Friday, 28 November 2014

Marketing Planning-2

Marketing Planning


Introduction: All businesses, from the large corporation to the solely-owned and operated small business, need a plan to direct their future actions and make the most of scarce marketing resources. Effective planning is the only way to assure that the businesses are making the most use of the resources that they commit to marketing.

Marketing Plan:
It is the guide, much like a blue print guides a builder or a chart guides a pilot. It shows where the business is now, where it wants to end up, and a route to get the business to that destination.


A marketing plan has three major sections-
-       A situation alanysis: It describes the current business environment. It answers the questions- “Where are we?” and “Where are we going?”. Through answering this questions decision makers identify and examine factors that affect the business.

-       An objective section: It answers the questions- “What do we want to do?”. Priorities must be established to direct the allocation of personnel, effort and resources.

-       A strategy and action plan: It outlines the marketing strategies that will be implemented and the specific actions that will be needed to implement those strategies and accomplish each objective. Answering the questions- “How do the business get where it wants to go?”; “When do the business want to arrive?”; “Who is responsible?” and “How much will it cost?”

Figure: Marketing Plan
  
Need of Marketing Plan:
Planning forces decision makers to identify the firm’s strengths and weaknesses, and opportunities and threats.
As a result, the manager is in a position to capitalise on the identified strengths and address the weaknesses. Developing a plan forces a manager to develop direction and objectives for the business to accomplish. They need to priorities to accomplish and track the activities. A marketing plan helps focus team efforts and specific tactics to be followed, including:
-       What strategies will be implemented ?
-       Who is responsible for various tasks ?
-       When each task should be completed ?
-       What resources will be needed to complete the task ?

Failure of Plan (Causes):
-       Lack of an Adequate Situation Analysis: It is an on-going activity, not something reserved just for planning time. So, it would always be updated.
-       Unrealistic objectives: Business should not underestimate or over estimate their objectives or goals.
-       Not enough details: The business objectives may be fine but the strategy and the steps to implement it may not be complete.
-       Status Quo: Strategies are the same as last year, yet expecting different results.
-       Plan is not implemented: Often plan is written and placed in a file. Without action, planning is waste of time.
-       Unanticipated competitor actions: Business should keep enough flexibility to adjust their plan and budget.
-       Progress is not evaluated: The only way to fine tune a plan is to evaluate what works and what does not.


Bibliography:
Green, G. and Williams, J. (1996), Marketing: Mastering Your Small Business, USA: Upstart Publishing Company.


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