MARKETING PLANNING

PROCESS AND
COMPONENTS

Steps in the Planning

Process
Step 1: Update the facts about
the past.
Data collected for marketing planning
purposes are often provisional or
estimated.
For example, planning for 2017 takes
place in 2016. At that time, annual data on
market sales or share would be available
only for 2015 at best and often only for
2014.

 Step 2: Collect background data.

Data collection focuses on information
available about the current situation, which
forms the situation analysis part of the plan.

Step 3: Analyze historical and

background data.
a) Analyze the existing data to forecast
competitors actions, the behavior of
customers, economic conditions, and so
forth.
b) This analysis leads to delineating key
opportunities and threats to the business.

 Step 4: Develop objectives, strategies

and action programs.
To formulate objectives, strategies, and
marketing mix decisions.
Thus, this part of the process generally
involves
a) Setting product objectives,
b) Developing strategies and programs to achieve
the objectives,
c) Comparing programs in terms of their abilities to
achieve objectives within the terms of company
policies and legal constraints, and
d) Selecting a basic objective, strategy, and
program combination.

 Step 5: Develop pro forma financial

statements.
Such statements typically include budgets
and profit-and-loss figures.

Step 6: Negotiate.
The marketing plan implemented without
several rounds of negotiations with senior
management.

Step 7: Measure progress.

To correct the plan if the environment
changes within the planning period, progress
toward stated objectives must be monitored.

 Step 8: Audit.
a) To determine variances of planned versus
actual results and sources of the
variances.
b) This audit provides important diagnostic
information for both current and future
planning efforts.
c) Acts as a source of feedback on the
planning effort.

Conclusion:
The planning sequence is therefore a
logical flow of events leading from data
collection and analysis to strategy
formulation to auditing the performance of
the plan.

I. Executive Summary
II. Situation Analysis
A. Category/competitor definition
B. Category analysis
C. Company and competitor analysis
D. Customer analysis
E. Planning assumptions
III. Objectives
IV. Product/Brand Strategy
V. Supporting Marketing Programs
VI. Financial Documents
VII.Monitors and Controls
VIII.Contingency Plans

The Executive Summary

A senior manager often must review many
marketing plans, so a brief summary of the
marketing plan focusing on the objectives,
strategies, and expected financial
performance is necessary.
Example: an Internet-based service.

Situation Analysis
The Situation Analysis contains the data
and concomitant analysis so vital to
developing sound marketing strategies.
It is the homework part of the marketing
plan; no strategy should be developed
without first analyzing is composed of six
major parts.
a) Category definition
b) Category analysis
c) Competitor analysis
d) Resource analysis
e) Customer analysis
f) Planning assumptions

Marketing Objectives/ Strategy

It is logical to follow the background
assessment by the strategy portion of the
plan, which includes two sections.
o Where do we want to go?
o How are we going to get there?

Supporting Marketing Programs

This is the implementation part of the
plan.
Decisions about pricing, channels of
distribution, customer service programs,
advertising, and other relevant marketing
programs.

Financial Documents
The financial documents report the budget and
pro forma profit-and-loss or income statements.
In fact, the profit-and-loss statements are often
the key element in securing approval for the
plan.

Monitors and Controls

The monitors and controls section specifies the
type of marketing research and other
information necessary to measure progress
toward achieving the stated objectives.

Contingency Plans
Particularly in dynamic markets where
either new products or new competitors
create the need for changes in strategy
before the end of the plans horizon.