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MARKETING PLANNING & 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 and internationally 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 future events 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


Analysis

Planning Develop strategic plans

Implementation Carry out the plans

Control Measure results Evaluate results

Develop marketing plans

Take corrective action

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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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Contents of a Marketing Plan


1. Executive summary
2. 3. 5. 6. 8. Current marketing situation Threats and opportunity analysis Marketing strategy Action programs Controls

4. Objectives and issues

7. Budgets

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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 that presents a short summary of the main goals and recommendations to be presented in the plan

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2. Current Marketing Situation


Purpose Presents relevant background data on the market, 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 opportunities that the product might face

Makes the manager anticipate important developments that can have an impact on the firm might impact the product

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Threats and Opportunity Analysis


Different threats call for different levels of attention and concern Assess the likelihood of each threat and the potential damage each could cause. Assess each opportunity according to its potential attractiveness and the companys probability of success In evaluating opportunities, decide whether expected 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 that will be used to achieve the plans objective A strategy is a means used to achieve organizational goals Shows specific strategies for target markets, positioning, marketing mix, and marketing expenditure 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

Market Development
Find new target market Find new geographical markets

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Product Development
Innovate new products Modify existing product Line extensions of existing product

Diversification
Find new target market for new unrelated products

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Market Segmentation
Sub-dividing a whole market into relatively similar, but identifiable segment that an organization can serve profitably. In order to carry out effective segmentation, a marketer must understand the principles of market segmentation.

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Market Targeting
This strategy identities which market segment(s) to focus on. Three general strategies of selecting target markets. Differentiated Undifferentiated and Concentrated marketing, using marketing mix differently at different situations

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Market Positioning
It is marketing strategy in which a marketer ensures the product occupies a major space in the mind of a customer. It uses two matching variables such as price and quantity.

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Market Positioning
It is marketing strategy in which a marketer ensures the product occupies a major space in the mind of a customer. It used two matching variables such as price and quantity.

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Marketing Mix
Refers to a unique blend of product, place, promotion and price strategies designed to produce 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 what will 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 that forecasts the expected financial outcomes from the plan Budget is a consolidated statement of resources required to achieve desired objectives.

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Budget
It is a planning and control tool relevant to all aspects of management activities It is based on forecasting. Shows forecasted units sold, average net price

Shows cost of production, physical distribution and marketing

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Purpose of Budgeting
Coordination of activities Communication of the policies and target to every manager in the firm Providing control mechanism from which actual performance 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. Controls
Purpose Indicates how the progress of the plan will be monitored

Marketing control involves evaluating the results of marketing strategies and plans, and taking corrective action to ensure that objectives are attained.
Goals and budgets spelled out for each month/quarter
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The Control Process


Set goals what do we want to achieve?
what is happening? why is it happening? what should we do about it?
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Measure performance

Evaluate performance -

Take corrective action

Benefits of Planning
It offers a road map for implementing the companys marketing activities It assists in managing control and monitoring of implementation of strategy It creates a sense of responsibility among the staff. It specifies how resources are to be allocated among the units It enables the participants to be aware of problem 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.

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