Market Plan 2

7/29/2019 Market Plan 2

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MARKETINGPLANNING & CONTROL

MARKETING PLAN


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Introduction

Liberalization of the economy and consequent

globalization of marketing has forced large and

small sized organizations to carry out efficient

and effective marketing planning.


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Why Plan?

The situation has caused the following

Stiff competition both domestically andinternationally

Close global communication

Scarcity in resources

Continuous changes in consumer needs

Fragmentation of markets High pace in technological development


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Marketing Planning

Planning is the process of anticipating futureevents and determining strategies to achieve

organizational objectives in the future

Marketing planning involves deciding on

marketing strategies that will help the company

attain its overall strategic objectives


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Managing the Marketing Effort

Control

Measure results

Evaluate results

Take correctiveaction

Implementation

Carry out theplans

Analysis

Planning

Develop strategic

plans

Developmarketing plans


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Marketing Plan

Marketing plan is a written document that acts

as a guideline of marketing activities for the

marketing managers.

A detailed marketing plan is needed for each

business, product or brand


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Marketing Plan Criteria

Is the plan simple?

Easy to understand and act on?

Does it communicate its content easily and practically?

Is the plan specific? Are its objectives concrete, measurable?

Does it include specific actions and activities, each with

specific dates of completion, specific persons

responsible and specific budgets?


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Marketing Plan Criteria

Is the plan realistic?

Are the sales goals, expense budgets and milestone

dates realistic?

Has frank and honest self critique been conducted to

raise possible concerns and objections??

Is the plan complete?

Does it include all the necessary elements?


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1. Executive summary

2. Current marketing situation

3. Threats and opportunity analysis

4. Objectives and issues5. Marketing strategy

6. Action programs

7. Budgets

8. Controls

Contents of a Marketing Plan


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1. Executive Summary

Purpose

Presents a brief overview of the proposed

plan for quick management review

It is the opening section of the plan thatpresents a short summary of the main goalsand recommendations to be presented in

the plan


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2. Current Marketing Situation

Purpose

Presents relevant background data on themarket, product, competition and distribution

-market description defines major segments

-Product review sales, prices, gross margins

-Identify major competitors and their strategy

-Distribution channels recent trends &developments


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3. Threats and Opportunity Analysis

Purpose

Identifies the major threats and opportunitiesthat the product might face

Makes the manager anticipate importantdevelopments that can have an impact on thefirm might impact the product


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Threats and Opportunity Analysis

Different threats call for different levels ofattention and concern

Assess the likelihood of each threat and the

potential damage each could cause.

Assess each opportunity according to itspotential attractiveness and the companys

probability of success

In evaluating opportunities, decide whetherexpected returns justify risks involved


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4. Objectives and Issues

Purpose

Defines the companys objectives for the

product in the areas of sales, market share and

profit

and the issues that will affect these objectives

eg how can market share be increased?

Objectives are goals a firm would like to attain

during a plans term - SMART


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5. Marketing Strategy

Purpose

Presents the broad marketing approach thatwill be used to achieve the plans objective

A strategy is a means used to achieveorganizational goals

Shows specific strategies for target markets,positioning, marketing mix, and marketingexpenditure eg Use Ansoffs, STP


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Market Penetration

Get existing user to increase buying frequency Increase number of uses for same product

Convert competitors users to your brand

Find new target market

Find new geographical markets

Market Development


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Product Development

Innovate new products Modify existing product

Line extensions of existing product

Find new target market for new unrelatedproducts

Diversification


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Market Segmentation

Sub-dividing a whole market into relativelysimilar, but identifiable segment that anorganization can serve profitably.

In order to carry out effective segmentation, amarketer must understand the principles ofmarket segmentation.


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Market Targeting

This strategy identities which marketsegment(s) to focus on.

Three general strategies of selecting targetmarkets.

Differentiated

Undifferentiated and

Concentrated marketing, using marketingmix differently at different situations


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Market Positioning

It is marketing strategy in which a marketerensures the product occupies a major space inthe mind of a customer.

It uses two matching variables such as priceand quantity.


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Market Positioning

It is marketing strategy in which a marketerensures the product occupies a major space inthe mind of a customer.

It used two matching variables such as priceand quantity.


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Marketing Mix

Refers to a unique blend of product, place,promotion and price strategies designed toproduce mutually satisfying exchange with a

target market.

4ps for Products

7ps for Services


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Marketing Mix


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6. Action Programs/ Implementation

Purpose

Specifies whatwill be done activity description

who will do it detailed job assignment

when it will be done time lines

how much it will cost - budgets


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7. Budgets

Purpose

A projected profit and loss statement thatforecasts the expected financial outcomes from

the plan

Budget is a consolidated statement of resourcesrequired to achieve desired objectives.


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Budget

It is a planning and control tool relevant to allaspects of management activities

It is based on forecasting.

Shows forecasted units sold, average net price

Shows cost of production, physical distributionand marketing


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Purpose of Budgeting

Coordination of activities

Communication of the policies and target toevery manager in the firm

Providing control mechanism from which actualperformance is measured


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Limitations of Budgeting

Unpredictability in environmental situation

Inflation growth

Inter-departmental rivalries.

Managements reluctance to budget.

Lack of budgeting skills.

Inadequate information / inaccurate data


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Types of Budgets

Expenses budget - Only expenditure of salaries,

materials, traveling cars e.t.c

Advertising budget media, Posters, billboards.

Sales promotion - Offers e.t.c

R&D budget.

Distribution budget- Warehouse, Transport,

Loading and unloading


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8. ControlsPurpose

Indicates how the progress of the plan will bemonitored

Marketing control involves evaluating theresults of marketing strategies and plans, andtaking corrective action to ensure thatobjectives are attained.

Goals and budgets spelled out for eachmonth/quarter


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The Control Process

Set goals - what do we want toachieve?

Measure performance - what is happening?

Evaluate performance - why is ithappening?

Take corrective action - what should we doabout it?


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Benefits of Planning

It offers a road map for implementing thecompanys marketing activities

It assists in managing control and monitoringof implementation of strategy

It creates a sense of responsibility among thestaff.

It specifies how resources are to be allocatedamong the units

It enables the participants to be aware ofproblem and opportunities

It reduces risks and wastes


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Barriers to Planning

Culture

Power and politics

Analysis, not action

Resource issues Skills


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Sample Plan


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Sample Plan Cont.

Market Plan 2

Documents

Transcript of Market Plan 2