Developing the Marketing Developing the Marketing PlanPlan

Maxwell Ranasinghe- Sri LankaMaxwell Ranasinghe- Sri LankaB.Sc. ( Business Administration) Hons. B.Sc. ( Business Administration) Hons.

Attorney at Law, CPM ( New Haven- Attorney at Law, CPM ( New Haven- USA) MSLIM , MAATUSA) MSLIM , MAAT

Contact: maxran1@yahoo.comContact: maxran1@yahoo.com

• Management is “a set of activities including planning and decision making, leading and controlling directed at organisation’s resources: human, financial, physical and information, with the aim of achieving organisational goals in an efficient and effective manner “– ( R.W. Griffin -2005)

• Of the five management functions — planning, organizing, staffing, leading and controlling , planning is the most fundamental.

• All other functions stem from planning. Therefore planning is a major component of management.

• However, planning doesn't always get the attention that it deserves.

•  

• A goal is a desired future state that the organization attempts to realize in a given environment.

• A plan is a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions.

• Goals specify future ends; plans specify today's means of achieving them.

Purpose of a Marketing Plan Purpose of a Marketing Plan “ Goals and plans” “ Goals and plans”

The word planning in context of management, incorporates determining the organization's goals and defining the means for achieving them. It is said that if you “fail to plan you are planning to fail”

Therefore, planning is an essential strategic activity and it is an intrinsic part of efficient and effective management.

When it relates to marketing, purpose of planning is to achieve marketing goals in an efficient and effective manner.

 

There are many types of plans in organizations. Strategic Corporate Plans addresses the entire organization, it emanates from the corporate vision of a firm, Then comes the Business Unit Plans which addresses the requirements of specific business units.

There are other functional plans such as operations, logistics, HR, Financial, Production and Marketing which are supporting to achieve the broader objectives of the corporate plans.

These plans are internal and they are not divulged to others. Our subject matter here is “Marketing Planning” and therefore we would deal it in detail

The Connection of the Marketing The Connection of the Marketing Plan with a Corporate planPlan with a Corporate plan

  

A Marketing Plan is a blue print that elaborates a systematic, inter connected, logical step by step processes for achieving marketing goals.

It analyses the internal and external environment, markets, competitors, specifies the marketing objectives, necessary strategies, tactics, resource allocations, schedules, tasks, and embeds the controls and other actions required in connection with attaining marketing goals in an efficient and effective manner.

It specifies what should be done today to achieve goals ahead and it is the marketer’s road map for desired destination.

What really is marketing planningWhat really is marketing planning

Hiebing and Cooper( 2003) succinctly sates that a marketing plan should be a disciplined, target market driven, interlocking ( not just integrated) and comprehensive plan in order to make it a successful tool in the process of achieving marketing goals.

Therefore, it has to be a comprehensive plan that gives importance to each and every element of a plan.

Nothing is taken for granted and nothing or very little is left for chance. Thus they call the marketing plan as “ Disciplined Marketing Plan” and lists important steps to follow in the process of marketing planning.

Understanding the Essential Steps Understanding the Essential Steps of a Marketing Planof a Marketing Plan

Generic Marketing planning Generic Marketing planning processprocess

• The corporate objectives should be in line with the vision and mission of the company.

• The marketing plan stems from the corporate objectives

• Marketing plan is a tool to achieve corporate objectives

• Marketing plan has a cyclic character.

Marketing planning processMarketing planning process

Where areWe now

Where do We want to go

How do we Get there

How do weEnsureArrival

Did we get there

Situational AnalysisSituational Analysis

• Where we are now? ( Also known as Situational Analysis and Marketing Audit)

• Internal Analysis( Internal Audit)

• Environmental Analysis( External Audit)– PESTEEL Analysis– Competitor Analysis– Market Analysis

• SWOT Analysis

Situational Analysis cont…Situational Analysis cont…

• Before anything is planned, firm needs to understand where it stands now in relation to its internal and external environment

• Internal environment ( strengths & weaknesses)– Financial– Managerial– Marketing– Production– Human Resources– Information Technology

Situational Analysis cont…Situational Analysis cont…

• External Environment ( Threats and Opportunities)

– Comprehensive PESTEEL analysis • Political, Economical, Social and Cultural,

Technological, Environmental, Ethical and Legal aspects has to be analysed in relation to the industry , market and the product

– Comparative Analysis of Competitors – major competitors their market standing , reputation, brands, profitability

etc.

– Their strategies as to product, pricing, distribution, promotion,

– Trade practices and associations etc

– Michael Porters Five Force Competitive Model also should be analysed to find out the attractiveness of the industry

• Market Analysis- (Customers/ Demand)– Market size, different segments, growth,

trends. Future market and demand– Customer preferences, attitudes and buyer

behavior, needs and wants, decision making units and the process, disposable income etc.

SWOTSWOT

• It is a good snap shot of the firm

• SWOT Analysis is taken from the Internal and External Analysis.

• Strengths (Firm need to Consolidate)

• Weaknesses ( Firm need to Minimize)

• Opportunities( Firm need to Exploit)

• Threats ( Firm need to Overcome)

Sales and Marketing Objectives Sales and Marketing Objectives ( Where do we want to be? )( Where do we want to be? )

• SWOT will enable the marketer to determine the overall objectives.

• Objectives will gives a clear sense of direction ( where we should go)

• Objectives will help to stimulate effort of individuals to achieve targets because it gives direction and focus

• Objectives will provide the basis for control in an organisation. Unless we know precisely what is required, it is difficult to know the extent to which we have achieved.

• Objectives should be SMART• Specific-What need of the market that the company

is going to serve. Sales targets- Sales volume, units, share of the market to catch etc.

• Measurable- Quantified eg. 50 million, 25% of the market share etc

• Achievable – It should be realistic• Relevant – It should be in line with the corporate

objecctive• Time frame- deadlines and periods for achieving

objectives should be stated. Within 6 months etc.

Sales ObjectivesSales Objectives• Proper sales forecast has to be made

before sales objectives are made. There are many methods available to forecast sales. Eg. Sales Composite method, Jury method, exponential smoothing, moving average other mathematical methods etc.

• E.g. Sales objective of a firm of branded luxury clothing could be “To increase sales by 10% from Rs. 500 million within twelve months ”

• Sales objectives lead to set marketing objectives.

It describes the expected behavior of the target market ( customers) required to reach sales objectives. One could even use the Ansoffs Matrix to develop marketing objectives to grow sales.

• It could be retention of current customers• It could be increasing purchases of current

customers• It could be trail purchases from new customers• It could be repeat purchases from new customers• It could even be blocking competition, developing a

new market.

Marketing ObjectivesMarketing Objectives

• Setting marketing objectives are important since they often shed light on underlying conditions and circumstances facing the firm that are not easily seen within financial measures

• The marketing objectives will indicate targets to be achieved across several marketing decision areas.

• A marketing strategy entails how an individual marketing objective will be reached.

• While the Sales and marketing objectives are SMART, marketing strategies are descriptive. They go into detail how objectives are achieved.

 

Marketing Strategies:Marketing Strategies:

Overall Marketing StrategiesOverall Marketing Strategies( How might we get there)( How might we get there)

• 1.Target Marketing Strategies

• 2. Marketing Mix Strategies

Target Marketing StrategiesTarget Marketing Strategies

• Refer to the market segments identified

• Select the segment/segments to be served

• Position your product in the targeted segment/segments

33.. Marketing Mix Strategy Marketing Mix Strategy

• Once the STP strategy is completed marketer will proceed to develop the marketing Mix strategies appropriate for the positioning and target markets selected.

Marketing Mix StrategiesMarketing Mix Strategies

• Product – Product Strategy, Brand name, Description, Packaging)

• Price- Pricing strategy, Cost and Prices of different products, prices for distributors, final price for consumers,

• Distribution- Distribution strategy, Distribution methods, Distribution Channels, Channel motivators, return policy, Channel support etc.

• Promotion- Promotion Strategy, Promotion methods, Media Channel selection, Media Plan, Media Schedules, Publicity Programs, Public relations, press conference, Press articles,

• Sales Promotions, Cost analysis,

• e. Physical evidence- Buildings, Interior décor, visiting cards, letter heads, music, technology in office and factory

• f. Process- order placing, order taking,, quality controls, packing process, storing of materials and finished products distribution etc.

• g. People- Dress, Courtesy, Personal Selling, Physical appearance, Compliant handling,

Action Plans, Key Performance Action Plans, Key Performance Indicators and BudgetingIndicators and Budgeting

• Action Plans– Who does what and when

Activity responsibility

Budget Jan Feb March

Market analysis

max 20000 xx

New adds

Nimal 30000 xx

New Brand name

Jagath 40000 xxx XXX

Forecasting income and Forecasting income and expenditureexpenditure

• Break up the overall sales income set at the objectives stage and other expenses and activities planned into different months or quarters

• The breakup should be based on the expectations of the effect of the strategies to be used

• This is needed to monitor and control the marketing plan

BUDGETSBUDGETSDifferent budgetary allocations to be made on different headings of Different budgetary allocations to be made on different headings of

expenses that would incur in the process of achieving forecasted sales expenses that would incur in the process of achieving forecasted sales and other objectivesand other objectives

Description Quarter 1 Quarter 2 Quarter 3

Sales Units

Sales amount

Less-

Manufacturing cost

Less-

Administrative Cost

Distribution Cost

Financial Cost

Other Cost

Net Profit

Tax

ROI

Pay back period

Break Even point

Marketing Control ProcessMarketing Control Process( How do we ensure arrival)( How do we ensure arrival)

Marketing controls are important to ensure that the set marketing plans are carried out as planned.

• Set Key Performance indicators ( this could be obtained by analysing Action Plans and budgets)

• Collect information from actual performances• Compare with the key performance indicators• Detect any deviations • Take corrective actions

(Action should be Proactive rather than reactive)

Marketing Control ProcessMarketing Control Process

Marketing plan •Objectives•Strategies

•Action plans

Set Performance indicators

Collect Performance details

Compare performancesDeviation

Nocontinue

yesCorrectiveaction

Support your plan with Appendixes and Support your plan with Appendixes and referencesreferences

• Research Findings• Sources and reference of books,

newspapers, magazines, persons where information is taken.

• Price Lists of raw material prices, estimates, quotations

• Media rate cards• Any other supporting documents to prove

your estimates and claims.