1. Business / Marketing Minor
Marketing Fundamentals
M21439
Session 2:
Marketing Planning & Auditing 1

2. Key Concepts Definition of marketing planning
Contents of a marketing plan
Definition of a marketing audit
Dimensions of a marketing audit

3. Definition of a Marketing Planning
“Marketing planning can be defined as the planned application of marketing resources to achieve marketing objectives.”
McDonald,M. (1999)

4. Strategic Marketing Plan
A strategic marketing plan is a plan which covers a period beyond the next fiscal year. Usually this is for between three and five years.
Source: McDonald,M.(1999) Marketing Plans 4th ed, UK:Butterworth Heinemann, p.31

5. Tactical Marketing Plan
A tactical marketing plan covers in quite a lot of detail the actions to be taken, by whom, during a short term planning period.
This is usually for one year or less.

6. Question: Do all organisations formally plan their marketing activities? If not, why not?

7. Start of Marketing Planning
Marketing planning should start with an analysis of the potential market.
Porter’s Five Forces (1985) model provides a useful tool for analysing the overall attractiveness of the market.
Source: Doyle,P.(2002) Marketing Management and Strategy 3rd ed, Harlow:Prentice Hall, p.404

8. Porter (1985) Five Competitive Forces That Determine Industry Profitability Model
POTENTIAL
ENTRANTS
Threat of
new entrants
Bargaining power of suppliers
INDUSTRY COMPETITORS
SUPPLIERS
BUYERS
Bargaining power of buyers
Rivalry among existing firms
Threat
Of substitute
Products or
services
Lecturer’s Notes:
The principle of this model it that it is possible to classify competitive forces acting against an organisation into five main categories. The five forces can act continuously and adversely against the organisation unless it defends/reacts or is proactive itself.
SUBSTITUTES
Source: Porter, M.E. (1985) Competitive Advantage: Sustaining and Creating Superior Performance New York:Free Press p.5 25 10

9. Evolution of Strategy & Management Systems
Characteristics
Financial Planning
Long Range Planning
Strategic Planning
Strategic Market Management
Management Focus
Budgets and control
Anticipate market growth
Respond to environmental changes
Capitalise on strategic windows
Assumptions
Long-run stability
Past trends to continue
New trends and discontinues are predictable
Many changes will be sudden and unpredictable
Objective
Meet the budget
Predict the future
Think strategically
Create opportunities through change
Planning Process
Annual
5 years, annual revisions
Annual revisions
Real time
When Popular
Until late 1950s
1960s
1970s
After 1980s
Source: Doyle,P.(2002) Marketing Management and Strategy 3rd ed, Harlow:Prentice Hall, p.97

10. Question: Why do you think organisations have changed their strategy & management systems? Do you know of any organisational examples?

11. Factors Influencing Company Marketing Strategy
Demographic / Economic Environment
Marketing
intermediaries
Suppliers
Marketing information system
Place
Technological /
Physical
Environment
Product
Political/
Legal
Environment
Target
customers
Marketing planning system
Marketing control system
Promotion
Price
Marketing organisation and
implementation
Competitors
Publics
Social / Cultural Environment
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.88.

12. The marketing planning cycle
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin

13. Contents of a Marketing Plan1.
Executive Summary & Table of Contents
Presents a brief overview of the proposed plan. 2.
Current Marketing Situation
Presents relevant background data on sales, costs, profits, the market, competitors, distribution and the macroenvironment. 3.
Opportunity & Issue Analysis
Identifies the main opportunities/threats, strengths/weaknesses and issues facing the product line. 4.
Objectives
Defines the plan’s financial and marketing goals in terms of sales volume, market share and profit. 5.
Marketing Strategy
Presents the broad marketing approach that will be used to achieve the plan’s objectives. 6.
Action Programs
Presents the special marketing programs designed to achieve the business objectives. 7.
Projected Profit-&-Loss Statement
Forecasts the plan’s expected financial outcomes. 8.
Controls
Indicates how the plan will be monitored.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.89.

14. The Marketing Plan 1. Management or Executive Summary
2. Marketing Objectives
3. Product/Market Background
4. Marketing Analysis
5. Marketing Strategies
6. Statement of Expected Sales Forecasts & Results
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin,p.696

15. The Marketing Plan – cont.
7. Marketing Programmes for Implementation
8. Control & Evaluation: Monitoring of Performance
9. Financial Implications/Required Budget
10. Operational Considerations
11. Appendices
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.696

16. Question: How long should it take to devise a marketing plan
Question: How long should it take to devise a marketing plan? … is there a right answer?

17. Marketing Audit
“A marketing audit is a comprehensive, systematic, independent and periodic examination of a company’s – or business unit’s – marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance.”
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.

18. Marketing Audit
The broadest control advice of the marketing plan is the marketing audit – a thorough, systematic, periodic evaluation of the goals, strategies, structure and performance of the marketing organisation.
Source: Lamb,C.W.,Hair.J.F. & McDaniel,C.(2003) Marketing 7th ed, Canada:Thomson South Western, p.44

19. Question: How does a marketing plan differ from a marketing audit – do you need both?

20. Dimensions of a Marketing Audit
PART 1
- Marketing Environment Forces
- Task Environment
PART 2
- Marketing Strategy Audit
PART 3
- Marketing Organisation Audit
PART 4
- Marketing Systems Audit
PART 5
- Marketing Productivity Audit
PART 6
- Marketing Function Audit
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, pp

21. Part 1: Marketing Environment Forces
Economic
Technological
Political/Legal/Regulatory
Societal/Green
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.710

22. Part 1: Task Environment
Markets
Customers
Competitors
Distribution & Dealers
Suppliers
Facilitators & Marketing Organisations
Publics
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.710

23. Part 2: Marketing Strategy Audit
Business Mission
Marketing Objectives & Goals
Strategy
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711

24. Part 3: Marketing Organisation Audit
Formal Structure
Functional Efficiency
Interface Efficiency
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711

25. Part 4: Marketing Systems Audit
Marketing Information System
Marketing Planning System
Marketing Control System
New Product Development System
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.711

26. Part 5: Marketing Productivity Audit
Profitability Analysis
Cost Effective Analysis
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.712

27. Part 6: Marketing Function Audit
Products and Services
Price
Distribution
Promotional Mix
Salesforce
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrel.O.C. (2001) Marketing: Concepts and Strategies 4th European ed,
USA:Houghton Mifflin, p.712

28. Marketing Audit – Four Characteristics
Comprehensive
Systematic
3. Independent
4. Periodic
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.

29. Marketing Audit - Comprehensive
Covers all of the major marketing activities of a business – not just a few trouble spots.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.

30. Marketing Audit - Systematic
Orderly examination of the macro & micro environments, mkting objectives & strategies, mkting systems and specific activities.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.

31. Marketing Audit - Independent
Can be conducted in six ways:
1. Self-audit
2. Audit from across
3. Audit from above
4. Company auditing office
5. Company task force
6. Outsider
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.708.

32. Marketing Audit - Periodic
Typically only initiated after sales have turned down but can prevent companies from being thrown into crisis.
Companies should conduct a marketing audit periodically.
Source: Kotler,P.(2000) Marketing Management Millennium edition, USA:Prentice Hall International, p.709.

33. Question: One of assessments asks you to undertake a marketing audit – how will you go about it? What organisational information can you access?