Nsanje Hills Training Institute [Duly registered with TEVETA: No.

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In partnership with Purdue University, USA
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Sales and Marketing Training Course

“The best idea for any organization is the idea of how to serve customers
better”

Training Module Notes

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Training Institute (NHTI)
UNIT 4: DEVELOPING OF THE MARKETING PLAN

MARKETING PLAN

INTRODUCTION
Arguably, the most important function of any business is marketing. To many people
marketing just means selling, but it is far more than that. Making a product or
providing a service is relatively straightforward. The hard part is ensuring that your
potential customers are aware that you exist. It is essential, therefore, to prepare a
detailed marketing plan - a plan of action.

Marketing is inherently simple; it's about targeting customers, finding out what they
want and giving it to them at a price they want to pay. But it's not so easy. There are
limitless ways to tackle marketing objectives and there's no formula for success.

The most important part of a business plan is the Marketing Plan. To keep one’s
business on course this plan must be geared toward the business’s mission—its
product and service lines, its markets, its financial situation and marketing/sales
tactics.

MEANING AND DEFINITION OF MARKETING PLAN

A marketing plan outlines the specific actions which are intended to carry out to
interest potential customers and clients and persuade them to buy the product and
services offered. A marketing plan is a business document written for the purpose of
describing the current market position of a business and its marketing strategy for the
period covered by the marketing plan. Marketing plans usually have a life of from
one to five years. The purpose of creating a marketing plan is to clearly show what
steps will be undertaken to achieve the business' marketing objectives. The marketing
plan includes information such as the product or service offered pricing, target
market, competitors, marketing budget and promotional mix.

A marketing plan is a written assessment of the current marketplace and how a

business intends to spend its marketing and advertising dollars in the future. It
identifies customers and establishes how to sell a product or service to those
customers. It identifies clear and actionable strategies for a marketing department.
The plan is often used in conjunction with development or business plans in order to
help a company achieve its growth potential.

Definitions:

“A marketing plan is a written document that summarizes what the marketer has
learned about the marketplace and indicates how the firms plan to reach its marketing
objective.” – Marian Wood.

“Marketing plans are developed for individual products, lines, brands, channels, or
customer groups. The marketing plan is one of the most important outputs of the
marketing process.” - Philip Kotler.

PURPOSE OF MARKETING PLAN

The purpose of marketing plan includes the following:

 To define the marketing objectives of the business clearly that aligns with the corporate
mission and vision of the organization. The marketing objectives indicate where the
organization wishes to be at any specific period in the future.
 Marketing plan also encompasses the strategies to increase market share. Enter new niche
markets, and increase brand awareness.
 The Marketing plan will contain a detailed budget for the funds and resources required to
carry out activities in the marketing plan.
 The marketing plan enunciates the assignment of tasks and responsibilities of marketing
activities.
 The marketing plan usually assists in the growth of the business by stating appropriate
marketing strategies, such as plans for increasing the customer base.
 The identification of business opportunities and any strategies crafted to exploit.
 Foster the review and analysis of the marketing environment, which entails market
research, customer needs assessment, competitor analysis, studying new business trends
and continuous environmental scanning.
 A marketing plan integrates business functions such as sales, production, finance, human
resources, and marketing.
Marketing plan follow a logical approach:

Company Mission Statement

Statement of Objectives

Situational Analysis

Strategy Development

Specific Plans

Implementation

Control

FEATURES OF MARKETING PLAN

The important characteristics of marketing plan are discussed as follows:

1. Continuous process:

Marketing planning is not one time activity. It is a continuous process. It starts with
identifying marketing opportunities and then designing a suitable marketing strategy.
Once the strategy is developed again the process continues with identifying marketing
opportunity. As marketing conditions are always fluctuating, firm needs to monitor
these changes continuously.
 2. Customer oriented:

All the marketing plans focus mainly on customer needs and their requirements. The
marketing plans need to be customer oriented aiming at providing maximizing
customer satisfaction. Marketing plans will be successful only if they are designed
customer oriented.

3. Written document:

Marketing plans are in form of written document. It should clearly specify the
marketing objectives. Written form of marketing plan can be used as reference in
future while carrying out marketing functions.

4. Two levels:

Marketing plans operate at two levels. i.e. long term and short term. Long term level
is known as strategic level and short term level is tactical level. The strategic
marketing plans include the target market and value proposition. Tactic marketing
plans include product features, promotion, pricing, sales, channels and services.

5. Marketing opportunities:

Marketing planning involves analysis of marketing environment. SWOT analysis

identifies the market opportunities which can be grabbed by the firm. It also analyzes
possible treats which the firm may have to face.

6. Time period:

Marketing plans can be long term and short term. The marketing plans having
duration up to one year are termed as short term plans whereas the duration of long
term plans is one year to five years.

7. Market conditions:

Marketing plans are drawn by taking into consideration the existing marketing
conditions. As the conditions are changing, according to that the marketing plan will
also change. As far as possible the marketers try to accommodate the changes in
marketing conditions into their marketing plan.
 8. Team work:

The success of marketing plan depends on support from all the team members. Team
work is essential for any marketing plan to be effective. Every member of the
organization has to contribute to the planning and implementation of marketing plan.

CONTENTS OF MARKETING PLAN

Every marketing plan has to fit the needs and situation prevailing in the market. There
are standard components which have to be included while designing the marketing
plan. A marketing plan should always have following components:

1) Situation Analysis:

Situation analysis mainly contains a market analysis i.e. SWOT analysis of the
market. It analyses strengths and weaknesses of the firm as well as opportunities and
threats possible in the market. It also includes competitive analysis. The market
analysis will include a market forecast, segmentation, customer information, and
market needs analysis. Situation analysis also includes collecting and analyzing the
information regarding market situation, customer profile and descriptions of changes
affecting the customers, competitors, and business climate.

2) Marketing Strategy:

Strategy should include at least a mission statement, objectives, and focused strategy
including market segment focus and product positioning. Marketing strategy should
specify clearly the way of carrying on marketing functions of the firm.

3) Sales Forecast:

This would include enough detail to track sales month by month and follow up on
plan-vs.-actual analysis. Normally a plan will also include specific sales by product,
by region or market segment, by channels, by manager responsibilities, and other
elements. The forecast alone is a bare minimum.
 4) Target audience:

In order to reach the marketing goal it is critical to constantly keep in mind the people
to whom who we are trying to sell. Effective marketing plan divides the public into
identifiable marketing segments to which it can approach with appropriately designed
appeals. Despite this, however, it should also be kept in mind that enterprise-wide
information integration is critical to keeping a clearly identifiable business identity.

5) Unique selling proposition (USP):

The USP is an old concept, but no less applicable than it has been for years. In order
to sell the product in the vast ocean of like products, it is necessary to determine how
that product is different, and how it stands above the rest. It is only after the company
determines this difference and brought it to the market's attention then only it will be
successful in selling efforts. Unfortunately, this is often not enough. Instead, the firm
might have to identify different USPs that appeal to different market segments.

6) Marketing Budget:

An important aspect of any marketing plan is budget. This section will help to
determine your exact financial needs for thorough marketing and advertising of
products. Marketing strategy is likely to be implemented in several phases. Hence, the
budgetary requirements for each phase of marketing activities should be specified
clearly. Firm should also offer a classification of advertising costs depending on
which advertising media. This ought to include enough detail to track expenses month
by month and follow up on plan-vs.-actual analysis. Normally a plan will also include
specific sales tactics, programs, management responsibilities, promotion, and other
elements. The expense budget is a bare minimum.

7) Marketing goals and objectives:

Marketing plan should state clearly the marketing goal and objectives of the firm. No
plans can be developed without setting objectives. Every business markets its
products or services with certain goals and objectives in mind. While the ultimate
objective of any marketing plan is to sell more products, there could also be other
goals for marketing. For example, firm may want its target audience to view its
products or services in a certain light as opposed to another. Firm may want its
prospective customers to perceive its products as a necessity rather than a luxury
item. Hence, marketing efforts will be aimed at such goals, which is why it is vital
that marketing plan lists all these goals and objectives clearly. In addition to listing
the marketing goals, it is also required to mention how firm is planning to achieve
these goals through the marketing and promotional activities. Marketing objectives
should be specific, measurable, achievable, and realistic and time bound.

8) Marketing methodology:

Marketing pan need to determine how firm is going to accomplish the marketing goal
and objectives. What tools will be used to reach these goals? Marketing methodology
clearly defines the pathway to carry on the marketing activities.

9) Market Segmentation:

The market audience is made up of a diverse group of people. Segmenting that

audience and delivering brand messages, communications, and content is critical to
engaging them. The content of marketing plan must be customized to each segment of
audience. Otherwise it will be difficult to connect with people. Market segmentation
will help the firm to spread messages, to raise brand awareness, and to boost business.
Marketing plan should be clear about who are the target audience for business is. If
the firm is planning to sell its products in different market segments, then a complete
analysis of all the market segments should be available, as also customers’ profiles
from each of these segments. What are the factors that define firm’s target market?
Why will firm’s products appeal to its audience? These are two vital questions that
should be answered by the market analysis.

10) Product details:

A good marketing plan needs to have as detailed a product description as possible.

Not only the types of products the firm is selling as well as their features and benefits,
but also need to list the disadvantages and ways to counter these negatives. The brand
name of products, as well as any safety instructions that need to be followed when
using the products should also be specified. Other necessary information that needs to
be mentioned in this section of marketing plan includes packaging information,
warranties and guarantees that will be provided with the products, information
relating to repair of damaged products, and also customer support information.

11) Pricing details:

No marketing plan is complete without adequate information regarding the pricing of

products and services. The pricing strategy of the products should be mentioned, as
well as the logic behind the pricing. The firm needs to be clear why the pricing is
competitive and how it will help to attract the customers. This section can also
include information regarding discounts and rebates that firm may offer with your
products and services. If the company plans to have annual sales or offer discounts
based on seasonal events, then it needs to detail all this in marketing plan.

12) Integration:

Content of marketing plan must be fully integrated into larger business marketing
efforts. There is perhaps no better way to surround consumers with branded
experiences than through an integrated marketing plan that includes both online and
offline content marketing as a driver of conversations, sharing, and powerful word-of-
mouth and brand loyalty.

DEVELOPING MARKETING STARTEGIES AND PLAN

Effective marketing starts with a considered, well-informed marketing strategy. A

good marketing strategy helps to define vision, mission and business goals, and
outlines the steps needed to take to achieve these goals. Marketing strategy affects the
way the business is, so it should be planned and developed in consultation with entire
team. It is a wide-reaching and comprehensive strategic planning tool that:

 describes the business and its products and services

 explains the position and role of products and services in the market
 profiles customers and competition
 identifies the marketing tactics which will be used
 Allows building a marketing plan and measuring its effectiveness.

A marketing strategy sets the overall direction and goals for the overall marketing
function, and is therefore different from a marketing plan, which outlines the specific
actions which will be taken to implement the marketing strategy. The marketing
strategy could be developed for the next few years, while the marketing plan usually
describes tactics to be achieved in the current year. The marketing planning process
involves both the development of objectives and specifications for how they will be
accomplished.

Following are the steps involved in developing marketing planning:

1. Analysis of internal marketing environment:

Marketing planning starts with analyzing marketing environment prevailing for the
company. At this stage the company needs to identify business's strengths and
weaknesses. The SW (strengths and weaknesses) analysis adopts methods such as
marketing audit, market share analysis, cost- volume- profit analysis, consumer
satisfaction index, brand equity index etc. USP of a product can be the example of
strength, whereas lack of innovation can be the example of weakness.

2. Analysis of external marketing environment:

The external market environment consists of political, social, economic, technological, legal
environmental factors. These factors help in analyzing opportunities and threats from the market
area. Opportunities and threats are factors outside the organization which are beyond the direct
control of an organization. Festive season can be an example of opportunity to make maximum
sales, whereas increasing FDI in a nation can be the example of threat to domestic players of that
nation. This OT (opportunities and threats) analysis may include political stability, changing
consumption pattern, lifestyle, liberalization, legal provisions and amendments, technical
upgradation etc. This adopts methods like demand forecasting, FDI inflow, inflation rate,
exchange rate, economic policies, budget, research studies etc.

3. Marketing Assumptions:

A good marketing plan is based on deep customer understanding and knowledge, but
it is not possible to know everything about the customer, so lot of different things are
assumed about customer. For example:-
  Target Buyer Assumptions - assumptions about who the target buyers are.
 Messaging/Offering Assumptions - assumptions about what customers think
are the most important features of product to be offered.

4. Identifying business goals:

To develop the marketing strategy, first business goals have to be identified. So that it
will be easy to define a set of marketing goals to support them. Business goals might
include:

 increasing awareness of firm’s products and services

 selling more products from a certain supplier
 Reaching a new customer segment.

5. Defining marketing goals and objectives:

After the business objectives are identified, firm has to define a set of specific
marketing goals based on the business goals. These goals will guide the firm and its
team and will help to benchmark success. Examples of marketing goals include
increased market penetration (selling more existing products to existing customers) or
market development (selling existing products to new target markets). These
marketing goals could be long-term and might take a few years to successfully
achieve. However, they should be clear and measurable and have time frames for
achievement.

Firm has to make sure that overall strategies are also practical and measurable. A
good marketing strategy will not be changed every year, but revised when the
strategies have been achieved or your marketing goals have been met. Also, you it
may be required to amend the strategy if the external market changes due to a new
competitor or new technology, or if the products substantially change.
 6. Forecast the Expected Results:

Marketing managers have to forecast the expected results. They have to project the
future numbers, characteristics, and trends in the target market. Without proper
forecasting, the marketing plan could have unrealistic goals or fall short on what is
promised to deliver.

 Forecasting Customer Response - Marketing managers have to forecast the

response that the average customers will have to marketing efforts. Without
some idea how the marketing will be received, managers can't accurately plan
the promotions.
 Forecasting Marketing cost - To make the marketing plan stronger, accurate
forecast of marketing cost is required to be done.
 Forecasting the Market - To accurately forecast the market, marketing
managers have to gain an intimate understanding of customers, their buying
behavior, and tendencies.
 Forecasting the Competition - Forecast of competition like - what they market,
how they market, what incentives they use in their marketing can help to
counter what they are doing.

7. Research your market:

Research is an essential part of designing the marketing strategy. Firm has to collect
the information about the market, such as its size, growth, social trends and
demographics (population statistics such as age, gender and family type). It is
important to keep an eye on the market so that the firm is aware of any changes over
time, so the strategy remains relevant and targeted.

8. Profile your potential customers:

The firm has to use its market research to develop a profile of the customers which
they are targeting and should identify their needs. The profile will reveal their buying
patterns, including how they buy, where they buy and what they buy. Again, regularly
review trends so the firm doesn’t miss out on new opportunities or become irrelevant
with the marketing message. While locating new customers, the firm has to make sure
that the marketing strategy will also allow maintaining relationships with the existing
customers.
 9. Profile your competitors:

Similarly, as part of the marketing strategy firm should also develop a profile of its
competitors by identifying their products, supply chains, pricing and marketing
tactics. This will be helpful in identifying firm’s competitive advantage - what sets
the business apart from its competitors. The firm may also want to identify the
strengths and weaknesses of its internal processes which will help to improve its own
performance compared with competitors.

10. Develop strategies to support your marketing goals:

The firm should list out its target markets and should devise a set of strategies to
attract and retain them. An example goal could be to increase young people's
awareness of company’s products. Then corresponding strategies could be to increase
online social media presence by posting regular updates about the product on Twitter
and Facebook, advertising in local magazines targeted to young people; and offering
discounts for students.

11. Using the '5 Ps of marketing':

The firm has to identify its tactical marketing mix by using the 5 Ps of marketing. If it
can choose the right combination of marketing across product, price, promotion, place
and people, then its marketing strategy is more likely to be a success.

12. Arrangement of resources:

Operating an effective marketing plan requires arrangement of resources in people,

money, and technology. This section of the plan details out the resources needed and
through that the marketing budget.

13. Implementation and Evaluation:

At this stage the marketing team is ready to actually start putting their plans into
action. This may involve spending money on advertising, launching new products,
interacting with potential new customers, opening new retail outlets etc.
 14. Review the performance:

The last section of the plan outlines controls that will be used to monitor progress.

Review the results for each period, may be each month or quarter, and determine if
the plan is able to meet its objectives. If necessary some modifications can be done to
make it more effective.

SUMMARY

From the above discussion it is clear that the marketing plan is the most important
tool while framing the overall marketing strategy of the organization. While
designing the marketing strategy the firm has to see that it contains all the essential
elements so that it can be implemented successfully. Developing marketing strategy
or plan is a lengthy process for the firm. But it has to be done very carefully as
effectively designed strategy can bring the desired results to the organization. While
developing the marketing strategy SWOT analysis is must. Without knowing
strengths, weaknesses, opportunities and threats it is really difficult to build an
effective marketing strategy.