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| Marketing planning |
The marketing process is the process of analyzing market opportunities, selecting target markets,
developing the marketing mix, and managing the marketing effort.
This process has following main steps:
1. Analyzing marketing opportunities
2. Selecting target markets
3. Developing the marketing Mix
4. Managing the marketing effort
A. Analyzing marketing opportunities
First step of the marketing process is analyzing market opportunities and availing these
opportunities to satisfy the customers requirements to have competitive advantage. The marketing
function of analyzing market opportunities is important in the marketing planning process. Any
marketing manager must analyses the long-run opportunities in the market to improve the business
unit's performance. To evaluate its opportunities firms needs to operate a reliable marketing
information system. Researching the market allows the company to gather information about their customers, competitors and any environmental changes to determine the market opportunities. Once the market opportunities
have been analyzed then modern marketing practice calls for dividing the market into major market segments, evaluating each segment, and selecting and targeting those market segments that the company can best serve
b. Selecting the target Market:
To succeed in today;s competitive marketplace, companies must be customer centered. They must
win customers from competitors and keep them by delivering greater value.
• Sound marketing requires a careful, deliberate analysis of consumers.
• Since companies cannot satisfy all consumers in a given market, they must divide up the
total market (market segmentation), choose the best segments (market targeting), and
design strategies for profitably serving chosen segments better than the competition
(market positioning).
Market segmentation is the process of dividing a market into distinct groups of buyers with different
needs, characteristics, or behavior who might require separate products or marketing mixes.
Market targeting is the process of evaluating each market segments attractiveness and selecting one
or more segments to enter. A company should target segments in which it can generate the greatest
customer value and sustain it over time. A company may decide to serve only one or a few special
segments, or perhaps it might decide to offer a complete range of products to serve all market
segments. Special segments may be called; market niches. Most companies enter a new market
by serving a single segment, and if this proves successful, they add segments.
Market positioning is arranging for a product to occupy a clear distinctive and desirable place relative
to competing products in the minds of target consumers. In positioning a product, a company
first needs to identify possible competitive advantages upon which to build the position. To gain
competitive advantage, the company must offer greater competitive advantage to the target
segment. The company’s entire marketing program should support the chosen positioning strategy.
Effective positioning begins with actually differentiating the company’s marketing offer so that it
gives consumers more value than they are offered by the competition.
c. Developing the Marketing Mix
Once the company has decided on its overall competitive marketing strategy, it is ready to
begin planning the details of the marketing mix. The marketing mix is the set of controllable
marketing variables that the firm blends to produce the response it wants in the target market. The
marketing mix consists of everything that the firm can do to influence the demand for its product.
These variables are often referred to as the “four Ps.”
- 1). Product stands for the “goods-and-service” combination the company offers to the target
- market.
- 2). Price stands for the amount of money customers have to pay to obtain the product.
- 3). Place stands for company activities that make the product available to target consumers.
- 4). Promotion stands for activities that communicate the merits of the product and persuade
- target consumers to buy it.
An effective marketing program blends all of the marketing mix elements into a coordinated
program designed to achieve the company’s marketing objectives by delivering value to consumers.
Some critics feel that the four Ps omit or underestimate certain important activities.
- 1). “Where are services?” they ask.
- 2). “Where is packaging?”
- 3). The 4 Ps seems to take the seller’s view rather than the buyer’s view.
- 4). Perhaps a better classification would be the 4 Cs:
- a). Product = Customer Solution.
- b). Price = Customer Cost.
- c). Place = Convenience.
- d). Promotion = Communication.
d. Managing the Marketing Effort
The company wants to design and put into action the marketing mix that will best achieve its
objectives in target markets. This involves four marketing management functions. The four
functions are: analysis, planning, implementation, and control.
- Marketing Analysis:
Marketing analysis involves a complete analysis of the company’s situation. The company performs analysis by Identifying environmental opportunities and threats. Analyzing company strengths and weaknesses to determine which opportunities the company can best pursue.
2.Marketing Planning:
Within each business unit, functional plans must be prepared, including marketing plans. Such plans include marketing plans which are aggregate plans consisting of plans for product lines, brands and markets. Marketing planning involves deciding on marketing strategies that will help the company to attain its overall strategic objectives. A detailed plan is needed for each business, product, or brand. A product or brand plan should contain the following sections: executive summary, current marketing situation, threats and opportunity analysis, objectives and issues, marketing strategies, action programs, budgets, and controls. Contents of Marketing Plan 1. Executive summary - The opening section of the marketing plan that presents a short summary of the main goals and recommendations to be presented in the plan. 2. Current marketing situation - The section of a marketing plan that describes the target market and the company’s position in it. The current marketing situation is the section of a marketing plan that describes the target market and the company’s position in it. Important sections include:
- 1). A market description.
- 2). A product review.
- 3). Analysis of the competition.
- 4). A section on distribution.
3. Opportunities and Issues Analysis-
This section requires the marketing manager to look ahead for threats and opportunities that the product(s) might face. A company marketing opportunity would be an attractive arena for marketing action in which the company would enjoy a competitive advantage. In the threats and opportunities section, managers are forced to anticipate important developments that can have an impact, either positive or negative, on the firm. Having studied the product’s threats and opportunities, the manager can now set objectives and consider issues that will affect them.
4. Objectives
Objectives should be stated as goals the company would like to reach during the plan’s term.
5. Marketing strategy
The marketing logic by which the business unit hopes to achieve its marketing objectives. Marketing strategy consists of specific strategies for target markets, marketing mix and marketing expenditure level. Strategies should be created for all marketing mix components. The marketing budget is a section of the marketing plan that shows projected revenues, costs, and profits. The last section of the marketing plan outlines the controls that will be used to monitor progress. This allows for progress checks and corrective action. Feeding information and other inputs to each of the other marketing management functions.
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