Business / Marketing Minor

1
Business / Marketing Minor

• Marketing Fundamentals
• M21439
• Session 2
• Marketing Planning Auditing

2
Key Concepts

• Definition of marketing planning
• Contents of a marketing plan
• Definition of a marketing audit
• Dimensions of a marketing audit

3
Definition of a Marketing Planning

• Marketing planning can be defined as the
  planned application of marketing resources to
  achieve marketing objectives.
• McDonald,M. (1999)

4
Strategic Marketing Plan

• A strategic marketing plan is a plan which
  covers a period beyond the next fiscal year.
  Usually this is for between three and five years.

Source McDonald,M.(1999) Marketing Plans 4th ed,
UKButterworth Heinemann, p.31
5
Tactical Marketing Plan

• A tactical marketing plan covers in quite a lot
  of detail the actions to be taken, by whom,
  during a short term planning period.
• This is usually for one year or less.

6
QuestionDo all organisations formally plan
their marketing activities?If not, why not?
7
Start of Marketing Planning

• Marketing planning should start with an analysis
  of the potential market.
• Porters Five Forces (1985) model provides a
  useful tool for analysing the overall
  attractiveness of the market.

Source Doyle,P.(2002) Marketing Management and
Strategy 3rd ed, HarlowPrentice Hall, p.404
8
Porter (1985) Five Competitive Forces That
Determine Industry Profitability Model
POTENTIAL ENTRANTS
Threat of new entrants
Bargaining power of suppliers
INDUSTRY COMPETITORS
BUYERS
SUPPLIERS
Bargaining power of buyers
Rivalry among existing firms
Threat Of substitute Products or services
SUBSTITUTES
Source Porter, M.E. (1985) Competitive
Advantage Sustaining and Creating Superior
Performance New YorkFree Press p.5
9
Evolution of Strategy Management Systems
Characteristics Financial Planning Long Range Planning Strategic Planning Strategic Market Management
Management Focus Budgets and control Anticipate market growth Respond to environmental changes Capitalise on strategic windows
Assumptions Long-run stability Past trends to continue New trends and discontinues are predictable Many changes will be sudden and unpredictable
Objective Meet the budget Predict the future Think strategically Create opportunities through change
Planning Process Annual 5 years, annual revisions Annual revisions Real time
When Popular Until late 1950s 1960s 1970s After 1980s
Source Doyle,P.(2002) Marketing Management and
Strategy 3rd ed, HarlowPrentice Hall, p.97
10
QuestionWhy do you think organisations have
changed their strategy management systems?Do
you know of any organisational examples?
11
Factors Influencing Company Marketing Strategy
Demographic / Economic Environment
Marketing intermediaries
Suppliers
Marketing information system
Technological / Physical Environment
Place
Product
Political/ Legal Environment
Target customers
Marketing planning system
Marketing control system
Promotion
Price
Marketing organisation and implementation
Competitors
Publics
Social / Cultural Environment
Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.88.
12
The marketing planning cycle
Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin
13
Contents of a Marketing Plan
1. Executive Summary Table of Contents Presents a brief overview of the proposed plan.
2. Current Marketing Situation Presents relevant background data on sales, costs, profits, the market, competitors, distribution and the macroenvironment.
3. Opportunity Issue Analysis Identifies the main opportunities/threats, strengths/weaknesses and issues facing the product line.
4. Objectives Defines the plans financial and marketing goals in terms of sales volume, market share and profit.
5. Marketing Strategy Presents the broad marketing approach that will be used to achieve the plans objectives.
6. Action Programs Presents the special marketing programs designed to achieve the business objectives.
7. Projected Profit--Loss Statement Forecasts the plans expected financial outcomes.
8. Controls Indicates how the plan will be monitored.
Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.89.
14
The Marketing Plan

• 1. Management or Executive Summary
• 2. Marketing Objectives
• 3. Product/Market Background
• 4. Marketing Analysis
• 5. Marketing Strategies
• 6. Statement of Expected Sales Forecasts
  Results

Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin,p.696
15
The Marketing Plan cont.

• 7. Marketing Programmes for Implementation
• 8. Control Evaluation Monitoring of
  Performance
• 9. Financial Implications/Required Budget
• 10. Operational Considerations
• 11. Appendices

Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin, p.696
16
QuestionHow long should it take to devise a
marketing plan? is there a right answer?
17
Marketing Audit

• A marketing audit is a comprehensive,
  systematic, independent and periodic examination
  of a companys or business units marketing
  environment, objectives, strategies and
  activities with a view to determining problem
  areas and opportunities and recommending a plan
  of action to improve the companys marketing
  performance.

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.708.
18
Marketing Audit

• The broadest control advice of the marketing
  plan is the marketing audit a thorough,
  systematic, periodic evaluation of the goals,
  strategies, structure and performance of the
  marketing organisation.

Source Lamb,C.W.,Hair.J.F. McDaniel,C.(2003)
Marketing 7th ed, CanadaThomson South Western,
p.44
19
QuestionHow does a marketing plan differ from
a marketing audit do you need both?
20
Dimensions of a Marketing Audit
PART 1 - Marketing Environment Forces - Task Environment
PART 2 - Marketing Strategy Audit
PART 3 - Marketing Organisation Audit
PART 4 - Marketing Systems Audit
PART 5 - Marketing Productivity Audit
PART 6 - Marketing Function Audit
Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, pp.710-712
21
Part 1 Marketing Environment Forces

1. Economic
2. Technological
3. Political/Legal/Regulatory
4. Societal/Green

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.710
22
Part 1 Task Environment

1. Markets
2. Customers
3. Competitors
4. Distribution Dealers
5. Suppliers
6. Facilitators Marketing Organisations
7. Publics

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.710
23
Part 2 Marketing Strategy Audit

1. Business Mission
2. Marketing Objectives Goals
3. Strategy

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.711
24
Part 3 Marketing Organisation Audit

1. Formal Structure
2. Functional Efficiency
3. Interface Efficiency

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.711
25
Part 4 Marketing Systems Audit

1. Marketing Information System
2. Marketing Planning System
3. Marketing Control System
4. New Product Development System

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.711
26
Part 5 Marketing Productivity Audit

1. Profitability Analysis
2. Cost Effective Analysis

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.712
27
Part 6 Marketing Function Audit

1. Products and Services
2. Price
3. Distribution
4. Promotional Mix
5. Salesforce

Source Dibb.S, Simkin.L, Pride.W.M.
Ferrel.O.C. (2001) Marketing Concepts and
Strategies 4th European ed, USAHoughton
Mifflin, p.712
28
Marketing Audit Four Characteristics

• Comprehensive
• Systematic
• 3. Independent
• 4. Periodic

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.708.
29
Marketing Audit - Comprehensive

• Covers all of the major marketing activities of
  a business not just a few trouble spots.

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.708.
30
Marketing Audit - Systematic

• Orderly examination of the macro micro
  environments, mkting objectives strategies,
  mkting systems and specific activities.

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.708.
31
Marketing Audit - Independent

• Can be conducted in six ways
• 1. Self-audit
• 2. Audit from across
• 3. Audit from above
• 4. Company auditing office
• 5. Company task force
• 6. Outsider

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.708.
32
Marketing Audit - Periodic

• Typically only initiated after sales have turned
  down but can prevent companies from being thrown
  into crisis.
• Companies should conduct a marketing audit
  periodically.

Source Kotler,P.(2000) Marketing Management
Millennium edition, USAPrentice Hall
International, p.709.
33
QuestionOne of assessments asks you to
undertake a marketing audit how will you go
about it?What organisational information can
you access?