UNIT 1

MARKETING PLAN AND

MANAGEMENT

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 CONTENTS
 Key concepts
 Key concepts
 Marketing philosophies
 Marketing mix
 Marketing plan

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Marketing Defined

Process by which individuals

and groups obtain what they
need and want through
creating and exchanging
products and value with
others.

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 MARKETING?
Simply put: Marketing is the delivery
of customer satisfaction at a profit.
Goals: Attract new customers by
promising superior value and keep
and grow current customers by
delivering satisfaction.

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MARKETING?

Marketing?

Marketing is a social and

managerial process by which
individuals and groups obtain
what they need and want
through creating and
exchanging products and
value with others
Philip Kotler 5
Where is the value of a product found?

In the
customer’s
mind!!

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 Things to remember
 Customer buy benefits
 Value of the product is in the customer’s
head
 Customers are different with different
needs, wants & taste. Therefore, products
values are different

Use the customer’s language

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 ACTIVITY (15 mins)
 How do you market yourself ????

Imagine your owned situations:

1. To impress your business partner
2. To impress your customers

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 MARKETING
PHILOSOPHIES

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Marketing Philosophies

Evolution of marketing orientation

Societal
Production Product Selling Marketing Marketing
orientation orientation orientation orientation
Orientation

1930 1960 1980 Time

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PRODUCTION ORIENTATION
 Environment:
 Beginning of the industrial revolution (1869 – 1930)
 Companies be able to reduce cost so that they are affordable by
many consumers
 Output was limited and there was excess demand
 Philosophy: Consumers will favor products that are available and
highly affordable
 Focus: Improving production and distribution efficiency
 Disadvantage:
 Assumed that all customers are cost concious
 May have a risk of focusing too narrowly on their own operations &
losing sight of the real objective: satisfying customers’ needs
 Conditions:
 Demand for a product exceeds the supply
 Product’s cost is too high and improved productivity is needed to
bring it down 11
 PRODUCT ORIENTATION
 Environment:
 More competition in the market
 Manufacturers believed that by focusing on certain product
attributes to gain customer
 Philosophy: Consumers will favor products that offer
the most quality, performance, and features
 Focus: Improving attributes like quality, performance
and innovative features
 Disadvantage:
 Assumed that all customers like certain attributes, e.g.
features – “marketing myopia”

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 SELLING ORIENTATION
 Environment:
 High competition in the market (1930 – 1950)
 Manufacturers believed that consumers can be persuaded to buy
more if sold aggressively
 Philosophy: Consumers will not buy enough of the organization’s
products unless the organization undertakes a large-scale selling
and promotion efforts
 Focus: Aggressive selling teams and promotion efforts
 Disavantage:
 May create negative image of the organization or the product
 Focus on creating sales transactions rather than on building long-
term, profitable customer relationships
 Conditions:
 Over capacity installment
 Unsought goods (insurance or blood donation)
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 MARKETING ORIENTATION
 Environment:
 Very high competitive market
 Marketers believed that by analyzing the needs of the target
market, they still can supply product profitably

 Philosophy: Achieving organizational goals depends

on determining the needs and wants of target markets
and delivering the desired satisfactions more
effectively and efficiently than competitors do.

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 MARKETING ORIENTATION
 Focus:
 Understanding the targeted customer
 Customer sactisfaction
 Co-ordinated marketing
 Business profitability
 Conditions:
 Poor sale performance
 Slow company growth
 Increased competition
 High consumer demand satisfaction
 More legislation

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 SELLING AND MARKETING
ORIENTATION CONTRASTED

Starting point Focus Means Ends

Existing Selling & Profits through sales

Factory
products promoting volume

The Selling Concept

Market Customer Integrated Profits through customer

needs marketing satisfaction

The Marketing Concept

Source: Kotler & Armstrong, 2004

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 SOCIETAL MARKETING
ORIENTATION
 Environment:
 General environment is more sensitive to the society’s well-being e.g.
green movement
 Philosophy: Organization should determine the needs, wants and
interest of target markets and deliver the desired satisfactions
more effectively and efficiently than do competitors in a way that
maintains or improves the consumer’s and society’s well-being.
 Focus: Beside fufilling the customers’ needs at a profit, the
organization must contribute to the society, e.g. participate in
charity programs, support the green movement
 Disavantage:
 Higher cost
 Conditions:
 Conform to the rules and laws
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3 considerations of the Societal
Marketing Orientation
SOCIETY
(Human Welfare)

Today

Before 1970
Before 2nd world war

CONSUMERS COMPANY
(Satisfaction) (Profits)

Source: Adopted Kotler & Armstrong, 2004

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 ACTIVITY (25 minutes)

Identify situations whereby you

have noticed each of these concepts
we have discussed are being used
in your home country. [Provide two
examples of each]

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MARKETING
MIX

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 MARKETING MIX

 Marketing mix is the set of

tools used to assist the
company in achieving its
marketing objective
 It comprises of 4 main
elements: Product, Price,
Place (Distribution) and
Promotion

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 MARKETING MIX

Marketing Mix
Quality
Features Distribution
Design channel
Packaging Wholesaling
Brand name Retailing
Guarantee... Stock
Transportation…
Place
Products

Advertising
Targeted market Sales Promotion
Mix pricing Public Relation
Discount Personal selling
Price Direct marketing…
change.. Price Promotion
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 STRATEGIC
PLANNING PROCESS

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IMPORTANCE OF PLANNING

• Prepares the organization for the future

• Provides direction for all workers
• Forces managers to think ahead
• Ensures proper use of resources
• Plans provide guidelines for further
action

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 3 LEVELS OF
STRATEGIC PLANNING
-Done by top managers
-Where they want the org. to be
Strategic Planning -time horizon is about 3-5 years
(long-term)
-Carried by middle managers
Business Planning -Concerning with developing action plan
for each unit
-time horizon is about 1-2 years (middle term)
Marketing
Planning -Done by the marketing managers – functional strategy
-Design specific activities & step to accomplish
objectives
- time horizon is about few months to a year (short term)

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 STRATEGIC
PLANNING PROCESS

Defining the Company mission

Corporate level
Setting company objectives & goals

Designing the Business Portfolio

Business unit,
Planning marketing &
product & market level
other functional strategies

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 MISSION
 Mission Statement: A statement of the organization’s
purpose – what it wants to accomplish in the larger
environment
 Mission statement should be:
 Market-oriented
 Not be too narrow or too broad
 Realistic
 Specific
 Fit to the market environment
 Based in distinctive competencies
 Provide direction and motivating staff
 Market-oriented mission statement defines the
business in terms of satisfying basic customer needs
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 Examples of Missions
Company Product-oriented Market oriented

Amazon.com We sell books, videos, CDs, We make the Internet buying experience fast, easy, & enjoyable –
toys, consumer electronics, We’re the place where you can find & discover anything you want to
hardware, housewares & other buy online
products
American Online We provide online services We create customer connectivity, anytime, anywhere

Disney We run theme parks We create fantasies – a place where America still works the way it’s
supposed to
eBay We hold online auctions We connect individual buyers & sellers in the world’s online
marketplace, a unique Wed community in which they can shop
around, have fun, & get to know each other
Nike We sell shoes We help people experience the emotion of competition winning, &
crushing competitors
Revlon We make cosmetics We sell lifestyle & self-expression; success & status; memories,
hopes, & dreams
Ritz-Carlton We rent rooms We create the Ritz-Carlton experience – one that enlivens the sense,
Hotels instills well-being, & fulfills even the unexpressed wishes & needs of
our guest
Wal-Mart We run discount stores We deliver low prices, every day

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Home Depot We sell tools & home repaire & We provide advice & solutions that transform ham-handed
improvement homeowners into Mr. & Mrs. Fixits
 GOALS & OBJECTIVES
 Company’s mission needs to be turned into
detailed supporting objectives for each level
of management
 Each management should have objectives
and be responsible for reaching them
 Strategies must be developed to support the
company in achieving its objectives

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EFFECTIVE OBJECTIVES -
SMARTER
• Specific: Clearly defined & precise, Cover specific
areas of business
• Measurable: Can be expressed in quantitative
terms
• Achievable:Must be achievable with thin the firm’s
resources & means
• Realistic: Focus on real problem of organization
• Timebound: Deadlines must be set Ensure that
tasks are completed on time
• Exciting: Motivate employees
• Recorded: Can be recorded and monitor
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 BUSINESS PORTFOLIO
 Business Portfolio: The collection of business &
products that make up the company
 Best business portfolio: The one that best fits the
company’s strengths & weaknesses
 Two steps of business portfolio:
 Analyze its current business portfolio &
decide which businesses should receive
more, less or no investment
 Second: Developing strategies for growth &
downsizing

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 ANALYZING
BUSINESS PORTFOLIO
 Portfolio Analysis: A tool by which management
identifies and evaluate Business Portfolio
 Business portfolio analysis is the main activity in
strategic planning
 Two steps of analyzing current business portfolio:
 Identify the key businesses (strategic business
units – SBU)
 SBU: A unit of the company that has a separate
mission & objectives & that can be planned
independently from other company businesses
 Assessing the attractiveness and strengths of its
various SBUs & decide how much support each
deserves
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 BOSTON CONSULTING
GROUP (BCG) APPROACH
 BCG – the best-known
portfolio-planning method
 Developed by the Boston
Consulting Group

Star Question Mark

Market
High
?
Growth
Rate
Low
Cash Cow Dog
High Low
Relative Market Share 33
 BCG APPROACH
 Star
 High market growth rate & high market share, Potential profit
 Require heavy investment to finance rapid growth
 Cash Cow
 Low market growth and high market share
 Less investment to hold the market share
 Produce a lot of cash, use this cash to support other SBU needed
 Question Mark
 Low market share in high market growth
 Require a lot of cash to hold their share
 Management should think which should try to build into star and
which should be phased out
 Dogs
 Low market growth and low market share
 They may generate enough cash to maintain themselves but not
large source of cash 34
 DEVELOPING STRATEGIES
FOR GROWTH & DOWNSIZING
 Product/market expansion grid (Ansoff matrix) is one
useful model for identifying growth opportunities

Existing Market Penetration Product Development

Markets

New Market Development Diversification

Markets

Existing New
Product Product
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ANSOFF MATRIX APPROACH
 Market penetration
 A strategy for company growth by increasing sales of current
products to current market segments without changing product
 Making more sales to current customers without changing its
products
 How: Add new stores in current market areas, improvements in
advertising, prices, etc.
 Market development
 A strategy for company growth by identifying & developing new
market segments for current company products
 How? Review new demographic (senior consumers) or geographic
(Asian, European & Australian) markets.
 Product development
 A strategy for company growth by offering modified or new products
to current market segments
 Diversification
 A strategy for company growth through starting up or accquiring
businesses outside the company’s current products & markets
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DEVELOPING STRATEGIES
FOR DOWNSIZING
 Reducing the business
portfolio by eliminating
products or business
units that are not
profitable or that no
longer fit the
company’s overall
strategy

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MARKETING PLAN

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 Position of marketing plan

Marketing
Company’s plan
objectives
Company’s
desired
position

Environmental Strategic gap Functional

forces plans
Company’s
Existing
position
Company
strengths &
weakenesses

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 MARKETING
MANAGEMENT FUNCTIONS
ANALYSIS

Planning Implementation
Control
Develop strategic Carry out the
Measure results
plans Plans

Evaluate results

Develop Take corrective

marketing plans action

Source: Kotler & Armstrong, 2004

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 WHY A MARKETING IS
ESSENTIAL FOR SMEs
 Allows you to visualize clearly where you are
going and what you want to accomplish
along the way
 Details the important steps required to get
from where you are to where you want to be
 Helps you to identify the time needed to
accomplishe each steps
 Helps you identify the resources and efforts
needed to reach your objectives
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 HOW A MARKETING PLAN
WILL BENEFIT YOU
 It analyze the firm’s competitive situation
 It gives a realistic appraisal of a market’s potential
and uncovers new opportunities
 It suggests alternative marketing strategies
 It coordinates the firm’s marketing tools
 It provides a framework for establishing a budget
 It set objectives and the responsibilities for achieving
them
 It improves individual & corporate performance
reviews
 It focuses on maintaining profitability
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 MARKETING PLAN
A marketing plan consists of
 Executive summary
 Brief summary of the main goals & recommendations of the plan for
management review
 Introduction
 Outlines marketing goals; provides a bit of background; can include a
vision statement
 Situation analysis
 Evironmental scan: market, external industry, product, competition
 Internal analysis: organizational analysis
 SWOT analysis: Assess major S, W, T and O
 Market segmentation and target market
 Analyzes client groups: existing and potential consumers and markets
 Select target market: who are they? Why would they use your products?
What features of your product appeals to them? When is your product
used by them? Where is your product used by them? How will you inform
them about your products?
 Positioning: how do you want you & your product perceived by your
different client groups? Write a statement that embodies the above;
consider how your actions help convey your positioning message
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 MARKETING PLAN
 Marketing objectives
 Set clear objectives for marketing plan – SMART objectives
 Marketing strategy (marketing mix)
 Product: what qualities make your product different
 Price: Which price strategy do you use
 Distribution: where should clients be able to obtain your product;
establishing effective distribution channels
 Communications: What are the best ways to reach clients; what media are
they most exposed to; what media most influences them
 Action programs
 Spell out how marketing strategies will be turned into specific action
programs that answer the following questions: What will be done? When
will it be done? Who is responsible for doing it? How much it will cost?
 Budgets
 Details a supporting marketing budget. Project profit and loss
 Control
 What kind of control will be used to monitor progress & allow higher
management to review implementation results & spot products that are not
meeting their goals

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 MARKETING
IMPLEMENTATION
 Marketing implementation is the process
that turns marketing strategies & plans
into marketing actions in order to
accomplish strategic marketing
objectives
 Successful marketing implementation:
• People at all level of marketing
system must work together
• depends on how well the company
blends its people, organizational
structure, decision and reward
system, & company culture into a
cohesive action program that
support its strategies

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 SAMPLE MARKETING PLAN ACTION
DEVELOPMENT SCHEDULE
Weeks after initiation
Task
1 2 3 4 5 6 7 8 9
Macro environment analysis
Industry analysis
Competitor analysis
Customer analysis
Identify target market
oduct design & development
Distribution strategy
Pricing and pricing strategy
Promotion strategy 46
 MARKETING CONTROL
 Marketing control is the process of measuring &
evaluating the results of marketing strategies &
plans and taking corrective action to ensure that
objectives are achieved
 There are four steps of marketing control: Set
goals; measure performance; evaluate
performance and take corrective action

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 CONTROL PROCESS

Measure Evaluate Take corrective

Set goals performance performance action

What we want What is Why is it What should

to achieve? happening? happening? we do about it?

Source: Kotler and Armstrong, 2004

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THANK YOU

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