Optimus Template

Performance Analysis

This section should contain various performance metrics including the financial implications of the plan in terms of contributions to the company’s bottom line. HOWEVER, as was stated in the beginning of the Marketing Plan tutorial, the marketing plan is generally a component of a larger business plan. We do not cover a full financial discussion such as a full balance sheet, income statement, detailed ratio analysis, etc., though these could be included if necessary. Again, numerous tables and graphs should be presented. (Length: 2-3 pages)

• Marketing Contribution
  • Show revenue versus expenses for marketing decisions
    • Revenue should follow sales forecasts (see Part 4)
    • Show expenses by category (e.g., advertising) and sub-category (e.g., types of advertising)
  • Breakdown by:
    • Product
    • Segment/Geographic area
    • Distribution Network/Channel
• Breakeven Analysis:
  • Primarily for plans that involve the sale of tangible products, the breakeven analysis indicates the level of sales (generally described in terms of number of units sold) required before the company realizes positive marketing contribution.
  • Requires understanding of:
    • Fixed costs – cost that occur no matter level of sales
    • Variable costs – cost that may change as level of sales varies
  • Present as both graph and chart
    • Show breakeven point over level of sales volume
      • From zero through best scenario sales level
    • Show breakeven over time
• Ratio Analysis
  • Limit to important marketing ratios that are common to the industry
    • e.g., sales cycle, advertising-to-sales, conversions from trial to purchase, website traffic-to-search engine marketing, etc.

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