Marketing
plans are important instruments in any organisation as they help in actualising
their overall strategies. Products and services must be communicated to the
market for demand to be created and it is the function of marketing to ensure
that this is done (Luther, 2011). Marketing plans provide plans for these
marketing efforts in any given market. As opposed to business plans which are
drawn at the strategic levels, marketing planning is a business level strategy
function which mainly deals with the marketing aspect of the business (Cohen,
2006). The process of marketing planning is such that it draws to match the
organisation’s strengths to the opportunities in the environment as presented
by changing tastes and approaches to communication.
The
elements of marketing plans help in thorough synthesis of internal and external
factors in a manner that paints a clear picture of the organisation’s strategic
position in the market. The understanding of this positioning is then followed
by the generation of appropriate marketing strategies with such strategies
often factoring in all the components of the marketing mix (Cohen, 2005). This
broad approach ensures that the marketing strategies are balanced and likely to
lead to the success of organisations. Marketing plans are therefore vital to
the success of organisations.
The
main role of the marketing plan is to facilitate the creation of workable
marketing strategies that can lead to the success of the organisation. Good
marketing strategies should be made only after a thorough situation analysis
has been done both on the internal and external environments (Developing a
Marketing Plan, 2011). The internal diagnosis focuses on the strengths and
weaknesses of the organisation and aims at highlighting the strengths while taking
actions that ensure that the organisational weaknesses do not render the
organisation vulnerable to external competition. The external audit on the
other hand evaluates factors that are outside the organisation. They can be
reviewed at both the macro and micro levels. The micro level focuses on the
specific industry in which the organisation operates while the macro level
looks at factors that affect whole economies (Lincoln and Frontczak, 2008).
These situation analyses play a crucial role in understanding the strategic
position of the organisation and it in turn ensure that derived plans can
succeed under the circumstances. Marketing plans therefore act as a rudder for
ensuring that marketing strategies are created and implemented in a manner that
assures success.
Marketing
plans differ from business plans in that they constitute instruments for
different levels of strategies in the organisation. Business plans are used at
the strategic management where strategies are formulated at the corporate level.
Strategies at this point determine the kind of business to be done, the vision
and mission of the organisation, as well as the overall objectives of the
organisation in the short and long terms (John and Martin, 1984). In other
words, the business plans defines the organisations. Marketing plans are drawn
at the functional level of the organisation. The marketing strategies and
objectives adopted are fine-tuned to correspond with the overall organisational
objectives. The business plans look at the approach to marketing as an
important component of the plan while marketing plans are entirely dedicated
towards the creation of marketing strategies and the monitoring of the same to
ensure implementation is in line with plans (Buttell, 2009). Marketing plans therefore
operationalize generic strategies as contained in the organisation’s business
plans.
In
addition to the nature and purpose of objectives contained, there is also a
fundamental difference in the financial element in business plans and marketing
plans. Business plans contain financial forecasts that are all inclusive and
which extend from product development, other investments and even operational
expenses (Adler, 1960). On the other hand, financial projections on the
marketing plans only include elements that are directly related to the
marketing strategies. The typical items in financial projections in marketing
plans include sales revenues and costs directly attributed to marketing such as
advertisements, promotional campaign budgets, cost of hiring additional
marketers, and so on (Frith, 2010). Marketing plans are therefore a component
of business plans.
The
composition of the marketing plan is strategic in that it focuses on not only
creating strategies that are consistent with overall organisational goals; but
also those that are workable and relatively easy to implement. The elements of
marketing plans include the internal and external environment audits, marketing
objectives, marketing strategies for the organisation, financial forecasts of
revenues and cost of marketing programs, plans for implementation and control
of the marketing programs (Kotler, 1970). These elements of the marketing plan
relate with each other in a manner that creates synergy and results in the
overall success of the organisation.
The
situation analysis helps in determining the strategic positioning of the
organisation and this is crucial in the generation of marketing strategies that
can ensure that positional advantages identified are exploited appropriately.
Three elements in the situation analysis have been identified: the macro
environment, the micro environment and the internal environment (Curnow, 2007).
The macro environment refers to factors that affect entire economies, countries
and regions. They are factors that are beyond the control of the organisation
and their analysis culminates into the identification of opportunities and
threats. However, this analysis differs from that conducted at the business
plan level in that it concentrates on factors that are more relevant to the
marketing functions. One of the most popular models for analysing the external
environment is the PESTEL model which categorises the factors as political,
legal, environmental, economic, technological and social (Considine, 2011).
Factors such as consumer attitudes and approaches to communication are among
the most important elements in this analysis. The micro environment refers to
factors within the industry in which the business operates. Focus on these factors
is crucial in that it makes organisations aware of competitor actions and
informs them of strategies that must be adopted to ensure that their endeavours
are more successful (Bogan, 2010). It is common knowledge that a business’
marketing programs are bound to fail if it fails to at least match up to
competitor strategies in terms of effectiveness. The focus on all the six
elements as well as the competitor actions ensures that all relevant factors
have been factored in and that the resultant strategies are founded on
comprehensive and accurate facts.
Internal
environment analysis is useful in outlining the internal strengths and
weaknesses of the organisation. Strengths are those factors that could give an
organisation a competitive edge in the market. They could include tangible as
well as intangible resources which should be exploited through appropriate
marketing strategies (Taghian, 2010). For instance, an organisation with
excellent payment technologies could use it to position itself as the epitome
of data security in the market. Weaknesses on the other hand are factors that
may potentially put an organisation at a disadvantage. They are factors that
should either be eliminated or their impacts minimised through appropriate
strategies (Luther, 2011). For instance, an organisation with poor distribution
networks could create marketing strategies that create demand for delivery
services and thereby downplay its poor distribution network. These strengths
and weaknesses form an integral part of the SWOT model.
The
SWOT analysis model is an analytical tool whose importance in marketing plans
cannot be downplayed. It summarises strengths, weaknesses, opportunities and
threats adopted from the situational analyses. This model helps in highlighting
the main situational factors in a manner that promotes clarity in the
formulation of strategies (Luther, 2011). The matching of strengths to
opportunities as well as the use of the same strengths to create opportunities
out of the threats is the ultimate goal of marketing strategists. The SWOT
model therefore plays an important role in ensuring that the best strategies
are adopted.
The
marketing objectives introduce a directional impetus to the marketing plan and
it outlines the results that should be achieved within a given time. Objectives
are useful in determining the extent to which implementation can be said to be successful.
Objectives must be SMART: specific, measurable, achievable, realistic and
time-bound (Lincoln and Frontczak, 2008). In most marketing plans, the time
element stretches from 1-3 years (Buttell, 2009). There must also be a ‘fit’
between the marketing objectives and the overall organisational objectives.
This is because the marketing plan’s main aim is to operationalize the overall
business strategies and facilitate the achievement of the same. The marketing
objectives therefore renew focus on the functional nature of strategies
involved in the generation of marketing plans.
Marketing
strategies outline approaches that are to be adopted to deliver on the
marketing objectives set. One of the first steps is the determination of the
target audience. This determination involves the factoring of research findings
on the preferences and habits of such market segments and a subsequent determination
of marketing strategies that would be most effective in reaching out to them
(Curnow, 2007). The generation of marketing strategies factors in the elements
of the marketing mix which include price, place, product, promotion, process,
people and physical evidence. Promotion strategies tend to be the core
component of the marketing plans as it is they that highlight the approaches
that the organisation uses to communicate about the products to the target
markets. The elements of the promotion mix such as advertising, personal
selling, direct marketing, viral marketing and others are factored in depending
on the identified habits and preferences of the target market (Frith, 2010).
These marketing strategies not only need to be strategic and creative but also
realistic in consideration of the environmental factors for them to deliver on
the desired outcomes.
The
financial forecasts play an important role in the marketing plans as they help
in determining whether the plans being embarked on would provide net benefits.
One main principle in the generation of marketing strategies is that the same
should be valuable and this implies that the cost of implementing the same
should be lower than the anticipated benefits (Considine, 2001). This element
of the plan estimates expected revenues attributable to the plans and weighs
them against the costs arising from the same plan. The financial forecasts
therefore provide a rationale for the implementation of the business plan.
The
monitoring and control sections of the marketing plans play the role of
ensuring that the implementation is smooth and that any teething problems are
resolved swiftly to avoid impeding the overall plan. The control mechanisms are
put in place by establishing metrics that act as indicators to show whether
projections are likely to be met. Any deviations from the expected outcomes
triggers diagnoses which in turn lead to corrective actions aimed at ensuring
that the objectives are met (Luther, 2011). The monitoring and control
functions also help in triggering change of plans in the event factors within
and without the organisation make it impossible to implement the original plans
(Bogan, 2010). They also research on outcomes and reasons behind the same with
an aim of ensuring that codes of best practice are established for the benefit
of future marketing campaigns.
Marketing
plan assumptions help provide the basis for the strategies proposed and the
projections made. Assumptions are part of every strategic decision making
process. These assumptions must be key and relevant to the subject matter. In
other words, they must be factors that would significantly impact the business
negatively or positively if any of the factors were to shift dramatically
(Taghian, 2010). Given that the marketing plans operationalize the business
plans, one of the main assumptions is that there will be no significant change
in the strategic direction of the organisation. Any significant change would
render the marketing plan ineffective or even obsolete. Most of the other
assumptions relate to the external environment where it is assumed that there
will be no significant deviation from the projections made within the duration
of the marketing plan (Cohen, 2006). For instance, marketing plans are often
made in the assumption that economic conditions would remain the same or grow
within the parameters stipulated by major economic authorities in the relevant
markets. A significant shift such as the occurrence of an unanticipated
economic recession would certainly call for the review of the marketing
strategies instituted (Developing a Marketing Plan, 2011). Factors such as
political stability also tend to feature in the list of key assumptions with
political upheavals often rendering the marketing strategies ineffective.
Assumptions must therefore be factored in to qualify the plans and trigger
reactionary actions in the event that any of them fail to hold true.
Marketing
plans are functional plans that aim at achieving the organisational strategies
set out in the business plans. Marketing plans contain marketing strategies
that are derived after factoring in findings on the strategic position of the
organisation in the markets as determined in the situation analysis (Buttell,
2009). The marketing plans also outline the objectives to be followed as well
as financial projections that are necessary to provide a rationale for the
implementation of the plans. In addition to these, marketing plans contain
mechanisms for control and monitoring to ensure that implementation is smooth
and objectives are met as intended (Bogan, 2010). Marketing plans are very
important tools in business in the sense that they inform objectivity in the
approaches to marketing in a manner that raises chances of success. Their
comprehensiveness also helps in ensuring that they complement the overall
organisational strategies. Even though they are formed at the functional level
in the organisation, marketing plans play a crucial role in ensuring that the
whole organisation is successful.
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