MARKETING PLANNING

MARKETING SOCIETY OF KENYA BY B.W.MAINA

DEFINITION OF PLANNING
The process of setting objectives and determining the means for achieving them. Planning involves decisions on: What to do in the future - Objectives How to do it - Strategy When to do it - Tactics Who is to do it - Tactics

PLANNING PROCESS
To decide objectives for the organization. To identify alternative ways of achieving them. To select the best course of action for the organization as a whole and also for individuals, departments and sections within it.

ON IMPORTANCE OF PLANNING
If you do not know where you are going any road will take you there. There are three kinds of people: Those who make things happen; Those who watch things happen; and Those who wonder what happened. Q: Which road should l take? A: That depends on where you are going. - Alice in Wonderland

PURPOSE OF PLANNING
To give direction to future operations. To make a conscious effort to influence the future. To reduce future uncertainty and risk. To enhance organizational success. To optimize resource utilization. To prevent the organization from straying. To provide focus to the organization. To ensure consistency inaction and expenditures.

STRATEGIC AND OPERATIONAL/ TACTICAL PLANNING

Strategic Planning: Sets or changes the basic objectives and strategies of an organization. Provides guidance and direction to organizational activities. Operational/Tactical planning: Concerned with decisions about the efficient and effective use of an organizations resources. Defines tasks and activities to be undertaken in order to achieve the desired objectives. Considers timing and responsibilities for action required to achieve the objectives.

CORPORATE PLANNING
Involves the whole organization and is undertaken at the corporate level. It is a comprehensive future-oriented process. It is concerned with both strategic and operational planning. It incorporates monitoring and control mechanisms. It can be either short- or long-term.

LEVELS OF STRATEGY
Corporate Strategies: Concerned with the type of business the organization is in or wants to be in. Consider how to enter or exit the industry. Business Strategies: Formulate strategies for strategic business units (SBUs). Consider how an organization approaches a particular product-market area. Operational/Tactical Strategies: Involve devising strategies for functional areas. Could cover marketing, production, finance, HRM, R&D etc.

MARKETING PLANNING
A systematic process that involves: Assessing marketing opportunities and resources, Determining marketing objectives, and Developing a thorough plan for implementation and control. The marketing planning process entails: Analysis of the market place, Developing or modifying the recommended marketing strategy accordingly, and Developing detailed marketing mix programmes designed to implement the specified marketing strategy.

MARKETING PLAN
A document or blueprint that details requirements for a companys marketing activity. The marketing plan governs all of a businesss marketing activities, including implementation and control of those activities,

PURPOSES OF MARKETING PLAN

Offers a road map for implementing a companys strategies and achieving its objectives. Assists in control and monitoring of implementation strategy. Informs all parties of their role and function. Specifies how resources are to be allocated. Stimulates thinking and makes better use of resources. Assigns responsibilities, tasks and timing. Makes participants aware of problems, opportunities and threats. Assists in ensuring the organization is customer-focused, aware of market and competitive movements, realistic in expectations, and prudent in its use of resources.

STRATEGIC MARKETING PLANNING

Focuses on the direction which an organization will take in relation to a specific market or set of markets, in order to achieve a specified set of objectives. Focuses mainly on market segmentation, targeting and positioning.

OPERATIONAL MARKETING PLANNING

Defines the tasks and activities to be undertaken in order to achieve the desired strategy. Focuses on development of specific product features, prices, promotion and distribution systems (4Ps)

PLANNING PROCESS
There is no ideal marketing plan for all organizations since every planning situation is unique. Hence there is no universal way of establishing a marketing plan. However, some logical steps may be followed in the planning process as explained below.

STAGES IN PLANNING PROCESS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Development of organizations mission statement Development of objectives Internal analysis External analysis SWOT analysis Strategy formulation Specific plans Implementation Control Evaluation

MISSION STATEMENT
A prerequisite to the determination of marketing plans is the definition of the overall corporate mission. This is usually done by senior management who seek to answer the questions indicated below.

MISSION STATEMENT DEFINED

Mission refers to the basic function that an organization performs for its existence It indicates the organizations purpose or reason for existence i.e. what it wants to accomplish by its existence. It provides the organization with focus and direction.

MISSION STATEMENT: QUESTIONS TO ASK

In formulating a mission statement top management seek answers to the following questions: What is our business and what should it be? Who are our customers? Exactly what do we provide them with? What is our distinctive competence or comparative advantage? The answers to these questions help the organization develop a distinctive character or personality.

CHARACTERISTICS OF GOOD MISSION STATEMENT

It should be clear and formally written. It should be visionary and offer clear guidelines to management when considering the direction of business development. The definition should be in terms of what customer needs are being served rather than the product or services being produced. It should not be too broad or too narrow to avoid losing focus or underestimating competition It should be realistic and motivating. It should be based on the firms distinctive competences

OBJECTIVES
Objectives are the specific goals to be achieved within a specified period of time. They specify the expected results and are the concrete ends to which activity is aimed. Objectives can be formulated at corporate and departmental level. Corporate objectives define goals for the organization as a whole. Departmental objectives specify goals for departments e.g. marketing objectives.

CHARACTERISTICS OF GOOD OBJECTIVES

Good objectives should be SMART - an acronym for: Specific clear and precisely stated i.e. not vague Measurable indicated in quantitative terms for ease of verification. Achievable attainable with available resources. Realistic reasonable but challenging. Time-defined time-bound i.e. indicate when they will be achieved.

MARKETING OBJECTIVES
A statement of what is to be accomplished through marketing activities. Specifies the results expected from marketing efforts. They should expressed in clear, simple terms so that all marketing personnel understand exactly what they are trying to achieve They should be measurable with accuracy to be able to verify accomplishment. They should indicate time frame for accomplishing the objective. They should be consistent with corporate objectives They should be challenging to the marketing staff.

STATEMENT OF MARKETING OBJECTIVES

Marketing objectives could be stated in terms of: Product introduction or innovation. Sales volume or value. Profitability per unit. Gains in market share for particular products Customer base target Improvements in customer satisfaction. Awareness of companys products. Example: To increase the companys market share of product X by 15% in the forthcoming year.

INTERNAL ANALYSIS
The company should undertake internal analysis of its resources, assets, performance and capabilities to establish its current condition. This analysis constitutes a self-examination, self-assessment or self-appraisal. It reveals the companys strengths and weaknesses in areas which are within the companys control.

STRENGTHS AND WEAKNESSES

Strength a particular skill or distinctive competence which the organization possesses and which will aid it in achieving stated objectives. E.g. experience in specific markets, skills possessed by employees, good image customer service. Weakness any aspect of the company which may hinder the achievement of specific objectives e.g. lack of experience in certain markets, lack of financial resources. Distinctive competence anything that a firm can do relatively better than its competitors.

INTERNAL ANALYSIS COVERAGE

Internal analysis may cover the following areas: Human resources available skills, sales force performance competences, experience, motivation levels Management style, competences, support, values, Materials supply sources, availability, reliability, quality, prices Production facilities machine condition, age, capacity, efficiency Organization structure and suitability Financial condition liquidity, availability of funds, profitability Products acceptance, quality, availability, profitability, image Marketing consider the 4Ps, market shares and sizes, portfolio Management information systems (MIS)

PEOPLE
Because services are provided by people, the selection, training and motivation of employees can make a huge difference in customer satisfaction. Ideally employees should exhibit competence, a caring attitude, responsiveness, initiative, problem-solving ability and goodwill. Service personnel should also be properly empowered.

PHYSICAL EVIDENCE
Companies try to demonstrate their service quality through physical evidence and presentation. This could consist of appearance of service personnel, appearance of facilities, and tools or equipment used to provide service. A hotel, for instance, will develop a look and observable style of dealing with customers that carries out its intended customer value proposition, whether it is cleanliness, speed, or some other benefit. A doctor will be clean, well-dressed and with proper equipment for medical examination

PROCESS
Service companies can choose among different processes to deliver their service. Restaurants have, for instance, developed such different formats as cafeteria-type, fast food buffet and candle-light service. In delivering lectures overhead or LCD projectors, white boards, chalk boards or flip charts could be used.

SERVICE ENCOUNTERS
Service marketing requires not only external marketing but also internal and interactive marketing This is the case for instance with cleaning and maintenance services, financial and banking services, and restaurant industry.

INTERNAL MARKETING
This describes the work done to train and motivate employees to serve customers well. All organizations employees should practice marketing including treating their internal customers properly.

EXTERNAL MARKETING

This describes the normal work done by the Organization to prepare, price, distribute, And promote the service to customers.

INTERACTIVE MARKETING
This describes the employees skills in serving the client. The perceived quality of a service depends heavily on the buyer-seller interaction during the service encounter. The service quality depends on both the service deliverer and the quality of the delivery. The client judges the service quality by its technical quality e.g. Was the surgery successful? and also by its functional quality e.g. Did the surgeon show concern and inspire confidence? Service providers must therefore deliver high touch as well as high tech.

DEALING WITH COMPETITION

With the rise in competition, service companies need to increase their competitive differentiation, quality and productivity.

MANAGING DIFFERENTIATION
Intense price competition in service industry has made it necessary for service marketers to differentiate their services from competition. While price competition is still important as evidenced, for instance, by the success of budget-priced airlines where many fliers appear to care more about travel costs than service, or where incomes are low, differentiation of service is important to overcome competition and prosper in the long run. The alternative to competition then is to develop a differentiated offer, delivery and image.

DIFFERENTIATIATION OF OFFER
The offer can include innovative features that set the companys offer apart from Competitors offers. Most service innovations are, however, easily copied primarily due to absence of patents to protect firms e.g. ATMs, credit cards, and branchless banking. However, the service company that innovates regularly usually gains a succession of temporary advantages and an innovative reputation. The company can also introduce secondary service features to support the primary service package offered. In the airline industry various carriers introduced such secondary service features as movies and telephone services; hotels offer support computers and internet services to those who need them.

DIFFERENTIATION OF SERVICE DELIVERY

Service companies can differentiate their service through delivery in three ways: Through people having more able and reliable customer-contact people than competitors have. Superior and attractive physical environment in which the service is delivered. Superior delivery process e.g. use of visual aids

DIFFERENTIATION OF IMAGE
Image is a key differentiating factor since service is intangible Service companies can differentiate their images through symbols and branding. Making the consumer link a specific image with a specific brand name is important e.g. a bank using the symbol of a lion might convey an image of strength. What image do the Safaricom, Telcom, Kenya Railways brands convey? It is also worth noting that during peak demand hours, the interactive quality of services often declines because both the customer and the service provider are hurried and under stress and service image could decline. Demand could be changed for instance through differentiated pricing as explained above.

MANAGING SERVICE QUALITY

Delivering higher quality service than competitors is a major way of differentiating a firms offer from competition. Outstanding service gives companies a portent competitive advantage that leads to superior sales and profit performance. Service quality refers to the customers perception of how well a service meets or exceeds their expectations. When perceived performance is equal to expected the customer is satisfied but when perceived performance exceeds expected performance the customer is delighted. The key then is to try and exceed customer quality expectations.

MANAGING SERVICE QUALITY (CONT)

The expectations are based on past experiences, word of mouth, and service firms advertising. You must therefore keep your promises. Promise only what you can deliver but deliver more than you promise to win and retain customers. The key to customer retention is customer satisfaction. Indeed customer retention is a good measure of service quality. When customers are satisfied they will remain loyal to the company and make repeat purchases while influencing others to become the companys customers. Remember also that service quality is judged by the customer not the organization. Hence it is important to know what customers expect. Focus group research could be used to discover customers expectations.

MANAGING SRVICE QUALITY (CONT)

In the event of service problems, it is important to ensure a good service recovery process as this can turn an angry customer into a loyal one To ensure this empower front line service employees by giving them authority, responsibility and the incentives they need to recognize, care about and attend to customers needs. Also empower them to handle complaints so as to save time since, for most customers, time is of the essence and they do not want to waste time by being kept waiting unnecessarily or transferred through several departments. Let the frontline staff act as ambassadors and information gatherers for the company.

DETERMINANTS/DIMENSIONS OF SERVICE QUALITY

There are five determinants or dimensions of service quality: Tangibles The appearance of physical facilities, tools, equipment, service personnel and communication materials. Reliability The ability to perform the promised service consistently, dependably, and accurately. Responsiveness The willingness and readiness of employees to provide the service promptly and to help customers. Assurance The knowledge, competence and courtesy of employees and their ability to convey trust and confidence. Empathy The provision of caring and individual attention to customers.

CHARACTERISTICS OF QUALITY
Quality is largely subjective; it is judged by the customer. Like beauty it is in the beholders eye. Hence: Different customers may want and expect different things. Quality is relative to customer expectations and cannot be measured in absolute terms. Quality is distinctive. Different quality needs may be met through product differentiation and market segmentation. Quality is dynamic. Expectations change time due to experience and environment. Quality requires care by the provider.

FEATURES OF WELL-MANAGED SERVICE COMPANIES

Well-managed companies have common features and practices as follows: They are customer-focused with clear and distinctive strategy for satisfying customers needs that wins enduring customer loyalty. Have a history of top management commitment to quality serving as role models. Set high service quality standards e.g. zero defects or answering the phone within 2 rings.

FEATURES OF WELL-MANAGED SERVICE COMPANIES (cont)

Watch and monitor both their own and competitors service performance closely using methods such as customer surveys, suggestions, mystery shopping and complaint systems. Communicate their concerns about service quality o employees and provide performance feedback. Handle customer complaints promptly. Audit employee satisfaction regularly i.e. internal marketing to support employees and reward good performance. Set up systems for service delivery to reduce variation in service delivery.

MANAGING PRODUCTIVITY
It is important for a service company to manage productivity so as to keep costs down in order to lower prices to consumers and also make profits. To increase service productivity the company could: Train current employees better. Hire new employees who will work harder and better for the same pay. Standardize production and introduce equipment for service provision e.g. ATMs, dish washing equipment. Encourage customer participation in service provision e.g. filling forms at hospitals, sorting mail before delivering to post office, bagging own purchases, etc.

MARKETING OF SERVICES
THE END THANK YOU

B.W.MAINA