Introduction

IntroductionMarketingis a process of developing and implementing plans to identify and satisfy customer needs and wants with the objective of customer satisfaction and profits making. The main elements of marketing planning are - market research to identify and anticipate customer needs and wants; and planning of appropriate marketing mix to meet market requirements/demands.

Definition of Marketing Planning"Marketing Planningis the process of developing marketing plan incorporating overall marketing objectives, strategies, and programs of actions designed to achieve these objectives."

Marketing Planning involves setting objectives and targets, and communicating these targets to people responsible to achieve them. It also involves careful examination of all strategic issues, including the business environment, the market itself, the corporate mission statement, competitors, and organisational capabilities.

Marketing Planning ProcessMarketing planning process is aseriesof stages that are usually followed in a sequence. Organisations can adapt their marketing plan to suit the circumstances and their requirements. Marketing planning process involves both the development of objectives and specifications for how to achieve the objectives. Following are the steps involved in a marketing plan.

1) MissionMission is the reason for which an organisation exists. Mission statement is a straightforward statement that shows why an organisation is in business, provides basic guidelines for further planning, and establishes broad parameters for the future. Many of the useful mission statements motivates staff and customers.

2) Corporate ObjectivesObjectives are the set of goals to be achieved within a specified period of time. Corporate objectives are most important goals the organisation as a whole wishes to achieve within a specified period of time, say one or five years.

All the departments of an organisation including marketing departmentworksin harmony to achieve the corporate objectives of the organisation. Marketing department mustappreciatethe corporate objectives and ensure its actions and decisions support the overall objectives of the organisation.

Mission statement and corporate objectives are determined by the top level management (including Board of Directors) of the organisation. The rest of the steps of marketing planning process are performed by marketing department. All the actions anddecisionsof the marketing department must be directed to achieve organisation mission and its corporate objectives.

3) Marketing AuditMarketing audit helps in analysing and evaluating the marketing strategies, activities, problems, goals, and results. Marketing audit is done to check all the aspects of business directly related to marketing department. It is done not only at the beginning of the marketing planning process but, also at a series of points during the implementation of plan. The marketing audit clarifies opportunities and threats, so that required alterations can be done to the plan if necessary.

4) SWOT AnalysisThe information gathered through the marketing audit process is used in development of SWOT Analysis. It is a look at organisation's marketing efforts, and its strengths, weaknesses, opportunities, and threats related to marketing functions. Strengths and Weaknessesare factors inside the organisation that can be controlled by the organisation. USP of a product can be the example of strength, whereas lack of innovation can be the example of weakness. Opportunities and Threatsare factors outside the organisation which are beyond the direct control of an organisation. Festive season can be an example of opportunity to make maximum sales, whereas increasing FDI in a nation can be the example of threat to domestic players of that nation.5) Marketing AssumptionsA good marketing plan is based on deep customer understanding and knowledge, but it is not possible to know everything about the customer, so lot of different things are assumed about customer.Forexample:- Target Buyer Assumptions- assumptions about who the target buyers are. Messaging/Offering Assumptions- assumptions about what customers think are the most important features of product to be offered.6) Marketing Objectives and StrategiesAfter identification of opportunities and challenges, the next step is to develop marketing objectives that indicate the end state to achieve. Marketing objective reflects what an organisation can accomplish through marketing in thecomingyears.

Objective identify the end point to achieve. Marketing strategies are formed to achieve the marketing objectives. Marketing strategies are formed to determine how to achieve those end points. Strategies are broad statements of activities to be performed to achieve those end points.

7) Forecast the Expected ResultsMarketing managers have to forecast the expected results. They have to project the future numbers, characteristics, and trends in the target market. Without proper forecasting, the marketing plan could have unrealistic goals or fall short on what is promised to deliver. Forecasting Customer Response- Marketing managers have to forecast the response that the average customers will have to marketing efforts. Without some idea how the marketing will be received, managers can't accurately plan the promotions. Forecasting Marketing cost- To make the marketing plan stronger, accurate forecast of marketing cost is required to be done. Forecasting the Market- To accurately forecast the market, marketing managers have to gain an intimate understanding of customers, their buying behaviour, and tendencies. Forecasting the Competition- Forecast of competition like - what they market, how they market, what incentives they use in their marketing can help to counter what they are doing.8) Create Alternative PlanA alternate marketing plan is created and kept ready to be implement at the place of primary marketing plan if the whole or some part of the primary marketing plan is dropped.

9) Marketing BudgetThe marketing budget is the process of documenting the expected costs of the proposed marketing plan. One common method to allocate marketing budgeting is based on a percentage of revenue. Other methods are -comparative, all you canafford, and task method.

10) Implementation and EvaluationAt this stage the marketing team is ready to actually start putting their plans into action. This may involve spending money on advertising, launching new products, interacting with potential new customers, opening new retail outlets etc.

The marketing planning process is required to be evaluated and updated regular. Regular evaluation of marketing efforts helps in achieving marketing goals.

It is necessary to discuss strategic market planning and marketing early in the course. A strategic market plan gives direction to a firm's efforts and better enables it to understand the dimensions of marketing research, consumer analysis, and product, distribution, promotion, and price planning, which will be discussed in later classes.We will look at an overview of the strategic marketing process including the development of: SWOT Analysis Mission Statement Organizational Goals Corporate Strategy Marketing strategyThe strategic market plan is not a marketing plan, it is a plan of all aspects of an organizations strategy in the market place.The process of strategic market planning yeilds a marketing strategy(s) that is the framework and the development of the marketing plan.Developing a marketing plan is your group project assignment. A marketing plan deals primarily with implementing the market strategy as it relates totarget market(s)and themarketing mix.Return to Contents ListStrategic Market PlanningA Strategic marketing plan is an outline of the methods and resources required to achieve organizational goals within a specific target market(s)."Describes the direction [an organization] will pursue within its chosen environment and guides the allocation of resources and effort" - Peter Bennett, Dictionary of Marketing Terms, AMA 1988Strategic planning requires a general marketing orientation rather than a narrow functional orientation.All functional areas must include marketing and must be coordinated to reach organizational goals. It is a heirarchal process, from company wide to marketing specific. (Marketing concept, implemented from top down.)A firm can be broken down into several strategic business units. Each SBU is a division, product line, or other profit center within the parent company.An SBU has its own strategic plan and can be considered a seperate business entity competing with other SBU's for corporate resources.For example Pepsico Companies SBUs include: KFC Taco Bell Pizza Hut Mountain Dew Lipton Tea Brands Frito LayIE The College of Business and Economics is an SBU of the University of Delaware.A strategic plan gives: Direction and better enables the company to understand mkt. function dimensions Makes sure that each division has clear integrated goals Different functional areas are encouraged to coordinate Assesses SW & OT Assesses alternative actions It is a basis for allocating company resources A procedure to assess company performanceThe strategic planning process may include the following, although this differs from one organization to another: Develop a SWOT analysis Develop Mission Statement that evolves from the SWOT analysis Develop Corporate Objectives that are consistent with the organization's mission statement. Develop corporate strategy to achieve the organization's objectives.[if the organization is made up of more than one SBU, then follow loop again for each SBU, then proceed] Marketing (and other functional objectives) must be designed to achieve the corporate objectives Marketing Strategy, designed to achieve the marketing objectives.The strategic market planning process is based on the establishment of organizational goals and it must stay within the broader limits of the organizations mission, that is developed taking into consideration the environmental opportunities and threats and the companies resources and distinct competancies.A firm can then assess its opportunities and develop a corporate strategy. Marketing objectives must be designed so that they can be accomplished through efficient use of the firms resources.Corporate strategyis concerned with issues such as diversification, competition, differentiation, interrelationships between business units and environmental issues. It attempts to match the resources of the organization with the opportunities and risks of the environment (SWOT). Corporate strategy is also concerned with defining the scope and roles of the SBU's of the firm so that they are coordinated to reach the ends desired.Return to Contents ListSWOT AnalysisA SWOT Analysis examines the companies: Strengths...Internal Weaknesses...Internal Opportunites...External Threats...ExternalBy developing a SWOT analysis, a company can determine what its distinctive competancies are. This will help determine what the organizationshouldbe in business for, what itsmissionshould be.Return to ContentsMission StatementHandout Visioning Missions becomes...Reason to be? Invisible hand etc.Product Terms...outdatedTechnology Terms...outdatedMarket Terms...keep in touch with consumer's needsi.e. AT&T is in the communications businessnotthe telephone business.Visa...allows customers to exchange values...not credit cards3M solves problems by putting innovation to work.Should not be too narrow...or...too broadShould be based on distinctive competancies of the corporation, determined from the SWOT analysisThe following areexample mission statementsReturn to Contents ListOrganizational goalsOrganizational goals are derived from the mission, corporate strategy is derived from the organizational goals.Goals must specify the end results that are desired, that are measurable and within a particular time frame.SMAC Specific Measurable Achieveable ConsistentReturn to Contents ListCorporate StrategyIssues include: Scope of Business-----What Business you are in?? Resource deployment----How you are going to use your resources?? Competitive advantage----What are your competitive advantages?? Coordination of Production, Marketing, Personnel etc.---- Coordination process??Tools for strategic market planningThe following are some of the many tools that are used in developing corporate strategy, they are supplements not substitutes for management's own judgement: BCG Product Portfolio Management Star Cash Cow Problem Child (Question Marks) Dog SWOT analysis Product Life Cycle ConceptA separate strategy is needed for each SBU Intense Growth-mkt penetration/development, product development in related markets. Market Penetration...more products to the same market Market Development...same product to new markets Product Development...new products to same market Diversified Growth-new products new markets Horizontal (unrelated products to current markets)/Concentric (NPNM) Integrated growthForward/Backward/HorizontalDisney's Purchase of Capital Citys/ABC, a content provider purchasing distributionHandout Mattel Toy....Handout Ben & Jerry's New CEO...What should B&J do?Develop SWOT AnalysisPropose MissionGoalsStrategy: Market Penetration Market Development Product Development DiversificationBen & Jerry's HomepageBen & Jerry's SWOT AnalysisReturn to Contents ListMarketing Planning.Marketing plans vary by: Duration Scope Method of Development, bottom up/top downObjective is to create a Marketing plan. A plan for each marketing strategy developed.Marketing strategy encompasses selecting and analysing thetarget market(s)and creating and maintaining an appropriatemarketing mixthat satisfies the target market and company. A Marketing strategy articulates a plan for the best use of the organizations resources and tactics to meet its objectives. Do not pursue projects that are outside the companies objectives or that stretch the companies resources.Plan includes: Executive summary Situation Analysis Opportunity and Threat Analysis Environmental Analysis Company Resources Marketing Objectives Marketing Strategies to include: Target market(Intended) A target market is group of persons/companies for whom a firm creates and maintains a Marketing Mix that specifically fits the needs and preferences of that group. Does the company have the resources to create the appropriate MM and does it meet the company's objectives. Develop amarketing mix-how to reach the target market. The marketing mix is designed around the buying motive-emphasizing the marketing concept. The marketing environment effects the marketing mix, which is only controllable to a certain extent (the MM). Before developing the MM, need to determine the needs of the target market. Financial Projections Controls and EvaluationsMarketing control process consists of establishing performance standards, evaluating the actual performance by comparing it with the actual standards, and reducing the difference between the desired and actual performance.

Strategic marketing planning is the process that the operational and managerial staff of a company goes through to create and implement effective marketing strategies. Strategic marketing planning takes several aspects of company marketing and promotion into consideration. The aspects that contribute to strategic marketing planning include identifying promotional opportunities and evaluating the marketing opportunities; researching, analyzing and identifying the target markets; developing a strategic position for the company to pursue and how to implement the strategy; preparation and implementation of the marketing plan; and measuring and evaluating the results of the marketing efforts of the company.Strategic Marketing PlansStrategic marketing planning involves combining customer experiences with the overall direction the company wants and needs to take in order to succeed. For example, market segmentation plays a vital role in strategic marketing. Geographic and demographic differences in a companys target markets can affect the purchasing habits of consumers. Strategic marketing planning allows companies to go through the process of identifying what these differences are, and then adjusting marketing messages and presentation of the company and the products and services of the business to meet the individual needs of the different segments of the market.For example, the Baby Boomers generation has created a surge in need for products and services that range drastically. Some companies have adjusted existing products and services to meet the increase in demand, while other companies with the foresight to strategically plan for the increase, developed new products and services to meet the demand.UseOnce a strategic marketing plan is in place, the company can use the plan as a guide in conducting its daily business as well as making short-term and long-term decisions. Implementation of the strategic marketing plan typically leads companies to the tactical marketing portion of conducting business. The strategic marketing plan transitions into the companys plan for product and service development; the communication plan on how the company intends on promoting the business offerings; developing the sales plan; and finally putting together the customer service plan on how the company intends on interacting with current and potential customers.Related Reading:Business-Plan Marketing StrategyBenefitsThe primary benefit of a strategic marketing plan is that it puts a written guide in place for a business to follow to reach its goals and objectives. The second major advantage of strategic marketing planning is that is allows the business to create and utilize consistent messaging internally and externally. Consistent messaging in marketing creates efficient companies because employees and customers understand what the company offers and how the company offers it. They work toward a common goal. Efficient companies typically see an increase in revenues and market share, while it sees a decrease in expenses. Ultimately, it all leads to an increase in company profitability.Time FrameStrategic marketing planning is not a one-time action, but rather an ongoing process. Typically, a company creates a strategic marketing plan that covers short-term (one year) and long-term (two year, three year and five year plans) periods. When a strategic marketing plan is put in place, the company uses it as a guide for six months to one year at a time. The company then evaluates the strategic plan by measuring the results of the marketing programs the plan put in place. After evaluating the strategic marketing plan on a six-month or one-year basis, the company may tweak the plan to improve efforts that didnt go as planned or to mimic the results of plans that achieved success.ConsiderationsEffective strategic marketing planning requires companies to conduct a great deal of research and to really get to know its target market. Companies need to fully get to know who the target market is, how they think and feel, what they do, how old they are, where they live, what their hobbies are and more. Companies need to be able to live, think, breathe and feel like their target market to develop products and services that fit the needs of the target market. Companies need to remember that product and service development needs to have an existing marketing to sell, rather than developing products and services, and then seeking out a target market in which to sell it.