Week 1: What is marketing planning? Flashcards
What is the role of a marketing manager?
- Collect & analyse background product category data
- Utilise background analysis for marketing strategy development
- Implement the strategy via the marketing mix
The planning process gives you the tools &techniques to conduct each of these three steps
What’s the point in planning?
To ensure survival of the product
To compete effectively & efficiently (resources & market)
- we do a much better job if we plan
To expand horizontally and laterally
To motivate employees
- Guides people
To satisfy the firm’s responsibility to all stakeholders
- Public (shareholders)
- Customers
- Employees
What is strategic planning?
“The process of developing & maintaining a strategic fit between the organisation’s goals and capabilities and changing the market opportunities”
What does the organisation want? What can they do?
What does the market want?
Create a fit between the two through strategies & tactics
What are the steps of “Strategic Planning”?
- Defining the company mission
- Corporate level - Setting company objectives and goals
- Corporate level - Designing the business portfolio
- Corporate level - Planning, marketing & other functional strategies
- SBU & product level
What are the elements of the “Planning Process”
Diagnosis:
- Where does the organisation stand right now?
Forecast:
- Where is the organisation headed?
Objectives:
- Where should the organisation go?
Strategy:
- How should the organisation get there?
Tactics:
- What means should be used by the organisations to get there?
Feedback/Control:
- How should the organisation measure its progress?
What is the Marketing “Planning Sequence?”
8 STEPS
- Update historical data
- Collect current situation data
- Data analysis
- Develop objectives, strategies & tactics
- Develop financial documents
- Negotiate final plan
- Measure progress towards objectives
- Audit marketing performance
IT’S A CYCLE
IT THEN GOES BACK TO STEP 1
What does a good plan explain?
4 POINTS
- What a firm wants to accomplish (objectives)
- How the firm plans to accomplish objectives (marketing strategies)
- How strategies should be implemented
- What resources are required to implement a plan
What are the characteristics of a good marketing plan??
- Strong top management support
- Financially otherwise can’t implement - Compiled by staff
- More likely to be successful
- Staff know more about company - Thoroughly researched
- External competitive focus
- Proactive/Visionary
- Personalised/Specific
- Continually revised
A MARKETING PLAN IS NOT THE SAME AS A REPORT
What is a “Marketing Plan”?
” A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period”
Sections of a Marketing Plan
10 SECTIONS
- Business Definition & Scope
- Industry analysis
- Customer analysis
- Competitor analysis
- Internal analysis
- SWOT - Objectives
- Targeting & Positioning
- Strategies & Tactics
- Budget
- Action & Contingency Plan
What does a situational analysis include?
- The variables
Customer analysis
Competitor analysis
Industry analysis (context)
Internal analysis (company)
What are the elements of the “Marketing Mix”?
The 7 P’s
- People
- Place
- Price
- Product
- Promotion
- Process
- Physical evidence
ALL ELEMENTS REQUIRED TO CREATE SYNERGY
REQUIRES AN UNDERSTANDING OF THE SITUATIONAL VARIABLES
Contents of a “Marketing Plan”
Executive
Situation Analysis
- Industry
- Customers
- Competitor
- Internal
SWOT & TOWS
Objectives
Strategies
Tactics
Budget/Finances
Monitoring & Control & Contingency Plans
What is in an “Executive Summary”?
An overview of the situation facing the organisation
Must be detailed!
- Contains information necessary for the executive (your boss)
- Specify marketing objectives
- Specify strategies & tactics
- Specify financial outcome
What goes into a “Situation Analysis”?
- Business Definition & Scope
- Industry analysis
- Internal analysis
What goes into “Business Definition & Scope”?
part of situation analysis
Highlighted by mission statement & current objectives
Frames scope of entire plan
What goes into the “Industry Analysis”?
part of situation analysis
- Industry
- size, growth, industry structure, competitive structure, channels, dynamics, power - Macro
- economic, socio-cultural, political-legal technological, natural - Critical Success Factors
- What are the few factors that are necessary for success in this industry?
- They allow the firm to gain a competitive advantage
What goes into the “Internal Analysis”?
part of situation analysis
- How are we performing?
- metrics and tools of analysis
- what do we do well?
- what do we do badly? - What skills do we have?
- What resources do we have?
- What are we capable of doing in the future?
- Think marketing mix (4 or 7 Ps)
What are “SWOT AND TOWS”
SWOT summarises information from the analysis
TOWS uses information from the SWOT to identify issues and inform strategy development
What are Issues & Objectives?
“Where do we want to go?”
What ISSUES have become apparent from analysis of internal (strengths & weaknesses) & external environment (opportunities & threats)
An OBJECTIVE is an end to be achieved
- The objectives will address the issues defined
- SMART
Formulating Marketing Strategies
“How are you going to get there?”
- A strategy is a means to achieve an end (objective)
- Industry level positioning how can they SBU achieve and maintain a competitive advantage?
- Will you be a niche marketer, or a mass marketer?
- Will you be a market leader, or follower? - Marketing Mix
- Identify your target market
- Determine your positioning
- Develop appropriate strategies (7 P’s)
Formulating Tactics
“How are you going to get there?”
Action Plan / Tactics is very specific
WHO is going to do WHAT
WHEN are they going to do it
HOW including resources ($$ and others)
Finances & Budget
INCLUDE:
- Market & sales forecasts
- Profitability projections
Essentially a profit & loss statement for the planning period
Once approval for the budget is complete the plan can proceed
How much will it cost? How much will i make??
Monitor & Control
EVALUATE
ARE WE THERE?
All the activities undertaken in the previous stages
Performance measurement
- Compare what did happen to what you thought would happen
Contingency Plans
- What if performance is not what you expected?
- Modification of strategies where necessary/possible
- Modification of objectives where necessary/possible
- When do you decide to change?
Product level planning?
Corporate, SBU or Product?
Forecasting (all levels)
SWOT (product level)
Product analysis (Corporate/SBU level)
Marketing objectives & strategies (SBU or product level)
