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Marketing planning.

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Introduction

Intro To help make marketing decisions a business must plan effectively. MARKETING PLANNING is the process by which future marketing activity are systamaticaly planned. Not all businesses have a marketing plan. Some smaller businesses, for example, may make marketing decisions on a short term basis or in response to changing conditions. For example, the Rank Group plc will have an overall corporate strategy. This will influence the plans of its leisure division. Marketing plan A business can only plan where it is going if it knows where it is starting from. Finding out where a business is at the moment involves a MARKETING AUDIT. This analyses the internal and external factors which affect a business's performance. SWOT strengths, weaknesses, opportunities and threats. The objectives provide goals and targets for the business to aim at. They may include such goals as a growth in sales or gaining a certain market share in future. How will a business achieve its objectives? A business must decide how to get where it wants to go. It will have marketing strategies which it will use to achieve its objectives. For example, if it wishes to increase its market share at the expense of a market leader then it may use market challenger strategies. ...read more.

Middle

It may snake it possible for businesses to manufacture products that were previously thought to be too costly. It may also lead to greater obsolescence and shorter product life cycles. New technological developments such as interactive television and the internet may change the promotional methods that a business uses Businesses should be careful to consider how each of the above factors affects consumers and their buying behaviour. Changes in external factors can cause changes in the wants and needs of consumers. An effective plan should anticipate these changes as well as any other issues affecting consumers' needs. � The main benefit of marketing planning is that it ensures a business takes time to reflect upon its marketing activities. In today's competitive environment it is not enough for businesses to carry on doing what they have done successfully in the past. They must constantly evaluate and develop their marketing policies. The marketing plan allows them to do this and can be seen as a means of ensuring the survival of the business. � The marketing plan co-ordinates the various aspects of marketing. It takes a holistic view of a business's marketing activities. This should lead to better coordination and integration of the different elements of marketing. It should also allow all employees and all areas of the business to be aware of marketing objectives, helping to ensure that they ...read more.

Conclusion

Such performance targets are often time specific. This means that they are expected to be achieved by a certain date during the implementation of the plan. For example, a plan may require a 5 per cent growth in market share by the end of the first six months. A business may use a number of methods to evaluate a marketing plan. How to calculate Market Profit Marketing profit = sales revenue of a product (quantity sold x price) - marketing costs (marketing research, advertising,etc.) Thus a product with high revenue and relatively low marketing costs will be highly profitable. In contrast a product with low sales revenue and relatively high marketing costs will be less profitable. The main benefit of calculating marketing profitability is that it can highlight some of the most and least profitable markets. Take the example of a business seeking to increase sales of a particular product by moving into two new markets A and B. In market A, an increase in sales of 10 per cent can be achieved with additional marketing costs of 5 per cent. In market B an increase in sales of 45 per cent can be achieved with additional marketing costs of 5 per cent. This business may wish to focus upon the more profitable market B. The MARKETING BUDGET The MARKETING BUDGET specifies and sets out clearly the financial elements of the marketing plan. Like budgets for other aspects of business activity. Toby Elliott 01/05/2007 1 ...read more.

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