Marketing Plans

Gary Akehurst
 Marketing Plans
marketing planning
‘...the planned application of marketing resources to
achieve marketing objectives’
(Source: McDonald, 1995: 20)
a structured, logical sequence and series of
activities leading to the setting of marketing
objectives and the formulation of plans for
achieving them
brings together into one coherent plan all the
elements of marketing
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a marketing plan is a strategic plan (3-5 years)

particular emphasis on scanning the external
environment and early identification of external
forces emanating from it
reviewing internal resources and their organisation
developing appropriate strategic responses
measuring and reviewing actions
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Phase 1 mission McDonald, 1999
Goal setting
corporate objectives

marketing audit
Phase 2
Situation Review SWOT analysis

assumptions

generation of marketing objectives & strategies

Phase 3
Strategy estimate expected results
Formulation
identify alternative plans and mixes

budget measurement
Phase 4 and
Implementation first year detailed implementation programme review
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key questions stages in marketing planning
where are we now and business mission
how did we get there? marketing audit
SWOT analysis
where are we heading? marketing audit
SWOT analysis
where would we like to be? strategic options analysis
marketing objectives
how do we get there? core strategy
marketing mix decisions
organisation
implementation
are we on course? control
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marketing audit

‘The means by which a company can understand how it

relates to the environment in which it operates. It is the
means by which a company can identify its own strengths
and weaknesses as they relate to external opportunities and
threats. It is thus a way of helping management to select a
position in that environment based on known factors’

(McDonald, 1995: 28)

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marketing audits
an essential prerequisite to problem-solving
a structured approach to the collection and analysis of
information and data in the complex business environment
should be an on-going activity not a desperate attempt to
turnaround a business
external audit - uncontrollable variables (general economy
health and growth of organisation’s markets)
internal audit - controllable variables (assesses
organisation’s resources as they relate to the environment
and vis a vis competitor’s resources
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External marketing audit checklist

macroenvironment
economic: inflation, interest rates, unemployment
social/cultural: age distribution, lifestyle changes, values,
attitudes
technological: new product and process technologies,
materials
political/legal: monopoly control, new laws, regulations
ecological: conservation, pollution, energy
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External marketing audit checklist

macroenvironment (continued)
The market
market size, growth rates, trends, developments
customers: who are they, their choice criteria, how, when, where do they
buy, how do they rate us vis a vis competition on product, promotion,
price, distribution
market segmentation: how do customers group, what benefits do each
group seek
distribution: power changes, channel attractiveness, growth potentials,
physical distribution methods, decision-makers and influencers
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External marketing audit checklist

macroenvironment (continued)
competition: who are the major competitors - actual and
potential, what are their objectives and strategies, what are
their strengths (distinctive competencies) and weaknesses
(vulnerability analysis), market shares and size of
competitors
industry profitability analysis
barriers to entry (protection from competitor attack)
(Jobber, 1995: 37)
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Internal marketing audit checklist (focus on those areas

under the control of marketing management)
operating results (by product, customer, geographic region)
sales, market share, profit margins, costs
strategic issues analysis
marketing objectives, market segmentation, competitive advantage, core
competencies, positioning, product portfolio analysis
marketing mix effectiveness
product, price, promotion, distribution (reviewed in the light of changing
customer requirements and competitor activity)
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Internal marketing audit checklist (continued)

Marketing structures
marketing organisation (to determine fit with strategy and the market)
marketing training
intra and interdepartmental communications
Marketing systems (effectiveness)
marketing information systems (any information shortfalls)
marketing planning system
marketing control system (effectiveness, accuracy, timeliness, coverage)
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sub-plans
a product mix plan
product deletions, additions, modifications, when they are to
occur, volume, turnover and profit objectives broken down
into product groups and product items
a sales plan
desired servicing levels for existing accounts with targets for
new accounts
an advertising plan
where advertising considered important, specifying timing, nature and
amount by media
sales promotion plan and other plans (pricing, R & D,
physical distribution, market research etc)
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strategy formulation - strategic options
win competitor’s customers

buy competitors
market penetration

discourage competitive entry

increase sales
convert non-users
volume market expansion increase usage rate
product line extension
product replacement
product development
innovation
promote new uses
market development
enter new segments

source: Jobber, 1995: 41

entry into new markets new products
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strategy formulation - strategic options
fixed costs increase capacity utilisation
reduce costs reduce working capital (eg stocks)
reduce marketing spend
reduce R & D spend
reduce capacity
subcontracting
improve variable costs
reduce capacity
profitability subcontracting
standardise components
new materials
system and process efficiency

rationalise
market segment rationalisation
operations
product line pruning
distribution rationalisation

increase prices (Jobber, 1995: 43)

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Possible problems in making marketing planning work

political (planning is a resource allocation process)

opportunity cost (time wasting? time diverted from day-
to-day managing)
reward (rewards often geared to the short-term)
information (information often difficult to get of market
share, size and growth rates)
culture (many businesses ‘plan’ by making incremental
decisions)
personalities (clashes and antagonisms)
lack of knowledge and skills
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Handling marketing planning problems

senior management support (ie committed to planning and
seen to give it on-going support)
match the planning system to the culture of the business
reward system (should reward the achievement of longer-term
objectives, rather than focus on short-term results)
‘depolitise’ outcomes (less emphasis should be placed on
rewarding managers associated with build (growth) strategies, ie
recognise skills of defending share and harvesting products
clear communications (plans communicated clearly to those
charged with implementation)
training (in marketing knowledge and skills)
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Rewards of marketing planning

consistency (the plan provides a focal point for decisions and
actions - a common plan should give better co-ordinated, consistent
actions)
encourages the monitoring of change (faces managers to step
away from day-to-day problems and review the impact of change on
the business from a strategic perspective)
encourages organisational adaptation (the underlying
premise of planning is that the organisation should adapt to match its
environment - marketing planning promotes the necessity of accepting
the inevitability of change)
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Rewards of marketing planning (continued)

stimulates achievement (the planning process focuses on

objectives, strategies and results - it encourages the question “what can
we achieve given our capabilities?”)
resource allocation (which products should receive investment
(build), which should be maintained (hold), which should have
resources withdrawn slowly (harvest) or resources withdrawn
immediately (divest)
competitive advantage (planning promotes the search for sources
of competitive advantage)
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References
McDonald, M. (1999) Marketing plans. How to
prepare them: how to use them (4th Ed). Oxford:
Butterworth-Heinemann
Jobber, D. (2001) Principles and practice of
marketing. (3rd Ed). London: McGraw-Hill
Kotler, P., Armstrong, G., Saunders, J. and V. Wong
(2001) Principles of marketing. (3rd European
Ed), London: Prentice Hall