1. Introduction to marketing
Tutorial week 5
The marketing planning process

2. Agenda
Revision and discussion

3. Steps in strategic planning
Defining the company mission
Setting company objectives and goal
Designing the business portfolio
Planning marketing and other functional strategies
Business unit, product and market level
corporate level

4. Marketing strategy

5. THE MARKETING PLANNING PROCESS
ANALYSIS
PLANNING
Develop strategic plan
Develop marketing plans
IMPLEMENTATION
Carry out the plans
CONTROL
Measure results
Evaluate results
Take corrective action
FEEDBACK

6. Stages in Marketing Planning
The question…
Where are we now?
Business mission, marketing audit, SWOT analysis
Where would we like to go?
Marketing Objectives
How do we get there?
Core strategy, marketing mix decisions, organisation implementation
Are we on course?
Evaluation & Control

7. SWOT analysis Strength What is business good at?
Are our products popular?
Are our customer loyal?
Do we have skilled and motivated workforce?
Are we in solid financial position?
Weakness:
Is our business declining?
Do we have competent manager?
Is our computer system obsolete?
Have we experienced past failures?
Are we upgrading facilities?
Opportunities
what will new technology bring for us?
Is the national economy strong?
Are interest rates low?
What are our possible new markets?
What other business can we acquire to expand the org.
Threats:
What trends have been evident in the markets?
What are the new laws and regulation?
Are there new competitors?
Are current competitors taking over our market share?

8. SWOT Analysis and Strategy Development

9. Marketing planning (Doing right things)
Marketing mix strategy
Generic strategies
Cost leadership, differentiation or focus
Product portfolio
BCG matrix, to analyse which product to discard and which to retain
Promotional strategies
Distribution channel strategies
Push Vs pull strategies
Budget allocation

10. Marketing planning Guidelines for tactical planning:
Try to do something that competition has not thought of yet
Do not expect the results straight away
Consistent message to all the people involved in the marketing process
Be prepared for competitors response

11. Marketing implementation
The process that
turns marketing strategies and plans into marketing actions
in order to accomplish strategic marketing objectives.
Whereas marketing planning addresses the what and why of marketing activities,
implementation addresses the who, where, when and how.
Doing things right.

12. Marketing control (are we on course?)
Marketing control involve four step process
Set specific marketing goal
Measure its performance in market place
Evaluate the cause of any difference between expected and actual performance
Take corrective action to close the gaps between its goals and its performance.

13. Return on marketing investment
Return on marketing investment is the
net return from marketing investment divided by the costs of marketing investment.
It measure the profit generated by investments in marketing activities.
Company can access ROI in terms of
Standard marketing performance (brand awareness, sales and Market share)
Customer centered measure (customer acquisition, retention and life time value)

14. The marketing plan layout

15. Marketing plan Key contents of marketing plan
Purpose of the plan and the ‘mission’ of the business
Where the firm is now- ‘situational analysis’
Where it aims to get to (marketing objectives) and how it plans to achieve its target (marketing strategy)
Turning the strategy into appropriate marketing tactics (marketing mix)
The budget required to implement the plan effectively
Executive summary and a time frame for implementation of the plan

16. Purpose and mission Information to understand the purpose of it
Is it a new business proposal or
Is it to prepare the business for the launch of new product
Background information about the business- including the mission statement
Will be important if the audience is not familiar with the company
E.g. potential financial investor

17. Situational analysis
This part answers the question- ‘where are we now?’
For e.g. you are driving a car in the city and you are looking for particular address (your objective)
Map- (your plan)
But unless you know where you are at present on the map (situation analysis), you will not be able to direct yourself towards your goal
Important to know
Current strength
Existing product range and market shares
Existing and potential customers
Customer tastes and trends
External problems and opportunities

18. Situational analysis- importance
If not undertaken, then the rest of the plan can be misdirected
Aiming to reach inappropriate objective or
By using outdated strategies

19. Situational analysis Situational analysis cover 5 main areas
Current product analysis
Target market analysis
Competitor analysis
Economic and potential environment
SWOT analysis

20. Marketing objectives and strategy
Where do we want to be?
All plans need target to focus attention and to direct effort
SMART objectives
Can be expressed in terms of
Sales
Market share
Sales growth
Helps for review of the company’s marketing strategy

21. Marketing objective and strategy
Marketing strategy:
It outlines how the company intends to achieve its marketing objective
Considers overall approach to be taken by the business
Some strategic decision include:
Mass marketing vs niche marketing
Sell more to same market or new market
Develop product for existing customer or new product for new customer
Strategy chosen will depend on
Company mission and objectives
Situational analysis
The resource of the business

22. Marketing mix tactics
Plan now focus on product, price, place and promotion tactics
Marketing mix should be fully integrated to be most effective
Marketing plan will explain how the 4Ps are related and linked to each other so that the consumers are not confused
For e.g. low prices for high image product promoted in exclusive magazines

23. Marketing budget The plan must give details of
How much is required to put the marketing strategy and tactics into effect
The expected sales performance of the plan to allow the comparison between marketing expenditure and expected sales
Lays out the spending requirements to meet the plans overall objectives
Budget depends upon
Spending as much as competitors
Past expenditure and sales

24. Reviewing the plan – and the marketing strategy
Set marketing objectives
Research SWOT
Establish marketing strategy
Plan to put strategy into effect
Review progress towards objectives
How successful was it?
Results of the marketing plan needs to be checked against the original objectives
Should be an ongoing process and not just at the end
Revise strategy if necessary

25. Marketing planning - evaluation
Three main benefits
Potential entrepreneurs will need marketing plan to convince potential financial investors
Specific marketing plans might also be needed to help introduce a new strategy
Important part of the annual overall business planning process
Provides direction and purpose to future marketing decisions that everyone in the department and the organisation as a whole can understand and support

26. Marketing plan- potential limitations
Firstly, complex, costly and time consuming
Small business might not have money or skilled management know how
In fast changing market, plan might be outdated even before it is published
Secondly, marketing managers might become wedded to the plan that they have devoted so much time and energy
They might ignore the changes in the external environment
Such as economic downturn

27. Individual Class test (35 min)
Outline the difference between the macro and micro marketing environments and outline the key components of the environmental scanning audit (15 marks)
Examples from case studies and/or from relevant sources should be implemented as appropriate. (5 marks)