Marketing Plans E-Book

Malcolm McDonald

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 1108

Veröffentlichungsjahr: 2016

Beschreibung

A fully revised and updated 8th edition of the highly renowned international bestseller The 8th edition of this highly acclaimed bestseller is thoroughly revised with every chapter having been updated with special attention to the latest developments in marketing. Marketing Plans is designed as a tool and a user-friendly learning resource. Every point illustrated by powerful practical examples and made actionable through simple, step-by-step templates and exercises. The book is established as essential reading for all serious professional marketers and students of marketing, from undergraduate and postgraduate to professional courses for bodies such as CIM. Above all it provides a practical, hands-on guide to implementing every single concept included in the text. New chapters and content include: * A 'Does it Work' feature throughout demonstrating examples of real successes using the processes in the book * More substantial coverage of consumer behaviour to balance the book's focus with B2B planning * Digital techniques and practices brought fully up to date * Also includes a comprehensive online Tutors' Guide and Market2Win Simulator for those who teach marketing strategy

Leseprobe

Marketing Plans

How to Prepare Them,How to Profit From Them

Eight Edition

Malcolm McDonaldHugh Wilson

This edition first published 2016© 2016 Malcolm McDonald and Hugh WilsonFifth edition published 2002, sixth edition published 2007, both by Elsevier Ltd, seventh edition published2011 by John Wiley and Sons, Ltd

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Library of Congress Cataloging-in-Publication Data Names: McDonald, Malcolm, author. | Wilson, Hugh, author. Title: Marketing plans: how to prepare them, how to profit from them /     Malcolm McDonald, Hugh Wilson. Description: Eighth Edition. | Hoboken : Wiley, 2016. | Revised edition of the authors' Marketing plans,     2011. | Includes bibliographical references and index. Identifiers: LCCN 2016022150| ISBN 9781119217138 (pbk.) | ISBN 9781119217183     (Adobe PDF) | ISBN 9781119217176 (epub) Subjects: LCSH: Marketing–Management. | Marketing–Planning. Classification: LCC HF5415.13 .M255 2016 | DDC 658.8/02–dc23 LC record available athttps://lccn.loc.gov/2016022150

A catalogue record for this book is available from the British Library.

ISBN 978-1-119-21713-8 (paperback) ISBN 978-1-119-21718-3 (ebk) ISBN 978-1-119-21717-6 (ebk) ISBN 978-1-119-30989-5 (ebk)

Cover design: Wiley Cover images: © Petar Ivanov Ishmiriev/Shutterstock

CONTENTS

Preface and acknowledgements

How to use this book to achieve the best results

Learning features

Tutor's guide

An important note to the reader from the authors

Part One: The Marketing Planning Process and the Output

Chapter 1: Understanding the Marketing Process

The Marketing Concept

The Marketing Function

Company Capabilities

The Role of Marketing in Business

The Marketing Environment

Customer Wants

The Marketing Mix

Confusion about what Marketing is – Veneer or Substance?

What Does the Customer Want?

Are Business-to-business, Consumer and Service Marketing Different?

Do You Need a Marketing Department?

Application Questions

Chapter 1 Review

References

Chapter 2: The Marketing Planning Process: The Main Steps

Introduction

What is Marketing Planning?

Why is Marketing Planning Essential?

Are we Talking About a Tactical or a Strategic Marketing Plan?

The Effectiveness of Marketing Planning

How Marketing Planning Fits in With Corporate Planning and Other Functions

The Marketing Planning Process

What Should Appear in a Strategic Marketing Plan?

Marketing Planning Systems Design and Implementation

Requisite Strategic Marketing Planning

The Position of Key Account Planning in the Cycle

The Position of Key Account Planning in Strategic Marketing Planning

In Conclusion

Application Questions

Chapter 2 Review

References

Chapter 3: The Customer and Market Audit Part 1: Understanding Markets and Market Segmentation

Introduction

The Difference Between Customers and CONSUMERS

Market Share

Pareto Effect

Market Definition and Segmentation

Market Segmentation – How to do It

Looking to the Future

Why Market Segmentation is Vital in Marketing Planning

Segmentation Case Histories

Application Questions

Chapter 3 Review

References

Chapter 4: The Customer and Market Audit Part 2: Understanding customer needs and developing value propositions

Introduction

Don’t Waste Money on Poor Market Research

A Process for Understanding What Customers Want

Swot Analyses

Understanding the Real Meaning of Customer Value

Application Questions

Chapter 4 Review

References

Chapter 5: The Customer and Market Audit Part 3: The Product Audit

Introduction

The Importance of the Brand

Category Management

Product Lifecycle

Diffusion of Innovation

Product Portfolio

Unit Costs and Market Share

The Boston Matrix

A Detailed, Step-by-Step Approach to Creating a Portfolio

Combining Product Lifecycles and Portfolio Management

Relevance of Lifecycle Analysis and Portfolio Management to the Marketing Audit

Application Questions

Chapter 5 Review

References

chapter 6: Setting Marketing Objectives and Strategies

Introduction

Marketing Objectives: What They are and How They Relate to Corporate Objectives

So What is a Corporate Objective and What is a Marketing Objective?

How to Set Marketing Objectives

Competitive Strategies

Strategic Marketing Planning: Where to Start

New Product Development/Market Extension/Diversification

Marketing Strategies

Marketing Objectives, Strategies and Profitability

Conclusion

Application Questions

Chapter 6 Review

References

Part Two: The Major Element Of Marketing

Chapter 7: The Integrated Marketing Communications Plan

Introduction

Defining Communications Objectives

Designing the Customer’s Decision Journey

Preparing the Advertising Plan

Digital Communications

Sales Promotion

Chapter 7 Review

Application Questions

References

Chapter 8: The Sales and Key Account Plan

Introduction

Linking Personal Selling to Marketing Strategy

How Important is Personal Selling?

The Role of Personal Selling

Determining the Requisite Number Of salespeople

Determining the Role of Salespeople

Improving Sales Force Productivity

Sales Force Professionalism

Managing the Sales Force

How to Prepare the Sales Plan

The Relationship Between Selling and Kam

How to Manage Key Accounts

Planning for a Key Account Portfolio

The Growing Importance of Kam

Chapter 8 Review

Application Questions

References

Chapter 9: The Multichannel Plan: The Route to Market

Introduction

Selecting Marketing Channels

Physical Distribution

Customer Service

Application Questions

Chapter 10 Review

References

Chapter 10: The Customer Relationship Management Plan

Introduction

The Case for CRM

A Stage Model for CRM Adoption

Integration Maturity

Interaction Maturity

Planning for CRM: The Benefits Dependency Network

Application Questions

Chapter 10 Review

References

Chapter 11: The Pricing Plan

Introduction

Pricing and Accountancy

Objectives and the Product Portfolio

Product Lifecycle

Product Positioning

Competition and Potential Competition

Costs

Channels of Distribution

Gaining Competitive Advantage Through Value-in-Use

Preparing the Pricing Plan

Application Questions

Chapter 11 Review

References

Part Three: Marketing Plans Measurements and Implementation

Chapter 12: Implementation Issues in Marketing Planning

The Implications of Size and Diversity on Marketing Planning

Size

Diversity of Operations

Organizing for Marketing Planning

Organizational Life Phases

The Marketing Planning Process and Corporate Culture

Conclusions

How the Marketing Planning Process Works

Ten Barriers to Marketing Planning

Application Questions

Chapter 12 Review

References

Chapter 13: Measuring the Effectiveness of Marketing Planning

A Three-Level Marketing Accountability Framework

What Counts as Marketing Expenditure?

What Does ‘Value Added’ Really Mean?

Three Distinct Levels for Measuring Marketing Effectiveness

Application Questions

Chapter 13 Review

Acknowledgements

References

Chapter 14: A Step-by-Step Marketing Planning System

Part 1 Marketing Planning Summary

Introduction

The Purpose of Marketing Planning

What is Marketing Planning?

What Should Appear in the Strategic Marketing Plan?

Part 2 A Marketing Planning System

Introduction

Basis of the System

The Marketing Audit

The Contents of a Strategic Marketing Plan

Strategic Marketing Plan Documentation

Contingency Plan

Guidelines for Completion of a One-Year Marketing Plan

Directional Statement

Summary of the Main Features of the Plan

Financial History (Past Five Years)

Major Changes and Events Since the Previous Plan

Major Issues by Strategic Business Unit

Appendices

Timetable

And Finally, a Test to Check the Quality of your Strategic Marketing Plan

Conclusion: Guidelines From the Authors on World-Class Marketing

Marketing Planning: Yes, it really works! Experiences from the real world

Index

EULA

Guide

Cover

Contents

Part

List of Tables

Chapter 1

Table 1.1

Table 1.2

Chapter 2

Table 2.1

Table 2.2

Table 2.3

Table 2.4

Table 2.5

Table 2.6

Chapter 3

Table 3.1

Table 3.2

Table 3.3

Table 3.4

Table 3.5

Table 3.6

Table 3.7

Table 3.8

Table 3.9

Table 3.10

Chapter 5

Table 5.1

Table 5.2

Table 5.3

Table 5.4

Table 5.5

Table 5.6

Table 5.7

Chapter 6

Table 6.1

Table 6.2

Table 6.3

Table 6.4

Table 6.5

Chapter 7

Table 7.1

Table 7.2

Table 7.3

Table 7.4

Table 7.5

Table 7.6

Table 7.7

Chapter 8

Table 8.1

Table 8.2

Table 8.3

Table 8.4

Table 8.5

Chapter 10

Table 10.1

Table 10.2

Table 10.3

Table 10.4

Table 10.5

Chapter 11

Table 11.1

Chapter 12

Table 12.1

Chapter 13

Table 13.1

Chapter 14

Table 14.1

List of Illustrations

Chapter 1

Figure 1.1

: A map of marketing.

Figure 1.2

: Business success.

Figure 1.3

: The matching process.

Figure 1.4

: Continuum of tangible–intangible products.

Figure 1.5

: Continuum of industrial marketing.

Figure 1.6

: Supply chain.

Figure 1.7

: A map of marketing.

Figure 1.8

: Map of the marketing process.

Chapter 2

Figure 2.1

: A typical sales forecast.

Figure 2.2

: Evidence of why the original forecast was wrong.

Figure 2.3

: A major retailer’s trends.

Figure 2.4

: Porter’s generic strategies.

Figure 2.5

: Return on net assets.

Figure 2.6

: Strategy/tactics matrix.

Figure 2.7

: Managerial/tactical orientation.

Figure 2.8

: Managerial strategic/tactical orientation.

Figure 2.9

: Corporate and functional processes.

Figure 2.10

: Map of the marketing process.

Figure 2.11

: The 10 steps of the strategic marketing planning process.

Figure 2.12

: Hierarchy of planning.

Figure 2.13

: Strategic and operational planning timing.

Figure 2.14

: Markets and customers within markets.

Figure 2.15

: A hierarchy of the plan.

Figure 2.16

: The contents of a strategic marketing plan.

Chapter 3

Figure 3.1

: The contents of a strategic marketing plan.

Figure 3.2

: Overview of marketing map.

Figure 3.3

: Define markets and understand value.

Figure 3.4

: The relationship between market share and return on investment.

Figure 3.5

: The ‘80/20’ effect.

Figure 3.6

: Original market map of the marketing books market.

Figure 3.7

: Market map of the market for the acquisition of marketing knowledge.

Figure 3.8

: Non-cumulative diffusion pattern.

Figure 3.9

: The diffusion of innovation curve.

Figure 3.10

: Illustration of the shape of the car market.

Figure 3.11

: Illustration of the shape of the lawn mower market.

Figure 3.12

: The shape of markets from birth to maturity.

Figure 3.13

: Examples of segments for the fertilizer case study.

Figure 3.14

: The photocopier market in the 1970s.

Figure 3.15

: The product/market lifecycle and market characteristics.

Figure 3.16

: The process of developing segments and its position in the marketing process.

Figure 3.17

: Market map – specialized technical equipment – including where decisions are made.

Figure 3.18

: Market map listing the different junction types.

Figure 3.19

: Quantities split between junction types.

Figure 3.20

: Market leverage points on a market map.

Figure 3.21

: Market map – ethical drugs (South Africa).

Figure 3.22

: Market map – office equipment.

Figure 3.23

: Micro-segments.

Figure 3.24

: The process of developing segments and its position in the marketing process.

Figure 3.25

: An undifferentiated market.

Figure 3.26

: Different needs in a market.

Figure 3.27

: Segments in a market.

Figure 3.28

: The market segmentation process summary – developing segments.

Figure 3.29

: Simplified value map for the groceries market.

Figure 3.30

: Example of market definition.

Figure 3.31

: Market screening.

Chapter 4

Figure 4.1

: Hierarchy of planning.

Figure 4.2

: Understand the different category buyers.

Figure 4.3

: An incorrect SWOT format.

Figure 4.4

: ‘Motherhood’ strengths statements.

Figure 4.5

: Guidelines for doing a proper SWOT.

Figure 4.6

: A process for completing a SWOT.

Figure 4.7

: Critical success factors: example.

Figure 4.8

: Strategic marketing planning exercise – SWOT analysis.

Figure 4.9

: Independent schools.

Figure 4.10

: Academic factors.

Figure 4.11

: Summary.

Figure 4.12

: Strategic purchasing.

Figure 4.13

: The lack of differentiation in competitors’ messaging.

Figure 4.14

: Identifying sources of differentiation.

Figure 4.15

: SKF quantified value proposition.

Figure 4.16

: The value chain.

Figure 4.17

: Sources of differentiation in the value chain.

Figure 4.18

: How do you add value through key support activities?

Figure 4.19

: Tetra Pak is a multi-stage, multi-level partner.

Figure 4.20

: Example of a label company to food manufacturers taking over responsibility for almost eliminating their stock-holding.

Figure 4.21

: Advantage to the label company.

Figure 4.22

: Financially quantified value propositions.

Figure 4.23

: Value proposition process.

Figure 4.24

: The ten steps of the strategic marketing planning process.

Figure 4.25

: Worksheet.

Chapter 5

Figure 5.1

: Overview of marketing map.

Figure 5.2

: The contents of a strategy marketing plan.

Figure 5.3

: What is a product?

Figure 5.4

: Product costs.

Figure 5.5

: The commodity slide.

Figure 5.6

: A brand position map.

Figure 5.7

: Bipolar map for detergents.

Figure 5.8

: Brand functionality and personality.

4

Figure 5.9

: Corporate brand positioning.

Figure 5.10

: Global versus local brands.

Figure 5.11

: Category management evolution.

Figure 5.12

: Extending the product lifecycle.

Figure 5.13

: Strategy changes over the product lifecycle.

Figure 5.14

: Non-cumulative diffusion pattern.

6

Figure 5.15

: Cumulative pattern.

Figure 5.16

: Product lifecycle for three products.

Figure 5.17

: New product introductions over time.

Figure 5.18

: Unit cost decline over cumulative output.

Figure 5.19

: The relationship between costs and margin.

Figure 5.20

: Boston Consulting Group and cash flows implications.

Figure 5.21

: Using cash from ‘cash cows’ to invest in ‘stars’ and ‘question marks’.

Figure 5.22

: An unbalanced portfolio forecast.

Figure 5.23

: Avoid rituals such as ‘divest the dogs’.

Figure 5.24

: The nine-box DPM.

Figure 5.25

: The McDonald-Wilson four-box DPM.

Figure 5.26

: A completed DPM.

Figure 5.27

: Short-term profit maximization versus market share and long-term profit maximization.

Figure 5.28

: A business school portfolio.

Figure 5.29

: Incorrect DPM.

Figure 5.30

: Correct DPM.

Chapter 6

Figure 6.1

: Map of marketing.

Figure 6.2

: Determine value proposition.

Figure 6.3

: The contents of a strategic marketing plan.

Figure 6.4

: Hierarchy of objectives and strategies.

Figure 6.5

: Ansoff Matrix.

Figure 6.6

: Guidelines suggested for different positioning on the directional policy matrix.

Figure 6.7

: The importance of market share.

Figure 6.8

: Supply/demand/price model.

Figure 6.9

: Porter’s generic strategies matrix.

Figure 6.10

: Benefits analysis matrix.

Figure 6.11

: Gap analysis.

Figure 6.12

: Ansoff Matrix: degrees of newness.

Figure 6.13

: Profit/division profit improvement options.

Figure 6.14

: New product development in the context of the marketing planning process.

Figure 6.15

: The new product development process.

Figure 6.16

: Alternative pricing models.

Figure 6.17

: Valuing key market segments.

Figure 6.18

: Gap analysis.

Figure 6.19

: Ansoff Matrix.

Figure 6.20

: Ansoff Matrix.

Figure 6.21

: Gap analysis.

Figure 6.22

: Ansoff Matrix.

Figure 6.23

: Ansoff Matrix.

Figure 6.24

: The Ansoff Matrix.

Figure 6.25

: Blank Ansoff Matrix.

Chapter 7

Figure 7.1

: Integrated marketing communications in the context of the marketing planning process.

Figure 7.2

: Developing the integrated marketing communications plan.

Figure 7.3

: A tyre company – directional policy matrix.

Figure 7.4

: Measuring perceived performance against buying criteria.

Figure 7.5

: A simplified typology of communications media.

Figure 7.6

: Brand loyalty ladder: the five stages of communication.

Figure 7.7

: Tracking the customer journey: choosing a movie.

Figure 7.8

: McKinsey’s consumer decision journey.

Figure 7.9

: Diffusion of innovation curve.

Figure 7.10

: Control cell example (1).

Figure 7.11

: Control cell example (2).

Figure 7.12

: The 6Is of e-marketing.

Figure 7.13

: Channel chain diagram – major retailer.

Figure 7.14

: An interaction perspective on communication.

Figure 7.15

: The digital communication mix.

Figure 7.16

: Search engine optimization and paid search: a hotel example.

Figure 7.17

: Sponsorship types.

Figure 7.18

: Sponsorship management cycle.

Chapter 8

Figure 8.1

: Sales productivity matrix.

Figure 8.2

: The hierarchy of objectives.

Figure 8.3

: The customer portfolio.

Figure 8.4

: The profitability of key accounts is still poorly understood.

Figure 8.5

: KAM relationship stages.

Figure 8.6

: Exploratory KAM relationship.

Figure 8.7

: Basic KAM relationship.

Figure 8.8

: Cooperative KAM relationship.

Figure 8.9

: Interdependent KAM relationship.

Figure 8.10

: Integrated KAM relationship.

Figure 8.11

: Example of an outcome of preliminary categorization.

Figure 8.12

: The key account portfolio.

Figure 8.13

: Further guidance on key account matrix.

Figure 8.14

: Key account matrix – insurance example.

Chapter 9

Figure 9.1

: Developing a multichannel plan.

Figure 9.2

: Market map – insurance company.

Figure 9.3

: Segmentation of market for annuities.

Figure 9.4

: Current channel chains – hotel chain.

Figure 9.5

: Coverage map – business-to-business telecoms provider.

Figure 9.6

: Coverage map – BT Global Services.

Figure 9.7

: Channel curve – pensions.

Figure 9.8

: Analysing channel costs – an airline.

Figure 9.9

: The utility producing elements in manufacturing.

Figure 9.10

: Manufacturing flows.

Figure 9.11

: Aligning the interests of the firm and its distributors.

Figure 9.12

: Examples of different routes to market.

Figure 9.13

: The marketing plan and distribution.

Figure 9.14

: Elements of the distribution audit – internal environment.

Figure 9.15

: Elements of the distribution audit – external environment.

Figure 9.16

: Some key distribution decisions.

Figure 9.17

: The service–profit chain.

Figure 9.18

: Service quality: the five dimensions of SERVQUAL.

Figure 9.19

: The increasing costs of goods availability.

Figure 9.20

: The relationship between availability and demand.

Chapter 10

Figure 10.1

: A framework for world-class CRM.

Figure 10.2

: Retaining customers pays off.

Figure 10.3

: Retaining the right customers – a counter example.

Figure 10.4

: The triple benefits of satisfied customers.

Figure 10.5

: A stage model for CRM maturity.

Figure 10.6

: Towards a flexible CRM architecture.

Figure 10.7

: Communications integration.

Figure 10.8

: Scenario analysis.

Figure 10.9

: Scenario analysis and emotions – a travel company.

Figure 10.10

: Organizing and rewarding customers: BT Global Services.

Figure 10.11

: Differences in multichannel consistency across customer groups.

Figure 10.12

: Channel chains – GM Europe.

Figure 10.13

: Inviting interaction – GM’s e-mail newsletter.

Figure 10.14

: Customer profitability of large and small customers.

Figure 10.15

: O2’s vision system.

Figure 10.16

: BDN: a gift manufacturer’s website for retailers.

Chapter 11

Figure 11.1

: The intended effect of a price cut – greater revenue.

Figure 11.2

: The common effect of a price cut – reduced revenue.

Figure 11.3

: How a small reduction in margins can drastically reduce profit.

Figure 11.4

: Pricing based on a target return on costs.

Figure 11.5

: The trade-offs affecting channel margins.

Figure 11.6

: Why margins are only one contributor to the return on net worth.

Figure 11.7

: The cost–experience effect.

Figure 11.8

: How the cost–experience effect impacts on competitiveness.

Figure 11.9

: Skimming versus penetration pricing.

Figure 11.10

: Factors impinging on the pricing decision.

Chapter 12

Figure 12.1

: The potential complexity of marketing planning.

Figure 12.2

: Guidelines for formulization of the marketing planning process.

Figure 12.3

: Marketing planning effectiveness model.

Figure 12.4

: Organizational life phases.

6

Figure 12.5

: Sole owner organizational structure.

Figure 12.6

: Functional organizational structure.

Figure 12.7

: Decentralized organization structure.

Figure 12.8

: A centrally-controlled organization structure.

Figure 12.9

: Sales and marketing separated and combined.

Figure 12.10

: The product market range of Northern Sealants.

Figure 12.11

: The organization structure of Northern Sealants.

Figure 12.12

: Organizing for marketing planning.

Figure 12.13

: A hierarchy of audits.

Figure 12.14

: Interdependence of strategic and operational planning.

Figure 12.15

: The interdependence of top-down/bottom-up planning.

Figure 12.16

: A planning timetable.

Figure 12.17

: Marketing planning for competitive strategy.

Figure 12.18

: Objectives priority matrix.

Figure 12.19

: Marketing planning.

Figure 12.20

: Efficiency of marketing plannings ideal and actual.

Figure 12.21

: Force field diagram (2).

Figure 12.22

: Force field diagram (3).

Figure 12.23

: Force field diagram (4).

Figure 12.24

: Force field diagram (5).

Figure 12.25

: Completed force field analysis.

Figure 12.26

: Marketing planning timetable.

Figure 12.27

: Marketing planning timetable template.

Figure 12.28

: Knowledge and marketing planning.

Figure 12.29

: Marketing planning model.

Chapter 13

Figure 13.1

: Map of the marketing domain and the three-level accountability framework.

Figure 13.2

: Valuing key market segments.

Figure 13.3

: Overall marketing metrics model.

Figure 13.4

: Ansoff matrix.

Figure 13.5

: CSFs: in each segment, defined by the segment.

Figure 13.6

: Marketing metrics model.

Figure 13.7

: Cascading actions from the Ansoff matrix.

Figure 13.8

: Overall marketing metrics model.

Figure 13.9

: ROI – long-term case history.

Chapter 14

Figure 14.1

: Contents of a strategic marketing plan and associated diagnostic tools.

Figure 14.2

: The marketing planning process and output.

Figure 14.3

: Strategic and operational planning cycle.

Marketing Planning: Yes, it really works! Experiences from the real world

Figure A

: Strategic Marketing Planning Process (MPP).

Figure B

: Ansoff Matrix.

Figure C

: The Business Pillars.

Figure D

: Structure follows Strategy in the Business Pillars of typical SME.

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Preface and acknowledgements

Please read this as it contains important information about this book.

The importance of marketing planning is demonstrated by the half million copies of this book that have been sold in English and many other languages since it was first published in 1984.

Since the book's launch, it has helped and encouraged hundreds of thousands of practising managers with the difficult task of marketing planning. Many of them have been kind enough to write expressing their thanks for the book's practical, no-nonsense style and approach to the subject. This has encouraged the first author, Malcolm McDonald, to update the book continually in previous editions, and after the sixth edition, to ask his esteemed colleague Professor Hugh Wilson to join him as co-author. Originally a computer scientist, Hugh brings to the book deep experience in the latest thinking on marketing in a digital world, including integrated marketing communications, e-commerce, multichannel strategy and customer relationship management (CRM). The authors have been working together on how to evolve marketing planning in a digital world for over 20 years.

The purpose of this book is quite simply to explain and demonstrate how to prepare and use a marketing plan. It is equally relevant for consumer, service and industrial goods companies, as well as not-for-profit organizations, since the process is universal.

It is based on our research into the marketing planning practices of industrial, service and retail companies, which has revealed marketing planning as an area of major weakness. Almost without exception, companies that thought they were planning were in fact only forecasting and budgeting, and suffered grave operational difficulties as a result. The problem, as companies face up to the opportunities and challenges of the twenty-first century is not that the philosophy of marketing is not believed; rather it is that most companies, particularly industrial goods companies and many service organizations, have difficulty in making it work.

This is largely because of ignorance about the process of planning their marketing activities, for which little help is provided in the extant body of literature. Books or articles often turn out to be about the management of the several elements of the marketing mix rather than about the process of combining them into a coherent plan. Others treat marketing planning in such a generalized way that it is difficult to distil from them any guidance of operational significance. Finally, there are many excellent papers about individual aspects of the marketing planning process.

The truth is, of course, that the actual process of marketing planning is simple in outline. Any book will tell us that it consists of: a situation review; assumptions; objectives; strategies; programmes; and measurement and review. What other books do not tell us is that there are a number of contextual issues that have to be considered that make marketing planning one of the most baffling of all management problems.

Here are some of those issues:

When

should it be done,

how often

, by

whom

and

how

?

Is it different in a

large

and a

small

company?

Is it different in a

diversified

and an

undiversified

company?

Is it different in an

international

and a

domestic

company?

What is the role of the

chief executive

?

What is the role of the

marketing department

? Who else needs to be involved, and how?

Should marketing planning be

top-down

or

bottom-up

?

What is the relationship between

operational

(one year) and

strategic

(longer-term) planning?

Since effective marketing planning lies at the heart of a company's revenue-earning activities, it is not surprising that there is a great demand for a guide which strips away the confusion and mystery surrounding this subject and helps firms to get to grips with it in a practical and down-to-earth manner.

This book explains what marketing is, how the marketing planning process works, how to carry out a marketing audit, how to set marketing objectives and strategies, how to schedule and cost out what has to be done to achieve the objectives, and how to design and implement a simple marketing planning system.

Our approach is both logical and practical. This view has been confirmed by the hundreds of letters and e-mails referred to above, and by the fact that this book is now a standard text on many marketing courses in universities, and in-company training programmes around the world.

This book includes:

Application questions, to help you personalize the learning.

Exercises at the end of every chapter to enable practising managers to translate the theory into practice.

Mini case studies to exemplify the points being made.

A step-by-step process, with templates, for producing marketing plans.

Additionally, a comprehensive online Tutor's Guide is available for those who wish to teach the subject to others. This Tutor's Guide contains lecture plans, PowerPoint masters, case studies, tutor's discussion points and additional assignments for use by tutors. Please visit www.marketingplansbook.com.

We would like to thank our friends and colleagues for the advice they have given us and material they have generously allowed us to use during the life of this book. To the following we are especially grateful: Dr Chris Bailey, Dr Krista Bondy, Lindsay Bruce, Dave Chaffey, Professor Martin Christopher, Professor Moira Clark, Professor Elizabeth Daniel, Dr Iain Davies, Matt Hobbs, Professor Aamir Khan, Ardi Kolch, John Leppard, Associate Professor Dr Emma Macdonald, Professor Simon Majaro, Dr Stan Maklan, Anne Mollen, Aly Moore, Peter Mouncey, Professor Adrian Payne, Beth Rogers, Professor Lynette Ryals, Dr Brian Smith, Rod Street and Diana Woodburn. To them and the many other scholars and practitioners who have contributed invaluable ideas in specific sections we will always be grateful. Rather than updating the flow of the text by providing complete individual references, we restrict ourselves to a few references at the end of each chapter. For fuller bibliographies, please see the PhD research on which this book is primarily based: details are available from [email protected] or [email protected].

Professor Malcolm McDonaldProfessor Hugh WilsonCranfield University School of ManagementOctober 2016

How to use this book to achieve the best results

At the end of each chapter, you will find a number of application questions. More importantly, there are also a number of exercises designed to help you translate the theory into practice in the context of your own organization.

As you work through this book, you will find that some of the exercises are diagnostic and enable you to ‘plot’ where your company is. Some will help you to understand what might be happening to your organization. Other exercises are more concerned with generating factual information about your organization, its products, its markets or its planning processes. We find this combination of exercises not only provides you with insights and learning about many aspects of marketing planning, but it also helps you to assemble information, which can contribute to a marketing plan for your organization.

Whenever scoring and interpretation are required for an exercise, you will find the answers are provided at the end of each chapter.

This book is written to fulfil three principal needs. The first relates to the process of marketing planning, which, while theoretically simple, is in practice extraordinarily complex, involving, as it does, people, systems and organizational structures. One purpose, then, is to ensure that readers fully understand the process, what the pitfalls are and how to negotiate them.

The second purpose is to ensure that readers know which are the appropriate marketing diagnostic tools, structures and frameworks to use at each stage of the process.

The third and most important purpose, however, is to give both students and managers a nononsense, practical, step-by-step guide on how to prepare a really good, strategic marketing plan that will help their organizations to create sustainable competitive advantage for themselves and for their customers.

KEY AREAS FOR IMPROVEMENTS IN STRATEGIC MARKETING PLANNING: WHERE TO LOOK IN THIS TEXT FOR PRACTICAL GUIDANCE

This help section is based on the analysis of over 700 strategic marketing plans from over fifty multinationals during a period of twenty-five years. A fee was charged for each analysis, so these comments are based on considerably more than just opinions.

Summary of the book

A strategic marketing plan should be a clear and simple summary of key market trends, key target segments, the value required by each of them, how we intend to create superior value (to competitors), with a clear prioritization of marketing objectives and strategies, together with the financial consequences.

Alas, frequently, they come across as diffuse, confusing compilations of unconnected sections, masquerading as marketing plans.

Specific problems encountered and where to look for guidance

Market overviews contain substantially more information than is necessary, with no hint of the implications for marketing activity. See Chapters 2 and 3.

Key segments are rarely identified. ‘Segments’ are often sectors or products, rather than groups of customers with similar needs. See Chapter 3.

The competitive situation is not well analysed and plans appear to assume no activity or reaction by competitors. See Chapter 6.

SWOT analyses rarely pin down convincingly the value that is required by segments. They are frequently too general to lead to any actionable propositions. See Chapter 4.

Our own distinctive competences are rarely isolated and built on. See Chapter 5.

SWOTs are rarely summarized clearly and logically in a portfolio which provides a categorization of the relative potential of each and our relative strengths in each. See Chapter 5.

Marketing objectives are frequently confused with marketing strategies and do not follow logically from the portfolio summary. See Chapter 6.

The resource implications of effecting the marketing plans are not always clear. See Chapter 13.

Communications such as advertising are fragmented and based on habit, rather than being integrated with each other and targeted on the value required by attractive segments. See Chapter 7.

The sales plan is developed in isolation from the marketing plan. See Chapter 8.

Channels are taken for granted, rather than used as a key source of innovation and differentiation. See Chapter 9.

CRM is delegated to IT or operations. See Chapter 10.

There is no particular logic behind pricing. See Chapter 11.

Main differences between the Seventh Edition and this Eighth Edition

Whilst all the chapters have been extensively updated, the most significant changes in this edition are as follows:

A new chapter on understanding needs and developing value propositions has been added as Chapter 4.

The accelerative impact of digital has been reflected in Chapters 7-10.

A new chapter has been added at the end of the book. this is called ‘Marketing Planning; Yes, it works! Experiences from the real world’. It is written by two former directors of multinational companies who have since worked extensively in small and medium enterprises (SMEs). They spell out how the processes set out in this book work perfectly in either domain.

Learning features

This Eighth Edition of Marketing Plans has full pedagogical features as follows:

Summary

Each chapter begins with bullet points which highlight the main features and learning to be covered in the chapter.

Key Concepts

Principal marketing ideas and themes are highlighted as snapshots throughout the text.

Crucial Terms

Concise definitions of important terms and vocabulary are provided in the margin to allow for a smoother, easier reading of the text.

Examples

These provide additional illustrative marketing accounts to contextualize learning.

Marketing Insights

Real-life marketing anecdotes contextualize learning.

Headlines

Highlights taken from the text as marginalized notes bring important points to the attention of the reader.

Case Studies

In-depth studies of marketing experiences show how the theories work in real-world companies.

Application Questions

These appear at the end of each chapter and relate the theory to practice by asking the reader to apply the theory to real-life situations.

Chapter Review

This condenses the main themes of the chapter and directs the reader to relevant exercises for each topic for them to try.

Exercises

These appear at the end of each chapter and are preceded, where necessary, by a brief introduction which informs the reader of the issues and concepts they will find within each exercise. Each exercise helps the reader to translate the theory into practice and reinforces the learning gained from each chapter. Many exercises also end with an ‘interpretation’ to guide the reader in their workings.

Simulation Practice

You now have a great opportunity to practice the ideas in this book. We have teamed up with Market2Win to provide the key tools from the book and give you an opportunity to learn how to use them in a safe environment. This is done by testing your skills against other marketers in a strategic marketing game called Marketing2Win. The game is built on the core ideas in this book and has been played by thousands of students and executives. At the end of each chapter you will see new exercises that are linked to the game. To find out more, go to www.market2win.com/mp.

Tutor's guide

A password protected tutor support site for using Marketing Plans Eighth Edition for teaching and learning can be found at www.marketingplansbook.com.

This includes:

Introduction to the Tutor's Guide and Use of the Test

Case studies and detailed Tutor's Guides

Examples of Marketing Plans

Exercises

Tutor's Notes

Understanding the marketing process

The marketing planning process: The main steps

The customer and market audit Part 1: Understanding markets and market segmentation

The customer and market audit Part 2: Understanding customer needs and developing value propositions

The customer and market audit Part 3: The product audit

Setting marketing objectives and strategies

The integrated marketing communications plan

The sales and key account plan

The multichannel plan: The route to market

The CRM plan

The pricing plan

Implementation issues in marketing planning

Measuring the effectiveness of marketing planning

A step-by-step marketing planning system

Working with Case Studies/Case Studies

Case 1: Eindhoven Containers

Case 2: Multi-electronique et Cie

Case 3: Property Services International

Case 4: International Electrical Supplies

Case 5: Rentlow Cars SA

Case 6: The Dynamic Manager

Case 7: Cranchem marketing plan

Case 8: Lockwell Company Ltd

Case 9: Hydraulic Industries Ltd: Acquisition in West Germany

This website also hosts freely accessible student resources including application questions, exercises and a test bank.

An important note to the reader from the authors

MARKETING PLANNING AND DIGITAL

Since the Seventh Edition, digital marketing, especially in the form of social media, has made great strides forward.

This book, however, is unashamedly NOT about digital, although particularly in the chapters on communications it features prominently and is totally up to date. The reason is simple. Strategic marketing is NOT digital marketing, which is just another communication channel.

In November 2013, Nicola Kemp wrote in Marketing (p.52):

For many companies, the greatest threat is not being out of touch with digital development, but losing sight of the fundamental needs of their customers and the underlying long-term drivers of their business.

In 2014, Helen Edwards, of London Business School, wrote in Marketing (pp. 36–37):

Yes, the fourth wave of digital marketing has arrived, but consumers are drowning in an ocean of branded pap and the interactive lifeline they really want to be thrown is the one whereby companies answer calls promptly, answer calls in person, keep their promises, make better products and contribute to a better world.

The point, dear reader, is that without a robust marketing strategy, it just isn't possible to have any kind of meaningful digital strategy. This book is about how to develop a winning marketing strategy for what is sold and to whom. Only when this has been done is it possible to develop a winning digital strategy.

Producing an effective marketing plan that will give your organization competitive advantage is not easy. It takes knowledge, skills, intellect, creativity and, above all, time.

Everything you need to succeed is in this book, but you must be prepared to devote time to it. It is most definitely not a quick read!

FAST TRACK

However, for those who need a fast track to producing a marketing plan, Chapter 14 will help you. Be careful, however:

A little learning is a dangerous thing. Drink deep, or taste not the Pierian Spring.

(Alexander Pope)

INTERMEDIATE TRACK

For those interested principally in how to tie all marketing initiative together in a strategic marketing plan, it is possible to omit Chapters 7–11, as these contain a level of detail on specific areas of the marketing mix. Again, however, be careful and only omit these chapters if you feel that you already know enough about promotion, pricing, sales, channels, CRM and customer service to be able to outline appropriate strategies in your strategic marketing plan. Also, particularly in Chapters 7, 9 and 10 there are some crucially important state-of-the-art developments in digital marketing described in some detail, each of which is substantially changing the face of marketing.

An important test to help you decide which track you need

It is important that you complete the questionnaire which follows before you start Chapter 1. This test was developed by the authors for the president of a global IT company, who asked what he should be looking for in a world class strategic marketing plan.

Interpretation

In our experience, it is unlikely that many readers will score above five on many of these questions. This is not the point, however. The purpose of the questionnaire is to focus your attention at the beginning of the book on what essential deliverables a marketing plan should produce. If you work carefully through this book and implement it in your organization, you will be able to give yourself high scores in all boxes. Then, you will be a truly market-driven organization!

We have just one more suggestion for readers of this book, which is that they should also complete the very last questionnaire in this book, at the end of Chapter 14. This will most certainly alert readers to the need to focus on the contents of this research-based book.

Professor Malcolm McDonaldProfessor Hugh Wilson

ARE YOU GETTING THESE ESSENTIAL DELIVERABLES FROM YOUR STRATEGIC MARKETING PLAN?

Market structure and segmentation

Is there a clear and unambiguous definition of the market you are interested in serving?

Is it clearly mapped, showing product/service flows, volumes/values in total, your shares and critical conclusions for your organization?

Are the segments clearly described and quantified? These must be groups of customers with the same or similar needs, not sectors or demographic groups.

Are the real needs of these segments properly quantified, with the relative importance of these needs clearly identified?

Score out of 10

Differentiation

Is there a clear and quantified analysis of how well your company satisfies these needs compared to competitors?

Are the opportunities and threats clearly identified by segment?

Scope

Are all the segments classified according to their relative potential for growth in profits over the next three years and according to your company's relative competitive position in each?

Are the objectives consistent with their position in the portfolio (volume, value, market share, profit)?

Are the strategies (including products, price, place and service) consistent with these objectives?

Are the key issues for action for all departments clearly spelled out as key issues to be addressed?

Value capture

Do the objectives and strategies add up to the profit goals required by your company?

Does the budget follow on logically from all of the above, or is it merely an add on?

Total score

Part OneThe Marketing Planning Process and the Output

Introduction to Chapters 1-6

Chapters 1-6 constitute the main purpose of this book, which is to spell out in detail what is required at each stage of the strategic marketing planning process. Each chapter leads logically on to the following chapter until a complete picture is provided of the actions required at each stage. Worksheets are provided to enable users to build their plan as they proceed.

Chapter 1UNDERSTANDING THE MARKETING PROCESS

SUMMARY

What marketing is

Its role in getting the best out of an organization’s asset base

The link between the external environment, customers and their needs and the marketingmix

Clearing up the confusion surrounding marketing’s role

Clarification of what customers look for in their suppliers

The differences and similarities between consumer, service and industrial marketing

Whether a marketing department is essential

Exercises to turn the theory into actionable propositions

Readers who are already wholly familiar with the role of marketing in organizations may wish to go straight to Chapter 2, which begins to explain the marketing planning process

THE MARKETING CONCEPT1

In 1776, when Adam Smith said that consumption is the sole end and purpose of production, he was in fact describing what in recent decades has become known as the marketing concept.

The central idea of marketing is of a matching between a company’s capabilities and the wants of customers in order to achieve the objectives of both parties.

It is important at this stage to understand the difference between the marketing concept (often referred to as ‘market orientation’) and the marketing function, which is concerned with the management of the marketing mix. The management of the marketing mix involves using the various tools and techniques available to managers in order to implement the marketing concept.

For the sake of simplicity, these are often written about and referred to as the 4Ps, these being Product, Price, Promotion and Place, although today many scholars include a number of additional Ps, such as People and Process.

However, before any meaningful discussion can take place about how the marketing function should be managed, it is vital to have a full understanding about the idea of marketing itself, and it is this issue that we principally address in this chapter.

The marketing concept implies that all the activities of an organization are driven by a desire to satisfy customer needs.

For readers who are interested in a history of marketing and the role of key players like Levitt, Kotler, Hunt, Alderson, Holbrook and others, please refer to Jones (1999) in the references section at the end of the chapter.1

THE MARKETING FUNCTION

There are many definitions of marketing and much confusion about what it is. The following definition should clarify this for readers.

Marketing is a process for:

Defining markets.

Quantifying the needs of the customer groups (segments) within these markets.

Determining the value propositions to meet these needs.

Communicating these value propositions to all those people in the organization responsible for delivering them and getting their buy-in to their role.

Playing an appropriate part in delivering these value propositions (usually only communications).

Monitoring the value actually delivered.

For this process to be effective, organizations need to be consumer/customer driven.

This definition is represented as a –map’ in Figure 1.1. This definition and map are important because we will refer to them throughout the remainder of this book.

Figure 1.1: A map of marketing.

Starting at the top and moving clockwise, it should be pointed out that the first two boxes are concerned with strategies for markets, whereas the bottom box and the box on the left are concerned with implementing the strategies, once formulated. The fundamental difference between strategies and tactics will be expanded on in Chapter 2.

COMPANY CAPABILITIES

For now, let us return to the notion of bringing about a matching between a company’s capabilities and the wants of its customers. In Chapter 4 we will explain what we mean when we talk about customer wants. But for now it is important to understand what we mean when we talk about a company’s capabilities. To explain this more fully, let us imagine that we have been made redundant and have decided to set ourselves up in our own business.

The first thing we would have to do is to decide what it is that we can actually do. In answering this question we would quickly realize that our actual knowledge and skills restrict us very severely to certain obvious areas. For example, it would be difficult for a former sales manager to set himself up in business as an estate agent, or for an estate agent to start a marketing consultancy, unless, of course, both had the necessary skills and knowledge. A little thought will confirm that it is exactly the same for a company.

Many commercial disasters have resulted from companies diversifying into activities for which they were basically unsuited.

One such case concerns a firm making connectors for the military and aviation markets. When these traditional markets went into decline, the company diversified into making connectors for several industrial markets such as consumer durables, automobiles, and soon. Unfortunately these markets were so completely different from the ones that the company had been used to that they quickly went into a loss-making situation. Whereas the connector which the company had previously manufactured had been a highly engineered product made to the specifications of a few high technology customers, the company now had to mass produce simple connectors for broad markets. This meant making for stock and carrying field inventory. It also meant low competitive prices. The sales force did not know how to cope with the demands of their new markets. They had been used to making one or two calls a day and to having detailed technical discussions with buyers, whereas now they were expected to make eight or nine calls a day and to sell against many competitive products. Furthermore, the company just did not have the right image to succeed in the market. The results of all this were very serious financial losses.

The lesson simply is that all firms have a unique set of capabilities in the form of resources and management skills which are not necessarily capable of taking advantage of all market opportunities as effectively, hence as competitively, as other firms. To summarize, the matching process between a company’s capabilities and customer wants is fundamental to commercial success. That this is so will become clearer as we get further into the task of explaining the role and the nature of marketing.

THE ROLE OF MARKETING IN BUSINESS

What causes success in the long run, by which we mean a continuous growth in earnings per share and in the capital value of the shares, has been shown by research2 to depend on four elements as shown in Figure 1.2.

An excellent core product or service and all the associated R&D, which closely matches the wants of the organization’s target segments. Clearly, marketing will have a heavy input into this process. All this is showing is that companies with average products deserve average success.

Excellent, world class, state-of-the-art operations. All this is saying is that inefficiency today is likely to be punished. Marketing should, of course, have an input to defining operational efficiency in customer satisfaction terms. Where it is not allowed to, because of corporate culture, quality often becomes a sterile token.