Marketing Planning

According to Lamb, Hair McDaniel, they states marketing planning is a plan involves designing

activities relating to marketing objectives and attach with the capability of changing marketing

environment. It contains with the issues of product lines, distribution channels, marketing

communications and pricing.

The case study (company) I have chosen for this assignment would be Prada, a luxury fashion

company. I would hereby explain the elements and importance of a marketing plan to enable

Prada enhance competitiveness and successively helps to increase their market share.

LO1 - Compile marketing audits

1.1- Review changing perspectives in marketing planning

Referring from Winchester et al (1997), marketing plan is an all-purpose tool that enables the

management to know everything related the company. It is an indication that shows management

what is the flaws of their plan, how to succeed in their goals and redefine the direction in a new

market or new product against the competitors. Nonetheless, it shall be responsive that a good

marketing plan must contain with the consideration of changing perspectives.

Prada was first introduced by Mario Prada in 1913. It mainly emphasize with high quality leather

production on handbags, suitcases, shoes and trunks. However, in 1978, when Miuccia Prada

took over the company, they had been struggling against competition of Gucci. From it, Miuccia

Prada notices they need to change their perspectives in their marketing plan; they need a new

appearance product to beat down Gucci. Therefore, she decided to redesign some of Pradas old

favourites with the purpose of remains customer and attract new customer. The Black classic bag

sales were successful and help Prada recognized as a symbol of upper class elegance.

By 1990, Prada management noticed that their product range is only suitable for upper class

consumer and not middle class customers. From it, they launch a new line product which named

Miu Miu with the affordable prices to attract middle class customers. They also introduced the

Prada Sport line along with mens line and lingerie. Until today, Prada has many different

product line with different appearance design while maintaining their high quality standard.

1.2- Evaluate an organizations capability for planning its future marketing activity

Organizational capability defined in terms of its core competence, synergistic effects, strengths,

weaknesses and resources and behavior. It represents a capacity of an organization to use its

strengths to overcome it weaknesses and create an opportunities and face in its external

environment.

In this case study, Pradas organizational capabilities are stated below:

Core competence Strengths

Brand effect

Global network

Synergistic effects

Resources and behavior

Uniqueness and creative

Good quality

Loyal audience

Miuccia Pradas uniqueness

Multi brands stores in worldwide

Recognizable and bright well-known company

Weaknesses

High prices

Availability of product

Lack information in its website

Difficulty in acquiring funding as it is a private company

Prada has founded in 1913, but yet it still has great potential to go further by increasing and

developing its functional areas in terms of finance, marketing operations, personnel, information

and general management.

In the view of finances prospect, Prada should control usage of funds with a budget and

limitation.

In marketings prospect, Prada should increase their brand awareness and understand with

the factors would affect marketing capability in price, promotion, place and product which

would enhance their sales turnover and maintain the brand loyalty.

Besides, Prada should be alert with product waste and loss control and limitations, and ensure

there is nothing wrong with the productive system to produce a good quality product.

They also need to update website information to enhance their information management

capability. Lastly but not least, Prada have consider the factors which influence their personnel

and general management capability.

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 customers 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 organizations 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.

Pradas SWOT analysis has shown as below:

Strengths Weaknesses

Good quality

Loyal audience

Miuccia Pradas uniqueness

Multi brands stores in worldwide

High prices

Availability of product

Lack information in its website

Difficulty in acquiring funding as it is a private

company

Opportunities Threats

Franchises opportunity

Global markets growth

Outsourcing production

Digital market Internet

Capture the younger generation consumers

Falsification

Political crisis

Strong competitors

Fashionable catwalk copycats with lower price

LO2 - The main barriers to marketing planning

2.1- Assess the main barriers to marketing planning

A strong marketing strategy and planning is essential and vital component for any organization.

However, sometimes, there are certain barriers of marketing planning. For example,

Lack Of Motivation Of Change: If stakeholders are demotivated and do not feel the need to

overcome the threats or grab the emerging opportunities, it would be a main barriers to a

good marketing plan.

Overconfident With Problems Solution: Overconfident would cause a flawed or

inappropriate solution for the problems.

Failure Of Co-Operation Between Management: Human resources and financial

department are not willing to share resources and goals, manifestly the marketing effort will

be impaired.

Lack of Knowledge And Skills: Without proper knowledge and skills may lead to unrealistic

plan and ideas.

2.2- Examine how organizations may overcome barriers to marketing planning

Professor McDonald has suggested ten rules to overcome the barriers of the marketing planning,

which contains:

Strategy before tactics

Situate marketing within operations

Shared values about marketing

Structure around marketing

Scan the environment thoroughly

Summarize information on SWOT analysis

Skills and knowledge

Systematize the process

Sequence objectives

Style and culture

Furthermore marketing planning is "a reasonable series of events leading to the setting of

marketing objectives and making of plan for achieving them." The complication of marketing

planning means that when organization embarks on it, they should expect to meet a number of

organizational, attitudinal, process difficulties.

To better understand the barriers that have an effect on marketing planning in any organization, a

marketing manager must recognize online initiatives that produce the best results as well as

techniques that are simple to exercise. Inside the plan a methodical system should be developed

to promote objectives and interlink them. The environment should be carefully scanned and

information should be approved up the channels through a laying system, which only permit

applicable information to be passed on. Do not try to be a jack-of-all-trades; as an alternative,

focus on more than a few exact practices that feel at ease.

Furthermore, marketing managers of many companies get so tired with daily emails, webinars

and online analysis that they cannot spotlight on making their marketing strategies. as an

alternative, deal with your time by restraining your access to emails and other social networks.

This leaves more time for content creation and information generation.

LO3 - 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. Mr. Macdonald (1995) introduces a four steps approach for the

marketing plan which includes:

Goal Setting: Organization Mission defined by Mintzberg as a mission describes the

organizations basic function in society, in terms of the products and services for its customers.

Pradas goal is to be leading high end fashion label in worldwide. It comes with a mission that to

make Prada products as a piece of art rather than just a brand.

Situational Review: 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 Prada, please refer to 1.4.

Strategy Formulation: 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 Prada, please refer to 3.4.

Monitoring and Control: 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

In 2006, Prada entered into an agreement with LG Electronics to develop a new product in the

market - Luxury design mobile phone. Both companies leveraging their respective skills created

Prada Phone with a unique, sophisticated and elegant telephone and also the first touch screen

phone in the world. It achieved great sales: 1,000,000 as a result.

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.

PRADAs Marketing Mix

Product

PRADA line produces high end clothes and accessories for men and women, fragrances,

cosmetics and childrens clothes.

PRADA sub line Miu Miu is the products with affordable price and targeted young

generation.

PRADA sub line Line Rossa is the PRADAs sport collection.

Place

250 PRADA stores in 65 countries

Headquarters located in Milan

Prada also sold their products in:

Online stores

Harrods

Selfridge

Price

PRADA has many product line with different price levels:

Purses & leather goods: 200 - 3000

Shoes: 100 - 500

Fragrance: 40 - 100

Promotion

Magazines Ads: Ads are featured in Elle and Vogue.

Fashion shows: held around the world and it has become the most persuasive marketing

tools in fashion industry.

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.

LO4 - Ethical issues in marketing

4.1- Explain how ethical issues influence marketing planning

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 consumers 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 customers

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.

4.2- Analyze examples of how organizations 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.

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

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 consumers 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 customers right for the sales. It would directly affect to

the market itself and unethical behavior will be spreading around.

Bibliography

Bibliography

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Drake, R. A. (1993). "Processing persuasive arguments: 2. Discounting of

truth and relevance as a function of agreement and manipulated activation

asymmetry". Journal of Research in Personality 27 (2): 184196.

doi:10.1006/jrpe.1993.1013.

Chua, E. F.; Rand-Giovannetti, E.; Schacter, D. L.; Albert, M.; Sperling, R.

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References

References

^ Oxford English Dictionary

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Accessed 18. Oct 2009.

http://www.parada.com/

Marketing Planning Lecture Slides Given by Our Assessor.