[MUSIC] Hi, let me now introduce to you to the idea of the objective and the structure of the marketing plan. In the previous video we have basically discussed what is a marketing plan so we've come to a definition. That basically defines the marketing plan as a series of a steps. Where we define analysis, we define the marketing strategy objectives, and then the marketing mix, the way we're going to get there. So basically in all of these process we are trying to define what is going to happen so we are making hypothesis. So basically the idea of developing hypothesis is better much link to making decisions. So we're going to make hypothesis, we're going to make cause and effect relationship, so trying to figures cause and effect, and in fact relationships. And then, we're going to try and justify them. So let me explain you this. First, we're going to develop hypothesis. The idea is try to understand the market. And a hypothesis as you know is just a proposed explanation for a situation. So in this graph probably you can see how sales are declining in this company. So the question here is why and basically the idea is that we're going to build hypothesis. So in the example that we have in screen, we're seeing the iPhone sales for the first time declining. So that happen the first quarter of 2016. And the big question is why. Because depending on how Apple in this case is going to analyze the why, basically they are going to propose different actions. So the true fact is that sales are declining. So now we're asking us why in order to develop a hypothesis. So basically trying to figure out why sales are declining. So that's the moment when we get to the second step. When we try and figure out cause and effect relationships. So basically the question here is what if? So we say what happens if? What is going to be the effect if this is the cause? Again, let me take you a very common and well-known product which is the iPhone. And the sales decline we're seeing for the first in the first quarter of 2016 and the question is what if. So what will happen if, for example, they do a price cut? What happens if. Is it, is basically going to have a positive effect for example do sales increase? That will be an option, or that will be a cause and effect relationship. Another possible option, or another possible situation, what if they do an advertising campaign, a bigger advertising campaign? Is it going to increase the brand awareness and then it's going to increase sales? Maybe yes. Another option. What if they do a product development? So if they go there they have some price sensitive customers. And they say, let's develop a product for them. And so, what would increase sales? Is it really going to increase sales? Well, that's something they need to explore and justify. And the third stage in this process of the finding the objectives of the marketing plan is basically figuring. What is going to be the best action in order to achieve the objective? And then try and justify them. Once again, remember the marketing plan is basically a series of justifications. So in this case of the iPhone that we're using, sales going down and they decide, let's go for the product development idea. So basically they develop a new version of the iPhone, slightly cheaper, with less features probably, aiming for price-sensitive customers with the objective of finally increasing sales. That's what they did. And what is the idea that we follow this logic? First, it was the hypothesis, coming from the analysis, then there is the cause and effect relationship. And say, it is a question of price? Is it a question of advertising? Is it a question of product design? They decide to go for the product design. And then, is the justification. Why the product new version is going to help us achieve our objective of actually increasing sales and profits? That's exactly what you're going to do in your own marketing plan. You're going to look at your market. You're going to do hypothesis. You're going to try and identify cause and effect relationships. And then, you're going to propose your own actions in order to achieve your sales objective. And then, finally, you have to justify them. Once again, and I will say this many times probably, is that remember the marketing plan is no more than a series of justifications. Good. In order to close this video, let me now take you once again to the model level we're going to use. Basically, remember we are trying to ask three questions, where are we now, where do we want to be, and how we are going to get there, and basically this is going to be the model of analysis, marketing strategy, and marketing mix. And what is the last stage? Basically exploring the idea of what is going to be the result of this marketing plan. And this is called the expected results. In this last image that you have, you will see how to easily follow the marketing process that we're going to be discussing during this course. You see that you have a small box that has one, two, three, and four boxes, analysis, marketing strategy, marketing mix, and expected results. And in order to know where we are in this process, you just have to look at the right-hand side, and see, basically, which one of these boxes we are now. In the next video, we will explore more the analysis stage. And we begin our journey in the marketing plan discussion. Thank you. [MUSIC]
