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MARKETING PLAN

THE SUNDAY TIMES

HOW TO WRITE A MARKETING PLAN


John Westwood
Publication KOGAN PAGE

MARKETING PLAN

A marketing plan is a written


document that details the necessary
actions to achieve one or more
marketing objectives.
It can be for a product or service, a
brand, or a product line.
Marketing plans cover between
one & five years.

MARKETING PLAN

A marketing plan may be part of an


overall business plan.
Solid marketing strategy is the
foundation of a well-written
marketing plan. While a marketing
plan contains a list of actions, a
marketing plan without a sound
strategic foundation is of little use.

MARKETING PLANS

Marketing plans are vital to marketing success.


They help to focus the mind of companies and
marketing teams on the process of marketing i.e.
what is going to be achieved & how we intend to
do it.
There are many approaches to marketing plans,
the key stages of the plan. It is contained under
the popular acronym AOSTC.
ANALYSIS.
OBJECTIVES.
STRATEGIES.
TACTICS.
CONTROLS.

MARKETING PLANNING
The term marketing planning is

used to describe the methods of


applying marketing resources to
achieve marketing objectives.
This may sound simple, but it is in
fact a very complex process.
The resources & the objectives will
vary from company to company &
will also change with time.

MARKETING PLANNING

Marketing Planning is used to


segment markets,
Identify market position,

Forecast market size, &


To plan viable Market Share

within each Market Segment.

MEANING OF
MARKETING
PLAN

MEANING OF MARKETING PLAN


Marketing planning flows from the strategic plan
of the organisation.
Businesses that succeed do so by creating and
keeping customers.
Marketing planning is the work of setting up
objectives for marketing activities and of
determining and scheduling the steps necessary
to achieve such objectives.

MEANING OF MARKETING PLAN


A marketing plan is a written statement of
marketing objectives, strategies and activities to
be followed in a business plan.
Marketing plan as a formal document is like a
guide to take right decisions at right time.
This year plan will help to evaluate planned
versus actual and become a guide for
subsequent year plans.

MEANING OF MARKETING PLAN

A marketing plan is a written document


that details the necessary actions to
achieve one or more marketing
objectives.
It can be for a product or service, a
brand, or a product line.
Marketing plans cover between one
and five years.
A marketing plan may be part of an
overall business plan.

MEANING OF MARKETING PLAN

A marketing plan may be


developed as a standalone
document or as part of a
business plan.
Either way, the marketing plan is
a blueprint for communicating
the value of the products and/or
services to the customers.

MEANING OF MARKETING PLAN

A typical small business


marketing plan might include a
description of its competitors, the
demand for the product or
service, and the strengths and
weaknesses from a market
standpoint of both the business
and its competitors.

MEANING OF MARKETING PLAN


Marketing plans are documents that outline
the strategies for promoting the product or
service.
A marketing plan is the first step to take
when the organisation commits to allocating
resources to marketing and promotions, and
can help to set up for success.
Although a marketing plan can take upto
several months to complete, it may help to
determine ways to differentiate the product
or service from the competition.

OBJECTIVES OF
MARKETING
PLAN

OBJECTIVES OF MARKETING PLAN


FOUR BROAD OBJECTIVES OF MARKETING PLAN AS FOLLOWS:

1. ALLOCATION OF SCARCE
RESOURCES:
2. ASSISTING THE FIRM TO ADAPT TO
ENVIRONMENT OPPORTUNITIES
3. COORDINATING THE MARKETING
STRATEGIC ACTIVITIES:
4. INTRODUCING A SYSTEMATIC
APPROACH:

OBJECTIVES OF MARKETING PLAN


can identify four broad objectives of marketing plan as follows:

1) Allocation of Scarce Resources:


Allocation of scarce resources like
Funds, Managerial talent and Technological
know-how among product/ market
alternatives
(e.g., product or market expansion, product
car market acquisition, product or market
diversification, etc.) which determine the
strategic direction of the firm.

OBJECTIVES OF MARKETING PLAN


2) Assisting the Firm to Adapt to Environment Opportunities:

Assisting the 'firm to adapt to environmental


opportunities and threats that help to
improve the business by providing a
strategic fit with the environment.
This outward locking search helps to
identify strategic marketing options and to
employ resources in such a way that they
yield the best return.

OBJECTIVES OF MARKETING PLAN

3) Coordinating the Marketing Strategic Activities:

Coordinating the marketing


strategic activities so as to reflect
the firm's own internal strengths
and weaknesses in order to achieve
efficient marketing operations.
Such integration provides adirection for building up the firm's
strengths and avoiding its
weaknesses.

OBJECTIVES OF MARKETING PLAN

3) Coordinating the Marketing Strategic Activities:

Integration: can take several forms, e.g.,

development of strategic marketing


programmes to achieve particular,
marketing objectives.
Adaptation and integration purposes are
complementary to each other.
Adaptation implies a focus on what the firm
intends to achieve, whereas Integration
focuses on how to achieve in the most
efficient, manner.

OBJECTIVES OF MARKETING PLAN

4) Introducing a Systematic Approach:


Introducing a systematic approach of organisation development
and management development through learning from the
outcomes of the past strategic marketing decisions.
Planning is a vehicle for more effective managerial learning so
that the executive team of a company can systematically increase
its strategic decision-making capabilities over time.
A properly designed and executed planning system for marketing
contributes to organisation-cum management development in two
ways:
i) The process of discussing.-developing, and executing marketing
pans serves as a valuable learning experience; and
ii) The process of performance monitoring and organisational
motivation

THE
MARKETING
PLANNING
PROCESS

THE MARKETING PLANNING PROCESS


The marketing process model based on the
publications of Philip Kotler.
It consists of five steps, beginning with the market &
environment research.
After fixing the targets & setting the strategies, they
will be realized by the marketing mix in step 4.
The last step in the process is the marketing
controlling.
In most organizations, "strategic planning" is an
annual process, typically covering just the year
ahead.
Occasionally, a few organizations may look at a
practical plan which stretches three or more years
ahead.

THE MARKETING PLANNING PROCESS

THE MARKETING PLANNING PROCESS

To be most effective, the plan has to be


formalized, usually in written form, as a
formal `marketing plan'.
The essence of the process is that it moves
from the general to the specific; from the
overall objectives of the organization down to
the individual action plan for a part of one
marketing programme.
It is also an interactive process, so that the
draft output of each stage is checked to see
what impact it has on the earlier stages & is
amended.

MARKETING PLANNING PROCESS


The process involves:
Carrying out Marketing research within & outside the
company;
Looking at the company's Strengths & Weaknesses;
making assumptions;
Forecasting;
Setting Marketing Objectives;
Generating marketing strategies;
Defining Programmes;
Setting budgets;
Reviewing the results & revising the Objectives,
Strategies or Programmes.

IMPORTANCE
OF
MARKETING
PLANNING
PROCESS

IMPORTANCE OF MARKETING PLANNING PROCESS

The planning process will:


Make better use of company
resources
To identify marketing opportunities;
Encourage team spirit & company
identity;
Help the company to move towards
achieving its corporate goals.
Increase Internal Communication:

IMPORTANCE OF MARKETING PLANNING PROCESS

The planning process will:


Understand the Competition:
Economy in Operation:
Helpful in Co-ordination:

Offset Future Uncertainties:


Customer Satisfaction:
Measure the Performance:
Helpful in Control:

STAGES OF
MARKETING
PLANNING

Marketing planning is
an iterative process
and the plan will be
reviewed and
updated as it is
implemented.

PURPOSE OF THE MARKETING PLAN

Offer brief explanation for why this plan


was produced
e.g., introduce new product, enter new
markets, continue growth of existing
product, yearly review and planning
document etc.

Suggest what may be done with the


information contained in the plan
e.g., set targets to be achieved in the next
year, represents a departmental report to
be included in larger business or strategic
plan, etc.

VISION: Desired future state;


the aspiration of the Organization

What are our Dreams &


Aspirations?

Where do we want to go?


What do we want to look
like in 5, 10, 15 years?

MISSION :It is the unique purpose


or reason for organizations
existence.
Overriding purpose in line with the
values or expectations of the
stakeholders

Who are we?


What business are we in?

Good Mission Statements


Focus on limited number of goals
Stress major policies and values
Define major competitive spheres
within which the company will operate
by defining the:
Industry.
Products and applications.
Competence.
Market-segment
Geographical
Vertical limit

eBay
We help people trade anything on
earth.
We will continue to enhance the online

trading experiences of all collectors,


dealers, small businesses, unique item
seekers, bargain hunters, opportunity

MISSION STATEMENT
For larger firms this may already exist in a public way (e.g., found in
annual report, found on corporate website) but for many others this
may need to be formulated.
The mission statement consists of a short, finely-honed paragraph that
considers the following issues:
Identifies a stable (i.e., not dramatically changing every year), longrun vision of the organization that can answer such questions as:
Why is the company in business?
What markets do we serve and why do we serve these markets?
In general terms, what are the main benefits we offer our
customers?
oe.g., a low price software provider may state they offer
practical and highly affordable business solutions
What does this company want to be known for?
What is the company out to prove to the industry, customers,
partners, employees, etc.?
What is the general corporate philosophy for doing business?
What products/services does the company offer?

MISSION STATEMENT
For larger firms this may already exist in a public way (e.g., found in annual report, found
on corporate website) but for many others this may need to be formulated.
In developing the vision presented in the mission statement consider:
Company History
oHow company started and major events of the company, products,
markets served, etc.
Resources and Competencies
o Consider what the company currently possesses by answering the
following:
What are we good at?
What is special about us compared to current and future
competitors (in general terms do not need to mention names)?
What do we do that gives us a competitive advantage?
o Consider the questions above in term of:
people, products, financial position, technical and research
capabilities, partnership/supply chain relations, others
Environment
oConsider the conditions in which company operates including:
physical (e.g., facilities), equipment, political regulatory,
competitive, economic, technological, others

STAGES OF MARKETING PLANNING


Set Corporate Objective

Carry out External Marketing Research ( Threats & Opportunities)


Carry out Internal Marketing Research (Strengths & Weakness)
Carry Out SWOT Analysis
Make Assumption

Set Marketing Objectives & Estimate Expected result


Generate Marketing Strategies or Action plan
Define Programs including Advertising & Promotions Plan

Set Budgets
Write Plan
Communicate Plan
Evaluation & Control System

Review & Update Plan

EVALUATION & CONTROL


Determine What to measure
Establish The Standards of performance

Measure Actual Performance

Does
performance
Match
Standards?

Yes
Stop

No
Take corrective Actions

SET CORPORATE OBJECTIVES

Corporate objectives are set by


top management and this may
not be in your brief.
Even so, you must be aware of
your company's corporate
objectives and the ultimate
plan should be in line with
them.

MARKETING OBJECTIVE FEATURES


DEFINABLE: It should defined to compare the
performance.

QUANTIFIABLE: It should be expressed in terms of


Value Or Market share
( Avoid Vague terms such as increase, improve or
maximize)
ACHIEVABLE:

e.g.
To increase sales of product globally by
30% in real terms within 5yrs.
To increase market share for the product in
the India from 10% to 15% over 2 years.

SMART OBJECTIVES
Specific - Be precise about what you are going to
achieve.
Measurable - Quantify you objectives.
Achievable - Are you attempting too much?
Realistic - Do you have the resource to make the
objective happen (men, money, machines, materials,
minutes)?
Timed - State when you will achieve the objective
(within a month? By February 2010?).

If you don't make your objective SMART, it


will be too vague and will not be realized.
Remember that the rest of the plan hinges
on the objective. If it is not correct, the
plan may fail.

CARRY OUT EXTERNAL MARKETING RESEARCH

Since companies exist & operate in

the marketing environment, the first


step in a marketing plan is research
into that environment.
Research is carried out into the
markets themselves & then the
information collected is analyzed in
the context of the marketing of the
products.

CARRY OUT INTERNAL MARKETING RESEARCH

Perhaps even more important than

general market information in historical


information available 'in house'.
This will be sales/order & margin/profit
data relating to the products and areas for
the plan.
This information needs to be put into
context in the form of market shares by
geographical area & Industry type for
individual products & in total.

CARRY OUT

SWOT ANALYSIS

When all the information and


opinions have been collected by
market research, the materials need
to be analysed and presented in a
way that will help to make the best
decisions.
This can be done by selecting the
key information and carrying out
SWOT analysis.

MAKE ASSUMPTIONS

The plan itself is based on a


clearly understood set of
assumptions.
These relate to external
economic factors as well as
Technological & Competitive
factors.

SET MARKETING OBJECTVES AND ESTIMATE EXPECTED RESULTS

The next step is the key to

the whole marketing


process: the setting of
marketing objectives. This is
what you want to achieve the fundamental aims of the
plan.

GENERATE MARKETING STRATEGIES AND ACTION PLANS

Marketing strategies are the methods that

will enable you to achieve your marketing


objectives.
They relate to the elements of the
marketing mix - product, price, promotion
and place.
For each objective, strategies need to be
developed relating to these individual
elements.
First the marketing strategy needs to be set
out & then action plans are prepared.

DEFINE PROGRAMMES

Defining programmes
means defining who
does what, when,
where & how.

SET BUDGETS

Objectives can be set &


strategies & action plans
devised, but they need to be
cost-effective.
The setting of budgets defines
the resources required to carry
out the plan & quantifies the
cost & also the financial risks
involved.

WRITE PLAN
Once all the above steps have
been carried out you will be in a
position to prepare the written
plan.
The written plan should only
contain the key information that
needs to be communicated.

COMUNICATE PLAN

If a plan properly
communicated to
those who will be
implementing it, it will
fail.

REVIEW & UPDATE

Conditions & situations


will change & the plan
should be reviewed in
the light of changing
circumstances.