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Chapter 8

Marketing Plan

Authors:
Prof. Keegan, Prof. Malcolm

Presenters: M. Azadi

M. Tabatabaei

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
Strengths of
organization
Weakness of
organization

Design for
creating value

Market Needs
Wants
Existing
competitors
Expected
competitors

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

Marketing Planning
Process
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
1.

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

Revenue

We should manage:

Profit

Optimization

Cost

Return on
investment

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

The Elements of
Strategy
Stepping back form the
day to day
2.
Ideas and thought
3.
Activity/Action
4.
Setting Objectives and
goals
5.
Important decisions
and choices
6.
Significant
commitment of
resources
7.
Not easily reversible
8.
Involves
choice/tradeoffs

1.

Differentiation
10. Insight
11. Vision
12. Defines the business
we are in
13. Defines the business
we are becoming
14. Value
15. Tradeoffs
16. Objectives and goals
17. Strategy Vs. Tactics
9.

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

1.

2.

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.
3.
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.

1.

Scanning the external environment


Identifying early on the effect this may
have on the company

2.

A strategic plan should cover a


three-year period.

Never write the one-year plan first and


extrapolate from it.

Marketing Planning
Process

3.

7.

A strategic marketing plan should contain the


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

Stages of Marketing Plan


Phase one
-Goal
Setting
Phase Two
Situation Review

Mission. 1
Corporate objectives. 2
Marketing audit. 3
SWOT analysis.4
Assumptions. 5

Phase
ThreeStrategy
Formulation

Marketing objective and strategies. 6


Estimate expected result. 7
Identity alternative plans and mixes. 8

Phase FourBudget. 9
Resources allocation
and
First year detailed implementation program. 10
monitoring

Measuremen
t 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 companysor
business
unitsmarketing
environment, objectives, strategies,
and activities with a view to
determining
problem
areas
and
opportunities and recommending a
plan of action to improve the
companys marketing performance
Philip Kotler

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

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

Auditing Process
Identification, measurement,
collection, and analysis of all
facts and opinions that affect a
companys problem
The application of judgment to
uncertain areas that remain
after the initial analysis

1.

2.

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

External
Opportunities
Internal

Threats

Strengths

SO

ST

Weakness

WO

WT

Corporate Planning
Step 1:
Step 2:
Corporate Managem
Financial ent Audit
Objective
Targeted
Growth in
Sales and
earnings

Step 3:
Objective
and
Strategy
Setting

Step 4:
Plans

Marketing

Marketing

Marketing

Distributio

Distributio

Distributio

n
Manufactu
ring
Financial
Personnel

n
Manufactu
ring
Financial
Personnel

Step 5:
Corporate
Plans

n
Manufactu
ring
Financial
Personnel

Issue:
corporate
objectives
and
strategies
Marketing

Elements of
Corporate Plan
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)
3.
Other corporate objectives

Social Responsibility and corporate

Stock-market

Employer image
1.

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
Three Intensive Growth Strategies:
Ansoffs Product/Market Expansion Grid

Existing
Products

New
Products

Existing
Markets

1. Market
Penetration

3. Product
Development

New
Markets

2. Market
Development

4. Diversification

The Marketing Mix


Marketing
Mix
Place

Product
Customer
Solution

Convenience

Price

Promotion

Customer Cost

Communication

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:

1. Role or Contribution

Profit

Service
Opportunity seeker

2. Business definition
3. Core Competencies
4. Company/Division Positioning
5. 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
MARRIOTTS 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