The Tactical Marketing Plan

Drawing Up The Marketing Plan

1. Components of a Marketing Plan
(a) Executive Summary
(b) Current Market Situations
(c) Opportunity and Problem Analysis
(d) Objectives
(e) Marketing Strategy
(f) Action Programmes
(g) Projected Profit and Loss Statement
(h) Controls/Feedback
 Components of the Marketing Plan
(Cont.)
(a) Executive Summary
• Brief overview of the plan for quick
skimming.
• It summarises the plan’s main goals and
recommendations.
• Allows senior management to grasp
quickly the salient points.
Components of the Plan (Cont.)
(b) Current Market Situation
i. Identifies the forces that have an impact on the
present market situation.
ii. Projects the forces that will shape the market situation
during the relevant planning period.
iii. The areas of analysis are:
• Environmental climate;
• Competitive climate
• Company resources
• Performance profile; Performance forecast
• Market potentials/growth; Market description
 Components (Cont.)
(c ) Opportunity and Problem Analysis
• Popularly known as SWOT Analysis
• Situation Analysis (Section c above) will
uncover both problems and opportunities.
• Problems represent constraints to be
recognised; opportunities provide
directions for growth.
• The planner ranks both sides and define
marketing objectives and strategies.
 Components (Cont.)
(d) Assumptions and Sensitivities
The plan must state relevant assumptions
such as the impact of:
• The movement on the rate of exchange.
• The increase in inflation rate.
• A good rainy season or drought.
• The removal/imposition of import duty.
 Components (Cont.)
(e) Marketing Objectives
• To be operational, objectives must be
specific and measurable.
• Objectives are often expressed in terms
of:
I. Sales Volume.
II. Market Share.
III. Profit
 Components (Cont.)
(f) Marketing Strategy
• This a broad strategy statement on how objectives will
be achieved.
• It covers the following areas:
i. Target market
ii. Positioning
iii. Product line
iv. Pricing
v. Distribution outlets
vi. Advertising; Salesforce; etc
• Strategy must be flexible and be adaptive to changes in
the environment.
• To succeed, strategy must be precise.
 Components (Cont.)
(g) Action Programmes
• Action programmes break down the
strategy statement into actionable plans.
• Each strategy element must answer:
1) What will be done?
2) When will it be done?
3) Who will do it?
4) How much will it cost?
 Components (Cont.)

(h) Projected Profit-and-Loss Statement

• Market Segment Action Plans show:
i. Forecasted Sales Volume in units.
ii. Sales Value (Turnover)
iii. Cost of Goods Sold
iv. Gross Profit
v. Gross Margin %
vi. Expenses
vii. Net Profit
NB. See copies of Plans supplied by presenter.
 Components (Cont.)
(i) Control and Review
• There must mechanism for monitoring the
plan’s progress.
• Budgets are set and reviewed periodically.
• Control can also include contingency
plans.
 Advantages of Planning
• Encourages a rational approach to making
business decisions
• Everyone is clear of what is required,
reducing potential conflict and
misunderstandings.
• Allows senior mangers to set strategy and
leave junior managers to implementation.
• Planning highlights areas you might
otherwise miss.
 Disadvantages of Planning
• Plans form a complex process that
requires basic knowledge and skills.
• They are time-consuming and therefore
costly to construct and follow.
• Firms composed of small business units
lose some of their flexibility
• Procedures tend to take over and become
and end in themselves.
 The “Dos” of Planning
• Be clear of the organisation’s strategic
objectives.
• Analyse information carefully
• Adjust the plan to suit the size, culture, and
circumstances of the org.
• Consult and communicate the plan.
• Remember the plan is a means to achieve
objectives, not a rigid control mechanism.
• Be aware that planning is time-consuming.
 The “Don’t” of Planning
• Don’t confuse objectives (what you want to
achieve) with strategy (how you are trying
to achieve them).
• Don’t spend too long projecting future
markets from historical data.
• Don’t let planners alter the shape of
objectives.
• END