Session 2 - Marketing Planning

8/8/2019 Session 2 - Marketing Planning

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MARKETING PLANNING, MANAGEMENT AND

CONTROL


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PLANNING

A systematic process of forecasting the future business

environment and deciding on the most appropriategoals, objectives and positions for best exploiting that

environment.

Planning is an activity and a process.


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THE MARKETING PLAN

Provides clear and unambiguous statement about the

strategies and actions that will be implemented, bywhom, when and with what outcomes.


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Criteria for differentiating plans

Organisational - long term and strategic in focus.

Divisional - implementation focus within a shorter time

span and within clearly specified parameters.

Timing.

Regularity - longer term plans have annual reviews

whilst short term plans are often part of a hierarchylinking strategy with operations.

Focus - organisational, functional, etc.


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Planning - the benefits

Figure 21.1


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Planning - the pitfalls

Planning can become technique oriented.

Embracing planning eagerly with dedicated planning

departments can divorce the professional planner fromthose who have to implement them.

Planning can fail if unreliable information is used.


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The marketing planning process

Figure 21.2


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(1)- Objectives, targets and mission

Quantitative targets - e.g. financial, operating, etc.

Philosophical targets - vision and values.

Qualitative targets - service levels, etc.


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Qualitative targets

Figure 21.3


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Objective trade offs

Short term v long-term growth.

Profit margin v market positioning.

Direct sales effort v market development. Penetrating existing markets v developing new ones.

Profit v non-profit goals.

Growth v stability.

Change v stability.

Low risk v high risk.


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(2)- The marketing audit

Takes stock of a companys marketing health.

Is the launching pad for the marketing plan.

Encourages management to reflect on the environment

and companys ability to respond.

Encompasses the external and internal audit.


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Marketing audit issues

Macro environment.

Task environment

Markets.

Strategic issues.

Marketing mix.

Marketing organisational structure and organisation.


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(3)- Marketing analysis

S - strengths.

W - weaknesses.

O - opportunities.

T- threats.


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(4)- Marketing objectives

Four fundamental areas related to marketing objectives:

Achieving market share growth or maintenance

The maintenance or improvement of profitability

Establishing an opening marketing position

Maximising cash flow, harvesting


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(5)- Marketing strategies and actions

The means by which a company sets out to achieve its

marketing objectives. This can be by:

Repositioning the product.

Improving product packaging.

Amending prices.

Improving productivity.

Standardisation.

Changing sales or customer mix.


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(6)- Marketing programmes

Precisely specify actions, responsibilities, timescales

(7)- Marketing budget

Precise and detailed:to justify the resources requested;

to permit detailed control and evaluation

Flexibility: to cope with changing circumstances

(8)- Marketing control and evaluation

Short-term and long-term


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Market and sales potential

The maximum level of demand available within the total

market over a given period.

Difficulties in estimating market potential:

Maximum level of demand.

Total market.

Level of competitive activity and trends.

Sales potential.


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Estimating market and sales potential

Breakdown methods - based on total market

measurement or statistical series analysis.

Build up methods - census, survey and secondary data.


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Market and sales forecasting

The sales and market forecasts provide the basis for all

subsequent planning and decision making.

Forecasting indicates what will happen in a given

environment if a specific set of decisions and actions is

implemented with no subsequent changes.


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Forecast characteristics

(Wheelwright and Makridakis, 1977)

Based on historical information from which projections

can be made.

Look forward over a specific, clearly defined time period.

Make clearly specified assumptions, since uncertainty

characterises the future.


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The four stage approach to forecasting

(Wolfe 1966)

Figure 21.4


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Forecasting methods

Figure 21.5


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Different ways of organising marketing activities

Function.

Product.

Geographically.

Segments.

Matrix.


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Functional organisation

Figure 21.6(a)


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Product organisation

Figure 21.6(b)


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Regional organisation

Figure 21.6(c)


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Matrix organisation

Figure 21.6(d)


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The marketing control process

Figure 21.7


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Examples of marketing performance evaluation

methods

Sales analysis.

Costs and profitability analysis.


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Sales analysis

Figure 21.8


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Marketing costs and profitability analysis

Figure 21.9


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Problems estimating marketing costs according to

Wilson et al 1992

Long term or lagged effects.

Joint costs.

Isolating effects.

Session 2 - Marketing Planning

Documents

Transcript of Session 2 - Marketing Planning