Page 87 - Marketing Management

64 PART 1 UNDERSTANDING MARKETING MANAGEMENT

Milestones

TABLE 4.3 Milestones

Plan

Milestones Start Date End Date Budget Manager Department
Marketing plan completion 1/1/11 2/1/11 $ 0 Stan Marketing
Web site completion 1/1/11 3/15/11 $20,400 outside firm Marketing
Advertising campaign #1 1/1/11 6/30/11 $ 3,500 Stan Marketing
Advertising campaign #2 3/1/11 12/30/11 $ 4,550 Stan Marketing
Development of the retail channel 1/1/11 11/30/11 $ 0 Stan Marketing
Totals $28,450

Monthly Expense Budget ■ Customer satisfaction
■ New-product development

TABLE 4.4 Marketing Expense Budget
5.1 Implementation
The following milestones identify the key marketing programs. It is
Marketing Expense
important to accomplish each one on time and on budget.
Budget 2011 2012 2013
Web Site $ 25,000 $ 8,000 $ 10,000 5.2 Marketing Organization
Advertisements $ 8,050 $ 15,000 $ 20,000
Stan Blade will be responsible for the marketing activities.
Printed Material $ 1,725 $ 2,000 $ 3,000
Total Sales and Marketing $ 34,775 $ 25,000 $ 33,000 5.3 Contingency Planning
Expenses
Difficulties and Risks
Percent of Sales 6.58% 3.60% 4.14%
■ Problems generating visibility, a function of being an Internet-
Contribution Margin $398,725 $544,652 $621,202
based start-up organization
Contribution Margin/Sales 75.42% 78.40% 77.86%
■ An entry into the market by an already-established market
competitor
5.0 Controls
Worst-Case Risks
The purpose of Pegasus’ marketing plan is to serve as a guide for
the organization. The following areas will be monitored to gauge ■ Determining that the business cannot support itself on an
performance: ongoing basis
■ Revenue: monthly and annual ■ Having to liquidate equipment or intellectual capital to cover
■ Expenses: monthly and annual liabilities