Role and Nature of a Marketing Plan - Coursework Example

Running Head: Marketing Plan Marketing Plan Customer’s Name Customer’s Course: Tutor’s Name: 20th November, 2012. Introduction In the first part of my essay is the definition of marketing, the kind of relationship that exists between a marketing plan and a business plan and the functions of a marketing plan. Functions of marketing are stipulated in two classes, first tactical functions and strategic functions. The second part gives an overview of a typical structure of marketing. It also touches on the major differences that exist in a marketing plan structures. The third part explains into detail the various marketing plan elements, looking each element at a time. It also explains the purpose of these section, the kind of information it requires and the sources of these information. It also talks of the techniques used in preparing it. The fourth part is the links or any independence between the marketing plan elements. The fifth part is the various marketing plan assumptions and finally is the misconceptions in regard to marketing plan which includes reiteration of main points. Role and nature of a marketing plan I understood a market plan is a marketing document that clearly indicates the position of my business and the business strategy that I anticipate to use in the time I have set in my plan. My market plan should clearly state the various measures that I plan to implement to achieve my business objective (Luther, 2011). My marketing plan should cover duration of one year and at the end of every year, I should update it. My business plan and market plan are related and the two documents are supposed to complacent each other. A marketing plan should give good details about my expected customers as well as how I influence them to buy my products or services and have good means of sustaining. My business plan should help me evaluate the worth and value of the business ideologies and the best time to write my business plan is when I am opening my business and also continue to update my business plan periodically to keep my business in competition (Hooley, Nicoulaud & Piercy, 2011). Marketing plan has various functions either tactful or strategic. In focusing the tactful functions, my business should cover short term goals which in most cases should not be beyond one year. I should concentrate seriously on the various internal operations that do take place in the sectors of my organization. Some of the sectors my tactical marketing plan should address are the plant system, the production sector, the marketing team and how I plan to finance these sectors. My strategic marketing plan should be long term based meaning, it should cover more than one year and the best strategic plan should cover about four years. The strategic plans should feature strategies that my business can use in fixing the prices of commodities, attracting potential clients. The best means of communication to be adopted in my organization, and it should highlight the benefits that my business provides to my customers. It should also touch on how am going to segment my market. (Fill, 2009). Marketing plan structure I see a marketing plan to have no exact way in which it should be structured, however I am going to outline the typical structure of a marketing plan below: a. There should be a situational analysis of the organization - this is section that should have the following subsections; External environment (PESTLE Analysis) Corporate review Product category review Competitive analysis Consumer analysis Brand review b. There need to be the identification of the Available problems and opportunities - this section that should have the following subsections; SWOT analysis Opportunity analysis Problems c. There should be a Strategic planning - this is section that should have the following subsections; Marketing objectives Marketing strategies Targeting and segmenting Identification Positioning and branding Marketing mix objectives, strategies and tactics Product Promotion Pricing place d. There should be Evaluation and control - this is section that should have the following subsections; Forecasting Budgeting Scheduling and timing Evaluation It is good to note that there is an existence of potential differences in most marketing plans. The structure of a business plan is dependent on the industry in which the business is falling in. The issue of whether the marketing plan is short term or long term also creates a difference. Elements of marketing plan I should have the basic elements of a marketing plan for instance situational analysis, strategic plan, control and evaluation problems and opportunities, competitor analysis and marketing mix (Wood, 2007). a) Situational analysis This should form the basis of a marketing plan. I should do a careful analysis of the situation of my market plan which has two parts, the external and internal factors. This factors if well analyzed can help very much in predicting the future of my market (Malcolm & Morris, (n.d.)). Some of the important factors that I should incorporate are; the political climate, the situation of the economy, the business slogan or my mission statement, the chart of the organization and my short term as well as long-term goals. I should also analyze the kind of products I sell, my clients worth and the existing level of the competition in the market. Situational analysis should define my anticipated business growth, my potential clients, who are my competitors (Luther, 2011). Internal analysis I should also include in my marketing plan reliable SWOT analysis which explains in detail my business major internal strengths and major weaknesses of the organization based on factors such as work force, promotion means, and tradition of the organization, organizational structure and sources of capital. My business strengths can be either tangible or intangible and should help me attract large number of customers as well as give me profit. Business weaknesses can affect the performance of my business very much, I should therefore develop means and ways of countering them especially through learning how other similar business operate. External analysis The external factors that can affect my business includes; the current and future competitors, the people associate with to undertake business, the people whom I supply to my products or services and the future market which might change and affect my products or services and therefore I should I should keep on updating and changing my market plan to remain in business (Wood, 2007). b) Competitive Analysis In order to keep my business thriving, I should evaluate who my competitors are and the available substitutes of the products or services I offer. The greatest mistake that I can do is to underrate my competitors. The best policy of remaining in competition is to keep on focusing on market trends and try to change as technology and other factors affecting the market changes. These will keep me in a good position to continue competing with my competitors rather than copying and doing exactly what they are doing. These can make my product or services unique and I can therefore outdo my competitors (Robins, 1991). c) Strategic planning Strategic plans should address various issues like how I make important business decisions, how I manage my labor force and the production rate of my business; whether it balances with output (Luther, 2011). I should come up with various incentives and innovation strategies to keep my business going. I should also make sure that I meet my set objectives and goals. I should answer myself the various questions to determine whether my business is headed for the better or for the worse. a) Where is my business going? b) Is my business achieving my set objectives? c) Are my plans realistic enough to help me in realizing my goals? d) Is my business meeting customer’s needs? e) In coming future where do I want my business to be? If I am able to answer all the above questions, then my business is headed for the better, if I am not able to answer all the questions, I should know my business is headed for a downfall. d) Marketing mix In learning marketing mix, I learnt that to undertake my market successfully, I must include price, product, place and promotion which are known as the four P’s of marketing mix. The four factors are subject to change as the business grows and widens and therefore they form the essence of my business. To determine the price of my products or services, I must consider the cost of goods, the current price in the market, the various expenses I have incurred for instance advertising expenses and the supply and distribution cost. All these factors can help me to come up with a fair price that does not lead to loss or a price that is not fair to my customers (Malcolm, & Hugh, 2011). The location of my business can help me win more customers at the same time earn a lot of profit. There are products that need to be brought closer to clients and therefore I should choose a place that has a large traffic density. Others need to be available always at a specific place for instance in a store which I should make sure is easily accessible. I should strategically choose the location of my business with all these factors in mind (Malcolm, & Hugh, 2011). In order to undertake a promotional campaign, I have to consider whether my products or services are new or not new in the market. A new product would require extensive promotional campaign need and therefore would be more costly than a campaign that is already known so it requires little promotional campaign. I have also to consider the means of promotion I want to use for instance media and it should not exceed the benefits I get from my business (Malcolm, & Hugh, 2011). For product or service I intend to market, I should first know whether I have a constant source of the product and whether I will be able to continue supplying it without failing my clients. I should also consider whether my products or services attend to the problems my clients have as well as the benefits it renders to my clients. e) Problems and opportunities Through use of a good SWOT analysis, I can identify all the opportunities and threats that my business encounters. I should carefully analyze the existing or imminent market since the already existing markets can change in future. My well documented market plan should have alternatives incase the market I have changes. I should also differentiate between internal and external market opportunities. Internal strengths are factors such as how I offer products to clients, quality of services I offer to my customers and distribution networks of my organization. Internal weaknesses are factors such as poor organizational traditions and poor distribution strategies. External opportunities include factors such as market share and customer loyalty. Threats are external environment factors that influence the business negatively such as policies and competition. Problems cannot be terminated but the best thing to do is to develop means and ways I can counter them and also solve them (Naver & Slater, 1990). e) Control and Evaluation In order to control and evaluate my business, I need to use a successful SWOT analysis. I should very well plan how I will control my business sources of finance and regularly evaluate whether the business is operating at a loss or at a profit. I should also strategize my marketing plan formula so that I can manage to fund advertisement and promotion campaign. The main reason for my control should also try to make sure that I maintain my existing clients through motivating them and delivering to them the right quality and increase profits as a result (Malcolm & Morris, (n.d)). Is there a link between the marketing plan elements? There exists interdependence in the elements of a marketing plan. One of the interdependence is that all of the rudiments in a marketing plan presents a thorough plan of the organization’s efforts towards the marketing of its product(s)/service(s). I clearly see this from the analysis of various components that make up the marketing plan which can be taken to be the constituent whole of the marketing plan to which those components have to be interrelated forming the whole organization’s marketing plan (Kerin & Berkowitz, 2006). All the elements acts like the constituents of the whole and they all must be for the whole to function properly. Taking the situation where the external environment is evaluated presents the ground for making basic decisions that relates to the objectives and strategies being sought for accomplishment through the marketing plan of the organization. Without this, elements of the market plan would not work coherently or work congruently towards the attainment of the objectives of the organization. I can take the whole marketing plan function to be the issue based in such a way that the accomplishment of the various elements of the marketing plan are heavily reliant on the incorporation of all the elements of the marketing plan (Lehmann & Winer, 2002). The subject of rising products sales in the market can also be resolved through a new design of the products, packaging and insistent marketing, but, analysis of the state of affairs, environment, competitors and SWOT is required for an improved result and therefore the interrelation of a variety of marketing elements. Interdependence of the marketing plan elements is again seen in the fact that each element presets the arena for the next element right from the first marketing plan element to the last one; this forms a link between these elements. Looking at it, the problems and opportunities elements at the point where the SWOT analysis is carried out to realize the strengths, weaknesses, opportunities and threats, after that, breakdown of the opportunities followed by the problems prepares the arena for the formulation of the marketing plan objectives, strategies, targeting and market segmentation, recognition of how the firm can gain a competitive improvement in the market and also the way the organization can place and make its products in the market (Cohen, 2005). In support of this, I supposedly think of a state of affairs where an organization first starts by making a sketch; the marketing plan budget, without even allowing for drafting of the objectives, mission of the marketing plan, the analysis of the environment and having an insight of what the competitors are doing in the same industry, would but be hypothetical if not a waste of time. In regards to this; marketing activities do not occur haphazardly without accomplishing some key stages of the marketing plan elements (Porter, 1998). Assumptions There exist various misconceptions that are related to marketing plans. I have seen some businesses believing and thinking that they are too small for a marketing plan. This is an assumption that small businesses do not need a marketing plan. It is good to know that despite the size of the business, every business need to have a marketing plan. The marketing plan helps the business to get the best from the marketing investment (Wood, 2010). The fact that an organization is doing some advertisements does not mean that it has a marketing plan. Though the advertising campaigns act as a valuable marketing tactic and it is one among the many ways that a company can deliver their marketing message to their current and potential customers, it is not the marketing plan. Thus, companies have to have an integrated plans that clearly stipulates a number of tactics and how the tactics will work together to realize the goals. There is also the misconception in that; the marketer thinks that they know what the customers think. It is an important aspect to know one’s customers, how they feel, who they are, what they think and the reasons as to why they will buy from a one’s business. It is an assumption many marketers have that they know their customers, and in most cases this is not true (Zaltman, 2003). There is also the assumption that marketers have; that they market for the prospective customers and not the ones they have currently. I believe that customers are not entitled to one organization forever, thus there is need to have a regular reinforcement of marketing in order to get, keep and retain customers, failure to which might cause one to loosing the customers. There is also a misconception that, it is difficult to be in a position to predict the prices of commodities for the future cost. Uncertainties do exist but the predictions that are made are often not far from the true figures. Some people think that the process is time consuming and costly. At times the process is indeed expensive and time consuming, but the benefits yielded from the process when implemented correctly are worth it. Therefore, there is need for organizations to implement the marketing plans carefully so as to achieve the level of benefits accrued to them. Conclusion Marketing plan is an important document that should be part of every successful business. I see the need for every manger to implement the marketing plan in the most effective manner so as to achieve the objectives of the organization. I have looked at the structure that the marketers should follow when drafting the marketing plan. From the paper, the marketing plan has two major categories of uses, the tactical uses and the strategic uses. There is a clear link between all the elements of a marketing plan; all the marketing elements have a common goal of marketing the products/services of an organization. I have looked at the various misconceptions that should be known to the marketers so that they can find ways of dealing with them. The success level needed by an organization whether large or small can be achieved if the organization drafts and implements a proper marketing plan. References Cohen, W. A. (2005). The Marketing Plan. 4th Ed.. 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