Download The Marketing Plan

MKT 467
Marketing Planning & Control
Dr Farid El Sahn
Professor of Marketing
Department of Management& Marketing
University of Bahrain
Room:2/107
Tel. 17438819
[email protected]
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHAPTER
INTRODUCTION
TO MARKETING
PLANNING
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
In This Chapter:

Overview of Marketing Planning
Marketing Planning Defined
Contents of a Marketing Plan

Developing a Marketing Plan
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
In This Chapter:

Preparing for Marketing Planning
- Primary Marketing Tools
- Supporting the Marketing Mix
- Guiding Principles
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Overview of Marketing Planning


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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Current Definition of Marketing

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.”
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing Planning Defined

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”.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan

A document covering a particular period that
summarize what the marketer has learned
about the marketplace, what will be
accomplished through marketing and how.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan


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 longterm strategic direction
Marketing Planning encompasses more
bottom-up, organization-wide input and
collaboration.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan


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.
© 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
Contents of a Marketing Plan

Executive summary

Current marketing
situation
Briefly reviews the
plan’s highlights and
objectives
 Summarizes
environmental trends:
-internal and external
situational analysis
- SWOT analysis

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contents of a Marketing Plan


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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contents of a Marketing Plan

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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contents of a Marketing Plan

Financial plans

Details the expected
revenues , expenses ,
and profits.

Implementation
controls

Indicates how progress
toward the objectives
will be measured and
how adjustments will be
made.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing a Marketing Plan


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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1- Research and analyze the current
situation


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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1- Research and analyze the current
situation

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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
2- Understand markets and customers


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 ?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3- Plan segmentation , targeting , and
positioning


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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3- Plan segmentation , targeting , and
positioning



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-tobusiness 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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4- Plan direction, Objectives, and
Marketing support



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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5- Develop Marketing Strategies and
Programs

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.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
6- Prepare to track progress and
control the plan



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 .
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Preparing for Marketing planning

Marketers need to develop a number of professional and
organizational strengths including :

1- knowledge of markets and customers : marketers need indepth 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 .


© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Primary marketing tools

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 .



© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Supporting the marketing mix




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-andsometimes 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 .
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Guiding principles

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) .




© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin