Chapter 1: Marketing Planning: New Urgency, New Possibilities The Marketing Plan Handbook Fourth...

Chapter 1: Marketing Planning: New Urgency, New Possibilities

The Marketing Plan Handbook Fourth Edition

Marian Burk Wood

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Planning Is Important Marketing is everywhere. Customers have more information,

more choices, higher expectations, more power, and more involvement.

Stakeholders are looking for companies to make a difference.

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Marketing and the Concept of “Value” AMA definition of Marketing:

“…the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.”

Value is Key: Value is the difference between the benefits received and the perceived total price.

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Marketing Planning

Marketing planning is the structured process of determining how to provide value to customers, the organization, and key stakeholders by:

1. Researching and analyzing the current situation,2. Developing and documenting the firm’s objectives,

strategies and programs, and3. Implementing, evaluating, and controlling

marketing activities.

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The Marketing Planning Process

1. Research and

Analyze

2. Understand

Markets and

Customers

3. Segmentation,

Targeting, and

Positioning

4. Direction,

Objectives,

Marketing

Support

5. Marketing Strategies

and Programs

6. Metrics and

Implementation

Control

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Contents of The Marketing Plan

I. Executive Summary.II. Current Situation.III. Objectives and Issues.IV. Target Market, Customer Analysis and

Positioning.V. Marketing Strategy.VI. Marketing Programs.VII. Financial and Operational Plans.VIII. Metrics and Implementation Control.

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Step 1: Research and Analyze the Current Situation

The marketer performs both:1. External analysis, and2. Internal analysis.

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External Analysis

Involves the understanding of : Demographic Economic Technological Political-Legal Ecological Social-Cultural Competitors

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Internal Analysis

Marketers also assess the firm’s capabilities and the strategies of competitors in order to:

Build on strengths, and Exploit competitors’ weaknesses.

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Other Analyses

Other areas that are analyzed for their impact on marketing strategy include:

Customers Suppliers Distributors Partners, and Other Stakeholders

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Step 2: Understand Markets and Customers

Consumers or businesses Comprehensive understanding is

desired: Buying habits and behaviors Who?, What?, Where?, When?, Why?, How? Are buying patterns changing? Why?

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Step 3: Plan Segmentation, Targeting, and Positioning

Purpose of segmentation: To group customers with similar needs, wants, behavior, or attitudes.

Targeting: The selection of specific segments for marketing.

Positioning: A competitively distinctive place (position) in the mind of the targeted customers.

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Step 4: Plan Direction, Objectives, and Marketing Support

Goals: Long-term targets. Objectives: Shorter-term targets. Sustainable Marketing:

Balancing long-term goals with short-term objectives and budget realities.

Responsible to the larger society.

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Step 5: Develop Marketing Strategies and Programs

Consistent with the firm’s overall direction, goals, and strategies.

Utilizing the tools of the “marketing mix”, enhanced by service.

Increasing use of “three screens”: TV, cell phone, and computer.

Includes the development of strategic alliances with suppliers, partners, and channel partners.

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Step 6: Plan Metrics and Implementation

Control Metrics: Numerical measures of performance-related activities and outcomes.

Metrics include: Return on marketing investment (ROMI) Market share Cost per customer acquired

Marketing Control: measuring interim performance against metrics, diagnosing any performance issues and making changes as needed.

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Primary Marketing Tools

The primary tools for marketing, referred to as the “Marketing Mix” are:

Product. Price. Promotion. Channels.

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Product Tangible good or an intangible

service. Must be considered in a holistic

fashion. Branding must also be considered.

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Pricing

Based upon a number of factors: How customers perceive the value of the

offering. Positioning. Product costs. Competitive forces. The value the organization expects to gain.

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Channel How, when, and where to make the goods

and services available to customers.

Requires effective relationships with channel partners.

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Promotion

Involves the following activities: Advertising Public Relations Sales Promotion Personal Selling Direct Marketing Use of the Internet

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Preparing for Marketing Planning

Marketers must develop a number of professional and organizational strengths, including:

Knowledge of markets and customers. Core competencies. Strategic relationships.

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Support Strategies: Customer Service Reinforces positive perceptions.

Helps differentiate from competitors.

Enhances business through reputation and referral.

Excellent service helps retain loyal customers.

Poor service alienates otherwise loyal customers.

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Support Strategies: Internal Marketing

Focuses all employees on serving customers.

Builds support for the marketing plan.

Enhances execution of the marketing plan throughout the organization.

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4 Guiding Principles for Effective Marketing Planning

1. Anticipate Change.

2. Engage Everyone.

3. Seek Alliances.

4. Make Marketing Meaningful.

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

Chapter 1: Marketing Planning: New Urgency, New Possibilities The Marketing Plan Handbook Fourth...

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