Marketing plan

Chapter 8
Marketing Plan
Authors:
Prof. Keegan, Prof. Malcolm


Presenters: M. Azadi
M. Tabatabaei

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Objectives
 Marketing planning
 Tactical and Strategic Marketing Plans
 Marketing planning process
 Marketing audits
 Corporate Planning
 Assumptions
 Marketing Objectives
 Marketing Strategy
 Marketing Program
 Mission statements

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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

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Marketing Planning
Strengths of
Market Needs
organization
Wants
Weakness of
Existing
organization
competitors
Expected
Design for
competitors
creating value

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Marketing Planning
Process
Definition:
 The application of marketing
resources to achieve marketing
objectives.

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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

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Develop
a Market Plan
 Management provides little guidance as to how
the process should be managed.
– To Compromise between what is desirable and what
is practicable

Management must be customized to their
particular organization
–
Size
–
Complexity
– Character and diversity of company operations

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Essential of Marketing
Planning
 We need marketing planning when
hostiles increased and environment is
complex.

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Our Challenge
 We should manage:
Return on
Revenue
Profit
investment
Optimization
Cost

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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
9.
To gain commitment towards goals

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The Elements of Strategy
1.
Stepping back form the
9.
Differentiation
day to day
10.
Insight
2.
Ideas and thought
11.
Vision
3.
Activity/Action
12. Defines the business
4.
Setting Objectives and
goals
we are in
Defines the business
5.
Important decisions and
13. Defines the busi
choices
we are becoming
6.
Significant commitment of
14.
Value
resources
15.
Tradeoffs
7.
Not easily reversible
16. Objectives and goals
8.
Involves choice/tradeoffs
17. Strategy Vs. Tactics

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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.

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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.

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Strategy
Strategy describes:
 The direction a business will pursue and
guides the allocation of resources and effort
 The business we are in and becoming.
And provides:
 The logic that integrates the Perspectives of
functional departments and operating units
and points them all in the same direction.

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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 wil compete.
2.
A strategic thrust that describes where
competitive advantage is to be gained.
3.
Supportive functional strategies.

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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.

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Tactically Oriented
Company
Board
Senior
Management
Middle
Management
Operations

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Strategic Oriented
Company
Board
Senior
Management
Middle
Management
Operations

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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
1.
A strategic plan should cover a three-
year period.
•
Never write the one-year plan first and
extrapolate from it.

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Marketing Planning
Process
A strategic marketing plan should contain the following:
1.
Executive summary
2.
Mission Statement
3.
Financial Summary of revenue, expenses and earnings
4.
Marketing audit
5.
SWOT analysis
6.
Assumption of key determinants
7.
Overall marketing objectives and strategies
8.
Expected results
9.
Alternatives (contingency plan)
10.
Budget

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Stages of Marketing Plan
Mission. 1
Phase one
-Goal
Corporate objectives. 2
Setting
Marketing audit. 3
Phase Two –
Situation Review
SWOT analysis.4
Assumptions. 5
Marketing objective and strategies. 6
Phase
Three-
Estimate expected result. 7
Strategy
Formulation
Identity alternative plans and mixes. 8
Phase Four-
Budget. 9
Measuremen
Resources allocation
t and review
and

First year detailed implementation

program. 10
monitoring

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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.

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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

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Marketing Audit II
Goal:
To see how well the firm is applying the
marketing concepts
1. Examine external and internal
information and procedures
2. Identify problems in the environment

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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

Fal ing margins

Lost market share

Underutilized production capacity

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Marketing Audit IV

External Audit
-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.

Internal Audit
-By members of the marketing organization
-To assess the resources of the organization as
they relate to the environment and the resources
of Competitors

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Marketing Audit V
 At least once a year
 Using:
– Normal information,
– Control Procedures,
– Marketing Research

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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

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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

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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

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Marketing Audit Procedure

Marketing environment audit

Marketing strategy audit

Marketing organization audit

Marketing system audit

Marketing productivity audit

Marketing function audit

Marketing excellence review

Ethical and social responsibility review

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SWOT Analysis
External
Opportunities
Threats
Internal
Strengths
SO
ST
Weakness
WO
WT

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Corporate Planning
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Corporate Managemen
Objective
Plans
Corporate
Financial
t Audit
and
Plans
Objective
Strategy
Setting
Targeted
Marketing
Marketing
Marketing
Issue:
Growth in Distribution Distribution Distribution
corporate
Sales and Manufacturi Manufacturi Manufacturi
objectives
earnings
ng
ng
ng
and
strategies
Financial
Financial
Financial
Marketing
Personnel
Personnel
Personnel
“
…

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Elements of
Corporate Plan
1.
The desire level of profitability
2.
Business boundaries
•
What Kinds of products will be sold to what kinds of
market (Marketing)
•
What Kinds of facilities will be developed (Production and
distribution)
•
The size and character of the labor force (Personnel)
•
Funding (Finance)
•
Technology to be developed (Research and
development)
1.
Other corporate objectives
•
Social Responsibility and corporate
•
Stock-market
•
Employer image

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Assumptions
 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:
– Key,
– Critical
– and few in Number
– Consistent with relevant known
facts
– With defensible assumptions

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Examples:
 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.

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Marketing Objectives and
Strategies
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Existing
New
Products
Products
Existing
1. Market
3. Product
Markets
Penetration
Development
New
2. Market
4. Diversification
Markets
Development

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The Marketing Mix
Marketing
Mix
Product
Place
Customer
Convenience
Solution
Price
Promotion
Cu stomer Cost
C

ommunication

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Use of Marketing Plan
To determine:
 Where the company is now,
 Where it wants to go,
 How to get there
Includes:
 Advertising Plan
 Sales Promotion Plan
 Pricing Plan
 Distribution Plan
 Product Plan


 Target Market Plan

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

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Mission Statements

It is one of the most difficult aspects of
marketing planning to master, largely
because it is philosophical and qualitative
in nature.

Key points:
1. Role or Contribution

Profit

Service

Opportunity seeker
1. Business definition
2. Core Competencies
3. Company/Division Positioning


4. Indications for the future

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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.

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Examples of
Corporate Mission
SINGAPORE AIRLINES is engaged in air
transportation and related businesses. It
operates world-wide as the flag carrier of
the Republic of Singapore, aiming to
provide services of the highest quality at
reasonable prices for customers and a
profit for the company

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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

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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.

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A Goa
A
l is a dream
with a deadline
Zig Zaglar

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