The
marketing plan is a strategy document that aims at guiding the marketing
endeavours of an organisation. Comprehensive marketing plans are very important
in assuring the success of the organisation as far as the achievement of set
objectives is concerned (Cravens and Nigel, 2009). This is a crucial component
of the overall strategy of the organisation. It emphasises the approaches that
are to be taken in bringing the products on offer to the customers. Marketing
plans combine both the strategic and tactical elements of marketing operations
(Keegan, 2002). The marketing plan takes consideration of the current market
situations, evolving customer needs and perceptions, marketing objectives,
environmental audit and budgetary implications of the plan to be implemented
(Woof, 2011). This paper evaluates the role, structure and elements of
marketing plans. It also clarifies the relationship between marketing plans,
marketing strategy and business plans in relation to common misconceptions that
relate to the same.
The
marketing plan serves a number of purposes in the organisation. To begin with,
it enables an assessment of the marketing programs in place and their
effectiveness. An integral part of the marketing planning process involves the
assessment of the current situation and this provides the organisation with the
opportunity to focus on their strategic positioning and how any weaknesses
identified can be dealt with (Kotler and Lane, 2006). The situation analysis
also focuses on competitor activity, market conditions in the macro environment
as well as changing customer perceptions (Strauss, 2008). The marketing plan
therefore provides organisations with the opportunity to evaluate the reality
of their situations and this is crucial in ensuring that the strategies being
implemented continue to be relevant to the market and to the organisations
themselves.
Secondly, the marketing plan helps in
assuring the future of the organisation by coming up with workable programs
that would see the objectives set achieved. The formation of marketing
objectives takes into considerations the outcome of the environmental audit
undertaken in step one and is often derived as a means to fix any discrepancies
noted with an aim to ensuring the achievement of the overall organisation’s
goals (Strauss, 2008). Planning is crucial to the success of any organisation
and this makes the marketing plan very important. Even though alterations may
be needed in the course of implementation, it is imperative that a workable
plan be the basis of initial implementation.
The marketing plan goes beyond strategy
formulation and delves into the implementation aspects where tactical
strategies are formed to ensure the achievement of the objectives set. The
marketing managers at this point break down the plan and come up with specific
activities whose effect is aimed at achieving the overall objectives (Clow,
2010). Focus on the elements of the marketing mix is very crucial at this stage
as it aligns on aspects of the organisation and its products to the strategic
direction laid out in the marketing plan. Of the greatest importance is the
promotional mix where the elements are broken down and details provided on how
such elements are to be implemented. The marketing plan covers details in a
manner that leaves little room for doubt and this is important in guiding the
marketing process for the relevant duration (Strauss, 2008).
To ensure that the activities are
carried out in accordance to plan, the marketing plan provides yardsticks that
help in giving the signals needed to determine whether the organisation is on
the right track. It also aims to ensure that there is a balanced approach in
the marketing process by providing a budget allocating specific amounts to the
elements of the promotional mix. These controls are further complemented by the
establishment of responsibility lines, activity schedules, introduction of
targets, and mechanisms for review whenever there is need to do so.
The marketing plan can therefore be said
to be both strategic and tactical. It spans from the formulation of overall
strategies to the generation of operational strategies that are expected to
ensure that the set strategies are implemented (Hill, Jones and Galvin, 2004).
For instance, strategic functions include the situation audit and the
formulation of marketing objectives while the tactical functions include the
determination of the elements of the promotional mix to be used, the
establishment of yardsticks, determination of budgetary allocations and the
establishment of responsibility lines among others (Strauss, 2008).
While
analysts argue that the structure of marketing plans is not critical it has
been noted that many marketing plans tend to follow a similar structure (Grant,
2007). A typical marketing plan is separated into six sections. The first
section deals with the situation analysis while the second section lists and
evaluates the marketing objectives for the duration of the marketing plan
(Blythe, 2010). The third section makes mention of the elements of the
marketing mix and how they are expected to contribute to the marketing
objectives mentioned in section 2 (Blythe, 2010). In section 4, focus in
channelled towards the elements of the promotional mix and this is followed by
the control and management section where activity schedules, budgetary
allocations and other control elements are considered (Blythe, 2010). The final
schedule deals with mechanisms for measurement of progress and review of the
same.
The variations from this structure only
tend to be superficial and in most cases only done to satisfy the preferences
of the managers in the various organisations. For instance, section one which
deals with situation analysis can easily be separated into two sections where
one evaluates the marketing programs and the internal environment while the
other examines the external environment where customer characteristics,
competitor activities and wider environmental factors are factored in (Clow,
2010). Similarly, many organisations tend to have the budget stand out on their
own while other elements in control, measurement and review are put together
under one section. A more common approach is also the combination of section 3
and 4 where the elements of the marketing mix are all considered together
(Strauss, 2008). Other marketing plans could also introduce an additional
section between section 2 and 3 where opportunity analysis is done before the
marketing objectives are listed and evaluated (Blythe, 2008). Many other
marketing plans tend to provide an elaborate executive summary that enables the
evaluation of the strength of the marketing plan at a glance where all
important points are highlighted in an easy to read format. These differences
mostly have the effect of only altering the appearance of the marketing plans
and not the content of the same.
As
has been mentioned above, marketing plans tend to have certain key elements:
situation analysis, creation and evaluation of marketing objectives, generation
of marketing tactics along the marketing mix frameworks, establishment of
mechanisms for control and management, and measurement and review provisions
(Homburg, 2009).
The situation analysis considers the
current marketing activities and their impact on the overall goals of the
organisation. It also entails an overview of the current market conditions.
Under the situation analysis, the goings on in the macro environment as well as
in the industry is noted. The internal environment of the organisation is also
considered where new capabilities are taken into account. Among the frameworks
used for the situation analysis include the PESTEL model, the SWOT analysis and
the GAP analysis (Mullins, Walker and Harper Boyd Jr., 2009). Any assumptions
made during the analysis are also stated for the avoidance of doubt. It is also
in the situation analysis that managers evaluate the situation and determine
the opportunities arising from changing situations. Situation analysis helps in
identifying the opportunities that need to be maximised as well as weaknesses that
need to be sealed (Mullins, Walker and Harper Boyd Jr., 2009). The main sources
of information in this case could be competitors, customers and employees.
Secondary sources may include current journals and professional publications.
The determination of marketing
objectives is an exercise that factors in a number of features. To begin with,
market segmentation and customer targeting are done. The marketing plan needs
to be clear on who the organisation wishes to target. The wisdom of targeting
is based on the general assumptions that 80% of the revenues of the
organisation is derived from 20% of the market; and this makes it imperative
that marketing efforts be channelled towards the 20% segment in order to
optimise on the marketing efforts (Kotler, 2010). The determination should be
strategic. The marketing objectives also factor in the market positioning and
the brand image that the organisation wishes to project. Branding is an
integral part of the marketing process and it plays a special in establishing
relationships between the products and the consumers. Assumptions used are also
made clear in the section (Grant, 2007). The determination of objectives helps
in guiding the plan to success. SMART objectives lead to the success of the
entire organisation. Managers need to draw from their intellect in order to
come up with actionable objectives.
In the outlining of marketing tactics,
the marketing plan outlines the specific measures that are to be taken in order
to realise the objectives set. Focus is mostly on the elements of the marketing
mix where price, product, place and promotion are outlined. The importance of
focusing on all the elements of the marketing mix is brought out by the need to
ensure that there is synergy in the composition of the elements and this
ensures greater success. Elements of the promotion mix which include
advertising, direct marketing, personal selling, e-marketing, and sales
promotions are also highlighted and their mode of implementation accorded
attention (Mullins, 2010). In many cases, the promotional mix forms the bulk of
the implementation of the marketing plan and this informs the erroneous
conception that many have in regarding marketing plans as promotional plans.
The implementation phase also focuses on
management and control. In this element, the managers evaluate the resources
needed and allocate them to the plan. Resources in this case may range from
time, human resources, office equipment and finances (Mullins, 2010). It is
also under this element that the budgetary allocations are made. Budgets are
important tools of control as they in many cases determine to what extent
certain activities can be implemented. Also crucial in this aspect is the
implementation schedule which allocates time to the different elements. The
control and management element also outlines duties of various officers and
establishes responsibility lines in a move aimed at ensuring that operational
hiccups are resolved swiftly.
A good marketing plan provides for ways
of measuring progress and alteration of the overall plan where need arises
(Clow, 2010). The review and measurement section provides targets and
milestones to provide early signals in case there is need to review the entire
plan. It is imperative that such mechanisms be put in place to minimise on
wastage of resources and greater involvement in a marketing plan where it not
likely to yield the desired results.
Each
element of the marketing plan is crucial towards the generation of a comprehensive
and workable plan. The situation analysis provides the background where current
marketing activities are evaluated. It then compares such activities to
prevailing conditions and generates information that is crucial in determining
whether or not current marketing programs should be used in future and to what
extent if so. The situation analysis therefore informs the managers on the
appropriate strategies to be used. Without a proper situation analysis, the
objectives set may prove to be unrealistic (Clow, 2010).
Marketing objectives help in guiding the
rest of the marketing plan and they form the basis on which all other elements
are generated. The implementation plans as well as controls are all based on
set objectives. The implementation elements (marketing mix, control and
management) provide the means through which the marketing plan can be put into
effect (Mullins, 2010). Without them, the plan remains just a plan. All the
planning phases must culminate into the implementation phase for any strategy
to work and this therefore makes these elements very critical to the marketing
plan. Mechanisms for measurement and review play the role of providing timely
warning signs whenever there are substantial deviations from the main plan
(Mullins, 2010). They measure progress and are therefore important in ensuring
that corrective mechanisms are taken in time to ensure that the original
objectives are achieved.
As can be seen, the elements of the
marketing plan play a complimentary role and contribute greatly towards the
achievement of the overall objectives. Without any of them, it becomes
difficult to achieve the goals set.
Marketing
plans are in many cases misconceived to be synonymous to business plans. This
misconception is often linked to the fact that both plans deal with how
organisations intend to ensure that their objectives are met in the market.
They both contain several elements in common including environmental audit, the
marketing mix, and others (Grant, 2007). However, it must be appreciated that
whereas business plans are developed to justify the viability of a business
idea, marketing plans can only exist where such businesses are already in
operation (Mullins, 2010). Secondly, marketing plans only factor in elements
dealing with the marketing function while business plans focus on all other
aspect of the organisation; including marketing.
Another misconception relates to the
marketing plan itself where it tends to be oversimplified with many perceiving
it to be a mere promotional plan. Elements of the promotional mix tend to form
the bulk of the implementation section of the marketing plan by virtue of the
fact that they are very useful in creating awareness of the products in the
market (Kotler, 2010). However, it must be appreciated that marketing plans are
both strategic and tactical documents that consider all elements of the
marketing mix in a manner designed to ensure all goals are met.
Marketing
plans help in guiding the marketing endeavours of organisations. They play a
crucial role in aligning the marketing activities of organisations to the
overall strategies of the organisation. Marketing plans are always structured
in a manner that ensures that a critical analysis of the internal as well as
the external environments of the organisation is done. This analysis culminates
in the identification of loopholes to be sealed and opportunities to be
maximised. Objectives are then set to define the market positioning, customer
segmentation and other relevant objectives. The determination of the marketing
mix elements to be implemented marks the beginning of the implementation phase.
This, together with the determination of resources, time schedules and
budgetary allocations constitute the sections that put the plan into action.
Marketing plans also contain mechanisms for control to ensure that any
anomalies are identified and corrected in good time. Marketing plans are
structured in a manner that makes all the elements of the marketing plan very
important and critical towards the realisation of a workable plan. It is
therefore important that all elements be given due attention. Any laxity in
considering any of the elements can easily lead to the creation of a weak
marketing plan: one which fails to deliver on the objectives set.
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