marketing planning (msk)
TRANSCRIPT
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MARKETING PLANNING
MARKETING SOCIETY OF KENYA
BYB.W.MAINA
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DEFINITION OF PLANNING
The process of setting objectives and
determining the means for achieving them.
Planning involves decisions on:
What to do in the future - Objectives
How to do it - Strategy
When to do it - Tactics Who is to do it - Tactics
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PLANNING PROCESS
• To decide objectives for the organization.
• To identify alternative ways of achieving
them.• To select the best course of action for the
organization as a whole and also for
individuals, departments and sectionswithin it.
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ON IMPORTANCE OF PLANNING
If you do not know where you are going
any road will take you there.
There are three kinds of people:Those who make things happen;
Those who watch things happen; and
Those who wonder what happened.
Q: Which road should l take? A: That depends on where you are going.
- Alice in Wonderland
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PURPOSE OF PLANNING
• To give direction to future operations.
• To make a conscious effort to influence the
future.
• To reduce future uncertainty and risk.• To enhance organizational success.
• To optimize resource utilization.
• To prevent the organization from straying.
• To provide focus to the organization.• To ensure consistency inaction and
expenditures.
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STRATEGIC AND OPERATIONAL/
TACTICAL PLANNING
Strategic Planning:• Sets or changes the basic objectives and strategies of
an organization.
• Provides guidance and direction to organizational
activities.
Operational/Tactical planning:• Concerned with decisions about the efficient and
effective use of an organization‟s resources.
• Defines tasks and activities to be undertaken in order to achieve the desired objectives.
• Considers timing and responsibilities for action requiredto achieve the objectives.
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CORPORATE PLANNING
• Involves the whole organization and isundertaken at the corporate level.
• It is a comprehensive future-oriented
process.• It is concerned with both strategic and
operational planning.
• It incorporates monitoring and controlmechanisms.
• It can be either short- or long-term.
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LEVELS OF STRATEGY
Corporate Strategies:• Concerned with the type of business the organization is
in or wants to be in.
• Consider how to enter or exit the industry.
Business Strategies:• Formulate strategies for strategic business units (SBUs).
• Consider how an organization approaches a particular product-market area.
Operational/Tactical Strategies:
• Involve devising strategies for functional areas.• Could cover marketing, production, finance, HRM, R&D
etc.
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MARKETING PLANNING
A systematic process that involves:
Assessing marketing opportunities and resources,
Determining marketing objectives, and
Developing a thorough plan for implementation andcontrol.
The marketing planning process entails:
Analysis of the market place,
Developing or modifying the recommended marketing
strategy accordingly, and Developing detailed marketing mix programmes
designed to implement the specified marketing strategy.
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MARKETING PLAN
• A document or blueprint that details
requirements for a company‟s marketing
activity.• The marketing plan governs all of a
business‟s marketing activities, including
implementation and control of thoseactivities,
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PURPOSES OF MARKETING
PLAN• Offers a „road map‟ for implementing a company‟s
strategies and achieving its objectives.
• Assists in control and monitoring of implementationstrategy.
• Informs all parties of their role and function.• Specifies how resources are to be allocated.
• Stimulates thinking and makes better use of resources.
• Assigns responsibilities, tasks and timing.
• Makes participants aware of problems, opportunities and
threats.• Assists in ensuring the organization is customer-focused,
aware of market and competitive movements, realistic inexpectations, and prudent in its use of resources.
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STRATEGIC MARKETING
PLANNING
• Focuses on the direction which an
organization will take in relation to a
specific market or set of markets, in order
to achieve a specified set of objectives.
• Focuses mainly on market segmentation,targeting and positioning.
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OPERATIONAL MARKETINGPLANNING
• Defines the tasks and activities to be
undertaken in order to achieve the desired
strategy.
• Focuses on development of specific
product features, prices, promotion anddistribution systems (4Ps)
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PLANNING PROCESS
• There is no ideal marketing plan for all
organizations since every planning
situation is unique.
• Hence there is no universal way of
establishing a marketing plan.
• However, some logical steps may be
followed in the planning process as
explained below.
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STAGES IN PLANNING
PROCESS1. Development of organization‟s mission statement
2. Development of objectives
3. Internal analysis
4. External analysis
5. SWOT analysis
6. Strategy formulation
7. Specific plans
8. Implementation
9. Control
10. Evaluation
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MISSION STATEMENT
• A prerequisite to the determination of
marketing plans is the definition of the
overall corporate mission.
• This is usually done by senior
management who seek to answer thequestions indicated below.
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MISSION STATEMENT DEFINED
• Mission refers to the basic function that
an organization performs for its existence
• It indicates the organization‟s purpose or reason for existence i.e. what it wants
to accomplish by its existence.
• It provides the organization with focus anddirection.
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MISSION STATEMENT:
QUESTIONS TO ASK In formulating a mission statement top
management seek answers to the followingquestions:
• What is our business and what should it be?
• Who are our customers?
• Exactly what do we provide them with?
• What is our distinctive competence or comparative advantage?
The answers to these questions help theorganization develop a distinctive character
or personality.
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CHARACTERISTICS OF GOOD
MISSION STATEMENT• It should be clear and formally written.
• It should be visionary and offer clear guidelines tomanagement when considering the direction of businessdevelopment.
• The definition should be in terms of whatcustomer needs are being served rather than the productor services being produced.
• It should not be too broad or too narrow to avoid
losing focus or underestimating competition• It should be realistic and motivating.
• It should be based on the firm‟s distinctive competences
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OBJECTIVES
• Objectives are the specific goals to be achievedwithin a specified period of time.
• They specify the expected results and are the
concrete ends to which activity is aimed.• Objectives can be formulated at corporate anddepartmental level.
• Corporate objectives define goals for the
organization as a whole.• Departmental objectives specify goals for
departments e.g. marketing objectives.
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CHARACTERISTICS OF GOODOBJECTIVES
Good objectives should be „SMART‟ - an
acronym for:
• Specific – clear and precisely stated i.e. not
vague• Measurable – indicated in quantitative terms for
ease of verification.
• Achievable – attainable with available resources.
• Realistic – reasonable but challenging.• Time-defined – time-bound i.e. indicate when
they will be achieved.
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MARKETING OBJECTIVES • A statement of what is to be accomplished through
marketing activities.
• Specifies the results expected from marketing efforts.
• They should expressed in clear, simple terms so that all
marketing personnel understand exactly what they aretrying to achieve
• They should be measurable with accuracy to be able
to verify accomplishment.
• They should indicate time frame for accomplishing the
objective.• They should be consistent with corporate objectives• They should be challenging to the marketing staff.
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STATEMENT OF MARKETING
OBJECTIVESMarketing objectives could be stated in
terms of:
• Product introduction or innovation.
• Sales volume or value.
• Profitability per unit.
• Gains in market share for particular products
• Customer base target
• Improvements in customer satisfaction.
• Awareness of company‟s products.
Example: To increase the company‟s market share
of product X by 15% in the forthcoming year.
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INTERNAL ANALYSIS
• The company should undertake internal analysis
of its resources, assets, performance and
capabilities to establish its current condition.
• This analysis constitutes a self-examination,
self-assessment or self-appraisal.
• It reveals the company‟s strengths and
weaknesses in areas which are within thecompany‟s control.
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STRENGTHS AND WEAKNESSES • Strength – a particular skill or distinctive competence
which the organization possesses and which will aid it inachieving stated objectives. E.g. experience in specificmarkets, skills possessed by employees, good image
customer service.• Weakness – any aspect of the company which may
hinder the achievement of specific objectives e.g. lack of experience in certain markets, lack of financialresources.
• Distinctive competence – anything that a firm can dorelatively better than its competitors.
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INTERNAL ANALYSISCOVERAGE
Internal analysis may cover the following areas:• Human resources – available skills, sales force performance
competences, experience, motivation levels
• Management – style, competences, support, values,
• Materials – supply sources, availability, reliability, quality, prices
• Production facilities – machine condition, age, capacity, efficiency• Organization – structure and suitability
• Financial condition – liquidity, availability of funds, profitability
• Products – acceptance, quality, availability, profitability, image
• Marketing – consider the 4Ps, market shares and sizes, portfolio
• Management information systems (MIS)
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PEOPLE • Because services are provided by people, the
selection, training and motivation of employees
can make a huge difference in customer
satisfaction.• Ideally employees should exhibit competence, a
caring attitude, responsiveness, initiative,
problem-solving ability and goodwill.
• Service personnel should also be properly
empowered.
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PHYSICAL EVIDENCE • Companies try to demonstrate their service
quality through physical evidence andpresentation.
• This could consist of appearance of service
personnel, appearance of facilities, and tools or equipment used to provide service.
• A hotel, for instance, will develop a look andobservable style of dealing with customers that
carries out its intended customer valueproposition, whether it is cleanliness, speed, or some other benefit.
• A doctor will be clean, well-dressed and withproper equipment for medical examination
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PROCESS • Service companies can choose among
different processes to deliver their service.
• Restaurants have, for instance, developed
such different formats as cafeteria-type,fast food buffet and candle-light service.
• In delivering lectures overhead or LCD
projectors, white boards, chalk boards or flip charts could be used.
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SERVICE ENCOUNTERS • Service marketing requires not only
external marketing but also internal and
interactive marketing
• This is the case for instance with cleaning
and maintenance services, financial and
banking services, and restaurant industry.
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INTERNAL MARKETING • This describes the work done to train and
motivate employees to serve customers
well.• All organization‟s employees should
practice marketing including treating their
internal customers properly.
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EXTERNAL MARKETING
This describes the normal work done by theOrganization to prepare, price, distribute,
And promote the service to customers.
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INTERACTIVE MARKETING • This describes the employees‟ skills in serving the client. • The perceived quality of a service depends heavily on
the buyer-seller interaction during the service encounter.
• The service quality depends on both the service
deliverer and the quality of the delivery.• The client judges the service quality by its technical quality e.g. Was the surgery successful? and also by itsfunctional quality e.g. Did the surgeon show concern and
inspire confidence?
• Service providers must therefore deliver “high touch ” as well as “high tech ”.
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DEALING WITH COMPETITION With the rise in competition, service
companies need to increase their
competitive differentiation, quality andproductivity.
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MANAGING DIFFERENTIATION • Intense price competition in service industry has
made it necessary for service marketers todifferentiate their services from competition.
• While price competition is still important as
evidenced, for instance, by the success of budget-priced airlines where many fliers appear to care more about travel costs than service, or where incomes are low, differentiation of serviceis important to overcome competition andprosper in the long run.
• The alternative to competition then is to developa differentiated offer, delivery and image.
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DIFFERENTIATIATION OF OFFER • The offer can include innovative features that set the company‟s
offer apart from
Competitors‟ offers.
• Most service innovations are, however, easily copied primarily dueto absence
of patents to protect firms e.g. ATMs, credit cards, and branchlessbanking.
• However, the service company that innovates regularly usuallygains a succession of temporary advantages and an innovativereputation.
• The company can also introduce secondary service features tosupport the primary service package offered.
• In the airline industry various carriers introduced such secondaryservice features as movies and telephone services; hotels offer support computers and internet services to those who need them.
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DIFFERENTIATION OF SERVICEDELIVERY
Service companies can differentiate their
service through delivery in three ways:
• Through people – having more able and
reliable customer-contact people thancompetitors have.
• Superior and attractive physical environment
in which the service is delivered.• Superior delivery process e.g. use of visual aids
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DIFFERENTIATION OF IMAGE • Image is a key differentiating factor since service is intangible• Service companies can differentiate their images through symbols
and branding.
• Making the consumer link a specific image with a specific brandname is important e.g. a bank using the symbol of a lion mightconvey an image of strength.
• What image do the Safaricom, Telcom, Kenya Railways brandsconvey?
• It is also worth noting that during peak demand hours, the interactivequality of services often declines because both the customer and theservice provider are hurried and under stress and service imagecould decline.
• Demand could be changed for instance through differentiated pricingas explained above.
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MANAGING SERVICE QUALITY • Delivering higher quality service than competitors is a
major way of differentiating a firm‟s offer fromcompetition.
• Outstanding service gives companies a portentcompetitive advantage that leads to superior sales and
profit performance.• Service quality refers to the customer‟s perception of
how well a service meets or exceeds their expectations.
• When perceived performance is equal to expected thecustomer is satisfied but when perceived performance
exceeds expected performance the customer isdelighted.
• The key then is to try and exceed customer qualityexpectations.
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MANAGING SERVICE QUALITY(CONT)
• The expectations are based on past experiences, word of mouth,and service firm‟s advertising.
• You must therefore keep your promises.
• Promise only what you can deliver but deliver more than youpromise to win and retain customers.
• The key to customer retention is customer satisfaction.
• Indeed customer retention is a good measure of service quality.
• When customers are satisfied they will remain loyal to the companyand make repeat purchases while influencing others to become thecompany‟s customers.
• Remember also that service quality is judged by the customer not
the organization. Hence it is important to know what customersexpect.
• Focus group research could be used to discover customers‟expectations.
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MANAGING SRVICE QUALITY(CONT)
• In the event of service problems, it is important to ensurea good service recovery process as this can turn anangry customer into a loyal one
• To ensure this empower front line service employees bygiving them authority, responsibility and the incentives
they need to recognize, care about and attend tocustomers‟ needs.
• Also empower them to handle complaints so as to savetime since, for most customers, time is of the essenceand they do not want to waste time by being kept waiting
unnecessarily or transferred through severaldepartments.
• Let the frontline staff act as ambassadors andinformation gatherers for the company.
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DETERMINANTS/DIMENSIONSOF SERVICE QUALITY
There are five determinants or dimensions of service quality:• Tangibles – The appearance of physical facilities, tools, equipment,
service personnel and communication materials.
• Reliability – The ability to perform the promised service consistently,
dependably, and accurately.
• Responsiveness – The willingness and readiness of employees toprovide the service promptly and to help customers.
• Assurance – The knowledge, competence and courtesy of
employees and their ability to convey trust and
confidence.
• Empathy – The provision of caring and individual attention tocustomers.
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CHARACTERISTICS OF QUALITY • Quality is largely subjective; it is judged by the customer.
Like beauty it is in the beholder‟s eye. Hence:
Different customers may want and expect different
things.
Quality is relative to customer expectations andcannot be measured in absolute terms.
• Quality is distinctive. Different quality needs may be metthrough product differentiation and market segmentation.
• Quality is dynamic. Expectations change time due toexperience and environment.
• Quality requires care by the provider.
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FEATURES OF WELL-MANAGEDSERVICE COMPANIES
Well-managed companies have common
features and practices as follows:
• They are customer-focused with clear and
distinctive strategy for satisfying customers‟needs that wins enduring customer loyalty.
• Have a history of top management commitment
to quality serving as role models.
• Set high service quality standards e.g. zero
defects or answering the phone within 2 rings.
S O G
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FEATURES OF WELL-MANAGEDSERVICE COMPANIES (cont)
• Watch and monitor both their own and competitors‟service performance closely using methods such ascustomer surveys, suggestions, mystery shopping andcomplaint systems.
• Communicate their concerns about service quality oemployees and provide performance feedback.
• Handle customer complaints promptly.
• Audit employee satisfaction regularly i.e. internalmarketing to support employees and reward good
performance.
• Set up systems for service delivery to reduce variation inservice delivery.
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MANAGING PRODUCTIVITY • It is important for a service company to manage
productivity so as to keep costs down in order to lower prices to consumers and also make profits.
• To increase service productivity the company could:
Train current employees better.
Hire new employees who will work harder and better for the same pay.
Standardize production and introduce equipment for service provision e.g. ATMs, dish washing equipment.
Encourage customer participation in service provisione.g. filling forms at hospitals, sorting mail beforedelivering to post office, bagging own purchases, etc.