8.10 - Planning the Marketing Strategy
The process and elements of marketing planning
Marketing planning involves creating a suitable marketing strategy that combines different aspects of the marketing mix. This process ensures that all marketing efforts align with the business's goals and stay within financial limits.
The marketing mix
The marketing mix consists of four main components, often called the 4Ps, which need to work together effectively:
- Product - Focuses on the design, features, and performance of what the business offers.
- Price - Determines how much customers pay, considering factors like costs and competition.
- Promotion - Involves communicating with customers through advertising, sales promotions, or public relations.
- Place - Deals with how products reach customers, such as through shops, online platforms, or distributors.
All marketing activities must support the business's objectives and fit within the available budget to achieve the best results.
Contents of a marketing plan
A marketing plan is a detailed document that outlines how a business will promote its products or services. It includes several key sections to guide the strategy and ensure it is practical.
| Section | Description |
|---|---|
| Purpose and mission | Explains why the plan exists (e.g., launching a new technology product or service) and includes the business's mission statement with background details. |
| Situational analysis | Assesses the current position using market research, including product range, customer profiles, competitor strategies, PEST factors (political, economic, social, technological), and SWOT analysis (strengths, weaknesses, opportunities, threats). |
| Marketing objectives | Sets specific targets, such as sales volumes in units or value by a certain date, market share percentage, growth rates, or profit margins on new items; these should be SMART (specific, measurable, achievable, relevant, time-bound) for tracking progress. |
| Marketing strategy | Describes the approach to meet objectives, such as targeting mass markets or niche groups, selling to current customers, entering new segments, or expanding internationally. |
| Marketing mix | Details the 4Ps tactics, including unique selling points (USPs) for products, pricing methods like skimming (high initial prices) or penetration (low prices to gain share), promotion techniques, and distribution channels; explains how these integrate. |
| Marketing budget | Outlines financial resources, specifying spending on each promotion type with a monthly schedule, ensuring total costs do not exceed the allocated amount. |
| Executive summary and timescale | Provides a short overview of the entire plan and a timeline for putting it into action. |
The strategic planning cycle
The strategic planning cycle is an ongoing process that helps businesses review and adjust their marketing plans. It ensures strategies remain effective by regularly evaluating performance.
Steps in the strategic planning cycle
- Set marketing objectives to define desired outcomes.
- Research internal strengths and weaknesses, plus external opportunities and threats.
- Establish the overall marketing strategy based on this analysis.
- Plan how to implement the strategy, including timelines and responsibilities.
- Review progress by comparing results against objectives to spot any shortfalls.
- Revise the strategy if needed, then repeat the cycle for continuous improvement.
This cycle supports adapting to changes and refining future plans based on what has worked or failed.
Benefits and limitations of marketing planning
Marketing planning is a vital part of wider business planning, but it has both advantages and drawbacks that businesses must consider.
Benefits of marketing planning
- Shows viability - Highlights whether the market is suitable, if profits are likely, and if tactics are appropriate.
- Reduces risk - Uses clear targets, research, and a unified approach to avoid costly mistakes.
- Guides other areas - Gives direction to departments like finance (for budgeting), operations (for production), and human resources (for staffing needs).
Limitations of marketing planning
- Time and skill demands - Takes significant effort and knowledge from managers, which can be a burden.
- Inflexibility in change - May not suit fast-moving markets if the plan is too rigid and hard to update.
- Reliance on research - Becomes ineffective if built on poor or incomplete market data, leading to misguided decisions.