Marketing planning process

Situation analysis is the first component of the marketing planning process. It involves a thorough examination of your company in relation to the competition and an analysis of the company’s internal strengths and weaknesses. A complete understanding of the external factors influencing your organization as well as its inherent qualities is essential for your company's success. The major outcomes of situation analysis which are recorded in a marketing plan are: (1) descriptions of the most significant facts, trends, issues, and influences in the market macro, and organizational environments; (2) a list of threats and opportunities external to the organization; (3) a list of the strengths and weaknesses within the organization, and (4) explanations of the key assumptions currently made about the company's future direction and the magnitude of the threats, opportunities, strengths, and weaknesses. All of this information is essential effective marketing planning.

A. Business and Product/Service Description
Rationale: it is important to understand the industry within which your organization exists in order to interpret information accurately during situation analysis. How the product/service fits in the industry affects all aspects of your strategic and tactical planning. The description created here also will provide an overview of the business and the product/service for those reviewing your plan.
1. Describe the Industry
Briefly describe the industry within which your organization exists. How old is the industry How big is it? Identify the recent growth trends. List the various markets it serves. Who serves them (including competitors and potential competitors)? How has technology impacted on the industry during the past few years? Axe technological breakthroughs probable during the planning period?
2. Specify the Organizational Mission and Objectives
Describe the mission and objective(s) of your Organization. Briefly explain how they fit within the industry as a whole.
3. Describe the Product/Service and the Fit
Briefly describe the product/service that will be addressed in this marketing plan and explain how it fits with the mission and objective(s) of the organization.
4. Record Financial Forecasts/Goals
If you are launching a new product/service without corporate forecasting backup, then identify your financial goals for this product/service during the time period for which you are planning. Include gross sales and other relevant indicators. If your company has a history in the market place and a corporate forecast or product/service goals, then record them here. If your company has a history in the market pace but not a corporate forecast or product/service goals, then use last year's (or other recent) sales and growth rate figures here.

B. Market Environment
Rationale: Information about market size, competition and market segments is essential to developing an effective marketing plan. This information will be analyzed later, along with data about the macro environment, to identify key threats to and opportunities for your business. It will also be used in conjunction with information about the organization to identify the key assumptions which currently influence your strategic planning. Finally, information about the market environment will prove essential for the development of effective tactical marketing plans.
1. Describe the Market Size and Market Potential
Describe the size of the current market for this type of product/service in terms of sales dollars and volume of units/utilization. Describe the market potential for this type of product/service in terms of sales dollars and volume of units/utilization.
geography, psychographics, and demographics.
4. Specify Immediate Competitors
Identify your immediate competitors with regard to the product/service and the market segments currently served.
List the organizations and their corresponding product(s)/service(s).
5. Describe Differential Advantage(s) by Segment
Describe why the members of each segment choose to buy or use your particular product/service rather than competitive products/services. What unique benefits does it offer? For example, is this product/service superior in quality, more convenient, less expensive, more easily purchased, better serviced, associated with a better company image, etc.?
6. Describe Product/Service Usage
How often do the members of each segment use this product/service? Are they using it as frequently and for as long as they could? How does this usage compare with that of competitive products/services?
7. Compare the Competitive Players
In order to make informed market decisions, you must quantify your company's position in the market place relative to that of its competitors. How does your organization compare with its competitors in terms of size (overall and related to this product/service dollar/unit volume and manpower), growth rate, profits, market share, etc.'?
8. Compare Competitors' Resources/Willingness
How does your organization compare with its competitors in terms of resources (manpower and non-manpower) available to enhance or replace the product/service (R D), cut prices, launch an advertising blitz, increase the sales force in size or effectiveness, etc. Include any factors that could significantly alter the current picture of the market place. How does your company compare with its competitors in its ability to make changes in its marketing plan? To what extent can you forecast their moves?
9. Identify Additional Segments to Target
Could your product/service (as it is or with modifications) solve problems or create opportunities for any currently untargeted market segments better than the competition does? Could it solve problems or create opportunities for segments not yet served by anyone? Are these segments substantial and accessible enough to deserve attention?
10. Analyze Potential Competition
Identify the competitors in currently untargeted, yet attractive market segments. Does your organization have the resources necessary to compete with them effectively?
C. Macro Environment
Rationale: What happens in the macro environment today can have significant impact on a market environment tomorrow. You need to understand relevant issues and trends, and consider their potential impact in your planning.
I. Define the Impact of Economic Trends
What is happening in the economy that could affect this product/service during the corning year? Include inflation, energy, unemployment, materials availability, strength of the dollar, etc. and how they impact on operations, targeted market segments, and the demand for this product/service.
2. Define the Impact of Social/Cultural Trends
How could issues and trends in the social/cultural climate affect this product/service during the next year? Consider education, immigration, emigration, population distribution, religion, and others.
Are there any technological breakthroughs in related businesses, suppliers or businesses with auxiliary products expected in the corning year? How could such breakthroughs affect operations, targeted market segments and/or the demand for this product/service?
D. Organizational Environment
Rationale: An effective marketing plan is one which realistically assesses the inherent qualities of the organization and accounts for the type and amount of support it is likely to receive from the organization. To do this one must include an examination of the organization from an historical perspective—what has it done in the past and how does it respond to marketing related changes'?
I. Describe Capabilities and Responsiveness
How well can your company respond to changes in its course which arc necessitated by internal needs or the external environment? What are its capabilities regarding research and development, manufacturing, sales and promotion, financial management, distribution, etc.? Consider manpower, technical arid monetary resources, the speed with which changes can occur, as well as the quality of the resources.
2. De-scribe Organizational Support/Willingness
How supportive has your organization been historically concerning this product/service? How likely is it to risk resources or make changes if they arc indicated now?
E. Primary and Secondary Market Research
Rationale: Gaining a thorough understanding of your market is essential to successful marketing. Data collection and analysis can significantly improve the quality of your marketing decisions. However, research is expensive and must be cost effective to be beneficial. You need to prioritize information prior to collecting it, and determine whether access to the data justifies its cost.
1. Specify Information Necessary to Collect
Did you lack any important information when answering questions about the market, macro and organizational environments? Write itemized, concise descriptions of the information you need to collect.
2. Choose Primary vs. Secondary Research
For each item of information you need, determine whether collecting it will require primary or secondary research. Primary research includes surveys and focus groups conducted first hand. It is more expensive than secondary research, which has been collected already in reports or other records, and therefore should be conducted only when absolutely necessary. Beside each description, write primary or secondary and the rationale for the designation.
3. Write Research Specifications
Write objective statements, and other specifications required to direct the research. This includes defining the variables you are researching, as well as identifying the sources of information and methods of collection. You may want to consult with a professional market researcher, and perhaps commission the
marketing research project(s) entirely.
4. Design Instruments and Collect
If marketing research is not commissioned, then design the instruments required to collect the information (e.g., sampling specifications, survey forms and formats, etc.). Develop a plan which includes a budget, a time frame, and who will conduct the research.
F. Threats and Opportunities
Rationale: Threats and opportunities exist in the market and macro environments; they are external to your organization. They include facts, trends, issues, and influences that can affect the success of your product/service in the near future.
1. Write Threat Statements
Identify the most important facts, trends, issues, and influences in the macro and market environments that will adversely affect the success of this product/service during the next year. Write a threat statement for each of these factors. Threat statements should include a description of the potential adverse impact on the product/service.
2. Write Opportunity Statements
identify the most important facts, trends, issues, and influences in the macro and market environments that will positively affect the success of this product/service during the next year. Write an opportunity statement for each of these factors. Opportunity statements should include a description of the potential positive impact on the product/service.
C. Strengths and Weaknesses
Rationale: What the organization is able and willing to do will drastically affect your strategic and tactical planning Strengths and weaknesses inherent to the company will determine tactical aspects of your marketing plan.
Write Strength Statements
Identify the most important issues, capabilities, resources, etc. in the organizational environment that will positively affect the success of this product/service during the next year. Write a strength statement for each.
2. identify Negative Factors to be Rectified
Identify the most important issues, capabilities, resources, etc. in the organizational environment that will negatively affect the success of this product/service during the next year. List those which can be rectified, and create action plans to ensure their correction.
3. Write Weakness Statement
Write a weakness statement for each of those negative factors which cannot be rectified These will be important considerations during strategic and tactical planning.
H. Key Assumptions
Rationale: While much of the information used in a marketing plan consists of quantifiable facts, some is based on assumptions made about the organization and its external environment, it is important to distinguish the two in order to determine whether conclusions drawn need to be evaluated because they are based on assumptions rather than facts.
Write Assumptions for Each T/O and SIW
List and describe your assumptions about each threat, opportunity, strength and weakness. Will each continue, increase, decrease or change all together? Evaluate the affect of each if your assumptions are wrong.
measurable within a specified time frame. Next, strategies for how to reach these marketing objectives are developed, and the best are selected for the marketing plan. Strategies describe how one intends to position the product/service in fact (i.e. the targeted market segment and the share/volume goal per segment) and in perception (how the product/service should be perceived by the targeted segment), and include general
descriptions of how to adjust each element of the marketing nux in order to achieve these positions.
A. Marketing Objectives
Rationale: Objectives are set in order to provide targets for your planning effort and to serve as yardsticks by which to measure progress and achievement. Well formulated objectives consider variables in the market place so that real growth can be differentiated from normal market growth
1. Write Objectives for Marketing Plan
In Section 1, you described internal and external factors influencing the success of your
product/service. Now, considering the threats, opportunities, strengths, weaknesses and key assumptions affecting your company, determine what your marketing objectives should be. Consider
the organizational mission/objectives, culture, and interpersonal climate (e g., politics). Write one or more objectives that address, when possible, sales dollars, units sold (or utilization), market share in dollars and units, and profitability. Your objectives should be realistic and measurable within a specified time frame. Though specifically defined, these objectives are general in nature: segmenting your market and positioning your C will be done in later portions of the strategic portion of your plan.
B. Strategy - Product Positioning
Rationale. Product positioning the place your product/service will hold in the market, and the particular market segment(s) and market share(s) that it holds in relation to the competition. It specifies your objectives in clearly- delineated terms. Your decisions here will guide all subsequent strategic and tactical decisions, including the allocation of resources by market segment.
1. Specify Product Position for Marketing Objective
Describe how you plan to position the product/service (vs. in perception) in the market place. This is called product positioning. Which market segment(s) will you target in order to achieve your marketing objective(s)? What sales volume and share.(both in units and dollars) must be attained in (each of) the targeted segment(s)iord Zachieve your
marketing objective(s)?
C. Strategy - Perceptual Positioning
Rationale: Perceptual positioning involves creating an image of the product /service that will differentiate it from the competition., and cause the targeted segment(s) to prefer your product/service to that of the competition. The image(s) you choose should influence everything about the product/service itself (e.g., special characteristics, packaging, service), as well as its promotion, distribution, and
Jpricing.1 . Determine Optimal Perceptual Position(3)
Describe how you plan to position the  in perception (vs. in fact) in the market place. This is called perceptual positioning and involves the image consumers have of the product/service. You should consider: (a) The specific problems/desires/needs of your targeted market segment(s).
Kationalc: In order to achieve your marketing objective(s) your product/service must have the proper design. Examine
the product/service to ensure that all aspects of it conform to the required perceptual position.
1. Determine Current Product Fit Per Segment
Will the current product/service fulfill the required perceptual position for each of your targeted segment(s)/segment groupings? Describe briefly how it will do so in each case.
2. Describe Required Product Additions/modifications.
For each segment/segment grouping for which the product/service won't fulfill the perceptual positioning, describe briefly the necessary product additions/modifications. Possible product modifications include: the number of products in a product line; functional characteristics; structural characteristics (size, shape, form, material, etc.); changes in packaging, branding, value additions; and alterations in product related services such as warranties, installation, and usage instructions.
3. Formulate Additional Product Strategies
Consider, and if appropriate, record additional product/service strategics that relate to your marketing objective and product positioning. Examples of such strategies include standardizing design or changing manufacturing to increase profits and bundling thc product/service with compatible products/services in order to increase unit sales/share. Be sure that any strategies recorded here do not conflict with your desired perceptual positions.

E. Strategy - Distribution
Rationale: Distribution is a vital element of the marketing mix. The distribution channels (the organizations and people involved) and the physical methods need to be analyzed for each targeted segment to ensure timely delivery, breadth of coverage, cost effectiveness, and other factors. Distribution channels and methods can directly affect perceptual position by enhancing or detracting from the image of the product/service.
I. Describe Distribution Fit Per Segment
Will the current (or planned) distribution system (both channel and physical) match the product/service characteristics and fulfill the required perceptual position for each of your targeted segments/segment groupings? In each case where it will, describe the system and the fit.
2. Describe Additional/Modified Distribution Per Segment
For each segment/segment grouping for which the current (or planned) distribution system (channel and physical) doesn't match the product/service characteristics and/or won't fulfill the perceptual positioning, describe briefly a distribution system which will.
3. Modify Distribution for Efficiency/Effectiveness
Evaluate the distribution strategies described in previous Questions I and 2 in light of your marketing objectives and product positioning. Are there any additions you need to make? Are there more cost effective or efficient methods that still maintain the desired perceptual positioning?

F. Strategy - Price
Rationale: Effective pricing is crucial because of its direct affect on profits. In determining a price structure you must consider costs, demand, the competition's price, and what the price communicates to your customer. Customers include distribution channel members as well as those who influence the decision to buy and final purchasers.
perceptual positiomng4brietty describe the modifications requirements to account for product and distribution costs objectives related to profitability.
3. Formulate Additional pricing strategic
Consider, and if appropriate, record additional pricing strategies that relate to your marketing objective and product positioning. For example, if you want a state of the art quality image which requires premium pricing, and want to capture a large market share, then deep discounting (to a specified segment) may be a plausible strategy. If you have a unique product/ service with a high perceived value, then price may be increased without adversely affecting unit sales/market share.
C. Strategy - Promotion
Rationale: Effective promotion is essential to successful marketing, and all aspects of promotion need to be examined. With whom do you need to communicate? What is the best way to reach them? In what specific ways will you communicate your message/image? What response do you seek, and how do your media channels (including sales people) accomplish the sale? Which is the most cost effective approach?
1. Prepare Refined Messages
Prepare a refined message for each segment/segment grouping using information about your desired product and perceptual positioning. What will you actually tell the customer group about the product/service to create your perceptual position?
2. Describe Optimal Promotional Mix
Is the cur-rent/planned promotional mix (i.e., percent of money and effort spent on advertising, publicity, sales promotion and personal selling) for each segment/ segment grouping the most efficient way to generate sales? Describe the promotional mix you plan to use. Consider the number of targeted customers reached, the frequency with which each customer gets the message, how credible your media sources/methods arc, cost-benefit ratios, etc.
H. Other Strategies
Rationale: Space is provided here for business strategies that do not fit conveniently into the traditional marketing mix of product, distribution, price and promotion
1. Formulate Other Important Strategies
Describe any strategies that arc important to your business, but do not seem to fit conveniently into any of the traditional marketing mix categories.
"quality" to the targeted customer. Tactical plans record specifically how strategies will be implemented.
A. Product/Service
Rationale: The tactical plan for product/service will detail what has been outlined in your product strategy Specific, time-delineated tactical objectives must be set. Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation.
1. Write Tactical Objective for Pro4JuctJS.erv ice
Referring back to the strategic portions of your marketing plan regarding product/service, write a specific, time delineated tactical objective(s) designed to reach your strategic goal for product/service. Explain what your tactic is and what it will achieve. Answers to the following questions are examples of tactical objectives. At what unit cost? If your strategy calls for changes in the product/service, exactly what are the product/service related modifications? When will the modified product be ready to launch The next question will help you delineate what needs to be done in order to meet your objective
2. Specify Activities Required for Product./Service
For each product tactical objective, briefly describe what is to be done, how it is to be done and where it will be done Then decide the following (a) what is required (e g., information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when the)' will be completed, and (d) the cost associated with each activity. Total these costs for use in your operational budget.
B. Marketing Channels
Rationale The tactical plan for marketing channels will detail what has been outlined in your distribution strategy. These channels should include moving a product from the point of production to the point of consumption. Specific, time-delineated tactical objectives must be set. Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation.
1. Write Tactical Objective for Channel Distribution
Referring back to the strategic portion of your marketing plan regarding distribution, write a specific, time delineated tactical objective(s) designed to reach your strategic goal for channel distribution. Explain what your tactic is and what it will achieve. List each channel/channel modification The answer to the following is an example of a tactical objective:
By when will the channels/modified channels be in place? The next question will help you delineate what needs to be done in order to meet your objective.
2. Specify Activities Required for Marketing Channels
For each channel objective, briefly describe what is to be done, how it is to be done and where it will be done. Then decide the following: (a) what is required (e.g., information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when they will be completed, and (d) the cost associated with each activity. Total these costs for use in your operational budget.
C.	Physical Distribution
Rationale: The tactical plan for physical distribution will detail what has been outlined in your distribution strategy. Specific, time-delineated tactical objectives must be set. Then the specific, time-delineated tactical objective(s) designed to reach your strategic goal tor physical distribution. Explain what your tactic is and what it will achieve. Answers to the following questions are examples of tactical objectives. What means of physical distribution will be required for each channel? Which ones are not in place currently? When will each physical distribution system be operational? The next question will help you define- what needs to be done in order to meet your objective.
2. Specify Activitie3 Required for Physical Distribution
For each physical distribution objective, briefly describe what is to be done, how it is to be done and where it will be done. Then decide the following: (a) what is required (e.g., information, equipment, manpower, supplies, materials,) to do these activities, (b) when they will be started, (c) when they will be completed, and (d) the cost associated with each activity. Total these costs for use in your operational budget.
D.	Price
Rationale The tactical plan for price will detail what has been outlined in your pricing strate2 Specific, time-delineated tactical objectives must be set. Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation. For example, what groups/individuals must approve the pricing decisions? During which meeting(s)? Who will present to them'? How will they present the information necessary for the decision?
1. Write Tactical Objective for Pricing
Referring back to the strategic portion of your marketing plan regarding price, write a specific, time-delineated tactical objective(s) designed to reach your strategic goal for pricing. Explain what your tactic is and what It will achieve. Answers to the following questions are examples of tactical objectives. When will prices be set and changed? Exactly who will be charged what price? The next question will help you delineate what needs to be done in order to rout your objective.
2. Specify Activities Required for Pricing Objective
For each price objective, briefly describe what is to be done, how it is to be done and where it will be done. Then decide the following: (a) what is required (e.g., information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when they will be completed, and (d) the cost associated with each activity. Total these casts for use in your operational budget.
E. Advertising
Rationale: The tactical plan for advertising will detail what has been outlined in your promotional strategy. Specific, time-delineated advertising objectives must be set.
Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation. Your plans for advertising should integrate efficiently and effectively with your plans for other elements of the promotional mix.
L Write Tactical Objective for Advertising
Referring back to the strategic portion of your marketing plan regarding advertising, write a specific, time-delineated tactical objective(s) designed to reach your strategic goal for advertising. Explain what your tactic is and what it will achieve. This objective should include: which ads to run, when and where (media sources) they will run, which segment(s) (including channel members and those
where it will be done. Then decide the following: (a) what is required (e.g.,information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when then will be completed, and (d) the cost associated with each activity. Total these costs for use in your operational budget.
H. Publicity
Rationale: The tactical plan for publicity will detail what has been outlined in your promotional strategy. Specific, time-delineated tactical objectives must be set Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation. Your plans for publicity should integrate efficiently and effectively with your plans for other elements of the promotional mix. You should especially consider the credibility and the cost1bencflt ratio of quality publicity versus advertising.
1. Write Tictic4i Objective for Publicity
Referring back to the strategic portion of your marketing plan regarding promotion, with a specific, time-delineated tactical objective(s) designed to reach your strategic goal for public;-y. Explain what your tactic is and what it will achieve Answers to the following questions are examples of tactical objectives. Will you use press releases, feature stones, special events, publicity stunts, and/or political involvement? What public relations activities will be done, when will they be done, and what results will be sought? How will these activities complement the rest of your promotion? The next question will help you delineate what needs to be done in order to reach your objective
2. Specify Activities Required for Publicity
For each publicity objective, briefly describe what is to be done, how it is to be done and where it will be done. Then decide the following: (a) what is required (eg., information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when the'' will be completed, and (d) the Cost associated with each activity. Total these costs for use your operational budget.
1. Other Promotion
Rationale: The tactical plan for other promotion (direct mail, trade shows, etc.) will detail what has been outlined in your promotional strategy. Specific, time-delineated tactical objectives must be set. Then the who-what-where-when-how of things must be specified so that you can implement your ideas and control implementation. Your plans for other promotion should interact efficiently and effectively with your plans for the other elements of the promotional mix.
1. Write Tactical Objective for Other Promotion
If you plan any other promotional activities such as direct mail, trade
shows, etc. that do not seem to fit in any of your other promotional plans, then write specific, time-delineated tactical objectives for them.
2. Specify Activities Required for Other Promotion
For each promotional objective, briefly describe what is to be done, how it is to be done and where it will be done. Then decide the following: (a) what is required (e.g., information, equipment, manpower, supplies, materials) to do these activities, (b) when they will be started, (c) when they will be completed, and (d) the cost associated with each activity. Total these costs for use in your to measure progress toward those outcomes. Information collection, or monitoring systems are developed so that essential feedback is received in a timely manner. Marketers must continually make decisions about program details and revise plans during implementation as necessary. Because marketing management is a continuous, cyclical process, data collected by the monitoring system provides feedback for use in yearly plan updates and future planning.

A. Operational Budgets
Rationale: Operational budgets put all of the tactical budgets together into a complete picture. This allows one to see the totality of expense per category, and serves as a basis of financial control throughout the plan's implementation.
1. Prepare an Operational Budget
Prepare an operational budget for your combined tactical plans. This
budget should include all direct and indirect costs. A worksheet entitled	BUDGET, found under the FINANCIAL menu option, can be used to produce this operational budget produce this operational budget.
B. Final Forecasts
Rationale: Final forecasts arc calculated from the results of all of your analysis and planning. They are used as yardsticks against which outcomes are measured as your plan is implemented. If there is a discrepancy between your marketing objectives and Final forecasts, then your objectives and/or strategics need to be re-evaluated.
1. Calculate Final Forecasts
Consider your marketing objectives and prepare final forecasts. If these forecasts differ from the numbers in your marketing objective, then adjust your objective and/or strategies accordingly. The Final Forecast worksheet found under the Financials option on the main menu can be used. The worksheet can then be brought into this answer.
C. Monitoring Systems
Rationale: Effective and efficient monitoring systems are essential to a successful business. Feedback systems need to be established in order to remain informed about the progress of activities as well as bottom line outcomes. It is important to analyze feedback and record the results of your analysis so that quality decisions can be made. Take note of what works effectively as well as what does not. Be sure to diagnose the real cause of any identified problems. While adjustments in the marketing plan can sometimes wait, it is crucial to detect those that must be made immediately.
1. Specify Reporting Functions, Times and Responsibilities
List which reports will be required to provide the necessary information for monitoring your planned activities and outcomes. Include who will supply these reports and when.
2. Construct Status Reports
Construct routine marketing status reports utilizing activity reviews and/or operational reports along with marketing objectives, final forecasts, budgets and tactical plans. Record successful accomplishments as well as differences between what was expected and what actually occurred.
3. Analyze Differences Between Plans and Outcomes
Analyze and record any differences between what was expected and what actually occurred.