NoContent Pg

1. Introduction2

2.1.1 Review changing perspectives in marketing planning3

3.1.2 Evaluate an organization's capability for planning its future market 6

activities

4.1.3 Examine techniques for organizational auditing and for analyzing7

external factors that affect marketing planning

5.1.4 Carry out organizational auditing and analysis of external factors that 8

affect marketing planning in a given situation

6.2.1 Assess the main barriers to marketing planning9

7.2.2 Examine how organizations may overcome barriers to marketing planning13

8.3.1 Write a marketing plan for a product or service18

9.3.2 Explain why marketing planning is essential in the strategic planning process 19

for an organization

10.3.3 Examine techniques for new product development 20

11.3.4 Justify recommendations for pricing, distribution and communication mix 21

12.3.5 Explain how factors affecting the effective implementation of the marketing 22

plan have been taken into account

13.4.1 Explain how ethical issues influence marketing planning 23

14.4.2 Analyze examples of how organizations respond to ethical issues 25

15.4.3 Analyze examples of consumer ethics and the effect it has on marketing 27

Introduction

Executive Summary

AUNG MYANMAR electrical and machinery Group Co. Ltd is a well-organized enterprise and it has gained a firm foothold in the electrical and machinery industry. It is based in Yangon and it has branches in Mandalay, Naypyitaw, and Taungyi. Although the directors centered on product and production excellence backed by technical sales support, they become aware that there is market-led strategic change in their industry. They would like to formulate and implement a marketing plan basing in their organization's capacities and considering the main barriers to their activities. Therefore they want to assess the capabilities of their company as well as the external environments that affect marketing decisions. They have already decided to overcome the major barriers whatever they are. Some company departments are believing that a stronger marketing function threatens their power in the organization. However, during the previous five years, from being a relatively successful company, marketing share for AUNG MYANMAR products dropped. The market became much more competitive with new entrants who have introduced new and updated products to the market. Board of directors usually holds annual meetings to discuss what have been happenings to the market for their products. The departmental heads present relevant background data on sales, costs, the competitors, microenvironments, and ethical issues in marketing.

LO1: Be able to compile marketing adults

1.1 Review changing perspectives in marketing planning

Marketing planning is an important aspect for the overall marketing strategy of an organization and necessity of the marketing planning can be considered looking into the increasing competitive environment wherein an organization need to maintain loyal customer base. In context to service marketing traditional marketing mix elements i.e. product, price, place and promotion are complemented by three more elements i.e. people, processes and physical evidence. With changing demand and need for consumers marketing planning process are also undergoing considerable shift in the consumer demand is driven through the technological developments and change in lifestyle for the consumers.

One of the recent examples for change in marketing planning process is due to emergence of social media tools as with increasing social media promotional tools such as Facebook and Twitter marketers are adopting these tools for promotion of their products & services. Availability of information for the consumers is playing an important role wherein consumers are searching and analyzing information so as to make final decision for the purchase of particular product or service. Some of the key trends in marketing planning process include re-engineering, outsourcing, e-commerce, benchmarking, alliance, partner-supplier, market centered and global & local scenario etc.

The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive. These managers concentrated on achieving high production on efficiency, low cost and mass distribution. In such a business other functions such as sales, finance and personnel were secondary to the main function of the business, which was to produce. The best know example was the Model T factory of Henry ford in the 1920s in the USA. At that time, potential demand out stripped supply as at was prior to the wide scale introduction of mass production techniques.

Then the product concept emerged. It proposes that consumers favor products offering the most in quality, performance, or innovative features. Under this concept product quality and improvement are the most important. However manager might commit the ' better- mousetrap' fallacy, believing that a better product will by itself lead people to beat a path to their door. A new or improved product will not necessarily be successful unless it is distributed advertised, and sold properly.

With the large-scale introduction of mass techniques in the 1930s, particularly in the USA and Western Europe, many firms adopted the selling concept. The Focus of company efforts switches to the sales function. The main issue here is not how to produce but, having products, how to ensure that this production is sold. The selling concept holds that consumers and businesses, if left alone, won't buy enough of the firm's products. The firms need to undertake a large-scale selling and promotion efforts. The aim often is to sell what the company makes rather than making what the market wants. If focuses a creating sales transactions rather than on building long-term customer relationship. The result was that 'hard sell' techniques were developed.

The marketing concepts emerged in the mid 1950s. The job is to find not the right cutomers for your customers for your products, but the right product for your customer. The marketing concept is a customer-centered sense and respond philosophy. The selling concept is a product centered ' make and sell ' philosophy. The following figure contrasts the selling concept and the marketing concept.

Starting Point

Focus

Means

Ends

Selling concept

Factory

Product

Selling and promotion

Profit through increasing efforts

Marketing concept

Target market

Consumer needs and wants

Integrated marketing

Profit through satisfaction of consumers needs

Figure 1.1

Harvard's Thevdore Levitt drew a Perceptive contrast between the selling and marketing concepts:

"Selling Focuses on the needs of the seller; marketing on the need of the buyer. Selling is preoccupied with seller's need to convert his product into cash; marketing with the idea of satisfying the need of customer by means of the product and the whole cluster of thongs associated with created with, delivering and finally consuming it; thus the marketing concept holds that the key to successful and profitable business rests with identifying the needs and want of customers, and providing products and services to satisfy these needs and wants. On the surface such a concept does not appear to be a far reaching and fundamentally different philosophy of business, but in fact a marketing concept requires a revolution in how a company thinks about, and practices, its business activates as compared with production or sales orientation. Under production and sales orientation, marketing planning did not play important role.

Today, the "mass marketing" is actually splintering into numerous micro-markets, each with its own wants, perceptions, preferences, and buying criteria. The smart marketer therefore must design the marketing plan for well defined target markets. Thus, perspectives in marketing planning is chaining.

1.2 Evaluate an organization's capability for planning its future market activities

Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, and how. In theory, the marketing planning process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategy, developing marketing programs and managing the marketing efforts. The first task facing AUNG MYANMAR is to identify its potential long run opportunities and its must have that capability. AUNG MYANMAR can design its products with better features. It can use its core competency to design a line of farm implements. AUNG MYANMAR also needs a reliable marketing information system to closely monitor its marketing environment so it can continually assess market potential and forecast demand. It also needs a dependable marketing research system. Once AUNG MYANMAR has analyzed its market opportunities it is ready to select target market.

Traditionally, companies owned and controlled most of the resources that entered their business labor power, materials, machine information, and energy but many today out source less critical resources if they can obtain better quantity or lower cost. The key then is to own and nature the resources and competences that make up the essence of the business. A care competency has three characteristics:

1. It is a source of competitive advantage and makes a significant contribution to perceived customers benefits.

2. It has application in a wide variety of market.

3. It is difficult for competitors to imitate.

In practice, however, in the highly completive market places, marketing planning is more fluid and is continually refreshed. Companies must always be capable of moving forward with marketing programs innovating products and services, staying in touch with customer needs, seeking new advantages, rather than relying on post strengths. This is especially true of incorporating the internet into marketing plans.

1.3 Examine technique for organizational auditing and for analyzing external factors that affect marketing planning

It is essential to understanding customers as it is a keystone of a marketing planning; it comprises with auditing and analyzing the internal (organizational) and external (market) environments of the organization. This involves accumulating appropriate factor at first and then analyzing it. The types of relevant factors divided as internal and external which has shown as below.

Internal

Company mission and objectives

Existing customers - which includes the customer's satisfactions, dissatisfactions, expectations and relationships.

Company resources - management structure, finance and information technology.

The relationships between staff, partner and capital funders.

External

PEST which is a short for of Political, Economic, Social and Technological considerations. These factors may impact on organization's activities.

SWOT which is a short for Strengths, Weaknesses, Opportunities and Threats. It helps to assess company culture and future situation and as well as assess external environment.

Prospective customers, it requires to understand what are their needs, motivations, behavior, purchasing power and locations.

Market, which includes the awareness of market size, growth, price, distributions, promotion, and product development.

1.4 Carry out organizational auditing and analysis of external factors that affect marketing planning in a given situation

Generally, SWOT analysis is common use to carry out an organizational auditing and analysis of external factors. SWOT represents Strengths, Weaknesses, Opportunities and Threats; The aims of SWOT analysis is mainly take advantage of strengths and opportunities the market meanwhile minimize the weaknesses and eliminate the threats.

Strengths

Market share

Skilled and expertise

Business location

Quality processes and proceduresInnovative and new product or service.

Brand loyalty

Strong financial background

Weaknesses

Business location

Lack of skilled and expertise

Low market share

Poor quality products or services

Poor financial background

Bad reputation

Low brand loyalty

Poor distribution network

Opportunities

Competitor weakness

Market growth

Innovation and creative idea

Strong alliances

International market

Ineffective competitors

Threats

New competitor

Taxation

Legal limitations

A competitor has a new, innovative product or service.

AUNG MYANMAR's SWOT analysis has shown as below:

Strengths

excellent customer awareness and an image of reliability and quality

Can respond quickly and effectively to customer needs

Well-trained and motivated employees

sales force is technically well qualified

Weaknesses

Prices are approximately 10 percent above the industry average

over spent on advertising than some of the main competitors

some sales representatives are not well versed in personal selling skills

Opportunities

Marketing information system has been well established an marketing research is occasionally conducted

some major competitors are having difficulty keeping their customers because of quality and delivery problems

government is making efforts to solve the electrical problems of people urgently and to mechanize farming

Threats

AUNG MYANMAR's large customer is threatening to switch to another supplier because of the company's higher average prices

Being not keep pace with the rapid technological change in the industry

Recent and forecast trends in the exchange rate hinder the semi-finished imports of the company.

LO 3 Be able to formulate a marketing plan for a product or service

3.1 Write a marketing plan for a product or service

Marketing plan is an essential document as it includes a company market evaluation, goals, direction and marketing result. Macdonald (1995) introduces a four steps approach for the marketing plan which includes:

Situational Review - Marketing Audit: PEST or SWOT analysis.

The marketing audit is a process to identify those existing external and internal factor which will influences on marketing planning of the company. The process can be conduct with the SWOT analysis for the internal and external environment or PEST analysis which focuses solely on external environment. In fact, marketing audit helps to clarifies opportunities and threats and allows the stakeholders to make alternations to the marketing plan if needed. I have chosen SWOT as a marketing audit tools for AUNG MYANMAR.

Strategy Formulation - Marketing Objectives and Strategies.

Marketing objectives is stated what the company intends to be or to be achieve in the future. Marketing strategy is a process that allows company to concentrate its limited resources to increase sales and achieve and build up sustainable competitive advantage. There are several strategies can be use, for example "ansoff matrix", "bcg matrix", "plc matrix" and "4ps". In this case, I have chosen 4ps for AUNG MYANMAR.

Monitoring and Control - Budget and implementation.

In the process of marketing planning, it shall be aware that marketing control is to monitoring the whole process as they proceed with and make an alteration if necessary.

Control includes measurement, monitoring and evaluation. In fact, resources are costly and limited therefore it is essential for a marketer to control a budget and always check with the implementation. The marketer shall always check with the implication by comparing the actual progress and the standard progress.

3.2 Explain why marketing planning is essential in the strategic planning process for an organization

Marketing plan provide information that enables stakeholders to measure the progress and highlighted the most appropriate marketing strategies. An effective marketing plan helps to increase product sales and enhance company profit margins. There are several advantages of market plan, it contains:

Focus on your target market

Identifies consumers' needs and wants

Determines product demand

Identifies potential customers

Identifies competitor and analyze competitive advantage

A measurement for generating the daily cash operational activities and how to make profit.

Manifestly, a good marketing plan will also benefit an organization with the analysis of how to achieve the company objectives and capability to create a new opportunities for organization. Therefore, it is essential in the strategic planning process for an organization.

3.3 Examine techniques for new product development

New product development (NPD) is a process which designed to develop, test and consider the viability of the new product in the market. It helps to distinguish the growth or survival of the organization when a new product launch. There are several steps in the NDP process.

Idea generation

It can be obtained from market research by using SWOT analysis.

Idea screening

In this process, unsuitable or unattractive ideas would be abandoning.

Concept development and testing

After the early stage of concept development, it requires to launch a concept testing by asking the prospective customers' feedback.

Market strategy development

It requires identifying which type of marketing strategy should be use.

Product development

Converts a product idea into a physical form.

Test marketing

Placing the product on sale and observing its actual performance.

Commercialization

Implementing a marketing plan and full production

3.4 Justify recommendations for pricing policy, distribution and communication mix

Distribution mix (Place) represents the way of distribution, the methods of transportation, and also the on-hand inventory level and lastly outlets selection. It is proposed to ensure the customers will able to find the products when they need it and usually customer will be expecting good services on the product sales or after the product sales.

Furthermore, it is importance to consider the following options of the product distribution:

Retailing

Internet sales - website

Mail order - throughout brochure

Wholesaler

Nevertheless, the marketer should still consider the product characteristics, company size, competitors and nature of distributor before decide the final distribution way.

After selected a distribution way for the product, it should be concentrate with the product price. Price policy would directly affects the product sales, how much profit or loss company gain, to whom it is sold and what types of services should be attach. There are no fixed rules for setting the right place for a new product however it should always take into account the product design cost, the distribution, the promotional and the labor cost. The only recommendation in pricing strategy is to be sensitive, sensitive with the production cost, marketing cost.

Once a product decided to launch in the market, it requires promotional activities to attract buyers, to gain awareness and spreading out the product information. The communication mix includes advertising, personal selling, public relations, online promotion, sales promotion and also direct marketing. Nonetheless, for each type of promotional tool, it comes with own strengths and weakness and bring different along different effect to the product. Therefore, it is essential for the marketer to analyze which type of promotional tool would be most benefit to the product.

3.5 Explain how factors affecting the effective implementation of the marketing plan have been taken into account

In order to maximize profits and minimize risks in a business, the only reliable way is to tailor a suitable marketing plan with the particular needs meanwhile using available marketing tools and information to enhance the flexibility. However, it is remarkable that there are few factors should be concern with as there would affect the effective implementation of the marketing plan or even impair the whole picture. The factors would affect the progress have listed down below:

Management not supportive: With the assumption of the director of the company do not agree with the element of the marketing plan and decided not to support it, manifestly, the marketing plan would not be suffice as a pathway to the success.

Budget limitation (Financially) - Without sufficient financial support, the marketing team might not able to complete an appropriate market research.

Illegality: If a marketing plan is against with the law or regulation, it might lead a legal action to the organization.

As the factors mentioned above will affect the effective implementation of the marketing plan, it may concluded as it is essential to taken factors would impair the marketing plan into account in order to draft out a good marketing plan.

LO 4: Understand ethical issues in marketing

4.1 Explain how ethical issues influence marketing planning

Ethical issues in marketing

Marketing ethics deals with the moral principles behind the operation and regulation of marketing. Possible fundamental framework of analysis for marketing audit are:

1) Value-oriented framework

2) Stakeholder-orientated framework

3) Process-orientated framework

Though the ethical dilemmas faced by certain companies may be specific to their industry or company, other types of ethical issues are common to all types of companies. Handling ethical decisions with wisdom is especially important for small business given the potentially devastating effects these companies may face if such issues aren't handled correctly.

There are many kinds of ethical issues within organization.

1. Health and Safety

2. Technology

3. Transparency

4. Fair Working Condition

Ethics carrying principles of right conduct that shape the decisions people or organizations make. Practicing ethics in marketing has deliberately addresses the standards of fairness, moral principles and wrongs in the organization. The main purpose of marketing ethics is to stop anyone to do any deceive or take advantage from unethical activities.

Once our economic system has successfully fulfilled consumer's wants and needs, there would be a concern on organizations adhering to ethical values rather than simply providing products or services. The reason of being so, that is due to firstly, when an organization has behaves ethically, manifestly its customers would develop positive attitudes about its products, services and the company itself. With unethical issues in a business, it may lead to bad publicity and reputation, customers' dissatisfaction, lost the business opportunity and consumers' trust and also a legal action between consumer and organization.

In short, unethical marketing practices would directly influence a good marketing process and affect marketing plan. Hence, most of organization has trained to be sensitive with customer's needs and opinions in order to maintain this long-term interest in their business. Moreover, social responsibilities are subjected to marketing practices to protect consumer rights, avoid unfair trading and stimulate trade in a wide range.

Marketer of AUNG MYANAMR Company never work hard to keep up with changes in regulations and the products and productions operations are banned because they are damaging health, or because they pollute the environment. In Aung Myanmar Company, the selling and marketing of goods is restricted by laws on the description of goods because the products of AUNG MYANAMR Company has dangerous packaging weights and measures.

4.2 Analyze examples of how organization respond to ethical issues

Adler and Bird (1987) and Stead (1990) suggested few strategies to enhance ethical behavior and avoid unethical behavior in organizations. They suggested that, firstly, top managerial should encourage ethical consciousness to their subordinates by providing support and care upon ethical practices. Secondly, it is recommended that top managerial level should focus on the institutionalization of ethical norms and practices that are incorporated into all organizational levels.

Besides, organizations should provide an ethical training to strengthen and gain their employees' personal ethical framework to ensure that it practice employees' self-discipline and capable to make an ethical decisions in a difficult circumstances. Meanwhile, organizations should be avoiding these unethical issues happen in their institution:

Product: Misleading product information, lack quality control and deliberately produce poor quality product, unfit product description.

Price: Expensive price with a poor quality product

Place: Different product price in different location

Distribution: Control the product supply and increase the product selling price when out of stock.

Stony Field 's responses to ethical issues

Raising the socially responsible marketing calls for main three pronged attack that relies on proper legal, ethical and social responsibility behavior. One company that puts social responsible marketing squarely at the center of all it does is Stony field Farm from US. Stony field is the global market leader in organic Yogurt and it works with socially responsible suppliers, adopts environmentally friendly manufacturing practices, and uses packaging to promote its views on environmental and health issues. Stony field donates to secret of profits to efforts that help and protect and restore the Earth and has launched a non-profit foundation called ' climate Counts'. Progressive business practices have not hurt its financial performances. Stony field is the member three yogurt brand in the limited states, and it now also sells smoothies, milk, frozen yogurt and ice cream.

4.3 Analyze examples of consumer ethics and the effect it has on marketing

Mintel (1994) explain "ethical consumer" as a consumers who considered environmental issues, animal issues and ethical issues, including oppressive regimes and armament when shopping. In order to proceed with a good marketing plan, the organization shall take consumer's right into account. As being immoral in product sales and product purchase, it may cause bad attitude or situation. For example, if customer purchasing product which is illegal or against the law, obviously the organization would not consider about customer's right for the sales. It would directly affect to the market itself and unethical behavior will be spreading around.Examples of consumer ethics are False insurance claims, warranty deception, misredemption of vouchers, returns of merchandise, illegal downloads, coding and distribution ( music, film, software).

Out of these, some such as false insurance claims, warranty deception and misredemption of vouchers are illegal and others are unethical.

Whatever it may be the consumer must observe laws and ethics.

If consumers are violating laws and ethics for the sale of their own interests, it may be difficult to build strong customer relationships and customer loyalty.

It may hinder markets to implement marketing planning successfully.

Reference

Website

Chartered Institute of Marketing, 2013. Glossary. [online] Available at: [Accessed 03 October 2013].

K;otler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson Education.

Marketing Teacher, n.d. Marketing mix. [online] Available at: [Accessed 03 October 2013].

Book

Kotler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson Education. (Author, Intial., Year. Title. Edition. Place of Publication: Publisher.)

Drucker, P . , 2011.Innovation and Entrepreneurship.2nd ed.New York: Routledge.

(Author, Intial., Year. Title. Edition. Place of Publication: Publisher.)