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GRADO EN ADMINISTRACIN Y DIRECCIN DE EMPRESAS

Marketing Planning (4th year / 2nd semester)


1.Introductiontomarketingplanning
Description:Understandingthephilosophyofmarketing anditsrelationshipto
marketing planning.Evaluateandcomprehendthedifferenttypesofmarketing plans.
1.1.Understanding themarketing processandthemarketing planningprocess
1.2.Themarketing planningprocess
1.3.Marketing plans andobjectives
1.4.Marketintelligenceandtheplanningprocess
Practical sessions:
1.1.Casestudy:Burberry
1.2.Casestudy:Campbells Soup

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 1

In developing the strategic marketing plan, the strategist needs to take as one of the
starting points the analysis of the three Cs of strategy: Customers, Competitors and
Capabilities.

Customers: Who are they? When, where and how do they buy? What motivates them?
How is the market currently segmented? How might it be segmented?
Competitors: Who are they? What strategies are they pursuing? What are their strengths
and weaknesses? What are their areas of vulnerability? How are they most likely to
develop over the next few years?
Capabilities: What are the organizations relative strengths and weaknesses in each of
the market segments in which it is operating? What levels of investment are available?
How might the capabilities best be leveraged?

Themarketingprocess

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 2

Anexpandedmodelofthemarketingprocess

Marketingfocusesonthecustomer

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 3

The four Ps elements of the marketing mix must be


blended to produce a cohesive marketing program

Themainelementsinamarketingsystem

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Customer
expectations
and
outcomes

Rising
customer
expectations
toohigh
mightresult
inunsatisfied
customers

Marketings four paradigms: the shift from


mass marketing to electronic marketing

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 5

From1985until2007,theAMAdefinedmarketingthisway:
1985:

Marketingistheprocessofplanningandexecutingtheconception,pricing,
promotion,anddistributionofideas,goods,andservicestocreateexchangesthat
satisfy individual and organizational objectives.
NotehowthisdefinitionfocusesonthefourPs,orthemarketingmix.
In2005,theAMAchangedthedefinitiontobetterreflecttherealitiesofcompetinginthe
marketplace:

Marketingisanorganizationalfunctionandasetofprocessesforcreating,
communicating, anddelivering valuetocustomers andformanagingcustomer
relationshipsinwaysthatbenefittheorganizationanditsstakeholders.
Thisdefinitionshiftsthefocusawayfromthemarketingmixandtowardvaluecreation
forcustomers.
In2013,theAMAchangedthedefinitionofmarketingagain:

Marketingistheactivity,setofinstitutions,andprocessesforcreating,
communicating, delivering, andexchangingofferingsthathavevalueforcustomers,
clients,partners,andsocietyatlarge.(approvedJuly2013)

TheStrategicPlanningProcess

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 6

TheBusinessUnitStrategicPlanningProcess

Product versusMarketOrientedBusinessMissionsDefinitions

Marketing planning is the structured process of


researching and analyzing marketing situations,
developing and documenting marketing objectives,
strategies and programs, and implementing,
evaluating and controlling activities to achieve the
objectives.

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 7

One way of considering the marketing planning process is as a number of stages


that are undertaken sequentially, and these are presented below.
1 Analysis. The planners need to assess the current situation in which the
organization finds itself. If we dont know where we are, we cannot find a route to
get to where were going. Often regarded as the first stage of the process, it is
seen to be the starting point for planning, i.e. identify where we are currently so
that we can plan a way forward.
2 Planning. This is the crucial stage. Working out what to do in order to achieve
the corporate objectives means setting marketing objectives and planning how to
achieve them through the most appropriate strategies and tactics. The second
step involves putting the plan together and coming up with the detail of how all
the different aspects are to be accomplished.
3 Implementation. Putting the plan into action means ensuring that everyone is
clear about what they should be doing: each member of the organization needs
to know exactly how they are expected to contribute. The penultimate stage
involves determining these responsibilities, setting timescales, identifying
appropriate structures, systems and processes to enable this, and determining
budgets to support the activities involved.

The
marketing
planning
process

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StrategicversusTacticalMarketingPlan

A strategic marketing plan is a plan which covers a period


beyond the next fiscal year. Usually this is for between three
to five years.
A tactical marketing plan covers in quite a lot of detail the
actions to be taken, by whom, during a shortterm planning
period. This is usually for one year or less.

Derivingtacticalplansfrombasicobjectives

UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 9

According to McKay (1972) there are only three basic marketing objectives: to
enlarge the overall market, to increase share of the existing market, and to increase
profitability. These objectives might be seen as strategic, longterm objectives: they
would need to be broken down into subobjectives, and even subsubobjectives.
This might give rise to a set of objectives as follows:
Enlarge the overall market: increase product innovation (either through
improving existing products or through developing new products), or increase
market innovation (either through developing existing enduse markets or through
discovering new enduse markets).
Increase market share: either by emphasizing product development and
improvement (performance, quality or features), or by emphasizing persuasion
(sales effort, or advertising, or sales promotion), or by improving customer service
(after sales, better credit and collection, or better availability and delivery).
Improve profitability: either by increasing sales volume (more sales effort,
stronger advertising and sales promotion), or by eliminating unprofitable activities
(prune product range, prune sales coverage, cut customer services), or by
improving prices (raise prices, or use price differentiation), or by cutting costs
(improved effectiveness of marketing tools).

Contents of
atypical
marketing
plan

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Market intelligence involves gathering information on a regular, ongoing


basis to stay in touch with whats happening in the marketplace.
Market intelligence includes gathering of data from the companys
external environment and is the information relevant to a companys
markets, gathered and analyzed specifically for the purpose of accurate
and confident decisionmaking in determining strategy in areas such as
market opportunity, market penetration strategy, and market
development.
Market intelligence as applied to the strategic planning process can be
broken down into four separate but interrelated subprocesses:
Situational analysis
Future watch,
Strategic planning, and
The early warning/opportunity system.

Casestudy:
Tweetsfromaluxuryfashionbrandthatsmorethan150yearsold?
Burberryshistorymayhaveitsrootsinthenineteenthcentury,
butitsbrandhasatwentyfirstcenturyimageandisaprofitleader.
TheBritishfirmhasmorethan1millionTwitterfollowers,14millionlikeson
Facebookand22millionYouTubeviews.ItsPinterestpageanditsbrandrelated
websites (like www.Burberry.com and www.ArtoftheTrench.com) draw thousands
ofvisitorseveryday.
Chief executive Angela Ahrendts wants to connect the brand to its customers
when and where they choose. Thats why Burberry spends 60 percent of its
marketing budget on digital media of all kinds, including social media, mobile
marketing and more. When the firm releases a new collection, it streams fashion
shows live on Facebook as well as on instore screens and media walls at
Heathrow and other transportation hubs. When it introduced its new Body
fragrance, it offered free samples first to Facebook fans, generating excitement
and product trial. When it launched a new branded wristwatch, the first
communications were delivered via mobile marketing. Mobile marketing
continues instore as well, providing shoppers with access to more detailed
product information and to fashion tips.

Because retail sales constitute twothirds of Burberrys revenues, the company has
been expanding its retail presence in international markets such as Brazil, Mexico
and China where demand is especially high for statussymbol clothing and
accessories.
Fastgrowing retail sales in these markets are helping to balance slowergrowing
retail sales in Europe and the United States. The company is also intensifying its new
product development efforts to increase sales of menswear and leather goods.
Finally, for brand fans who want to customize their trenchcoats, Burberry Bespoke
offers the opportunity to select from dozens of choices of fabrics, collars, cuffs, belts
and other features 12 million different combinations in all to make each bespoke
coat oneofakind.
Case questions
1. Which of the nine ways to grow does Burberry appear to be using, and why?
2. What are Burberrys main strengths, and how is the firm building on them to
provide value?

GrowthGrid ninewaystogrow

Case study: Campbells Wants to Show You the Value of Soup


The Campbell Soup Company is on a mission to create
value in the minds of consumers. Value is the
customers subjective assessment of benefits relative to
costs in determining the products worth. Campbells is
very aware of the value equation and is concerned that
some consumers may not appreciate the good value of
Campbells soups. To change this perception,
Campbells has intensified its marketing efforts to
reposition its soup brands and differentiate them from the competition.
Campbells Soup was founded in 1869 as a canned-food company. Its iconic redand-white colors, first adopted in 1898 based upon the colors of the Cornell
football team, have since become a core part of the companys brand identity.
Although most people associate Campbells with soup, the company has adopted
new product mixes through acquisitions
and expansions. Campbells is divided into
three main divisions: Campbell North
America,
Pepperidge
Farm,
and
International. The company owns such
well-known brands as Campbells, Pace,
Pepperidge Farm, and V8.
Campbells has been largely successful as a company, but in
recent years its soup division in North America has diminished. Although product
lines such as Pepperidge Farm have performed well globally, simple meal sales
within the United States, which includes Campbells soups, decreased 6 percent.
With more than $1 billion in condensed soup sales, such a decrease is a serious
threat to Campbells Soup. In response the company is taking the bold marketing
move of increasing its marketing by $100 million in order to reposition how
consumers, particularly the younger generation, view condensed soup.

This is not Campbells first endeavor to alter consumer perceptions of its flagship
brand. In the last few years the company has performed extensive marketing
research that culminated in changing its iconic labels for its condensed soups and
adopting a new advertising slogan. The bowls on the labels got bigger, the soup
got steamier, the spoon was abandoned, and the logo was moved toward the
bottom. To emphasize the quality and versatility of its soups, Campbells adopted
the tagline Its Amazing What Soup Can Do for all of its different soup line-ups
within the United States. It is also working on developing marketing initiatives to
target Millennials and Hispanics.
However, Campbells newest marketing initiatives are set to push the limits of
how its soups are perceived. For many years Campbells has been emphasizing
the healthy nature of its soups. As consumers have become more healthconscious, Campbells responded by reducing the sodium in its soup products. Yet
because the campaign was not successful in increasing purchases, Campbells is
taking the controversial step of de-emphasizing its health initiatives and pouring
marketing dollars into re-portraying its brand as tasty and exciting.
Such a move comes with controversy because Campbells has raised the amount
of sodium in some of its soups. However, when companies try to address
nutritional issues but consumers show little interest, the companies are faced
with the dilemma of dropping their health campaigns in exchange for adopting
attributes, such as taste, that customers value. Campbells had also introduced
discounts on its soups in the hopes of attracting price-conscious consumers. After
the move failed to generate increased sales, Campbells decided to stop
discounting its soup products. Without these discounts, Campbells will have to
increase the perceived value of its products to convince consumers to pay more.
Yet Campbells remains undeterred. The company aims to engage in what
Campbells CEO calls disruptive innovation with the introduction of new
product lines, new packaging, and new flavors. For instance, Campbells released
new exotic flavors in pouches to appeal to the younger generation. Campbells
has even tested marketing through new technology channels. The company has
released iAds through Apple iPhones and iPads, a tactic that appears to aid brand

recall. Initial studies found that consumers who viewed Campbells iAds were five
times more likely to recall them than those who had seen its TV ads. If Campbells
has its way, then a can of soup will become much more valuable to consumers.
Questions for Discussion (visit also www.campbells.com)
1. Evaluate Campbells success in implementing the marketing concept.
2. How would you define Campbells target market for soup?
3. How is Campbells trying to increase the customers perceived value of its soup?