Marketing Plan Final

Chapter 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 Formulating basic assumptions Setting objectives for what is being sold and to whom Deciding how the objectives are to be achieved Scheduling and costing out the actions necessary for implementation 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 Profit Optimization Cost Return on investment We should manage: Application of Marketing Plan To help identify sources of competitive advantage To force an organized approach To develop specificity To ensure consistent relationships To inform everyone in the organization about priorities To obtain resources needed to implement plans To engage organizational support at all levels, form the bottom to the top of the organization To set objectives and strategies To gain commitment towards goals SWOT Analysis External Opportunities Threats Strengths SO ST Weakness WO WT Internal Corporate Planning Step 1: Corporate Financial Objective Targeted Growth in Sales and earnings Step 2: Manageme nt Audit Marketing Distribution Manufacturi ng Financial Personnel Step 3: Objective and Strategy Setting Marketing Distribution Manufacturi ng Financial Personnel Step 4: Plans Step 5: Corporate Plans Marketing Issue: corporate objectives and strategies Marketing “ Distribution Manufacturi ng Financial Personnel … Elements of Corporate Plan The desire level of profitability 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) Other corporate objectives • Social Responsibility and corporate • Stock-market • Employer image • • Assumptions This is one of the most critical steps in the preparation of a marketing plan because it is the easiest step to 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: Ansoff’s Product/Market Expansion Grid Existing Products New Products Existing Markets Market Penetration Product Development New Markets Market Development 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: Role or Contribution Profit  Service Opportunity seeker   Business definition Core Competencies Company/Division Positioning 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 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 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 all this and a company of any size should be able to so and succeed A Goal is a dream with a deadline Zig Zaglar [...]... Management Middle Management Operations 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 Marketing Planning Process A strategic marketing plan should contain the following: 1 Executive... the initial analysis 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 Threats Strengths SO ST Weakness WO WT Internal Corporate Planning Step 1: Corporate... 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... to planning on the part of local managers 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 Marketing. .. 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 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... Step 2: Manageme nt Audit Marketing Distribution Manufacturi ng Financial Personnel Step 3: Objective and Strategy Setting Marketing Distribution Manufacturi ng Financial Personnel Step 4: Plans Step 5: Corporate Plans Marketing Issue: corporate objectives and strategies Marketing “ Distribution Manufacturi ng Financial Personnel … Elements of Corporate Plan The desire level of profitability... 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... 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... 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... 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