1. Lecture 3 Osmani sofiane Marketing Plan
Marketing Planning
Lecture 3
Osmani sofiane
Marketing Plan

2. Learning Objectives
By the end of this session, you should be able to:
Explain the role and benefits of marketing planning
Identify the stages in the Planning Process
Understand a range of analysis tools
To appreciate the role of marketing control and evaluation

3. Planning: Definitions
“A systematic process of forecasting the future business environment and deciding on the most appropriate goals, objectives and positions for best exploiting that environment.”
Planning is an activity and a process = formalised
The marketing PLAN;
“Provides clear and unambiguous statement [of intent] about the strategies and actions that will be implemented, by whom, when and with what [anticipated/required] outcomes.”
McDonald (1989) p13
The purpose of marketing planning is:
“to find a systematic way of identifying a range of options, to choose one or more of them, them to schedule and cost out what has to be done to achieve the objectives.”
Kotler et al (2005)

4. Why Plan? Planning helps: to develop systematic, long-term thinking
to create an organised approach
to develop specificity & consistency
to get agreement from colleagues & support from non-marketers
common goals and mutual benefits
to identify sources of competitive advantage
As we’ve seen over the development of the 5 marketing concepts in the lecture and seminars so far, businesses have become increasing aware over time that simply doing what they have always done (producing the same goods in the same traditional ways) is not enough (production), they had to think about customer choice and start to innovate and make their products better (product), then think of the most effective ways in which to tell customers about their products through selling and promotion activities, then finally at the marketing concept, they realised that they needed to develop a longer-term focus, to ensure their business was not only successful today but into the future too, to create ways in which to make profits which could be reinvested to help the business grow and to fight off competitors.
Marketing planning is therefore about: thinking about the future and organising the members / stakeholders of the business so that everyone works towards a common goal.

5. Benefits of Planning
Brassington & Pettitt, (2006)

6. Rationale for planning
Planning should answer questions including:
Why are we here?
What business are we in?
Where are we now? = S&W
What issues do we face?
PESTLE analysis / =O&T
Where do we want to be?
Goals vs. capabilities
How do we get there?
Activities and Controls
“Why are we here” establishes the overall driving force or purpose of the business – is it to be profitable, is it to be the No. 1 market leader, is it to promote environmentally friendly causes and sustainable business development for third world countries (e.g. Body Shop).
We saw last week that there are a number of internal and external elements which will influence the success or failure of a business, therefore, in planning, it is important to establish the situation in the micro and macro environments. This stage is called “environmental analysis”; firstly we look inside the business, and attempt to answer “Where are we now?” by assessing the strengths and weaknesses; then we look externally and ask “What issues do we face?” in the outside world, by looking at the opportunities and threats which face the business, and review the PESTLE factors which may have an influence on the decisions we make.
“Where to we want to be” compares the resources, skills and facilities of the business to see where it can make better, more efficient and effective use of these, for example, as technology advances, so business operations can be done quicker (e.g. electronic payroll, automated accounting software packages and inventory control systems for example sophisticated accountancy software packages which have replaced manual book keeping activities) which have also replaced manual labour, against the goals that the business sets itself as it is important to establish a) whether these goals are realistic and achievable and b) how the business will measure when and if it has achieved its goals.
“How do we get there” is arguably the most interesting bit for any marketing practitioner as this is about deciding the core strategy of the business, setting action plans and agreeing who does what, when and then monitoring what actually is being done and how well this is being achieved against that stated objectives.

7. Planning coordinates all marketing activity
Last semester in Principles of Marketing, we looked one-by-one at many elements of a Marketing Plan, so now we need to link these together:
Environmental analysis: PESTLE, SWOT
Understanding customers: Buyer Behaviour
Setting strategy: Segmentation, targeting and positioning
4P’s/ 7P’s Marketing Mix: Marketing Programme

8. Planning framework McDonald (2007)
Phase One – Goal Setting
1. Mission
2. Corporate Objectives
Measurement & Review
Phase Two – Situation Review
3. Marketing Audit
4. SWOT Analyses
5. Assumptions
Environmental analysis: PESTLE, SWOT
Understanding customers: Buyer Behaviour
Segmentation, targeting and positioning
4P’s/ 7P’s Marketing Mix
= Core strategy
Phase Three – Strategy Formation
6. Marketing objectives & strategies
7. Estimated results
8. Alternative plans & mixes
Phase Four – Resource Allocation & Monitoring
9. Budget
10. 1st yr detailed implementation plan

9. Other Authors’ suggested contents
Executive summary
Financial Objectives
Target markets
Situation Analysis
Positioning
Market Summary
Strategies
targets, demo-graphics , needs, trends, growth
Marketing Mix
Marketing Research
SWOT Analysis
Financials
Competition
Sales vs. Expense Forecasts
Product Offering
CSF’s – opportunities and threats
Controls
Implementation
Milestones
Marketing Strategy
Marketing Organisation
Mission
Marketing Objectives
Contingency Planning
Kotler & Keller (2009)
Brassington & Pettitt, (2006) 1 2 3 4 5 6 7 8
B&P list of activities at each stage of the marketing planning process according to Kotler, next we’ll look at how McDonald has developed this list into a flow chart of movement from one stage to the next. Each model has slightly different content, but essentially both include the answers to the questions we just looked at:
Why are we here? – Exec summary
What business are we in? – (Mission statement)
Where are we now? - Current mktg situ.
What issues do we face? - Opp. and issue analysis
Where do we want to be? - Objectives
How do we get there? – Marketing strategy, Action programmes, P&L, Monitoring and Control.

10. Small Businesses (SME)
Marketing Planning for
Small Businesses (SME)
Brassington & Pettitt, (2006)

11. Executive Summary / Mission statement
Should contain:
brief overview of the proposed plan
main objectives & recommendations
clear indication of timescales involved
And allow senior management to quickly grasp the plan’s major points
Day (1990) 4 characteristics of effective mission statements:
Future oriented
Reflects value and orientations of the leader
States strategic purpose
Enabling – provides clear guidelines for each SBU
The Exec summary is what we often find as the opening section of a public company’s published annual report, where the main objectives of the fiscal year are introduced. In this example it is a backward look over the past year, for planning purposes it should be forward looking with a future perspective. For internal needs, the executive summary quickly identifies to staff members and shareholders what it is they are being asked to help the business achieve.
Insert = metaphor: “Singing from the same song sheet” – creates a basis for cooperation and synergy within the business, as everyone is aware of the goals and know what their role is in the implementation of the action programmes.
"Volvo Penta supplies technically advanced engines and power systems to demanding customers in selected marine and industrial segments. Our product and service offering is designed in the spirit of customer orientation and Volvo´s core values – quality, safety and environmental care. Our products and services shall generate competitive advantages for our customers and provide end users with superior reliability and performance. Our business operations shall contribute to an increased volume base and profitability for the industrial operations of the Volvo Group. We work with energy, passion, and respect for the individual."

12. Group Vision & Mission

13. Mission statement or Corporate objectives
Sets out:
Specific long-term objectives for the company and organisation as a whole
Like all objectives, should be SMART:
Specific, Measurable, Actionable, Realistic, Timed
Objectives will include:
Performance Objectives
Directional Objectives
External Objectives
Internal Objectives

14. Current marketing situation or AUDIT
Should include:
Market situation
Competitive situation
Macro environment situation
(PESTLE)
Product situation
Price situation
Promotion situation
Place (distribution) situation
Internal
External
&
We discussed environmental analysis last week, here we can see each of the general areas worthy of review for the purposes of planning, which groups internal and external public and factors under certain headings. The market and competitive situations are in this case are mainly a review of micro environmental conditions; the PESTLE analysis is always an external review, and the marketing mix situations can be viewed both internally (S&W) as well as externally through O’s and T’s and general conditions outside of the organisation (e.g. trends in using franchising or not, and demand elasticity at certain price price levels.)
The marketing audit
Takes stock of a company’s marketing health.
Is the launching pad for the marketing plan.
Encourages management to reflect on the environment and company’s ability to respond.
Encompasses the external and internal audit.

15. Situation Audit Competitors Suppliers Distributors
External Factors
Macro Environment
Political
Economic
Social/Cultural
Technological
Legal
Environmental (CSR/Green/Ethics)
Micro Environment
Competitors
Suppliers
Distributors
Customers/Market Trends
Internal Factors
Position
Financial Situation
Market Position
Operations
Marketing Research
Products
Pricing
Selling and Distribution
Advertising and Sales Promotion
Capability
Organizational Structure
Management and Workforce
Capability for Change

16. Must be addressed by Marketing Plan decisions
SWOT Analysis
INTERNAL FACTORS
past and present
EXTERNAL FACTORS
ACTION:
STRENGTHS
Build on them
Emphasise in promotional campaigns
OPPORTUNITIES
Exploit them if possible
Need to be identified and researched via environmental scanning and analysis
WEAKNESSES
Eliminate them if possible
Circumvent them
THREATS
Develop contingency plans
Must be addressed by Marketing Plan decisions

17. Opportunity and issue Analysis
Should include:
Strengths and Weaknesses
Opportunities and Threats
Issue analysis
defining the main or
critical issues / CSF’s (issues given priority weightings)
the plan must address
Out of any issue analysis, the most important use of these tools is to develop a critical list of those elements most likely to have an adverse or large impact on the success of the business; we call these the (Key) or CRITICAL SUCCESS FACTORS.
Boulder Stop is an online / direct mail sports equipment and apparel seller which wants to establish offline retail operations.

18. Setting Objectives Types of Objectives:
Quantitative targets - e.g. financial, operating, etc.
Philosophical targets - vision and values.
Qualitative targets - service levels, etc.
These are be expressed in terms of:
Corporate objectives
Marketing objectives
Financial objectives
Objectives need prioritising
and to be SMART:
What could marketing objectives include (ask lecture group)?
e.g. increase in sales, increase in market share, market leadership, overtake certain competitors / be No.1, increase awareness of a new brand, launch new products, increase the range of products on the market, improve product positioning in the market (e.g. brand positioning) etc.
What could financial objectives include (ask lecture group)?
e.g. increase in profits / return on investment, increased external inward investment, creation of new facilities, acquisition of competitors / other businesses, reduction in costs, increased efficiency in production and in all operations, investment in research and development etc.
In order for any of these objectives to be agreed on, they have to go through a number of tests to see if they are:
Specific enough – they cannot be vague otherwise it will be almost impossible to measure if it has been achieved or not at the end or during hr progress of the planning period
Measurable – as above, important to decide who, how and when the achievement of the objectives will be measured, is it in terms of £ or Euros, % rises or decreases, revenues / profits etc.?
Achievable (Actionable) this goes together with Realistic really, and will be based upon setting a realistic timescale, and agreeing of the resources and capabilities of the organisation and its staff are able to achieve the objectives, if not, extra staff may be needed at peaks times, longer production runs at a factory, including new technical equipment etc., or longer trading hours for example.
Timed (timescale provided) – these can be for the duration of the whole planning period, or at set points during the period e.g. quarterly or monthly etc. and the timescale should retain some flexibility and be part of the contingency planning to allow for slippages, and suggest alternative courses of action if one deadline is missed, to reduce the knock-on effect to the next monitoring period, rather than put the whole plan out of sync.
Specific
Measurable
Achievable (Actionable)
Realistic
Timed (timescale provided)

19. Qualitative targets Objective trade offs
Short term v long-term growth.
Profit margin v market positioning.
Direct sales effort v market development.
Penetrating existing markets v developing new ones.
Profit v non-profit goals.
Growth v stability.
Change v stability.
Low risk v high risk.
Brassington & Pettitt, (2006)

20. Marketing Strategy Includes: target market positioning marketing mix
customer service
research and development
marketing research
Michael Porter is a key writer on Marketing strategy, it is his influence that we saw on the McDonald Marketing planning process under “Core strategy” for example where he highlights (from the results of much businesses research) that three are three principle elements of core strategy:
Target Markets – knowing who the key customers are and how to reach them
Competitor targets – knowing who the key competitors are and where we want to be in comparison to them
And Competitive advantage – we need to establish bases upon which to differentiate our business and products against competitors, to make us stand out and be seen as offering more value to customers, in areas which are MEANINGFUL to our customers.
By understanding the above, we can then aim to position our product in the market, by sending messages to our customers, which they translate into a position in the market vis a vis our competitors.
The McCarthy’s 4 P’s framework as we have discussed previously is a useful mechanism for us to use to develop marketing activities to achieve our objectives; we will change and adapt each relevant aspect until our customers are satisfied and we have met our internal goals.
As customers are key to the business, we need to ensure we are offering superior value not only in the products and services we offer but also in the way in which they are offered, by evaluating our customers service operations both inside the company (e.g. dealing with telephone calls and s from customer complaints), to outside where the customers meet and interact with our distribution partners.
Through research and development, we aim to improve / innovate and be creative in adapting to the changing needs of the customers, the market and our business goals, which may require investment in terms of time, money, information collection and manipulation.
Information we will gain through continuously monitoring the micro and macro environments and through primary and secondary research of our customers; before, during and after the research period to assess our performance at each stage.

21. Marketing Strategies and Actions
Strategic Actions provide the means by which a company sets out to achieve its marketing objectives. Achieved by (one or more):
Repositioning the product
Improving product packaging / other mix elements
Amending prices
Improving productivity
Standardisation
Changing sales or customer mix

22. at what cost and using which resources?
Action Programmes
Attempts to answer:
what will be done?
when?
who by?
Once the overall strategy has been decided, we turn to the actual activities each member of the business needs to take ownership of in order to fulfil the planning objectives:
By whom is important here as the plan has to clearly identify “ownership” of each issue in terms of allocating an action to a person or department, where they may be a key link person who reports back to the marketing planning team when the action has been implemented. Those involved in the implementation of marketing planning activities will not be limited to the marketing department!!!
at what cost and using which resources?

23. Marketing & other Departments
Marketing has a bridging / integration role with other operational departments:
Research & Development (R&D)
Engineering
Purchasing
Manufacturing
Operations
Finance & Accounts
Credit
As we discussed earlier, the marketing department are not the sole owners of the activities laid out in the marketing plan, all areas of the business have to “buy-in” to the plan.

24. Sample from Boudler Stop Café
Marketing Programme
Sample from Boudler Stop Café
Marketing plan:
Turning strategies into implementable actions.
A detailed written statement specifying target markets, marketing programmes, responsibilities, time scales and resources to be used within the defined budgets.
Marketing (Action) programmes:
Actions, often tactical, using marketing mix variables to gain advantage within target market.
Specify means of implementing the marketing strategy.
Detailed as part of the marketing plan.

25. Control and Evaluation Process
Measures include:
performance measurements
evaluation mechanisms
feedback mechanisms
contingency planning
Budgets / Profit & Loss
Brassington & Pettitt, (2006)

26. Marketing Costs and Profitability Analysis
Brassington & Pettitt, (2006)

27. Problems with planning
Companies become obsessed with the process or technique rather than the actual content and delivery of the plan!!
Unreliable or insufficient market research data can make plans flawed from beginning!
New companies
too busy?
Small companies
not important/ no skills/ restrictive?
Mature companies
Unnecessary / cumbersome?
Fast changing markets
not useful / responsive?
However all organisations should plan!
In the seminar marketing concept worksheet 1, we considered the differences between small and large businesses for marketing purposes. In planning , research evidence (e.g. David Carson et al, 2001) suggests that often smaller business see planning as restrictive and time consuming and often do not have the personnel with the right skills / knowledge or time to concentrate solely on marketing or planning activities. They also feel that plans reduce the level of innovation and flexibility of an entrepreneurial business which relies on its ability to quickly adapt to customers and market changes.
Mature or multinational / larger businesses have often adapted marketing as a core business philosophy and are experienced and skilled in using it, and may feel over time that they can manage without a marketing department as each area of the business is aware of the overall plan and their part in it. Also larger businesses may find plans lengthy to implement and restrictive in such a multifaceted business (for example personal care product companies like Beirsdorf who manage Nivea and many other brands simultaneously, so therefore set up SBU’s to concentrate on each area of business semi-autonomously (look-up spin-offs and carve-outs for instance)).
The time delay in collating information for, developing and implementing marketing plans may also be seen as irrelevant for fast changing markets like the technology or financial sectors who may focus on more short term objectives.

28. Marketing Planning is Essential!
Conflicting pressures make choices difficult:
Enhancing customer service
Short-term profit
Revenue maximisation
Cost minimisation
Long-term value creation
Increasing profitability
Vs.
There are as always limitations and conflicting pressures within a business which may hinder the implementation of planning which need to be effectively managed by the business (esp. the marketing department if there is one!), as some business objectives may actually be in conflict with each other e.g. to reduce costs but increase revenues: where this means higher levels of production, perhaps cost minimisation is not immediately possible and may not take effect until the next planning period, which means a longer-term view must be taken.
E.g. especially in FMCG markets where fast turnover of stock is expected, short term promotional offers will be used tactically instead of longer-term relationship (with the brand) building campaigns or activities. Here the argument between accounting dept. fiscal year ROI and marketing longer term objectives and outcome measures arises again!

29. Further reading Chapters as per Unit handbook. Texts:
Burk Wood, M., (2007). Essential guide to Marketing Planning. Harlow: FT Prentice Hall.
Hatton (2000). The definitive guide to marketing planning.
Kotler,(2003). Marketing Management.
McDonald, M., (2005). Marketing Plans: how to prepare them, how to use them. Oxford: Elsevier/Butterworth-Heinemann.
McDonald & Payne, (2006) (2e). Marketing plans for service businesses.
Westwood, (2004) (2e). How to write a marketing plan.
Journal articles:
Gilmore, Carson, & Grant (2001). SME marketing in practice. Marketing Intelligence and Planning. 19 (1), p6-11.
Greenley, Hooley & Saunders. (2004). Management processes in marketing planning. European Journal of Marketing. 38 (8), p