MARKETING PLAN DEVELOPMENT

Module 7
 Marketing Plan Structure

1) The specific outline used is not important as long as the outline is comprehensive and
includes all relevant information.

2) The structure should be logical so it is easy to follow and communicates its message
clearly to top management.

3) The structure should be flexible enough to be adapted easily to unique situations and
organizational characteristics.

4) Any marketing plan structure is just a framework, not a series of sequential planning
steps.

5) Many elements of a marketing plan are decided upon simultaneously, such as marketing
strategy and implementation.
 Marketing plan structure
Section
Purpose

Presents a brief overview of the proposed plan for quick management

Executive summary
review
Presents relevant background data on the market, product, competition,
Current marketing situation
and distribution

Threats and opportunity analysis Identifies the main threats and opportunities that might impact the product

Defines the company’s objectives for the product in sales, market share,
Objectives and issues
and profit, and the issues that will affect these objectives.
Presents the broad marketing approach that will be used to achieve the
Marketing strategy
plan’s objectives.
Specifies what will be done, who will do it, when it is done, and how
Action programs
much it will cost.
A projected profit and loss statement that forecasts the expected financial
Budgets
outcomes from the plan.
Controls Indicates how the progress of the plan will be monitored.
 Executive Summary

1) The executive summary is a synopsis of the overall marketing plan with an outline that
conveys the main thrust of the marketing strategy and its execution.

2) The purpose of the executive summary is to provide an overview of the plan so the reader
can quickly identify key issues or concerns related to his or her role in the planning process.

3) The executive summary tells managers what information is contained in the plan for other
planning or implementation issues.

4) The executive summary may also be used by others outside the immediate organization
who have a stake in the firm’s success.
 Environmental Analysis

1) The environmental analysis summarizes all pertinent information obtained about three
key business conditions: the external environment, the customer environment (i.e., target
markets), and the firm's internal (organizational) environment.

2) Information for the environmental analysis may be obtained internally through the firm's
information system or externally through primary and/or secondary marketing research.

3) The environmental analysis should be simultaneously comprehensive in scope and

focused on key issues in order to prevent information overload.

4) The collection and organization of environmental data should be an ongoing effort, and
the data can be stored and analyzed within the firm's marketing information system (MIS)
so that up-to-date information about the firm's environment is available when needed.
 Marketing Goals and Objectives

1) Marketing goals and objectives are formal statements of the desired and
expected outcomes resulting from the marketing plan.

2) Marketing Goals are broad, simple statements of what is to be

accomplished through the marketing strategy.

3) Marketing objectives are more specific and are essential to planning.

  Marketing Strategy

Marketing strategies involve selecting and analyzing target markets and creating and
maintaining an appropriate marketing mix (product, distribution, promotion, and price) to
satisfy the needs of those target markets.

The marketing plan should clearly define target markets in terms of one or more important
segmentation variables (e.g., demographic, geographic, psychographic, product usage).The
plan should specify how the elements of the marketing mix will work together to satisfy the
needs of specific target market segments.

The final portion of the strategy section of the marketing plan outlines the expected
reactions to implementing the chosen marketing strategy.
 Marketing Implementation

Marketing implementation is the process of executing the marketing strategy by creating

specific actions that will ensure that the marketing objectives are achieved.

 What specific actions will be taken?

 How will these activities be performed?

 When will these activities be performed?

 Who is responsible for the completion of these activities?

 How will the completion of plan activities be monitored?

 How much will these activities cost?

 Evaluation and Control

The first part, marketing evaluation, involves a financial assessment of the marketing plan.
Financial projections are based on estimates of costs, sales, and revenues.

The second part, marketing control, involves establishing performance standards, assessing
actual performance by comparing it with these standards, and, if necessary, taking corrective
action to reduce discrepancies between desired and actual performance.

Performance standards can be based on sales volume increases, profitability, market share
increases, or even advertising standards such as brand name recognition or recall.

A firm can use a number of tools to pinpoint potential causes for discrepancies, including the
marketing audit, a systematic examination of the firm's marketing objectives, strategy, and
performance.
 Problems in Creating Marketing Plans

In the past decade, many firms have changed the focus and content of their marketing
plans.

 Of these changes, the one most frequently mentioned by marketing managers is an

increased emphasis on the customer.

 Other important changes in marketing plans include better analysis of the competition,
more specific objectives and measurement, and more reasoned and realistic planning.

 Some of the problems most commonly cited in the development of marketing plans,
including getting company wide consensus and cooperation and finding enough time to
prepare a good plan.

 Some shortcomings of marketing plans include too much emphasis on short-term goals
and the plan not being specific enough.
 Using the Marketing Plan

1) A marketing plan is only as good as the information it contains and the effort and creativity
that went into its creation.

2) The importance of having an ongoing system of collecting relevant marketing information

cannot be overstressed.

3) A marketing plan is not a substitute for managerial judgment. Managerial intuition and
judgment are essential in the marketing planning process.

4) The authority to approve a marketing plan is typically vested in executives above the
marketing level. A good marketing plan can sell itself to top management.
5) The completion of the formal, written plan is not the most critical goal. It is more
important that the plan is approved by top management and that the necessary resources
are provided to help ensure its implementation.

6) To give a marketing plan every chance for success, very little time should elapse
between the completion of the plan and its implementation.

7) The creation of a marketing plan is an important milestone, but is by no means the final
step in strategic market planning.

8) Due to ever-changing environments, a marketing plan must be flexible enough to be

adjusted on an ongoing basis.
Thank you