Marketing Plan Final

Marketing Planning An outline of a design to accomplish a specific objective: – To create value for customers at a profit, or in the new concept of marketing, – To create a mutually be

Marketing Plan

Authors:

Prof Keegan, Prof Malcolm

 Marketing planning

 Tactical and Strategic Marketing Plans

 Marketing planning process

Marketing Planning

 An outline of a design to accomplish a specific objective:

– To create value for customers at a profit, or in

the new concept of marketing,

– To create a mutually beneficial relationship

Marketing Planning

Market Needs Wants

Expected competitors Design for

creating value

Marketing Planning

Process

1. Performing a situation analysis

2. Formulating basic assumptions

3. Setting objectives for what is being sold and to whom

4. Deciding how the objectives are to be achieved

5. Scheduling and costing out the actions necessary for implementation

a Market Plan

 Management provides little guidance as to

how the process should be managed.

– To Compromise between what is desirable and

Essential of Marketing

Planning

 We need marketing planning when hostiles increased and environment is complex

Application of

Marketing Plan

1 To help identify sources of competitive advantage

2 To force an organized approach

3 To develop specificity

4 To ensure consistent relationships

5 To inform everyone in the organization about

priorities

6 To obtain resources needed to implement plans

7 To engage organizational support at all levels, form

the bottom to the top of the organization

8 To set objectives and strategies

To gain commitment towards goals

The Elements of Strategy

1 Stepping back form the

Strategic Plan

Definition:

 A clear and simple summary of

– Key market trends, – Key target segments, – The value required by each segment, – How the company intends to create value,

– With a clear prioritization of marketing

objectives and strategies, together with

financial consequences

Biggest Danger for Organizations

Most Managers prefer to sell the products they find easiest to sell to customers who offer the least line of resistance

 The logic that integrates the Perspectives of

functional departments and operating units and points them all in the same direction.

Strategy Statement

 The strategy statement for a business unit

is composed of the following three

elements:

1 A business definition that specifies the area in which the business will compete.

2 A strategic thrust that describes where

competitive advantage is to be gained.

3 Supportive functional strategies

Marketing Strategy

Definition:

 It is a statement of how a brand or product line will achieve its objectives

 It Provides decisions and direction regarding variables such as:

– Segmentation of the market, – Identification of the target market,

– Positioning, – Marketing Mix elements and expenditures.

Tactically Oriented Company

Strategic Oriented Company

Rules of

Marketing Planning

1. Develop the strategic marketing plan

• Scanning the external environment

• Identifying early on the effect this may have

on the company

2. A strategic plan should cover a three-year period

• Never write the one-year plan first and

extrapolate from it.

6 Assumption of key determinants

7 Overall marketing objectives and strategies

8 Expected results

9 Alternatives (contingency plan)

Budget

Stages of Marketing Plan

1 Mission

2 Corporate objectives

3 Marketing audit

4 SWOT analysis

5 Assumptions

6 Marketing objective and strategies

7 Estimate expected result

8 Identity alternative plans and mixes

9 Budget

Critical Factors

 Delegation

– When companies delegate marketing planning to

planner, the plan invariably fails, because planning for line management cannot be

delegated to a third party

 Commitment

– Without it, those charged with introducing the

planning found that there was great resistance

to planning on the part of local managers.

Marketing Audit I

“Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler

Marketing Audit II

Goal:

To see how well the firm is applying the

marketing concepts

information and procedures

Marketing Audit III

Need for an audit does not manifest itself until things start to go wrong for a company in the form:

 Declining sales

 Falling margins

 Lost market share

 Underutilized production capacity

Marketing Audit IV

-By independent experts -Starts with an examination of information on the general economy and then moves on to the outlook for the health and growth of the markets

served by the company.

-By members of the marketing organization -To assess the resources of the organization as they relate to the environment and the resources

of Competitors

Marketing Audit V

 At least once a year

 Using:

– Normal information, – Control Procedures, – Marketing Research

Marketing Audit VI

 Company Executives and Managers

– Few Consultants have the in-depth knowledge of

market, customers, company culture, and the industry that company line managers have.

 External Consultants

– Every company is at risk of becoming blinded to

reality by the influence of company culture

Kind of variables

for Controlling

 Non Direct Control

These usually take the form of what can be

described as:

– Environment,

– Market, – Competitive variables

 Company has Control

– Operational variables

Auditing Process

1. Identification, measurement, collection, and analysis of all facts and opinions that affect a company’s problem

2. The application of judgment to uncertain areas that remain after the initial analysis

Marketing Audit

Procedure

Step 4:

Plans

Step 5: Corporate Plans

and strategies

 Marketing “

• Technology to be developed (Research and development)

3 Other corporate objectives

• Social Responsibility and corporate

• Stock-market

• Employer image

 This is one of the most critical

steps in the preparation of a marketing plan because it is the

easiest step to do carelessly.

 They should be:

– Critical – and few in Number – Consistent with relevant known

facts

 Industrial overcapacity will increase from

105 percent to 115 percent as new plants

come into operation.

 Price competition will force price levels down

by 10 percent across the board.

 A new product that competes with ours will

be introduced by our major competitor before the end of the second quarter

4 Diversification

2 Market Development

New

Markets

1 Market Penetration

Existing

Markets

Existing Products

3 Product Development

New Products

Three Intensive Growth Strategies:

Ansoff’s Product/Market Expansion Grid

Marketing Objectives and Strategies

Mix Product

Use of Marketing Plan

To determine:

The Marketing Budget

 To justify all marketing expenditures from a zero base each year against the task that you wish to accomplish

Mission Statements

 It is one of the most difficult aspects of

marketing planning to master, largely because it is philosophical and qualitative

Types of Mission

Statements

 Motherhood

It found in annual reports designed to

“stroke” shareholders/Non Practical Use

 The Real Thing Meaningful Statement/impact on the behavior of the executives at all levels.

 Purpose Statement Lower-Level mission statement/Appropriate

on the strategic business unit, departmental

or product group level of the organization.

Examples of

Corporate Mission

MARRIOTT’S Mission Statement:

We are committed to being the best lodging and food service company in the world, by treating employees in ways that create

extraordinary customer service and shareholder value

Last Word

 There is no secret magic or a formula

 It is more of an age-old adage that harder they work, the luckier they get

 It is not necessary to be a mighty corporation to do all this and a company of any size should be able to do so and succeed

A Goal is a dream

with a deadline

Zig Zaglar