Marketing Planning

Lecture 3Osmani sofiane

Marketing Plan

Learning Objectives

By the end of this session, you should be able to:

Explain the role and benefits of marketing planning

Identify the stages in the Planning Process

Understand a range of analysis tools To appreciate the role of marketing

control and evaluation

“A systematic processsystematic process of forecastingforecasting the future business environment environment and deciding on the most most appropriate goalsappropriate goals, objectives and positionsobjectives and positions for

best exploiting that environment.”

Planning is an activity activity and aand a process process = formalised

The marketing PLAN;PLAN;“Provides clear and unambiguousclear and unambiguous statement [of intent] about

the strategies and actionsstrategies and actions that will be implemented, by implemented, by whom, when and whom, when and with what with what [anticipated/required]

outcomes.”outcomes.”

Planning: DefinitionsPlanning: Definitions

Kotler et al (2005)

Why Plan?

Planning helps:to develop systematic, long-term thinkingto create an organised approachto develop specificity & consistencyto get agreement from colleagues &

support from non-marketers• common goals and mutual benefits

to identify sources of competitive advantage

Brassington & Pettitt, (2006)

Benefits of PlanningBenefits of Planning

Rationale for planning

1) Why are we here?• What business are we in?

2) Where are we now? = S&W

3) What issues do we face?• PESTLE analysis / =O&T

4) Where do we want to be?• Goals vs. capabilities

5) How do we get there?• Activities and Controls

Planning should answer questions including:Planning should answer questions including:

Planning coordinates all marketing activity

Last semester in Principles of Marketing, we looked one-by-one at many elements of a Marketing Plan, so now we need to link these together:

Environmental analysis: PESTLE, SWOT Understanding customers: Buyer Behaviour Setting strategy: Segmentation, targeting and

positioning 4P’s/ 7P’s Marketing Mix: Marketing Programme

Measurement & Review

Planning framework McDonald (2007)

Environmental analysis: PESTLE, SWOT

Understanding customers: Buyer Behaviour

Segmentation, targeting and positioning

4P’s/ 7P’s Marketing Mix

Phase One – Goal Setting

1. Mission

2. Corporate Objectives

Phase Two – Situation

Review

3. Marketing Audit

4. SWOT Analyses

5. Assumptions

= Core strategyPhase

Three – Strategy

Formation

6. Marketing objectives & strategies

7. Estimated results

8. Alternative plans & mixes

Phase Four – Resource Allocation & Monitoring

9. Budget

10. 1st yr detailed implementation plan

Other Authors’ suggested contentsOther Authors’ suggested contents

Brassington & Pettitt, (2006)

1 2 3

456

7 8

Marketing Planning for Marketing Planning for Small Businesses (SME)Small Businesses (SME)

Brassington & Pettitt, (2006)

Executive Summary / Mission statement

Should contain: brief overview of the proposed plan main objectives & recommendations clear indication of timescales involved And allow senior management to quickly grasp

the plan’s major points

Day (1990) 4 characteristics of effective mission statements:

1) Future oriented2) Reflects value and orientations of the leader3) States strategic purpose4) Enabling – provides clear guidelines for each SBU

Group Vision & Mission

Mission statement or Corporate objectives

Sets out: Specific long-term objectives for the company

and organisation as a whole Like all objectives, should be SMART:

Specific, Measurable, Actionable, Realistic, Timed

Objectives will include:Performance ObjectivesDirectional ObjectivesExternal Objectives Internal Objectives

Current marketing situation or AUDIT

Should include:Market situationCompetitive situationMacro environment situation

• (PESTLE)Product situationPrice situationPromotion situationPlace (distribution) situation

Internal

External

Internal

&

External

Situation AuditExternal Factors

Macro Environment

Political

Economic

Social/Cultural

Technological

Legal

Environmental (CSR/Green/Ethics)

Micro Environment

Competitors

Suppliers

Distributors

Customers/Market Trends

Internal Factors

Position

Financial Situation

Market Position

Operations

Marketing Research

Products

Pricing

Selling and Distribution

Advertising and Sales Promotion

Capability

Organizational Structure

Management and Workforce

Capability for Change

SWOT Analysis

INTERNAL FACTORS

past and present

EXTERNAL FACTORS

past and present ACTION:

STRENGTHS

Build on themEmphasise in promotional campaigns

OPPORTUNITIESExploit them if possible

Need to be identified and researched via environmental scanning and analysis

WEAKNESSES

Eliminate them if possibleCircumvent them

THREATS

Develop contingency plans

Must be addressed by

Marketing Plan decisions

Opportunity and issue Analysis

Should include: Strengths and Weaknesses Opportunities and Threats

Issue analysis defining the main or

critical issues / critical issues / CSFCSF’’s s (issues given priority weightings)(issues given priority weightings)

the plan must address

Setting Objectives

Types of Objectives:• Quantitative targets - e.g. financial, operating, etc.• Philosophical targets - vision and values.• Qualitative targets - service levels, etc.

These are be expressed in terms of: Corporate objectives Marketing objectives Financial objectives

Objectives need prioritising and to be SMART:

SSpecific MMeasurable AAchievable (Actionable) RRealistic TTimed (timescale provided)

Qualitative targetsQualitative targets

Brassington & Pettitt, (2006)

Marketing Strategy

Includes:target market positioningmarketing mixcustomer serviceresearch and developmentmarketing research

Strategic Actions provide the means by which a company sets out to achieve its marketing

objectives. Achieved by (one or more):

• Repositioning the product

• Improving product packaging / other mix elements

• Amending prices

• Improving productivity

• Standardisation

• Changing sales or customer mix

Marketing Marketing Strategies and ActionsStrategies and Actions

Action Programmes

Attempts to answer:what will be done?when?who by?

• at what cost and using which resources?

Marketing & other Departments

Marketing has a bridging / integration role with other operational departments:Research & Development (R&D)EngineeringPurchasingManufacturingOperationsFinance & AccountsCredit

Marketing plan:Marketing plan:

• Turning strategies into implementable actions.implementable actions.

• A detailed written statement specifying target markets, target markets, marketing programmes, responsibilities, time scales and marketing programmes, responsibilities, time scales and resourcesresources to be used within the defined budgetsdefined budgets.

Marketing (Action) programmes: Marketing (Action) programmes:

• Actions,Actions, often tactical, using marketing mix variablestactical, using marketing mix variables to gain advantage within target market.

• Specify Specify means of implementingimplementing the marketing strategy.

• Detailed Detailed as part of the marketing planmarketing plan.

Marketing ProgrammeMarketing ProgrammeSample from Boudler

Stop Café

Control and Evaluation ProcessControl and Evaluation Process

Brassington & Pettitt, (2006)

Measures include:

•performance measurements

•evaluation mechanisms

•feedback mechanisms

•contingency planning

•Budgets / Profit & Loss

Marketing Marketing Costs and Profitability Costs and Profitability AnalysisAnalysis

Brassington & Pettitt, (2006)

Problems with planningCompanies become obsessed with the processprocess or

technique rather than the actual content and delivery of the plan!!

Unreliable or insufficient market research data can make plans flawed from beginning!New companies

• too busy?Small companies

• not important/ no skills/ restrictive?Mature companies

• Unnecessary / cumbersome?Fast changing markets

• not useful / responsive?

However all organisations should plan!

Marketing Planning is Essential!

Conflicting pressures make choices difficult:

Enhancing customer service

Short-term profit

Revenue maximisation

Cost minimisation

Long-term value creation

Increasing profitabilityVs.

Vs.

Vs.

Further reading

Chapters as per Unit handbook.Texts: Burk Wood, M., (2007). Essential guide to Marketing Planning. Harlow:

FT Prentice Hall. Hatton (2000). The definitive guide to marketing planning. Kotler,(2003). Marketing Management. McDonald, M., (2005). Marketing Plans: how to prepare them, how to

use them. Oxford: Elsevier/Butterworth-Heinemann. McDonald & Payne, (2006) (2e). Marketing plans for service businesses. Westwood, (2004) (2e). How to write a marketing plan.

Journal articles: Gilmore, Carson, & Grant (2001). SME marketing in practice. Marketing

Intelligence and Planning. 19 (1), p6-11. Greenley, Hooley & Saunders. (2004). Management processes in

marketing planning. European Journal of Marketing. 38 (8), p933-955 .