{"id":196,"date":"2018-10-31T09:14:40","date_gmt":"2018-10-31T09:14:40","guid":{"rendered":"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=196"},"modified":"2018-10-31T09:54:08","modified_gmt":"2018-10-31T09:54:08","slug":"marketing-planning","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/chapter\/marketing-planning\/","title":{"rendered":"Marketing Planning"},"content":{"raw":"<div>\r\n\r\n<strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome:<\/strong>\r\n\r\nAfter completing this module, the students will be able to:\r\n<ul>\r\n \t<li>Understand the concept of marketing planning<\/li>\r\n \t<li>Explain the process of marketing planning<\/li>\r\n \t<li>Understand the significance of marketing planning<\/li>\r\n \t<li>Describe the essentials of effective marketing planning<\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Meaning<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Planning is necessary for all marketing activities. A firm cannot survive without considering changing business environment and planning its efforts accordingly to suit the changes and ensure business success. The change and growth bring new opportunities but they also bring various risks. Planning helps in minimizing risk while taking advantage of opportunities.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources. Marketing planning involves decision making which makes use of detailed information collected through internal records and surveys or market research. It results into detailed and systematic programme of actions to achieve marketing goals and objectives.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Marketing planning means deciding in advance what to do, when to do, how to do and who will do a particular marketing task. It is a managerial function of determining the future course of action of marketing department by assessing marketing environment, internal environment, past events and establishing a plan for total marketing programme to facilitate execution and control for better achievement of marketing objectives. The success of brands like Amul butter, Dettol, Colgate toothpaste is the result of marketing planning organized successfully. Marketing planning is important for success in today\u2019s environment.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Marketing Planning Process<\/strong><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The process of marketing planning is complex and includes <\/span>following<span style=\"text-align: initial;font-size: 1em\"> steps :<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(i) A<\/strong><strong style=\"text-align: initial;font-size: 1em\">nalysing marketing environment: <\/strong><span style=\"text-align: initial;font-size: 1em\">To start with any planning, it is necessary that first of all the prevailing external environment is assessed. The goods produced are to be offered to the consumers or buyers and they are part of <\/span>external<span style=\"text-align: initial;font-size: 1em\"> environment. The study of their preferences, tastes, buying motives, willingness to buy, paying capacity and desire for credit will help in formulating a realistic marketing plan. There is also a need to assess the intensity of competition which may emerge from existing firms, new entrants and firms dealing in substitute products. Competitors\u2019 marketing strategies and policies should be assessed. It will provide direction for effective planning. Apart from this, political, economic, social, cultural, technological, legal, demographic and ecological factors must be <\/span>analysed<span style=\"text-align: initial;font-size: 1em\">. This analysis will reveal opportunities or threats for the firm. It will also give clue about potential demand. On the basis of this analysis, the firm can prepare itself with effective marketing plans and programmes to act as early beginners for availing opportunities or protect from threats emerging from the environment. The firm, thus, prepares the customers profile, suppliers profile, industry profile, market profile and competitor profile for better assessment of <\/span>environment<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(ii)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Assessing the internal environment : <\/strong><span style=\"text-align: initial;font-size: 1em\">The firm assesses the internal environment to determine its own strengths and weaknesses. It may be its production capacity, product, manpower, technology, financial resources or marketing capabilities. Outdated technology, inadequate working capital, <\/span>high<span style=\"text-align: initial;font-size: 1em\"> cost of production, less trained workers or low productivity could be weaknesses of some firms. However firm\u2019s better technology, <\/span>large<span style=\"text-align: initial;font-size: 1em\"> network of distributors, innovative product, large product range, high quality, large market base or large production capacity could be its strengths (all or some of these mentioned variables) which may be used to counter competitive moves and cover its weaknesses.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(iii)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Setting marketing objectives: <\/strong><span style=\"text-align: initial;font-size: 1em\">Objectives are the end results to be achieved. It is necessary to lay down marketing objectives first so as to <\/span>channelise<span style=\"text-align: initial;font-size: 1em\"> all marketing activities towards <\/span>achievement<span style=\"text-align: initial;font-size: 1em\"> of these objectives. Marketing efforts will get a direction when objectives are established. Marketing objectives should be set in the light of <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> overall objectives. Marketing manager sets marketing objectives or targets which may be financial or non-financial. Financial marketing objectives are <\/span>specific<span style=\"text-align: initial;font-size: 1em\"> rate of return on investment, gross profit to sales, sales revenue or certain market share. Non-financial marketing objectives are <\/span>utilization<span style=\"text-align: initial;font-size: 1em\"> of production capacity, building corporate image, creating awareness about <\/span>product<span style=\"text-align: initial;font-size: 1em\"> etc. The marketing objectives should be clear, specific and realistic.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(iv)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Framing marketing policies: <\/strong><span style=\"text-align: initial;font-size: 1em\">Policies are the general statements which provide guidance to managers in their decision making. These act as <\/span>guide<span style=\"text-align: initial;font-size: 1em\"> to thinking. Marketing policies define boundaries within which decisions can be taken and directed towards the attainment of marketing objectives. Various marketing policies are formulated keeping in mind marketing objectives. These may relate to product, price, distribution or promotion.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(v)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Developing marketing strategy : <\/strong><span style=\"text-align: initial;font-size: 1em\">Strategy is a competitive policy. It aims at counteracting the market changes. Marketing strategy is a comprehensive and integrated plan of action designed to achieve marketing objectives. For formulating <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> strategy, a firm first decides <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market by <\/span>analysing<span style=\"text-align: initial;font-size: 1em\"> the market and selecting some segments as it thinks appropriate i.e. market segmentation is done and <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market is\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">selected. The customers\u2019 profile, characteristics, buying <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\"> or motives in <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market are studied which will help in finalizing marketing mix. Further product positioning and product differentiation <\/span>is<span style=\"text-align: initial;font-size: 1em\"> decided. After this, an appropriate marketing mix is developed. The relative weightage of each component i.e. product, price, promotion and distribution in <\/span>total<span style=\"text-align: initial;font-size: 1em\"> marketing programme is decided and the impact of uncontrollable factors on this marketing mix is determined. <\/span>Various<span style=\"text-align: initial;font-size: 1em\"> product, price, distribution <\/span>and<span style=\"text-align: initial;font-size: 1em\"> promotion strategies are decided for the target market. Different strategies are co-ordinated for developing <\/span>overall<span style=\"text-align: initial;font-size: 1em\"> marketing strategy.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(vi)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Formulating functional plans and programmes <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Next, for the success of marketing strategy, detailed functional plans are prepared. These are the sub-plans and include:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Sales-force plan<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Pricing plan<\/li>\r\n \t<li style=\"text-align: justify\">Sales and profit plan<\/li>\r\n \t<li style=\"text-align: justify\">Product mix plan<\/li>\r\n \t<li style=\"text-align: justify\">Distribution channels plan<\/li>\r\n \t<li style=\"text-align: justify\">Sales promotion plan<\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cash flow plan<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Advertising plan<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: justify\">\u00a0 The functional plans are activity related plans. These plans or sub programmes are consolidated into marketing programme. Programme is a sequence of activities designed to implement policies and achieve objectives. Programme establishes the time schedule. Thus various sub-programmes as well as overall marketing programme are prepared which chalk out sequence of activities and time schedule.<\/p>\r\n&nbsp;\r\n\r\nThis comprehensive marketing programme becomes the marketing plan.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>(vii)\u00a0<\/strong><strong>Preparing secondary plans: <\/strong>After preparing marketing plan, there is need to determine the resources required i.e. physical, financial and human resource to implement the plan. Physical resources mean warehousing or material handling equipment. Financial resources mean amount or finance required to carry out various marketing operations and human resources mean manpower required to implement the plan.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\"><strong>(viii)\u00a0<\/strong><strong>Implementing the plan: <\/strong>The marketing plan designed and resources arranged are executed to achieve the defined marketing objectives. However, for effective planning, it is essential that planning is properly monitored and controlled.<\/p>\r\n<strong>\u00a0<\/strong>\r\n\r\n<strong>4.\u00a0<\/strong><strong>Marketing plans<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Marketing planning involves decision making that is reflected through marketing plan\/plans. Marketing plan is a document of future course of action specifying in detail the marketing objectives of firm and the way marketing manager is going to use marketing mix components for achieving marketing objectives.<\/p>\r\n&nbsp;\r\n\r\n<strong>4.1 Types of marketing plans<\/strong>\r\n\r\n&nbsp;\r\n\r\nMarketing plans can be classified as structural or functional plans and time based plans.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Structural plans are based on the functions of marketing department. These plans are sales-force plan, pricing plan, advertising and sales promotion plan, physical distribution plan, distribution\u00a0<span style=\"text-align: initial;font-size: 1em\">channel plan, marketing research plan or product mix plan. These specific plans are made and on the basis of these plans, a <\/span>well integrated<span style=\"text-align: initial;font-size: 1em\"> marketing plan is designed.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Time based<span style=\"text-align: initial;font-size: 1em\"> plans are the plans which show the time dimensions for marketing plans. There are short term marketing plans and long term marketing plans. Short term marketing plans are normally for a period of upto one year. Such marketing plans relate to advertising, sales-force recruitment, product pricing, distribution channel etc.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Long-term plans are of more than one year and may extend to 5 or 10 years. These plans relate to entering new markets, developing new products or following vertical or horizontal marketing systems.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Types of Marketing Planning<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Marketing planning is a process and can be classified on the basis of level of management at which it is initiated. It can be of three types such as:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Strategic Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">Strategic planning is the process of determining how to attain firm\u2019s marketing objectives with the help of available resources. It is done at top level and involves the assessment of strengths and weaknesses of firm. It has a wider scope. Strategic planning involves a longer perspective for eight or ten years. The things are assessed in terms of their <\/span>long term<span style=\"text-align: initial;font-size: 1em\"> consequences. The strategic plan of the firm can be widening the market base.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Tactical Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">Tactical planning is done to meet specific requirements and its duration is small. It is undertaken by <\/span>middle level<span style=\"text-align: initial;font-size: 1em\"> management to evaluate the performance of a particular product or market.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Operational Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">It relates <\/span>with planning<span style=\"text-align: initial;font-size: 1em\"> of routine marketing activities. This is done at <\/span>lower<span style=\"text-align: initial;font-size: 1em\"> level of management i.e. by supervisory staff. Operational planning has <\/span>narrow<span style=\"text-align: initial;font-size: 1em\"> scope. It is done for a short period. For example, operational planning may relate to improvement in present period sales of one product.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 6.\u00a0<\/strong><strong>Importance of Marketing Planning<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Marketing planning has assumed an important role in the survival and growth of firm. It helps in foreseeing the opportunities and devising ways to take advantage of them. Marketing planning is important as it provides numerous benefits such as:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>\u00a0<\/strong><strong>Helps to foresee the future: <\/strong>Planning is the process of thinking before doing. It involves assessing the past performance and predicting the future. Marketing manager foresees the future and plans the things in best possible manner. Efforts are made to identify the likely future events and designing a course of action to meet market needs.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Optimum utilization of resources: <\/strong><span style=\"text-align: initial;font-size: 1em\">The physical, finance and human resources are assessed and <\/span>course<span style=\"text-align: initial;font-size: 1em\"> of action is planned accordingly. An effective marketing mix is developed as per <\/span>organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> resources and prevailing external environment. The resources are allocated in a way that firm will get <\/span>maximum<span style=\"text-align: initial;font-size: 1em\"> market share. The activities are <\/span>co-ordinated<span style=\"text-align: initial;font-size: 1em\"> well which reduces uncertainties and wastages. <\/span>Product<span style=\"text-align: initial;font-size: 1em\"> is developed as per customer need, realistic prices are set, effective distribution channel is employed, best promotional tools are used which ensure a complete package with assured returns.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Helps in knowing opportunities and threats : <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing planning involves scanning of environment i.e. political, social, cultural, legal, demographic factors etc. Such scanning reveals opportunities or threats prevailing in the environment. <\/span>Course<span style=\"text-align: initial;font-size: 1em\"> of action is planned\u00a0<\/span>in advance to make best<span style=\"text-align: initial;font-size: 1em\"> possible use of <\/span>probable<span style=\"text-align: initial;font-size: 1em\"> opportunity. Plans are made to reduce the impact of probable events representing <\/span>threat<span style=\"text-align: initial;font-size: 1em\"> to firm\u2019s existence. <\/span>Firm<span style=\"text-align: initial;font-size: 1em\"> is prepared with better action plans to minimize the impact of dreadful events likely to occur in near future. There will be no need <\/span>of<span style=\"text-align: initial;font-size: 1em\"> crisis management.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordinated efforts : <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing programme is prepared by giving due <\/span>weightage<span style=\"text-align: initial;font-size: 1em\"> to each component of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> mix. An integrated plan is developed with <\/span>right<span style=\"text-align: initial;font-size: 1em\"> mixture of price, product, promotion and distribution activities. An organized and <\/span>well co-ordinated<span style=\"text-align: initial;font-size: 1em\"> marketing programme is chalked out for successful implementation of marketing strategies. Thus, marketing planning helps in synchronizing various marketing activities and achieving marketing objectives through <\/span>co-ordinated<span style=\"text-align: initial;font-size: 1em\"> efforts.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Management by objectives is possible: <\/strong><span style=\"text-align: initial;font-size: 1em\">In marketing planning, marketing objectives are set and communicated to everyone concerned. These objectives act as standards against which performance of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> manager and other marketing staff is measured. Everyone remains conscious and focused. Periodic meetings are conducted to see the smooth implementation of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> programme. At the end of a definite period, performance is assessed in terms of marketing objectives achieved. Thus, management by objectives is possible with the help of marketing planning.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Management by exception is possible: <\/strong><span style=\"text-align: initial;font-size: 1em\">Top management has very little time to devote in day to day functioning of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> department. In market planning, marketing objectives are laid down, marketing policies and strategies are framed and detailed marketing programme is prepared. Thus, middle level and lower level management <\/span>is<span style=\"text-align: initial;font-size: 1em\"> clear about each and every aspect. They do not need clarifications and direction time and again from top management. Thus, top management is free to devote much time <\/span>for<span style=\"text-align: initial;font-size: 1em\"> strategic planning. It needs to interfere only in exceptional matters. There is no need to interfere in routine matters if everything is going well.\u00a0<\/span>Similarly, marketing<span style=\"text-align: initial;font-size: 1em\"> manager will be able to spare more time for <\/span>co-ordination<span style=\"text-align: initial;font-size: 1em\"> and control as the marketing programme is chalked out properly. The authority can be delegated to subordinates for proper execution, thus, making management by exception also possible for <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> manager.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Facilitates control : <\/strong><span style=\"text-align: initial;font-size: 1em\">Control means determining the actual performance, measuring it with standards or expected performance, finding out deviation and taking corrective measures. In marketing planning, marketing objectives act as standards against which performance of marketing department is evaluated, deviation from standards is ascertained, reasons for such deviation are studied and corrective action, if needed, is taken. Without planning, control is not possible. Marketing planning sets objectives which are used as standards.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n\u00a0 \u00a0 7.\u00a0<strong>Limitations of marketing planning<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Marketing planning cannot be effective for every firm. There are few limitations or obstacles to effective planning which are described below:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Inaccurate data : <\/strong>Marketing planning is based on detailed information collected from various sources. It will be effective when data is scientifically collected and estimates and forecasts are logically made. If data is not reliable, then decisions taken on the basis of this data will be unreliable. In such cases, marketing planning will lose its value.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Resistance to change: <\/strong><span style=\"text-align: initial;font-size: 1em\">In some <\/span>organisations<span style=\"text-align: initial;font-size: 1em\">, marketing personnel <\/span>do<span style=\"text-align: initial;font-size: 1em\"> not like changes. Their passive outlook to new ideas makes marketing planning ineffective. It becomes difficult to achieve marketing objectives. Sometimes, in a firm, planning may require frequent changes for some period but non-co-operation of marketing staff to make changes becomes a problem.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">External Factors: <\/strong><span style=\"text-align: initial;font-size: 1em\">Economic, political, legal, social and demographic factors sometimes reduce the utility of marketing planning. In case these important external variables are not assessed properly, the whole process of making <\/span>market<span style=\"text-align: initial;font-size: 1em\"> plan will prove futile.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Expensive: <\/strong><span style=\"text-align: initial;font-size: 1em\">The time and cost involved in collecting reliable information <\/span>is<span style=\"text-align: initial;font-size: 1em\"> significant. Small firms sometimes avoid detail surveys due to cost constraints. Planning in such situations will not be effective.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Loss of initiative<\/strong><span style=\"text-align: initial;font-size: 1em\">: The better ways of doing work may be explored when <\/span>free<span style=\"text-align: initial;font-size: 1em\"> hand is given to employees and the way of doing things is left to their <\/span>judgement<span style=\"text-align: initial;font-size: 1em\">. When objectives are set, employees become focused and try to do things as per plans. They do not think beyond these plans. This restricts innovation in marketing operations.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 8.\u00a0<\/strong><strong>Essentials of Effective Marketing Planning<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">The various benefits of marketing planning will accrue only when it is effectively initiated and implemented. For this, the following factors are essential:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Support of top management : <\/strong>The planning is effective when it is initiated at the top level. First of all, corporate objectives should be set at top level and then marketing objectives should be laid down. Proper resources should be allocated by top management for achieving corporate objectives as well as marketing objectives. The involvement of top management will encourage marketing department to execute marketing plans effectively.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Participation : <\/strong><span style=\"text-align: initial;font-size: 1em\">Participation of subordinates in marketing planning will help in its effective execution. They will be more committed to <\/span>achieve<span style=\"text-align: initial;font-size: 1em\"> marketing objectives.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Focus on short term and long term planning : <\/strong>Short term<span style=\"text-align: initial;font-size: 1em\"> planning <\/span>in<span style=\"text-align: initial;font-size: 1em\"> necessary to meet <\/span>current<span style=\"text-align: initial;font-size: 1em\"> situation. <\/span>Long term<span style=\"text-align: initial;font-size: 1em\"> marketing planning is necessary for <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> survival and expansion. Both the planning should be given equal attention. <\/span>Long term<span style=\"text-align: initial;font-size: 1em\"> planning will set ultimate goals which should be achieved through <\/span>short term<span style=\"text-align: initial;font-size: 1em\"> planning.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Communication: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing plans should be communicated to those who are responsible to execute them. Lack of communication will reduce <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of marketing planning. Marketing plans should be clear to everyone.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Reliable data: <\/strong><span style=\"text-align: initial;font-size: 1em\">It is necessary that accurate information is collected as far as possible. Estimates should be based on scientific calculations. It will make marketing planning meaningful and effective.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Realistic marketing objectives<\/strong><span style=\"text-align: initial;font-size: 1em\">: Marketing objectives should be laid down in a way that these could be achieved in reality with sincere efforts.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordination: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing Planning can be successful only when all sub plans are integrated well and an organized, comprehensive marketing plan is designed.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Flexibility: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing planning should never be rigid. If the situation demands, necessary changes should be made in plans as per the organizational and market need.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<p style=\"text-align: justify\">\u00a0 \u00a0 If the above mentioned factors are given due consideration, the marketing planning will bring desired results.<\/p>\r\n\r\n<ol start=\"9\">\r\n \t<li><strong>Summary<\/strong><\/li>\r\n<\/ol>\r\n<p style=\"text-align: justify\"><strong>\u00a0 \u00a0<\/strong>Planning is necessary for all marketing activities. Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources. Marketing planning involves decision making which makes use of detailed information collected through surveys or market research. It results into detailed and systematic programme of actions to achieve marketing goals and objectives. The process of marketing planning is complex and includes certain steps such as (i) Analysing marketing environment (ii) Assessing the internal environment (iii)Setting marketing objectives (iv) Framing marketing policies (v) Developing Marketing strategy (vi) Formulating functional plans and programmes (vii) Preparing secondary plans (viii) Implementing the plan. Thus, marketing planning involves decision making that is reflected through marketing plan\/plans. Marketing plan is a document of future course of action specifying in detail the marketing objectives of firm and the way marketing manager is going to use marketing mix components for achieving marketing objectives. Marketing plans can be classified as structural or functional plans and time based plans. Structural plans are based on the functions of marketing department. Time based plans are the plans which show the time dimensions for marketing plans. There are short term marketing plans and long term marketing plans.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Marketing planning is a process and can be classified on the basis of level of management at which it is initiated. It can be of three types such as Strategic Planning, Tactical Planning and Operational Planning.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Marketing planning has assumed an important role in the survival and growth of firm. It is important as it provides numerous benefits. It is helpful in foreseeing the future, making optimum utilization of resources, knowing opportunities and threats, pursuing co-ordinated efforts, making possible management by objectives and management by exception and facilitating control. However, marketing planning cannot be effective for every firm. There are few limitations or obstacles to effective planning such as inaccurate data, resistance to change, external factors, expensive and loss of initiative. The various benefits of marketing planning will accrue only when it is effectively initiated and implemented. Support of top management, participation, focus on short term and long term planning, communication, reliable data, realistic marketing objectives, co-ordination and flexibility will help in achieving desired results.<\/p>\r\n<strong style=\"text-align: initial;text-indent: 1em;font-size: 1em\">\r\nLearn more<\/strong>\r\n\r\n<strong>Few important sources to learn more about marketing planning:<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\">Baker,J.Michael (2000). <em>Marketing Strategy and Management<\/em>, Macmillan Press Ltd., London<\/li>\r\n \t<li style=\"text-align: justify\">Bearden, Ingram, Laforge (1995). <em>Marketing: Principles and Perspectives<\/em>, Irwin Inc.<\/li>\r\n \t<li style=\"text-align: justify\">Blois Keith (2000). <em>The Oxford Textbook of Marketing<\/em>, Oxford University Press Inc., New York<\/li>\r\n \t<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em>Marketing Management<\/em>, Himalaya Publishing House, Mumbai.<\/li>\r\n \t<li style=\"text-align: justify\">5.Cannon, Tom. <em style=\"text-align: initial;font-size: 1em\">Basic Marketing: Principles and Practice<\/em><span style=\"text-align: initial;font-size: 1em\">, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Dalrymple and Parsons. <em style=\"text-align: initial;font-size: 1em\">Marketing Management: Text and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, 6th Edition, John Wiley &amp; Sons, Inc.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Kotler, Philip (2002). <em>Framework for Marketing Management<\/em>, Pearson Education (Singapore) Pte. Ltd., Indian Branch, Delhi.<\/li>\r\n<\/ol>\r\n<ul>\r\n \t<li><a href=\"https:\/\/blog.udemy.com\/marketing-planning-process\/\">https:\/\/blog.udemy.com\/marketing-planning-process\/<\/a><\/li>\r\n \t<li style=\"text-align: justify\"><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-diagram\/40549\/\">http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-<\/a><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-diagram\/40549\/\">diagram\/40549\/<\/a><\/li>\r\n \t<li><a style=\"text-align: initial;font-size: 1em\" href=\"https:\/\/media3.bournemouth.ac.uk\/marketing\/03planning\/04stages.html\">https:\/\/media3.bournemouth.ac.uk\/marketing\/03planning\/04stages.html<\/a><\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 \u00a0Points to Ponder<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\"><strong>Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>Marketing planning involves decision making which makes use of detailed information collected through surveys or market research.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>Marketing planning is helpful in foreseeing the future, knowing opportunities and threats, pursuing co-ordinated efforts and facilitating control.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>Inaccurate data, resistance to change and external factors may make marketing planning ineffective.<\/strong><\/li>\r\n<\/ol>","rendered":"<div>\n<p><strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome:<\/strong><\/p>\n<p>After completing this module, the students will be able to:<\/p>\n<ul>\n<li>Understand the concept of marketing planning<\/li>\n<li>Explain the process of marketing planning<\/li>\n<li>Understand the significance of marketing planning<\/li>\n<li>Describe the essentials of effective marketing planning<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Meaning<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Planning is necessary for all marketing activities. A firm cannot survive without considering changing business environment and planning its efforts accordingly to suit the changes and ensure business success. The change and growth bring new opportunities but they also bring various risks. Planning helps in minimizing risk while taking advantage of opportunities.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources. Marketing planning involves decision making which makes use of detailed information collected through internal records and surveys or market research. It results into detailed and systematic programme of actions to achieve marketing goals and objectives.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Marketing planning means deciding in advance what to do, when to do, how to do and who will do a particular marketing task. It is a managerial function of determining the future course of action of marketing department by assessing marketing environment, internal environment, past events and establishing a plan for total marketing programme to facilitate execution and control for better achievement of marketing objectives. The success of brands like Amul butter, Dettol, Colgate toothpaste is the result of marketing planning organized successfully. Marketing planning is important for success in today\u2019s environment.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Marketing Planning Process<\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The process of marketing planning is complex and includes <\/span>following<span style=\"text-align: initial;font-size: 1em\"> steps :<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(i) A<\/strong><strong style=\"text-align: initial;font-size: 1em\">nalysing marketing environment: <\/strong><span style=\"text-align: initial;font-size: 1em\">To start with any planning, it is necessary that first of all the prevailing external environment is assessed. The goods produced are to be offered to the consumers or buyers and they are part of <\/span>external<span style=\"text-align: initial;font-size: 1em\"> environment. The study of their preferences, tastes, buying motives, willingness to buy, paying capacity and desire for credit will help in formulating a realistic marketing plan. There is also a need to assess the intensity of competition which may emerge from existing firms, new entrants and firms dealing in substitute products. Competitors\u2019 marketing strategies and policies should be assessed. It will provide direction for effective planning. Apart from this, political, economic, social, cultural, technological, legal, demographic and ecological factors must be <\/span>analysed<span style=\"text-align: initial;font-size: 1em\">. This analysis will reveal opportunities or threats for the firm. It will also give clue about potential demand. On the basis of this analysis, the firm can prepare itself with effective marketing plans and programmes to act as early beginners for availing opportunities or protect from threats emerging from the environment. The firm, thus, prepares the customers profile, suppliers profile, industry profile, market profile and competitor profile for better assessment of <\/span>environment<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(ii)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Assessing the internal environment : <\/strong><span style=\"text-align: initial;font-size: 1em\">The firm assesses the internal environment to determine its own strengths and weaknesses. It may be its production capacity, product, manpower, technology, financial resources or marketing capabilities. Outdated technology, inadequate working capital, <\/span>high<span style=\"text-align: initial;font-size: 1em\"> cost of production, less trained workers or low productivity could be weaknesses of some firms. However firm\u2019s better technology, <\/span>large<span style=\"text-align: initial;font-size: 1em\"> network of distributors, innovative product, large product range, high quality, large market base or large production capacity could be its strengths (all or some of these mentioned variables) which may be used to counter competitive moves and cover its weaknesses.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(iii)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Setting marketing objectives: <\/strong><span style=\"text-align: initial;font-size: 1em\">Objectives are the end results to be achieved. It is necessary to lay down marketing objectives first so as to <\/span>channelise<span style=\"text-align: initial;font-size: 1em\"> all marketing activities towards <\/span>achievement<span style=\"text-align: initial;font-size: 1em\"> of these objectives. Marketing efforts will get a direction when objectives are established. Marketing objectives should be set in the light of <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> overall objectives. Marketing manager sets marketing objectives or targets which may be financial or non-financial. Financial marketing objectives are <\/span>specific<span style=\"text-align: initial;font-size: 1em\"> rate of return on investment, gross profit to sales, sales revenue or certain market share. Non-financial marketing objectives are <\/span>utilization<span style=\"text-align: initial;font-size: 1em\"> of production capacity, building corporate image, creating awareness about <\/span>product<span style=\"text-align: initial;font-size: 1em\"> etc. The marketing objectives should be clear, specific and realistic.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(iv)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Framing marketing policies: <\/strong><span style=\"text-align: initial;font-size: 1em\">Policies are the general statements which provide guidance to managers in their decision making. These act as <\/span>guide<span style=\"text-align: initial;font-size: 1em\"> to thinking. Marketing policies define boundaries within which decisions can be taken and directed towards the attainment of marketing objectives. Various marketing policies are formulated keeping in mind marketing objectives. These may relate to product, price, distribution or promotion.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(v)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Developing marketing strategy : <\/strong><span style=\"text-align: initial;font-size: 1em\">Strategy is a competitive policy. It aims at counteracting the market changes. Marketing strategy is a comprehensive and integrated plan of action designed to achieve marketing objectives. For formulating <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> strategy, a firm first decides <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market by <\/span>analysing<span style=\"text-align: initial;font-size: 1em\"> the market and selecting some segments as it thinks appropriate i.e. market segmentation is done and <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market is\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">selected. The customers\u2019 profile, characteristics, buying <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\"> or motives in <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market are studied which will help in finalizing marketing mix. Further product positioning and product differentiation <\/span>is<span style=\"text-align: initial;font-size: 1em\"> decided. After this, an appropriate marketing mix is developed. The relative weightage of each component i.e. product, price, promotion and distribution in <\/span>total<span style=\"text-align: initial;font-size: 1em\"> marketing programme is decided and the impact of uncontrollable factors on this marketing mix is determined. <\/span>Various<span style=\"text-align: initial;font-size: 1em\"> product, price, distribution <\/span>and<span style=\"text-align: initial;font-size: 1em\"> promotion strategies are decided for the target market. Different strategies are co-ordinated for developing <\/span>overall<span style=\"text-align: initial;font-size: 1em\"> marketing strategy.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">(vi)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Formulating functional plans and programmes <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Next, for the success of marketing strategy, detailed functional plans are prepared. These are the sub-plans and include:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Sales-force plan<\/span><\/li>\n<li style=\"text-align: justify\">Pricing plan<\/li>\n<li style=\"text-align: justify\">Sales and profit plan<\/li>\n<li style=\"text-align: justify\">Product mix plan<\/li>\n<li style=\"text-align: justify\">Distribution channels plan<\/li>\n<li style=\"text-align: justify\">Sales promotion plan<\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cash flow plan<\/span><\/li>\n<li style=\"text-align: justify\">Advertising plan<\/li>\n<\/ul>\n<\/div>\n<div>\n<p style=\"text-align: justify\">\u00a0 The functional plans are activity related plans. These plans or sub programmes are consolidated into marketing programme. Programme is a sequence of activities designed to implement policies and achieve objectives. Programme establishes the time schedule. Thus various sub-programmes as well as overall marketing programme are prepared which chalk out sequence of activities and time schedule.<\/p>\n<p>&nbsp;<\/p>\n<p>This comprehensive marketing programme becomes the marketing plan.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>(vii)\u00a0<\/strong><strong>Preparing secondary plans: <\/strong>After preparing marketing plan, there is need to determine the resources required i.e. physical, financial and human resource to implement the plan. Physical resources mean warehousing or material handling equipment. Financial resources mean amount or finance required to carry out various marketing operations and human resources mean manpower required to implement the plan.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\"><strong>(viii)\u00a0<\/strong><strong>Implementing the plan: <\/strong>The marketing plan designed and resources arranged are executed to achieve the defined marketing objectives. However, for effective planning, it is essential that planning is properly monitored and controlled.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>4.\u00a0<\/strong><strong>Marketing plans<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Marketing planning involves decision making that is reflected through marketing plan\/plans. Marketing plan is a document of future course of action specifying in detail the marketing objectives of firm and the way marketing manager is going to use marketing mix components for achieving marketing objectives.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>4.1 Types of marketing plans<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Marketing plans can be classified as structural or functional plans and time based plans.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Structural plans are based on the functions of marketing department. These plans are sales-force plan, pricing plan, advertising and sales promotion plan, physical distribution plan, distribution\u00a0<span style=\"text-align: initial;font-size: 1em\">channel plan, marketing research plan or product mix plan. These specific plans are made and on the basis of these plans, a <\/span>well integrated<span style=\"text-align: initial;font-size: 1em\"> marketing plan is designed.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Time based<span style=\"text-align: initial;font-size: 1em\"> plans are the plans which show the time dimensions for marketing plans. There are short term marketing plans and long term marketing plans. Short term marketing plans are normally for a period of upto one year. Such marketing plans relate to advertising, sales-force recruitment, product pricing, distribution channel etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Long-term plans are of more than one year and may extend to 5 or 10 years. These plans relate to entering new markets, developing new products or following vertical or horizontal marketing systems.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Types of Marketing Planning<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Marketing planning is a process and can be classified on the basis of level of management at which it is initiated. It can be of three types such as:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Strategic Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">Strategic planning is the process of determining how to attain firm\u2019s marketing objectives with the help of available resources. It is done at top level and involves the assessment of strengths and weaknesses of firm. It has a wider scope. Strategic planning involves a longer perspective for eight or ten years. The things are assessed in terms of their <\/span>long term<span style=\"text-align: initial;font-size: 1em\"> consequences. The strategic plan of the firm can be widening the market base.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Tactical Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">Tactical planning is done to meet specific requirements and its duration is small. It is undertaken by <\/span>middle level<span style=\"text-align: initial;font-size: 1em\"> management to evaluate the performance of a particular product or market.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Operational Planning: <\/strong><span style=\"text-align: initial;font-size: 1em\">It relates <\/span>with planning<span style=\"text-align: initial;font-size: 1em\"> of routine marketing activities. This is done at <\/span>lower<span style=\"text-align: initial;font-size: 1em\"> level of management i.e. by supervisory staff. Operational planning has <\/span>narrow<span style=\"text-align: initial;font-size: 1em\"> scope. It is done for a short period. For example, operational planning may relate to improvement in present period sales of one product.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 6.\u00a0<\/strong><strong>Importance of Marketing Planning<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Marketing planning has assumed an important role in the survival and growth of firm. It helps in foreseeing the opportunities and devising ways to take advantage of them. Marketing planning is important as it provides numerous benefits such as:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>\u00a0<\/strong><strong>Helps to foresee the future: <\/strong>Planning is the process of thinking before doing. It involves assessing the past performance and predicting the future. Marketing manager foresees the future and plans the things in best possible manner. Efforts are made to identify the likely future events and designing a course of action to meet market needs.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Optimum utilization of resources: <\/strong><span style=\"text-align: initial;font-size: 1em\">The physical, finance and human resources are assessed and <\/span>course<span style=\"text-align: initial;font-size: 1em\"> of action is planned accordingly. An effective marketing mix is developed as per <\/span>organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> resources and prevailing external environment. The resources are allocated in a way that firm will get <\/span>maximum<span style=\"text-align: initial;font-size: 1em\"> market share. The activities are <\/span>co-ordinated<span style=\"text-align: initial;font-size: 1em\"> well which reduces uncertainties and wastages. <\/span>Product<span style=\"text-align: initial;font-size: 1em\"> is developed as per customer need, realistic prices are set, effective distribution channel is employed, best promotional tools are used which ensure a complete package with assured returns.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Helps in knowing opportunities and threats : <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing planning involves scanning of environment i.e. political, social, cultural, legal, demographic factors etc. Such scanning reveals opportunities or threats prevailing in the environment. <\/span>Course<span style=\"text-align: initial;font-size: 1em\"> of action is planned\u00a0<\/span>in advance to make best<span style=\"text-align: initial;font-size: 1em\"> possible use of <\/span>probable<span style=\"text-align: initial;font-size: 1em\"> opportunity. Plans are made to reduce the impact of probable events representing <\/span>threat<span style=\"text-align: initial;font-size: 1em\"> to firm\u2019s existence. <\/span>Firm<span style=\"text-align: initial;font-size: 1em\"> is prepared with better action plans to minimize the impact of dreadful events likely to occur in near future. There will be no need <\/span>of<span style=\"text-align: initial;font-size: 1em\"> crisis management.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordinated efforts : <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing programme is prepared by giving due <\/span>weightage<span style=\"text-align: initial;font-size: 1em\"> to each component of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> mix. An integrated plan is developed with <\/span>right<span style=\"text-align: initial;font-size: 1em\"> mixture of price, product, promotion and distribution activities. An organized and <\/span>well co-ordinated<span style=\"text-align: initial;font-size: 1em\"> marketing programme is chalked out for successful implementation of marketing strategies. Thus, marketing planning helps in synchronizing various marketing activities and achieving marketing objectives through <\/span>co-ordinated<span style=\"text-align: initial;font-size: 1em\"> efforts.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Management by objectives is possible: <\/strong><span style=\"text-align: initial;font-size: 1em\">In marketing planning, marketing objectives are set and communicated to everyone concerned. These objectives act as standards against which performance of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> manager and other marketing staff is measured. Everyone remains conscious and focused. Periodic meetings are conducted to see the smooth implementation of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> programme. At the end of a definite period, performance is assessed in terms of marketing objectives achieved. Thus, management by objectives is possible with the help of marketing planning.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Management by exception is possible: <\/strong><span style=\"text-align: initial;font-size: 1em\">Top management has very little time to devote in day to day functioning of <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> department. In market planning, marketing objectives are laid down, marketing policies and strategies are framed and detailed marketing programme is prepared. Thus, middle level and lower level management <\/span>is<span style=\"text-align: initial;font-size: 1em\"> clear about each and every aspect. They do not need clarifications and direction time and again from top management. Thus, top management is free to devote much time <\/span>for<span style=\"text-align: initial;font-size: 1em\"> strategic planning. It needs to interfere only in exceptional matters. There is no need to interfere in routine matters if everything is going well.\u00a0<\/span>Similarly, marketing<span style=\"text-align: initial;font-size: 1em\"> manager will be able to spare more time for <\/span>co-ordination<span style=\"text-align: initial;font-size: 1em\"> and control as the marketing programme is chalked out properly. The authority can be delegated to subordinates for proper execution, thus, making management by exception also possible for <\/span>marketing<span style=\"text-align: initial;font-size: 1em\"> manager.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Facilitates control : <\/strong><span style=\"text-align: initial;font-size: 1em\">Control means determining the actual performance, measuring it with standards or expected performance, finding out deviation and taking corrective measures. In marketing planning, marketing objectives act as standards against which performance of marketing department is evaluated, deviation from standards is ascertained, reasons for such deviation are studied and corrective action, if needed, is taken. Without planning, control is not possible. Marketing planning sets objectives which are used as standards.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p>\u00a0 \u00a0 7.\u00a0<strong>Limitations of marketing planning<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Marketing planning cannot be effective for every firm. There are few limitations or obstacles to effective planning which are described below:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Inaccurate data : <\/strong>Marketing planning is based on detailed information collected from various sources. It will be effective when data is scientifically collected and estimates and forecasts are logically made. If data is not reliable, then decisions taken on the basis of this data will be unreliable. In such cases, marketing planning will lose its value.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Resistance to change: <\/strong><span style=\"text-align: initial;font-size: 1em\">In some <\/span>organisations<span style=\"text-align: initial;font-size: 1em\">, marketing personnel <\/span>do<span style=\"text-align: initial;font-size: 1em\"> not like changes. Their passive outlook to new ideas makes marketing planning ineffective. It becomes difficult to achieve marketing objectives. Sometimes, in a firm, planning may require frequent changes for some period but non-co-operation of marketing staff to make changes becomes a problem.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">External Factors: <\/strong><span style=\"text-align: initial;font-size: 1em\">Economic, political, legal, social and demographic factors sometimes reduce the utility of marketing planning. In case these important external variables are not assessed properly, the whole process of making <\/span>market<span style=\"text-align: initial;font-size: 1em\"> plan will prove futile.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Expensive: <\/strong><span style=\"text-align: initial;font-size: 1em\">The time and cost involved in collecting reliable information <\/span>is<span style=\"text-align: initial;font-size: 1em\"> significant. Small firms sometimes avoid detail surveys due to cost constraints. Planning in such situations will not be effective.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Loss of initiative<\/strong><span style=\"text-align: initial;font-size: 1em\">: The better ways of doing work may be explored when <\/span>free<span style=\"text-align: initial;font-size: 1em\"> hand is given to employees and the way of doing things is left to their <\/span>judgement<span style=\"text-align: initial;font-size: 1em\">. When objectives are set, employees become focused and try to do things as per plans. They do not think beyond these plans. This restricts innovation in marketing operations.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 8.\u00a0<\/strong><strong>Essentials of Effective Marketing Planning<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">The various benefits of marketing planning will accrue only when it is effectively initiated and implemented. For this, the following factors are essential:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Support of top management : <\/strong>The planning is effective when it is initiated at the top level. First of all, corporate objectives should be set at top level and then marketing objectives should be laid down. Proper resources should be allocated by top management for achieving corporate objectives as well as marketing objectives. The involvement of top management will encourage marketing department to execute marketing plans effectively.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Participation : <\/strong><span style=\"text-align: initial;font-size: 1em\">Participation of subordinates in marketing planning will help in its effective execution. They will be more committed to <\/span>achieve<span style=\"text-align: initial;font-size: 1em\"> marketing objectives.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Focus on short term and long term planning : <\/strong>Short term<span style=\"text-align: initial;font-size: 1em\"> planning <\/span>in<span style=\"text-align: initial;font-size: 1em\"> necessary to meet <\/span>current<span style=\"text-align: initial;font-size: 1em\"> situation. <\/span>Long term<span style=\"text-align: initial;font-size: 1em\"> marketing planning is necessary for <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> survival and expansion. Both the planning should be given equal attention. <\/span>Long term<span style=\"text-align: initial;font-size: 1em\"> planning will set ultimate goals which should be achieved through <\/span>short term<span style=\"text-align: initial;font-size: 1em\"> planning.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Communication: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing plans should be communicated to those who are responsible to execute them. Lack of communication will reduce <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of marketing planning. Marketing plans should be clear to everyone.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Reliable data: <\/strong><span style=\"text-align: initial;font-size: 1em\">It is necessary that accurate information is collected as far as possible. Estimates should be based on scientific calculations. It will make marketing planning meaningful and effective.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Realistic marketing objectives<\/strong><span style=\"text-align: initial;font-size: 1em\">: Marketing objectives should be laid down in a way that these could be achieved in reality with sincere efforts.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordination: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing Planning can be successful only when all sub plans are integrated well and an organized, comprehensive marketing plan is designed.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Flexibility: <\/strong><span style=\"text-align: initial;font-size: 1em\">Marketing planning should never be rigid. If the situation demands, necessary changes should be made in plans as per the organizational and market need.<\/span><\/li>\n<\/ul>\n<\/div>\n<p style=\"text-align: justify\">\u00a0 \u00a0 If the above mentioned factors are given due consideration, the marketing planning will bring desired results.<\/p>\n<ol start=\"9\">\n<li><strong>Summary<\/strong><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><strong>\u00a0 \u00a0<\/strong>Planning is necessary for all marketing activities. Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources. Marketing planning involves decision making which makes use of detailed information collected through surveys or market research. It results into detailed and systematic programme of actions to achieve marketing goals and objectives. The process of marketing planning is complex and includes certain steps such as (i) Analysing marketing environment (ii) Assessing the internal environment (iii)Setting marketing objectives (iv) Framing marketing policies (v) Developing Marketing strategy (vi) Formulating functional plans and programmes (vii) Preparing secondary plans (viii) Implementing the plan. Thus, marketing planning involves decision making that is reflected through marketing plan\/plans. Marketing plan is a document of future course of action specifying in detail the marketing objectives of firm and the way marketing manager is going to use marketing mix components for achieving marketing objectives. Marketing plans can be classified as structural or functional plans and time based plans. Structural plans are based on the functions of marketing department. Time based plans are the plans which show the time dimensions for marketing plans. There are short term marketing plans and long term marketing plans.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Marketing planning is a process and can be classified on the basis of level of management at which it is initiated. It can be of three types such as Strategic Planning, Tactical Planning and Operational Planning.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Marketing planning has assumed an important role in the survival and growth of firm. It is important as it provides numerous benefits. It is helpful in foreseeing the future, making optimum utilization of resources, knowing opportunities and threats, pursuing co-ordinated efforts, making possible management by objectives and management by exception and facilitating control. However, marketing planning cannot be effective for every firm. There are few limitations or obstacles to effective planning such as inaccurate data, resistance to change, external factors, expensive and loss of initiative. The various benefits of marketing planning will accrue only when it is effectively initiated and implemented. Support of top management, participation, focus on short term and long term planning, communication, reliable data, realistic marketing objectives, co-ordination and flexibility will help in achieving desired results.<\/p>\n<p><strong style=\"text-align: initial;text-indent: 1em;font-size: 1em\"><br \/>\nLearn more<\/strong><\/p>\n<p><strong>Few important sources to learn more about marketing planning:<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\">Baker,J.Michael (2000). <em>Marketing Strategy and Management<\/em>, Macmillan Press Ltd., London<\/li>\n<li style=\"text-align: justify\">Bearden, Ingram, Laforge (1995). <em>Marketing: Principles and Perspectives<\/em>, Irwin Inc.<\/li>\n<li style=\"text-align: justify\">Blois Keith (2000). <em>The Oxford Textbook of Marketing<\/em>, Oxford University Press Inc., New York<\/li>\n<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em>Marketing Management<\/em>, Himalaya Publishing House, Mumbai.<\/li>\n<li style=\"text-align: justify\">5.Cannon, Tom. <em style=\"text-align: initial;font-size: 1em\">Basic Marketing: Principles and Practice<\/em><span style=\"text-align: initial;font-size: 1em\">, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Dalrymple and Parsons. <em style=\"text-align: initial;font-size: 1em\">Marketing Management: Text and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, 6th Edition, John Wiley &amp; Sons, Inc.<\/span><\/li>\n<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Kotler, Philip (2002). <em>Framework for Marketing Management<\/em>, Pearson Education (Singapore) Pte. Ltd., Indian Branch, Delhi.<\/li>\n<\/ol>\n<ul>\n<li><a href=\"https:\/\/blog.udemy.com\/marketing-planning-process\/\">https:\/\/blog.udemy.com\/marketing-planning-process\/<\/a><\/li>\n<li style=\"text-align: justify\"><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-diagram\/40549\/\">http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-<\/a><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/marketing-planning-process-explained-with-diagram\/40549\/\">diagram\/40549\/<\/a><\/li>\n<li><a style=\"text-align: initial;font-size: 1em\" href=\"https:\/\/media3.bournemouth.ac.uk\/marketing\/03planning\/04stages.html\">https:\/\/media3.bournemouth.ac.uk\/marketing\/03planning\/04stages.html<\/a><\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0Points to Ponder<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\"><strong>Marketing planning is the instrument used to attain the desired marketing objectives through optimum use of limited resources.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>Marketing planning involves decision making which makes use of detailed information collected through surveys or market research.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>Marketing planning is helpful in foreseeing the future, knowing opportunities and threats, pursuing co-ordinated efforts and facilitating control.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>Inaccurate data, resistance to change and external factors may make marketing planning ineffective.<\/strong><\/li>\n<\/ol>\n","protected":false},"author":3,"menu_order":25,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["dr-rajwant-kaur"],"pb_section_license":""},"chapter-type":[],"contributor":[60],"license":[],"class_list":["post-196","chapter","type-chapter","status-publish","hentry","contributor-dr-rajwant-kaur"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":5,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/196\/revisions"}],"predecessor-version":[{"id":201,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/196\/revisions\/201"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/196\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/media?parent=196"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapter-type?post=196"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/contributor?post=196"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/license?post=196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}