REPUBLIC OF THE PHILLIPPINES

NORTHWEST SAMAR STATE UNIVERSITY

MAIN CAMPUS, CALBAYOG CITY

MKTG. 13 (Strategic Marketing Management)

TOPIC: CHAPTER 3: THE MARKETING PLAN
INSTRUCTOR: Dr. Leo Jesus M. Lacaba
and Mr. Joseph Emil A. David
REPORTERS: Bantillan, Jude
Baito, Rosie
Bartolaban, Marian
Carpio, Gladys
Cajutay, Jeson
Cangayao, Jesso
COURSE AND SECTION: BSBA-4A and BSBA-4B

CHAPTER 3:
THE MARKETING PLAN
 According to kotler – marketing plan is a written document that summarizes
what the marketer has learned about the market place and indicates how the firm
plans to reach its marketing objectives. It contains tactical guidelines for the
marketing program and financial allocations over the planning period.
Marketing Plan
 Is the focal point of all business ventures because it describes how you plan to
attract and retain customers, the most crucial aspect of a business.
 The marketing plan is essential to any successful business.
– By Mary Bellis
Advantage of a marketing plan
• Identifies needs and wants of consumers
• Determines demand for product
• Aids in design of products that full fill consumers needs
• Outlines measures for generating the cash for daily operation, to repay debts
and to turn a profit
• Identifies competitors and analyzes your products of firm’s competitive
advantage
• Identifies new product areas
• Identifies new and/or potential costumers
• Allows for test to see if strategies are giving the desired result

Disadvantage of a marketing plan

• Creates unrealistic financial projections if information is interpreted incorrectly
• Lack of marketing research
• Lack of budget
Nature of Planning
Planning involves identifying the firm’s objectives and then mapping out a series
of moves, within the firm’s resource capabilities, that will make passible the attainment
of these objectives.
Business firms prepare for different period of time, but the annual plan is the
most important. It is a very clear presentation of marketing mix decisions made for the
coming year.
Business condition are constantly changing. Proper planning enables a firm to
anticipate and prepare for necessary changes, rather than to simply adapt to changes
after they have taken place.
A formal written plan makes ideas concrete. Better coordination is possible when
participants have written plan to prefer to. Planning is essentially forward-looking.
Two Purposes of Planning
Effective planning reduces the uncertainly surrounding business conditions and
improves chances of successful implementations. The purpose of planning then, are
both protective and affirmative.
By reducing the uncertainly regarding future business conditions, the firm is
productive from risks consequent to the selection of an alternatives, secondly, the
affirmative purpose is to achieve financial success at a level higher than would
otherwise be possible without a formal plan.
Fear of Planning
Most business managers today agree that formal planning is important. Yet many do
not go through a conscious planning process to come up with a written plan. Reinharth,
shapiro, and kallman identify several reasons for this fear as follows:
• It is hard to plan (and I might not do a good job).
• It puts constraints on my actions (if it’s not in the plan, I can’t do it).
• It forces me to make decisions (and that makes me vulnerable).
• Making a plan provides a yardstick for critique and evaluation (and I
might not measure it).
• Planning brings direction and organization out of chaos (and
removes a very good excuse).
• Planning brings its own chaos and distraction (when managers
resist or choose not to follow the plan).
The G-STIC Framework for Market Planning
An offering’s marketing plan delineates the specific activities by which an offering
creates market value.
Offering’s business model – is the core of marketing plan which articulates the
strategy and tactics of the offering to outline the logic of the value-creation process and
define the specifics of the market offering.
 The G-STIC Framework for Market Planning and Analysis

 Goal – identifies the ultimate criterion for success that guides all company
marketing activities.
A goal involves two decisions:
• Identifying the focus of the company’s actions
• Defining the specific quantitative and temporal performance benchmarks
to be achieved
 Strategy – outlines the logic of the company’s value-creation model.
Strategy involves two decisions:
• Identifying the target market
• Developing the offering’s value proposition
Target Market Involves Identifying Five Key Factors (The Five Cs):
• Customers whose needs the company’s offering aims to fulfill
• Company managing the offering
• Collaborators working with the company on this offering
• Competitors with offerings that target the same customers
• The relevant context in which the company operates
• Value proposition – defines the value that an offering aims to create for the
relevant participants in the market— target customers, the company, and its
collaborators.
• Development of a value proposition – involves the development of a
positioning that singles out the most important aspect(s) of the offering’s value
proposition to create a distinct image of the offering in customers’ minds.
 Tactics – defines the key aspects of the company’s offering (often
referred to as the marketing mix):
 Product
 Service
 Brand
 Price
 Incentives
 Communication
 Distribution
 Implementation – outlines the logistics of executing the company’s
strategy and tactics.
Implementation involves three key components:
• defining the business infrastructure
 • Designing business processes
• Setting the implementation schedule
 Control – defines criteria for evaluating the company’s goal progress.
Control involves two key processes:
• evaluating the company’s progress toward its goal
• analyzing the changes in the environment in which the company operates
The G-STIC Action-Planning Flowchart

Setting a Goal
Setting a goal involves two decisions:
• Identifying the focus of the company’s actions
• Defining the specific performance benchmarks to be achieved
Goal focus – identifies the key criterion for a company’s success; it is the metric
describing the desired outcome.
Two types of goals:
• Monetary goals – involve monetary outcomes and typically focus
on maximizing net income, earnings per share, and return on
investment.
• Strategic goals – involve nonmonetary outcomes that are of
strategic importance to the company.
Performance Benchmarks
Two types of performance benchmarks:
• Quantitative benchmarks– define the specific milestones to be achieved
by the company with respect to its focal goal.
• Temporal benchmarks– identify the time frame for achieving a particular
milestone.
Market objectives
Different types of market objectives:
• Customer objectives – aim to elicit changes in the behavior of
target customers (e.g., Increasing purchase frequency, switching
from a competitive product, or making a first-time purchase in a
 product category) that will enable the company to achieve its
ultimate goal.
• Collaborator objectives – aim to elicit changes in the behavior of
the company’s collaborators, such as providing greater promotional
support, better pricing terms, greater systems integration, and
extended distribution coverage.
• Company (internal) objectives – aim to elicit changes in the
company’s own actions, such as improving product and service
quality, reducing the cost of goods sold, improving the effectiveness
of the company’s marketing actions, and streamlining research-
and-development costs.
• Competitive objectives – aim to change the behavior of the
company’s competitors.
• Context objectives – are less common and usually implemented
by larger companies that have the resources to implement changes
in the economic, business, technological, sociocultural, regulatory,
and/or physical context in which the company operates.
Market objectives – is important because without a change in the behavior of the
relevant market entities, the company’s ultimate goal is unlikely to be achieved. A
customer-specific objective might involve increasing market share by 10% by the end of
the fourth quarter. A collaborator-related objective might involve securing 45% of the
distribution outlets by the end of the fourth quarter.
 Defining the implementation
Implementation involves three key components:
• Defining the business infrastructure
• Designing business processes
• Setting the implementation schedule.
Business infrastructure – the business infrastructure reflects the organizational
structure and the relationship among relevant entities involved in creating and managing
the offering.
 Business processes
There are three common types of implementation processes:
• Market planning – company’s goal(s), developing the strategy and tactics
for achieving that goal, defining the implementation plan, and identifying a
set of control measures to monitor goal progress.
• Resource management – involves activities focused on acquiring and
managing human resources (e.g., Recruiting, evaluation, compensation,
and professional development), functional resources (e.g., Manufacturing
capacity), and financial resources required for the implementation of a
given offering.
• Marketing mix management – involves activities focused on managing
the marketing tactics.
Implementation schedule – the process of setting an implementation schedule
involves deciding on the timing and the optimal sequence in which individual tasks
should be performed to ensure effective and cost-efficient completion of the project.
Identifying controls
Marketing controls serve two key functions:
 • To evaluate the company’s progress toward its goal
• Analyze the changes in the environment in which the company
operates.
 Performance evaluation – performance evaluation involves evaluating the
outcomes of the company’s actions vis-à-vis its goals.
 Environmental analysis – environmental analysis involves monitoring the
environment in which the company operates to ensure that the company’s action plan
remains optimal, and adjusting the action plan as necessary to take advantage of
new opportunities
Writing a marketing plan – marketing plan can be formalized as a written document
that effectively communicates the proposed course of action to relevant stakeholders.
Market planning is the process of identifying a goal and developing a course of
action to achieve this goal. The marketing plan is the tangible outcome of a company’s
market planning process that documents an already identified goal and the decided-on
course of action.
Format of the Marketing Plan
PRODUCT:
I. SITUATION ANALYSIS
BACKGROUND:

OPPORTUNITIES & THREATS:

Opportunities:
Threats:

COMPANY STRENGTHS AND WEAKNESSES

Strengths:
Weaknesses:

II. OBJECTIVES
A.
B.
III. MARKETING PROGRAM
TARGET MARKET
MARKETING MIX

The Marketing Plan

The executive summary is the “elevator pitch” for the marketing plan—a
streamlined and succinct overview of the company’s goal and the proposed course of
action.
 The situation analysis section of the marketing plan aims to provide an overall
evaluation of the company and the environment in which it operates, as well as
identify the markets in which it will compete.
The situation analysis involves two sections:
• The company overview, which outlines the company’s strategic goals and
current progress toward these goals, its core competencies and strategic
assets, and its portfolio of offerings
• The market overview, which outlines markets in which the company
operates and/or could potentially target.
 • The G-STIC section is the core of the marketing plan.
(1) thegoal the company aims to achieve
(2) the offering's strategy, which defines its target market and value proposition
(3) the offering's tactics which define the product, service, brand, price,
incentives, communication, and distribution aspects of the offering
(4) the implementation aspects of executing an offering’s strategy and tactics
(5) control procedures employed in evaluating the company’s performance
and analyzing the environment in which it operates
 Exhibits help streamline the logic of the marketing plan by separating the less
important and/or more technical aspects of the plan into a distinct section in the
form of tables, charts, and appendices.
Updating the marketing plan – once developed, marketing plans need updating in
order to remain relevant.
There are two common reasons to consider updating the marketing plan:
(1) The presence of a performance gap reflecting a discrepancy between the company’s
expected and desired performance
(2) Changes in the target market.
 Performance gaps – involve a discrepancy between a company’s desired and
actual performance on a key metric, such as net income, profit margins, and
sales revenues.
Performance gaps typically stem from three main sources:
• Inaccurate information/assumptions – when developing the marketing plan,
managers rarely have all the necessary information at their fingertips.
• Logic flaws – another common source of performance gaps is the presence of
logic flaws in the design of the marketing plan.
• Implementation errors – performance gaps can also stem from implementation
errors, which involve poor execution of an otherwise viable marketing plan.