Marketing Plan

1
Marketing Plan
2
Objectives

• Marketing planning
• Tactical and Strategic Marketing Plans
• Marketing planning process
• Marketing audits
• Corporate Planning
• Assumptions
• Marketing Objectives
• Marketing Strategy
• Marketing Program
• Mission statements

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

4
Marketing Planning
Market Needs
Strengths of organization
Wants
Weakness of organization
Existing competitors
Expected competitors
Design for creating value
5
Marketing Planning Process

• Definition
• The application of marketing resources to achieve
  marketing objectives.

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
Developa 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

8
Essential of Marketing Planning

• We need marketing planning when hostiles
  increased and environment is complex.

9
Our Challenge

• We should manage

Optimization
Cost
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

1. Differentiation
2. Insight
3. Vision
4. Defines the business we are in
5. Defines the business we are becoming
6. Value
7. Tradeoffs
8. Objectives and goals
9. 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
• A business definition that specifies the area in
  which the business will compete.
• A strategic thrust that describes where
  competitive advantage is to be gained.
• 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.

17
Tactically Oriented Company
Board
Strategic Orientation
Senior Management
Middle Management
Tactical Orientation
Operations
18
Strategic Oriented Company
Board
Senior Management
Strategic Orientation
Middle Management
Tactical Orientation
Operations
19
Rules of Marketing Planning

• Develop the strategic marketing plan.
• Scanning the external environment
• Identifying early on the effect this may have on
  the company
• 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
• Executive summary
• Mission Statement
• Financial Summary of revenue, expenses and
  earnings
• Marketing audit
• SWOT analysis
• Assumption of key determinants
• Overall marketing objectives and strategies
• Expected results
• Alternatives (contingency plan)
• Budget

21
Stages of Marketing Plan
1. Mission
Phase one -Goal Setting
2. Corporate objectives
3. Marketing audit
Phase Two Situation Review
4.SWOT analysis
5. Assumptions
6. Marketing objective and strategies
Phase Three-Strategy Formulation
7. Estimate expected result
8. Identity alternative plans and mixes
Phase Four-Resources allocation and
monitoring
9. Budget
Measurement and review
10. First year detailed implementation program
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
  companysor business unitsmarketing
  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 Philip Kotler

24
Marketing Audit II

• Goal
• To see how well the firm is applying the
  marketing concepts
• Examine external and internal information and
  procedures
• 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

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
   companys 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

32
SWOT Analysis
External
Opportunities
Threats
Internal
Strengths
ST
SO
Weakness
WT
WO
33
Corporate Planning
Step 5 Corporate Plans Step 4 Plans Step 3 Objective and Strategy Setting Step 2 Management Audit Step 1 Corporate Financial Objective
Issue corporate objectives and strategies Marketing Marketing Distribution Manufacturing Financial Personnel Marketing Distribution Manufacturing Financial Personnel Marketing Distribution Manufacturing Financial Personnel Targeted Growth in Sales and earnings
34
Elements ofCorporate 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

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.

37
Marketing Objectives and Strategies
Three Intensive Growth Strategies Ansoffs
Product/Market Expansion Grid
Existing Products
New Products

• Market
• Penetration

• Product
• Development

Existing Markets
4. Diversification

• Market
• Development

New Markets
38
The Marketing Mix
Marketing Mix
Convenience
Customer Solution
Customer Cost
Communication
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
• Role or Contribution
• Profit
• Service
• Opportunity seeker
• Business definition
• Core Competencies
• Company/Division Positioning
• 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 ofCorporate 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

• MARRIOTTS 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.

46
A Goal is a dream with a deadline

• Zig Zaglar