Transcript The Marketing Plan - Department of Information Technologies

Business / Marketing Minor
Marketing Fundamentals
M21439
Session 2:
Marketing Planning & Auditing
Key Concepts
• Definition of marketing planning
• Contents of a marketing plan
• Definition of a marketing audit
• Dimensions of a marketing audit
Definition of a Marketing Planning
“Marketing planning can be defined as the
planned application of marketing resources to
achieve marketing objectives.”
McDonald,M. (1999)
Strategic Marketing Plan
A strategic marketing plan is a plan which
covers a period beyond the next fiscal year.
Usually this is for between three and five
years.
Source: McDonald,M.(1999) Marketing Plans 4th ed, UK:Butterworth Heinemann, p.31
Tactical Marketing Plan
A tactical marketing plan covers in quite a lot
of detail the actions to be taken, by whom,
during a short term planning period.
This is usually for one year or less.
Question:
Do all organisations formally plan
their marketing activities?
If not, why not?
Start of Marketing Planning
Marketing planning should start with an
analysis of the potential market.
Porter’s Five Forces (1985) model provides a
useful tool for analysing the overall
attractiveness of the market.
Source: Doyle,P.(2002) Marketing Management and Strategy 3rd ed, Harlow:Prentice Hall, p.404
Porter (1985) Five Competitive Forces That
Determine Industry Profitability Model
POTENTIAL
ENTRANTS
Bargaining power of suppliers
Threat
of
new entrants
INDUSTRY COMPETITORS
SUPPLIERS
BUYERS
Rivalry among existing firms
Threat
Of substitute
Products or
services
Bargaining power of buyers
SUBSTITUTES
Source: Porter, M.E. (1985) Competitive Advantage: Sustaining and Creating Superior Performance New York:Free Press p.5
Evolution of Strategy & Management Systems
Characteristics
Financial
Planning
Long Range
Planning
Strategic Planning
Strategic Market
Management
Management
Focus
Budgets and
control
Anticipate market
growth
Respond to environmental
changes
Capitalise on strategic
windows
Assumptions
Long-run
stability
Past trends to
continue
New trends and
discontinues are
predictable
Many changes will be
sudden and
unpredictable
Objective
Meet the
budget
Predict the future
Think strategically
Create opportunities
through change
Planning
Process
Annual
5 years, annual
revisions
Annual revisions
Real time
When Popular
Until late
1950s
1960s
1970s
After 1980s
Source: Doyle,P.(2002) Marketing Management and Strategy 3rd ed, Harlow:Prentice Hall, p.97
Question:
Why do you think organisations
have changed their strategy &
management systems?
Do you know of any organisational examples?
Factors Influencing Company
Marketing Strategy
Demographic / Economic Environment
Suppliers
Marketing control system
Marketing information system
Political/
Legal
Environment
Place
Marketing
intermediaries
Technological /
Physical
Environment
Product
Target
customers
Promotion
Price
Marketing organisation and
implementation
Publics
Competitors
Social / Cultural Environment
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.88.
The marketing
planning cycle
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Contents of a Marketing Plan
1.
Executive Summary &
Table of Contents
Presents a brief overview of the proposed plan.
2.
Current Marketing
Situation
Presents relevant background data on sales, costs, profits, the market,
competitors, distribution and the macroenvironment.
3.
Opportunity & Issue
Analysis
Identifies the main opportunities/threats, strengths/weaknesses and issues facing
the product line.
4.
Objectives
Defines the plan’s financial and marketing goals in terms of sales volume, market
share and profit.
5.
Marketing Strategy
Presents the broad marketing approach that will be used to achieve the plan’s
objectives.
6.
Action Programs
Presents the special marketing programs designed to achieve the business
objectives.
7.
Projected Profit-&-Loss
Statement
Forecasts the plan’s expected financial outcomes.
8.
Controls
Indicates how the plan will be monitored.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.89.
The Marketing Plan
1. Management or Executive Summary
2. Marketing Objectives
3. Product/Market Background
4. Marketing Analysis
5. Marketing Strategies
6. Statement of Expected Sales Forecasts &
Results
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin,p.696
The Marketing Plan – cont.
7. Marketing Programmes for Implementation
8. Control & Evaluation: Monitoring of
Performance
9. Financial Implications/Required Budget
10. Operational Considerations
11. Appendices
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.696
Question:
How long should it take to devise
a marketing plan?
… is there a right answer?
Marketing Audit
“A marketing audit is a comprehensive,
systematic, independent and periodic
examination of a company’s – or business
unit’s – marketing environment, objectives,
strategies and activities with a view to
determining problem areas and opportunities
and recommending a plan of action to
improve the company’s marketing
performance.”
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
Marketing Audit
The broadest control advice of the marketing plan is
the marketing audit – a thorough, systematic, periodic
evaluation of the goals, strategies, structure and
performance of the marketing organisation.
Source: Lamb,C.W.,Hair.J.F. & McDaniel,C.(2003) Marketing 7th ed, Canada:Thomson South Western, p.44
Question:
How does a marketing plan differ
from a marketing audit – do you
need both?
Dimensions of a Marketing Audit
PART 1
- Marketing Environment Forces
- Task Environment
PART 2
- Marketing Strategy Audit
PART 3
- Marketing Organisation Audit
PART 4
- Marketing Systems Audit
PART 5
- Marketing Productivity Audit
PART 6
- Marketing Function Audit
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, pp.710-712
Part 1: Marketing Environment
Forces
a.
Economic
b.
Technological
c.
Political/Legal/Regulatory
d.
Societal/Green
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.710
Part 1: Task Environment
a. Markets
b. Customers
c. Competitors
d. Distribution & Dealers
e. Suppliers
f.
Facilitators & Marketing Organisations
g. Publics
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.710
Part 2: Marketing Strategy Audit
a.
Business Mission
b.
Marketing Objectives & Goals
c.
Strategy
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711
Part 3: Marketing Organisation
Audit
a.
Formal Structure
b.
Functional Efficiency
c.
Interface Efficiency
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711
Part 4: Marketing Systems Audit
a.
Marketing Information System
b.
Marketing Planning System
c.
Marketing Control System
d.
New Product Development System
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711
Part 5: Marketing Productivity
Audit
a.
Profitability Analysis
b.
Cost Effective Analysis
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.712
Part 6: Marketing Function Audit
a. Products and Services
b. Price
c. Distribution
d. Promotional Mix
e. Salesforce
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.712
Marketing Audit – Four
Characteristics
1. Comprehensive
2. Systematic
3. Independent
4. Periodic
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
Marketing Audit - Comprehensive
Covers all of the major marketing activities of a
business – not just a few trouble spots.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
Marketing Audit - Systematic
Orderly examination of the macro & micro
environments, mkting objectives & strategies,
mkting systems and specific activities.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
Marketing Audit - Independent
Can be conducted in six ways:
1. Self-audit
2. Audit from across
3. Audit from above
4. Company auditing office
5. Company task force
6. Outsider
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.
Marketing Audit - Periodic
Typically only initiated after sales have turned
down but can prevent companies from being
thrown into crisis.
Companies should conduct a marketing audit
periodically.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.709.
Question:
One of assessments asks you to
undertake a marketing audit – how
will you go about it?
What organisational information can you access?