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Marketing Planning, Organization and Control (1) MM

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Marketing Planning

Planning: Definitions
“A systematic process of forecasting the future
business environment and deciding on the most
appropriate goals,
goals objectives and positions for
best exploiting that environment.”
Planning is an activity and a process = formalised
The marketing PLAN;
“Provides clear and unambiguous statement [of intent] about
the strategies and actions that will be implemented, by
whom, when and with what [anticipated/required]
outcomes.”
Why Plan?
 Planning helps:
 to develop systematic, long-term thinking
 to create an organised approach
 to develop specificity & consistency
 to get agreement from colleagues &
support from others.
• common goals and mutual benefits
 toidentify sources of competitive
advantage
Benefits of Planning

Brassington & Pettitt, (2006)


Rationale for planning
Planning should answer questions including:
1) Why are we here?
• What business are we in?
2) Where are we now?
3) What issues do we face?
4) Where do we want to be?
• Goals vs. capabilities
5) How do we get there?
• Activities and Controls
Planning coordinates all
marketing activity
 Environmental analysis: SWOT
 Understanding customers: Buyer Behaviour
 Setting strategy: Segmentation, targeting and
positioning
 4P’s/ 7P’s Marketing Mix: Marketing
Programme
1. Mission
Phase One
– Goal Planning framework
Setting 2. Corporate Objectives

3. Marketing Audit
 Environmental analysis:
Phase Two SWOT
– Situation 4. SWOT Analyses
Review
 Understanding customers:
Buyer Behaviour
5. Assumptions

 Segmentation, targeting and


6. Marketing objectives & = Core positioning
Phase strategies strategy
Three –  4P’s/ 7P’s Marketing Mix
Strategy 7. Estimated results
Formation
8. Alternative plans &
mixes

Phase Four 9. Budget


– Resource
Allocation & 10. 1st yr detailed Measurement
Monitoring implementation plan & Review
Group Vision & Mission
Mission statement or
Corporate objectives
Sets out:
 Specific long-term objectives for the company
and organisation as a whole
 Like all objectives, should be SMART:
 Specific, Measurable, Actionable, Realistic,
Timed
Objectives will include:
 Performance Objectives
 Directional Objectives
 External Objectives
 Internal Objectives
Situation Audit
External Macro Environment Micro Environment
Factors Political Competitors
Economic
Suppliers
Social/Cultural
Technological Distributors
Legal Customers/Market
Environmental Trends
(CSR/Green/Ethics)

Internal Position Capability


Factors Financial Situation Organizational
Market Position Structure
Operations
Management and
Marketing Research
Workforce
Products
Pricing Capability for
Selling and Distribution Change
Advertising and Sales
Promotion
Marketing Strategy & Actions

 Includes:
 target market
 positioning
 marketing mix
 customer service
 research and development
 marketing research
Marketing Organization

 Organization is not an end in itself but


a means to the end of business
performance and business results.
 It also provides a vehicle through
which the decisions are implemented.
 It refers to dividing the work according
to the different skills, efforts and
facilities.
Need and Importance of
Marketing Organization
 To divide and fix authority among the
subordinates.
 To locate responsibility
 To establish sales routine
 To avoid repetitive duties
 To enable the top executives to
devote more time in planning policy
matters.
Principles of Organization
 There must be clear lines of authority from top to
bottom.
 Responsibility should always be coupled with
corresponding authority.
 There should be a limit to the number of positions
 The organization should be kept as simple as
possible.
 No one in organization should report to more than
one line authority.
 The organization should be flexible so that it can be
adjusted to changing conditions.
Marketing Organization
structures
 Function oriented-marketing organization
 Product –oriented marketing organization
 Customer-oriented marketing organization
 Geography –oriented marketing organization
 Combined base
(Functional specialists are appointed who report to general marketing manager)
Product basis departmentation
Customer/distribution channels departmentation .
Geographic / territorial or area type of departmentation of
sales organization
Based on functions,products,customer and territory departmentation
Control and Evaluation Process

Measures include:
•performance
measurements

•evaluation mechanisms

•feedback mechanisms

•contingency planning

•Budgets / Profit & Loss


Brassington &
Pettitt, (2006)
Marketing Costs and Profitability
Analysis

Brassington & Pettitt, (2006)


Problems with planning

Companies become obsessed with the process or


technique rather than the actual content and
delivery of the plan!!
Unreliable or insufficient market research data can
make plans flawed from beginning!

 However all organisations should plan!


Marketing Planning is
Essential!
Conflicting pressures make choices difficult:

Enhancing Increasing
customer service Vs. profitability

Short-term Long-term
Vs.
profit value creation

Revenue Vs. Cost


maximisation minimisation

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