1. Marketing PlanMarketing Plan
Authors:Authors:
Prof. Keegan, Prof. MalcolmProf. Keegan, Prof. Malcolm
Presenters: M. AzadiPresenters: M. Azadi M. TabatabaeiM. Tabatabaei
Chapter 8

2. 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

3. Marketing PlanningMarketing Planning
 An outline of a design to accomplish aAn outline of a design to accomplish a
specific objective:specific objective:
– To create value for customers at a profit,To create value for customers at a profit,
or in the new concept of marketing,or in the new concept of marketing,
– To create a mutually beneficialTo create a mutually beneficial
relationshiprelationship

4. Marketing PlanningMarketing Planning
Market Needs
Wants
Strengths of
organization
Weakness of
organization
Existing
competitors
Expected
competitorsDesign for
creating value

5. Marketing PlanningMarketing Planning
ProcessProcess
Definition:Definition:
 The application of marketingThe application of marketing
resources to achieve marketingresources to achieve marketing
objectives.objectives.

6. Marketing PlanningMarketing Planning
ProcessProcess
1.1. Performing a situation analysisPerforming a situation analysis
2.2. Formulating basic assumptionsFormulating basic assumptions
3.3. Setting objectives for what is beingSetting objectives for what is being
sold and to whomsold and to whom
4.4. Deciding how the objectives are toDeciding how the objectives are to
be achievedbe achieved
5.5. Scheduling and costing out theScheduling and costing out the
actions necessary for implementationactions necessary for implementation

7. DevelopDevelop
a Market Plana Market Plan
 Management provides little guidance as toManagement provides little guidance as to
how the process should be managed.how the process should be managed.
– To Compromise between what is desirable andTo Compromise between what is desirable and
what is practicablewhat is practicable
 Management must beManagement must be customizedcustomized to theirto their
particular organizationparticular organization
– SizeSize
– ComplexityComplexity
– Character and diversity of company operationsCharacter and diversity of company operations

8. Essential of MarketingEssential of Marketing
PlanningPlanning
 We need marketing planning whenWe need marketing planning when
hostiles increased and environment ishostiles increased and environment is
complex.complex.

9. Our ChallengeOur Challenge
 We should manage:We should manage:
Revenue Profit
Return on
investment
Cost
Optimization

10. Application ofApplication of
Marketing PlanMarketing Plan
1.1. To help identify sources of competitive advantageTo help identify sources of competitive advantage
2.2. To force an organized approachTo force an organized approach
3.3. To develop specificityTo develop specificity
4.4. To ensure consistent relationshipsTo ensure consistent relationships
5.5. To inform everyone in the organization aboutTo inform everyone in the organization about
prioritiespriorities
6.6. 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 strategies
9.9. To gain commitment towards goalsTo gain commitment towards goals

11. The Elements ofThe Elements of
StrategyStrategy
1.1. Stepping back formStepping back form
the day to daythe day to day
2.2. Ideas and thoughtIdeas and thought
3.3. Activity/ActionActivity/Action
4.4. Setting ObjectivesSetting Objectives
and goalsand goals
5.5. Important decisionsImportant decisions
and choicesand choices
6.6. SignificantSignificant
commitment ofcommitment of
resourcesresources
7.7. Not easily reversibleNot easily reversible
8.8. InvolvesInvolves
choice/tradeoffschoice/tradeoffs
9.9. DifferentiationDifferentiation
10.10. InsightInsight
11.11. VisionVision
12.12. Defines the businessDefines the business
we are inwe are in
13.13. Defines the businessDefines the business
we are becomingwe are becoming
14.14. ValueValue
15.15. TradeoffsTradeoffs
16.16. Objectives and goalsObjectives and goals
17.17. Strategy Vs. TacticsStrategy Vs. Tactics

12. Strategic PlanStrategic Plan
Definition:Definition:
 A clear and simple summary ofA 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 marketingWith a clear prioritization of marketing
objectives and strategies, together withobjectives and strategies, together with
financial consequences.financial consequences.

13. Biggest Danger forBiggest Danger for
OrganizationsOrganizations
Most ManagersMost Managers
prefer to sell theprefer to sell the
products they findproducts they find
easiest to sell toeasiest to sell to
customers who offercustomers who offer
the least line ofthe least line of
resistance.resistance.

14. StrategyStrategy
Strategy describes:Strategy describes:
 The direction a business will pursue andThe direction a business will pursue and
guides the allocation of resources and effortguides the allocation of resources and effort
 The business we are in and becoming.The business we are in and becoming.
And provides:And provides:
 The logic that integrates the Perspectives ofThe logic that integrates the Perspectives of
functional departments and operating unitsfunctional departments and operating units
and points them all in the same direction.and points them all in the same direction.

15. Strategy StatementStrategy Statement
 The strategy statement for a business unitThe strategy statement for a business unit
is composed of the following threeis composed of the following three
elements:elements:
1.1. A business definition that specifies theA business definition that specifies the
area in which the business will compete.area in which the business will compete.
2.2. A strategic thrust that describes whereA 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.

16. Marketing StrategyMarketing Strategy
Definition:Definition:
 It is a statement of how a brand orIt is a statement of how a brand or
product line will achieve its objectivesproduct line will achieve its objectives
 It Provides decisions and directionIt 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 andMarketing Mix elements and
expenditures.expenditures.

17. Tactically OrientedTactically Oriented
CompanyCompany
Board
Senior
Management
Middle
Management
Operations

18. Strategic OrientedStrategic Oriented
CompanyCompany
Board
Senior
Management
Middle
Management
Operations

19. Rules ofRules of
Marketing PlanningMarketing Planning
1.1. Develop the strategic marketing plan.Develop the strategic marketing plan.
• Scanning the external environmentScanning the external environment
• Identifying early on the effect this mayIdentifying early on the effect this may
have on the companyhave on the company
2.2. A strategic plan should cover a three-A strategic plan should cover a three-
year period.year period.
• NeverNever write the one-year plan first andwrite the one-year plan first and
extrapolate from it.extrapolate from it.

20. Marketing PlanningMarketing Planning
ProcessProcess
A strategic marketing plan should contain theA strategic marketing plan should contain the
following:following:
1.1. Executive summaryExecutive summary
2.2. Mission StatementMission Statement
3.3. Financial Summary of revenue, expenses andFinancial Summary of revenue, expenses and
earningsearnings
4.4. Marketing auditMarketing audit
5.5. SWOT analysisSWOT analysis
6.6. Assumption of key determinantsAssumption of key determinants
7.7. Overall marketing objectives and strategiesOverall marketing objectives and strategies
8.8. Expected resultsExpected results
9.9. Alternatives (contingency plan)Alternatives (contingency plan)
10.10. BudgetBudget

21. Stages of Marketing PlanStages 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 FactorsCritical Factors
 DelegationDelegation
– When companies delegate marketingWhen companies delegate marketing
planning to planner, the plan invariablyplanning to planner, the plan invariably
fails, because planning for linefails, because planning for line
management cannot be delegated to amanagement cannot be delegated to a
third party.third party.
 CommitmentCommitment
– Without it, those charged with introducingWithout it, those charged with introducing
the planning found that there was greatthe planning found that there was great
resistance to planning on the part of localresistance to planning on the part of local
managers.managers.

23. Marketing Audit IMarketing Audit I
““Marketing audit is a comprehensive,Marketing audit is a comprehensive,
systematic, independent, and periodicsystematic, independent, and periodic
examination of a company’s—orexamination of a company’s—or
business unit’s—marketingbusiness unit’s—marketing
environment, objectives, strategies, andenvironment, objectives, strategies, and
activities with a view to determiningactivities with a view to determining
problem areas and opportunities andproblem areas and opportunities and
recommending a plan of action torecommending a plan of action to
improve the company’s marketingimprove the company’s marketing
performance”performance” Philip KotlerPhilip Kotler

24. Marketing Audit IIMarketing Audit II
Goal:Goal:
To see how well the firm is applying theTo see how well the firm is applying the
marketing conceptsmarketing concepts
1.1. Examine external and internalExamine external and internal
information and proceduresinformation and procedures
2.2. Identify problems in the environmentIdentify problems in the environment

25. Marketing Audit IIIMarketing Audit III
Need for an audit does not manifestNeed for an audit does not manifest
itself until things start to go wrong for aitself until things start to go wrong for a
company in the form:company in the form:
 Declining salesDeclining sales
 Falling marginsFalling margins
 Lost market shareLost market share
 Underutilized production capacityUnderutilized production capacity

26. 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 onon the general economy and then moves on
to the outlook for the health and growth ofto 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-To assess the resources of the
organization as they relate to theorganization as they relate to the
environment and the resources ofenvironment and the resources of
CompetitorsCompetitors

27. 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

28. Marketing Audit VIMarketing Audit VI
 Company Executives and ManagersCompany Executives and Managers
– Few Consultants have the in-depthFew Consultants have the in-depth
knowledge of market, customers,knowledge of market, customers,
company culture, and the industry thatcompany culture, and the industry that
company line managers have.company line managers have.
 External ConsultantsExternal Consultants
– Every company is at risk of becomingEvery company is at risk of becoming
blinded to reality by the influence ofblinded to reality by the influence of
company culturecompany culture

29. Kind of variablesKind of variables
for Controllingfor Controlling
 Non Direct ControlNon Direct Control
These usually take the form of what can beThese usually take the form of what can be
described as:described as:
– Environment,Environment,
– Market,Market,
– Competitive variablesCompetitive variables
 Company has ControlCompany has Control
– Operational variablesOperational variables

30. Auditing ProcessAuditing Process
1.1. Identification, measurement,Identification, measurement,
collection, and analysis of all factscollection, and analysis of all facts
and opinions that affect a company’sand opinions that affect a company’s
problemproblem
2.2. The application of judgment toThe application of judgment to
uncertain areas that remain after theuncertain areas that remain after the
initial analysisinitial analysis

31. Marketing AuditMarketing 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

32. SWOT AnalysisSWOT Analysis
Opportunities Threats
Strengths STSO
Weakness WTWO
Internal
External

33. Corporate PlanningCorporate Planning
Step 1:Step 1:
CorporateCorporate
FinancialFinancial
ObjectiveObjective
Step 2:Step 2:
ManagemeManageme
nt Auditnt Audit
Step 3:Step 3:
ObjectiveObjective
andand
StrategyStrategy
SettingSetting
Step 4:Step 4:
PlansPlans
Step 5:Step 5:
CorporateCorporate
PlansPlans
TargetedTargeted
Growth inGrowth in
Sales andSales and
earningsearnings
MarketingMarketing
DistributionDistribution
ManufacturiManufacturi
ngng
FinancialFinancial
PersonnelPersonnel
MarketingMarketing
DistributionDistribution
ManufacturiManufacturi
ngng
FinancialFinancial
PersonnelPersonnel
MarketingMarketing
DistributionDistribution
ManufacturiManufacturi
ngng
FinancialFinancial
PersonnelPersonnel
Issue:Issue:
corporatecorporate
objectivesobjectives
andand
strategiesstrategies
MarketingMarketing ““
……

34. Elements ofElements of
Corporate PlanCorporate Plan
1.1. The desire level of profitabilityThe desire level of profitability
2.2. Business boundariesBusiness boundaries
• What Kinds of products will be sold to what kinds ofWhat Kinds of products will be sold to what kinds of
market (Marketing)market (Marketing)
• What Kinds of facilities will be developedWhat Kinds of facilities will be developed
(Production and distribution)(Production and distribution)
• The size and character of the labor forceThe size and character of the labor force
(Personnel)(Personnel)
• Funding (Finance)Funding (Finance)
• Technology to be developed (Research andTechnology 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

35. AssumptionsAssumptions
 This is one of the most criticalThis is one of the most critical
steps in the preparation of asteps in the preparation of a
marketing plan because it is themarketing plan because it is the
easiest step to do carelessly.easiest step to do carelessly.
 They should be:They should be:
– Key,Key,
– CriticalCritical
– and few in Numberand few in Number
– Consistent with relevant knownConsistent with relevant known
factsfacts
– With defensible assumptionsWith defensible assumptions

36. Examples:Examples:
 Industrial overcapacity will increase fromIndustrial overcapacity will increase from
105 percent to 115 percent as new plants105 percent to 115 percent as new plants
come into operation.come into operation.
 Price competition will force price levelsPrice 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 ours willA new product that competes with ours will
be introduced by our major competitorbe introduced by our major competitor
before the end of the second quarter.before the end of the second quarter.

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 andMarketing Objectives and
StrategiesStrategies

38. Marketing
Mix
Product
Price Promotion
Place
The Marketing MixThe Marketing Mix
Customer
Solution
Customer Cost Communication
Convenience

39. 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

40. The Marketing BudgetThe Marketing Budget
 To justify all marketing expendituresTo justify all marketing expenditures
from a zero base each year againstfrom a zero base each year against
the task that you wish to accomplish.the task that you wish to accomplish.

41. Mission StatementsMission Statements
 It is one of the most difficult aspects ofIt is one of the most difficult aspects of
marketing planning to master, largelymarketing planning to master, largely
because it is philosophical and qualitativebecause it is philosophical and qualitative
in nature.in nature.
 Key points:Key points:
1.1. Role or ContributionRole or Contribution
 ProfitProfit
 ServiceService
 Opportunity seekerOpportunity seeker
2.2. Business definitionBusiness definition
3.3. Core CompetenciesCore Competencies
4.4. Company/Division PositioningCompany/Division Positioning
5.5. Indications for the futureIndications for the future

42. Types of MissionTypes of Mission
StatementsStatements
 MotherhoodMotherhood
It found in annual reports designed toIt 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 theMeaningful Statement/impact on the
behavior of the executives at all levels.behavior of the executives at all levels.
 Purpose StatementPurpose Statement
Lower-Level mission statement/AppropriateLower-Level mission statement/Appropriate
on the strategic business unit, departmentalon the strategic business unit, departmental
or product group level of the organization.or product group level of the organization.

43. Examples ofExamples of
Corporate MissionCorporate Mission
SINGAPORE AIRLINES is engagedSINGAPORE AIRLINES is engaged
in air transportation and relatedin air transportation and related
businesses. It operates world-wide asbusinesses. It operates world-wide as
the flag carrier of the Republic ofthe flag carrier of the Republic of
Singapore, aiming to provide servicesSingapore, aiming to provide services
of the highest quality at reasonableof the highest quality at reasonable
prices for customers and a profit forprices for customers and a profit for
the companythe company

44. Examples ofExamples of
Corporate MissionCorporate Mission
MARRIOTT’S Mission Statement:MARRIOTT’S Mission Statement:
We are committed to being the bestWe are committed to being the best
lodging and food service company inlodging and food service company in
the world, by treating employees inthe world, by treating employees in
ways that create extraordinaryways that create extraordinary
customer service and shareholdercustomer service and shareholder
valuevalue

45. Last WordLast Word
 There is no secret magic or a formula.There is no secret magic or a formula.
 It is more of an age-old adage thatIt is more of an age-old adage that
harder they work, the luckier they get.harder they work, the luckier they get.
 It is not necessary to be a mightyIt is not necessary to be a mighty
corporation to do all this and acorporation to do all this and a
company of any size should be able tocompany of any size should be able to
do so and succeed.do so and succeed.

46. A Goal is a dreamA Goal is a dream
with a deadlinewith a deadline
Zig ZaglarZig Zaglar