Marketing Plan Final

Economy & Finance

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  • Marketing Plan Authors: Prof. Keegan, Prof. Malcolm Presenters: M. Azadi M. Tabatabaei Chapter 8
  • Objectives Marketing planning Tactical and Strategic Marketing Plans Marketing planning process Marketing audits Corporate Planning Assumptions Marketing Objectives Marketing Strategy Marketing Program Mission statements
  • 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 Strengths of organization Weakness of organization Existing competitors Expected competitors Design for creating value
  • Marketing Planning Process Definition: The application of marketing resources to achieve marketing objectives.
  • Marketing Planning Process Performing a situation analysis Formulating basic assumptions Setting objectives for what is being sold and to whom Deciding how the objectives are to be achieved Scheduling and costing out the actions necessary for implementation
  • 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
  • Essential of Marketing Planning We need marketing planning when hostiles increased and environment is complex.
  • Our Challenge We should manage: Cost Optimization
  • Application of Marketing Plan To help identify sources of competitive advantage To force an organized approach To develop specificity To ensure consistent relationships To inform everyone in the organization about priorities To obtain resources needed to implement plans To engage organizational support at all levels, form the bottom to the top of the organization To set objectives and strategies To gain commitment towards goals
  • The Elements of Strategy Stepping back form the day to day Ideas and thought Activity/Action Setting Objectives and goals Important decisions and choices Significant commitment of resources Not easily reversible Involves choice/tradeoffs Differentiation Insight Vision Defines the business we are in Defines the business we are becoming Value Tradeoffs Objectives and goals Strategy Vs. Tactics
  • 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.
  • 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.
  • Strategy Statement The strategy statement for a business unit is composed of the following three elements: A business definition that specifies the area in which the business will compete. A strategic thrust that describes where competitive advantage is to be gained. 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 Board Senior Management Middle Management Operations
  • Strategic Oriented Company Board Senior Management Middle Management Operations
  • Rules of Marketing Planning Develop the strategic marketing plan. Scanning the external environment Identifying early on the effect this may have on the company A strategic plan should cover a three-year period. Never write the one-year plan first and extrapolate from it.
  • Marketing Planning Process A strategic marketing plan should contain the following: Executive summary Mission Statement Financial Summary of revenue, expenses and earnings Marketing audit SWOT analysis Assumption of key determinants Overall marketing objectives and strategies Expected results 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 10. First year detailed implementation program Phase one -Goal Setting Phase Two –Situation Review Phase Three-Strategy Formulation Phase Four-Resources allocation and monitoring Measurement and review
  • 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 Examine external and internal information and procedures Identify problems in the environment
  • 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 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
  • 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 External Audit For Uncontrollable variables Internal Audit For controllable variables
  • Auditing Process Identification, measurement, collection, and analysis of all facts and opinions that affect a company’s problem The application of judgment to uncertain areas that remain after the initial analysis
  • 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
  • SWOT Analysis Opportunities Threats Strengths ST SO Weakness WT WO Internal External
  • Corporate Planning Step 1: Corporate Financial Objective Step 2: Management Audit Step 3: Objective and Strategy Setting Step 4: Plans Step 5: Corporate Plans Targeted Growth in Sales and earnings Marketing Distribution Manufacturing Financial Personnel Marketing Distribution Manufacturing Financial Personnel Marketing Distribution Manufacturing Financial Personnel Issue: corporate objectives and strategies Marketing “ …
  • Elements of Corporate Plan The desire level of profitability 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) Other corporate objectives Social Responsibility and corporate Stock-market Employer image
  • 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
  • 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.
  • Marketing Objectives and Strategies 4. Diversification Market Development New Markets Market Penetration Existing Markets Existing Products Product Development New Products Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid
  • The Marketing Mix Marketing Mix Customer Solution Customer Cost Communication Convenience
  • 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
  • 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 in nature. Key points: Role or Contribution Profit Service Opportunity seeker Business definition Core Competencies Company/Division Positioning Indications for the future
  • 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 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
  • 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 External Audit For Uncontrollable variables Internal Audit For controllable variables