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Marketing planning process final


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Marketing planning process final

  1. 1. 13443734 Marketing Planning Process 1SESSION : MARCH 2012UNIT TITLE : MPPCANDIDATE REG. NUMBER : 13443734WORD COUNT : 2963‘I confirm that in forwarding this assignment for making, Iunderstand and have applied the CIM policies relating to wordcount, plagiarism and collusion for all tasks. This assignmentis a result of my own independent work/ investigation exceptwhere otherwise stated. Other sources are acknowledged inthe body of the text and/or a bibliography is appended. Thework that I have submitted has not previously been accepted insubstance for any other award. I further confirm that I havenot shared my work with other candidates’
  2. 2. 13443734 Marketing Planning Process 2Prepared for : Zimbabwe NewspapersPrepared by : Marketing ManagerDate : January 2012Subject :Medium – term Marketing planning to address threats in the external environment of Zimbabwe Newspapers
  3. 3. 13443734 Marketing Planning Process 3TABLE OF CONTENTSContent Page 1.Executive Summary 4 2.Corporate Mission 5 3.Summary of audit findings 5 4.SWOT Analysis 6 5.Marketing objectives 6-7 6.Marketing Strategies 7 - 10 7.Marketing mix decisions 11 - 12 8.Budgets 12 9.Implementation 12 10. Evaluation and Control 13APPENDICES 1.Appendix 1 : Organizational background 2.Appendix 2 : Audit Findings 3.Appendix 3 : Gabriel’s credibility Matrix 4.Appendix 4 : Implementation / Schedule of activities 5.Evaluation Report 6.References
  4. 4. 13443734 Marketing Planning Process 41.0 EXECUTIVE SUMMARY Zimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald and the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The Sunday Mail and Kwayedza. Zimbabwe Newspapers mission is to produce newspapers, print and package products and offer publishing services that add value to our customers, employees and shareholders Threats exist because of the following changes in the external environment: 1. Deregulation of the newspaper industry. 2. Political interference 3. The growing use of direct mail is at the expense of newspaper revenues. 4. Great presence of substitutes such as television news, radio news, internet news and mobile news. 5. The growing use of internet as an advertising channel. 6. Demographic change. Due to the above changes in the external environment Zimbabwe Newspapers wishes to reposition itself in the next 3 to 4 years in order to maintain its position as market leader and increase sales of all newspapers by 20% in the next four years and achieve a market share of 52% of its flagship newspaper, The Herald in 3 years. In order to achieve this Zimbabwe Newspapers needs to invest in a number of activities that will make it realize a positive change. The activities will include Ansoff growth strategies such as market penetration, product development, market development and diversification, market positioning strategies as well as improving the 7 Ps of marketing in order to increase sales. However there are factors that will affect the implementation of the marketing plan such as limited funding and managerial, cultural and organizational issues such as poor and inadequate marketing intelligence, poor internal communication in marketing between functions and lack of skills and training. RATIONALE As technology advances, the demand of print media decreases and consumers now opt to read the news online which is much cheaper. The threat of substitutes such as such as television news, radio news and other online news which brings news to the customer much faster, cheaper and in a more visual style than newspapers has also reduced the demand of Zimbabwe Newspapers publications. The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper advertising The growing use of internet has gone a step further than television in eroding the advertising income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. Furthermore the liberation of the newspaper industry resulted in stiff competition and market loss. It is against this background that Zimbabwe Newspapers needs a marketing plan to address threats as a result of changes in the external environment.
  5. 5. 13443734 Marketing Planning Process 52.0 CORPORATE MISSION STATEMENT To produce Newspapers, Print and Package Product and offer publishing services that add value to our customers, employees and shareholders. Core Values • Customer Satisfaction • Good corporate governance • Equal opportunity employer • Profitability • Quality products and services3.0 SUMMARY OF AUDIT FINDINGS 3.1 Political factors • Unstable political environment • Growing political focus and pressure • Government of Nation Unity not agreeing in policy making. Economic • High unemployment rate • Underperforming economy • Less disposable income • Lack of borrowing facilities Social • HIV/AIDS pandemic • Growing use of internet Technological • Internet and satellite television Environmental • Government and pressure groups raise awareness of environmental preservation. Legal • Deregulation of newspaper industry 3.2 Competitive environment Zimbabwe Newspapers main competitors are Alpha Media Holdings and Associated Newspapers of Zimbabwe. 1. Competitive intensity: Less competitive as there are few firms holding large market share. 2. Barriers of entry: High, requires specialized technology and high minimum efficient scale. 3. Bargaining power of suppliers: High, few suppliers of newsprint and ink in Southern Africa. 4. Bargaining powers of buyers: weak buyers are fragmented, no buyer has influence over price or product. 5. Threat of substitutes: High because of television news, radio news, mobile news and other online news.
  6. 6. 13443734 Marketing Planning Process 6 4.0 SWOT Analysis for Zimbabwe Newspapers Strengths • Strong brands • Innovative company • Favorable access to distribution networks Weakness • No customer retention policy • Poor customer service delivery • Newspapers viewed as political biased • Insufficient operational resources Opportunities • High potential readers because of high literacy rate in Zimbabwe • Stabilized prices because of adoption of foreign currency • High potential distributors • Technological advances • Government support Threats • Competition from deregulation of newspaper industry • Change of government • Substitutes • Growing use of internet advertising • Demographic change • Growing use of direct mail 4.2 Key issues: Threats Scenario planning (BP Marketing planning December 2010 Study Text, pg98) Business Impact LOW HIGH H Political instability I Substitutes G Competition H Technological advances L Political interference O High unemployment rate Reduced demand of print media W5.0 OBJECTIVES Marketing Objectives • To increases sales of all newspapers by 20% in the next four years • Enhance brand visibility of all newspapers and loyalty through repeat purchases • Establish 50 distribution outlets in the neighboring countries in the next 4 years.
  7. 7. 13443734 Marketing Planning Process 7 • Achieve advertising sales revenue of $1 billion dollars over 5 years. • Achieve market share of 52% for The Herald in 3 years. Financial Objectives • To achieve a breakeven point within the fourth quarter of the year. • To increase the profit margin by 1.5 % per quarter for the following four years • 10% growth rate for the next five years 6.0 STRATEGYAnsoff Growth Strategies suggest four ways for organizational growth which are through Market Penetration,Product Development, Market Development and Diversification. In Zimbabwe Newspapers situation, Marketpenetration and market development would be adopted. Ansoff Product – Market Growth Matrix PRODUCTS Existing Products New Products MARKET PRODUCT PENETRATION DEVELOPMENT MARKET DIVERSFICATION DEVELOPMENTMarket Penetration involves selling more of existing products in existing market. Zimbabwe Newspapers canpenetrate markets by gaining competitors customers this would require a much more aggressive promotionalcampaign, supported by a pricing strategy designed to make the market unattractive for competitors, improvingthe product quality or level of service and attracting non-readers of Zimbabwe newspaper publications orconvincing current customers to read more of the company’s newspapers, with the use of marketingcommunications tools.Market penetration seeks to achieve four main objectives: 1. Maintain or increase the market share of current products. 2. Secure dominance of growth market. 3. Restructure a mature market by driving out competitors. 4. Increase usage by existing customers.Market Development is a growth strategy where Zimbabwe Newspapers seeks to sell its existing products intonew markets. Ways of approaching this strategy are new geographical market; newspapers would be sold inneighboring countries like South Africa and Zambia, new distribution channels and different pricing policies toattract different customers or create new market segments.
  8. 8. 13443734 Marketing Planning Process 8Competitive advantage“Competitive advantage is the process of identifying a fundamental and sustainable basis from which ocompete. Marketing strategy aims to deliver this advange in the market place”Donnelly, R, and Harrison,G.(2009,p16). According to Porter (1985), there are 3 generic strategies of competitive advantage and these are:Cost LeadershipDifferentiationFocusIn face of growing competition from Alpha Media Holdings and Associated Newspapers of Zimbabwe,Zimbabwe Newspapers will adopt the cost leadership strategy which aims to pursue an overall cost leardshipposition and achieve and maintain a low cost structure.The basic drivers of cost leadership, according to Drummond and Ensor (1999) are : • Economies of scale- the single biggest influence on cost • Linkages and relationships- being able to link activities together and form long-lasting customer relationships, inclusive of customer retention programmes • Infrastructure- factors such as location, availability of skills and government support. The organization can pursue economies of scale by acquiring digitalized printing machines that are fast and efficient and produce less spoiled papers thus reducing newsprint wasted. It can also source for cheaper newsprint and ink, minimize research and Development expenditure and keep a firm control of overheads. The organization can establish strong relationships with its customers through customer retention programmes and Customer Relationship Management. Zimbabwe Newspapers can utilize the existing infrastructure and availability of skills and utilize government support.Market Positioning StrategiesZimbabwe Newspapers can position itself as a market leader, because as a former monopoly it is extremelydominant and high profile in the newspaper industry and target marketplace. The group possess 56 % marketshare, and the flagship newspaper has a daily readership of over one million. However positioning the group asa market leader leaves it vulnerable for competitor attacks. Typical competitor attacks include marketexpansion, aggressive and offensive attacks to regain lost market or even defensive attacks, trying to protectexisting market share from a market contender.SegmentationKotler defines segmentation as the act of dividing the market into specific groups of customers/buyers whoshare common needs and who might require separate products and / or marketing mixes. Hooley, Saunders andPiercy in Marketing Strategy and Competitive Positioning define market segmentation as “identifying the mostproductive bases for dividing a market, identifying the customers in different segments and developmentsegment description”.Segmenting customers and prospective customers allows Zimbabwe Newspapers to better understand them.Segmenting allows the group to prioritize resources. A segmented audience allows for more knowledgeablecirculation, advertising, and product development decisions. AGE CHARACTERISTICS 19 - 24 Find television new and entertainment less biased and more interesting than that of the newspaper, but use the newspaper as an advertising source. 25 - 34 Use the newspaper as a source of consumer education and daily living information. 35 - 44 Place greater value on advertising content of the newspaper and less critical of its news
  9. 9. 13443734 Marketing Planning Process 9 coverage. 45 - 65 Less critical of newspaper coverage and less interested in consumer information but rather more interested in local, national and church storiesTargeting strategiesTargeting is the decision about which market segment(s) a business decides to prioritize for its sales andmarketing efforts.(Dibb, Simpkin, Pride and Ferrell, Marketing Concepts and Strategies, 4th European edition) .Targeting is the process of that involves evaluating the attractiveness of a range of potential market segmentsthat have been identified in terms of being commercially viable. (CIM COURSEBOOK Marketing Operations2001. Karen Beamish, pg 63)There are three market-coverage strategies: undifferentiated marketing, differentiated marketing andconcentrated marketing. When choosing the suitable strategy Zimbabwe Newspapers must take intoconsideration: economies of scale, customer needs, wants and expectations, competitive rivalry, brand strengthand market share and company capability. Zimbabwe Newspapers will concentrate its efforts on one market buthave different versions of each product. This is known as differentiated marketing. Currently the group has fournewspapers serving the market, H-Metro is an gossip and entertainment tabloid currently targeting the 19 – 24age group, The Herald is targeted at the 25 – 34 and 35 – 44 age groups and Kwayedza is for those that are 45 –65 years. The group can add a weekly business digest for corporate and national leaders and also a classifiedsweekly tabloid target the 35 – 44 years segment.By offering product and market variations , we hope for higher sales and a stronger position within each marketsegment and that a stronger position in several segments will strengthen consumers’ overall identification of thegroup with the product category. Differentiated marketing typically creates more total sales thanundifferentiated marketing but it also increases the costs of doing business.PositioningAccording to Kotler (2008, pg 157), “positioning is arranging for a product to occupy a clear, distinctive anddesirable place relative to competing products in the minds of trget consumers.”To enhance successful positioning of the newspapers, Zimbabwe Newspapers will maintain clarity, consistency,credibility and competitive, the keys to successful positioning as per diagram below Jobber (2010) Clarity Credibility Successful Consistency Positioning CompetivenessSource: Jobber, D. (2010)
  10. 10. 13443734 Marketing Planning Process 10Perception is a vital component of positioning strategies, the key tool to support this process is a perceptualmap. When looking at perceptual maps, there are four perceptions to be considered: • High price and high quality • High quality and low price • Low price and low quality • High price and low quality High Price Associated Newspapers Zimbabwe Newspaper s Low Quality High Quality Alpha Media Holdings Low Price Figure 3.5 Perceptual positioning mapAs shown in the diagram above, newspapers printed by Zimbabwe Newspapers are of a very high standard. Thenews content of each publication is well researched and verified, there is wide coverage of the newspapers andsubscription copies are delivered in a timely manner and in the proper condition.Zimbabwe Newspapers realizes that successful positioning is increasingly about ongoing relationships withtarget customers. Morgan & Hunt (1994) defined relationship marketing as “all marketing activities directedtowards establishing, developing and maintain successful relational exchanges”. The group seeks to build longterm relationships with clients with potential of providing a profitable relationship for the business.
  11. 11. 13443734 Marketing Planning Process 117.0 MARKETING MIX DECISIONS7.1 Products In order to achieve its objectives, Zimbabwe has identified two main products which it will need offer in the market. The products are as follows: Business Digest A weekly business digest will cater business owners, employees, national leaders and other individual or groups that are interested in the economic growth of the nation. The Business digest will be released every Monday, it will cover changes in the macro environment of business in Zimbabwe and coverage of business in every sector in the economy: mining, tourism, banking, retail, transport and insurance. Classifieds tabloid This newspaper is set to serve the whole market as people from all age groups and occupation are interested in the classifieds as it advertises a range of products and services from tuition, nursery schools, property, building materials, clothing, plumbing services and vehicles on sale.7.2 Place Zimbabwe Newspapers practices intensive distribution resulting in wide coverage of its publications. The different channels of distribution are: • Vendors. The group has employed over 250 vendors in the capital city, Harare. They collect the newspapers from the dispatch office on a dairy basis • Agents. Newspapers are delivered to retails shops, service stations and book store nation wide, in totals there are 156 agents. They sell the newspapers on commission of 10% the cover price. They offer convenience for our readers as they are located close to them. • Home deliveries. When customers subscribe to any of our newspapers they are delivered to their homes or offices in a timely manner and in the proper condition by deliverymen that are employed by Zimbabwe Newspapers. • Online. All newspapers can be viewed online.7.3 Price Zimbabwe Newspapers is an established print media house that enjoys economies of scales as a result the cover prize of its newspapers is below their competitors. By charging a price below the competitors, it will capture the competitor’s customers because the newspaper market is price sensitive.7.4 Promotion Promotion is the way a company communicates what it does and what it can offer to its customer (, Marketing and the 7Ps, pg 5). Zimbabwe Newspaper is going to use the following promotional tools to reach its target market: 1. Direct Marketing An interactive system of marketing which uses one or more advertising media to effect a measurable response at any location .Source: Institute of Direct Marketing Through direct mail and approaching companies and individual to subscribe to the newspapers 2. Public relations“A planned and sustained effort to establish an maintain goodwill and mutual understanding between anorganization and its target publics”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg124)It aims to disseminate information to the public and to create and maintain the corporate and brand imagethrough press releases and exhibitions. 3. Advertising
  12. 12. 13443734 Marketing Planning Process 12“advertising is a form of non-formal communication that is transmitted through mass media such astelevision, radio, newspapers, magazines, direct mail, public transport vehicles, outdoor displays and theinternet” ”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101) It group puts in-house adverts in its newspapers and uses billboards and also displays on public transport vehicles. 4. Sales Promotions “A range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101) sales promotion aim to increase trial and adoption of new and existing products, increase brand and product awareness and to attract customers to switch brands and products from competing organizations. This can be achieved by employing the following techniques: • Discounts for subscriptions • Buy one and get one free i.e subscribe for a month a get a whole week of free newspaper deliveries. • Point of sales displays • Customer loyalty bonus schemes • Prize draws7.5 People Over the past few years Zimbabwe Newspapers as gained bad reputation of poor customer service and high staff turnover. Considering the marketing objectives it wants to achieve it is necessary for staff to undergo Customer Care training to be held annually to ensure exceptional service delivery and high professionalism from staff members. Jobber (2010) states that “Understanding internal marketing will be key in the success of the organization. Internal marketing is training and communicating with internal staff.”7.6 Process The process of the organization is that journalists present stories that are authentic and written in an unbiased and professional manner. The printers are to print the newspaper on time and with good quality, from there the circulation department is to ensure that the newspaper get wide coverage and that it is delivered on time and in the proper condition.7.7 Physical Evidence Zimbabwe Newspapers must clearly brand its offices, with the logo well placed and visible at all branches and head office as well as on the delivery trucks. All offices are to be neat and of a formal setting. All staff to wear well branded uniforms and be smart. This plays a major role in establishing the quality perception of service and institution as sited by Donnelly, R. and Harrison, G. (2009).8.0 BUDGETS Investment budgetary will be used for the next 4 years. Top-Down budgetary approach has been adopted to give management a bigger picture of the project. Below is the proposed budget. MARCH 2012 TO MARCH 2016 BUDGET IN US DOLLARS TASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL Advertising and hiring 300,000 250,000 200,000 150,000 900,000 Public relations 80,000 70,000 60,000 50,000 260,000 Publicity 50,000 40,000 30,000 30,000 150,000 Distribution 200,000 100,000 80,000 80,000 460,000 Customer Service Expenses 90,000 60,000 50,000 50,000 250,000 Sales promotions 80,000 80,000 70,000 60,000 290,000 Marketing Contigency 150,000 120,000 100,000 100,000 470,000 TOTAL 950,000 720,000 590,000 520,000 2,780,000
  13. 13. 13443734 Marketing Planning Process 139.0 IMPLEMENTATION- SCHEDULE OF ACTIVITIESMarketing tactics have been broken down into implementable tasks for four years. Refer to appendix 410.0 EVALUATION AND CONTROLThe table below show approaches of how to measure this marketing plan Feedback Information Standards Control Actions Sales Figures Will be measured against budget Stimulate demand Circulation Number of copies per week Stimulate circulation Cost/ Profit Cost/profit ratios Reduce Expenditure Corporate image Attitudes change Improve internal and external relationsHow marketing activities will be measured and controlled. ACTIVITY CRITICAL SUCCESS FACTOR Sales Promotions Number of new subscribers Advertising Attitude ratings, awareness levels, cost levels Public Relations Goodwill, mutual understanding, awareness Pricing Demand and sales levels Distribution Number of distribution outlets and coverage of newspapers People High morale, high staff retention, innovation Process Efficiency and effectiveness Physical Evidence Staff uniforms, buildings, colour and logo and attractive website Source: BP CIM Professional Diploma . Marketing Planning December 2010, Study text pg 199
  14. 14. 13443734 Marketing Planning Process 14APPENDIX 1ORGANIZATIONAL BACKGROUNDNewspaper Publication:The Newspaper Division is made up of 3 branches namely Harare, Bulawayo and Mutare. Thecompany publishes 4 newspapersThe Herald: 1891 The Vision To be the leading Newspaper, publishing, printing and packaging company in Zimbabwe and beyond. MissionThe Sunday Mail: 1935 To Produce Newspapers, Print and Package Products andKwayedza: 1986 offer publishing services that add value to our customers, employees and shareholders. Core Values • Customer SatisfactionH-Metro: 2009 • Good corporate governance • Equal opportunity employer • Profitability • Quality products and services Newspaper Division Harare Branch: The Herald, The Sunday Mail, Kwayedza and H-MetroThe CompanyZimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer inZimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industryfor over 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Heraldand the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The SundayMail and Kwayedza. Besides being the biggest newspaper publisher in the country, Zimbabwe Newspapers is the onlypublisher and printer operating as a public company, having been floated on March 8 1927 then as theRhodesian Printing and Publishing Company Limited. It changed its name in 1980 when Zimbabwebecame independent. The 1927 launch incidentally makes it one of the oldest listings still on theZimbabwe Stock Exchange. For more than 80 years any reader has had the opportunity to buy and tradein the shares of “their newspaper”, and many have taken that opportunity, the company encouraginghundreds of smaller investors to join the big institutional investors in taking a stake in the equity. Onlyin the very worst of times has the dividend been deferred. Zimbabwe Newspapers has the newspaperoffices in Harare, Bulawayo and Mutare and commercial printing works in Harare and Bulawayo.Gweru hosts a newspaper bureau and commercial office, while journalists are stationed in Chinhoyi,Masvingo, and Beitbridge.
  15. 15. 13443734 Marketing Planning Process 15The Distribution: Harare, Mutare, The Sunday Distribution: Harare, Mutare, Bulawayo,Herald: Bulawayo, Gweru, Masvingo. Mail Gweru, Masvingo. Target Audience: Mass Market. Target Audience: Mass market Readership: Mostly 22-60 year olds. Readership: Mostly 22-60 year olds, Content Mix: News, Features, arts, High density residential areas. sports and Business. Content Mix: news, features, arts, sports.H-Metro Distribution: Harare, Mutare, Kwayedza Distribution: Harare, Mashonaland Bulawayo, Gweru, Masvingo Region Target Audience: Mass market. Target audience: Lower end Readership: Mostly 22-40 yearolds. Readership: Mostly 15-50 year olds. Content mix: News, features, arts, Content Mix: News features, arts, sports sports and business. and Business. Language: Shona Distribution: Harare, Mutare, Bulawayo, Gweru, Masvingo. Target Audience: Mass Market
  16. 16. 13443734 Marketing Planning Process 16 APPENDIX 2 MARKET AUDIT FOR ZIMBABWE NEWSPAPERS “The market audit is a systematic and periodic examination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities.” Kotler, et al (2008). A marketing audit appended below was undertaken to assess the current business environment. EXTERNAL AUDIT 2. PESTEL analysis PESTEL analysis is useful for assessing the external environmental influences on a business’ performance Issue Impact on Business Political • Increase pressure on editorial policy to • Growing political focus and pressure on the be changed to meet politician’s newspaper industry. demands. • Unstable political environment for over 11 years. • Affected the economic landscape • A Government of National Unity not agreeing in bringing about incoherent decision policy making. making and policies. • Long term strategic planning is affected due to political instability. Economic • Reluctance of consumers to spend on • Unemployment rate is estimated at 95% . newspapers. • Under-performing economy with a very low • Lack of capital to increase operational growth in the industry. capacity. • No borrowing capacity • Reduced household and business spending. Social • Reduces productivity and skills base. • The HIV/AIDS pandemic has greatly affected the • Reduced the demand of print media nation leaving many households with extended families to look after. • Increased use of internet and social networks. • The impact of intense media attention has brought a more revolution in the social aspect and creates a society which is more enlightened and which appreciates the industry. Technological • Trend shift to technology within younger • Reduced the demand of print media generation Environmental • The government and pressure groups within the • As part of promoting awareness on the country have taken campaigns to raise awareness need to create an environmentally of the need to preserve the environment. This has friendly planet Zimbabwe Newspaper seen the adaption of tree planting days, banning of has reduced waste when printing and materials that are not biodegradable. sells unsold newspapers to National waste collectors. Legal • Deregulation of the newspaper industry The newspaper industry was deregulated 2010 increased competition thus reducing Zimpapers market share.COMPETITOR ANALYSIS
  17. 17. 13443734 Marketing Planning Process 17Zimbabwe Newspapers main competitors are Alpha Media Holding and Associated Newspapers ofZimbabwe. Table 1.1 show the competitors, their products,objectives, strategies, strengths and weakness. ALPHA MEDIA HOLDINGS ASSOCIATED NEWSPAPERSPRODUCTS • Newsday (Daily) • Daily News (Daily) • Standard (Weekly) • Daily Sunday ( Weekly) • Independent (Weekly) • Financial Gazette ( Weekly)OBJECTIVES • Offer candid, well balanced • To be a market leader news at an affordable price.STRATEGIES • Penetration pricing • Mid price level to compete with • Intensive distribution mid level branded newspapers • Advertising using billboards and • Intensive distribution point of sales display. • Promoted online using pop up advertsSTRENGTHS • Well trained and motivated • Strong brand Staff. • Professional journalism • Customer loyalty work ethicsWEAKENESS • Ineffective distribution system • Poor customer serviceCOMPETITIVE ENVIRONMENTDibb, Simpkin, Pride and Ferrell in Marketing – 4th European edition page 56 define competition as thosecompanies marketing products that are similar to, can be substituted for, a given business’s products in the samegeographic area.Donnelly, R. and Harrison, G. (2009) states that an organization should understand it competitivestance and be clear what the organization means to the customer. An organization then needs to select the strategicapproach which allows it to maximize its strengths recognizing the competition. For us to have a comprehensiveunderstanding of the forces influencing industry and competitive advantage in the newspaper industry there is needfor use to use Michael Porter’s five forces.1. Competitive Intensity ( Rivalry Among Sellers)The newspaper industry was once monopolized by Zimbabwe Newspapers for over 80 years. AssociatedNewspapers of Zimbabwe entered the market in 2005, then followed by Alpha Media Holdings in 2009. With onlya few firms holding a large market share, the competitive landscapeis less competitive. All companies have the capacity to expand operations in order to met demand effectively. Highexit barriers cause firms to remain in the industry and compete even when the venture is not profitable. There is lowswitching costs, a customers can freely switch from one publication to the other. Because of the nature of theproduct which is highly perishable causes a producer to unload at the same time, the competition for customerintensifies.2. Barriers of Entry (potential new entrants)Barriers of Entry in the newspaper industry in Zimbabwe arise from several sorces. 1. The government restricts competition through the granting of monopolies as in the case of Zimbabwe newspapers which was a monopoly for over 80 years and through regulation of news. 2. Ideas and knowledge that provide competitive advantages are treated as private property, preventing competitors from using the knowledge. 3. The newspaper industry requires highly specialized technology and equipment that potential entrants are reluctant to commit to acquiring specialized assets that cannot be sold or converted into other uses if venture fails. 4. high Minimum efficient Scale (MES) deter entry of small, start-up business.3. Bargaining power of suppliersSuppliers of newsprint are powerful as they are few in Southern Africa and can exert an influence in the newspaperindustry such as selling newsprint and ink at high price to capture some of the industry’s profits.4. Bargaining power of buyersWeak because buyers are fragmented, no buyer has any particular influence on product or price.
  18. 18. 13443734 Marketing Planning Process 185. Threat of substitutesThere is high threat of substitutes in the newspaper industry as the target audience is offered a variety of newsmediums of getting informed. They can be informed of national, international and sports news through television,radio stations s well as reading other online publication for less.THE MARKET ENVIRONMENTAL AUDIT Total market size growth and trends: Zimbabwe Newspapers currently holds the largest share of the newspaper marketing in Zimbabwe. The Herald, which is the flagship newspaper of the group has an average daily circulation of 50 000 copies and a readership of over one million. According to ZAMPS results released in December 2011, The Herald has 46% market share. It is a strong brand, evidenced by the papers winning The SuperBrand award in Print media for the past 10 years. The latest edition by the is H-metro, which is a daily gossip and entertainment tabloid, is the fastest growing newspaper in the market, it has gained a market share of 25% in 2 years and an average weekly circulation of 15 000 copies. The Sunday Mail is also the top selling weekly newspaper with a market share of 40% and an average weekly circulation of 100 000 copies. Lastly there is Kwayedza a weekly newspaper written in the native language Shona, has the lowest market of 6% and an average weekly circulation of 5 000 copies. Value Chain Primary activities are directly related to production, sales, marketing, delivery and service.Activity CommentInbound logistics Newsprint and ink warehousing and stock controlOperations Printing of newspapers, allocation of newspapers and reporters writing stories.Outbound logistics Distribution the newspapers to customers through home delivery, street vendors or retailersMarketing and The group informs customers about discounts and subscriptions by putting an advert in the insales newspapers and attending business exhibitionService Zimbabwe Newspaper has worked hard to develop a service that meets customer needs Through producing different publications that meet the needs of different segments. Support activities provide purchased inputs, human resources, technology and infrastructural functions to support primary activities.Activity CommentProcurement Purchase of newsprint, ink, machine spare parts of printing machineTechnology Computerized dispatch point and warehousingdevelopment Continuous availability and reliability are essential for its website which generates 52 Million readers.Human resource Recruitment of mature staff, customer care training and awarding journalists formanagement Outstanding performance.Firm Finance, planning, quality control and senior managementInfrastructureMc Kinsey’s 7sIt is important to look at the micro environment to clearly understand the issues relating specifically toZimbabwe Nesspapers. This can be achieved by analyzing McKinsey’s 7s framework (Peter andWaterman, 1982).StrategyZimbabwe Newspapers marketing strategy to is to maintain its position a market leader an trend setterin the newspaper industry. Leadership style is autocratic as directors make all decisions, issuesinstructions which must be obeyed without questions.Shared Value
  19. 19. 13443734 Marketing Planning Process 19The group is market driven. It is passionate about satisfying the market with different products foreach segment, professional journalism, total coverage of the newspaper across the country andnewspaper to be available to its customers on time.SkillsThe group boosts of its skilled works force, which possess skills in journalism, printing, customer care,technical, marketing, auditing, accounting, secretarial, production, advertising and managerial skills.SystemsFor all departments, there are procedure manuals that are put in place to ensure the smooth flow ofprocesses which are used to meet customer needs. The Group prepares annual, long term and strategicplans. Most of the annual plan objectives are reached.StructureZimbabwe Newspapers is a functional organization, appendix 2 typically defined each of its businessfunction.StyleManagement style at Zimbabwe Newspapers is autocratic although some mangers encourage dialoguewith staff members. The decision making process is lengthy and sometimes wears employees out.StaffThe Group employees 1399 employees that qualified with requisite skills and experience, alsomotivated. MARKETING ACTIVITIES AUDIT The 7ps of marketing activities has been audited as below: Product Product variety: Zimbabwe newspapers has a variety of publications serving the market. There is The Herald, a daily newspaper, Sunday Mail is a weekly family newspaper, H-metro is a daily lifestyle and entertainment tabloid and Kwayedza a weekly tabloid written in the native language, Shona. Product coverage: Zimbabwe Newspapers uses intensive distribution, resulting in wide coverage of its publications across the country. Product quality: the quality of newsprint used and the general appearance of the newspaper is good from both the customers and stakeholders view. Product demand: the demand of Zimbabwe Newspapers products has reduced due to increasing competition and the reduced of use of print media across the country. Branding: the flagship newspaper, The Herald has been winning the SuperBrand award in print media for the past 5 years. Product life stage: As a result of technological advances, the growing use of internet and less disposable income consumers now prefer to read the newspaper online. This as reduced the demand of print media, thereby reducing circulation figures and adjusting output to match demand. Furthermore the growth of online news and other substitutes for news such as radio news, television news and mobile news as also affect the newspaper industry. Consequently we can discern that the industry is in its maturity stage. Price Competitive pricing, priced to compete with other newspapers in the market. All newspaper in Zimbabwe are pegged at $1 per copy. Place (distribution) Intensive distribution, channels include street vendors, retailers, service stations, bookshops and through home delivery after customers have subscribed the newspapers. Promotion The group advertises through billboards and placing adverts in its publication. It religiously exhibits its products at expos and the annual trade fairs. Each newspaper run a competition for an example the Sunday Mail has the Baby of the year competition Process
  20. 20. 13443734 Marketing Planning Process 20Zimbabwe Newspapers does not have a culture of service, the group’s overall process is slow for example a whenbuying a back dated issue, the client is tossed from one office to another.Physical evidenceDelivery trucks display company logo however the staff does have a uniform and the building itself is not decoratedwith company colours.SWOT analysis“ the strengths and weakness in the SWOT analysis do not list all features of a company, but only those relating tocritical success factors “Kotler et al, (2008, p 138). The table below analyses the strengths and weaknesses,opportunities and strength of Zimbabwe Newspapers. Strengths Weakness • The flagship newspaper The Herald is a • Has no customer retention policy strong brand, this is evidenced the it winning • Poor customer service delivery. superbrand in print media for the past 5 years. • The group’s newspapers are viewed by • It is seen as an innovative company this is Readers as political biased. Shown by its different publications. • Lack of operational resources such as • Favorable access to distribution networks, Up to date computer, digitalized printing resulting in wide coverage. Machines. Opportunity Threats • High literacy rate in Zimbabwe creates high • Liberation of the newspaper industry potential readers for its newspapers. resulted in stiff competition and market • Adoption of the foreign currency in Zimbabwe loss. has stabilized the cover price of our • A change of government in the upcoming publications. presidential elections will reduce some of • The opening of new supermarkets and shops the benefits the group was enjoying such in Zimbabwe creates potential distributors for as government funding and other strategic our publication. relationship it was exploiting • Technological advances such as new Oracle • Great presence of substitutes such as based systems around the world enables to work television news, radio news, internet news effectively and efficient resulting in less and mobile news which bring news to the duplication of work and meeting dead lines. consumer much faster and in a more • Government support visual style than newspapers. • The growing use of internet has gone a . step further than television in eroding the advertising income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. • The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper advertising. • Demographic change, the number of news readers has grown noticeably in the age of 18 to 24 however fewer of them pay. In the next few decades old-school readers will be replaced by technology driven news consumers and print media will
  21. 21. 13443734 Marketing Planning Process 21 decline in demand.ZIMBABWE NEWSPAPERS STAKEHOLDER NETWORK AUDITMendlows Stakeholder Analysis ModelThe following are key stakeholders of Zimbabwe Newspapers: MENDOW’s STAKEHOLDER MATIX Power H L H Government Customers Employees Suppliers Interest A B Pressure Groups SMEs Suppliers L C DRATIONALEAs technology advances, the demand of print media decreases and consumers now opt to read the newsonline which is much cheaper. The threat of substitutes such as such as television news, radio news andother online news which brings news to the customer much faster, cheaper and in a more visual style thannewspapers has also reduced the demand of Zimbabwe Newspapers publications. The growing use of directmail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising hasgrown more than 100 %, compared to just over 40% for newspaper advertising The growing use of internet hasgone a step further than television in eroding the advertising income of newspapers by providing a convenientvehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. Furthermore theliberation of the newspaper industry resulted in stiff competition and market loss. It is against this background thatZimbabwe Newspapers needs a marketing plan to address threats as a result of changes in the external environment..
  22. 22. 13443734 Marketing Planning Process 22Appendix 4SCHEDULE OF ACTIVITIESKeyPerformance Activities Time Responsibility ActionsAreaFinancial Achieve breakeven December General Aggressive marketing of all point 2011 Manager newspapers Increase profit margin 2012– 2016 General by 1.5 per quarter Manager 10% growth rate for the 2012 - 2016 General next four years ManagerAdvertising Street billboards Informing customers about Display adverts in the Ongoing Advertising sales promotions and newspapers Manager persuading them to buy our Flyers newspapers Direct mailPublic disseminate information Press releasesRelations to the public and to Ongoing Public Exhibitions create and maintain the Relations corporate and brand OfficerSales increase sales Discounts for subscriptionspromotions newspapers, increase Ongoing Group Competitions brand and product Marketing Point of sales displays awareness and to attract Director Customer loyalty bonus customers to switch schemes brands and products Prize draws from competing organizations.Internal Retention of key staff Ongoing Human Competitive remunerationStaff Resources levels and benefits Training Identify training needs and put in place a training calendar.Distribution Establish 50 Identify retail outlets in distribution outlets in Ongoing Circulation South Africa, Zambia and neighboring countries Manager Botswana to sell our newspapersCorporate Increase corporate 2012- 2013 General Brand delivery truck withimage visibility Manager logos and staff uniformsCustomer Market positioning Ongoing Marketing and Engage in social Public responsibility activities that Relations help enhance image of the GroupProcess Effective internal Ongoing Marketing and Enhancement of an internal communication systems Public communications policy.
  23. 23. 13443734 Marketing Planning Process 23 RelationsTASK THREE : EVALUATION REPORT To : Senior Management From : Marketing Manager Date : 03 February 2012 Subject : Evaluation Report Contents: 1. Introduction 2. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in the external environment. 3. The role of marketing audit as part of the marketing planning process 4. Problems of information gathering and analysis encountered in undertaking the audit 5. Explanation and justification of an appropriate competitive strategy developed 6. Issues encountered in implementing the marketing plan and operational proposals for addressing them 7. Conclusion 1. Introduction Zimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald, The Chronicle and the H-Metro and owns two Sunday newspapers operating in tandem with the dailies, The Sunday Mail and The Sunday News. The largest Provincial newspaper in Zimbabwe, The Manica Post, a weekly, anchors the Mutare branch. In recent decades Zimbabwe newspapers launched two newspapers in the two main indigenous languages, Kwayedza, a Shona weekly in Harare, and Umthunywa, an Ndebele weekly in Bulawayo. Zimbabwe Newspapers has the newspaper offices in Harare, Bulawayo and Mutare and commercial printing works in Harare and Bulawayo. Gweru hosts a newspaper bureau and commercial office, while journalists are stationed in Chinhoyi, Masvingo, and Beitbridge.
  24. 24. 13443734 Marketing Planning Process 242. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in the external environment.Dibb and Simkin (2008) defines marketing planning as a systematic process involving assessingmarketing opportunities and capabilities, determining marketing objectives, agreeing target marketand brand positioning strategies, seeking competitive advantage, creating marketing programmes,allocating resources and developing a plan for implementation and control. Doyle (1994, cited by Drummond, et al, 2008 p.247) says that planning can help companiesdeploy their resources to meet strategic ‘windows of opportunity’ which are major changes in themarket such as: new technology; new market segments, new channels of distribution, marketredefinition where the nature of demand changes; legislative changes and sudden unexpectedeconomic and political change. Marketing planning can benefit Zimbabwe Newspapers inresponding to changes in the external environment; political, economic, social, technological, legaland environmental.Marketing planning enables Zimbabwe Newspapers to assess the environment and the market inwhich it operates in, as a result of environment scanning. For an example a change in technologyand lifestyle of people which resulted in the growing use of internet and mobile phones, enable theorganization to respond by offering mobile news. It also enables the organization to understandcompetition and to be better equipped to identify where there are opportunities in the market place.Once competition is understood and having identified our strengths and weakness, our productsand services are packaged in a way that is different and more appealing to customers.A marketing plan helps to keep Zimbabwe Newspapers prepared for unexpected changes in theeconomic and political environment of Zimbabwe. For an example the formation a Government ofNational Unity in 2008. A marketing plan that caters for such political changes for our newspapersbuilds reader’s confidence by reporting news that is not baised to one political party.It provides a basis for monitoring and controlling the activities with regard to the change inexternal environment. For an example a change in the economic environment such as thedollarization of the Zimbabwean economy in 2009. Zimbabwe Newspapers was able to change thecurrency of the cover price from the Zimbabwe dollar to the United States dollar. This ensures thatall activities are carried out effectively by the company in responding to the change in theenvironment.Marketing planning provide a clear sense of direction for the marketing management andemployees in response to the change in the external environment by enabling them to actappropriately in response to change in the environment. Without a clear marketing plan, employeesmay be clear about each other’s role.Marketing Planning ensures that everyone in the objectives through proper communication bysetting clear objectives and targets in response to an environmental change, everyone in thecompany works towards the same goals. Without proper marketing planning employees will not beclear about the company’s goals and targets. More over effective Marketing planning ensuresproper communication to make certain that every employee is clear about the plan. All these arepositive factors are considered beneficial in responding to a change in the environment.
  25. 25. 13443734 Marketing Planning Process 253. Role of market audit as part of the marketing planning processKotler, et al. 2008 defines the marketing audit as a systematic and periodic examination of acompany’s environment, objectives, strategies and activities to determine problem areas andopportunities. Mc Donald (2007) recommends conducting a marketing audit once a year at anappropriate point in the planning cycle. Mc Donald states that an audit is a way of definingproblems, and hopefully preventing them from happening.The role of marketing audit as part of the marketing planning process is that the audit providesthe marketers with a in depth view of the marketing activities that are going on in thenewspaper industry. It brings out a complete picture of the entire operations in concern. Whilerevealing the various draws backs the audit process also leads to efficiency. This process canalso be used to lay down an improved marketing plan.Marketing audit assists marketing executives, top management and investors to ensure thatthey are proposing suitable growth strategies in the marketing plan. Marketing audit is a carefulexamination and evaluation of marketing practices and results. It offers a baseline forperformance measurements and framework for effective planning to maximize positiveexternal perception and demand generation.An audit helps the company determine the value of a sale and a sales lead. Customer’s needsand wants are moving targets, and marketing programs require testing and retesting to find themost profitable formula. A marketing audit is the way to achieve success by providing aninterim report card to help the Zimbabwe Newspapers and staff tap into inherent resource.The marketing audit involves diagnostic steps covering the organization’s marketingenvironment, internal marketing system, and specific marketing activities. The diagnosisprovides an important insight into the improvement of marketing planning thereby improvingmarketing efficiency and effectiveness.4. Problems of information gathering and analysis encountered in undertaking marketing auditWhen conducting a marketing audit information gathered can be primary or secondary data oreven both. The marketing audit is normally conducted by an inside or outside party who hassufficient independence from the marketing department to attain top management’s confidenceand the needed objectivity.However there are problem that are encountered when gathering information. In the case ofsecondary data information gathered may be outdated or the kind of information sort after maynot be accessible to the company or may not be available. Accuracy of data collected fromvarious sources such as internet, market reports, via researches is not known.Since there is vast information available, filtering and obtaining relevant data is a challenge.The information collectors should be aware of this and collect only the relevant data forZimbabwe Newspapers. Information gathered may not meet the requirements of the problem,to avoid this problem the units of measurements should be the same and the concepts usedmust be same and currency of the data should not be outdated.
  26. 26. 13443734 Marketing Planning Process 26 Another problem of information gathering is that sometime obtaining certain type of data may be very costly for the organization and there is limited technology to gather information efficiently. Problems of information analysis are as follows. • The data may be presented in different forms which make it difficult to analyze • Zimbabwe Newspapers may not have employees with necessary expertise required to analyze the collect data. • Sufficient statistical analysis packages may not be available in the organization. • Data may lack consistency since it is from different sources it will not arrive at the same result or conclusion. • The cost of analyzing the data may be too high in some instances, especially when the company hire an outside party to analyze the data • Different sources of data define and classify terms differently. 5. Explanation and justification of an appropriate competitive strategy developedAfter undertaking a competitor analysis, a competitor profile is developed, identifying likelycompetitive attacks and understanding various forces that define the shape of newspaper market,through the analysis of Porter’s Five Forces. Michel Porter has defined a Competitive AdvantageGrid based upon three generic strategies, that enables Zimbabwe Newspapers to closely identifythe various options open to them. Typically they would include: Differentiation, Focus and CostLeadership.The diagram below outlines the generic strategies. Uniqueness perceived Low cost position Differentiation Overall cost leadership Focused Differentiation Focused Cost leadership Michael Porter suggested competitive strategy is primarily about creating and sustaining a profitable position in the marketplace. Zimbabwe Newspapers need to identify the competitive scope available to it, considering the approach to targeting and segmenting the market, ensuring that the organization is operating in a closely-defined market.
  27. 27. 13443734 Marketing Planning Process 27 Zimbabwe newspapers must adopt Cost Leadership. The organization will be looking to achieve economies of scale, cost reduction policies, zero defects, minimum expenditure on research and development and very closely defined cost-effective marketing strategies. Drivers of cost leadership identified by Michael Porter are: • Economies of scale – volume can drive efficiency and enhance purchasing leverage • Linkages and relationships- just-in-time manufacturing systems can reduce stockholding costs and enhance product quality. • Forge relationships with other industry specialists and partners to share development and distribution costs. • Infrastructure, location, availability of skills and government support can also all affect the cost base. Segmentation Kotler defines segmentation as The act of dividing the marketing into specific groups of consumers/buyers who share common needs and who might require separate products and /or marketing mixes. Hooley, Saunders and Piercy in Marketing Strategy and Competitive Positioning defines Market Segmentation as Identifying the most productive bases for dividing a marketing, identifying the customers in different segments and development segment description. Segmentation is mainly done based on the income/occupation/ social status of customers. The following segments can be identified:Social grades Social status Characteristics of occupationA Upper middle class High managerial/ professionalB Middle class Intermediate managerial/ administrative professionalC1 Lower middle class Supervisory/clerical/junior managerial/administrative/professionalC2 Skilled working class Skilled manual labourD Working class Semi-skilled and unskilled manual labourE Lowest level of Widows, casual workers, state pensioners subsitence Segmenting is also carried out on the basis of customer behavior or style. The following segments are identified under that classification; • Business people – These are people that read the newspapers on a daily basis and are mostly interest in the business news and global markets. • Politicians – people that are mainly interested in political news and current affairs of the nation. • Students – these are mainly teenagers and university student that read the Saturday Herald because it has an educational supplement. • Subscribers – these people are frequent readers of the newspapers and they pay in advance • Government institutes and hospitals – these include ministries and civil servants, school that read the newspaper daily
  28. 28. 13443734 Marketing Planning Process 28Market segmentation is essential for the successful implementation of the competitive strategybecause it can lengthen the product life cycle increased sales and profits, achieve strategicmarketing planning, manage effective resource allocation and capture some of competitors’ shareof the market.TargetingDibb, Simpkin, Pride and Ferrell in Marketing Concepts and Strategies, 4th European editiondefine targeting as The decision about which market segment(s)a business decides to prioritizefor its sales and marketing efforts.When selecting the appropriate target market strategy Zimbabwe Newspapers must take intoconsideration the following: • Company capability • Economies of scale – production and marketing • Customer needs, wants and expectations • Product market – size and structure • Competitive rivalry • Brand strength and market shareThrough market research Zimbabwe Newspapers must use target marketing , having a productthat meet the need of each segment within the market with a specific product. ZimbabweNewspapers flagship newspaper The Herald seeks to the market by offering a variety of newscontent. • The Sport news – for the sportsmen, football clubs, sponsors and those generally interested in sports • Lifestyle – for fashion followers, holiday makers, shoppers and supermodels, housewifes • Entertainment – musicians , music promoters, sponsors, night club owners and the people interested in leisure • Political and Current affairs - politicians, government officials and the general population at large • Business – working class, business owners, government officials and university studies • The Classified – job seekers, property moguls, and anyone seeking to sell or buy anything. • Cool lifestyle – for teenagersPositioningKotler defines positioning as the act of designing an offer so that it occupies a distinct andvalued place in the minds of target customers. Positioning refers to how Zimbabwe Newspaperspresent its newspapers to the marketplace.Ries and Trout (1998) suggests that there are three positioning alternatives available: • Distintive attributes- identify the distinctive attributes of the product and service as a source of credible positioning. • Fill the gaps in unfilled positions- where there is a positional gap in the perceptional map, this may present a business opportunity for exploit.
  29. 29. 13443734 Marketing Planning Process 29 • Repositioning- changes in consumer behaviour may mean that the product life cycle could be maturing or going into decline, therefore the necessity to reposition the products to attract a different market might be required.6. Issues encountered when implementing the marketing plan over 4 years and operational proposals for resolving them.Many organizations encounter issues when implementing their marketing plans. Nigel Pearcysuggests that: the real strategic problem in marketing is not strategy; it is the implementationand change. When implementing the marketing plan to increase sales and readership of itspublications over 4 years, Zimbabwe Newspapers will face barriers as the organization is notmarketing oriented, the existing culture may not be amenable to the marketing plans. Toovercome this problem the organization will need to be marketing oriented, the marketingconcept in the words of Kotler et al. (1996): Holds that achieving organizational goalsdepends on the determining the needs and wants of target marketd and delivering the desiredsatisfactions more effectively and more efficiently than competitors do. In order to achieve thisZimbabwe Newspapers must create customer focus throughout the organization, buildcustomer relationships and loyalty, target customer precisely and define the nature of theorganizations key abilities.Zimbabwe Newspapers is subject to internal politics and line managers fight each other’sproposals in order to gain resources and status. The internal information that the marketingplanning process depends on is controlled by heads of departments which are reluctant tocooperate. To eradicate this problem strong and committed leadership must be cultivated,leaders must demonstrate commitment at the highest level to the proposed strategy and plans.They need to be eefective communicators, motivators and facilitators. If the purpose and the nature of marketing concept is not introduced with care bycommunicating and providing training it will not gain management support. Hostility, lack ofskill or lack of information among line managers marketing planning will fail. According toDibb and Simkin (2000), the major causes of inadequate planning stem from a combination ofmanagerial, cultural and organizational issues, outline in the table below. Dibb and Simkin observed barriers of implementation of marketing planning • Poor grasp of the marketing concept • Little or no market analyses undertaken • Strategy determined in isolation of analyses or formulation of tactical programmes • Blinkered view of the external environment • Poor and inadequate marketing intelligence • Little internal sharing of marketing intelligence • Inadequate understanding and support from senior management • Poor internal communications in marketing between functions • Planning activity fades out
  30. 30. 13443734 Marketing Planning Process 30 • Planning and personal overtaken by events • Lack of confidence or conviction • Little opportunity for lateral thinking Source : Dibb,S and Simkin, L. (2000) Internal Marketing plays a pivotal role in ensuring that the above barriers of implementation of marketing planning observed by Dibb and Simkin. Internal marketing is defined by Dibb, Simkin, Pribe and Ferrell in Marketing Concepts and Strategies as the application of marketing internally within the company, with programmes of communication and guidance targeted at internal audiences to develop responsiveness and a unified sense of purpose among employees. Nigel Piercy in His book Market Led Strategic Change, suggests that: Marketplace success is frequently largely dependent on employees who are far removed from the excitement of creating marketing strategies. In order for Zimbabwe Newspapers to achieved internal synergy and employee co-operation it must create awareness of corporate aims, objectives and overall mission, determine the expectations of the internal customer and communicate to internal customers. Most business rarely gives much budget concern to marketing activities and this culminates to inefficiencies on the part of undertaking marketing activities. Zimbabwe Newspaper has downsized and strives for increased efficiencies, it is resource-starved. It lack financial resources stated in the budget. A comprehensive budget for Zimbabwe Newspapers is required to take into account all relevant requisite within the marketing plan. This mainly includes investing in staff training, undertaking the marketing audit and promotional activities. Employees lack of knowledge and skills in sales and distribution may affect implementation of the plan. Continuous training of staff in customer service delivery and distribution of newspapers knowledge will overcome this barrier. When a marketing plan has too much data, it mainly leads to incoherence and have a demotivating effect on employees. Effective summaries and simple points will lead to better understanding of the required marketing plan. Lack of consistency of the marketing planning review may be a potential barrier to effective implementation of the plan. Regular and more appropriate scheduled reviews of the marketing plan should be undertaken with corrective action taken were necessary.(2 974 words)
  31. 31. 13443734 Marketing Planning Process 31ReferencesCIM COURSE BOOK, Marketing operations,2001, Karen BeamishCIM Professional Diploma in Marketing Study Text , December 2010Marketing Concepts and Strategies, Dibb, Simkin, Pribe and FerrellMarket Led Strategic Change, Nigel PiercyMarketing Concepts and Strategies, 4th European edition, Dibb, Simpkin, Pride and Ferrell(, Marketing and the 7Ps, pg 5).Marketing Strategy and Competitive Positioning,Dibb, Simpkin, Pride and Ferrell
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