Marketing planning Special Topic in Marketing Chapter (1) – Lecture (2) Dr. Inas A. Hamid

2 Marketing opportunities are often found by systematically analyzing situational environment. Once an opportunity is recognized, the marketing executive must then plan an appropriate strategy for taking advantage of the opportunity.

2- Marketing Objectives Marketing objectives usually are derived from organizational objectives. Objectives describe the Intended: Outcomes of carrying out the mission. Organization's desired profit level. Organization's market position. Organization's reputation. Organization's social responsibility. Organization's level of quality. Objectives should be written in order to their importance to force the managers and employees to think and remember them. 3

4 Objectives should be SMART S: Specific. The objective should define what to be done and by whom. “ Increase sales by 6 percent annually over the next five years”. M: Measurable. Stating the objectives in terms of certain percentage “profits or market share or sales volume” to help the planners to assess whether the organization is meeting them. For example; “increase consumer awareness” are vague, whereas “increase awareness of the year age group from 40% to 80% is more precise and capable of measurement.

5 A: Achievable. Objectives should be seen as achievable to stimulate employees to do their best. For example; If sales are targeted to increase by 25% over a designated time period then manufacturing capacity will have to be secured to meet this target. R: Realistic. Objectives need to be set with a degree of realism rather than on the basis of imagination. T: Time. Define a time frame for accomplishing the objectives. The differences between poorly stated objectives and well-stated objectives. Chapter 1, P.19

Types of objectives: Corporate objectives Marketing objectives Marketing communications objectives Each consists of one of two main components- they are either sales or communication based.

Sales objectives Performance of sales objectives can be determined in terms of sales volume –sales value- profit – market share… Are sales generated by marketing communications activities alone? What impact do marketing channel and product availability play in sales performance? Marketing communication is important but it is not the only contributor to marketing success.

Communication goals Awareness is an important state to be achieved. To achieve awareness people need to perceive the product, to understand what it might do for them (benefits), and they need to be convinced that such a purchase would be in their best interest and to do this there is a need to develop suitable attitudes and intentions. Promotional objectives must include: Identification of the target audience. A clear message. Expected outcomes in terms of trial purchase, awareness, and so on. Mechanisms for monitoring and control.

3- Select the target market The success of any marketing plan depends on how well it can identify customers needs and organize its resources to satisfy them profitably. Four important questions must be answered: 1.What do customers need? 2.What must be done to satisfy these needs? 3.What is the size of the market? 4.What is its growth profile? 9

The target market process (TMP) consists of segmenting the market, targeting particular segments and then positioning the offer in the selected segment in order to achieve the marketing goals. Targeting particular segments depends on: 1.Profitability. 2.Present and future sales volume. 3.The match between what it takes to appeal successfully to the target and the organization's capability. TMP Segmenting the market Targeting segments Positioning The offer

4- Developing marketing mix It is the set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives. These controllable variables are usually classified according to four major decision areas: product, place, price, promotion. 11

12 Product Benefits Features Options Quality Design Branding Packaging Services Warranties Price List price Discounts Credit terms Payment periods Incentives Place Channels Logistics Inventory Transport Assortments Locations Promotion (Marketing Communication) Advertising PR Sponsorship Direct marketing Point-of-purchase Exhibitions and trade fairs Personal selling Interactive marketing

13 All 4P,s have a part in the communication process but only marketing communication or promotion has the power to inform, remind, persuade and induce action in consumers. The marketing communications must therefore be interactive and on a two-way communication form.

5- Implementing and Control of Marketing Plan Implementing the marketing plan involves putting the plan into action and performing marketing tasks according to the predefined schedule. Marketing executive must closely monitor and coordinate implementation of the plan. In some cases, adjustments may have to be made in the basic plan because of changes in any of the situational environment. For example; competitors may introduce a new product. In this case, it may be desirable to speed up or delay implementation of the plan. Controlling the plan involves three basic steps: Measuring the results of the implemented marketing plan. Comparing these results with the objectives. Taking decisions on whether the plan is achieving objectives. 14

Assignment Read the case study “ Market opportunity analysis “, p.p , then answer the questions, p