Marketing Plan Authors: Prof. Keegan, Prof. Malcolm Presenters: M. AzadiPresenters: M. Azadi M. M. TabatabaeiTabatabaei Chapter 8 Objectives nMarketing planning nTactical and Strategic Marketing Plans nMarketing planning process nMarketing audits nCorporate Planning nAssumptions nMarketing Objectives nMarketing Strategy nMarketing Program nMission statements Marketing Planning nAn 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 Market Needs Wants Strengths of organization Weakness of organization Existing competitors Expected competitors Design for creating value Marketing Planning Process Definition: nThe application of marketing resources to achieve marketing objectives. Marketing Planning Process Performing a situation analysis Formulating basic assumptions Setting objectives for what is being sold and to whom Deciding how the objectives are to be achieved Scheduling and costing out the actions necessary for implementation Develop a Market Plan nManagement provides little guidance as to how the process should be managed. To Compromise between what is desirable and what is practicable nManagement must be customized to their particular organization Size Complexity Character and diversity of company operations Essential of Marketing Planning nWe need marketing planning when hostiles increased and environment is complex. Our Challenge nWe should manage: RevenueProfit Return on investment Cost Optimization Application of Marketing Plan To help identify sources of competitive advantage To force an organized approach To develop specificity To ensure consistent relationships To inform everyone in the organization about priorities To obtain resources needed to implement plans To engage organizational support at all levels, form the bottom to the top of the organization To set objectives and strategies To gain commitment towards goals The Elements of Strategy Stepping back form the day to day Ideas and thought Activity/Action Setting Objectives and goals Important decisions and choices Significant commitment of resources Not easily reversible Involves choice/tradeoffs Differentiation Insight Vision Defines the business we are in Defines the business we are becoming Value Tradeoffs Objectives and goals Strategy Vs. Tactics Strategic Plan Definition: nA 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: nThe direction a business will pursue and guides the allocation of resources and effort nThe business we are in and becoming. And provides: nThe logic that integrates the Perspectives of functional departments and operating units and points them all in the same direction. Strategy Statement nThe strategy statement for a business unit is composed of the following three elements: A business definition that specifies the area in which the business will compete. A strategic thrust that describes where competitive advantage is to be gained. Supportive functional strategies. Marketing Strategy Definition: nIt is a statement of how a brand or product line will achieve its objectives nIt 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 Develop the strategic marketing plan. Scanning the external environment Identifying early on the effect this may have on the company 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: Executive summary Mission Statement Financial Summary of revenue, expenses and earnings Marketing audit SWOT analysis Assumption of key determinants Overall marketing objectives and strategies Expected results Alternatives (contingency plan) Budget Stages of Marketing Plan 1. Mission 2. Corporate objectives 3. Marketing audit 4.SWOT analysis 5. Assumptions 6. Marketing objective and strategies 7. Estimate expected result 8. Identity alternative plans and mixes 9. Budget 10. First year detailed implementation program Phase one - Goal Setting Phase Two Situation Review Phase Three -Strategy Formulation