How to develop a marketing plan


Published on

Published in: Business, News & Politics

How to develop a marketing plan

  1. 1. Developing the Marketing Plan Maxwell Ranasinghe- Sri Lanka B.Sc. ( Business Administration) Hons. Attorney at Law, CPM ( New Haven- USA) MSLIM , MAAT Contact:
  2. 2. • Management is “a set of activities including planning and decision making, leading and controlling directed at organisation’s resources: human, financial, physical and information, with the aim of achieving organisational goals in an efficient and effective manner “– ( R.W. Griffin -2005)
  3. 3. • Of the five management functions — planning, organizing, staffing, leading and controlling , planning is the most fundamental.• All other functions stem from planning. Therefore planning is a major component of management.• However, planning doesnt always get the attention that it deserves.•
  4. 4. Purpose of a Marketing Plan “ Goals and plans”• A goal is a desired future state that the organization attempts to realize in a given environment.• A plan is a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions.• Goals specify future ends; plans specify todays means of achieving them.
  5. 5.  The word planning in context of management, incorporates determining the organizations goals and defining the means for achieving them. It is said that if you “fail to plan you are planning to fail” Therefore, planning is an essential strategic activity and it is an intrinsic part of efficient and effective management. When it relates to marketing, purpose of planning is to achieve marketing goals in an efficient and effective manner.
  6. 6. The Connection of the Marketing Plan with a Corporate plan There are many types of plans in organizations. Strategic Corporate Plans addresses the entire organization, it emanates from the corporate vision of a firm, Then comes the Business Unit Plans which addresses the requirements of specific business units. There are other functional plans such as operations, logistics, HR, Financial, Production and Marketing which are supporting to achieve the broader objectives of the corporate plans. These plans are internal and they are not divulged to others. Our subject matter here is “Marketing Planning” and therefore we would deal it in detail
  7. 7. What really is marketing planning A Marketing Plan is a blue print that elaborates a systematic, inter connected, logical step by step processes for achieving marketing goals. It analyses the internal and external environment, markets, competitors, specifies the marketing objectives, necessary strategies, tactics, resource allocations, schedules, tasks, and embeds the controls and other actions required in connection with attaining marketing goals in an efficient and effective manner. It specifies what should be done today to achieve goals ahead and it is the marketer’s road map for desired destination.
  8. 8. Understanding the Essential Steps of a Marketing Plan Hiebing and Cooper( 2003) succinctly sates that a marketing plan should be a disciplined, target market driven, interlocking ( not just integrated) and comprehensive plan in order to make it a successful tool in the process of achieving marketing goals. Therefore, it has to be a comprehensive plan that gives importance to each and every element of a plan. Nothing is taken for granted and nothing or very little is left for chance. Thus they call the marketing plan as “ Disciplined Marketing Plan” and lists important steps to follow in the process of marketing planning.
  9. 9. Generic Marketing planning process• The corporate objectives should be in line with the vision and mission of the company.• The marketing plan stems from the corporate objectives• Marketing plan is a tool to achieve corporate objectives• Marketing plan has a cyclic character.
  10. 10. Marketing planning process Where are We now Did we get there Where do We want to go How do we Ensure Arrival How do we Get there
  11. 11. Situational Analysis• Where we are now? ( Also known as Situational Analysis and Marketing Audit)• Internal Analysis( Internal Audit)• Environmental Analysis( External Audit) – PESTEEL Analysis – Competitor Analysis – Market Analysis• SWOT Analysis
  12. 12. Situational Analysis cont…• Before anything is planned, firm needs to understand where it stands now in relation to its internal and external environment• Internal environment ( strengths & weaknesses) – Financial – Managerial – Marketing – Production – Human Resources – Information Technology
  13. 13. Situational Analysis cont…• External Environment ( Threats and Opportunities) – Comprehensive PESTEEL analysis • Political, Economical, Social and Cultural, Technological, Environmental, Ethical and Legal aspects has to be analysed in relation to the industry , market and the product
  14. 14. – Comparative Analysis of Competitors– major competitors their market standing , reputation, brands, profitability etc.– Their strategies as to product, pricing, distribution, promotion,– Trade practices and associations etc– Michael Porters Five Force Competitive Model also should be analysed to find out the attractiveness of the industry
  15. 15. • Market Analysis- (Customers/ Demand) – Market size, different segments, growth, trends. Future market and demand – Customer preferences, attitudes and buyer behavior, needs and wants, decision making units and the process, disposable income etc.
  16. 16. SWOT• It is a good snap shot of the firm• SWOT Analysis is taken from the Internal and External Analysis.• Strengths (Firm need to Consolidate)• Weaknesses ( Firm need to Minimize)• Opportunities( Firm need to Exploit)• Threats ( Firm need to Overcome)
  17. 17. Sales and Marketing Objectives ( Where do we want to be? ) • SWOT will enable the marketer to determine the overall objectives. • Objectives will gives a clear sense of direction ( where we should go) • Objectives will help to stimulate effort of individuals to achieve targets because it gives direction and focus • Objectives will provide the basis for control in an organisation. Unless we know precisely what is required, it is difficult to know the extent to which we have achieved.
  18. 18. • Objectives should be SMART • Specific-What need of the market that the company is going to serve. Sales targets- Sales volume, units, share of the market to catch etc. • Measurable- Quantified eg. 50 million, 25% of the market share etc • Achievable – It should be realistic • Relevant – It should be in line with the corporate objecctive • Time frame- deadlines and periods for achieving objectives should be stated. Within 6 months etc.
  19. 19. Sales Objectives• Proper sales forecast has to be made before sales objectives are made. There are many methods available to forecast sales. Eg. Sales Composite method, Jury method, exponential smoothing, moving average other mathematical methods etc.• E.g. Sales objective of a firm of branded luxury clothing could be “To increase sales by 10% from Rs. 500 million within twelve months ”• Sales objectives lead to set marketing objectives.
  20. 20. Marketing ObjectivesIt describes the expected behavior of the targetmarket ( customers) required to reach salesobjectives. One could even use the Ansoffs Matrix todevelop marketing objectives to grow sales. • It could be retention of current customers • It could be increasing purchases of current customers • It could be trail purchases from new customers • It could be repeat purchases from new customers • It could even be blocking competition, developing a new market.
  21. 21. • Setting marketing objectives are important since they often shed light on underlying conditions and circumstances facing the firm that are not easily seen within financial measures• The marketing objectives will indicate targets to be achieved across several marketing decision areas.
  22. 22. Marketing Strategies:• A marketing strategy entails how an individual marketing objective will be reached.• While the Sales and marketing objectives are SMART, marketing strategies are descriptive. They go into detail how objectives are achieved.
  23. 23. Overall Marketing Strategies ( How might we get there)• 1.Target Marketing Strategies• 2. Marketing Mix Strategies
  24. 24. Target Marketing Strategies• Refer to the market segments identified• Select the segment/segments to be served• Position your product in the targeted segment/segments
  25. 25. 3. Marketing Mix Strategy• Once the STP strategy is completed marketer will proceed to develop the marketing Mix strategies appropriate for the positioning and target markets selected.
  26. 26. Marketing Mix Strategies• Product – Product Strategy, Brand name, Description, Packaging)• Price- Pricing strategy, Cost and Prices of different products, prices for distributors, final price for consumers,
  27. 27. • Distribution- Distribution strategy, Distribution methods, Distribution Channels, Channel motivators, return policy, Channel support etc. • Promotion- Promotion Strategy, Promotion methods, Media Channel selection, Media Plan, Media Schedules, Publicity Programs, Public relations, press conference, Press articles,• Sales Promotions, Cost analysis,
  28. 28. • e. Physical evidence- Buildings, Interior décor, visiting cards, letter heads, music, technology in office and factory• f. Process- order placing, order taking,, quality controls, packing process, storing of materials and finished products distribution etc.• g. People- Dress, Courtesy, Personal Selling, Physical appearance, Compliant handling,
  29. 29. Action Plans, Key Performance Indicators and Budgeting• Action Plans – Who does what and when Activity responsi Budget Jan Feb March bility Market max 20000 xx analysis New Nimal 30000 xx adds New Jagath 40000 xxx XXX Brand name
  30. 30. Forecasting income and expenditure• Break up the overall sales income set at the objectives stage and other expenses and activities planned into different months or quarters• The breakup should be based on the expectations of the effect of the strategies to be used• This is needed to monitor and control the marketing plan
  31. 31. BUDGETS Different budgetary allocations to be made on different headings ofexpenses that would incur in the process of achieving forecasted sales and other objectivesDescription Quarter 1 Quarter 2 Quarter 3Sales UnitsSales amountLess-Manufacturing costLess-Administrative CostDistribution CostFinancial CostOther CostNet ProfitTaxROIPay back periodBreak Even point
  32. 32. Marketing Control Process ( How do we ensure arrival)Marketing controls are important to ensure that the set marketing plans are carried out as planned.• Set Key Performance indicators ( this could be obtained by analysing Action Plans and budgets)• Collect information from actual performances• Compare with the key performance indicators• Detect any deviations• Take corrective actions (Action should be Proactive rather than reactive)
  33. 33. Marketing Control Process Marketing plan •Objectives •Strategies •Action plans Set Performance indicators Corrective yes action Collect Performance details Deviation Compare performancescontinue No
  34. 34. Support your plan with Appendixes and references • Research Findings • Sources and reference of books, newspapers, magazines, persons where information is taken. • Price Lists of raw material prices, estimates, quotations • Media rate cards • Any other supporting documents to prove your estimates and claims.