An important point that you should remember here is that marketing planning, like any other planning process, is an iterative process and has to be done on a continuing basis. In other words, what is needed is constant monitoring, redefinition, adaptation and re-evaluation of objectives and strategy, its implementation and control in an effort to obtain maximum payoff from ever-changing market situations.
Market situation: Data on the target market served like the size and growth of the market for the past several years, and customer needs, perceptions and buying behavior trends.
Product situation: Data on sales, prices, contribution margins and net profits for each major product for the past several years.
Competitive situation: Data on major competitors in respect of their size, goals, market share, product quality, marketing strategies and other relevant characteristics that is likely to help in understanding and predicting their behaviour.
Distribution situation: Data on the number and value of the units sold in each distribution channel together with the changes that are taking place in the power and importance of each channel and also the changes in the trade relations mix like prices trade terms, etc., required to motivate channel members.
Macro-environment situation: Data on changing trends in respect of political/legal, technological, demographic, economic and socio-cultural factors having a bearing on the company’s products.
This matrix shows the strategic aspects in the overall marketing plan and their inter-relatedness. It also emphasizes the way in which the marketing mix decisions should be approached i.e., by combining the marketing strategy decisions with the marketing mix decisions. To help you to further understand the relationship between marketing mix and marketing strategy, we are listing below some of the appropriate and matching marketing mix variables that may be decided upon in the context of marketing strategy decisions.
Product: Options, models to be marketed, modifications for specific target market (if any), product simplification, invention, service and warranty system, spare parts.
Price: Skimming vs. penetration, price relative to current and potential competition.(Skimming means charging an initial high price for a new product to capitalise on the novelty value of the product while penetration pricing refers to the practice of charging an initial low price for a new product to gain an entry into a competitive market).
Promotion: Budget, theme, media, timing. If major resources are to be committed, include plan for measurement of promotional effectiveness, feedback from the marketplace and marketing research.
Distribution channels: Mode of market entry, functions to be performed by channel members, margins, promotional allowances (if any), short-term vs. long-term commitments
source: Unit 2 : Marketing Planning and Organisation- Marketing Management WOU online course material
source: Unit 2 : Marketing Planning and Organisation- Marketing Management WOU online course material
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