Marketing PlanMarketing Plan

Authors:Authors:Prof. Keegan, Prof. MalcolmProf. Keegan, Prof. Malcolm

Presenters: M. AzadiPresenters: M. Azadi M. Tabatabaei M. Tabatabaei

Chapter 8

ObjectivesObjectives

Marketing planningMarketing planning Tactical and Strategic Marketing PlansTactical and Strategic Marketing Plans

Marketing planning processMarketing planning process Marketing auditsMarketing audits

Corporate PlanningCorporate Planning AssumptionsAssumptions

Marketing ObjectivesMarketing Objectives Marketing StrategyMarketing Strategy Marketing ProgramMarketing Program Mission statementsMission statements

Marketing PlanningMarketing Planning

An outline of a design to An outline of a design to accomplish a specific objective: accomplish a specific objective: – To create value for customers at a To create value for customers at a

profit, or in the new concept of profit, or in the new concept of marketing,marketing,

– To create a mutually beneficial To create a mutually beneficial relationshiprelationship

Marketing PlanningMarketing Planning

Market Needs

Wants

Strengths of organization

Weakness of organization

Existing competitors

Expected competitorsDesign for

creating value

Marketing Planning Marketing Planning ProcessProcess

Definition:Definition: The application of marketing The application of marketing

resources to achieve marketing resources to achieve marketing objectives. objectives.

Marketing Planning Marketing Planning Process Process

1.1. Performing a situation analysisPerforming a situation analysis

2.2. Formulating basic assumptionsFormulating basic assumptions

3.3. Setting objectives for what is being Setting objectives for what is being sold and to whomsold and to whom

4.4. Deciding how the objectives are to be Deciding how the objectives are to be achievedachieved

5.5. Scheduling and costing out the Scheduling and costing out the actions necessary for implementationactions necessary for implementation

DevelopDevelopa Market Plana Market Plan Management provides little guidance as Management provides little guidance as

to how the process should be managed.to how the process should be managed.– To Compromise between what is desirable To Compromise between what is desirable

and what is practicableand what is practicable Management must be Management must be customizedcustomized to to

their particular organizationtheir particular organization– SizeSize

– ComplexityComplexity– Character and diversity of company Character and diversity of company

operationsoperations

Essential of Marketing Essential of Marketing PlanningPlanning

We need marketing planning We need marketing planning when hostiles increased and when hostiles increased and

environment is complex.environment is complex.

Our ChallengeOur Challenge

We should manage:We should manage:

Revenue ProfitReturn on investment

Cost

Optimization

Application of Application of Marketing PlanMarketing Plan

1.1. To help identify sources of competitive To help identify sources of competitive advantageadvantage

2.2. To force an organized approachTo force an organized approach3.3. To develop specificityTo develop specificity

4.4. To ensure consistent relationshipsTo ensure consistent relationships5.5. To inform everyone in the organization about To inform everyone in the organization about

prioritiespriorities6.6. To obtain resources needed to implement plansTo obtain resources needed to implement plans

7.7. To engage organizational support at all levels, To engage organizational support at all levels, form the bottom to the top of the organizationform the bottom to the top of the organization

8.8. To set objectives and strategiesTo set objectives and strategies9.9. To gain commitment towards goalsTo gain commitment towards goals

The Elements of The Elements of StrategyStrategy

1.1. Stepping back form Stepping back form the day to daythe day to day

2.2. Ideas and thoughtIdeas and thought3.3. Activity/ActionActivity/Action

4.4. Setting Objectives and Setting Objectives and goalsgoals

5.5. Important decisions Important decisions and choicesand choices

6.6. Significant Significant commitment of commitment of

resourcesresources7.7. Not easily reversibleNot easily reversible

8.8. Involves Involves choice/tradeoffschoice/tradeoffs

9.9. DifferentiationDifferentiation10.10. InsightInsight11.11. VisionVision

12.12. Defines the business Defines the business we are inwe are in

13.13. Defines the business Defines the business we are becomingwe are becoming

14.14. ValueValue15.15. TradeoffsTradeoffs

16.16. Objectives and goalsObjectives and goals17.17. Strategy Vs. TacticsStrategy Vs. Tactics

Strategic PlanStrategic Plan

Definition:Definition: A clear and simple summary of A clear and simple summary of

– Key market trends,Key market trends,– Key target segments, Key target segments,

– The value required by each segment,The value required by each segment,– How the company intends to create value,How the company intends to create value,

– With a clear prioritization of marketing With a clear prioritization of marketing objectives and strategies, together with objectives and strategies, together with

financial consequences. financial consequences.

Biggest Danger for Biggest Danger for OrganizationsOrganizations

Most Managers Most Managers prefer to sell the prefer to sell the products they find products they find easiest to sell to easiest to sell to customers who customers who offer the least line offer the least line of resistance.of resistance.

StrategyStrategy

Strategy describes:Strategy describes: The direction a business will pursue and The direction a business will pursue and

guides the allocation of resources and guides the allocation of resources and efforteffort

The business we are in and becoming.The business we are in and becoming.

And provides:And provides: The logic that integrates the Perspectives The logic that integrates the Perspectives

of functional departments and operating of functional departments and operating units and points them all in the same units and points them all in the same

direction.direction.

Strategy StatementStrategy Statement

The strategy statement for a business The strategy statement for a business unit is composed of the following three unit is composed of the following three

elements:elements:

1.1. A business definition that specifies the A business definition that specifies the area in which the business will area in which the business will

compete.compete.

2.2. A strategic thrust that describes where A strategic thrust that describes where competitive advantage is to be gained.competitive advantage is to be gained.

3.3. Supportive functional strategies. Supportive functional strategies.

Marketing StrategyMarketing Strategy

Definition:Definition: It is a statement of how a brand or It is a statement of how a brand or

product line will achieve its objectivesproduct line will achieve its objectives It Provides decisions and direction It Provides decisions and direction

regarding variables such as:regarding variables such as:– Segmentation of the market,Segmentation of the market,

– Identification of the target market,Identification of the target market,– Positioning,Positioning,

– Marketing Mix elements and Marketing Mix elements and expenditures.expenditures.

Tactically Oriented Tactically Oriented CompanyCompanyBoard

Senior Management

Middle Management

Operations

Strategic Oriented Strategic Oriented CompanyCompanyBoard

Senior Management

Middle Management

Operations

Rules of Rules of Marketing PlanningMarketing Planning

1.1. Develop the strategic marketing Develop the strategic marketing plan.plan.

• Scanning the external environmentScanning the external environment• Identifying early on the effect this may Identifying early on the effect this may

have on the companyhave on the company

2.2. A strategic plan should cover a A strategic plan should cover a three-year period.three-year period.

• NeverNever write the one-year plan first write the one-year plan first and extrapolate from it.and extrapolate from it.

Marketing Planning Marketing Planning ProcessProcess

A strategic marketing plan should contain the A strategic marketing plan should contain the following:following:

1.1. Executive summaryExecutive summary2.2. Mission StatementMission Statement

3.3. Financial Summary of revenue, expenses and Financial Summary of revenue, expenses and earningsearnings

4.4. Marketing auditMarketing audit5.5. SWOT analysisSWOT analysis

6.6. Assumption of key determinantsAssumption of key determinants7.7. Overall marketing objectives and strategiesOverall marketing objectives and strategies

8.8. Expected resultsExpected results9.9. Alternatives (contingency plan)Alternatives (contingency plan)

10.10. BudgetBudget

Stages of Marketing PlanStages of Marketing Plan1 .Mission

2 .Corporate objectives

3 .Marketing audit

4.SWOT analysis

5 .Assumptions

6 .Marketing objective and strategies

7 .Estimate expected result

8 .Identity alternative plans and mixes

9 .Budget

10 .First year detailed implementation program

Phase one -Goal Setting

Phase Two –Situation Review

Phase Three-Strategy Formulation

Phase Four-Resources allocation and monitoring

Measurement and review

Critical FactorsCritical Factors

DelegationDelegation– When companies delegate marketing When companies delegate marketing planning to planner, the plan invariably planning to planner, the plan invariably

fails, because planning for line fails, because planning for line management cannot be delegated to a management cannot be delegated to a

third party. third party. CommitmentCommitment

– Without it, those charged with Without it, those charged with introducing the planning found that there introducing the planning found that there

was great resistance to planning on the was great resistance to planning on the part of local managers.part of local managers.

Marketing Audit IMarketing Audit I

““Marketing audit is a comprehensive, Marketing audit is a comprehensive, systematic, independent, and systematic, independent, and periodic examination of a company’speriodic examination of a company’s—or business unit’s—marketing —or business unit’s—marketing environment, objectives, strategies, environment, objectives, strategies, and activities with a view to and activities with a view to determining problem areas and determining problem areas and opportunities and recommending a opportunities and recommending a plan of action to improve the plan of action to improve the company’s marketing performance”company’s marketing performance”

Philip KotlerPhilip Kotler

Marketing Audit IIMarketing Audit II

Goal:Goal:To see how well the firm is To see how well the firm is

applying the marketing conceptsapplying the marketing concepts

1.1. Examine external and internal Examine external and internal information and proceduresinformation and procedures

2.2. Identify problems in the Identify problems in the environmentenvironment

Marketing Audit IIIMarketing Audit III

Need for an audit does not Need for an audit does not manifest itself until things start to manifest itself until things start to

go wrong for a company in the go wrong for a company in the form:form:

Declining salesDeclining sales Falling marginsFalling margins

Lost market shareLost market share Underutilized production capacityUnderutilized production capacity

Marketing Audit IVMarketing Audit IV

External AuditExternal Audit-By independent experts-By independent experts

-Starts with an examination of information -Starts with an examination of information on the general economy and then moves on on the general economy and then moves on

to the outlook for the health and growth of to the outlook for the health and growth of the markets served by the company.the markets served by the company.

Internal AuditInternal Audit-By members of the marketing organization-By members of the marketing organization-To assess the resources of the organization -To assess the resources of the organization

as they relate to the environment and the as they relate to the environment and the resources of Competitorsresources of Competitors

Marketing Audit VMarketing Audit V

At least once a yearAt least once a year Using:Using:

– Normal information,Normal information,– Control Procedures,Control Procedures,– Marketing ResearchMarketing Research

Marketing Audit VIMarketing Audit VI

Company Executives and Company Executives and ManagersManagers

– Few Consultants have the in-depth Few Consultants have the in-depth knowledge of market, customers, knowledge of market, customers,

company culture, and the industry company culture, and the industry that company line managers have.that company line managers have.

External ConsultantsExternal Consultants– Every company is at risk of becoming Every company is at risk of becoming

blinded to reality by the influence of blinded to reality by the influence of company culturecompany culture

Kind of variables Kind of variables for Controllingfor Controlling

Non Direct ControlNon Direct ControlThese usually take the form of what These usually take the form of what

can be described as:can be described as:– Environment,Environment,

– Market,Market,– Competitive variablesCompetitive variables

Company has ControlCompany has Control– Operational variablesOperational variables

Auditing ProcessAuditing Process

1.1. Identification, measurement, Identification, measurement, collection, and analysis of all collection, and analysis of all

facts and opinions that affect a facts and opinions that affect a company’s problemcompany’s problem

2.2. The application of judgment to The application of judgment to uncertain areas that remain uncertain areas that remain

after the initial analysisafter the initial analysis

Marketing Audit Marketing Audit ProcedureProcedure

Marketing environment auditMarketing environment audit Marketing strategy auditMarketing strategy audit

Marketing organization auditMarketing organization audit Marketing system auditMarketing system audit

Marketing productivity auditMarketing productivity audit Marketing function auditMarketing function audit

Marketing excellence reviewMarketing excellence review Ethical and social responsibility reviewEthical and social responsibility review

SWOT AnalysisSWOT Analysis

Opportunities Threats

Strengths STSO

Weakness WTWO

Internal

External

Corporate PlanningCorporate PlanningStep 1:Step 1:

Corporate Corporate Financial Financial ObjectiveObjective

Step 2:Step 2:

ManagemManagement Auditent Audit

Step 3:Step 3:

Objective Objective and and

Strategy Strategy SettingSetting

Step 4:Step 4:

PlansPlansStep 5:Step 5:

Corporate Corporate

PlansPlans

Targeted Targeted Growth in Growth in Sales and Sales and earningsearnings

MarketingMarketingDistributioDistributio

n n ManufactuManufactu

ringringFinancialFinancial

PersonnelPersonnel

MarketingMarketingDistributioDistributio

nnManufactuManufactu

ringringFinancial Financial PersonnelPersonnel

MarketingMarketingDistributioDistributio

nnManufactuManufactu

ringringFinancial Financial PersonnelPersonnel

Issue:Issue:corporate corporate objectives objectives

and and strategiesstrategies

Marketing Marketing

““

……

Elements ofElements ofCorporate PlanCorporate Plan

1.1. The desire level of profitabilityThe desire level of profitability2.2. Business boundariesBusiness boundaries

• What Kinds of products will be sold to what kinds of What Kinds of products will be sold to what kinds of market (Marketing)market (Marketing)

• What Kinds of facilities will be developed What Kinds of facilities will be developed (Production and distribution)(Production and distribution)

• The size and character of the labor force The size and character of the labor force (Personnel)(Personnel)

• Funding (Finance)Funding (Finance)• Technology to be developed (Research and Technology to be developed (Research and

development)development)3.3. Other corporate objectivesOther corporate objectives

• Social Responsibility and corporateSocial Responsibility and corporate• Stock-marketStock-market

• Employer imageEmployer image

AssumptionsAssumptions

This is one of the most critical This is one of the most critical steps in the preparation of a steps in the preparation of a marketing plan because it is marketing plan because it is

the easiest step to do the easiest step to do carelessly.carelessly.

They should be:They should be:– Key,Key,

– CriticalCritical– and few in Numberand few in Number

– Consistent with relevant known Consistent with relevant known factsfacts

– With defensible assumptionsWith defensible assumptions

Examples:Examples:

Industrial overcapacity will increase Industrial overcapacity will increase from 105 percent to 115 percent as from 105 percent to 115 percent as

new plants come into operation.new plants come into operation. Price competition will force price levels Price competition will force price levels

down by 10 percent across the board.down by 10 percent across the board. A new product that competes with A new product that competes with ours will be introduced by our major ours will be introduced by our major

competitor before the end of the competitor before the end of the second quarter. second quarter.

4. Diversification2. Market

DevelopmentNew

Markets

1. MarketPenetration

ExistingMarkets

ExistingProducts

3. ProductDevelopment

NewProducts

Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid

Marketing Objectives and Marketing Objectives and StrategiesStrategies

MarketingMix

Product

Price Promotion

Place

The Marketing MixThe Marketing Mix

CustomerSolution

Customer Cost Communication

Convenience

Use of Marketing PlanUse of Marketing Plan

To determine:To determine: Where the company is now,Where the company is now,

Where it wants to go,Where it wants to go, How to get thereHow to get there

Includes:Includes: Advertising PlanAdvertising Plan

Sales Promotion PlanSales Promotion Plan Pricing PlanPricing Plan

Distribution PlanDistribution Plan Product PlanProduct Plan

Target Market PlanTarget Market Plan

The Marketing BudgetThe Marketing Budget

To justify all marketing To justify all marketing expenditures from a zero base expenditures from a zero base

each year against the task that each year against the task that you wish to accomplish.you wish to accomplish.

Mission StatementsMission Statements

It is one of the most difficult aspects It is one of the most difficult aspects of marketing planning to master, of marketing planning to master,

largely because it is philosophical largely because it is philosophical and qualitative in nature.and qualitative in nature.

Key points:Key points:1.1. Role or ContributionRole or Contribution

ProfitProfit ServiceService

Opportunity seekerOpportunity seeker

2.2. Business definitionBusiness definition3.3. Core CompetenciesCore Competencies

4.4. Company/Division PositioningCompany/Division Positioning5.5. Indications for the futureIndications for the future

Types of Mission Types of Mission StatementsStatements

MotherhoodMotherhoodIt found in annual reports designed to It found in annual reports designed to

“stroke” shareholders/Non Practical Use“stroke” shareholders/Non Practical Use The Real ThingThe Real Thing

Meaningful Statement/impact on the Meaningful Statement/impact on the behavior of the executives at all levels.behavior of the executives at all levels.

Purpose StatementPurpose StatementLower-Level mission Lower-Level mission

statement/Appropriate on the strategic statement/Appropriate on the strategic business unit, departmental or product business unit, departmental or product

group level of the organization.group level of the organization.

Examples ofExamples ofCorporate MissionCorporate Mission

SINGAPORE AIRLINES is engaged in SINGAPORE AIRLINES is engaged in air transportation and related air transportation and related

businesses. It operates world-wide businesses. It operates world-wide as the flag carrier of the Republic of as the flag carrier of the Republic of

Singapore, aiming to provide Singapore, aiming to provide services of the highest quality at services of the highest quality at

reasonable prices for customers and reasonable prices for customers and a profit for the companya profit for the company

Examples of Examples of Corporate MissionCorporate Mission

MARRIOTT’S Mission Statement:MARRIOTT’S Mission Statement:

We are committed to being the We are committed to being the best lodging and food service best lodging and food service

company in the world, by treating company in the world, by treating employees in ways that create employees in ways that create

extraordinary customer service extraordinary customer service and shareholder valueand shareholder value

Last WordLast Word

There is no secret magic or a There is no secret magic or a formula.formula.

It is more of an age-old adage that It is more of an age-old adage that harder they work, the luckier they harder they work, the luckier they

get.get. It is not necessary to be a mighty It is not necessary to be a mighty

corporation to do all this and a corporation to do all this and a company of any size should be able company of any size should be able

to do so and succeed. to do so and succeed.

A Goal is a dream A Goal is a dream with a deadlinewith a deadline

Zig ZaglarZig Zaglar