CH 2 MARKETING PLANNING: THE BASICS

INTRODUCTION Marketing managers work with 2 sets of variables: Those related to the marketing mix (controllable) Those related to the marketing environment (not completely controllable) The marketing environment can be split into the macroenvironment- which cant be controlled and the microenvironment- which can be controlled to an extent.

Marketing management means managing change/adapting to change that’s outside the company’s control and initiating change that is within its control. Therefore their planning process must remain flexible and open to change

MARCOENVIRONMENT FACTORS ECONOMIC ENVIRONMENT Business cycle, inflation, changing interest rates, stock market performance and unemployment all influence the market and therefore financial needs and wants. 2. DEMOGRAPHIC ENVIRONMENT Deals with the population groups that make up the market. Demographic changes, change the wants and needs of that population.

3. SOCIAL AND CULTURAL ENVIRONMENT Changing lifestyles and social values are affecting banks. Eg- need for convenience and time saving lead to the creation of online banking. 4. POLITICAL, LEGAL AND REGULATORY ENVIRONMENTT How public policy affects the markets. Government has influence on businesses to protect customers, natural resources, the economy and other entities from harm.

5. TECHNOLOGICAL ENIVORNMENT Technology can be constructive(improve efficiency) or deconstructive(limit privacy). It gives consumers greater number of ways to access banking services (ATM’S, Point of sale terminals, online banking). 6. NATURAL ENVIRONMENT Businesses need to pay attention to environmental effects of their marketing efforts, particularly their paper usage

MICROENVIRONMENT FACTORS CUSTOMERS Banks have many types of customer groups; individuals and households who require banking services, businesses who require credit services, government market, some operate in international markets providing services to domestic customers/foreign customers. All these customers and markets are affected by macro and microenvironmental factors

2. PRODUCERS AND SUPPLIERS Marketing organizations depend on their producers and suppliers so they can produce and deliver their product/service. Uncontrollable events that affect them, affect the banks production and delivery of their product/service. 3. MARKETING INTERMEDIARIES Are firms that help them in promoting, selling and distributing products to consumers. These are not normal intermediaries.

4. COMPETITORS Must keep an eye on competitors and formulate a strategy for responding to changes in the market. Banks need to adapt to market changes in order to match/ be better than their competitors 5. PUBLICS They must be aware of and responsive to various publics. Public- group of people with something in common and opinions. External publics- shareholders, media, government and communities Internal publics- employees, directors

Stages of bank planning development There are stages in the level of sophistication in the planning effort. Egs; budget oriented planning- overall budget composited of detailed budgets of each of the operational divisions Goals down, plans up- Annual planning in which broad goals are set by senior management then departments establish plans to help achieve those gaols. Strategic planning- emphasises long term goals and deals with responsiveness to problems and opportunities generated by changing environment

STRATEGIC MARKETING PLANNING Armed with the mission and objectives set forth in the long range plan for organisation, market managers apply the steps in strategic planning process to the marketing plan that encompasses the bank’s markets. The market plan sets forth the specific market strategies and tactics that will achieve those objectives.