share of market matrix), 187
units repeat (unit and dollar volume matrix), 185
units trial (unit and dollar volume matrix), 185
variable costs (VCs), 164–166
Verizon Wireless, 237–238
vertical integration, 92
vice president of marketing, 22
video promotions, 245
volume
forecasting by sales, 204–208
and price, 167–168
selling for, 203
Vought Aircraft Industries, 93
Walgreens, 143
Wal-Mart, 34, 74, 75, 95, 113, 157, 159
Web 2.0, 243
websites, 237–238, see also specific sites
WeReward, 243
Wordtracker, 241
Zucker, Sara, on Pepsi’s social media strategy, 244