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 ofmarketing decisions and actions, for a specific organisation and over a specificperiod 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 we’re 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 themenables 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 integratedneed to stand out in a positive way

Social media interactions= brand building

Increased focus on priceIncreased competition and decrease in income ( economic crisis of last years)pricing strategies are becoming crucial

Social responsibility= part of/ belong to communitydo it because it’s expected from them: not good/evil but neutralit’s cynical but forces us to do the right thing

2. The marketing planning process= step by step process7 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 organizationvalues, mission

A. Internal audit Mission statement.

In same line, otherwise confuse customerEx: bodyshop: ethicly focused mission statement: fairness, organical

Resources. Offerings. Capabilities.

Compatible offerings : It needs to connect with our other offerings / products Ex bodyshop can’t sell a car even if it’s 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. competitionD. Sustainable

Environmental and economical (can’t only make losses)E. Commitments to publics

provide values for employees, societies, to business partners

F. Marketing transparencybehave 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 benchmarkex in 3 months we want 8% of target sales number, after 6 months 16%..

- Determine budgets, forecasts, schedules, metricsBudget: Look at resources and specify each cost-barring itemforcast: look at past numbers to forecast futureschedules: detailed time-oriented schedules whan things are going together because everything needs to fit together (integrated) ex: Gantt chartMetrics: specific values, factors you measure your companies progress againstEx 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 andprograms.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 withinthe 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 you’re already doing/activities

Example: