Marketing Planning (Msk)

7/29/2019 Marketing Planning (Msk)

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MARKETING PLANNING

MARKETING SOCIETY OF KENYA

BYB.W.MAINA



DEFINITION OF PLANNING

The process of setting objectives and

determining the means for achieving them.

Planning involves decisions on:

What to do in the future - Objectives

How to do it - Strategy

When to do it - Tactics Who is to do it - Tactics



PLANNING PROCESS

• To decide objectives for the organization.

• To identify alternative ways of achieving

them.• To select the best course of action for the

organization as a whole and also for

individuals, departments and sectionswithin it.



ON IMPORTANCE OF PLANNING

If you do not know where you are going

any road will take you there.

There are three kinds of people:Those who make things happen;

Those who watch things happen; and

Those who wonder what happened.

Q: Which road should l take? A: That depends on where you are going.

- Alice in Wonderland



PURPOSE OF PLANNING

• To give direction to future operations.

• To make a conscious effort to influence the

future.

• To reduce future uncertainty and risk.• To enhance organizational success.

• To optimize resource utilization.

• To prevent the organization from straying.

• To provide focus to the organization.• To ensure consistency inaction and

expenditures.



STRATEGIC AND OPERATIONAL/

TACTICAL PLANNING

Strategic Planning:• Sets or changes the basic objectives and strategies of

an organization.

• Provides guidance and direction to organizational

activities.

Operational/Tactical planning:• Concerned with decisions about the efficient and

effective use of an organization‟s resources.

• Defines tasks and activities to be undertaken in order to achieve the desired objectives.

• Considers timing and responsibilities for action requiredto achieve the objectives.



CORPORATE PLANNING

• Involves the whole organization and isundertaken at the corporate level.

• It is a comprehensive future-oriented

process.• It is concerned with both strategic and

operational planning.

• It incorporates monitoring and controlmechanisms.

• It can be either short- or long-term.



LEVELS OF STRATEGY

Corporate Strategies:• Concerned with the type of business the organization is

in or wants to be in.

• Consider how to enter or exit the industry.

Business Strategies:• Formulate strategies for strategic business units (SBUs).

• Consider how an organization approaches a particular product-market area.

Operational/Tactical Strategies:

• Involve devising strategies for functional areas.• Could cover marketing, production, finance, HRM, R&D

etc.



MARKETING PLANNING

A systematic process that involves:

Assessing marketing opportunities and resources,

Determining marketing objectives, and

Developing a thorough plan for implementation andcontrol.

The marketing planning process entails:

Analysis of the market place,

Developing or modifying the recommended marketing

strategy accordingly, and Developing detailed marketing mix programmes

designed to implement the specified marketing strategy.



MARKETING PLAN

• A document or blueprint that details

requirements for a company‟s marketing

activity.• The marketing plan governs all of a

business‟s marketing activities, including

implementation and control of thoseactivities,



PURPOSES OF MARKETING

PLAN• Offers a „road map‟ for implementing a company‟s

strategies and achieving its objectives.

• Assists in control and monitoring of implementationstrategy.

• Informs all parties of their role and function.• Specifies how resources are to be allocated.

• Stimulates thinking and makes better use of resources.

• Assigns responsibilities, tasks and timing.

• Makes participants aware of problems, opportunities and

threats.• Assists in ensuring the organization is customer-focused,

aware of market and competitive movements, realistic inexpectations, and prudent in its use of resources.



STRATEGIC MARKETING

PLANNING

• Focuses on the direction which an

organization will take in relation to a

specific market or set of markets, in order

to achieve a specified set of objectives.

• Focuses mainly on market segmentation,targeting and positioning.



OPERATIONAL MARKETINGPLANNING

• Defines the tasks and activities to be

undertaken in order to achieve the desired

strategy.

• Focuses on development of specific

product features, prices, promotion anddistribution systems (4Ps)



PLANNING PROCESS

• There is no ideal marketing plan for all

organizations since every planning

situation is unique.

• Hence there is no universal way of

establishing a marketing plan.

• However, some logical steps may be

followed in the planning process as

explained below.



STAGES IN PLANNING

PROCESS1. Development of organization‟s mission statement

2. Development of objectives

3. Internal analysis

4. External analysis

5. SWOT analysis

6. Strategy formulation

7. Specific plans

8. Implementation

9. Control

10. Evaluation



MISSION STATEMENT

• A prerequisite to the determination of

marketing plans is the definition of the

overall corporate mission.

• This is usually done by senior

management who seek to answer thequestions indicated below.



MISSION STATEMENT DEFINED

• Mission refers to the basic function that

an organization performs for its existence

• It indicates the organization‟s purpose or reason for existence i.e. what it wants

to accomplish by its existence.

• It provides the organization with focus anddirection.



MISSION STATEMENT:

QUESTIONS TO ASK In formulating a mission statement top

management seek answers to the followingquestions:

• What is our business and what should it be?

• Who are our customers?

• Exactly what do we provide them with?

• What is our distinctive competence or comparative advantage?

The answers to these questions help theorganization develop a distinctive character

or personality.



CHARACTERISTICS OF GOOD

MISSION STATEMENT• It should be clear and formally written.

• It should be visionary and offer clear guidelines tomanagement when considering the direction of businessdevelopment.

• The definition should be in terms of whatcustomer needs are being served rather than the productor services being produced.

• It should not be too broad or too narrow to avoid

losing focus or underestimating competition• It should be realistic and motivating.

• It should be based on the firm‟s distinctive competences



OBJECTIVES

• Objectives are the specific goals to be achievedwithin a specified period of time.

• They specify the expected results and are the

concrete ends to which activity is aimed.• Objectives can be formulated at corporate anddepartmental level.

• Corporate objectives define goals for the

organization as a whole.• Departmental objectives specify goals for

departments e.g. marketing objectives.



CHARACTERISTICS OF GOODOBJECTIVES

Good objectives should be „SMART‟ - an

acronym for:

• Specific – clear and precisely stated i.e. not

vague• Measurable – indicated in quantitative terms for

ease of verification.

• Achievable – attainable with available resources.

• Realistic – reasonable but challenging.• Time-defined – time-bound i.e. indicate when

they will be achieved.



MARKETING OBJECTIVES • A statement of what is to be accomplished through

marketing activities.

• Specifies the results expected from marketing efforts.

• They should expressed in clear, simple terms so that all

marketing personnel understand exactly what they aretrying to achieve

• They should be measurable with accuracy to be able

to verify accomplishment.

• They should indicate time frame for accomplishing the

objective.• They should be consistent with corporate objectives• They should be challenging to the marketing staff.



STATEMENT OF MARKETING

OBJECTIVESMarketing objectives could be stated in

terms of:

• Product introduction or innovation.

• Sales volume or value.

• Profitability per unit.

• Gains in market share for particular products

• Customer base target

• Improvements in customer satisfaction.

• Awareness of company‟s products.

Example: To increase the company‟s market share

of product X by 15% in the forthcoming year.



INTERNAL ANALYSIS

• The company should undertake internal analysis

of its resources, assets, performance and

capabilities to establish its current condition.

• This analysis constitutes a self-examination,

self-assessment or self-appraisal.

• It reveals the company‟s strengths and

weaknesses in areas which are within thecompany‟s control.



STRENGTHS AND WEAKNESSES • Strength – a particular skill or distinctive competence

which the organization possesses and which will aid it inachieving stated objectives. E.g. experience in specificmarkets, skills possessed by employees, good image

customer service.• Weakness – any aspect of the company which may

hinder the achievement of specific objectives e.g. lack of experience in certain markets, lack of financialresources.

• Distinctive competence – anything that a firm can dorelatively better than its competitors.



INTERNAL ANALYSISCOVERAGE

Internal analysis may cover the following areas:• Human resources – available skills, sales force performance

competences, experience, motivation levels

• Management – style, competences, support, values,

• Materials – supply sources, availability, reliability, quality, prices

• Production facilities – machine condition, age, capacity, efficiency• Organization – structure and suitability

• Financial condition – liquidity, availability of funds, profitability

• Products – acceptance, quality, availability, profitability, image

• Marketing – consider the 4Ps, market shares and sizes, portfolio

• Management information systems (MIS)



PEOPLE • Because services are provided by people, the

selection, training and motivation of employees

can make a huge difference in customer

satisfaction.• Ideally employees should exhibit competence, a

caring attitude, responsiveness, initiative,

problem-solving ability and goodwill.

• Service personnel should also be properly

empowered.



PHYSICAL EVIDENCE • Companies try to demonstrate their service

quality through physical evidence andpresentation.

• This could consist of appearance of service

personnel, appearance of facilities, and tools or equipment used to provide service.

• A hotel, for instance, will develop a look andobservable style of dealing with customers that

carries out its intended customer valueproposition, whether it is cleanliness, speed, or some other benefit.

• A doctor will be clean, well-dressed and withproper equipment for medical examination



PROCESS • Service companies can choose among

different processes to deliver their service.

• Restaurants have, for instance, developed

such different formats as cafeteria-type,fast food buffet and candle-light service.

• In delivering lectures overhead or LCD

projectors, white boards, chalk boards or flip charts could be used.



SERVICE ENCOUNTERS • Service marketing requires not only

external marketing but also internal and

interactive marketing

• This is the case for instance with cleaning

and maintenance services, financial and

banking services, and restaurant industry.



INTERNAL MARKETING • This describes the work done to train and

motivate employees to serve customers

well.• All organization‟s employees should

practice marketing including treating their

internal customers properly.



EXTERNAL MARKETING

This describes the normal work done by theOrganization to prepare, price, distribute,

And promote the service to customers.



INTERACTIVE MARKETING • This describes the employees‟ skills in serving the client. • The perceived quality of a service depends heavily on

the buyer-seller interaction during the service encounter.

• The service quality depends on both the service

deliverer and the quality of the delivery.• The client judges the service quality by its technical quality e.g. Was the surgery successful? and also by itsfunctional quality e.g. Did the surgeon show concern and

inspire confidence?

• Service providers must therefore deliver “high touch ” as well as “high tech ”.



DEALING WITH COMPETITION With the rise in competition, service

companies need to increase their

competitive differentiation, quality andproductivity.



MANAGING DIFFERENTIATION • Intense price competition in service industry has

made it necessary for service marketers todifferentiate their services from competition.

• While price competition is still important as

evidenced, for instance, by the success of budget-priced airlines where many fliers appear to care more about travel costs than service, or where incomes are low, differentiation of serviceis important to overcome competition andprosper in the long run.

• The alternative to competition then is to developa differentiated offer, delivery and image.



DIFFERENTIATIATION OF OFFER • The offer can include innovative features that set the company‟s

offer apart from

Competitors‟ offers.

• Most service innovations are, however, easily copied primarily dueto absence

of patents to protect firms e.g. ATMs, credit cards, and branchlessbanking.

• However, the service company that innovates regularly usuallygains a succession of temporary advantages and an innovativereputation.

• The company can also introduce secondary service features tosupport the primary service package offered.

• In the airline industry various carriers introduced such secondaryservice features as movies and telephone services; hotels offer support computers and internet services to those who need them.



DIFFERENTIATION OF SERVICEDELIVERY

Service companies can differentiate their

service through delivery in three ways:

• Through people – having more able and

reliable customer-contact people thancompetitors have.

• Superior and attractive physical environment

in which the service is delivered.• Superior delivery process e.g. use of visual aids



DIFFERENTIATION OF IMAGE • Image is a key differentiating factor since service is intangible• Service companies can differentiate their images through symbols

and branding.

• Making the consumer link a specific image with a specific brandname is important e.g. a bank using the symbol of a lion mightconvey an image of strength.

• What image do the Safaricom, Telcom, Kenya Railways brandsconvey?

• It is also worth noting that during peak demand hours, the interactivequality of services often declines because both the customer and theservice provider are hurried and under stress and service imagecould decline.

• Demand could be changed for instance through differentiated pricingas explained above.



MANAGING SERVICE QUALITY • Delivering higher quality service than competitors is a

major way of differentiating a firm‟s offer fromcompetition.

• Outstanding service gives companies a portentcompetitive advantage that leads to superior sales and

profit performance.• Service quality refers to the customer‟s perception of

how well a service meets or exceeds their expectations.

• When perceived performance is equal to expected thecustomer is satisfied but when perceived performance

exceeds expected performance the customer isdelighted.

• The key then is to try and exceed customer qualityexpectations.



MANAGING SERVICE QUALITY(CONT)

• The expectations are based on past experiences, word of mouth,and service firm‟s advertising.

• You must therefore keep your promises.

• Promise only what you can deliver but deliver more than youpromise to win and retain customers.

• The key to customer retention is customer satisfaction.

• Indeed customer retention is a good measure of service quality.

• When customers are satisfied they will remain loyal to the companyand make repeat purchases while influencing others to become thecompany‟s customers.

• Remember also that service quality is judged by the customer not

the organization. Hence it is important to know what customersexpect.

• Focus group research could be used to discover customers‟expectations.



MANAGING SRVICE QUALITY(CONT)

• In the event of service problems, it is important to ensurea good service recovery process as this can turn anangry customer into a loyal one

• To ensure this empower front line service employees bygiving them authority, responsibility and the incentives

they need to recognize, care about and attend tocustomers‟ needs.

• Also empower them to handle complaints so as to savetime since, for most customers, time is of the essenceand they do not want to waste time by being kept waiting

unnecessarily or transferred through severaldepartments.

• Let the frontline staff act as ambassadors andinformation gatherers for the company.



DETERMINANTS/DIMENSIONSOF SERVICE QUALITY

There are five determinants or dimensions of service quality:• Tangibles – The appearance of physical facilities, tools, equipment,

service personnel and communication materials.

• Reliability – The ability to perform the promised service consistently,

dependably, and accurately.

• Responsiveness – The willingness and readiness of employees toprovide the service promptly and to help customers.

• Assurance – The knowledge, competence and courtesy of

employees and their ability to convey trust and

confidence.

• Empathy – The provision of caring and individual attention tocustomers.



CHARACTERISTICS OF QUALITY • Quality is largely subjective; it is judged by the customer.

Like beauty it is in the beholder‟s eye. Hence:

Different customers may want and expect different

things.

Quality is relative to customer expectations andcannot be measured in absolute terms.

• Quality is distinctive. Different quality needs may be metthrough product differentiation and market segmentation.

• Quality is dynamic. Expectations change time due toexperience and environment.

• Quality requires care by the provider.



FEATURES OF WELL-MANAGEDSERVICE COMPANIES

Well-managed companies have common

features and practices as follows:

• They are customer-focused with clear and

distinctive strategy for satisfying customers‟needs that wins enduring customer loyalty.

• Have a history of top management commitment

to quality serving as role models.

• Set high service quality standards e.g. zero

defects or answering the phone within 2 rings.

S O G



FEATURES OF WELL-MANAGEDSERVICE COMPANIES (cont)

• Watch and monitor both their own and competitors‟service performance closely using methods such ascustomer surveys, suggestions, mystery shopping andcomplaint systems.

• Communicate their concerns about service quality oemployees and provide performance feedback.

• Handle customer complaints promptly.

• Audit employee satisfaction regularly i.e. internalmarketing to support employees and reward good

performance.

• Set up systems for service delivery to reduce variation inservice delivery.



MANAGING PRODUCTIVITY • It is important for a service company to manage

productivity so as to keep costs down in order to lower prices to consumers and also make profits.

• To increase service productivity the company could:

Train current employees better.

Hire new employees who will work harder and better for the same pay.

Standardize production and introduce equipment for service provision e.g. ATMs, dish washing equipment.

Encourage customer participation in service provisione.g. filling forms at hospitals, sorting mail beforedelivering to post office, bagging own purchases, etc.



MARKETING OF SERVICES THE END

THANK YOU

B.W.MAINA

Marketing Planning (Msk)

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