The Planning Principles

Principle 1 Strategy before tactics. The first stage for the

organisation was to develop the strategic marketing plan first; significant emphasis
was placed on the external environment, looking for the early identification of
forces coming from it. From this appropriate strategic responses, involving all
levels of management were developed. The initial plan was to write a three-year
plan with a review every twelve months.

Principle 2 Situate marketing within operations. For this

purpose the organisation intended, where practicable and within the confines of,
corporate confidentiality, to be as close as possible to the customer. Ideally it
would have been preferable to have both the marketing and sales report to the same
person but due to geographical influences beyond the control of the organisation
this was not possible. Instead the organisation orchestrated that both of the senior
management in charge of these departments reported to the COO on a monthly
basis, from there the results could be analysed and the appropriate action, if
required, be taken.

Principle 3 Shared values about marketing. In order to satisfy

this process the organisation carried out a Continuous Improvement (CI)[1] event
where the whole organisations logistic resources including time, materiel and
equipment were categorised and graded on their productivity and efficiency.
Subsequently this enabled the organisation to utilise the resources in the most
efficient manner to satisfy the needs of selected customer groups and achieve the
objectives for both the customer and the organisation. It was discovered that that
even though the CI was a functional event, it did more to enhance the attitude of
mind than simply to ensure that resources were being utilised in the most efficient
manner.

Principle 4 Structure around markets. For this principle the

organisation focussed on the SBUs, for without adequate marketing planning in
SBUs, corporate planning will have a limited value. To this end, organisational
activities were placed around customer groups, where possible rather than around
functional activities, thus getting marketing planning done in these SBUs.
Principle 5 Survey the environment thoroughly. For an
effective audit of the environment to take place the question sets, customised
according to level within the organisation were agreed by the stakeholders and
senior management in consultation with the managers in charge of sales and
marketing. This was then used to form the basis of the organisations Marketing
Information System (MIS) and in addition a marketing audit was instigated as
put of the organisations quarterly checks. It was deemed that if marketing audits
were carried out on a quarterly basis then the organisation would be able to spot
any trends early and administer the appropriate action. Fortunately with the
organisation being embedded in the public sector, poor economic conditions have
only a negligible effect on marketing and sales. Senior management were keen to
emphasise that the product life cycle was a tool that should be used in these
marketing audits.

Principle 6 Summarise information on SWOT

analyses. The organisation being more than familiar with SWOT analysis
decided that in order for the SWOT analysis to be conducted effectively and at the
same standard throughout the organisation, a SWOT should contain the following
key points:

Focus on each specific segment of crucial importance to the

organisations future.

Summarise information from the marketing audit.

Be brief, interesting and concise.

Focus on the key factors only.

List the differential strengths and weaknesses vis--

vis competitors, focussing on the competitive advantage.

List key external opportunities and threats only.

Identify and isolate the key issues and try not to just
formulate a list of unrelated points.
 To enable the reader to identify, instantly, the main thrust of
the business.

Always follow the implied question, which means that? in

order to obtain the real implications.

Do not over abbreviate, as the organisation is within the

public sector there is, at times heavy use of abbreviations
that causes misunderstanding and adds confusion.

Providing that these points are adhered to, this will provide continuity in the
analysis process and allow the reader a better understanding over what may be
implied. The theory behind this methodology is that after Stevensons (1976) study
of how 191 managers in six US organisations defined their strengths and
weaknesses. Apparently, position in the organisational hierarchy makes a
difference to what issues get identified. Top managers put a great deal of emphasis
on financial issues and very little on the technical ones; middle and lower
managers were concerned with technical issues but almost completely ignored the
financial ones, Whittington (1994). This was also a concern to the organisation
who, did not want to repeat this mistake as they viewed SWOT analysis as a tool
that would allow the organisation to use strengths, exploit opportunities, while
minimising threats and weaknesses. In order for the SWOT analysis to be most
effective, it needs to be only a few pages in length and concern itself with key
factors only, supported by relevant data.

Principle 7 Skills and knowledge. In order to ensure that those

responsible for marketing in the organisation and SBUs have the necessary
marketing knowledge for the job was of critical importance to the organisation. In
particular, ensure that they understand and how to use the more important tools of
marketing within the organisation examples of which are as follows:

1. Information.

1. How to obtain it.

 2. How to use it (maximise the advantage).

2. Positioning.

1. Market segmentation.

2. Ansoff.

3. Porter.

3. Product life cycle analysis.

1. Gap analysis.

4. Portfolio management.

1. Boston Consulting Group (BCG) analysis.

2. Directional policy matrix.

3. The 4 x Ps management, Gilligan & Wilson (2003).

1. Hard Ps.

1) Product.

2) Price.

3) Place.

4) Promotion.

2. Soft Ps.

1) People.

2) Physical evidence.

3) Process management.
An example of the elements of what is commonly termed as the marketing mix
used by the organisation, which has been adapted from Strategic marketing
planning, Gilligan & Wilson (2003). The resulting action from using the
marketing mix highlighted a deficiency within the employee development
category. It was apparent that the organisation lacked the required subject matter
expertise in marketing below that of senior management, the stakeholders
concluded that they would enlist key enablers from the middle management sector
onto sponsored MBA degrees at university to fill this void.

Principle 8 Systematise the process. It was deemed a critical

point by the organisation that a set of written procedures and a common format for
marketing planning was required at this juncture. The main purposes for such a
system were:

a. To ensure that all key issues were systematically considered.

b. To combine the essential elements of the strategic planning of each SBU in a

constant manner.

c. To help corporate management (stake holders) to compare other diverse

businesses and to understand the overall condition of, and prospects for, the
organisation.

Only once a clear, legible and concise set of written procedures promulgated, could
the organisation move forward and sequence the organisational objectives.

Principal 9 Sequence objectives. As resource management features

heavily on the organisations priorities, it was essential that all objectives were
prioritised according to their impact on the organisation and their urgency and
those resources are allocated accordingly. McDonald (2000) suggested one method
for prioritisation, this was the method utilised by the organisation. Though
simplistic in nature, it proved effective and more successful than other models,
such as the BCG and thus was employed. This method provides a useful basis for
thinking about priorities across a spread of activities and helps the managers think
about the investment needs of a portfolio of business.
Principle 10 Style and culture. The organisation recognises that
marketing planning cannot be truly effective without the active support and
participation of those who lead the culture. Even with the support of the culture
leaders, the type of marketing planning required by the organisation has to be
appropriate for the phase of the organisational lifeline. This phase was measured
before the introduction of marketing planning.