3. 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
6. Marketing Planning
Process
1. 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
7. 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
9. Our Challenge
We should manage:
Revenue Profit
Return on
investment
Cost
Optimization
10. 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
11. The Elements of Strategy
1. 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
9. 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
12. 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.
13. 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.
14. 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.
15. Strategy Statement
The strategy statement for a business unit
is composed of the following three
elements:
1. A business definition that specifies the
area in which the business will compete.
2. A strategic thrust that describes where
competitive advantage is to be gained.
3. Supportive functional strategies.
16. 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.
19. Rules of
Marketing Planning
1. Develop the strategic marketing plan.
• 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.
20. Marketing Planning
Process
A strategic marketing plan should contain the
following:
1. Executive summary
2. Mission Statement
3. Financial Summary of revenue, expenses and
earnings
4. Marketing audit
5. SWOT analysis
6. Assumption of key determinants
7. Overall marketing objectives and strategies
8. Expected results
9. Alternatives (contingency plan)
10. Budget
21. Stages of Marketing Plan
1. 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
Measuremen
t and review
22. 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.
23. Marketing Audit I
“Marketing audit is a comprehensive,
systematic, independent, and periodic
examination of a company’s—or
business unit’s—marketing
environment, objectives, strategies, and
activities with a view to determining
problem areas and opportunities and
recommending a plan of action to
improve the company’s marketing
performance” Philip Kotler
24. 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
25. 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
26. 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
27. Marketing Audit V
At least once a year
Using:
– Normal information,
– Control Procedures,
– Marketing Research
Siêu thị điện máy Việt Long www.vietlongplaza.com.vn
28. 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
29. 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
30. Auditing Process
1. Identification, measurement,
collection, and analysis of all facts
and opinions that affect a company’s
problem
2. The application of judgment to
uncertain areas that remain after the
initial analysis
31. 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
33. Corporate Planning
Step 5:
Corporate
Plans
Step 4:
Plans
Step 3:
Objective
and
Strategy
Setting
Step 2:
Manageme
nt Audit
Step 1:
Corporate
Financial
Objective
Issue:
corporate
objectives
and
strategies
Marketing “
…
Marketing
Distribution
Manufacturi
ng
Financial
Personnel
Marketing
Distribution
Manufacturi
ng
Financial
Personnel
Marketing
Distribution
Manufacturi
ng
Financial
Personnel
Targeted
Growth in
Sales and
earnings
34. Elements of
Corporate Plan
1. 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
35. 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
36. 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.
Siêu thị điện máy Việt Long www.vietlongplaza.com.vn
37. 4. Diversification
2. Market
Development
New
Markets
1. Market
Penetration
Existing
Markets
Existing
Products
3. Product
Development
New
Products
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Marketing Objectives and
Strategies
39. 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
40. The Marketing Budget
To justify all marketing expenditures
from a zero base each year against
the task that you wish to accomplish.
41. 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
42. 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.
43. 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
44. Examples of
Corporate Mission
MARRIOTT’S 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
45. 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.