MARKETING PLANNING PROCESS

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MARKETING PLANNING PROCESS There are a
number of tools and audits that can be used to
analyse the organisation's internal and external
environment. They include the following SWOT
analysis - For internal and external
analysis PEST - For external analysis Five Forces
Analyses - For external analysis
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MARKETING PLANNING PROCESS SWOT Analysis
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• MARKETING PLANNING PROCESS
• SWOT analysis is a tool for auditing an
• organization and its environment.
• Strengths
• Capabilities?
• Competitive advantages
• Unique selling points
• Resources
• Assets, People
• Experience
• Financial reserves, likely returns
• Marketing - reach, distribution, awareness
• Innovative aspects
• Location and geographical
• Price, value, quality

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• MARKETING PLANNING PROCESS
• Weaknesses
• What could be improved
• What is done badly
• What should be avoided
• Gaps in capabilities
• Lack of competitive strength
• Poor reputation, presence and reach?
• Poor financial background
• Timescales, deadlines and pressures
• Location of your business.
• Poor quality goods or services.

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• MARKETING PLANNING PROCESS
• Opportunity
• Changes in technology and markets on both a broad
  and
• narrow scale
• Changes in government policy related to your
  field
• Changes in social patterns, population profiles,
  lifestyle
• changes, etc.
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer
  improved
• profits.
• A market vacated by an ineffective competitor.

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• MARKETING PLANNING PROCESS
• Threats
• Political and Legislative effects
• Environmental effects
• IT developments
• Competitor intentions
• Market demand
• New technologies, services, ideas
• Sustaining internal capabilities
• Obstacles faced
• Loss of key staff
• Sustainable financial backing
• Bad economy - home, abroad
• Seasonal effects?

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MARKETING PLANNING PROCESS Porters
fives forces model This is an excellent model to
use to analyse a particular environment of an
industry. The Five forces include 1)
Competitive Rivalry2) Power of suppliers3)
Power of buyers4) Threats of substitutes5)
Threat of new entrants
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MARKETING PLANNING PROCESS Supplier
Power Here you assess how easy it is for
suppliers to drive up prices. This is driven by
the number of suppliers of each key input,the
uniqueness of their product or service, their
strength and control over you, the cost of
switching from one to another, and so on. The
fewer the supplier choices you have, and the
more you need suppliers' help, the more powerful
your suppliers are.
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MARKETING PLANNING PROCESS Buyer Power
Here you ask yourself how easy it is for buyers
to drive prices down. Again, this is driven by
the number of buyers, the importance of each
individual buyer to your business, the cost to
them of switching from your products and
services to those of someone else, and so on.
If you deal with few, powerful buyers, they are
often able to dictate terms to you.
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MARKETING PLANNING PROCESS Competitive
Rivalry What is important here is the number
and capability of your competitors if you have
many competitors, and they offer equally
attractive products and services, then youll
most likely have little power in the situation.
If suppliers and buyers dont get a good deal
from you, theyll go elsewhere. On the other
hand, if no-one else can do what you do, then
you can often have tremendous strength.
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MARKETING PLANNING PROCESS Threat of
Substitution This is affected by the ability of
your customers to find a different way of doing
what you do for example, if you supply a
unique software product that automates an
important process, people may substitute by
doing the process manually or by outsourcing it.
If substitution is easy and substitution is
viable, then this weakens your power.
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MARKETING PLANNING PROCESS Threat of New
Entry Power is also affected by the ability of
people to enter your market. If it costs little
in time or money to enter your market and
compete effectively, if there are few economies
of scale in place, or if you have little
protection for your key technologies, then new
competitors can quickly enter your market and
weaken your position. If you have strong and
durable barriers to entry, then you can preserve
a favorable position and take fair advantage of
it
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• MARKETING PLANNING PROCESS
• Marketing strategy
• Marketing strategy is a process that can allow an
  
• organization to concentrate its resources on the
  greatest
• opportunities to increase sales and achieve a
  sustainable
• competitive advantage
• Once the best opportunity to satisfy unfulfilled
  customer
• needs is identified, a strategic plan for
  pursuing the
• opportunity can be developed. The marketing
  strategy the
• involves
• Market segmentation
• Targeting
• Positioning the product within the target market

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MARKETING PLANNING PROCESS Positioning
Strategies There are seven positioning
strategies that can be pursued Product
Attributes What are the specific product
attributes? Benefits What are the benefits to
the customers? Usage Occasions When / how can
the product be used? Users Identify a class of
users. Against a Competitor Positioned directly
against a competitor. Away from a Competitor
Positioned away from competitor. Product
Classes Compared to different classes of
products.
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MARKETING PLANNING PROCESS Michael Porters
Generic Strategies For an organisation to obtain
a sustainable competitive advantage Michael
Porter suggested that they should follow either
one of three generic strategies Strategy one
Cost Leadership. This strategy involves the
organisation aiming to be the lowest cost
producer within their industry. The
orgainisation aims to drive cost down through
all the elements of the production of the
product from sourcing, to labour costs. The cost
leader usually aims at a broad market, so
sufficient sales can cover costs
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MARKETING PLANNING PROCESS Strategy 2
Differentiation To be different, is what
organisations strive for. Having a competitive
advantage which allows the company and its
products ranges to stand out is crucial for their
success. With a differentiation strategy the
organisation aims to focus its effort on
particular segments and charge for the added
differentiated value Strategy 3 Niche
strategies Here the organisation focuses its
effort on one particular segment and becomes
well known for providing products/ services
within the segment. They form a competitive
advantage for this niche market and either
succeed by being a low cost producer or
differentiator within that particular segment.
Examples include Roll Royce and Bentley.
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MARKETING PLANNING PROCESS Focus Strategy Both
cost focus and differentiation focus strategies
are examples of focus strategies, and this page
examines both. A focus strategy is a cost
leadership or differentiation strategy which
does not target the whole market for a product
or service, instead it targets a segment or
limited number of segments of a market. Such a
strategy does not require so many resources as
a broad strategy allows specialisation
lowers the cost of entering new markets for
small firms.
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MARKETING PLANNING PROCESS There are many
approaches to control Market share analysis.
Sales analysis. Quality controls.
Budgets. Ratio analysis. Marketing
research. Marketing information systems
(MkIS). Cash flow statements.
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MARKETING PLANNING PROCESS Marketing
Information System A marketing information system
is a continuing and interacting structure of
people, equipment and procedures to gather,
sort, analyse, evaluate, and distribute
pertinent, timely and accurate information for
use by marketing decision makers to improve
their marketing planning, implementation, and
control.
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