Reliability of Speaking Proficiency Tests

Reliability of Speaking Proficiency Tests Introduction Testing, as a part of English teaching, is a very important procedure, not just because it can be a valuable source of information about the effectiveness of learning and teaching but also because it can improve teaching, and arouse the students motivation to learn. Testing oral proficiency has become one of the most important issues in language testing since the role of speaking ability has become more central in language teaching with the advent of communicative language teaching (Nakamura, 1993). However, assessing speaking is challenging (Luoma, 2004). Validity and reliability, as fundamental concerns and essential measurement qualities of the speaking test (Bachman, 1990; Bachman Palmer, 1996; Alderson et al, 1995), have aroused widespread attention. The validation of the speaking test is an important area of research in language testing. Test of oral proficiency just started in China 15 years ago, and there are a few very dominant tests. An increasing number of Chinese linguists are putting their attention and efforts on analysis of their validity and reliability. Institutions began to introduce speaking tests into English exams in recent years with the widespread promotion of communicative language teaching (CLT). Publications that deal with speaking tests within institutions provide some qualitative assessments (Cai, 2002). But there is relatively little research literature relating to the reliability and validity of such measures within a university context. (Wen, 2001). The College English Department at Dalian Nationalities University (DLNU) has been selected as one of thirty-one institutions of the College English Reform Demonstration Project in the Peoples republic of China. In College English (CE) course of DLNU, the speaking test is one of the four subtests of the final examination of English assessment. The examination uses two different formats. One is a semi-direct speaking test, in which examinees talk to microphones connected to computers, and have their speeches recorded for the teachers to rate afterwards. The other is a face-to-face interview. This research in this paper aims to ascertain the degree of the reliability and validity of the speaking tests. By analyzing the results of the research, teachers will become more aware of the validity and reliability of oral assessments, including how to improve the reliability and validity of speaking tests. I, as a language teacher, will gain insight into the operation of language proficiency te st, In order to better degree of reliability and validity of a particular test, I will also take other qualities of test usefulness into account when designing the language proficiency test., such as practicality and authenticity. Research questions: This study mainly addresses the questions of validity and reliability of the speaking test administered at DLNU. They are comprehensive concepts that involve analysis of test tasks, administration, rating criteria, examinee and testers attitudes towards the test, the effect of the test on teaching and teacher or learner attitudes towards learning the tests (Luoma, 2004). Therefore, the purpose of this study is to answer the following research questions: 1. Is the speaking test administered at DLNU a valid and reliable test? This question can involve the following two sub-questions: 1) To what extent is the speaking test administered at DLNU reliable? 2) To what extent is the speaking test administered at DLNU valid? 2. In what aspects and to what extent may the validity and reliability of the speaking test administered at DLNU be improved? Literature Review This chapter presents a theoretical framework of speaking construct, ways of testing speaking, marking of speaking test and the reliability and validity of speaking test, also introduces the situation of speaking test in China. Analyzing Speaking And Speaking Test The Nature Of Speaking Speaking, as a social and situation-based activity, is an integral part of peoples daily lives (Luoma, 2004). Testing second language speaking is often claimed to be a much more difficult undertaking than testing other second language abilities, capacities or competencies, skills ¼Ã‹â€ Underhill, 1987). Assessment is difficult not only because speaking is fleeting, temporal and ephemeral, but also because of the comprehensibility of pronunciation, the special nature of spoken grammar and spoken vocabulary, as well as the interactive and social features of speaking (Luoma, 2004), because of the â€Å"unpredictability and dynamic nature† of language itself (Brown, 2003). To have a clear understanding of what it means to be able to speak a language, we must understand that the nature and characteristics of the spoken language differ from those of the written form (Luoma, 2004; McCarthy OKeefe, 2004; Bygate, 2001) in its grammar, syntax, lexis and discourse patterns due to the nature of spoken language. Spoken English involves reduced grammatical elements arranged into formulaic chunk expressions or utterances with less complex sentences than written texts. Spoken English breaks the standard word order because the omitted information can be restored from the instantaneous context (McCarthy OKeefe, 2004; Luoma, 2004; Bygate, 2001; Fulcher, 2003). Spoken English contains frequent use of the vernacular, interrogatives, tails, adjacency pairs, fillers and question tags which have been interpreted as dialogue facilitators (Luoma, 2004; Carter McCarthy, 1995). The speech also contains a fair number of slips and errors such as mispronounced words, mixed sounds, and wrong words due to inattention, which is often pardoned and allowed by native speakers (Luoma, 2004). Conversations are also negotiable, unpredictable, and susceptible to social and situational context in which the talks happen (Luoma, 2004). The Importance Of Speaking Test Testing oral proficiency has become one of the most important issues in language testing since the role of speaking ability has become more central in language teaching with the advent of CLA (Nakamura, 1993). Of the four language skills (listening, speaking, reading, writing), listening and reading occur in the receptive mode, while speaking and writing exist in the productive mode. Understanding and absorption of received information are foundational while expression and use of acquired information demonstrate an improvement and a more advanced test of knowledge. A lot of interests now in oral testing is partly because second language teaching is more than ever directed towards the speaking and listening skills ¼Ã‹â€ Underhill, 1987). Language teachers are engaged in â€Å"teaching a language through speaking† (Hughes, 2002:7). On one hand, spoken language is the focus of classroom activity. There are often other aims which the teacher might have: for instance, helping the student gain awareness of practice in some aspect of linguistic knowledge (ibid). On the other hand, speaking test, as a device for assessing the learners language proficiency also functions to motivate students and reinforce their learning of language. This represents what Bachman (1991) has called an â€Å"interface† between second language acquisition (SLA) and language testing research. However, assessing speaking is challenging, â€Å"because there are many factors that influence our impression of how well someone can speak a language† (Luoma, 2004:1) as well as unpredictable or impromptu nature of the speaking interaction. The testing of speaking is difficult due to practical obstacles and theoretical challenges. Much attention has been given to how to perfect the assessment system of oral English and how to improve its validity and reliability. The communicative nature of the testing environment also remains to be considered (Hughes, 2002). The Construct Of Speaking Introduction To Communicative Language Ability (CLA) A clear and explicit definition of language ability is essential to language test development and use (Bachman,1990). The theory on which a language test is based determines which kind of language ability the test can measure, This type of validity is called construct validity. According to Bachman (1990:84), CLA can be described as â€Å"consisting of both knowledge or competence and the capacity for implementing or executing that competence in appropriate, contextualized communicative language use†. CLA includes three components: language competence, strategic competence and pyschophysiological mechanisms. The following framework (figure 2.1) shows components of communicative language ability in communicative language use (Bachman,1990:85). Knowledge Structures Language Competence Knowledge of the world Knowledge Of Language Strategic Competence Psychophysiological Mechanisms Context Of Situation This framework has been widely accepted in the field of language testing. Bachman (1990:84) proposes that â€Å"language competence† essentially refers to a set of specific knowledge components that are utilized in communication via language. It comprises organizational and pragmatic competence. Two areas of organizational knowledge that Bachman (1990) distinguishes are grammatical knowledge and textual knowledge. Grammatical knowledge comprises vocabulary, syntax, phonology and graphology, and textual knowledge, comprises cohesion and rhetorical or conversational organization. Pragmatic competence shows how utterances or sentences and texts are related to the communicative goals of language users and to the features of the langue-use setting. It includes illocutionary acts ¼Ã…’or language functions, and sociolinguistic competence, or the knowledge of the sociolinguistic conventions that govern appropriate language use in a particular culture and in varying situations in t hat culture (Bachman, 1987). Strategic competence refers to mastery of verbal and nonverbal strategies in facilitating communication and implementing the components of language competence. Strategic competence is demonstrated in contextualized communicative language use, such as socialcultural knowledge, real-world knowledge and mapping this onto the maximally efficient use of existing language abilities. Psychophysiological competence refers to the visual and auditory skill used to gain access to the information in the administrators instructions. Among other things, psychophysiological competence includes things like sound and light. Fulchers Construct Definition To know what to assess in a speaking test is a prime concern. Fulcher (1997b) points out that the construct of speaking proficiency is incomplete. Nevertheless, there have been various attempts to reflect the underlying construct of speaking ability and to develop theoretical frameworks for defining the speaking construct. Fulchers framework (figure 2.2) (Fulcher, 2003: 48) describes the speaking construct. As Fulcher (2003) points out that there are many factors that could be included in the definition of the construct: Phonology: the speaker must be able to articulate the words, have an understanding of the phonetic structure of the language at the level of the individual word, have an understanding of intonation, and create the physical sounds that carry meaning. Fluency and accuracy: these concepts are associated with automaticity of performance and the impact on the ability of the listener to understand. Accuracy refers to the correct use of grammatical rules, structure and vocabulary in speech. Fluency has to do with the ‘normal speed of delivery to mobilise ones language knowledge in the service of communication at relatively normal speed. The quality of speech needs to be judged in terms of the gravity of the errors made or the distance from the target forms or sounds. Strategic competence: this is generally thought to refer to an ability to achieve ones communicative purpose through the deployment of a range of coping strategies. Strategic competence includes both achievement strategies and avoidance strategies. Achievement strategies contain overgeneralization/morphological creativity. Learners transfer knowledge of the language system onto lexical items that they do not know, for example, saying â€Å"buyed† instead of â€Å"bought†, Speakers also learn approximation: learners replace an unknown word with one that is more general or they use exemplification, paraphrasing (use a synonym for the word needed), word coinage (invent a new word for an unknown word), restructuring (use different words to communicate the same message), cooperative strategies (ask for help from the listener) , code switching (take a word or phrase from the common language with the listener in order to be understood) and non-linguistic strategies (use gestur es or mime, or point to objects in the surroundings to help to communicate). Avoidance or reduction strategies consist of formal avoidance (avoiding using part of the language system) and functional avoidance (avoiding topical conversation). Strategic competence includes selecting communicative goals and planning and structuring oral production so as to fulfill them. Textual knowledge: competent oral interaction involves some knowledge of how to manage and structure discourse, for example, through appropriate turn-taking, opening and closing strategies, maintaining coherence in ones contributions and employing appropriate interactional routines such as adjacency pairs. Pragmatic and sociolinguistic knowledge: effective communication requires appropriateness and the knowledge of the rules of speaking. A range of speech acts, politeness and indirectness can be used to avoid causing offence. Ways Of Testing Speaking Clark (1979) puts forward a theoretical basis to discriminate three types of speaking tests: direct, semi-direct and indirect tests. Indirect tests belong to â€Å"procommunicative† era in language testing, in which the test takers are not actually required to speak. It has been regarded as having the least validity and reliability, while the other two formats are more widely used (OLoughlin, 2001). In this section, the characteristics, advantages and disadvantages of the direct and semi-direct test are presented, The Oral Proficiency Interview Format One of the earliest and most popular direct speaking test formats, and one that continues to exert a strong influence, is the oral proficiency interview (OPI) –developed originally by the FSI (Foreign Service Institute) in the United States in the 1950s and later adopted by other government agencies. It is conducted with individual test-taker by a trained interviewer, who assesses the candidate using a global band scale (OLoughlin, 2001). It typically begins with a warm-up discussion of a few easy questions, such as getting to know each other or talking about the days events. Then the main interaction contains the pre-planned tasks, such as describing or comparing pictures, narrating from a picture series, talking about a pre-announced or examiner-selected topic, or possibly a role-play task or a reverse interview where the examinee asks question of the interviewer (Luoma. 2004). An important example of this type of test is the speaking component of the International English L anguage Testing System (IELTS), which is adopted in 105 different countries around the world each year. The Advantage Of An Interview Format The oral interview was recognized as the most commonly used speaking test format. Fulcher (2003) suggests that it is partly because the questions used can be standardized, making comparison between test takers easier than when other task types are used. Using this method, the instructor can get a sense of the oral communicative competence of students and can overcome weakness of written exams, because the interview, unlike written exams, â€Å"is flexible in that the questions can be adapted to each examinees performance, and thus the testers have more controls over what happens in the interaction† (Luoma, 2004:35). It is also relatively easy to train raters and obtain high inter-rater reliability (Fulcher, 2003). The Disadvantage Of An Interview Format However, concern and skepticism exist about whether it is possible to test other competencies or knowledge because of the nature of the discourse that the interview produces (van Lier, 1989). a. Issue of time For the instructor, time management can be quite an issue. For instance, using a two-hour period for exams for 20 students means each student is allowed only six minutes for testing. This includes the time needed to enter the room and adjust to the setting. With such a time limit the student and instructor can hardly have any kind of normal real-world conversation. b. Issue of asymmetrical relationship The asymmetrical relationship between examiners and candidates elicits a form of inauthentic and limited socio-cultural contexts (van Lier, 1989; Savignon, 1985; Yoffe, 1997). Yoffe (1997) commented on ACTFL (American Council on the Teaching of Foreign Languages) OPI that the tester and the test-taker are â€Å"clearly not in equal positions† (Yofee, 1997). The asymmetry is not specific to the OPI but is inherent in the notion of an interview as an exchange wherein one person solicits information in order to arrive at a decision while the interlocutor produces what he or she perceives as most valued. The interviewee is, in most cases, acutely aware of the ramifications of the OPI rating and is, consequently, under a great deal of stress. Van Lier (1989) also challenges the validity of OPI in terms of the asymmetry between them because â€Å"the candidate speaks as to a superior and is unwilling to take the initiative† (van Lier, 1989). Under the unequal relationship, the speech discourse, such as turn –taking, topic nomination and development, and repair strategies are all substantially different from normal conversational exchanges (see van Lier 1989). c. Issue of interviewer variation Given the fact that the interviewer has considerable power over the examinee in an interview, concerns have been aroused about the effect of the interlocutor (examiner) on the candidates oral performance. Different interviewers vary in their approaches and attitudes toward the interview. Brown (2003) warns the danger of such variation to fairness. OSullivan (2000) conducts an empirical study that indicated learners perform better when interviewed by a woman, regardless of the sex of the learner. Underhill (1987:31) expresses his concern on the unscripted â€Å"flexibility†¦ means that there will be a considerable divergence between what different learners say, which makes a test more difficult to assess with consistency and reliability.† Testing Speaking In Pairs There has been a shift toward a paired speakers format: two assessors examine two candidates at a time. One assessor interacts with the two candidates and rates them on a global scale, while the other does not take part in the interaction and just assessesusing an analytic scale. The paired oral test has been used as part of large-scale, international, standardized oral proficiency tests since the late 1980s (Ildikà ³, 2001). Key English Test (KET), Preliminary English Test (PET), First Certificate in English (FCE) and Certificate in Advanced English (CAE) make use of the paired format. In a typical test, the interaction begins with a warm-up, in which the examinees introduce themselves to the interlocutor, followed by two pair interaction task. The talk may involves comparing two photographs by each candidate at first, such as in Cambridge First Certificate (Luoma, 2004), then a two-way collaborative task between the two candidates based on more photographs, artwork or computer gra phics, and ends up with a three-way discussion with the two examinees and the interlocutor about a general theme that is related to the earlier discussion. The advantages of the paired interview format Many researchers claim that the paired format is preferable to OPI. The reasons are: a. The changed role of the interviewer frees up the instructors in order to pay closer attention to the production of each candidate than if they are participants themselves (Luoma, 2004). b. The reduced asymmetry allows more varied interaction patterns, which elicits a broader sample of discourse and increased turn-takings than were possible in the highly asymmetrical traditional interview (Taylor, 2000). c. The task type based on pair-work will generate a positive washback effect on classroom teaching and learning (Ildiko, 2001). In the case of the instructor following Communicative Language Teaching (CLT) methodology, where pair work may take up a significant portion of a class, it would be appropriate to incorporate similar activities in the exam. In that way the exam itself is much better integrated into the fabric of the course. Students can be tested for performance related to activities done in class. There may also be benefits in regards to student motivation. If students are aware that they will be tested on activities similar to the ones done in class, they may have more incentive to be attentive and use class time effectively. The disadvantages of the paired interview format There are, however, also concerns voiced regarding the paired format. a. Mismatches between peer interactants The most frequently raised criticisms against the paired speaking test relate to various forms of mismatches between peer interactants (Fulcher, 2003). Ildiko (2001) points out that when a candidate has to work with an incomprehensible or uncomprehending peer partner, it may negatively influence the candidates performance. As a consequence, in such cases it is quite impossible to make a valid assessment of candidates abilities. b. Lack of familiarity between peer interactants The extent to which this testing format actually reduces the level of anxiety of test-takers compared to other test formats remains doubtful (Fulcher, 2003). OSullivan (2002) suggests that the spontaneous support offered by a friend positively reduces anxiety and task performance under experimental conditions. However, the chances are quite high that the examinee will meet with strangers as his or her peer interactant. It is hard to imagine how these strangers can carry out some naturally flowing conversations. Estrangement, misinterpretation and even breakdown may occur during their talk. c. Lack of control of the discussion Problems are generated if the examiner loses control of the oral task (Luoma, 2004). When the instructions and task materials are not clear enough to facilitate the discussion, the examinees conversation may go astray. Luoma (2004) points out that testers often feel uncertain about what amount of responsibility that they should give to the examinees. Furthermore, examinees do not know what kind of performance will earn them good results without the elicitation of the examiner. When one of the examinees has said too little, the examiner ought to monitor and jump in to give help when necessary. Semi-Direct Speaking Tests The term â€Å"semi-direct† is employed by Clark (1979:36) to describe those tests that are characterized â€Å"by means of tape recordings, printed test booklets, or other ‘non-human elicitation procedures, rather than through face-to-face conversation with a live interlocutor.† Appearing during 1970s, and being an innovative adaptation of the traditional OPI, the semi-direct method normally follows the general structure of the OPI and makes an audio-recording of the test takers performance which is later rated by one or more trained assessors (Malone, 2000). Examples of the semi-direct type used in the U.S.A. are the simulated oral proficiency interviews (SOPI) and the Test of Spoken English 2000 (TSE) (Ferguson, 2009). Examples in U.K. include the Test in English for Education Purpose (TEEP) and the Oxford-ARELS Examinations (OLoughlin, 2001). Another mode of delivery is testing by telephone as in the PhonePass test (the test mainly consists of reading sentenc es aloud or repeating sentences), or even video-conferencing (Ferguson, 2009). The Advantages Of The Semi-Direct Test Type First, the semi-direct test is more cost efficient than direct tests, because many candidates can be tested simultaneously in large laboratories and administered by any teacher, language lab technician or aide in a language laboratory where the candidate hears taped questions and has their responses recorded (Malone, 2000). Second, the mode of testing is quite flexible. It provides a practical solution in situations where it is not possible to deliver a direct test (OLoughlin, 2001), and it can be adapted to the desired level of examinee proficiency and to specific examinee age groups, backgrounds, and professions (Malone, 2000). Third, semi-direct testing represents an attempt to standardize the assessment of speaking while retaining the communicative basis of the OPI (Shohamy, 1994). It offers the same quality of interview to all examinees, and all examinees respond to the same questions so as to remove the effect that the human interlocutor will have on the candidate (Malone, 2000). The uniformity of the elicitation procedure greatly increases the reliability of the test. Some empirical studies (Stansfield, 1991) show high correlations (0. 89- 0. 95) between the direct and semi-direct tests, indicating the two formats can measure the same language abilities and the SOPI can be the equivalent and surrogate of the OPI. However, there are also disadvantages. The Disadvantages Of The Semi-Direct Test Type First, the speaking task in semi-direct oral test is less realistic and more artificial than OPI (Clark, 1979; Underhill, 1987). Examinees use artificial language to â€Å"respond to tape-recorded questions situations the examinee is not likely to encounter in a real-life setting† (Clark, 1979:38). They may feel stressful while speaking to a microphone rather than to another person, especially if they are not accustomed to the laboratory setting (OLoughlin, 2001). Second, the communicative strategy and speech discourse elicited in these semi-direct SOPIs is quite different from that found in typical face-face interaction – being more formal, less conversation-like (Shohamy, 1994). Candidates tend to use written language in tape-mediated test, more of a report or narration; while, they focus more on interaction and on delivery of meanings in OPI. Third, there are often technical problems that can result in poor quality recordings or even no recording in the SOPI format (Underhill, 1987). In conclusion, one cannot assume any equivalence between a face-to face test and a semi-direct test (Shohamy, 1994). It may be that they are measuring different things, different constructs, so the mode of test delivery should be adopted on the basis of test purpose, accuracy requirement, practicability, and impartiality (Shohamy, 1994). Stansfield (1991) proposes the OPI is more applicable to the placement test and evaluation test of the curriculum, while SOPI is more appropriate for large-scale test with requirement of high reliability. Marking Of Speaking Test Marking and scoring is a challenge in assessing second language oral proficiency.. Since only a few elements of the speaking skill can be scored objectively, human judgments play major roles in assessment. How to establish the valid, reliable, effective marking criteria scales and high quality scoring instruments have always been central to the performance testing of speaking (Luoma, 2004). It is important to have clear, explicit criteria to describe the performance, as it is important for raters to understand and apply these criteria, making it possible to score them consistently and reliably. For these reasons, rating and rating scales have been a central focus of research in the testing of speaking (Ferguson, 2009). Definition Of Rating Scales A rating scale, also referred to as a â€Å"scoring rubric† or â€Å"proficiency scale† is defined by Davies et al as following (see Fulcher, 2003):  ·consisting of a series of band or levels to which descriptions are attached  ·providing an operational definition of the constructs to be measured in the test  ·requiring training for its effective operation Holistic And Analytic Rating Scales There are different types of rating scales used for scoring speech samples. One of the traditional and commonly used distinctions is between holistic and analytic rating scales. Holistic rating scales also are referred to as global rating. With these scales, the rater attempts to match the speech sample with a particular band whose descriptors specify a range of defining characteristics of speech at that level. A single score is given to each speech sample either impressionistically or by being guided by a rating scale to encapsulate all the features of the sample (Bachman Palmer, 1996). Analytic rating scales: They consist of separate scales for different aspects of speaking ability (e.g. grammar / vocabulary; pronunciation, fluency, interactional management, etc). A score is given for each aspect (or dimension), and the resulting scores may be combined in a variety of ways to produce a composite single overall score. They include detailed guidance to raters, and rich information that they provide on specific strengths and weakness in examinee performance (Fulcher, 2003). Analytic scales are particularly useful for diagnostic purposes and for providing a profile of competence in the different aspects of speaking ability (Ferguson, 2009). The type of scale that is selected for a particular test of speaking will depend upon the purpose of the test Validity And Reliability Of Speaking Test Bachman And Palmers Theories On Test Usefulness The primary purpose of a language test is to provide a measure that can be interpreted as an indicator of an individuals language ability (Bachman, 1990; Bachman and Palmer, 1996). Bachman and Palmer (1996) propose that test usefulness including six test qualities—reliability, construct validity, authenticity, interactiveness, impact (washback) and practicality. Their notion of usefulness can be expressed as in Figure2.3: Usefulness=Reliability + Construct validity + Authenticity + Interactiveness + Impact +Practicality These qualities are the main criteria used to evaluate a test. â€Å"Two of the qualities reliability and validity are critical for tests and are sometimes referred to as essential measurement qualities† (Bachman Palmer, 1996:19), because they are the â€Å"major justification for using test scores as a basis for making inferences or decisions† (ibid). The definitions of types of validity and reliability will be presented in this section. Validity And Reliability Defining Validity The quotation from AERA (American Educational Research Association ) indicates: â€Å"Validity is the most important consideration in test evaluation. The concept refers to the appropriateness, meaningfulness, and usefulness of the specific inferences made from test scores. Test validation is the process of accu ­mulating evidence to support such inferences. A variety of inferences may be made from scores produced by a given test, and there are many ways of accumulating evidence to support any particular inference. Validity, however, is a unitary concept. Although evidence may be accumulated in many ways, validity always refers to the degree to which that evidence supports the inferences that are made from the score. The inferences regarding specific uses of a test are validated, not the test itself.† (AERA et al., 1985: 9) Messick stresses that â€Å"it is important to note that validity is a matter of degree, not all or none (Mess Reliability of Speaking Proficiency Tests Reliability of Speaking Proficiency Tests Introduction Testing, as a part of English teaching, is a very important procedure, not just because it can be a valuable source of information about the effectiveness of learning and teaching but also because it can improve teaching, and arouse the students motivation to learn. Testing oral proficiency has become one of the most important issues in language testing since the role of speaking ability has become more central in language teaching with the advent of communicative language teaching (Nakamura, 1993). However, assessing speaking is challenging (Luoma, 2004). Validity and reliability, as fundamental concerns and essential measurement qualities of the speaking test (Bachman, 1990; Bachman Palmer, 1996; Alderson et al, 1995), have aroused widespread attention. The validation of the speaking test is an important area of research in language testing. Test of oral proficiency just started in China 15 years ago, and there are a few very dominant tests. An increasing number of Chinese linguists are putting their attention and efforts on analysis of their validity and reliability. Institutions began to introduce speaking tests into English exams in recent years with the widespread promotion of communicative language teaching (CLT). Publications that deal with speaking tests within institutions provide some qualitative assessments (Cai, 2002). But there is relatively little research literature relating to the reliability and validity of such measures within a university context. (Wen, 2001). The College English Department at Dalian Nationalities University (DLNU) has been selected as one of thirty-one institutions of the College English Reform Demonstration Project in the Peoples republic of China. In College English (CE) course of DLNU, the speaking test is one of the four subtests of the final examination of English assessment. The examination uses two different formats. One is a semi-direct speaking test, in which examinees talk to microphones connected to computers, and have their speeches recorded for the teachers to rate afterwards. The other is a face-to-face interview. This research in this paper aims to ascertain the degree of the reliability and validity of the speaking tests. By analyzing the results of the research, teachers will become more aware of the validity and reliability of oral assessments, including how to improve the reliability and validity of speaking tests. I, as a language teacher, will gain insight into the operation of language proficiency te st, In order to better degree of reliability and validity of a particular test, I will also take other qualities of test usefulness into account when designing the language proficiency test., such as practicality and authenticity. Research questions: This study mainly addresses the questions of validity and reliability of the speaking test administered at DLNU. They are comprehensive concepts that involve analysis of test tasks, administration, rating criteria, examinee and testers attitudes towards the test, the effect of the test on teaching and teacher or learner attitudes towards learning the tests (Luoma, 2004). Therefore, the purpose of this study is to answer the following research questions: 1. Is the speaking test administered at DLNU a valid and reliable test? This question can involve the following two sub-questions: 1) To what extent is the speaking test administered at DLNU reliable? 2) To what extent is the speaking test administered at DLNU valid? 2. In what aspects and to what extent may the validity and reliability of the speaking test administered at DLNU be improved? Literature Review This chapter presents a theoretical framework of speaking construct, ways of testing speaking, marking of speaking test and the reliability and validity of speaking test, also introduces the situation of speaking test in China. Analyzing Speaking And Speaking Test The Nature Of Speaking Speaking, as a social and situation-based activity, is an integral part of peoples daily lives (Luoma, 2004). Testing second language speaking is often claimed to be a much more difficult undertaking than testing other second language abilities, capacities or competencies, skills ¼Ã‹â€ Underhill, 1987). Assessment is difficult not only because speaking is fleeting, temporal and ephemeral, but also because of the comprehensibility of pronunciation, the special nature of spoken grammar and spoken vocabulary, as well as the interactive and social features of speaking (Luoma, 2004), because of the â€Å"unpredictability and dynamic nature† of language itself (Brown, 2003). To have a clear understanding of what it means to be able to speak a language, we must understand that the nature and characteristics of the spoken language differ from those of the written form (Luoma, 2004; McCarthy OKeefe, 2004; Bygate, 2001) in its grammar, syntax, lexis and discourse patterns due to the nature of spoken language. Spoken English involves reduced grammatical elements arranged into formulaic chunk expressions or utterances with less complex sentences than written texts. Spoken English breaks the standard word order because the omitted information can be restored from the instantaneous context (McCarthy OKeefe, 2004; Luoma, 2004; Bygate, 2001; Fulcher, 2003). Spoken English contains frequent use of the vernacular, interrogatives, tails, adjacency pairs, fillers and question tags which have been interpreted as dialogue facilitators (Luoma, 2004; Carter McCarthy, 1995). The speech also contains a fair number of slips and errors such as mispronounced words, mixed sounds, and wrong words due to inattention, which is often pardoned and allowed by native speakers (Luoma, 2004). Conversations are also negotiable, unpredictable, and susceptible to social and situational context in which the talks happen (Luoma, 2004). The Importance Of Speaking Test Testing oral proficiency has become one of the most important issues in language testing since the role of speaking ability has become more central in language teaching with the advent of CLA (Nakamura, 1993). Of the four language skills (listening, speaking, reading, writing), listening and reading occur in the receptive mode, while speaking and writing exist in the productive mode. Understanding and absorption of received information are foundational while expression and use of acquired information demonstrate an improvement and a more advanced test of knowledge. A lot of interests now in oral testing is partly because second language teaching is more than ever directed towards the speaking and listening skills ¼Ã‹â€ Underhill, 1987). Language teachers are engaged in â€Å"teaching a language through speaking† (Hughes, 2002:7). On one hand, spoken language is the focus of classroom activity. There are often other aims which the teacher might have: for instance, helping the student gain awareness of practice in some aspect of linguistic knowledge (ibid). On the other hand, speaking test, as a device for assessing the learners language proficiency also functions to motivate students and reinforce their learning of language. This represents what Bachman (1991) has called an â€Å"interface† between second language acquisition (SLA) and language testing research. However, assessing speaking is challenging, â€Å"because there are many factors that influence our impression of how well someone can speak a language† (Luoma, 2004:1) as well as unpredictable or impromptu nature of the speaking interaction. The testing of speaking is difficult due to practical obstacles and theoretical challenges. Much attention has been given to how to perfect the assessment system of oral English and how to improve its validity and reliability. The communicative nature of the testing environment also remains to be considered (Hughes, 2002). The Construct Of Speaking Introduction To Communicative Language Ability (CLA) A clear and explicit definition of language ability is essential to language test development and use (Bachman,1990). The theory on which a language test is based determines which kind of language ability the test can measure, This type of validity is called construct validity. According to Bachman (1990:84), CLA can be described as â€Å"consisting of both knowledge or competence and the capacity for implementing or executing that competence in appropriate, contextualized communicative language use†. CLA includes three components: language competence, strategic competence and pyschophysiological mechanisms. The following framework (figure 2.1) shows components of communicative language ability in communicative language use (Bachman,1990:85). Knowledge Structures Language Competence Knowledge of the world Knowledge Of Language Strategic Competence Psychophysiological Mechanisms Context Of Situation This framework has been widely accepted in the field of language testing. Bachman (1990:84) proposes that â€Å"language competence† essentially refers to a set of specific knowledge components that are utilized in communication via language. It comprises organizational and pragmatic competence. Two areas of organizational knowledge that Bachman (1990) distinguishes are grammatical knowledge and textual knowledge. Grammatical knowledge comprises vocabulary, syntax, phonology and graphology, and textual knowledge, comprises cohesion and rhetorical or conversational organization. Pragmatic competence shows how utterances or sentences and texts are related to the communicative goals of language users and to the features of the langue-use setting. It includes illocutionary acts ¼Ã…’or language functions, and sociolinguistic competence, or the knowledge of the sociolinguistic conventions that govern appropriate language use in a particular culture and in varying situations in t hat culture (Bachman, 1987). Strategic competence refers to mastery of verbal and nonverbal strategies in facilitating communication and implementing the components of language competence. Strategic competence is demonstrated in contextualized communicative language use, such as socialcultural knowledge, real-world knowledge and mapping this onto the maximally efficient use of existing language abilities. Psychophysiological competence refers to the visual and auditory skill used to gain access to the information in the administrators instructions. Among other things, psychophysiological competence includes things like sound and light. Fulchers Construct Definition To know what to assess in a speaking test is a prime concern. Fulcher (1997b) points out that the construct of speaking proficiency is incomplete. Nevertheless, there have been various attempts to reflect the underlying construct of speaking ability and to develop theoretical frameworks for defining the speaking construct. Fulchers framework (figure 2.2) (Fulcher, 2003: 48) describes the speaking construct. As Fulcher (2003) points out that there are many factors that could be included in the definition of the construct: Phonology: the speaker must be able to articulate the words, have an understanding of the phonetic structure of the language at the level of the individual word, have an understanding of intonation, and create the physical sounds that carry meaning. Fluency and accuracy: these concepts are associated with automaticity of performance and the impact on the ability of the listener to understand. Accuracy refers to the correct use of grammatical rules, structure and vocabulary in speech. Fluency has to do with the ‘normal speed of delivery to mobilise ones language knowledge in the service of communication at relatively normal speed. The quality of speech needs to be judged in terms of the gravity of the errors made or the distance from the target forms or sounds. Strategic competence: this is generally thought to refer to an ability to achieve ones communicative purpose through the deployment of a range of coping strategies. Strategic competence includes both achievement strategies and avoidance strategies. Achievement strategies contain overgeneralization/morphological creativity. Learners transfer knowledge of the language system onto lexical items that they do not know, for example, saying â€Å"buyed† instead of â€Å"bought†, Speakers also learn approximation: learners replace an unknown word with one that is more general or they use exemplification, paraphrasing (use a synonym for the word needed), word coinage (invent a new word for an unknown word), restructuring (use different words to communicate the same message), cooperative strategies (ask for help from the listener) , code switching (take a word or phrase from the common language with the listener in order to be understood) and non-linguistic strategies (use gestur es or mime, or point to objects in the surroundings to help to communicate). Avoidance or reduction strategies consist of formal avoidance (avoiding using part of the language system) and functional avoidance (avoiding topical conversation). Strategic competence includes selecting communicative goals and planning and structuring oral production so as to fulfill them. Textual knowledge: competent oral interaction involves some knowledge of how to manage and structure discourse, for example, through appropriate turn-taking, opening and closing strategies, maintaining coherence in ones contributions and employing appropriate interactional routines such as adjacency pairs. Pragmatic and sociolinguistic knowledge: effective communication requires appropriateness and the knowledge of the rules of speaking. A range of speech acts, politeness and indirectness can be used to avoid causing offence. Ways Of Testing Speaking Clark (1979) puts forward a theoretical basis to discriminate three types of speaking tests: direct, semi-direct and indirect tests. Indirect tests belong to â€Å"procommunicative† era in language testing, in which the test takers are not actually required to speak. It has been regarded as having the least validity and reliability, while the other two formats are more widely used (OLoughlin, 2001). In this section, the characteristics, advantages and disadvantages of the direct and semi-direct test are presented, The Oral Proficiency Interview Format One of the earliest and most popular direct speaking test formats, and one that continues to exert a strong influence, is the oral proficiency interview (OPI) –developed originally by the FSI (Foreign Service Institute) in the United States in the 1950s and later adopted by other government agencies. It is conducted with individual test-taker by a trained interviewer, who assesses the candidate using a global band scale (OLoughlin, 2001). It typically begins with a warm-up discussion of a few easy questions, such as getting to know each other or talking about the days events. Then the main interaction contains the pre-planned tasks, such as describing or comparing pictures, narrating from a picture series, talking about a pre-announced or examiner-selected topic, or possibly a role-play task or a reverse interview where the examinee asks question of the interviewer (Luoma. 2004). An important example of this type of test is the speaking component of the International English L anguage Testing System (IELTS), which is adopted in 105 different countries around the world each year. The Advantage Of An Interview Format The oral interview was recognized as the most commonly used speaking test format. Fulcher (2003) suggests that it is partly because the questions used can be standardized, making comparison between test takers easier than when other task types are used. Using this method, the instructor can get a sense of the oral communicative competence of students and can overcome weakness of written exams, because the interview, unlike written exams, â€Å"is flexible in that the questions can be adapted to each examinees performance, and thus the testers have more controls over what happens in the interaction† (Luoma, 2004:35). It is also relatively easy to train raters and obtain high inter-rater reliability (Fulcher, 2003). The Disadvantage Of An Interview Format However, concern and skepticism exist about whether it is possible to test other competencies or knowledge because of the nature of the discourse that the interview produces (van Lier, 1989). a. Issue of time For the instructor, time management can be quite an issue. For instance, using a two-hour period for exams for 20 students means each student is allowed only six minutes for testing. This includes the time needed to enter the room and adjust to the setting. With such a time limit the student and instructor can hardly have any kind of normal real-world conversation. b. Issue of asymmetrical relationship The asymmetrical relationship between examiners and candidates elicits a form of inauthentic and limited socio-cultural contexts (van Lier, 1989; Savignon, 1985; Yoffe, 1997). Yoffe (1997) commented on ACTFL (American Council on the Teaching of Foreign Languages) OPI that the tester and the test-taker are â€Å"clearly not in equal positions† (Yofee, 1997). The asymmetry is not specific to the OPI but is inherent in the notion of an interview as an exchange wherein one person solicits information in order to arrive at a decision while the interlocutor produces what he or she perceives as most valued. The interviewee is, in most cases, acutely aware of the ramifications of the OPI rating and is, consequently, under a great deal of stress. Van Lier (1989) also challenges the validity of OPI in terms of the asymmetry between them because â€Å"the candidate speaks as to a superior and is unwilling to take the initiative† (van Lier, 1989). Under the unequal relationship, the speech discourse, such as turn –taking, topic nomination and development, and repair strategies are all substantially different from normal conversational exchanges (see van Lier 1989). c. Issue of interviewer variation Given the fact that the interviewer has considerable power over the examinee in an interview, concerns have been aroused about the effect of the interlocutor (examiner) on the candidates oral performance. Different interviewers vary in their approaches and attitudes toward the interview. Brown (2003) warns the danger of such variation to fairness. OSullivan (2000) conducts an empirical study that indicated learners perform better when interviewed by a woman, regardless of the sex of the learner. Underhill (1987:31) expresses his concern on the unscripted â€Å"flexibility†¦ means that there will be a considerable divergence between what different learners say, which makes a test more difficult to assess with consistency and reliability.† Testing Speaking In Pairs There has been a shift toward a paired speakers format: two assessors examine two candidates at a time. One assessor interacts with the two candidates and rates them on a global scale, while the other does not take part in the interaction and just assessesusing an analytic scale. The paired oral test has been used as part of large-scale, international, standardized oral proficiency tests since the late 1980s (Ildikà ³, 2001). Key English Test (KET), Preliminary English Test (PET), First Certificate in English (FCE) and Certificate in Advanced English (CAE) make use of the paired format. In a typical test, the interaction begins with a warm-up, in which the examinees introduce themselves to the interlocutor, followed by two pair interaction task. The talk may involves comparing two photographs by each candidate at first, such as in Cambridge First Certificate (Luoma, 2004), then a two-way collaborative task between the two candidates based on more photographs, artwork or computer gra phics, and ends up with a three-way discussion with the two examinees and the interlocutor about a general theme that is related to the earlier discussion. The advantages of the paired interview format Many researchers claim that the paired format is preferable to OPI. The reasons are: a. The changed role of the interviewer frees up the instructors in order to pay closer attention to the production of each candidate than if they are participants themselves (Luoma, 2004). b. The reduced asymmetry allows more varied interaction patterns, which elicits a broader sample of discourse and increased turn-takings than were possible in the highly asymmetrical traditional interview (Taylor, 2000). c. The task type based on pair-work will generate a positive washback effect on classroom teaching and learning (Ildiko, 2001). In the case of the instructor following Communicative Language Teaching (CLT) methodology, where pair work may take up a significant portion of a class, it would be appropriate to incorporate similar activities in the exam. In that way the exam itself is much better integrated into the fabric of the course. Students can be tested for performance related to activities done in class. There may also be benefits in regards to student motivation. If students are aware that they will be tested on activities similar to the ones done in class, they may have more incentive to be attentive and use class time effectively. The disadvantages of the paired interview format There are, however, also concerns voiced regarding the paired format. a. Mismatches between peer interactants The most frequently raised criticisms against the paired speaking test relate to various forms of mismatches between peer interactants (Fulcher, 2003). Ildiko (2001) points out that when a candidate has to work with an incomprehensible or uncomprehending peer partner, it may negatively influence the candidates performance. As a consequence, in such cases it is quite impossible to make a valid assessment of candidates abilities. b. Lack of familiarity between peer interactants The extent to which this testing format actually reduces the level of anxiety of test-takers compared to other test formats remains doubtful (Fulcher, 2003). OSullivan (2002) suggests that the spontaneous support offered by a friend positively reduces anxiety and task performance under experimental conditions. However, the chances are quite high that the examinee will meet with strangers as his or her peer interactant. It is hard to imagine how these strangers can carry out some naturally flowing conversations. Estrangement, misinterpretation and even breakdown may occur during their talk. c. Lack of control of the discussion Problems are generated if the examiner loses control of the oral task (Luoma, 2004). When the instructions and task materials are not clear enough to facilitate the discussion, the examinees conversation may go astray. Luoma (2004) points out that testers often feel uncertain about what amount of responsibility that they should give to the examinees. Furthermore, examinees do not know what kind of performance will earn them good results without the elicitation of the examiner. When one of the examinees has said too little, the examiner ought to monitor and jump in to give help when necessary. Semi-Direct Speaking Tests The term â€Å"semi-direct† is employed by Clark (1979:36) to describe those tests that are characterized â€Å"by means of tape recordings, printed test booklets, or other ‘non-human elicitation procedures, rather than through face-to-face conversation with a live interlocutor.† Appearing during 1970s, and being an innovative adaptation of the traditional OPI, the semi-direct method normally follows the general structure of the OPI and makes an audio-recording of the test takers performance which is later rated by one or more trained assessors (Malone, 2000). Examples of the semi-direct type used in the U.S.A. are the simulated oral proficiency interviews (SOPI) and the Test of Spoken English 2000 (TSE) (Ferguson, 2009). Examples in U.K. include the Test in English for Education Purpose (TEEP) and the Oxford-ARELS Examinations (OLoughlin, 2001). Another mode of delivery is testing by telephone as in the PhonePass test (the test mainly consists of reading sentenc es aloud or repeating sentences), or even video-conferencing (Ferguson, 2009). The Advantages Of The Semi-Direct Test Type First, the semi-direct test is more cost efficient than direct tests, because many candidates can be tested simultaneously in large laboratories and administered by any teacher, language lab technician or aide in a language laboratory where the candidate hears taped questions and has their responses recorded (Malone, 2000). Second, the mode of testing is quite flexible. It provides a practical solution in situations where it is not possible to deliver a direct test (OLoughlin, 2001), and it can be adapted to the desired level of examinee proficiency and to specific examinee age groups, backgrounds, and professions (Malone, 2000). Third, semi-direct testing represents an attempt to standardize the assessment of speaking while retaining the communicative basis of the OPI (Shohamy, 1994). It offers the same quality of interview to all examinees, and all examinees respond to the same questions so as to remove the effect that the human interlocutor will have on the candidate (Malone, 2000). The uniformity of the elicitation procedure greatly increases the reliability of the test. Some empirical studies (Stansfield, 1991) show high correlations (0. 89- 0. 95) between the direct and semi-direct tests, indicating the two formats can measure the same language abilities and the SOPI can be the equivalent and surrogate of the OPI. However, there are also disadvantages. The Disadvantages Of The Semi-Direct Test Type First, the speaking task in semi-direct oral test is less realistic and more artificial than OPI (Clark, 1979; Underhill, 1987). Examinees use artificial language to â€Å"respond to tape-recorded questions situations the examinee is not likely to encounter in a real-life setting† (Clark, 1979:38). They may feel stressful while speaking to a microphone rather than to another person, especially if they are not accustomed to the laboratory setting (OLoughlin, 2001). Second, the communicative strategy and speech discourse elicited in these semi-direct SOPIs is quite different from that found in typical face-face interaction – being more formal, less conversation-like (Shohamy, 1994). Candidates tend to use written language in tape-mediated test, more of a report or narration; while, they focus more on interaction and on delivery of meanings in OPI. Third, there are often technical problems that can result in poor quality recordings or even no recording in the SOPI format (Underhill, 1987). In conclusion, one cannot assume any equivalence between a face-to face test and a semi-direct test (Shohamy, 1994). It may be that they are measuring different things, different constructs, so the mode of test delivery should be adopted on the basis of test purpose, accuracy requirement, practicability, and impartiality (Shohamy, 1994). Stansfield (1991) proposes the OPI is more applicable to the placement test and evaluation test of the curriculum, while SOPI is more appropriate for large-scale test with requirement of high reliability. Marking Of Speaking Test Marking and scoring is a challenge in assessing second language oral proficiency.. Since only a few elements of the speaking skill can be scored objectively, human judgments play major roles in assessment. How to establish the valid, reliable, effective marking criteria scales and high quality scoring instruments have always been central to the performance testing of speaking (Luoma, 2004). It is important to have clear, explicit criteria to describe the performance, as it is important for raters to understand and apply these criteria, making it possible to score them consistently and reliably. For these reasons, rating and rating scales have been a central focus of research in the testing of speaking (Ferguson, 2009). Definition Of Rating Scales A rating scale, also referred to as a â€Å"scoring rubric† or â€Å"proficiency scale† is defined by Davies et al as following (see Fulcher, 2003):  ·consisting of a series of band or levels to which descriptions are attached  ·providing an operational definition of the constructs to be measured in the test  ·requiring training for its effective operation Holistic And Analytic Rating Scales There are different types of rating scales used for scoring speech samples. One of the traditional and commonly used distinctions is between holistic and analytic rating scales. Holistic rating scales also are referred to as global rating. With these scales, the rater attempts to match the speech sample with a particular band whose descriptors specify a range of defining characteristics of speech at that level. A single score is given to each speech sample either impressionistically or by being guided by a rating scale to encapsulate all the features of the sample (Bachman Palmer, 1996). Analytic rating scales: They consist of separate scales for different aspects of speaking ability (e.g. grammar / vocabulary; pronunciation, fluency, interactional management, etc). A score is given for each aspect (or dimension), and the resulting scores may be combined in a variety of ways to produce a composite single overall score. They include detailed guidance to raters, and rich information that they provide on specific strengths and weakness in examinee performance (Fulcher, 2003). Analytic scales are particularly useful for diagnostic purposes and for providing a profile of competence in the different aspects of speaking ability (Ferguson, 2009). The type of scale that is selected for a particular test of speaking will depend upon the purpose of the test Validity And Reliability Of Speaking Test Bachman And Palmers Theories On Test Usefulness The primary purpose of a language test is to provide a measure that can be interpreted as an indicator of an individuals language ability (Bachman, 1990; Bachman and Palmer, 1996). Bachman and Palmer (1996) propose that test usefulness including six test qualities—reliability, construct validity, authenticity, interactiveness, impact (washback) and practicality. Their notion of usefulness can be expressed as in Figure2.3: Usefulness=Reliability + Construct validity + Authenticity + Interactiveness + Impact +Practicality These qualities are the main criteria used to evaluate a test. â€Å"Two of the qualities reliability and validity are critical for tests and are sometimes referred to as essential measurement qualities† (Bachman Palmer, 1996:19), because they are the â€Å"major justification for using test scores as a basis for making inferences or decisions† (ibid). The definitions of types of validity and reliability will be presented in this section. Validity And Reliability Defining Validity The quotation from AERA (American Educational Research Association ) indicates: â€Å"Validity is the most important consideration in test evaluation. The concept refers to the appropriateness, meaningfulness, and usefulness of the specific inferences made from test scores. Test validation is the process of accu ­mulating evidence to support such inferences. A variety of inferences may be made from scores produced by a given test, and there are many ways of accumulating evidence to support any particular inference. Validity, however, is a unitary concept. Although evidence may be accumulated in many ways, validity always refers to the degree to which that evidence supports the inferences that are made from the score. The inferences regarding specific uses of a test are validated, not the test itself.† (AERA et al., 1985: 9) Messick stresses that â€Å"it is important to note that validity is a matter of degree, not all or none (Mess

Marketing Plan for Emirates Airline

e- Book Series Guide to Writing a Killer Marketing Plan Written by: Steven Fisher Confidential  ©2009 Network Solutions, LLC Purpose of this book You are either someone that has been doing marketing as a part of your professional career or you look at as that â€Å"thing you do to promote your business and attract customers to buy†. Regardless of where you are along that spectrum, you have arrived here because you have been charged by the CEO of the startup you work for to write a marketing plan for your business or you need to create one for your own business. You need to not just write just any marketing plan.You need to write a Killer Marketing Plan. One that your boss will say â€Å"awesome, let’s get started† and which will tell all those people who have been looking for a product or service like yours for a long time. This book is written for you. Marketing plans are sexy mistresses that tempt you to include all of the coolest of campaign ideas without th e sanity of budgetary constraints. While marketing is one of the more important functions of a small business, it is one that is limited by the budgets of that business and campaigns must demonstrate a return in order to justify their existence.Since I have written more marketing plans than I care to tell you, I can share with you my knowledge and experience of what has worked almost all the time, some of the time and none of the time. While this is not the single tome on marketing plans, I hope that this helps you balance the unlimited creative ideas with the budget you have to work with and find a mix that is both innovative and results in sales. I invite you to explore as many resources out there, some of which are mentioned at the end of this book. I don’t need to wish you luck.Just get started, get out there and crush it. Confidential  ©2009 Network Solutions, LLC Overview: Section 1: Product and Purpose Part 1 – 5 Section 2: Analysis and Competition Part 6 â₠¬â€œ 10 Section 3: Strategy and Action Part 11 – 12 Section 4: Financials in Plain English Part 13 – 15 Confidential  ©2009 Network Solutions, LLC Section 1: Product and Purpose Part 1: The Art of Marketing Doing marketing planning, which is captured in the marketing plan, is an essential organizational activity, considering the hostile and complex competitive business environment.Our ability and skills to perform profitable sales are affected by hundreds of internal and external factors that interact in a difficult way to evaluate. A marketing manager must understand and build an image upon these variables and their interactions, and must make rational decisions. Here is a great description of Marketing from HowStuffWorks: â€Å"According to the Dictionary of Marketing Terms, marketing is â€Å"the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and org anizational goals. What does that mean to you?It means marketing encompasses everything you have to do in coming up with a needed product or service, making potential customers aware of it, making them want it, and then selling it to them. So then, is sales considered â€Å"marketing†? Is advertising â€Å"marketing†? Often, you’ll hear sales functions referred to as â€Å"marketing,† but really sales is just a part of the larger marketing process, as is advertising. In the olden days (back 30 or 40 years), marketing did consist primarily of sales. Rather than having marketing departments, companies had sales departments with an advertising manager and someone who did market research.Sometimes they added a promotions manager or hired an agency to handle advertising and promotions. Things began changing as some companies grew larger and larger and began offering many product lines that warranted having their own brand managers, market segment managers and many more specialized positions that addressed and mulled over the needs of their particular markets. The need for a marketing department began to be seen as a vital part of business. The marketing department also takes most of the blame if a product (or company) isn’t successful, regardless of whether or not the fault actually lies there. Logically, your CMO or VP of Marketing would be in charge of this effort but in many startups you don’t have someone in that position so it is probably you with the ultimate responsibility. So my dear reader, I am here to the rescue to guide you through very important part of executing your overall business plan. Planning your company’s marketing program is a process much like the one you go through in writing the business plan. You go through phases of: †¢ What are you going to do with the plan? †¢ What are the company’s skills, strengths and weaknesses? Goal setting based on those strengths and weaknesses â € ¢ Setting strategies for achieving your goals †¢ Executing the plan †¢ Putting the numbers together to back up your words But before you dive into the plan, you should know what type of plan you are expected to write. Confidential  ©2009 Network Solutions, LLC Part 2: The Three Types of Marketing Plans Most of the time when you are writing the marketing plan, it is usually something that needs to stand on its own and in other cases it might need to be incorporated into another document like a business plan.So before we dive into the executive summary, it is important to understand that there are three marketing plan types with various content and sizes. Marketing Plan Type #1: The Marketing Plan for the Business Plan In a business plan, the sales and marketing section as part and parcel to the business plan, which is true, but it is not the entire picture. The business plan essentially holds the executive summary and key components, graphics and financials that suppo rt the greater business plan. This means that the data came from somewhere †¢ Page Range: Usually 3-6 Pages Marketing Plan Type #2: The Strategic Marketing PlanHere is a great description of the Strategic version of the Marketing Plan from Sheridan College Institute of Technology and Advanced Learning in Oakville, Canada: At the strategic marketing plan level, marketers are scanning the environment, pondering what is happening and looking for emerging or robust market segments which they could consider as target markets. The outcomes of such plans are clearly identified target markets and the strategies which will meet their needs, as identified in our analysis. Marketing plan objectives are typically on the level of sales, profit, return on investment or, for the larger firm, market share. Page Range: Usually 3-6 Pages Marketing Plan Type #3: The Tactical Marketing Plan Here is another great description of the Strategic version of the Marketing Plan from Sheridan College Insti tute of Technology and Advanced Learning in Oakville, Canada: Tactical plans, in contrast, presume the target market and marketing strategy as a given and don’t look much at the external environment. They deal with issues such as raising awareness or getting more returning customers. The main way to tell at which level you are working is whether your target market is a given or not.If you are scanning the environment, you are seeking new target markets or looking for subtle changes in your existing target markets; you are preparing a Marketing Plan. If however, you start from the premise that you know exactly who your target Confidential  ©2009 Network Solutions, LLC market is, you would then develop a range of tactics to reach them; this is a Tactical Plan. Many people mistakenly operate at the tactical level when they should be at the strategic level. For instance, suppose your product sales were poor, so you came up with a plan to advertise more. The result was an even f aster decline in sales.Why? People found even faster that your product was terrible. Had a strategic marketing plan been developed, we would have determined what consumers want, compared those desires to our product and made the appropriate modifications. †¢ Page Range: Usually 10 – â€Å"As many as people want to read† Pages Sometimes it is better to start big and widdle your way down There are different schools of thought on this one. The first being to write the tactical version with everything and then extract information to create the strategic and narrow further for inclusion in a business plan.The second is to write the strategic one first to focus your thoughts and have one person tighten it up for the business plan and a team expand on it so the tactical issues are worked out. This can be a problem because your financial projections might not be totally accurate and your plan will fail. I would offer taking the tactical plan and mapping out the sections w ith the abstracts so that all the issues are addressed, then write the strategic so there is a plan that others outside of marketing can digest and only when it is approved should it be tuned up and included in a business plan.Now you know so let’s get started Now that you understand what a marketing plan is, its purpose and the type you should write, let’s get to the heart of the matter. In Part 3 we will discuss the Killer Executive Summary. Part 3: Framing a Successful Marketing Plan In Part 2 we talked about selecting the right type of plan to fit your needs. Now that you have decided that, let’s get into the general structure of a marketing plan. Please note that this is a proposed outline and depending on your emphasis, this structure can and might change. Marketing Plan Outline Section I – Cover Page Section II – Table of ContentSection III – Situational Analysis (Market, Competitive Environment, Technological Environment, Socio-Polit ical) Section IV – Problems and Opportunities Section V – Objectives Section VI – Action Plan Section IX – Financial Data Confidential  ©2009 Network Solutions, LLC So there you go, a basic outline. I know that putting all this together might seem daunting, especially if you are not a marketing and sales person. Fear not, that is what we are here for and from here on out we will break down each section and subsection in detail so you understand what information is required and how to get it.Part 4: Killer Marketing Plan Summary Everyone who begins the journey of writing a marketing plan usually looks at the Executive Summary section early on in the process. A Marketing Plan Summary is usually 1-3 pages long and the goal is to summarize the entire marketing and possibly sales plan into something digestible by new readers and those in other departments who want to get to the bottom line. Don’t despair, the hard work you put into the marketing plan will be useful to some people, not all of them.Each reader is trying to get something different and the executive summary is the best way to give them the big picture so they understand their part in this area of the operation. When is the best time to write the Marketing Plan Summary? There are many schools of thought on when to write the Marketing Plan Summary, either write it first, write it along the way or write it at the end. I take a little different of an approach in that you should try and write it at the beginning and then re write it again at the end.There are two reasons for this: Reason #1 – Writing it at the beginning can focus you and force you to answer questions in the shortest way possible. This is an interesting and valuable exercise for many because they work to answer many of the hard questions and because it forces you to get in the habit of getting to the point. Reason #2 – Writing it at the end is great because you will revisit what you wrote an d either be on track with only a little tuning required or most likely will roll your eyes and see how far off you were and really have a much easier time tuning the summary up to make it truly a killer Executive Summary.What are the overall components of the Marketing Plan Summary? Generally, you need to write 2-3 sentences MAX on each of the following sections: Company description of what you are doing Confidential  ©2009 Network Solutions, LLC Problem and Opportunity Your products and/or services that address the problem and take advantage of the opportunity Money You Need and What it will be used for (this is if the summary is targeted at investors) The market and your customer The Competition and Your Differentiators (how you will kick the competitor’s butt) Your current Marketing and Sales (if you have them)Your Management Team (If they are an A-Grade team this might be further up) Current Business Operations (if you are an existing business)3-5 Year financial project ions and plans (How much have you made, how much will you make and if you are looking for investment, how you will use it) – This includes a small table of numbers in addition to the 2-3 sentences. What makes a Killer Executive Summary that stands out from other businesses? There are many well written Executive Summaries out there that have never been funded or missed the market or for whatever reason never got off the ground.But what makes an Executive Summary â€Å"Killer†? Here are six key things to make it â€Å"killer†: 1. BE focused and clearly state what you do -Too many businesses, especially startups try and â€Å"boil the ocean† making you look like you are all over the place and will not be able to execute successfully. 2. BE a business that solves a problem and not a solution in search of one – You might have an awesome â€Å"widget† but if people don’t need it or companies can live without it, why are you starting a busin ess? 3. BE strong and positive with your language – This is not a time to be passive.From potential investors looking to give you money to those people willing to join the team, people must know that you †are† going to execute, not â€Å"may† or â€Å"might† do something. 4. DON’T cut and paste – Read the sections and extract the best and write a new concise section 5. DON’T use Jargon – Most industries have acronyms or buzz words that are neat and catchy. One or two that make a point are fine but if your engineer is writing the business plan, don’t get all geeky on the solution. Remember, the Executive Summary is about telling someone the time, not how the watch works.The business plan will have plenty of places for that type of content. 6. Write an â€Å"Executive Summary† of the Executive Summary – Most people have very short attention spans and once you are done the Executive Summary you should try and compose a 2-3 sentence summary at the top that gets all the critical elements in so that people really want to read the rest and get excited about reading the entire business plan. Confidential  ©2009 Network Solutions, LLC Part 5: Understanding Your Market The Situational Analysis is designed to take a snapshot of where things stand at the time the plan is presented.The Situational Analysis is probably one of the hardest sections you will write because you are essentially laying out how the product will function in various environments and how it will be perceived in the marketplace. In many marketing plans, the first section could be the product analysis. If you already have existing products/services you should start with this so that you provide a â€Å"lay of the land† for readers not familiar with where you are at with your current product(s) and/or service(s).That section covers the product attributes, current pricing, current distribution and services offered. This should be about a page or two in length. For the purposes of this Marketing Plan series we will assume you are a new company and dive straight into defining the market. That is why the first part of the situational analysis is called the â€Å"Market Analysis†. This subsection of the situation analysis section should be about two to four pages in length and provides actionable information on selling to target buyers and stimulating purchases or usage by the ultimate end users.Key questions answered in this subsection include: description of target buyers or end users in demographic, psychographic, and lifestyle terms target buyer/end user wants, needs, attitudes, and perceptions of category products and services where target buyers/end users are located and how to reach them, which segments of the total market or category are growing or declining and why. You will need to tell the story in a way that makes sense to you and your readers so the following outline should be arranged as you see fit: Target Market Approach Start with a description of your total potential market (your potential customers).Present a general strategy that is used to reach targeted customers that might include a mass market or segmentation approach. Describe the needs/benefits sought by market, the product usage, the positioning and what people’s attitudes are regarding the product you are selling and the product category in general. Target Market Profile(s) Create and describe the demographic/psychographic profile(s) of the market including elements such as gender, income, age, occupation, education, family life cycle, geographic region, lifestyle, attitudes, purchasing characteristics, etc.Confidential  ©2009 Network Solutions, LLC Target Market Motivations Since you know the profile(s) within your target market you need to explain what motivates them to buy your products/services. Begin by describing how your product/service satisfies the needs of this market. Fo llow up with describing the particular customers that you will target. Expand into the size of your total potential market (number of potential customers), and then drill down into your target market so that you can make the motivational case you set out to in the first place.Target Market Purchasing Strategy Ok, great. You have the market explained, the target profiles done, the market motivations are worked out, now how are people gonna buy your amazingly cool new widget? Well, you need to detail that out in your purchasing strategy. First, you will need to explain how the target market makes their purchases. Then explain what is involved in the decision-making process and the timeline for the purchase (is it an impulse buy or something that takes an extended period of time).Finally you will cover who influences and then makes the purchase. Target Market Growth Strategy To wrap things up you will need to provide market size estimates but keep in mind these are estimates for the ma rket, not for a specific product. You will need to provide size estimates for the potential market that include the largest possible market that would buy. Then you need to narrow your focus and provide estimates of size for the current target market (how many actually purchased this kind of product) and provide estimates for these growth rates.Lastly, all of this needs to be projected out for at least through the timeframe for the plan (e. g. , 1 year) but most likely longer (e. g. , 3-5 year projections). A Final Thought on Numbers Throughout all of these explanations it is critical that you need to support estimates with factual data. You can have the best laid plans with awesome projections but if you have nothing to back up your story and make your case you are just fooling yourself that your strategy is the right one. Confidential  ©2009 Network Solutions, LLC Section 2: Analysis and CompetitionPart 6: Understanding and Beating the Competition This is the second part of the situational analysis which deals with the competition and appropriately called â€Å"Competitor Analysis†. I mentioned in Part 5 that the Situational Analysis is probably one of the hardest sections you will write and this section validates that statement. You believe your product/service is the best on the market but not just to validate yourself but to validate the strengths, weaknesses, opportunities and threats along with trends of those competitors.Here is how the Competitor Analysis sub-sections break down: Competitive Landscape First you need to identify major competitors: name, location, and market share. The best thing to do is create a table that allows clear comparisons of your product/service with that of your major competitors (brand name, quality, image, price, etc. ). Then you need to perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis (coming in a future post) and compare your firm with that of your major competitors.Include factors such as company reputation, size, distribution channels, location, financial standing, target market perception and if relevant, research and development capabilities. After your SWOT analysis is complete, use that as sounding board to honestly evaluate your chances as the new competition and how successfully you would be able to enter this market. Include your thoughts and observations on what you have learned from watching the competition and you can learn from the good and bad parts of their business models to increase your chances of success. Competitive OpportunitiesWhile in the competitive landscape doing much of the SWOT analysis, you should include a section that really expands on the opportunities you uncover because those usually end up being the foundation for things like your marketing messaging and web site content. It is designed to really expose the differentiators that make you stand out in a competitive marketplace. Competitive Trends This section is where you should discu ss the trends of your competitors. This includes whether your competitors’ sales increasing, decreasing or steady. Answering those questions clue into the growth or decline of competitors from a shifting market shareConfidential  ©2009 Network Solutions, LLC perspective and also from a more macro market size perspective. This should also help you identify any future competitive threats that your team should be made aware of but not focused on, yet. Describe direct competitors in terms of: †¢ †¢ †¢ †¢ †¢ †¢ Target markets served Product attributes Pricing Promotion Distribution including the distributor network Services offered Discuss competitor’s strengths and weaknesses: †¢ May need to consider much more than just marketing issues such as: financial standing target market perception R & D capabilities Part 7: Technology, Economy and SociopoliticalAnalysis As we continue our Marketing Plan Series and keep working our way through th e Situational Analysis we make a pit stop to talk about the macro-level environments that impact your marketing and your competition. This part of the Situational Analysis is usually called â€Å"Environmental Problems and Opportunities† and is about 1-2 pages in length. This could easily turn into a diatribe about politics and economics so what you need to focus on in this sub-section is how technology, the economy and the socio-political environment affect the marketing of your products/services. The Technological EnvironmentWhen you discuss the technological environment think about how you create/leverage/affect creating new ways of satisfying needs (i. e. using technology to enhance the demand for existing products). Innovation can create or wipe out industries and businesses in less than a year. One example is the popularity and convenience of DVD players all but eliminated the sale of VCRs and seriously depressed the manufacture and sale of video tapes. This is especial ly important for you if your product is technology based. The Economic Environment Regardless of the current state of the economy, there will be good times and not so good times.You need to describe how your company will survive and grow in this most challenging of economies. Look at the bright side, if you can find the opportunities and sell successfully in this market you could position yourself as almost recession-proof in the long run. Confidential  ©2009 Network Solutions, LLC The Socio-Political Environment These are governmental policies and regulations that affect the market. It is also the economic environment around your company; which is the business cycle, inflation rate, interest rates, and other macroeconomic issues.For example, here in America there is a sweeping trend to dress more casually, with function and comfort driving new clothing and shoe trends. People are cooking less and are more concerned about nutrition and fat in their diets. And today, American busin ess people are less willing to sacrifice family life for business careers. These types of factors can impact the marketability of your product or service. Part 8: Financial Summaries that Sing You can’t have a product discussion and not include financial for the number geeks in all of us.We will dive into our â€Å"Marketing Plan Financials in Plan English† toward the end of the series but many will need to connect some financial dots in the situational analysis at a high level leaving the detailed stuff (budgeting, break even analysis and cash flow analysis) for the â€Å"back of the book†. This section should be about 2-4 pages in length and kids, keep it pretty for the rest of us. Now while you will need to write some short paragraphs to explain your information, tables and graphs are your friend here. The Financial Analysis section is separated into two general areas – sales and profitability Part 1 – Sales AnalysisIn this section you need to f ocus on the current sales that your industry and you business are doing across segments, product categories and various distribution channels. Let’s break it down like this: Overall Industry and Market Share †¢ Sales for the Entire Market †¢ Sales for Your Company †¢ Sales for Your Competitors Sales By Segments and/or Product Categories †¢ Sales by segments and/or product categories †¢ Sales by company product(s) †¢ Sales at this level compared to competition Sales By Distribution Channel †¢ Sales for each channel †¢ Sales for company product(s) by channel †¢ Sales for Your Competitors by hannel Sales By Geography †¢ Sales for Each Region †¢ Sales for company product(s) by region †¢ Sales for Your Competitors by region Confidential  ©2009 Network Solutions, LLC Part 2 – Profitability Analysis Since we focused on sales which is really revenues, we need to splice this up and see what is actually profitable. Ju st because you can make money from it does not mean you make a profit. You will need to look across the revenues and include the marketing related expenses. Let’s break it down like this: †¢ †¢ Revenue Breakdown o Use the sales numbers from above but identify realized revenues not just projectionsMarketing Expense Breakdown o Direct Marketing Expenses – These are the expenses that are tied to the product(s) and must be identified in that way o Indirect or Proportional Marketing Expenses – These are the general administrative and broad marketing expenses that may be assigned to a product based on some criteria like percentage of sales or a pre-determined distribution amount. Lastly, remember that this is the â€Å"30,000 foot view† †¢ Since this part of the situational analysis, you are using this sub-section to make your point and support your overall analysis. †¢ Stay high level †¢More detailed financial stuff comes later and in the marketing plan and we will do explain it in plain English later in this book. Part 9: The SWOT Analysis Dance Concluding our dive into the sub-sections of the situational analysis, we wrap up with the all important SWOT analysis. It is a â€Å"dance† of sorts because you have to dance around the fact that in some ways your competitors might have over you but it is better that you learn this now and how to work around it or market against it that will help you in the long run. The term SWOT analysis stands for â€Å"Strengths, Weaknesses, Opportunities and Threats†.Start with posing these sessions to your brainstorming team: †¢ Are your competitors becoming stronger? †¢ Are there emerging trends that amplify one of your weaknesses? †¢ Do you see other external threats to your company’s success? Internally, do you have financial, development, or other problems? Confidential  ©2009 Network Solutions, LLC Let’s break each part down and th en wrap up with some the advantages this section can offer you and your team: Strengths: Here is where you must capture the positive aspects internal to your business that add value or offer you a competitive advantage.This is an opportunity to remind yourself of the value existing within your business. Think about what your company does well. You should address the strengths within your business that add value to your product or your marketing efforts. You should also describe your positive tangible and intangible attributes. Weaknesses: These are factors that detract from your ability to have a competitive edge. It includes the negative aspects internal to your business that distracting customers from seeing the value you offer or place you at a competitive disadvantage. These are areas you need to enhance in order to compete with your best competitor.The more accurately you identify your weaknesses, the more valuable the SWOT Analysis is to your readers. Some questions to help yo u get started are: What do your customers complain about? What are the unmet needs of your sales force? We continue breaking each part down†¦. Opportunities: Traditionally, a SWOT looks only at the external environment for opportunities. I suggest you look externally for areas your competitors are not fully covering, then go a step further and think how to match these to your internal strengths. Remember, these are opportunities external to your business.If you have identified â€Å"opportunities† that are internal to the organization and within your control, you will want to classify them as â€Å"strengths†. Try to uncover areas where your strengths are not being fully utilized. Are there emerging trends that fit with your company’s strengths? Is there a product/service area that others have not yet covered? Threats: What situations might threaten your marketing efforts? You have to ask this hard question. Get your worst fears on the table. A threat is a challenge created by an unfavorable trend or development that may lead to deteriorating revenues or profits.As with opportunities, threats in a traditional SWOT analysis are considered an external force. By looking both inside and outside of your company for things that could damage your business, however, you may be better able to see the big picture. Competition — existing or potential — is always a threat. Other threats may include intolerable price increases by suppliers, government regulation, economic downturns, devastating media or press coverage, a shift in consumer behavior that reduces your sales, or the introduction of a â€Å"leap-frog† technology that may make your products, equipment, or services obsolete.Confidential  ©2009 Network Solutions, LLC Advantages of a SWOT Analysis – Uncovering Opportunities This is where you look externally for areas your competitors are not fully covering, then go a step further and think how to match these t o your internal strengths. Try to uncover areas where your strengths are not being fully utilized. Are there emerging trends that fit with your company’s strengths? Is there a product/service area that others have not yet covered? Once you have uncovered these opportunities take each one and discuss how you will market them.Will it be a mixed marketing campaign? A targeted sales effort? What resources will you need (e. g. new collateral, selling guides, web site content, e-mail marketing)? Advantages of a SWOT Analysis – Address and Overcome Problems Problems are not necessarily a bad thing. They are just issues that need to be overcome. It is better to get out front of problems that may exist than have them rear their ugly head when you are selling or raising money. Problems could be strong competitors, your product lacking critical features that you are not able to roll out yet or a long sales cycle.You should list each problem and discuss an approach to overcome the m in a sales situation and with specific marketing messages that counter what a customer might be thinking. Part 10: Mapping Out Your Marketing Objectives OK. You are half done the marketing plan and while you might scream â€Å"only half! † at the top of your lungs, you have suffered through the tough part – the analysis. You have spent time building the case that your products/services are competitive, viable and profitable. Now that you have proved that point you have to demonstrate how you are gonna actually do it.The first part of telling this second half is setting out the overall objectives in the marketing plan. Now let’s breakdown the Marketing Objectives section. We have put together this great breakdown and outline of how you might want to structure the objectives section. Please note, some of this outline may or may not apply to your business so use this as a suggestion and not a list of requirements. Target market objectives †¢ Market Share â⠂¬â€œ total, by segments and by channel †¢ Customers – total, by number/percentage new, by number/percentage retainedConfidential  ©2009 Network Solutions, LLC Channel Objectives †¢ Dealers – total, by number/percentage new, by number/percentage retained †¢ Order Processing and Delivery – on-time rate, shrinkage rate, correct order rate Promotional Objectives †¢ Level of brand/company awareness †¢ Traffic building (e. g. store traffic, web site traffic) †¢ Product Trials (e. g. sales promotions, product demonstrations) †¢ Sales Force (e. g. cycle time, cost per call, closing rate, customer visits, etc. Continuing our breakdown and outline of how you might want to structure the objectives section.Please note, some of this outline may or may not apply to your business so use this as a suggestion and not a list of requirements. Market Research Objectives †¢ Studies Initiated †¢ Studies Completed R&D Objectives †¢ Product Development Other Objectives †¢ Partnerships Developed †¢ Rate of Purchases, size/volume of purchases †¢ Purchases Advice on Setting Your Objectives Remember these are objectives that you expect to meet so keep in mind that these should be achievable. I have used the SMART approach to setting objectives and that stands for Specific, Measurable, Achievable, Realistic and Time-based.Section 3: Strategy and Action Part 11: Setting Your Marketing Strategy Once you have completed writing your Marketing Objectives, as discussed previously in Mapping Out Your Objectives, you need to write your marketing strategy. The marketing strategy section of your plan outlines your game plan to achieve your marketing objectives. There is no other way to say it but this section which is in the center, is essentially the heart of the marketing plan. Confidential  ©2009 Network Solutions, LLC The marketing strategy section should then include information that revolves around the â€Å"4Ps of Marketing†.Don’t know what they are? Let’s do a quick refresher: The â€Å"4Ps of Marketing† are a few decades old but are the most basic and classic way of slicing up your marketing strategy. They are broken down as follows: †¢ Product – your product(s) and services †¢ Price – what you will charge customers for products and services †¢ Promotion – how you will promote or create awareness of your product in the marketplace †¢ Place (distribution) – how you will bring your product(s) together with your customers. Product Describe in detail your products or services in terms of the features and benefits they offer customers.Describe what you need to have or do to provide your product or service (how it’s produced). Pricing List the price of your products and describe your pricing strategy. List price ranges for product lines. For example, if your product is a line of cosmetics, include info rmation in this strategy section about your lipsticks â€Å"ranging in price from $5. 00 to $15. 00 per item† rather than a detailed product price list. (You should, however, consider including a detailed price list in the Supporting Documents section. ) Describe any price flexibility or negotiating room, as is common with large purchases such as houses or cars.Outline any discounts you offer for long-term customers, bulk purchases or prompt payment. Also, include the terms of sale, such as â€Å"net due in 30 days,† extended payment plans, and whether you accept credit cards Promotion Plan A promotion plan describes the tools or tactics used to accomplish your marketing objectives. In your Action Programs section, you will describe the steps that need to be taken in detail, when they should be done, who will do them, and so on. If your marketing objective is to: Create awareness of baby care products among mothers of newborns.Increase sales of potato chips to teens. T hen tools or tactics might be: †¢ Advertise in baby care or motherhood magazines. †¢ Distribute product samples to obstetricians. †¢ Offer free baby care seminars to expectant mothers. †¢ Distribute free samples or discount coupons at high school football games. †¢ Sponsor an event attended by teens. Confidential  ©2009 Network Solutions, LLC Placement (Sales and Distribution) In this section, describe how your products and customers â€Å"meet† or come together through sales and distribution. Describe your sales philosophies and methods.Do you employ an aggressive sales method for a large number of quick sales, or a relaxed method where the emphasis is on having customers feel comfortable to come back another time even if they don’t buy now? Do you use contract sales people or employees? Explain your approach to sales issues. Describe your distribution system. (Where will your product be placed so customers have access to it? ) A few points about distribution to address in your marketing plan are: Is the exchange of the product made in a store? Through the mail? Through a direct sales representative?What are your production and inventory capacities? (How quickly can you make products and how many can you store? ) Are there cyclical fluctuations or seasonal demands for your products? For example, if you produce Christmas decorations, how will you manage peak production and sales periods as well as slow periods? Do you sell to individuals or to re-sellers? Your company may use more than one method. For example, you may sell directly to customers who place large orders but also sell to customers who buy small quantities of your product through retail outlets. Part 12: Action PlansThe Action Plan covers the â€Å"Who, Where and How Much† of your plan. You should look at this section as the â€Å"to do list with budget numbers† and separate it into sub-sections or â€Å"miniplans† that are involved in y our marketing efforts. They can include but are not limited to the following: Publicity Marketing Plan – How do you pitch? I am not talking fastballs, but rather using the media to spread the word about your business. You could also call this mini-plan your media plan and it includes the costs and tasks involved in pitching stories to the press and writing press releases on a consistent basis.Customer Marketing Plan – No small business can survive without customers and smart business know that it is FAR cheaper to keep the customers you have than always working to replace them with new ones. This mini-plan talks about what activities you will undertake with your current customers and the types of targeted offers you will be making to retain them. Confidential  ©2009 Network Solutions, LLC Advertising Plan – Now we all know that most traditional advertising is hit or miss and it is hard to track results.However, there are more and more promotional programs that provide you with a way to measure results that you can create a mini-plan of where you are going to advertise and how much of it you will be doing. Internet Marketing Plan – Every one these days has a web site. If you don’t and you are small business, then that is another matter. If you are a small business that is actively engaged on the web to promote your products or services then you need to include a separate mini-plan on Internet marketing that could include search engine optimization, pay-per-click advertising and any other online campaigns.Promotional Event Plan – Related to advertising and Internet marketing the promotional event plan includes different promotional activities such as, having sales, sponsoring contests, awards, or events. Referral Marketing Plan – All small businesses need referral business. In fact, it is how many survive and even thrive. Here is where you need to identify specific programs that will add incentive for those that value your work enough to tell others about you. Budgeting AKA â€Å"The Bottom Line†We all wish we could do awesome and cool marketing campaigns but we are quickly brought back to reality when the limitations of our budgets are staring us in the face. Small Business Notes provides some great advice on putting together your budget. Estimate the cost of the marketing activities you’ve described in the marketing plan so you will have a budget to keep everyone on track over the course of the year. Typical marketing expense categories are marketing communications, market research, promotions, advertising, events and public relations.Because marketing needs and costs vary widely, there are no simple rules for determining what your marketing budget should be. A popular method with small business owners is to allocate a small percentage of gross sales for the most recent year. This usually amounts to about two percent for an existing business. However, if you are planning on launching a new product or business, you may want to increase your marketing budget figure, to as much as 10 percent of your expected gross sales. Another method used by small business owners is to analyze and estimate the competition’s budget and either match or exceed it.Confidential  ©2009 Network Solutions, LLC Section 3: Strategy and Action Part 13: Sales Projections in Plain English What Are Components of Sales Projections? Projection of sales is an important part of the marketing plan. Part of the sales projection work is planning for a better performance in the future and correcting past performance with which you are not satisfied. You do this by finding out what profit contribution each sales representative makes. One goal of measuring a sales representative’s performance is improvement assistance. This is done in the marketing personnel section of the marketing plan.Cost of Goods per Unit Worksheet This is the first preliminary worksheet you must complete . The reason you have to start here is because these are the basic costs of raw materials, production labor and other costs that, once added up, give you the cost of goods per unit number you will need to get the â€Å"Estimated Sales Table† completed. Estimated Sales Table Worksheet This is a preliminary worksheet that helps you figure out what the total sales and cost of goods sold are for each product year by year. You need to include the units, or number of things, sold by each product line. Take each number times the elling price of each product and you will get the actual sales for each product. Tally that number up and create a column called % of sales and divide each number by the total and you can see how much each product brings in as a share of the entire sales projection. You should already have the â€Å"Cost of Goods Sold† per unit from the previous section. Put that number in after the â€Å"% of sales† and then multiply that number times the unit s and put the result into a new column called â€Å"Cost of Goods sold total†. Once that is done, do the same thing we did with â€Å"% of sales† and create a â€Å"% of Cost of Goods Sold†.Confidential  ©2009 Network Solutions, LLC Sales Projections Worksheet This is where all the hard work comes into focus and you break things down by months that give you the total amount you put together in the estimated sales table. You will use a concept called â€Å"weighing† which is basically splitting 100% across 12 months as to when you think that total amount will be met each month. Think of busy periods where sales are way up and slow periods where it is way down. A good example is retail with busy holiday periods and slow winters and then busy back to school sales. You will also include he cost of goods sold numbers and percentages that breakdown according to the â€Å"weighing† you set up for each month overall. These projections are also used on th e business plan financials as revenue projections in the way they organize the business. You should also be aware how important this is not only from running your marketing division but when investors want to dive a layer deeper in the business plan and your numbers are what will back things up. It will also be used in other business plan financials but we will get into that in the next two sections. Part 14: The Break Even Analysis in Plain EnglishWe continue talking plain English with you in this fun and crazy world of marketing plan financials and move on to the all important Breakeven Analysis. The Breakeven Analysis is especially useful when you’re developing a pricing strategy, either as part of a marketing plan or a business plan. The Breakeven Analysis is actually pretty straightforward and asks one question – when do you break even and turn a profit? Simple†¦. Not quite†¦ but I will explain in plain English. You mean there is a formula for this thing ? Yes, you knew I would eventually get to a formula, but fear not math haters, it is straightforward.Fixed Costs divided by (Revenue per unit – Variable costs per unit) Confidential  ©2009 Network Solutions, LLC Fixed Costs – Fixed costs are costs that must be paid whether or not any units are produced. Things like rent and equipment fall into this category. These costs are fixed only over a specified period of time or range of production. Variable Costs – Variable costs are the things that make it fun and go up and down based on your production levels. Things like materials, labor, overhead are in this category. Let’s give you a real example:If your total fixed costs were $500,000, the price tag of your product (unit) was $25, and your variable Costs were $15, the equation would look like this: 500,000/25-15 = 500,000/10 = 50,000 You would need to sell 50,000 units to break even. Everything over that is profit and you dancing to the bank. Still, this n ot a perfect equation: Bplans. com points out that this equation, while important, can be misread or misinterpreted. Here are some key things they point out: †¢ It is frequently mistaken for the payback period, the time it takes to recover an investment. There are variations on break even that make some people think we have it wrong.The one we do use is the most common, the most universally accepted, but not the only one possible. †¢ It depends on the concept of fixed costs, a hard idea to swallow. Technically, a break-even analysis defines fixed costs as those costs that would continue even if you went broke. Instead, you may want to use your regular running fixed costs, including payroll and normal expenses. This will give you a better insight on financial realities. We call that â€Å"burn rate† these post-Internet days. †¢ It depends on averaging your per-unit variable cost and per-unit revenue over the whole business.However, whether we like it or not, thi s equation is a cornerstone of financial analysis. You may choose to leave it out, but really, a business or marketing plan would not be complete without it. Part 15: Sales Cash Flow Statements in Plain English As important as when you will break even, you must be able to show how, on a monthly basis, you will manage the cash flow to support the business and not sink it from an overly ambitious strategy and action plan. Confidential  ©2009 Network Solutions, LLC Similar to the Cash Flow Statement in a Business PlanThe cash flow statement reports the cash generated and used during the time interval specified in its heading. The period of time that the statement covers is chosen by the company. For example, the heading may state â€Å"For the Three Months Ended December 31, 2007? or â€Å"The Fiscal Year Ended September 30, 2008?. For many, looking at a cash flow statement it looks a bit weird but it provides a different, yet critically important view of the business. For the mark eting plan, you need to create a subset of this that eventually rolls up into the business plan to support it and give detailed projections.Three Sections of a Marketing Plan Case Flow Statement For the purpose of the marketing plan cash flow statement that flows up and reports to the master cash flow statement, there are three sections that must be created – Operating Activities, Investing Activities, Financing Activities. We explain these on the next few pages. SECTION 1: Operating Activities This section converts the items reported on the income statement from the accrual (you book the sale but you might not have the money yet) basis of accounting and includes the following: †¢ †¢ †¢ †¢ †¢ †¢ Cash receipts from sales or for the performance of servicesPayroll and other payments to employees Payments to suppliers and contractors Rent payments Payments for utilities Tax payments SECTION 2: Investing Activities Investing activities include capital expenditures – disbursements that are not charged to expense but rather are capitalized as assets on the balance sheet. Investing activities also include investments (other than cash equivalents as indicated below) that are not part of your normal line of business. These cash flows could include: †¢ †¢ †¢ †¢ Purchases of property, plant and equipment Proceeds from the sale of property, plant and equipmentPurchases of stock or other securities (other than cash equivalents) Proceeds from the sale or redemption of investments Confidential  ©2009 Network Solutions, LLC SECTION 3: Financing Activities Financing activities include cash flows relating to the business’s debt or equity financing: †¢ †¢ †¢ †¢ Proceeds from loans, notes, and other debt instruments Installment payments on loans or other repayment of debts Cash received from the issuance of stock or equity in the business Dividend payments, purchases of treasury stock, or returns of capital IMPORTANT: Don’t Forget to Include an Expense BudgetBecause you will be estimating cash inflows for various product lines you must account for the expenses that are incurred related to them. This must include enough detail to track expenses month by month and follow up on plan-vs. -actual analysis. That’s a Wrap! Well, this concludes our 15-part series on writing a marketing plan. We hope you have learned new things and relearned things forgotten long ago. The following pages include extra resource for this Guide to Writing a Killer Marketing. We hope you have enjoyed this series and visit GrowSmartBusiness. com for more great content to help you grow your business.Additional Resources Small Business Administration http://www. sba. gov SCORE http://score. org American Marketing Association http://www. marketingpower. com/ Microsoft Small Business Center http://www. microsoft. com/smallbu siness/hub. mspx Microsoft Startup Center http://www. microsoft . com/smallbusiness/startu p-toolkit/default. aspx How to do a Competitive Analysis http://www. ehow. com/how_5220467_writecompetitive-analysis. html Writing a Marketing Plan http://www. knowthis. com/principles-ofmarketing-tutorials/how-to-write-a-marketingplan/ http://www. entrepreneur. com/marketing/marke ingbasics/marketingplan/article43018. html http://www. marketingforsuccess. com/MFSmarketingplan. html Confidential  ©2009 Network Solutions, LLC About the Author Steve Fisher Blogs: http://stevefisher. me http://rulesforbusiness. com http://shootyourshow. com Connect with him on Facebook, Twitter, LinkedIn, Plaxo or Flickr. Steve has been actively writing about small business and innovation since the late 90s on how small business could leverage the Web and stellar customer experiences to innovate their business and compete with the largest of competitors. He was among the arly thought leaders on the intersection of user experience, customer service and innovation. Steve curr ently is Managing Principal of AppSolve. In its 10th year, Appsolve specializes in user experience design, enterprise web development and online community management. Through AppSolve, he works with Network Solutions to manage its online small business community. Prior to that he was founder and CEO of Slipstream Air, a software provider to the private air travel industry. It was sold in 2008 to JIT Airline Resources, which rebranded as Slipstream Aviation Software. Steve has also held key leadership ositions at Global Network Solutions, OnSite Technologies, IKON, USConnect, Ryland and Wells Fargo. He has published several e-books on Small Business Management, User Experience, Online Marketing and Innovation. Currently, he is working on his first book, â€Å"101 Rules for Entrepreneurs† slated for a Spring 2010 release. He holds a Bachelor of Science in Business from University of Baltimore and on a personal note he is a great airplane pilot, a horribly slow 5K runner, a fair ly talented musician and a budding concert photographer. He currently resides in Columbia, MD, USA. Confidential  ©2009 Network Solutions, LLC