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Principles of Marketing - Philip Kotler
The strategic plan defines the company, what it manufactures, it will be engaged, and sets out the tasks of these productions. Now we have to develop their own detailed plans for each of them. If the production includes several product groups, several products, brands and markets in each of these positions separate plan should be developed. That is why we are faced with production plans, product launch plans, plans for the release of branded products, and plans to market activity. All these plans will be denoted by one term - "marketing plan". Let us consider the main sections of the marketing plans and the successive stages of the development of the marketing budget.
What is the usual marketing plan? You and I will discuss mainly about the plans for a conventional or branded goods. Roadmap normal or vintage items should include the following sections: a summary of the benchmarks, the presentation of the current marketing situation, the list of dangers and possibilities, the list of problems and issues, marketing strategies, action programs, budgets and the procedure for control over execution of the planned (see Fig.. 87).
Fig. 87. The components of the marketing plan
SUMMARY benchmarks. At the beginning of the plan is to go to a summary of the main objectives and recommendations, which will be discussed in the plan. Here is an example:
1983 Marketing Plan. aims to provide a significant increase in sales and profits of the company in comparison with the previous year, sales benchmark is defined in the $ 80 million.. that is equal to the planned growth of 20%. This growth seems achievable thanks to improving economic and competitive environment, and the situation with the distribution of goods. The projected size of the current profit -.. $ 8 million, which is 25% more than last year. These goals should be achieved with the budget of $ 1.6 million. USD. Allocated for sales promotion, which is 2% of the planned sales. The budget for advertising -.. $ 2.4 million, representing 3% of the planned sales. (The following are the other indicators in the summary.)
A summary of benchmarking helps senior management to quickly understand the main thrust of the plan. For a summary of the plan should be to put the table of contents.
CURRENT MARKETING SITUATION. In the first main section of the plan describes the nature of the target market and the company's position in this market. Compiled Plan describes the market in terms of its size, the main segments, the needs of customers and specific environmental factors, making a review of basic commodities, lists of competitors and indicates the distribution channel.
Danger and opportunity. This section makes managers look to the future and present threats and opportunities that may arise before the product. The purpose of all this - to force management to predict important events that can strongly affect the company. Managers should list the maximum possible number of dangers and opportunities that they can imagine. Suppose the control of the tobacco companies have received such a list:
1. The main US doctor goes to Congress to pass a law requiring that the front side of each cigarette pack placed a skull and crossbones and a warning: "According to science, the daily smoking reduces life by an average of 7 years."
2. A growing number of public places where smoking is not allowed at all, or a separate room for smokers and nonsmokers.
3. In the new crop of tobacco harmful insect attacks and, if they are not found ways to deal with it in the future, probably, we should expect lower yields and a large increase in prices.
4. Laboratory of the company is on the verge of opening, which will allow to turn a salad into a harmless tobacco. In the case of tobacco will be successful, satisfying and not causing harm to health.
5. Rapidly rising consumption of cigarettes in foreign markets, particularly in developing countries.
6. Some groups insist on the legalization of marijuana, ie, at its free cultivation and sale.
Each of these positions has implications for the cigarette manufacturer. The first three can be considered dangerous. The danger we define as follows:
Danger - a complication that occurs due to the unfavorable trend or a specific event, which - in the absence of targeted marketing efforts - could undermine the vitality of the goods or his death.
The last three positions can be considered as marketing opportunities of the company. Marketing opportunities we define as follows:
The marketing opportunity - attractive destination marketing efforts, where a particular firm may gain a competitive advantage.
Manager must assess the likelihood of each hazard and each features and their implications for the firm.
CHALLENGES. After studying related product risks and opportunities, managing to deliver objectives and to identify the relevant challenges. Objectives should be formulated in terms of objectives, which the firm aims to achieve over the term of the plan. For example, a manager wants to gain the 15% share of the market, with 20% of sales profit before income tax and a 25% profit before tax on capital. Assume that the current share of the company - only 10%. Immediately there is a key problem, namely how to increase market share? Manager'll want to consider all of the major problems associated with attempts to such an increase.
MARKETING STRATEGY. This section sets out a plan for managing the marketing approach (the so-called game plan) to solving problems. We define marketing strategy as follows:
Marketing Strategy - rational, logical construction, guided by an organizational unit which calculates to solve their marketing problems. It includes specific strategies to target markets, marketing mix and level of marketing costs.
Target markets. marketing strategy should definitely be called the market segments in which the firm will focus its main efforts. These segments differ from each other in terms of preference, responses and profitability. The company will do very wisely by focusing on the segments of energy and that it can serve the best from the competitive point of view. We need to develop a separate marketing strategy for each of the selected target segments.
Marketing Complex. Manager must provide an outline of specific strategies in respect of such elements of the marketing mix, as new products, sales organization in the field, advertising, sales promotion, pricing and distribution of goods. Each strategy must be justified in terms of the manner in which it takes into account the dangers, opportunities and key challenges outlined in the previous sections of the plan.
The level of marketing costs. At the same time the manager has to specify exactly the size of the marketing budget required to implement all previously stated strategies. Manager knows that the higher the budget is likely to provide and the higher sales, but it needs to develop a budget that would provide the highest profitability.
PROGRAMME OF ACTION. Marketing strategies must be turned into concrete programs of action that provide answers to the following questions: 1) what will be done? 2) when it's done? 3) who will do it? 4) how much it will cost? For example, the administrator may want to strengthen sales promotion, making it a key strategy to gain market share. To do this, it will be necessary to develop a plan of measures for sales promotion, listing special offers and terms of their activities, participation in specialized exhibitions, construction of new exhibitions at points of sale, and so on. N. During the year, as new challenges and new opportunities in the action plans making adjustments.
BUDGETS. Action Plan enables the manager to develop the relevant budget, which, in fact, forecast profit and loss. In the column "Income" provides forecast on the number and average price of net trade items that will be sold. The "Costs" column indicates the cost of production, product distribution and marketing. Their difference gives the amount of expected profit. Top management shall review the proposed budget and approves or modifies it. As approved, the budget serves as the basis for the purchase of materials, the development of production schedules, demand planning manpower and marketing events.
ORDER OF CONTROL. In the last section of the plan sets out the procedure for monitoring the implementation of all planned. Typically, targets and budget allocations painted by months or quarters. This means that senior management can evaluate the results achieved within each time interval, and identification of production, have been unable to achieve the set targets in front of them. Managing these productions will need to provide explanations and indicate what measures they are going to take to remedy the situation.