3 Marketing PlanningAn 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 Strengths of organization Market Needs Wants Weakness of organizationExisting competitorsExpected competitorsDesign for creating value
5 Marketing Planning Process Definition:The application of marketing resources to achieve marketing objectives.
6 Marketing Planning Process Performing a situation analysisFormulating basic assumptionsSetting objectives for what is being sold and to whomDeciding how the objectives are to be achievedScheduling and costing out the actions necessary for implementation
7 Develop a Market PlanManagement provides little guidance as to how the process should be managed.To Compromise between what is desirable and what is practicableManagement must be customized to their particular organizationSizeComplexityCharacter 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 Revenue Profit Return on investmentCost
10 Application of Marketing Plan To help identify sources of competitive advantageTo force an organized approachTo develop specificityTo ensure consistent relationshipsTo inform everyone in the organization about prioritiesTo obtain resources needed to implement plansTo engage organizational support at all levels, form the bottom to the top of the organizationTo set objectives and strategiesTo gain commitment towards goals
11 The Elements of Strategy Stepping back form the day to dayIdeas and thoughtActivity/ActionSetting Objectives and goalsImportant decisions and choicesSignificant commitment of resourcesNot easily reversibleInvolves choice/tradeoffsDifferentiationInsightVisionDefines the business we are inDefines the business we are becomingValueTradeoffsObjectives and goalsStrategy 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 effortThe 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 StatementThe 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 objectivesIt 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 BoardStrategic OrientationSenior ManagementMiddle ManagementTactical OrientationOperations
18 Strategic Oriented Company BoardSenior ManagementStrategic OrientationMiddle ManagementTactical OrientationOperations
19 Rules of Marketing Planning Develop the strategic marketing plan.Scanning the external environmentIdentifying early on the effect this may have on the companyA 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 summaryMission StatementFinancial Summary of revenue, expenses and earningsMarketing auditSWOT analysisAssumption of key determinantsOverall marketing objectives and strategiesExpected resultsAlternatives (contingency plan)Budget
21 Stages of Marketing Plan 1. MissionPhase one -Goal Setting2. Corporate objectives3. Marketing auditPhase Two –Situation Review4.SWOT analysis5. Assumptions6. Marketing objective and strategiesPhase Three-Strategy Formulation7. Estimate expected result8. Identity alternative plans and mixesPhase Four-Resources allocation and monitoring9. BudgetMeasurement and review10. First year detailed implementation program
22 Critical Factors Delegation Commitment When companies delegate marketing planning to planner, the plan invariably fails, because planning for line management cannot be delegated to a third party.CommitmentWithout 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 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” Philip Kotler
24 Marketing Audit II Goal: To see how well the firm is applying the marketing conceptsExamine external and internal information and proceduresIdentify problems in the environment
25 Marketing Audit IIINeed for an audit does not manifest itself until things start to go wrong for a company in the form:Declining salesFalling marginsLost market shareUnderutilized 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 ConsultantsEvery company is at risk of becoming blinded to reality by the influence of company culture
29 Kind of variables for Controlling Non Direct ControlThese usually take the form of what can be described as:Environment,Market,Competitive variablesCompany has ControlOperational variablesExternal Audit For Uncontrollable variablesInternal Audit For controllable variables
30 Auditing ProcessIdentification, measurement, collection, and analysis of all facts and opinions that affect a company’s problemThe application of judgment to uncertain areas that remain after the initial analysis
31 Marketing Audit Procedure Marketing environment auditMarketing strategy auditMarketing organization auditMarketing system auditMarketing productivity auditMarketing function auditMarketing excellence reviewEthical and social responsibility review
32 SWOT Analysis SO ST WO WT External Opportunities Threats Internal StrengthsSOSTWeaknessWOWT
33 Objective and Strategy Setting Corporate Financial Objective Corporate PlanningStep 5:Corporate PlansStep 4:PlansStep 3:Objective and Strategy SettingStep 2:Management AuditStep 1:Corporate Financial ObjectiveIssue:corporate objectives and strategiesMarketing “…MarketingDistributionManufacturingFinancialPersonnelTargeted Growth in Sales and earnings
34 Elements of Corporate Plan The desire level of profitabilityBusiness boundariesWhat 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 objectivesSocial Responsibility and corporateStock-marketEmployer image
35 AssumptionsThis 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,Criticaland few in NumberConsistent with relevant known factsWith 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: Ansoff’s Product/Market Expansion GridExistingProductsNewProductsMarketPenetrationProductDevelopmentExistingMarketsMarketDevelopment4. DiversificationNewMarkets
38 The Marketing Mix Marketing Mix Product Place Promotion Price ConvenienceCustomerSolutionCustomer CostCommunication
39 Use of Marketing Plan To determine: Where the company is now, Where it wants to go,How to get thereIncludes:Advertising PlanSales Promotion PlanPricing PlanDistribution PlanProduct PlanTarget Market Plan
40 The Marketing BudgetTo justify all marketing expenditures from a zero base each year against the task that you wish to accomplish.
41 Mission StatementsIt 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 ContributionProfitServiceOpportunity seekerBusiness definitionCore CompetenciesCompany/Division PositioningIndications for the future
42 Types of Mission Statements MotherhoodIt found in annual reports designed to “stroke” shareholders/Non Practical UseThe Real ThingMeaningful Statement/impact on the behavior of the executives at all levels.Purpose StatementLower-Level mission statement/Appropriate on the strategic business unit, departmental or product group level of the organization.
43 Examples of Corporate 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 MARRIOTT’S 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.