Marketing Plan

Objectives

 Marketing planning
 Tactical and Strategic Marketing Plans
 Marketing planning process
 Corporate Planning
 Assumptions
 Marketing Objectives
 Marketing Strategy
 Marketing Program
 Mission statements
Marketing Planning

 An 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
 Marketing Planning

Strengths of Market Needs

organization
Wants

Weakness of Existing
organization competitors

Expected
Design for competitors
creating value
Marketing Planning Process

Definition:
 The application of marketing resources to achieve
marketing objectives.
Marketing Planning Process

1. Performing a situation analysis

2. Formulating basic assumptions
3. Setting objectives for what is being sold and to
whom
4. Deciding how the objectives are to be achieved
5. Scheduling and costing out the actions necessary
for implementation
Develop
a Market Plan
 Management provides little guidance as
to how the process should be managed.
 To Compromise between what is desirable
and what is practicable
 Management must be customized to
their particular organization
 Size
 Complexity
 Character and diversity of company
operations
Essential of Marketing
Planning

 We need marketing planning when hostiles increased

and environment is complex.
Our Challenge

 We should manage:

Return on
Revenue Profit
investment

Optimization

Cost
Application of
Marketing Plan
1. To help identify sources of competitive
advantage
2. To force an organized approach
3. To develop specificity
4. To ensure consistent relationships
5. To inform everyone in the organization about
priorities
6. To obtain resources needed to implement plans
7. To engage organizational support at all levels,
form the bottom to the top of the organization
8. To set objectives and strategies
9. To gain commitment towards goals
 The Elements of Strategy

1. Stepping back form 9. Differentiation

the day to day
2. Ideas and thought 10. Insight
3. Activity/Action 11. Vision
4. Setting Objectives 12. Defines the business
and goals we are in
5. Important decisions
and choices 13. Defines the business
6. Significant we are becoming
commitment of 14. Value
resources
7. Not easily reversible 15. Tradeoffs
8. Involves 16. Objectives and goals
choice/tradeoffs
17. Strategy Vs. Tactics
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.
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.
Strategy

Strategy describes:
 The direction a business will pursue and
guides the allocation of resources and
effort
 The 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.
Strategy Statement

 The strategy statement for a

business unit is composed of the
following three elements:
1. A business definition that specifies
the area in which the business will
compete.
2. A strategic thrust that describes
where competitive advantage is to
be gained.
3. Supportive functional strategies.
Marketing Strategy

Definition:
 It is a statement of how a brand or product line will
achieve its objectives
 It Provides decisions and direction regarding variables
such as:
 Segmentation of the market,
 Identification of the target market,
 Positioning,
 Marketing Mix elements and expenditures.
 Tactically Oriented
Company
Board

Senior
Management

Middle
Management

Operations
 Strategic Oriented Company

Board

Senior
Management

Middle
Management

Operations
Rules of
Marketing Planning
1. Develop the strategic marketing plan.
• Scanning the external environment
• Identifying early on the effect this may have on the
company
2. A strategic plan should cover a three-year period.
• Never write the one-year plan first and extrapolate
from it.
Marketing Planning Process

A strategic marketing plan should contain the

following:
1. Executive summary
2. Mission Statement
3. Financial Summary of revenue, expenses and
earnings
4. Marketing audit
5. SWOT analysis
6. Assumption of key determinants
7. Overall marketing objectives and strategies
8. Expected results
9. Alternatives (contingency plan)
10. Budget
Stages of Marketing Plan
Phase one - 1. Mission
Goal Setting
2. Corporate objectives

3. Marketing audit
Phase Two –
Situation Review
4.SWOT analysis

5. Assumptions

Phase 6. Marketing objective and strategies

Three-
Strategy 7. Estimate expected result
Formulation
8. Identity alternative plans and mixes

Phase Four- 9. Budget Measuremen

Resources allocation t and review
and 10. First year detailed implementation program
monitoring
Critical Factors

 Delegation
 When companies delegate marketing planning to
planner, the plan invariably fails, because planning for
line management cannot be delegated to a third party.
 Commitment
 Without it, those charged with introducing the planning
found that there was great resistance to planning on the
part of local managers.
 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
Marketing Audit II

Goal:
To see how well the firm is
applying the marketing
concepts
1. Examine external and internal
information and procedures
2. Identify problems in the
environment
Marketing Audit III

Need for an audit does not manifest itself until things

start to go wrong for a company in the form:
 Declining sales
 Falling margins
 Lost market share
 Underutilized production capacity
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 Consultants
 Every company is at risk of becoming blinded to reality
by the influence of company culture
SWOT Analysis

External
Opportunities Threats
Internal

Strengths SO ST
Weakness WO WT
 Corporate Planning
Step 1: Step 2: Step 3: Step 4: Step 5:
Corporate Manageme Objective Plans Corporate
Financial nt Audit and Plans
Objective Strategy
Setting
Targeted Marketing Marketing Marketing Issue:
Growth in Distribution Distribution Distribution corporate
Sales and Manufacturi Manufacturi Manufacturi objectives
earnings ng ng ng and
Financial Financial Financial
strategies
Marketing
Personnel Personnel Personnel “
…
Elements of
Corporate Plan
1. The desire level of profitability
2. Business boundaries
• What 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)
3. Other corporate objectives
• Social Responsibility and corporate
• Stock-market
• Employer image
 Assumptions

 This 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,
 Critical
 and few in Number
 Consistent with relevant known
facts
 With defensible assumptions
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.
 Marketing Objectives and
Strategies
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid

Existing New
Products Products

Existing 1. Market 3. Product

Markets Penetration Development

New 2. Market
Markets Development 4. Diversification
 Use of Marketing Plan

To determine:
 Where the company is now,
 Where it wants to go,
 How to get there

Includes:
 Advertising Plan
 Sales Promotion Plan
 Pricing Plan
 Distribution Plan
 Product Plan
 Target Market Plan
The Marketing Budget

 To justify all marketing expenditures from a zero base

each year against the task that you wish to
accomplish.
 Mission Statements

 It is one of the most difficult aspects of

marketing planning to master, largely
because it is philosophical and
qualitative in nature.
 Key points:
1. Role or Contribution
 Profit
 Service
 Opportunity seeker
2. Business definition
3. Core Competencies
4. Company/Division Positioning
5. Indications for the future
Types of Mission Statements

 Motherhood
It found in annual reports designed to
“stroke” shareholders/Non Practical Use
 The Real Thing
Meaningful Statement/impact on the
behavior of the executives at all levels.
 Purpose Statement
Lower-Level mission
statement/Appropriate on the strategic
business unit, departmental or product
group level of the organization.
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
 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
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.
A Goal is a dream
with a deadline

Zig Zaglar