Marketing Planning

The Benefits of planning orientationEffective communication- from all departmentsMotivates- as it showcases what is required from each member of the organsation, there will also be greater commitment for successful implementationLeads to better decisions- as the whole planning process is reliant on looking at all the factors of an organisation clearly defining goals and objectivesFavourable attitude towards change- due in part to the better state of preparationEnables standards of performance- across all business functions so that all departments can be trackedISSUES:Top management not committed to the planning processPlan cannot be supported with current resources- small scale operations cannot support the planning functionUsing the wrong measures for success especially when these are in favour of short term results detriment of long term performanceBecomes a mindless ritual- rather than a forward thinking opportunity Senior staff battle with lower level staff for strategic inputSome departments withhold information vital to the planning processHughes: "Many marketing plans fail because the planner did not consider the fact that the organisation was not capable of implementing the plan. Short range plans will require adaptation to the existing organisation, whereas long range plans may require designing the organisation"

Corporate PlanningConcerned with long term organisational directionProvides the long term frame work for the organisationOverall orientation needed to match the organisation to the environmentGoals and strategies are evaluated from an overall perspectiveRelevance of goals and strategies is only evident in the long term

Marketing PlanningConcerned with day to day performance and resultsRepresents only one stage in the organisations developmentFunctional and professional orientations tend to predominateGoals are subdivided into specific targetsRelevance of goals and strategies is immediately evident

Applying Strategic planning/management toolsPorters three generic types of strategy:1. Cost LeadershipWays to achieve the strategySize and economies of scaleGlobalisationRelocating to low costs parts of the worldModification and simplification of designGreater labour effectivenessGreater operating effectivenessStrategic alliancesNew sources of supplyLearningCost linkagesInterrogationTimingSuperior labour and managementAdvanced technologySmart buyingBenefitsThe ability to out perform rivalsErect barriers to entryResist the five forcesPossible problemsVulnerable to even lower cost operationsPossible price warsThe difficulty in sustaining in the long term

2. FocusWays to achieve the strategyConcerntration on one or small number of segmentsThe creation of a strong specialist reputationBenefitsA more detailed understanding of particular segmentsThe creation of barriers to entryA reputation for specilisationThe ability to concentrate effortsPossibile ProblemsLimited opportunity for sector growthThe possibility of out growing the marketThe decline of the sectorA reputation for specilisation that ultimately inhibits growth and development into other sectors.

3. DifferentiationWays to achieve the strategyThe creation of strong brand indetitiesThe consistent pursuit of those factors that customers perceive to be importantHigh performance in one or more of a spectrum of activitiesThe creation of strategic breakpointsThe achievement of cost parity or cost proximity relative to competitors in all areasAdditional featuresPackaging innovationDistribution innovationSpeed of distributionDistribution breadth and depthHigher service levelsBetter after-sales serviceSuperior financing dealsGreater flexibilityFocused relationship buildingBenefitsA distance from others in the marketThe creation of a major competitive advantageFlexibilityPossible problemsDifficult to achieve and sustainPossible higher costsCreating differences that customers do not valueFocusing too much on the core productLosing competitor cost proximityFailing to develop barriers to deter imitation and customer switching

The Nature of Strategic PlanningA model that many marketers use to assist them in their strategic decision making is Ansoffs product marketing expansion grid.Market Penetration: When a firm attempts to increase market share in their current market e.g. Tesco conducting a price comparison promotion with SainsburysMarket Development StrategyManagement look for new markets whose needs are me by existing productsProduct Development StrategyThe organisation develops new features which enhance existing products and therefore add value and attract a premium priceDiversificationAn organisation develops new products for new marketsStrategic decisions are primarily concerned with external rather than internal problems of the firm and specifically with the selection of the product mix.Specific questions addressed in the strategic problems are:- What the firms objectives and goals are- How the firm should seek to diversify, in what areas and how vigorously- How the firm should develop and exploit its present product/marketing positionPlanning at a strategic level requires consideration of the following:- Measuring the strengths and weaknesses of the company relative to competitors -Defining the company's present and proposed business or businesses -Establishing a set of objectives both economic and social-Identifying constraints- Evaluating the long term potential of projects in spite of the difficulties of unreliable cashflow projections- Evaluating the synergic effects of the additions of new products/markets to the firm's sphere of operations- Selecting opportunities giving the firm outstanding competitive advantage- Handling allocation of the firms resources between opportunities in hand and probable future opportunities -Monitoring the environment for changes which pose "threats" and searching for attractive product opportunities

Using a Marketing PlanDelivery strategies and achieving objectivesAt the end of the planning process the organisation should have a detailed document or process which showcases:Roles and responsibilitiesTechnology/tools neededTactical Requirements Measurement criteria and toolsThe budgetThe staffing requirementsImplementing a marketing projectThere is a need for a plan or "project bible"There are usually many elements involved and the project plan needs to be understood by all It will allow the marketing manager to organise, implement and control the project to ensure successful completionThe planning process should include all those involved in the execution of the plan There should be a contingency plan e.g. to respond to demand of an attractive offerMonitoring a timeline progress against scheduleA detailed timeline of actions and requirements will be created in order to meet the objective or strategic deadlineThe timeline will allow the project manager to make sure all areas are running on time, to schedule and to budgetThe timeline is often added to the internet so all involved can see the plan If electronic versions are not available there should be regular meetings to ensure all targets are being metManaging implementationAs the detail within the plan is clearly laid out and covers all areas required for strategic and objective achievement it does not allow for organisational drifters working towards seperate goals. The plan will be a detailed outline of tactical activity as well as timed targets to be achieved Resource Management (human and physical)Part of the plan includes assigning roles and responsibilities to various tasksMeasurement of a successful planTime- is the plan running to schedule?Budget- is the plan on budget?Objectives/strategies- is the plan working to achieve them?Planning is a continuous process- good plans facilitate control: control follows from planning.3 possibilities for a plan not meeting expectations:1. The objectives and premise upon which the plans are based were false2. The objectives were correct and the plans were wrong3. No allowances were made for uncontrollable events

As long as the following are in order then the marketing plan should work effectively:Objectives are SMARTThe plan is simple to understandThe plan is appropriate for the companyThe plan is feasibleIt should be comprehensiveIt should be flexibleIt should include a scheduleIt should include a budgetA plan should be writtenA good plan facilitates implementationA plan should be reviewedA good plan facilitates control- control flows from planning

Different Stages of the Planning Process1. Corporate objectives/business missionObjectives must be SMARTMission statements should be made up or corporate goals and communicated to all staffOnce the objectives have been established they will set the content for: The schedule of activityThe measures and controls needed for monitoringThe resources needed for implementationMarketing AuditShould cover all of the marketing activities of the organisationSystematic investigation of the organisations macro and micro environmentIt should reveal aspects of where to improve and lead to appropriate action plans to secure these improvementsThe audit should cover the marketing environmentThe audit should be carried out by a seperate auditing functionSetting business and marketing objectivesWill be developed as sub objectives of the corporate onesThey will be more tactically based in terms of their descriptionMarketing strategiesWill be mini plans allowing all plan implementers to see what the focus and direction is in one paragraphMarketing Tactics"How are we going to get there" part of the plan but include a lot more detail than strategiesThe marketing manager should be able to provide a document of tactics to their staff and they should be able to implement the project from thisImplementationShould only happen if the planning process is completed and all parties are satisfied with the outcomeThere should be consistent communication between parties to ensure the plan is on schedule and on budgetMonitor and ControlSet specific performance standardsIdentify responsibilityEvaluate performance against standardsTake corrective action by communicating with whoever is responsible, advising, reassessing and altering the planWhat happened?How does this compare with our performance standards?What has caused the difference?What action needs to be taken?What resources are available to do it?Who is going to handle it?Marketers need to to keep checking on:Actual sales against marketing costs against budgetUnit performance by individualsMacro environment trends and disturbancesMicro environment movements and influencesCompetitor intelligenceMedia coverage of new products, people and eventsCustomer feedbackContinuing fit of strategyCorporate activity

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