Even a great marketing strategy can be sabotaged by poor implementation. If the unit has decided to attain
technological leadership, it must strengthen its R&D department, gather technological intelligence, develop
leading-edge products, train its technical sales force, and communicate its technological leadership\\
The Nature and Contents
of a Marketing Plan Working within the plans set by the levels above them, marketing managers come up with a marketing plan for individual products, lines, brands, channels, or customer groups. A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. It contains tactical guidelines for the marketing programs and financial allocations over the planning period.
A marketing plan is one of the most important outputs of the marketing process. It provides direction and focus for a brand, product, or company. It informs and motivates key constituents inside and outside an organization about its marketing goals and how these can be achieved. Nonprofit organizations use marketing plans to guide their fund-raising and outreach efforts, and government agencies use them to build public awareness of nutrition and stimulate tourism.
More limited in scope than a business plan, the marketing plan documents how the organization will achieve
its strategic objectives through specific marketing strategies and tactics, with the customer as the starting point. It is also linked to the plans of other departments. Suppose a marketing plan calls for selling 200,000 units annually. The production department must gear up to make that many units, finance must arrange funding to cover the expenses, human resources must be ready to hire and train staff, and so on. Without the appropriate level of organizational support and resources, no marketing plan can succeed.
The most frequently cited shortcomings of current marketing plans, according to marketing executives, are
lack of realism, insufficient competitive analysis, and a short-run focus. (See “Marketing Memo: Marketing
Plan Criteria” for questions to ask in developing marketing plans.)
Most marketing plans cover one year in anywhere from 5 to 50 pages. Smaller businesses may create shorter or less formal marketing plans; corporations generally require highly structured documents. Every part of the plan must be described in considerable detail. Some companies post their marketing plan on an internal Web site so everyone can consult it and collaborate on changes. A marketing plan usually contains the following
sections.
• Executive summary and table of contents.
• Situation analysis. This section presents relevant background data on sales, costs, the market, competitors,
and the macroenvironment. How do we define the market, how big is it, and how fast is it growing?
What are the relevant trends and critical issues? Firms will use all this information to carry out a SWOT
analysis.
Marketing strategy. Here the marketing manager defines the mission, marketing and financial
objectives, and needs the market offering is intended to satisfy as well as its competitive positioning.
All this requires inputs from other areas, such as purchasing, manufacturing, sales, finance, and human
resources.
Marketing tactics. Here the marketing manager outlines the marketing activities that will be undertaken to
execute the marketing strategy.
- The product or service offering section describes the key attributes and benefits that will appeal to target customers.
- The pricing section specifies the general price range and how it might vary across different types of customers or channels, including any incentive or discount plans
- The channel section outlines the different forms of distribution, such as direct or indirect.
- The communications section usually offers high-level guidance about the general message and media strategy.
• Financial projections. Financial projections include a sales forecast, an expense forecast, and a break-even
analysis. On the revenue side is forecasted sales volume by month and product category, and on the expense
side the expected costs of marketing, broken down into finer categories. The break-even analysis estimates
how many units the firm must sell monthly (or how many years it will take) to offset its monthly fixed costs
and average per-unit variable costs.
A more complex method of estimating profit is risk analysis. Here we obtain three estimates
( optimistic, pessimistic, and most likely) for each uncertain variable affecting profitability, under an
assumed marketing environment and marketing strategy for the planning period. The computer simulates
possible outcomes and computes a distribution showing the range of possible rates of returns and their
probabilities.
Implementation controls. The last section outlines the controls for monitoring and adjusting implementation
of the plan. Typically, it spells out the goals and budget for each month or quarter so management can
review each period’s results and take corrective action as needed
The Role of Research
Marketers need up-to-date information about the environment, the competition, and the selected
market segments. Often, analysis of internal data is the starting point for assessing the current marketing situation, supplemented by marketing intelligence and research investigating the overall market, the competition, key issues, threats, and opportunities. As the plan is put into effect, marketers use research to measure progress toward objectives and identify areas for improvement. Finally, marketing research helps marketers learn more about their customers’ requirements, expectations, perceptions, satisfaction, and loyalty. Thus, the marketing plan should outline what marketing research will be conducted and when, as well as how the findings will be applied.
The Role of Relationships
Although the marketing plan shows how the company will establish and maintain profitable customer relationships, it also affects both internal and external relationships. First, it influences how marketing staff work with each other and with other departments to deliver value and satisfy customers. Second, it affects how the company works with suppliers, distributors, and partners to achieve the plan’s objectives. Third, it influences the company’s dealings with other stakeholders, including government regulators, the media, and the community
at large
From Marketing Plan to Marketing Action
Marketers start planning well in advance of the implementation date to allow time for marketing research, analysis, management review, and coordination between departments. As each action program begins, they monitor ongoing results, investigate any deviation from plans, and take corrective steps as needed. Some prepare contingency plans; marketers must be ready to update and adapt marketing plans at any time.
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