Marketing Planning, Organization and Audit


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Marketing Planning, Organization and Audit

  2. 2. Marketing Organization This Module Includes Marketing Planning: Meaning, Concepts of Marketing plan, Steps involved in planning. Marketing Organization: Factors influencing the size of the marketing organization, various types of marketing structures/Organizations. Marketing Audit: Meaning, Features of marketing audit, various components of marketing audit.
  3. 3. Marketing Organization Marketing Planning • A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. • It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. • A marketing plan may be part of an overall business plan. • Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. • A marketing plan is a written document containing the guidelines for the business centers marketing the programmes and allocations over the planning period. • A written plan provides a vehicle for communication between different functional areas of the organization like manufacturing ,sales finance, and distribution which is very vital for successful implementation of the plan. • Marketing plan can be prepared for one product or brand ,for an entire product category ,or for specific brands depending on the priority and size of each.
  4. 4. Marketing Organization Marketing Planning: Objectives • To define the current situation facing the product • To define problems and opportunities facing the business. • To establish objectives. • To define the strategies and programmes necessary to achieve the objectives. • To pinpoint the responsibilities for achieving the objectives. • To encourage careful and disciplined thinking • To establish a customer –competitor orientation
  5. 5. Marketing Organization Marketing Planning-Steps 1. Determine the firm’s mission. 2. Set company goals. 3. Perform external analysis. 4. Perform internal analysis. 5. Establish marketing goals. 6. Define strategies to achieve your goals. 7. Research and refine strategies. 8. Create and refine promotional and sales tactics. 9. Implement the plan. 10. Evaluate the plan in action. DSP PED RCIE
  6. 6. Marketing Organization Marketing Plan-Components a) Executive summary b) Situation analysis c) Threats and opportunity analysis d) Objectives e) Marketing strategies f) Marketing action programmes g) budget allocation h) Monitors and controls
  7. 7. Marketing Organization Marketing Plan-Advantages and Limitations Advantages  identifies needs and wants of consumers  determines demand for product  aids in design of products that fulfill consumers needs  identifies competitors and analyzes your product's or firm's competitive advantage  identifies new product areas  identifies new and/or potential customers  allows for test to see if strategies are giving the desired results Disadvantages/Limitations  identifies weaknesses in your business skills  leads to faulty marketing decisions based on improperly analyzed data  creates unrealistic financial projections if information is interpreted incorrectly  identifies weaknesses in your overall business plan
  8. 8. Marketing Organization Marketing Organization • Marketing Organization: • any organization that markets one or more systems, applications, and/or components produced by a development organization to potential customer organizations. • Responsibilities The typical responsibilities of a Marketing Organization are to: • Market applications to the customer organization(s). • Provide change requests based on customer feedback to the development organization. • Act as a source of requirements during the performance of the requirements identification task. • This organization typically inherits the common responsibilities from the organization method component
  9. 9. Marketing Organization Marketing Organization • Modern marketing organization are structured on the basis of concepts like production marketing hrm etc in most companies. This modern marketing organization structure has evolved after passing through many stages  Simple sales department  Sales department with some marketing function  Separate marketing department  Integrated marketing department  Modern marketing oriented organization
  10. 10. Marketing Organization Marketing Organization-Factors Influencing MO Factors influencing marketing org can be categorized into internal and external factors Internal: 1. Top Management Philosophy: Organizational planning and its working is greatly influenced by philosophy which can be good or bad eg: Centralization Vs Decentralization 2. Product policy: the width of product line of an org determines its size as the product offerings becomes increasingly diverse. Eg: There could be a need to move away from straight functional approach to product group approach. 3. People: The size of the organization is not an important factor in terms of number of people but it is important with respect to human values which are critical and correct decisions regarding people cannot be made unless taking into consideration Number Qualifications Capabilities Personality Attitude
  11. 11. Marketing Organization External Factors: 1. Business Environment: With regards to business environment three points are important. a. The type of environment in which the firm is operating in terms of operations and size. b. The Nature of particular requirement for success in a given business which again determines the size. c. The rate of change in industries being served which again decides on its size and working. 2. Markets: This is the factor which again affects the marketing organization i.e. one should note about its a. Size b. Scope c. Nature d. Location Based on the above aspects we need to design the size of the organization. 3. Consumer requirements and expectations: Consumers have their own set of requirements and expectations from the organization. The more varied and vivid services they expect that the usual requirements. as a marketer we need to increase the workload depending upon the consumer requirements and expectations 4. Channels of distribution: It is the type of channel of distribution which a marketing firm selects based on its size. Ex : Incase the company opts for indirect channel or channels it depends on outside sales force and hence the organization gets thinner. When the organization selects direct channel its size is increased as it has its own sales force. Marketing Organization-Factors Influencing MO
  12. 12. Marketing Organization Marketing Organization: Roles of Manager • Develop long-range and competitive strategy for each product • Prepare annual marketing plan and sales forecast • Work with advertising and merchandising agencies to develop campaigns • Increase support of the product among channel members • Gather continuous intelligence on product performance, customer attitudes • Initiate product improvements
  13. 13. Marketing Organization Marketing Organization Types a. Line and staff organization b. Functional Organization c. Product oriented marketing organization d. Customer oriented marketing organization e. Geography oriented marketing organization f. Matrix form / Combined base
  14. 14. Marketing Organization Line and Staff Organization 1. Line and Staff Organization: In most business forms especially medium size the marketing job is structured around few line functions and few staff functions i.e. Major staff functions is organized into separate department and the line function is responsible for sales department. The required coordination between the line and staff function is managed by the executive at higher level. Merits: 1. Provides expert advice from specialists 2. Relives line executes of routine, specialize functions 3. Enables young sales executive to acquire expertise 4. Helps in achieving effective coordination 5. Easy to operate 6. Less Expensive Demerits: 1. Produce confusions arriving from indeterminate authority relationships 2. Curbs the authority of experts 3. Too much is expected from executives 4. Decision making is taken by top management - Head marketing
  15. 15. Marketing Organization Functional Organization Advantages  It is administratively simple as the groups are designed to parallel to normal marketing activities  It gives scope for specialization or functional training.  Specialisation – each department focuses on its own work  Accountability – someone is responsible for the section  Clarity – know your and others’ roles Disadvantages  Closed communication could lead to lack of focus  Departments can become unwilling to change  Coordination may take too long  Gap between top and bottom
  16. 16. Marketing Organization Product Oriented Marketing Organization Organizations that produce wide variety of products often organize marketing, training and promotion with respect to a product. Merits: 1. The salesmen can render better customer service as they possess good knowledge of product and may have close contacts with customers. 2. It makes individual departments responsible for the promotion of specific products. 3. It facilitates effective coordination Demerits: 1. It increases the employment of a number of managerial personal 2. Many salesmen of same enterprise attend same customer each representing a separate product which creates confusion in the minds of the customer. 3. There may be duplication of activities
  17. 17. Marketing Organization Marketing Organization: Product Based • PM = Product Manager • APM = Associate PM • PA = Product Assistant Triangular Product Team • PM = Product Manager • R = Market Researcher • C = Communication Specialist Horizontal Product Team • PM = Product Manager • R = Market Researcher • C = Communication Specialist • S = Sales Manager • D = Distribution Specialist • F = Finance Specialist • E = Engineer
  18. 18. Marketing Organization Product Manager Interactions
  19. 19. Marketing Organization Customer Oriented Organization Customer Oriented Marketing Organization: When the departmentation of sales organization is done on customer basis it is called customer oriented marketing organization. Departmentation by customer may be done in enterprise engaged in providing specialized services to different classes of customers. Merits: 1. It takes into account needs of each class of customers. 2. IT provides specialization among the enterprise staff Demerits: 1. It makes coordination difficult 2. It may lead to under utilization of resources in same department 3. There may be duplication of activities 4. These types of sales organizations are not suitable for small enterprises.
  20. 20. Marketing Organization Geography/Territorial Organizations Geography/Territory: In a territory oriented marketing organization , the responsibilities for marketing of various products rests almost entirely with line executives .The territory managers are given varying nomenclatures like depot manager, district manager, area manager, zonal manager , divisional manager etc. Merits: 1. It leads to economy in terms of times and money 2. It helps in taking knowledge of local customers 3. It helps in effective control Demerits: 1. It requires employment of number of managerial personnel. 2. It dilutes control from head quarters
  21. 21. Marketing Organization Matrix Organization
  22. 22. Marketing Organization Marketing Audit The marketing audit has certain similarities to a financial audit in that it is a review or appraisal of your existing marketing activities. Carrying out the marketing audit provides the opportunity to review and appraise your whole marketing activity, enabling you to assess past and present performance as well as to provide the basis for evaluating possible future courses of action. Because the business environment is constantly changing, the marketing audit should be used as a reference tool, with constant updates reflecting changes in the external environment and your own internal business experiences. Strategic tool used to review the effectiveness of a marketing program. A marketing audit is a comprehensive, systematic, periodic evaluation of a company's marketing capabilities. The audit examines the goals, policies, and strategies of the marketing function as well as the methods of the organization and the personnel who carry out the goals, policies, and strategies of the marketing function. Marketing audits are performed on a regular basis by an unbiased, independent company and are used to improve a company's overall marketing performance or to establish new marketing plans.
  23. 23. Marketing Organization Marketing Audit Definition: Marketing Audit is a comprehensive, systematic, independent, 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. According to: The Father of Modern Marketing Prof. PHILIP KOTLER And Father of Brand Management Prof. KEVIN LANE KELLER
  24. 24. Marketing Organization Marketing Audit Features 1. Comprehensive. The marketing audit covers all the major marketing activities of a business. A comprehensive marketing audit is more effective in locating the real source of company‘s marketing problems. 2. Systematic. Marketing audit is an orderly examination of the organisation‘s total marketing environment, marketing objectives and strategies, marketing systems, and specific marketing activities. The diagnosis is followed by a corrective action plan to improve the organization's overall marketing effort. 3. Independent. Marketing audit is an independent and intelligent activity in that it can be conducted in six ways: self audit, audit from across, audit from above company auditing office, company task force audit and outsider audit. Generally speaking, the best audits come from outside audit consultants. 4. Periodic. A sound marketing audit is one which is conducted periodically as a weapon to signal the troubles or the signs of success. Typically, marketing audits are initiated only after sales have turned down, salesforce morale has fallen, and other company problems have occurred.
  25. 25. Marketing Organization Marketing Audit Issues • Internal audit (Portfolio analysis, PLC) • Macro-environment • Task environment (Competition, channels, customers) • Markets • Strategic issues (segmentation, positioning, competitive advantage) • Marketing mix (7Ps) • Marketing organisational structure and organisation
  26. 26. Marketing Organization Marketing Audit Components Part I:Marketing-Environment Audit Part II: Marketing-Strategy Audit Part III: Marketing-Organization Audit Part 1V: Marketing-Systems Audit Part V:Marketing-Productivity Audit Part VI: Marketing-Function Audits
  27. 27. Marketing Organization Marketing Audit Components Part 1:Marketing-Environment 1.Macro environment A Demographic  What major demographic developments and / or trends pose opportunities or threats to this company  What actions company has taken in response to these developments and / or trends? B Economic  What major developments in the income, prices, or savings of company’s consumers will affect company  Is company competing as a form of entertainment for consumers?  What actions has company been taking in response to these developments and trends? C. Ecological  What is the outlook for the cost and availability of natural resources and energy needed by the company?  What concerns have been expressed about the company's role in pollution and conservation, and what steps has the company taken?
  28. 28. Marketing Organization Marketing Audit Components D Technological • What major changes are occurring in product technology? What is the company's position in these technologies? • What major generic substitutes might replace this product E Political • What laws are being proposed that could affect marketing strategy and tactics? • What federal, state, and local actions should be watched? What is happening in the areas of pollution control, equal employment opportunity, product safety, advertising, price control, and so forth, that affects marketing strategy? F Cultural • What is the public's attitude toward business and toward the products produced by the company? • What changes in consumer and business lifestyles and values have a bearing on the company?
  29. 29. Marketing Organization Marketing Audit Components 2.Task Environment A. Markets • What is happening to market size, growth, geographical distribution, and profits? • What are the major market segments? B. Customers • How do customers and prospects rate the company and its competitors on reputation, product quality, service, sales force, and price? • How do different customer segments make their buying decisions? C. Competitors • Who are the major competitors? What are their objectives and strategies, their strengths and weaknesses, their sizes and market shares? What trends will affect future competition and substitutes for this product? D. Suppliers • What is the outlook for the availability of key resources used in production? • What trends are occurring among suppliers in their pattern of selling?
  30. 30. Marketing Organization Marketing Audit Components E. Distribution and Dealers • What are the main trade channels for bringing products to and Dealers customers? • What are the efficiency levels and growth potentials of the different trade channels? F. Facilitator and Marketing Firms • What is the cost and availability outlook for transportation Marketing Firms services? • What is the cost and availability outlook for warehousing facilities? • What is the cost and availability outlook for financial resources? • How effective are the company's advertising agencies and marketing research firms? G. Publics • What publics represent particular opportunities or problems for the company? • What steps has the company taken to deal with each public?
  31. 31. Marketing OrganizationMarketing Audit Components • Part II. Marketing-Strategy Audit A. Business Mission • Is the business mission clearly stated in market-oriented terms? Is it feasible? B. Marketing Objectives and Goals • Are the corporate and marketing objectives stated in the form of clear goals to guide marketing planning and performance measurement? • Are the marketing objectives appropriate, given the company's competitive position, resources, and opportunities? C. Strategy • Is management able to articulate a clear marketing strategy for achieving its marketing objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the product life cycle, competitors' strategies, and the state of the economy? • Is the company using the best basis for market segmentation? Does it have sound criteria for rating the segments and choosing the best ones? Has it developed accurate profiles of each target segment? • Has the company developed a sound positioning and marketing mix for each target segment? Are marketing resources allocated optimally to the major elements of the marketing mix -- i.e., product quality, service, sales force, advertising, promotion, and distribution? • Are enough resources or too many resources budgeted to accomplish the marketing objectives?
  32. 32. Marketing Organization Marketing Audit Components • Part III. Marketing-Organization Audit A. Formal Structure • Does the marketing officer have adequate authority over, and responsibility for, Structure company activities that affect the customer's satisfaction? • Are the marketing activities optimally structured along functional, product, end- user, and territorial lines? B. Functional Efficiency • Are there good communication and working relations between marketing and Efficiency sales? • Is the product management system working effectively? Are product managers able to plan profits or only sales volume? • Are there any groups in marketing that need more training, motivation, supervision, or evaluation? C. Interface Efficiency • Are there any problems between marketing and manufacturing, R&D, purchasing, Efficiency finance, accounting, and legal that need attention.
  33. 33. Marketing Organization Marketing Audit Components • Part 1V. Marketing-Systems Audit A. Marketing Information System • Is the marketing intelligence system producing accurate, sufficient, and timely information about marketplace developments with respect to customers, prospects, distributors and dealers, competitors, suppliers, and various publics? • Are company decision makers asking for enough marketing research, and are they using the results? • Is the company employing the best methods for market and sales forecasting? B. Marketing Planning System • Is the marketing planning system well conceived and effective? • Is sales forecasting and market potential measurement soundly carried out? • Are sales quotas set on a proper basis?
  34. 34. Marketing Organization Marketing Audit Components C. Marketing Control System • Are the control procedures adequate to ensure that the annual-plan objectives are being achieved? • Does management periodically analyze the profitability of products, markets, territories, and channels of distribution? • Are marketing costs periodically examined? D. New-Product Development System • Is the company well organized to gather, generate, and screen new-product ideas? • Does the company do adequate concept research and business analysis before investing in new ideas? • Does the company carry out adequate product and market testing before launching new products?
  35. 35. Marketing Organization • Part V. Marketing-Productivity Audit A. Profitability Analysis • What is the profitability of the company's different products, markets, territories and channels of distribution? • Should the company enter, expand, contract, or withdraw from any business segments and what would be the short- and long-run profit consequences? B. Cost Effectiveness Analysis • Do any marketing activities seem to have excessive costs? Can cost-reducing steps be taken? Marketing Audit Components
  36. 36. Marketing Organization Marketing Audit Components • Part VI. Marketing-Function Audits A. Products • What are the product-line objectives? Are these objectives sound? Is the current product line meeting the objectives? • Should the product line be stretched or contracted upward, downward, or both ways? • Which products should be phased out? Which products should be added? • What is the buyers' knowledge and attitudes toward the company's and competitors' product quality, features, styling, brand names, etc.? What areas of product strategy need improvement? B. Price • what are the pricing objectives, policies, strategies, and procedures? To what extent are prices set on cost, demand, and competitive criteria? • Do the customers see the company's prices as being in line with the value of its offer? • What does management know about the price elasticity of demand experience curve effects, and competitors' prices and pricing policies? • To what extent are price policies compatible with the needs of distributors and dealers, suppliers, and government regulation?
  37. 37. Marketing Organization Marketing Audit Components C. Distribution • What are the distribution objectives and strategies? • Is there adequate market coverage and service? • How effective are the following channel members distributors, dealers, manufacturers representatives, brokers, agents, etc.? • Should the company consider changing its distribution channels? D. Advertising, Sales Promotion, and Publicity • What are the organization's advertising objectives? Are they sound? • Is the right amount being spent on advertising? How is the budget determined? • Are the ad themes and copy effective? What do customers and the public think and Publicity about the advertising? • Are the advertising media well chosen? • Is the internal advertising staff adequate? • Is the sales-promotion budget adequate? Is there effective and sufficient use of sales-promotion tools such as samples, coupons, displays, sales contests? • Is the publicity budget adequate? Is the public relations staff competent and creative?
  38. 38. Marketing Organization Marketing Audit Components E. Sales force What are the organization's sales force objectives? Is the sales force large enough to accomplish the company's objectives? Is the sales force organized along the proper principles of specialization (territory, market, product)? Are there enough (or too many) sales managers to guide the field sales representatives? Does the sales-compensation level and structure provide adequate incentive and reward? Does the sales force show high morale, ability, and effort? Are the procedures adequate for setting quotas and evaluating performances? How does the company's sales force compare to competitors sales force?
  39. 39. Marketing Organization Marketing In Indian Railways Movies i.e. Indian Film Industry is Associated with Indian Railways which is a Strategy to Market there movies Across the Country.
  40. 40. All the Best For Exams Thank You For Your Kind Support!!! Last Video