MARKETING PLAN

MARKETING PLAN












Objectives of the chapter:

	To understand the concept of marketing plan
	To study the contents of marketing plan
	To discuss the process of developing marketing strategy and plan

Synopsis of the chapter:
1.	The concept of marketing plan
2.	Features of marketing plan
3.	Contents of marketing plan
4.	Process of developing marketing strategy and plan

MEANING AND DEFINITION OF MARKETING PLAN

Arguably, the most important function of any business is marketing. To many people marketing just means selling, but it is far more than that. Making a product or providing a service is relatively straightforward. The hard part is ensuring that your potential customers are aware that you exist. It is essential, therefore, to prepare a detailed marketing plan - a plan of action.

Marketing is inherently simple; it's about targeting customers, finding out what they want and giving it to them at a price they want to pay. But it's not so easy. There are limitless ways to tackle marketing objectives and there's no formula for success.

The most important part of a business plan is the Marketing Plan. To keep one’s business on course this plan must be geared toward the business’s mission—its product and service lines, its markets, its financial situation and marketing/sales tactics.
A marketing plan outlines the specific actions which are intended to carry out to interest potential customers and clients and persuade them to buy the product and services offered. A marketing plan is a business document written for the purpose of describing the current market position of a business and its marketing strategy for the period covered by the marketing plan. Marketing plans usually have a life of from one to five years. The purpose of creating a marketing plan is to clearly show what steps will be undertaken to achieve the business' marketing objectives. The marketing plan includes information such as the product or service offered pricing, target market, competitors, marketing budget and promotional mix.

A marketing plan is a written assessment of the current marketplace and how a business intends to spend its marketing and advertising dollars in the future. It identifies customers and establishes how to sell a product or service to those customers. It identifies clear and actionable strategies for a marketing department. The plan is often used in conjunction with development or business plans in order to help a company achieve its growth potential.

Definitions:
“A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firms plan to reach its marketing objective.” – Marian Wood.

“Marketing plans are developed for individual products, lines, brands, channels, or customer groups. The marketing plan is one of the most important outputs of the marketing process.” - Philip Kotler.

FEATURES OF MARKETING PLAN

The important characteristics of marketing plan are discussed as follows:
1.	Continuous process:
Marketing planning is not one time activity. It is a continuous process. It starts with identifying marketing opportunities and then designing a suitable marketing strategy. Once the strategy is developed again the process continues with identifying marketing opportunity. As marketing conditions are always fluctuating, firm needs to monitor these changes continuously.
2.	Customer oriented:
All the marketing plans focus mainly on customer needs and their requirements. The marketing plans need to be customer oriented aiming at providing maximizing customer satisfaction. Marketing plans will be successful only if they are designed customer oriented.
3.	Written document:
Marketing plans are in form of written document. It should clearly specify the marketing objectives. Written form of marketing plan can be used as reference in future while carrying out marketing functions.
4.	 Two levels:
Marketing plans operate at two levels. i.e. long term and short term. Long term level is known as strategic level and short term level is tactical level. The strategic marketing plans include the target market and value proposition. Tactic marketing plans include product features, promotion, pricing, sales, channels and services.
5.	Marketing opportunities:
Marketing planning involves analysis of marketing environment. SWOT analysis identifies the market opportunities which can be grabbed by the firm. It also analyzes possible treats which the firm may have to face.
6.	Time period:
Marketing plans can be long term and short term. The marketing plans having duration up to one year are termed as short term plans whereas the duration of long term plans is one year to five years.
7.	Market conditions:
Marketing plans are drawn by taking into consideration the existing marketing conditions. As the conditions are changing, according to that the marketing plan will also change. As far as possible the marketers try to accommodate the changes in marketing conditions into their marketing plan.


8.	Team work:
The success of marketing plan depends on support from all the team members. Team work is essential for any marketing plan to be effective. Every member of the organization has to contribute to the planning and implementation of marketing plan.
CONTENTS OF MARKETING PLAN

Every marketing plan has to fit the needs and situation prevailing in the market. There are standard components which have to be included while designing the marketing plan. A marketing plan should always have following components:

1.	Situation Analysis:
Situation analysis mainly contains a market analysis i.e. SWOT analysis of the market. It analyses strengths and weaknesses of the firm as well as opportunities and threats possible in the market. It also includes competitive analysis. The market analysis will include a market forecast, segmentation, customer information, and market needs analysis. Situation analysis also includes collecting and analyzing the information regarding market situation, customer profile and descriptions of changes affecting the customers, competitors, and business climate.

2.	Marketing Strategy:

Strategy should include at least a mission statement, objectives, and focused strategy including market segment focus and product positioning. Marketing strategy should specify clearly the way of carrying on marketing functions of the firm.

3.	Sales Forecast:

This would include enough detail to track sales month by month and follow up on plan-vs.-actual analysis. Normally a plan will also include specific sales by product, by region or market segment, by channels, by manager responsibilities, and other elements. The forecast alone is a bare minimum.

4.	Target audience:

In order to reach the marketing goal it is critical to constantly keep in mind the people to whom who we are trying to sell. Effective marketing plan divides the public into identifiable marketing segments to which it can approach with appropriately designed appeals. Despite this, however, it should also be kept in mind that enterprise-wide information integration is critical to keeping a clearly identifiable business identity.

5.	Unique selling proposition (USP):

The USP is an old concept, but no less applicable than it has been for years. In order to sell the product in the vast ocean of like products, it is necessary to determine how that product is different, and how it stands above the rest. It is only after the company determines this difference and brought it to the market's attention then only it will be successful in selling efforts. Unfortunately, this is often not enough. Instead, the firm might have to identify different USPs that appeal to different market segments.

6.	Marketing Budget:

An important aspect of any marketing plan is budget. This section will help to determine your exact financial needs for thorough marketing and advertising of products. Marketing strategy is likely to be implemented in several phases. Hence, the budgetary requirements for each phase of marketing activities should be specified clearly. Firm should also offer a classification of advertising costs depending on which advertising media. This ought to include enough detail to track expenses month by month and follow up on plan-vs.-actual analysis. Normally a plan will also include specific sales tactics, programs, management responsibilities, promotion, and other elements. The expense budget is a bare minimum.

7.	Marketing goals and objectives:
Marketing plan should state clearly the marketing goal and objectives of the firm. No plans can be developed without setting objectives. Every business markets its products or services with certain goals and objectives in mind. While the ultimate objective of any marketing plan is to sell more products, there could also be other goals for marketing. For example, firm may want its target audience to view its products or services in a certain light as opposed to another. Firm may want its prospective customers to perceive its products as a necessity rather than a luxury item. Hence, marketing efforts will be aimed at such goals, which is why it is vital that marketing plan lists all these goals and objectives clearly. In addition to listing the marketing goals, it is also required to mention how firm is planning to achieve these goals through the marketing and promotional activities. Marketing objectives should be specific, measurable, achievable, and realistic and time bound.
8.	Marketing methodology:
Marketing pan need to determine how firm is going to accomplish the marketing goal and objectives. What tools will be used to reach these goals? Marketing methodology clearly defines the pathway to carry on the marketing activities.
9.	Market Segmentation:
The market audience is made up of a diverse group of people. Segmenting that audience and delivering brand messages, communications, and content is critical to engaging them. The content of marketing plan must be customized to each segment of audience. Otherwise it will be difficult to connect with people. Market segmentation will help the firm to spread messages, to raise brand awareness, and to boost business. Marketing plan should be clear about who are the target audience for business is. If the firm is planning to sell its products in different market segments, then a complete analysis of all the market segments should be available, as also customers’ profiles from each of these segments. What are the factors that define firm’s target market? Why will firm’s products appeal to its audience? These are two vital questions that should be answered by the market analysis.

10.	Product details:

A good marketing plan needs to have as detailed a product description as possible. Not only the types of products the firm is selling as well as their features and benefits, but also need to list the disadvantages and ways to counter these negatives. The brand name of products, as well as any safety instructions that need to be followed when using the products should also be specified. Other necessary information that needs to be mentioned in this section of marketing plan includes packaging information, warranties and guarantees that will be provided with the products, information relating to repair of damaged products, and also customer support information.

11.	Pricing details:

No marketing plan is complete without adequate information regarding the pricing of products and services. The pricing strategy of the products should be mentioned, as well as the logic behind the pricing. The firm needs to be clear why the pricing is competitive and how it will help to attract the customers. This section can also include information regarding discounts and rebates that firm may offer with your products and services. If the company plans to have annual sales or offer discounts based on seasonal events, then it needs to detail all this in marketing plan.

12.	Integration:

Content of marketing plan must be fully integrated into larger business marketing efforts. There is perhaps no better way to surround consumers with branded experiences than through an integrated marketing plan that includes both online and offline content marketing as a driver of conversations, sharing, and powerful word-of-mouth and brand loyalty.

DEVELOPING MARKETING STARTEGIES AND PLAN

Effective marketing starts with a considered, well-informed marketing strategy. A good marketing strategy helps to define vision, mission and business goals, and outlines the steps need to take to achieve these goals. Marketing strategy affects the way the business is, so it should be planned and developed in consultation with entire team. It is a wide-reaching and comprehensive strategic planning tool that:
•	describes the business and its products and services
•	explains the position and role of products and services in the market
•	profiles customers and competition
•	identifies the marketing tactics which will be used
•	allows building a marketing plan and measuring its effectiveness.
A marketing strategy sets the overall direction and goals for the overall marketing function, and is therefore different from a marketing plan, which outlines the specific actions which will be taken to implement the marketing strategy. The marketing strategy could be developed for the next few years, while the marketing plan usually describes tactics to be achieved in the current year. The marketing planning process involves both the development of objectives and specifications for how they will be accomplished.
Following are the steps involved in developing marketing planning:
1.	Analysis of internal marketing environment:

Marketing planning starts with analyzing marketing environment prevailing for the company. At this stage the company needs to identify business's strengths and weaknesses. The SW (strengths and weaknesses) analysis adopts methods such as marketing audit, market share analysis, cost- volume- profit analysis, consumer satisfaction index, brand equity index etc. USP of a product can be the example of strength, whereas lack of innovation can be the example of weakness.

2.	Analysis of external marketing environment:

The external market environment consists of political, social, economic, technological, legal environmental factors. These factors help in analyzing opportunities and threats from the market area. Opportunities and threats are factors outside the organization which are beyond the direct control of an organization. Festive season can be an example of opportunity to make maximum sales, whereas increasing FDI in a nation can be the example of threat to domestic players of that nation. This OT (opportunities and threats) analysis may include political stability, changing consumption pattern, lifestyle, liberalization, legal provisions and amendments, technical upgradation etc. This adopts methods like demand forecasting, FDI inflow, inflation rate, exchange rate, economic policies, budget, research studies etc.

3.	Marketing Assumptions:

A good marketing plan is based on deep customer understanding and knowledge, but it is not possible to know everything about the customer, so lot of different things are assumed about customer. For example:-
•	Target Buyer Assumptions - assumptions about who the target buyers are.
•	Messaging/Offering Assumptions - assumptions about what customers think are the most important features of product to be offered.

4.	Identifying business goals:
To develop the marketing strategy, first business goals have to be identified. So that it will be easy to define a set of marketing goals to support them. Business goals might include:
•	increasing awareness of firm’s products and services
•	selling more products from a certain supplier
•	reaching a new customer segment.

5.	Defining marketing goals and objectives:
After the business objectives are identified, firm has to define a set of specific marketing goals based on the business goals. These goals will guide the firm and its team and will help to benchmark success. Examples of marketing goals include increased market penetration (selling more existing products to existing customers) or market development (selling existing products to new target markets). These marketing goals could be long-term and might take a few years to successfully achieve. However, they should be clear and measurable and have time frames for achievement.

Firm has to make sure that overall strategies are also practical and measurable. A good marketing strategy will not be changed every year, but revised when the strategies have been achieved or your marketing goals have been met. Also, you it may be required to amend the strategy if the external market changes due to a new competitor or new technology, or if the products substantially change.
6.	Forecast the Expected Results:

Marketing managers have to forecast the expected results. They have to project the future numbers, characteristics, and trends in the target market. Without proper forecasting, the marketing plan could have unrealistic goals or fall short on what is promised to deliver.
•	Forecasting Customer Response - Marketing managers have to forecast the response that the average customers will have to marketing efforts. Without some idea how the marketing will be received, managers can't accurately plan the promotions.
•	Forecasting Marketing cost - To make the marketing plan stronger, accurate forecast of marketing cost is required to be done.
•	Forecasting the Market - To accurately forecast the market, marketing managers have to gain an intimate understanding of customers, their buying behavior, and tendencies.
•	Forecasting the Competition - Forecast of competition like - what they market, how they market, what incentives they use in their marketing can help to counter what they are doing.

7.	Research your market:
Research is an essential part of designing the marketing strategy. Firm has to collect the information about the market, such as its size, growth, social trends and demographics (population statistics such as age, gender and family type). It is important to keep an eye on the market so that the firm is aware of any changes over time, so the strategy remains relevant and targeted.

8.	Profile your potential customers:
The firm has to use its market research to develop a profile of the customers which they are targeting and should identify their needs. The profile will reveal their buying patterns, including how they buy, where they buy and what they buy. Again, regularly review trends so the firm doesn’t miss out on new opportunities or become irrelevant with the marketing message. While locating new customers, the firm has to make sure that the marketing strategy will also allow maintaining relationships with the existing customers.

9.	Profile your competitors:
Similarly, as part of the marketing strategy firm should also develop a profile of its competitors by identifying their products, supply chains, pricing and marketing tactics. This will be helpful in identifying firm’s competitive advantage - what sets the business apart from its competitors. The firm may also want to identify the strengths and weaknesses of its internal processes which will help to improve its own performance compared with competitors.

10.	Develop strategies to support your marketing goals:
The firm should list out its target markets and should devise a set of strategies to attract and retain them. An example goal could be to increase young people's awareness of company’s products. Then corresponding strategies could be to increase online social media presence by posting regular updates about the product on Twitter and Facebook, advertising in local magazines targeted to young people; and offering discounts for students.
11.	Using the '5 Ps of marketing':
The firm has to identify its tactical marketing mix by using the 5 Ps of marketing. If it can choose the right combination of marketing across product, price, promotion, place and people, then its marketing strategy is more likely to be a success.
12.	Arrangement of resources:
Operating an effective marketing plan requires arrangement of resources in people, money, and technology. This section of the plan details out the resources needed and through that the marketing budget.
13.	Implementation and Evaluation:
At this stage the marketing team is ready to actually start putting their plans into action. This may involve spending money on advertising, launching new products, interacting with potential new customers, opening new retail outlets etc.
14.	Review the performance:
The last section of the plan outlines controls that will be used to monitor progress.
Review the results for each period, may be each month or quarter, and determine if the plan is able to meet its objectives. If necessary some modifications can be done to make it more effective.
SUMMARY

From the above discussion it is clear that the marketing plan is the most important tool while framing the overall marketing strategy of the organization. While designing the marketing strategy the firm has to see that it contains all the essential elements so that it can be implemented successfully. Developing marketing strategy or plan is a lengthy process for the firm. But it has to be done very carefully as effectively designed strategy can bring the desired results to the organization. While developing the marketing strategy SWOT analysis is must. Without knowing strengths, weaknesses, opportunities and threats it is really difficult to build an effective marketing strategy.
SUGGESTED QUESTIONS

1.	What is marketing plan? Discuss the important features of marketing plan.
2.	State and explain the contents of marketing plan.
3.	State and explain the steps involved in marketing planning.
4.	Explain the following concepts:
i.	Marketing plan
ii.	Effective marketing plan
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