business / marketing minor marketing fundamentals m21439 session 2: marketing planning &...
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Business / Marketing Minor
Marketing FundamentalsM21439
Session 2:
Marketing Planning & Auditing
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Key Concepts
• Definition of marketing planning
• Contents of a marketing plan
• Definition of a marketing audit
• Dimensions of a marketing audit
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Definition of a Marketing Planning
“Marketing planning can be defined as the
planned application of marketing resources to
achieve marketing objectives.”
McDonald,M. (1999)
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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, UK:Butterworth Heinemann, p.31
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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.
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Question:
Do all organisations formally plan their marketing activities?
If not, why not?
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Start of Marketing Planning
Marketing planning should start with an
analysis of the potential market.
Porter’s 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, Harlow:Prentice Hall, p.404
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Porter (1985) Five Competitive Forces That Determine Industry Profitability Model
POTENTIALENTRANTS
BUYERS
SUBSTITUTES
SUPPLIERS
INDUSTRY COMPETITORS
Threat of new entrants
Bargaining power of buyers
ThreatOf substituteProducts orservices
Bargaining power of suppliers
Rivalry among existing firms
Source: Porter, M.E. (1985) Competitive Advantage: Sustaining and Creating Superior Performance New York:Free Press p.5
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Evolution of Strategy & Management SystemsCharacteristics Financial
PlanningLong 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, Harlow:Prentice Hall, p.97
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Question:
Why do you think organisations have changed their strategy &
management systems?
Do you know of any organisational examples?
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Factors Influencing Company Marketing Strategy
Targetcustomers
Place Product
Promotion Price
Marketing planning system
Marketing organisation andimplementation
Mar
ketin
g co
ntro
l sys
tem
Marketing information system
Competitors Publics
Marketing intermediaries
Suppliers
Political/LegalEnvironment
Demographic / Economic Environment
Technological /PhysicalEnvironment
Social / Cultural Environment
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.88.
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The marketing planning cycle
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
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Contents of a Marketing Plan1. Executive Summary &
Table of ContentsPresents 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 plan’s 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 plan’s objectives.
6. Action Programs Presents the special marketing programs designed to achieve the business objectives.
7. Projected Profit-&-Loss Statement
Forecasts the plan’s expected financial outcomes.
8. Controls Indicates how the plan will be monitored.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.89.
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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, USA:Houghton Mifflin,p.696
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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, USA:Houghton Mifflin, p.696
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Question:
How long should it take to devise a marketing plan?
… is there a right answer?
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Marketing Audit
“A 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.”
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
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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, Canada:Thomson South Western, p.44
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Question:
How does a marketing plan differ from a marketing audit – do you
need both?
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Dimensions of a Marketing AuditPART 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, USA:Houghton Mifflin, pp.710-712
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Part 1: Marketing Environment Forces
a. Economic
b. Technological
c. Political/Legal/Regulatory
d. Societal/Green
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.710
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Part 1: Task Environment
a. Markets
b. Customers
c. Competitors
d. Distribution & Dealers
e. Suppliers
f. Facilitators & Marketing Organisations
g. Publics
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.710
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Part 2: Marketing Strategy Audit
a. Business Mission
b. Marketing Objectives & Goals
c. Strategy
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.711
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Part 3: Marketing Organisation Audit
a. Formal Structure
b. Functional Efficiency
c. Interface Efficiency
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.711
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Part 4: Marketing Systems Audit
a. Marketing Information System
b. Marketing Planning System
c. Marketing Control System
d. New Product Development System
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.711
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Part 5: Marketing Productivity Audit
a. Profitability Analysis
b. Cost Effective Analysis
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.712
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Part 6: Marketing Function Audit
a. Products and Services
b. Price
c. Distribution
d. Promotional Mix
e. Salesforce
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed, USA:Houghton Mifflin, p.712
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Marketing Audit – Four Characteristics
1. Comprehensive
2. Systematic
3. Independent
4. Periodic
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
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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, USA:Prentice Hall International, p.708.
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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, USA:Prentice Hall International, p.708.
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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, USA:Prentice Hall International, p.708.
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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, USA:Prentice Hall International, p.709.
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Question:
One of assessments asks you to undertake a marketing audit – how
will you go about it?
What organisational information can you access?