The Marketing planning process & how to set marketing plan

objectives
1. Introduction:
- Definition
Marketing planning is the structured process that leads to a
coordinated set of
marketing decisions and actions, for a specific organisation and over a
specific
period of time
Structured: in order to be accurate and achievable, to be control
it
Coordination: integration marketing communications: that all the
activities of marketing palling fit together, designed together
Specific period of time: short term-medium- or long term plans
- Marketing planning is based on:
internal/external situation
Go from abstract to practical level
marketing direction, objectives, strategies, programmes.
customer service and internal marketing support
enable to communicate internally, everyone needs to know
and by in on it, anker your plan with employees on all levels
Marketing planning is future oriented, so some level of
calculated guesswork is needed (forecasting)
clear forecast of what we believe that takes place in the
future
Marketing planning can be done on the strategic or operational
levels.
Not only high level but also medium and low level
- Benefits:
Examination of opportunities and threats.
= SWOT analysis
Framework for evaluating possibilities/priorities.
Which one or the most crucial to succeed?
Focus on customers in context of competition/environment
Needs, objectives of customers and their relation with
competitors
Rationale for allocating resources to achieve results
Motivate why were going to spend money how much
time/money per activity
Specific yet flexible guide for future
Clearly specifies different activities

flexibility: uncertain future (= benefit: the fact that it forces

us to do this)
- Trends that affect marketing plans:
Dynamic business environment
International, things are happening at an increased pace
Interest in brand reputation:
increasing competition, increasing benefit, do marketing research
to see how people perceive them
enables us to understand in a greater extent what we mean to
our customers/ how to communicate with our customers
Intense competition:
market is becoming more and more integrated
need to stand out in a positive way
Social media interactions
= brand building
Increased focus on price
Increased competition and decrease in income ( economic crisis
of last years)
pricing strategies are becoming crucial
Social responsibility
= part of/ belong to community
do it because its expected from them: not good/evil but neutral
its cynical but forces us to do the right thing
2. The marketing planning process
= step by step process
7 stage process
cyclical process: a company is always at some point of the marketing
planning process

1) Analyze the current situation

What is the identity of the organization
values, mission

A. Internal audit
Mission statement.
In same line, otherwise confuse customer
Ex: bodyshop: ethicly focused mission statement: fairness,
organical
Resources.
Offerings.
Capabilities.
Compatible offerings : It needs to connect with our other offerings
/ products
Ex bodyshop cant sell a car even if its ethically made
Business relationships.
Previous results.
B. External audit

Political
Economic: affects resources of company, demand
Culture: customize products to people
Technological : high- slow changing?
Constantly monitoring technological development
ex phones
Legal aspects: strict marketing legislation ex advertising, or
restrictions on what to sell (tabacco, alcohol..), advertise below
age of 18?
Ecological: sustainability? Affecting the environment
Increasing importance
C. competition
D. Sustainable
Environmental and economical (cant only make losses)
E. Commitments to publics
provide values for employees, societies, to business partners
F. Marketing transparency
behave ethically
2) Research and analyse markets and customers
- Research customer needs (= constantly monitor customers needs),
perceptions (of our and competitive brands), behavior (trends,
problems)
- Understand the market and any changes.
= constantly monitor market share, why is it changing? Why are they
going to competitors?
- Plan for relationship marketing.
= developing relationships with customers, improving on loyalty ladder
(convince other people to buy your products)
Only of you truly understand them: otherwise how can you talk to
them and make them like you?
Transactional marketing (need for new customers all the time)is
much more expensive than relational marketing
3)
-

Determine segmentation, targeting and positioning:

Group customers based on characteristics/behaviours.
Select target segments.
Determine segment coverage.
Create competitively distinctive positioning.

4) Set marketing plan direction and objectives

- Guided by mission statement, higherlevel goals.
= what you want to achieve
SMART criteria

Goals are longer-term targets.

Objectives are shorter-term targets.
Plan for financial, marketing, societal objectives
All important, can have combination
Societal objectives: contribute to long term financial/ marketing
objectives

Issues to consider when setting objectives:

-

Time frame
Targets such as:
Achieving market share growth or maintenance.
Launching new product range.
Principles of SMART: Specific, Measurable, Achievable,
Realistic, Timely.
Trade-offs to consider:
Short-term profit vs. long-term growth.
Penetrating existing markets vs. developing new ones.
Profit vs. non-profit goals

5) Plan strategies, programs and support:

Binding the activities, need to fit together to achieve set marketing
objective
- Product and branding.
- Price.
Price penetration strategy? Connection with retailers?
- Channel and logistics (place).
- Marketing communication and influence (promotion).
- Customer service and internal marketing
6) Plan to measure progress and performance
= how are we doing as achieving our goals?
- Select measures to track progress and performance.
Specific points in time to benchmark
ex in 3 months we want 8% of target sales number, after 6 months
16%..
- Determine budgets, forecasts, schedules, metrics
Budget: Look at resources and specify each cost-barring item
forcast: look at past numbers to forecast future
schedules: detailed time-oriented schedules whan things are going
together because everything needs to fit together (integrated)
ex: Gantt chart
Metrics: specific values, factors you measure your companies progress
against
Ex what bear brands are from Belgium? Or do you remember the brand

7)
-

Implement, control and evaluate the plan

Start with objectives. (metrics/benchmarks)
Set standards for progress.
Measure actual performance.
Analyse results.
Take corrective action if needed.

3. Corrective action - contingency planning:

=> need plans to deal with such situations

4. Three levels of planning:
- Organisational strategy:
purpose, long-range goals.
- Business strategy:
unit scope, markets, resources, how to compete.
- Marketing strategy:
marketing mix plus service, internal marketing
Marketing plan direction:

Marketing plans need to be realistic, achievable

1) Growth strategies: The Ansoff Matrix

2) Maintenance: achieving status quo in the interest of future plans

- Sustain current revenues or market share;
- Wring short-term profits from existing products, markets;
- Prepare for future growth
3) retrenchment: plan for failure
- Exit markets;
- Drop products; drop dogs in favor of stars
- Downsize all marketing; cut budget
not a good strategy: most of the time goes bad quickly
- Limit distribution; centralize and focus on customers we can satisfy
- Close down in orderly fashion.
Types of marketing plan objectives

Societal objectives to achieve positive brand awareness; equity with

financial implications (increasing profits in the long run)
A. Financial objectives
= targets for achieving financial results through marketing
strategies and
programs.
e.g. To achieve an average annual profit margin of 20 percent
across all products within the next three years
B. Marketing objectives
= targets for achievements in marketing relationships and
activities.
e.g. To increase brand awareness by 25% in the Brussels area
within
the next three year time frame.
C. Societal objectives
= targets for accomplishing results in areas related to social
responsibility.
Ex NIKE: decrease carbon footprint

5. How to set effective objectives:

Specific: detailed and unambiguous

Measurable: determine if we set out what to do
ex: to increase profit, yes but how much? 20%
Achievable: not irrational, possible
Time-bound: specify end point/time limit
ex within 3 years
Relevant: related to what youre already doing/activities

Example: