1. Marketing Planning

2. Objectives To understand the marketing planning process
To learn how the marketing plan is structured
To estimate market potential, sales potential and sales forecast

3. Some definitions Marketing Planning:
A systematic process that involves assessing marketing
opportunities and resources, determining marketing objectives
and developing thorough plans for implementation and
Controls.
Marketing Plan:
A document that details requirements for a company’s
marketing activity

4. Issues in Planning Process
The speed of the process
The amount of the data collected
Who does the planning
The structure
Length of plan
Frequency of planning
Number of alternative strategies considered
Cross-functional acceptance
Using the plan as a sales document

5. The Marketing Plan Define the current business situation
Define problems and opportunities facing the business
Establish objectives
Define the strategies and programs necessary to achieve the
objectives
Pinpoint responsibility for business centre objectives
Establish timetables for achieving objectives
Encourage careful and disciplined thinking
Establish an outward orientation

6. Steps in Planning Sequence
Collect Data
Situation Analysis
Develop Objectives,
Strategies , Programmes
Develop Financial
Documents
Negotiate Final
Plan
Measure progress towards
Objectives
Audit
Adapted from Analysis for Marketing Planning
D.R. Lehmann and R.S. Winer

7. Marketing Plan Summary
Executive Summary
A. Situation Analysis
B. Sales Analysis
C. Competitor Analysis
D. Customer Analysis
E. Planning Assumptions
F. Forecasts
Marketing Objectives
Marketing Strategy
Marketing Programmes
Financial Documents
Monitor and Control

8. Market Potential and Forecasting
Market Potential: The total amount of a product that customers
will purchase within a specified period of time, a specific
level of industry wide marketing activity
Sales Potential: is the maximum percentage of market potential
that an individual company within an industry can expect
to obtain for a specific product or service
Sales Forecast: is the amount of a product that the company expects to sell during a specific period at a specified level
of marketing activities

9. Deriving Potential Estimates
Data Calculation Result
Secondary Data
Model/Statistical
Model
Potential
Estimate
Past Sales Data
Judgement
Surveys /Primary
Data

10. An example Calculation of Market Potential
Determine the potential buyers of a product
(how:judgment, experience, etc);
Determine how many individual customers are in the potential
groups of buyers
Estimate the potential purchasing or usage rate

11. An example Diapers in the U.S. Who are the potential consumers?
Babies years old less those who are allergic to liner
2. How many are there?
4 million births annually, an annual 1 % mortality rate and
5% allergic incidence or 3,762, years old, 3,724,380
1-2 years old, and 3,687, years old
How much can they consume?
diapers per day
diapers per day
diapers per day
Market Potential:
0-1 years old 37,620,000
1-2 years old 26,070,660
2-3 years old 5,530,704
Total/day 69,221,364

12. Sales Forecast Sales Forecast = Market Potential  category 
Percent of potential attained in the product
category 
“our” share of the product category

13. Sales Forecasting Methods
Quantitative
Qualitative
Expert Judgement
Polling of Experts
Delphi Procedures
Survey Based
Moving Average, Exponential
Smoothing
Times Series Regressions
Epidemic Models
Regression Models

14. Marketing Audit
Marketing Audit is a systematic examination of the marketing
Group’s objectives , strategies, organisation and performance.

15. Marketing Audit (II) The marketing audit should
Describe current activities and results to sales, costs, prices,
profits and other performance feedback
2. Gathering Information about customers, competition and
environmental developments that may affect the marketing
strategy.
Exploring opportunities and alternatives for improving the
the marketing strategy.
Providing an overall database to be used in evaluating the
attainment of organisational goals and marketing objectives.

16. What have we learned
What are the critical steps of marketing planning.
What is the structure of a marketing plan
Making decisions on strategies and tactics, requires a clear
understanding of what what might happen (potential) and
what you think it might happen (forecast). We explored
how the accuracy of this information can be increased