© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Dr Farid El Sahn MKT 467 Marketing Planning & Control Professor of Marketing Department of Management& Marketing University of Bahrain Room:2/107 Tel

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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTRODUCTION TO MARKETING PLANNING 1 1 C HAPTER

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Overview of Marketing Planning Marketing Planning Defined Contents of a Marketing Plan Developing a Marketing Plan In This Chapter:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Preparing for Marketing Planning - Primary Marketing Tools - Supporting the Marketing Mix - Guiding Principles In This Chapter:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The task of modern marketing is not just to capture the attention of customers, but rather to build a strong relationships and maintain these relationships overtime. This is reflected in the new definition of marketing offered by the AMA. Overview of Marketing Planning

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing is” an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” The Current Definition of Marketing

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing planning is “ the structured process of researching and analyzing the current situation, including markets and customers; developing and documenting marketing objectives, strategies, and programs; and implementing, evaluating, and controlling activities to achieve the objectives”. Marketing Planning Defined

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A document covering a particular period that summarize what the marketer has learned about the marketplace, what will be accomplished through marketing and how. The Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The marketing plan differs from the business plan, which outline the organization’s overall financial and operational objectives and strategies, and the strategic plan, which discusses the organization’s general long- term strategic direction Marketing Planning encompasses more bottom-up, organization-wide input and collaboration. The Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Larger organizations frequently require a marketing plan for each business unit as well as for each product category or brand. The marketing plan may vary in the exact contents, length, and format depending on the nature and size of the organization as well as the level in which the plan will cover. The Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing Planning Process 1- Research and analyze the current situation 2- Understand markets and customers 3- Plan segmentation, targeting, and positioning 4- Plan direction, objectives, and marketing support 5- Develop marketing strategies and program 6- Prepare to track progress & control the implementation plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Executive summary Current marketing situation Briefly reviews the plan’s highlights and objectives Summarizes environmental trends: -internal and external situational analysis - SWOT analysis Contents of a Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objectives and Issues Target market Outlines the specific marketing objectives to be achieved and identifies issues that affects it’s achievement by the organization. Analyzes the market and segments to be targeted through marketing strategy. Contents of a Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing strategy Marketing programs Shows the strategy to be used in achieving the marketing objectives. Programs including specific activities, schedules, and responsibilities for the four P’s Contents of a Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Financial plans Implementation controls Details the expected revenues, expenses, and profits. Indicates how progress toward the objectives will be measured and how adjustments will be made. Contents of a Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing plans generally cover a full year although some may project activities further into the future. The Marketing planning process starts at least several months before the marketing plan is scheduled to go into operation to allow sufficient time for deeper research and analysis. Developing a Marketing Plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The first step is to study the current situation before charting the organization’s marketing course. Externally, Marketers study the environmental trends to detect demographic, economic, technological, political, ecological, or socio-cultural that can affect the decisions, the threats, and the potential profit. 1- Research and analyze the current situation

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Internally, marketing managers assess the company’s internal capabilities and the strategies of competitors in order to build on internal strength while finding ways of exploiting rivals’ weaknesses or emerging opportunities. 1- Research and analyze the current situation

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Use marketing researches to analyze markets and customers, whether consumers or businesses. Among the many questions to be studied : 1-who is doing the buying and why ? 2- how are buying habits are changing ? 3-what products and categories are in demand ? 2- Understand markets and customers

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Knowing that organizations can never be everything to all people, marketers have to apply their knowledge of the market and customers to select certain parts of them which is known as segmentation The purpose of segmentation is to group customers with similar needs, wants, behavior or other characteristics that affect their demand for the good or the service being marketed. 3- Plan segmentation, targeting, and positioning

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Once the market has been segmented, the next set of decisions will be targeting including whether to market to one segment, to several segments, or to the entire market and how to cover these segments. Segmentation and targeting are vital in business-to- business marketing. Next, the organization formulates suitable positioning which means using marketing to create a competitively distinctive position for the brand or the product in the mind of targeted customers. 3- Plan segmentation, targeting, and positioning

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing managers are responsible for setting the direction of the organization’s marketing activities, based on goals and objectives. Goals are long-term performance targets whereas objectives are short-term targets that helps achieving long-term goals. The marketing, financial and societal objectives that are set and eventually achieved will move the organization forward toward its overall goals. 4- Plan direction, Objectives, and Marketing support

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin After the implementation of the previous four steps, now the management formulates strategies using the basic marketing mix tools of product, place, price, and promotion enhanced by a strong customer service, to build stronger customer relationships and internal marketing to give the needed support within the organization. 5- Develop Marketing Strategies and Programs

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Before the implementation of the marketing plan, the company needs to identify mechanisms and methods to measure the progress toward the objectives. Most companies use methods like sales forecasts, budgets and schedules to set and record standards for market share, sales, profitability, and productivity. By comparing actual outcomes against projections, management can see where the firm is ahead, where it is behind and where adjustments are needed to get back to the right path. 6- Prepare to track progress and control the plan

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketers need to develop a number of professional and organizational strengths including : 1- knowledge of markets and customers : marketers need in- depth knowledge their customers want, how and why they buy, and how they perceive competing products and so on. 2- core competencies : they are skills, technologies, and processes not easily imitated-that give the company competitive superiority in effectively and efficiently satisfying customers. 3- relationships : strong, mutually beneficial links with suppliers, distributors, ad agencies and others from the chain through which the organization creates and delivers value. Preparing for Marketing planning

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin In addition to relaying on the last three main strengths, marketers need to be creative in their use of the primary marketing tools which are : 1- Product. 2- Channel. 3- Pricing. 4- Promotion. Primary marketing tools

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customer service and internal marketing is considered as the best strategy to support the marketing plan because : 1- it reinforces positive perception of product, brand or a company-and- customers expect it-and- sometimes demand it. 2- good service can clearly differentiate a company from it’s competitors. The internal marketing strategy focuses all employees on serving customers and builds support for the marketing plan. Supporting the marketing mix

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Today’s marketers should follow five guiding principles in order to contribute to customer value and stay competitive : 1- Expect change. 2- Emphasize relationships. 3- Involve everyone. 4- Be innovative. 5- Seek alliances (with suppliers, channel members, and partners). Guiding principles