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Content

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1.

Introduction

2.

1.1 Review changing perspectives in marketing planning

3.

1.2 Evaluate an organization's capability for planning its future market

activities
4.

1.3 Examine techniques for organizational auditing and for analyzing

external factors that affect marketing planning

5.

1.4 Carry out organizational auditing and analysis of external factors that

affect marketing planning in a given situation

6.

2.1 Assess the main barriers to marketing planning

7.

2.2 Examine how organizations may overcome barriers to marketing planning

13

8.

3.1 Write a marketing plan for a product or service

18

9.

3.2 Explain why marketing planning is essential in the strategic planning process 19
for an organization

10.

3.3 Examine techniques for new product development

20

11.

3.4 Justify recommendations for pricing, distribution and communication mix

21

12.

3.5 Explain how factors affecting the effective implementation of the marketing

22

plan have been taken into account

13.

4.1 Explain how ethical issues influence marketing planning

23

14.

4.2 Analyze examples of how organizations respond to ethical issues

25

15.

4.3 Analyze examples of consumer ethics and the effect it has on marketing

27

Introduction
Executive Summary
AUNG MYANMAR electrical and machinery Group Co. Ltd is a well-organized enterprise and
it has gained a firm foothold in the electrical and machinery industry. It is based in Yangon and it
has branches in Mandalay, Naypyitaw, and Taungyi. Although the directors centered on product
and production excellence backed by technical sales support, they become aware that there is
market-led strategic change in their industry. They would like to formulate and implement a
marketing plan basing in their organization's capacities and considering the main barriers to their
activities. Therefore they want to assess the capabilities of their company as well as the external
environments that affect marketing decisions. They have already decided to overcome the major
barriers whatever they are. Some company departments are believing that a stronger marketing
function threatens their power in the organization. However, during the previous five years, from
being a relatively successful company, marketing share for AUNG MYANMAR products
dropped. The market became much more competitive with new entrants who have introduced
new and updated products to the market. Board of directors usually holds annual meetings to
discuss what have been happenings to the market for their products. The departmental heads
present relevant background data on sales, costs, the competitors, microenvironments, and
ethical issues in marketing.

LO1: Be able to compile marketing adults

1.1 Review changing perspectives in marketing planning
Marketing planning is an important aspect for the overall marketing strategy of an organization
and necessity of the marketing planning can be considered looking into the increasing
competitive environment wherein an organization need to maintain loyal customer base. In
context to service marketing traditional marketing mix elements i.e. product, price, place and
promotion are complemented by three more elements i.e. people, processes and physical
evidence. With changing demand and need for consumers marketing planning process are also
undergoing considerable shift in the consumer demand is driven through the technological
developments and change in lifestyle for the consumers.
One of the recent examples for change in marketing planning process is due to emergence of
social media tools as with increasing social media promotional tools such as Facebook and
Twitter marketers are adopting these tools for promotion of their products & services.
Availability of information for the consumers is playing an important role wherein consumers are
searching and analyzing information so as to make final decision for the purchase of particular
product or service. Some of the key trends in marketing planning process include re-engineering,
outsourcing, e-commerce, benchmarking, alliance, partner-supplier, market centered and global
& local scenario etc.
The production concept is one of the oldest concepts in business. It holds that consumers prefer
products that are widely available and inexpensive. These managers concentrated on achieving
high production on efficiency, low cost and mass distribution. In such a business other functions
such as sales, finance and personnel were secondary to the main function of the business, which
was to produce. The best know example was the Model T factory of Henry ford in the 1920s in
the USA. At that time, potential demand out stripped supply as at was prior to the wide scale
introduction of mass production techniques.
Then the product concept emerged. It proposes that consumers favor products offering the most
in quality, performance, or innovative features. Under this concept product quality and
improvement are the most important. However manager might commit the ' better- mousetrap'
fallacy, believing that a better product will by itself lead people to beat a path to their door. A
new or improved product will not necessarily be successful unless it is distributed advertised,
and sold properly.

With the large-scale introduction of mass techniques in the 1930s, particularly in the USA and
Western Europe, many firms adopted the selling concept. The Focus of company efforts switches
to the sales function. The main issue here is not how to produce but, having products, how to
ensure that this production is sold. The selling concept holds that consumers and businesses, if
left alone, won't buy enough of the firm's products. The firms need to undertake a large-scale
selling and promotion efforts. The aim often is to sell what the company makes rather than
making what the market wants. If focuses a creating sales transactions rather than on building
long-term customer relationship. The result was that 'hard sell' techniques were developed.
The marketing concepts emerged in the mid 1950s. The job is to find not the right cutomers for
your customers for your products, but the right product for your customer. The marketing
concept is a customer-centered sense and respond philosophy. The selling concept is a product
centered ' make and sell ' philosophy. The following figure contrasts the selling concept and the
marketing concept.

Selling concept

Starting Point

Focus

Means

Ends

Factory

Product

Selling

and Profit

promotion
Marketing
concept

Target market

through

increasing efforts

Consumer needs Integrated

Profit

and wants

satisfaction

marketing

through
of

consumers needs

Figure 1.1
Harvard's Thevdore Levitt drew a Perceptive contrast between the selling and marketing
concepts:
"Selling Focuses on the needs of the seller; marketing on the need of the buyer. Selling is
preoccupied with seller's need to convert his product into cash; marketing with the idea of
satisfying the need of customer by means of the product and the whole cluster of thongs

associated with created with, delivering and finally consuming it; thus the marketing concept
holds that the key to successful and profitable business rests with identifying the needs and want
of customers, and providing products and services to satisfy these needs and wants. On the
surface such a concept does not appear to be a far reaching and fundamentally different
philosophy of business, but in fact a marketing concept requires a revolution in how a company
thinks about, and practices, its business activates as compared with production or sales
orientation. Under production and sales orientation, marketing planning did not play important
role.
Today, the "mass marketing" is actually splintering into numerous micro-markets, each with its
own wants, perceptions, preferences, and buying criteria. The smart marketer therefore must
design the marketing plan for well defined target markets. Thus, perspectives in marketing
planning is chaining.

1.2 Evaluate an organization's capability for planning its future market

activities
Whereas marketing planning addresses the what and why of marketing activities, implementation
addresses the who, and how. In theory, the marketing planning process consists of analyzing

marketing opportunities, selecting target markets, designing marketing strategy, developing

marketing programs and managing the marketing efforts. The first task facing AUNG
MYANMAR is to identify its potential long run opportunities and its must have that capability.
AUNG MYANMAR can design its products with better features. It can use its core competency
to design a line of farm implements. AUNG MYANMAR also needs a reliable marketing
information system to closely monitor its marketing environment so it can continually assess
market potential and forecast demand. It also needs a dependable marketing research system.
Once AUNG MYANMAR has analyzed its market opportunities it is ready to select target
market.
Traditionally, companies owned and controlled most of the resources that entered their business
labor power, materials, machine information, and energy but many today out source less critical
resources if they can obtain better quantity or lower cost. The key then is to own and nature the
resources and competences that make up the essence of the business. A care competency has
three characteristics:
1. It is a source of competitive advantage and makes a significant contribution to perceived
customers benefits.
2. It has application in a wide variety of market.
3. It is difficult for competitors to imitate.
In practice, however, in the highly completive market places, marketing planning is more fluid
and is continually refreshed. Companies must always be capable of moving forward with
marketing programs innovating products and services, staying in touch with customer needs,
seeking new advantages, rather than relying on post strengths. This is especially true of
incorporating the internet into marketing plans.

1.3 Examine technique for organizational auditing and for analyzing external
factors that affect marketing planning
It is essential to understanding customers as it is a keystone of a marketing planning; it comprises
with auditing and analyzing the internal (organizational) and external (market) environments of

the organization. This involves accumulating appropriate factor at first and then analyzing it. The
types of relevant factors divided as internal and external which has shown as below.
Internal
Company mission and objectives
Existing customers - which includes the customer's satisfactions, dissatisfactions, expectations
and relationships.
Company resources - management structure, finance and information technology.
The relationships between staff, partner and capital funders.
External
PEST which is a short for of Political, Economic, Social and Technological considerations. These
factors may impact on organization's activities.
SWOT which is a short for Strengths, Weaknesses, Opportunities and Threats. It helps to assess
company culture and future situation and as well as assess external environment.
Prospective customers, it requires to understand what are their needs, motivations, behavior,
purchasing power and locations.
Market, which includes the awareness of market size, growth, price, distributions, promotion,
and product development.

1.4 Carry out organizational auditing and analysis of external factors that
affect marketing planning in a given situation
Generally, SWOT analysis is common use to carry out an organizational auditing and analysis of
external factors. SWOT represents Strengths, Weaknesses, Opportunities and Threats; The aims

of SWOT analysis is mainly take advantage of strengths and opportunities the market meanwhile
minimize the weaknesses and eliminate the threats.
Strengths
Market share
Skilled and expertise
Business location
Quality processes and procedures
Innovative and new product or service.
Brand loyalty
Strong financial background
Weaknesses
Business location
Lack of skilled and expertise
Low market share
Poor quality products or services
Poor financial background
Bad reputation
Low brand loyalty
Poor distribution network

Opportunities
Competitor weakness
Market growth

Innovation and creative idea

Strong alliances
International market
Ineffective competitors
Threats
New competitor
Taxation
Legal limitations
A competitor has a new, innovative product or service.

AUNG MYANMAR's SWOT analysis has shown as below:

Strengths
excellent customer awareness and an image of reliability and quality
Can respond quickly and effectively to customer needs
Well-trained and motivated employees
sales force is technically well qualified
Weaknesses
Prices are approximately 10 percent above the industry average
over spent on advertising than some of the main competitors
some sales representatives are not well versed in personal selling skills

Opportunities
Marketing information system has been well established an marketing research is occasionally
conducted

some major competitors are having difficulty keeping their customers because of quality and
delivery problems
government is making efforts to solve the electrical problems of people urgently and to
mechanize farming
Threats
AUNG MYANMAR's large customer is threatening to switch to another supplier because of the
company's higher average prices
Being not keep pace with the rapid technological change in the industry
Recent and forecast trends in the exchange rate hinder the semi-finished imports of the
company.

LO 3 Be able to formulate a marketing plan for a product or service

3.1 Write a marketing plan for a product or service

Marketing plan is an essential document as it includes a company market evaluation, goals,
direction and marketing result. Macdonald (1995) introduces a four steps approach for the
marketing plan which includes:
Situational Review - Marketing Audit: PEST or SWOT analysis.
The marketing audit is a process to identify those existing external and internal factor which will
influences on marketing planning of the company. The process can be conduct with the SWOT
analysis for the internal and external environment or PEST analysis which focuses solely on
external environment. In fact, marketing audit helps to clarifies opportunities and threats and
allows the stakeholders to make alternations to the marketing plan if needed. I have chosen
SWOT as a marketing audit tools for AUNG MYANMAR.
Strategy Formulation - Marketing Objectives and Strategies.
Marketing objectives is stated what the company intends to be or to be achieve in the future.
Marketing strategy is a process that allows company to concentrate its limited resources to
increase sales and achieve and build up sustainable competitive advantage. There are several
strategies can be use, for example "ansoff matrix", "bcg matrix", "plc matrix" and "4ps". In this
case, I have chosen 4ps for AUNG MYANMAR.
Monitoring and Control - Budget and implementation.
In the process of marketing planning, it shall be aware that marketing control is to monitoring the
whole process as they proceed with and make an alteration if necessary.
Control includes measurement, monitoring and evaluation. In fact, resources are costly and
limited therefore it is essential for a marketer to control a budget and always check with the
implementation. The marketer shall always check with the implication by comparing the actual
progress and the standard progress.

3.2 Explain why marketing planning is essential in the strategic planning

process for an organization
Marketing plan provide information that enables stakeholders to measure the progress and
highlighted the most appropriate marketing strategies. An effective marketing plan helps to
increase product sales and enhance company profit margins. There are several advantages of
market plan, it contains:
Focus on your target market
Identifies consumers' needs and wants
Determines product demand
Identifies potential customers
Identifies competitor and analyze competitive advantage
A measurement for generating the daily cash operational activities and how to make profit.
Manifestly, a good marketing plan will also benefit an organization with the analysis of how to
achieve the company objectives and capability to create a new opportunities for organization.
Therefore, it is essential in the strategic planning process for an organization.

3.3 Examine techniques for new product development

New product development (NPD) is a process which designed to develop, test and consider the
viability of the new product in the market. It helps to distinguish the growth or survival of the
organization when a new product launch. There are several steps in the NDP process.
Idea generation
It can be obtained from market research by using SWOT analysis.
Idea screening
In this process, unsuitable or unattractive ideas would be abandoning.
Concept development and testing
After the early stage of concept development, it requires to launch a concept testing by asking
the prospective customers' feedback.
Market strategy development
It requires identifying which type of marketing strategy should be use.
Product development
Converts a product idea into a physical form.
Test marketing
Placing the product on sale and observing its actual performance.
Commercialization
Implementing a marketing plan and full production

3.4 Justify recommendations for pricing policy, distribution and

communication mix
Distribution mix (Place) represents the way of distribution, the methods of transportation, and
also the on-hand inventory level and lastly outlets selection. It is proposed to ensure the
customers will able to find the products when they need it and usually customer will be
expecting good services on the product sales or after the product sales.
Furthermore, it is importance to consider the following options of the product distribution:
Retailing
Internet sales - website
Mail order - throughout brochure
Wholesaler
Nevertheless, the marketer should still consider the product characteristics, company size,
competitors and nature of distributor before decide the final distribution way.
After selected a distribution way for the product, it should be concentrate with the product price.
Price policy would directly affects the product sales, how much profit or loss company gain, to
whom it is sold and what types of services should be attach. There are no fixed rules for setting
the right place for a new product however it should always take into account the product design
cost, the distribution, the promotional and the labor cost. The only recommendation in pricing
strategy is to be sensitive, sensitive with the production cost, marketing cost.
Once a product decided to launch in the market, it requires promotional activities to attract
buyers, to gain awareness and spreading out the product information. The communication mix
includes advertising, personal selling, public relations, online promotion, sales promotion and
also direct marketing. Nonetheless, for each type of promotional tool, it comes with own
strengths and weakness and bring different along different effect to the product. Therefore, it is
essential for the marketer to analyze which type of promotional tool would be most benefit to the
product.

3.5 Explain how factors affecting the effective implementation of the

marketing plan have been taken into account
In order to maximize profits and minimize risks in a business, the only reliable way is to tailor a
suitable marketing plan with the particular needs meanwhile using available marketing tools and
information to enhance the flexibility. However, it is remarkable that there are few factors should
be concern with as there would affect the effective implementation of the marketing plan or even
impair the whole picture. The factors would affect the progress have listed down below:
Management not supportive: With the assumption of the director of the company do not agree
with the element of the marketing plan and decided not to support it, manifestly, the marketing
plan would not be suffice as a pathway to the success.
Budget limitation (Financially) - Without sufficient financial support, the marketing team might
not able to complete an appropriate market research.
Illegality: If a marketing plan is against with the law or regulation, it might lead a legal action to
the organization.
As the factors mentioned above will affect the effective implementation of the marketing plan, it
may concluded as it is essential to taken factors would impair the marketing plan into account in
order to draft out a good marketing plan.

LO 4: Understand ethical issues in marketing

4.1 Explain how ethical issues influence marketing planning
Ethical issues in marketing
Marketing ethics deals with the moral principles behind the operation and regulation of
marketing. Possible fundamental framework of analysis for marketing audit are:
1) Value-oriented framework
2) Stakeholder-orientated framework
3) Process-orientated framework
Though the ethical dilemmas faced by certain companies may be specific to their industry or
company, other types of ethical issues are common to all types of companies. Handling ethical
decisions with wisdom is especially important for small business given the potentially
devastating effects these companies may face if such issues aren't handled correctly.
There are many kinds of ethical issues within organization.
1.
2.
3.
4.

Health and Safety

Technology
Transparency
Fair Working Condition

Ethics carrying principles of right conduct that shape the decisions people or organizations make.
Practicing ethics in marketing has deliberately addresses the standards of fairness, moral
principles and wrongs in the organization. The main purpose of marketing ethics is to stop
anyone to do any deceive or take advantage from unethical activities.
Once our economic system has successfully fulfilled consumer's wants and needs, there would be
a concern on organizations adhering to ethical values rather than simply providing products or
services. The reason of being so, that is due to firstly, when an organization has behaves
ethically, manifestly its customers would develop positive attitudes about its products, services
and the company itself. With unethical issues in a business, it may lead to bad publicity and
reputation, customers' dissatisfaction, lost the business opportunity and consumers' trust and also
a legal action between consumer and organization.

In short, unethical marketing practices would directly influence a good marketing process and
affect marketing plan. Hence, most of organization has trained to be sensitive with customer's
needs and opinions in order to maintain this long-term interest in their business. Moreover, social
responsibilities are subjected to marketing practices to protect consumer rights, avoid unfair
trading and stimulate trade in a wide range.
Marketer of AUNG MYANAMR Company never work hard to keep up with changes in
regulations and the products and productions operations are banned because they are damaging
health, or because they pollute the environment. In Aung Myanmar Company, the selling and
marketing of goods is restricted by laws on the description of goods because the products of
AUNG MYANAMR Company has dangerous packaging weights and measures.

4.2 Analyze examples of how organization respond to ethical issues

Adler and Bird (1987) and Stead (1990) suggested few strategies to enhance ethical behavior and
avoid unethical behavior in organizations. They suggested that, firstly, top managerial should
encourage ethical consciousness to their subordinates by providing support and care upon ethical
practices. Secondly, it is recommended that top managerial level should focus on the
institutionalization of ethical norms and practices that are incorporated into all organizational
levels.

Besides, organizations should provide an ethical training to strengthen and gain their employees'
personal ethical framework to ensure that it practice employees' self-discipline and capable to
make an ethical decisions in a difficult circumstances. Meanwhile, organizations should be
avoiding these unethical issues happen in their institution:
Product: Misleading product information, lack quality control and deliberately produce poor
quality product, unfit product description.
Price: Expensive price with a poor quality product
Place: Different product price in different location
Distribution: Control the product supply and increase the product selling price when out of stock.
Stony Field 's responses to ethical issues
Raising the socially responsible marketing calls for main three pronged attack that relies on
proper legal, ethical and social responsibility behavior. One company that puts social responsible
marketing squarely at the center of all it does is Stony field Farm from US. Stony field is the
global market leader in organic Yogurt and it works with socially responsible suppliers, adopts
environmentally friendly manufacturing practices, and uses packaging to promote its views on
environmental and health issues. Stony field donates to secret of profits to efforts that help and
protect and restore the Earth and has launched a non-profit foundation called ' climate Counts'.
Progressive business practices have not hurt its financial performances. Stony field is the
member three yogurt brand in the limited states, and it now also sells smoothies, milk, frozen
yogurt and ice cream.

4.3 Analyze examples of consumer ethics and the effect it has on marketing
Mintel (1994) explain "ethical consumer" as a consumers who considered environmental issues,
animal issues and ethical issues, including oppressive regimes and armament when shopping. In
order to proceed with a good marketing plan, the organization shall take consumer's right into
account. As being immoral in product sales and product purchase, it may cause bad attitude or
situation. For example, if customer purchasing product which is illegal or against the law,
obviously the organization would not consider about customer's right for the sales. It would
directly affect to the market itself and unethical behavior will be spreading around.

Examples of consumer ethics are False insurance claims, warranty deception, misredemption of
vouchers, returns of merchandise, illegal downloads, coding and distribution ( music, film,
software).
Out of these, some such as false insurance claims, warranty deception and misredemption of
vouchers are illegal and others are unethical.
Whatever it may be the consumer must observe laws and ethics.
If consumers are violating laws and ethics for the sale of their own interests, it may be difficult to
build strong customer relationships and customer loyalty.
It may hinder markets to implement marketing planning successfully.

Reference
Website

Chartered Institute of Marketing, 2013. Glossary. [online] Available at:

<http://www.cim.co.uk/Resources/JargonBuster.aspx> [Accessed 03 October 2013].

K;otler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson
Education.

Marketing Teacher, n.d. Marketing mix. [online] Available at:

<http://www.marketingteacher.com/lesson-store/lesson-marketing-mix.html> [Accessed 03
October 2013].

Book

Kotler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson
Education. (Author, Intial., Year. Title. Edition. Place of Publication: Publisher.)

Drucker, P . , 2011.Innovation and Entrepreneurship.2nd ed.New York: Routledge.

(Author, Intial., Year. Title. Edition. Place of Publication: Publisher.)