[6] Market Planning Flashcards
Market Planning Def
A framework which aims at providing direction to the company so that the company’s activities constantly meet high performance objectives
The Market Planning Process [x8]
BUSINESS LEVEL: 1 Business Mission 2 Marketing Audit 3 SWOT Analysis 4 Marketing Objectives (Business & Product)
PRODUCT LEVEL: 5 Core Strategry 6 Marketing mix decisions 7 Organisation and Implementation 8 Control
1 Business Mission Def [author]
A broadly defined, enduring statement of purpose that distinguishes a business from others of its type (Ackoff 1987)
1 Business Mission
- Involves (x2)
- Explains … [author]
- It involves defining the scope and activities of the company
- It also involves taking environmental change under consideration
-It explains the reason for the company’s existence
It may include a statement of market, needs and technology (Abell 1980)
A good business mission is …
… Market-focused rather than product-focused
Business Mission
specific eg.. [prev, present]
IBM Prev:
Pc Manufacturer
Narrow
Too reliant on 1 product
IBM present – Provider of IT solutions Broader More encompassing Allows to seize new markets
Marketing Audit
Systematic examination of a business’s marketing environment, objectives, strategies and activities
Internal Aspects of Marketing Audit [x3]
Firm’s past performance (e.g. profits, share value)
Firm’s Market Orientation level
Firm’s systems - e.g. Marketing Information System
External aspects of marketing environment [x2 generic, deets for each (5,4)]
Macroenvironment (PEEST)
Microenvironment (customers, competition, distributors, suppliers)
x3 Reason for conducting a marketing audit
Key strategic issues
Problem areas
Opportunities
SWOT Analysis following Marketing audit:
- Whats Controllable/Uncontrollable?
- Conversion Strategies x2
- Matching strategy x1
Internal(controllable)
External(uncontrollable)
Conversion Strategies [w -> S & T -> O]
Matching strategy [S -> O]
Defining Marketing Objectives:
x2 Qs to ask
x2 variable often involved
Which product(s) should the firm sell?
In which markets should the firm sell such product(s)?
e.g. geographical markets, business segments
Core Strategy [x3 w/ Qs]
Target Markets: in which markets should we sell each product?
Competitor Targets: which companies should we compete with?
Competitive Advantage: how are we going to differentiate from competitors? (perceived benefits - perceived sacrifice)
Marketing mix decisions [x2]
x4 P’s
Common Mistake?
Should be consistent with the core strategy
Should deliver superior value to the customer
(product, price, place, promotion)
Common mistake: keeping the same marketing mix when moving from one target segment to another
Organisation and Implemenation Problems x3
A firm must be able to transform the plan into action
Organisational weaknesses may hinder full implementation of the marketing plan
Resistance may occur due to internal conflicts and power struggles
Control Systems:
-Evaluates….
- short term measures x3
- long term measure [assess fit between…]
Help to evaluate the results of the marketing plan
Short-term measures – e.g. sales, profits, cash flow
Long-term measures: Assess fit between marketing, internal environment, and external environment
Problems with Market Planning x 7 [load of bollocks]
Planning is inherently political
Managers may view the costs of ‘away days’ for long-term planning as too high
Reward systems may be linked to short-term results, which in turn may cause managers to overlook long-term goals and concerns
Information such as market share, size and growth rates may be unavailable or purposefully withheld
The marketing planning process may be at odds with the culture of the organisation
Personality clashes and arguments may surface
Lack of adequate knowledge and skills
