Devising a marketing plan

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DEVISING A MARKETING PLAN

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PURPOSE OF MARKETING PLAN Part of the company’s annual planning

process.

Strategy to introduce something new.

To achieve the goals of company.

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argie CapitleA Marketing Plan comprises the

following elements, set out in this order:1. Market facts:

2.Problems and Opportunities:

3.Specific Objectives:

4.Plan of Actions:

5.Budget:

6.Control:

All relevant facts and factors should be known, evaluated and included.

Difficulties to be overcome and opportunities that can be exploited will be revealed by the marketing facts.

It should be defined and quantified.

It should indicate how to achieve the stated objectives.

It covers all expenditures necessary to carry out the plan of actions.

It measures the progress of the plan against it objectives and to compare realities of the situation with the plan.

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argie CapitleIMPORTANT STEPS IN PREPARATION OF MARKETING PLAN

1. Fact-Finding 2. Assessment 3. Marketing Objectives4. Plan of Action5. Budget6. Control Procedures

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1. Fact-Finding - Discovery stageCheck-list for fact-findings:

Product Total Market Distribution Channels Consumers Competitors Rules and regulations with

respect to packaging, trade marks and labeling.

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UCC MBA - M


2. Assessment All relevant facts, must be weighed according to their relative importance and translated into a realistic assessment of the market potential of the product in question.

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UCC MBA - M


3. Marketing Objectives -Core of the plan.

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3. Marketing Objectives Ground rules for establishing marketing objectives:1. Be realistic2. Remember your priorities3. Be specific4. Seek end results.

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UCC MBA - M


4. Plan of Action In planning marketing activities, observance of the following principles and rules will help to bring objectives and plan of action into harmony: 1. Concentration2. Direction3. Magnitude4. Multiplier effect5. Testing and pilot plans6. Comparison of alternatives

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argie Capitle1. Concentration straight to the point on which is important.

2. Direction activities should be directed to those areas where a given

investment in time and money will produce the greatest result.

3. Magnitude Must be aware in minimum factor sometimes it has a big

effect.

4. Multiplier EffectIt is worthwhile to search for activities whose effect extends

far beyond their initial scope and increases the effectiveness of other activities at the same time.

5. Testing and Pilot PlansIts offer a way of trying out new ideas on a small scale and

at limited and controlled cost before large investments is made.

6. Comparison of AlternativesAt the stage of planning, alternatives and their results can

and must be weighed in very specific and quantitative terms: What are the alternatives? What is the cost of each? What is the magnitude of the expected result of each total?

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UCC MBA - M


5. Budget Needs to drawn up based on the

description of the plan and covering, in as much details as possible, all the expenditures necessary for the execution of the plan.

Usually the budget section in the marketing plan covers only the areas of advertising and sales promotion.

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5. Budget Principle two points of departure in determining budgets for advertising and promotions

Task method The cost of different activities that have been decided upon to achieve a desired result is first estimated and total cost of activities is in the budget.

Result Method This determines the advertising and promotion appropriation in relation to the sales of the product actually achieved during the preceding year or to the sales forecast for the period covered by the marketing plan.

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argie CapitleIn drawing up a budget for marketing plan , there is a certain rules to be considered

Reference to objectives It is useful to set down activities together with their objectives, to know the priorities and show how they are being followed.

Specifications and Cost details Indications as to how the total cost for a given activity is arrived at helpful in two ways:

First, budget becomes more readily understandable to those who have to approve it

Second, budget adjustments that may become necessary at the later date are more quickly and easily made if sufficient data are indicated.

Value Analysis This modern term marks the very simple principle of showing quantitatively what a given sum of money really buys and thus goes beyond cost specifications

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UCC MBA - M


6. Control Procedures Whether a marketing plan is good or bad will only be discovered by putting into operation. • If the proper controls are imposed regularly and if they

start as early as possible in the planning period , any adjustment and change needed later on made sooner and at a lower cost.

• There should be a midyear comprehensive review of the state of the business not only for the purpose of modifying the current plan but a guide for following year plans.

• There should be a regular measurement of distribution effectiveness and density together with effectiveness of advertising.

• Plan control and reviews thus a dual purpose: they enable corrections to be made in all expenses for the preparation of the subsequent plan.

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A marketing plan may contain general

market information in addition to the specific product related information. This information is not directly relevant to any commodity or product, but is of background interest in developing promotion in given market.

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TWO ASPECTS NEED IN DEVELOPING MARKETING PLANS Economic FactorsThese relate principally to the ability of the market to buy the products. Factors to be considered are the general economic situation, GNP, growth rate of industrial output, population , labor supply , etc. Specific market CharacteristicsThese concern the willingness of the market to buy the product, as distinct from its ability to do so.

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MARKETING PLAN

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Devising a marketing plan