COMSATS University of Science and Technology (CUST) Islamabad

Class: BBA VI Semester: Fall 2011 Course: Global Business Management Instructor: Muhammad Irfan

1. Terms of References 2. Executive summary 3. Business Mission

Global Business Management A Marketing Plan- Entry Strategy

4. External Market Audit Macro Environment 4.1.1 4.1.2 Political/Legal Factors Economic Factors

4.1

4.1.3

Technical Factors Social/Culture Factors

4.1.4

4.2

The Market 4.2.1 The Future Growth

4.2.2

Consumer Profile

4.3

Competitor Analysis
4.3.1

Porters Forces Analysis

5. Internal Market Audit Operating Results Strategic Issue Analysis Marketing Mix Effectiveness

5.1

5.2 5.3
5.4

Marketing Structures and Systems

6. SWOT Analysis Marketing Objectives

7.1

7.

Strategic Thrust Strategic Objectives

7.2

8. Core Strategy 8.1 Target Market

8.2

Competitors Target Competitive Advantage

8.3

9. Marketing Mix Decisions. Product Promotion

9.1

9.2

9.3 9.4 10. 11.

Price Place

Budget Organization and Implementation Control

12.

13.

Reflexive Account

References

1.

Terms of Reference

The terms of reference state the objectives/aims of the marketing planning exercise and its coverage.

2. Executive Summary
The executive summary describes the reports major findings and recommendations. It is designed to provide a busy reader with the major issues contained in the report. The executive summary allows the reader to gain insight to key outcomes without having to read all of the report. Bullet-points can be used to present the key points in the executive summary.

3. Business Mission
The business mission is a broadly defined, enduring statement of purpose that distinguishes a business from others of its type. It should state what business is the company in? and what business does it want to be in? It may include the markets being served, the customer needs being satisfied, and the technology used. A mission statement can dramatically affect the range of a firms marketing activities by narrowing or broadening the competitive playing field.

4. External Marketing Audit

A marketing audit is a systematic examination of a business marketing environment, objectives, strategies and activities, with a view to identifying key strategic issues, problem areas, and opportunities. It provides the basis upon which a plan of action to improve marketing performance can be built. The external marketing audit focuses on:

Macro environment Micro environment including: - The market - Competition (Note that information may not be available on all of the areas listed under each topic)

4.1 Macro environment The macro environment consists of broad environmental issues that impinge on the business. You may wish to analyse it using the following headings: Economic Socio-Cultural Technological

 Political/Legal Ecological Not every heading may be used; if it is not likely to impact the company, leave it out. For every event, state its likely impact on the company and the resulting implications.

Micro environment 4.2 The Market

The market consists of: analyses of market size, growth rates and trends; customer analysis including who they are, what choice criteria they use, how they rate competitive offerings and how the market is segmented; distribution analysis, which covers significant movements in power bases, channel attractiveness analyses, physical distribution analyses and analysis of the role and interests of decision-makers and influences with distributor organizations.

4.3 Competition
Competitor analysis examines: Who are the competitors to the company (actual and potential)? What are their objectives and strategies, strengths and weaknesses, market shares, size and profitability? Finally, any entry barriers that make market entry from new competitors difficult should be identified.

5. Internal Marketing Audit

The internal marketing audit focuses on the activities and performance of the company in the light of the external marketing environment: It should cover an evaluation of the following four sections: Operating Results Strategic Issues Analysis Marketing Mix Effectiveness Marketing structure and systems

Note that the information may not be available on all of the issues listed under each topic.

5.1 Operating Results

This covers operating results (by product, customer, and geographic region) for sales, market share, profit margins and costs.

5.2 Strategic Issues Analysis Strategic issues analysis will answer the following questions: What are our current marketing objectives? How do we currently segment the market? What is our competitive advantage (if any)? What are our core competencies? How are our products positioned in the marketplace? How are products placed in terms of market attractiveness and company strength (portfolio analysis)?

Each answer will be evaluated to produce strengths and weaknesses. 5.3 Marketing Mix Effectiveness
Each element of the marketing mix (product, promotion, price and place) will be evaluated in the light of the external marketing environmental analysis.

5.4 Marketing Structures and Systems

The marketing structures and systems of the company will be evaluated to identify what exists and its effectiveness. Marketing structures include marketing organization, marketing training, and intra and interdepartmental communication. Marketing systems include marketing information systems, the marketing planning system and the marketing control systems.

6. SWOT Analysis
A SWOT Analysis is a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats. It provides a simple method of synthesizing the results of the marketing audit by summarizing the companys strengths and weaknesses as they relate to external opportunities and threats. Strengths and weaknesses will derive from the internal marketing audit analysis. Opportunities and threats will derive from the external marketing audit analysis.

7. Marketing Objectives
As a result of the marketing audit and SWOT analysis, relevant marketing objectives will be set. Two types of objectives need to be considered: strategic thrust and strategic objectives (see the next two sections).

7.1 Strategic Thrust

Strategic thrust defines which products to sell in which markets. The options are existing products in existing markets (market penetration or expansion), new/related products for existing markets (product development), existing products in new/related markets (market development) and new/related products for new/related markets (entry into new markets).

7.2 Strategic Objectives

Strategic objectives for products need to be set. The options are build sales and market share, hold, harvest (improve profit margins) and divest (drop or sell product).

8. Core Strategy
Core marketing strategy involves the achievement of marketing objectives through the determination of target markets, the setting of competitor targets and the creation of a competitive advantage (see the next three sections).

8.1 Target Markets

A choice of target market(s) has to be made. A target market is a group of consumers/organizations (segment) that the company wishes to aim its offering and communications at. It defines where the company wishes to compete.

8.2 Competitor Targets

Besides targeting consumers/organizations, the company will choose competitor targets. Weak competitors may be viewed as easy prey and resources channelled to attack them. The choice of target market may define competitor targets and be influenced by them: market segments with weak competitors may be attractive targets. 8.3 Competitor Advantage A competitive advantage is a clear performance differential over competitors on factors that are important to target consumers/organizations. This provides the basis of how the company competes. Major success is dependent on the company creating a competitive advantage by being better (e.g. superior quality or service), being faster at anticipating or responding to customer needs than competitors, or being closer by establishing close longterm relationships with customers.

9. Marketing Mix Decisions

By defining a target market and understanding the needs of their consumers/organizations, a marketing mix can be created to meet those needs better than the competition. Decisions have to be made regarding product, promotion, price and place.

9.1Product
Product decisions involve choices regarding brand names, features (that create customer benefits), quality and design, packaging, warranties, and the services that will accompany the product offering.

9.2 Promotion
Promotion decisions involve choices regarding advertising, personal selling, direct and Internet marketing, sales and promotions and public relations.

9.3 Price
Pricing decisions involve choices regarding list price, discounts, credit terms and payment periods.

9.4 Place
Place decisions involve choices regarding the distribution channels to be used and their management, the location of outlets, methods of transportation and inventory levels to be held.

10. Budget
Every plan needs a budget which must be set according to the objectives of the plan, the resources of the organization and the level of ROI required.

11. Organization and Implementation

A marketing plan needs a marketing organization to implement it. Reorganization may mean the establishment of new marketing structures (e.g. brand management) or the creation of a marketing department for the first time. Consideration should also be given to implementation issues. These focus on who is responsible for various activities, how the strategy should be carried out, where things will happen, and when action will take place.

12. Control
The aim of control systems is to evaluate the results of the marketing plan so that corrective action can be taken if performance does not match objectives. 13. Reflexive

Account

The overall process.

GUIDANCE NOTES FOR COMPLETING YOUR MARKETING PLAN Here, we focus on what parts of the template are important for the assessed marketing plan. Read these notes in conjunction with the marketing plan template.

Terms of reference This is a very important part of the project and is the reason why you must obtain approval from the module leader prior to starting on your work. The terms of reference refers to the company or brand that you are to do your marketing plan on and the market in which that plan is to be undertaken. Market can mean a market segment, a geographical area, an industry sector. But it is important that you have complete focus before commencing with the work.

Executive Summary Dont worry too much about this. The executive summary should not last more than one page. It should highlight your key audit findings and your key recommendations.

Business Mission Dont worry too much if you cant find a business mission! Many companies produce them but they do not always necessarily refer to specific products or brands. Rather, you should identify what you believe the mission of your product, brand etc., actually is. Areas you can look at include innovation, customer service, market and market position.

External Marketing Audit The external marketing audit will account for some 30% of your marks. There are some key areas that you need to take into account. Firstly the macro audit typically a PEST or STEP analysis. What is important here is that the analysis is appropriate and relevant to your product or brand. So for example, students frequently cite political stability under the influence political. This is only any importance if political stability (or instability) has any particular effect on the chosen product or brand. Try and ensure that your identified PEST factors focus on customers and competitors and by inference, company capabilities.

For the micro environment, use a simple 5 forces model. But again, really focus on issues such as customers and competitors. New entrants and substitutes are only of importance if you believe they present a tangible threat during the period of your plan. As for suppliers, they are only of importance if they present a strategic threat or your relationship with them presents a marketing opportunity.

Internal Marketing Audit

What is important in terms of the internal marketing audit? Well, obviously any results. But these really do need to refer to your chosen topic. So sales, profits, market share are all important. After that I am most keen to see how you evaluate the marketing mix that has been already undertaken by your chosen product or brand. Do not skirt over this one. You need to identify the current 4 or 7 Ps, describe each and evaluate each. This is a marketing plan and ultimately, it succeeds or otherwise on the strength of the marketing mix.

You can then match the mix to strategic issues such as market segment identification, core competences, competitive advantage and competitive positioning. Try using perceptual or positioning maps that are described both in your lecture slides and in your text book.

Dont worry too much about marketing structures and systems, but if you are able to give some information and comment upon the effectiveness, then all the better. In many cases, especially for business to business companies or brands, students tend to identify a lack of formal marketing. This in many cases will suffice.

SWOT Analysis Now, bring everything together into a SWOT analysis. This is a useful tool but you need to use it wisely. Strengths and weaknesses refer to the company. Opportunities and threats refer to the environment. A good way of developing a

useful SWOT is to outline three elements for each box. So for your strengths, try thinking about strength identification, then prove it, and finally identify the implication of this particular strength. Repeat these for each of the other three areas of the SWOT. Dont try and put down every single strength, weakness, opportunity or threat that you can possibly for ever think about. Rather, highlight ones that are appropriate and relevant. Importantly, your SWOT must only include information that is relevant to the preceding marketing audit. Any element of your SWOT which has not been discussed in your macro, micro or internal audit, is likely to be invalid.

Marketing Objectives Now it is time to move to the other 30% of your marks, your objectives and recommendations. Your marketing objectives will really be looking at issues such as market share, growth, profitability. Your strategic thrust will look at basic strategies for achieving the objectives. Strategic thrust is best represented by the Ansoff Matrix, details of which you will have seen in the lecture slides and the text book. The Ansoff Matrix looks at four strategic marketing strategy areas market penetration, market development, new product development, diversification. You might well decide to approach your recommendations on the basis of two or even three Ansoff Matrix areas. If however, you feel that for example, market penetration is all that is needed, then that is fine.
Next, you need to identify your target markets segments or specific companies. Then your competitive targets and finally your competitive advantage. If you cant find a competitive advantage, then it is highly unlikely that your marketing plan is going to be effective.

Marketing Mix Decisions

Now it is time to put the flesh on the bones. To develop your tactics for achieving your strategic objectives. Again, do not over generalise. This is your ultimate operational marketing and you need to ensure that your marketing mix is robust and well thought out. This is your chance to be creative. Whatever you do, do not simply repeat what the company is currently doing! Develop your own marketing mix, but support your recommendations. You do not need to do a full 7Ps analysis if some of the elements are not appropriate. But you must ensure a minimum of 4 Ps. 9 Budget
I dont expect a full detailed marketing budget. Some of the figures might be difficult for you to find. If you can get detailed financial information, then thats good. Otherwise, think about dividing your budget into percentages. So your overall budget represents 100%. Then you can divide that 100% over the marketing mix and elements within the marketing mix. So, if your marketing communications part of the marketing mix accounts for 50% of your budget, you might then wish to divide that 50% up amongst the different elements of the marketing communications mix.

Remember however, that the marketing budget is for the marketing mix, not simply the marketing communications mix.

Organisation, implementation, control Here, you might wish to develop marketing structure information. That is absolutely fine, but dont take too much time over this. In terms of implementation it is important that you show the time line for your marketing plan. In terms of control, demonstrate some simple measures so that you are able to understand whether what is being achieved is related to what is being recommended.

Some more information

1. Maximum number of members in each group is five (5) and the minimum number is three (3). 2. Two groups cant go for one (1) company. 3. So if you arent feeling comfort with any of your group member, just divide your work that must be mentioned in the project. You will be marked individually for your work. 4. But if the group members didnt tell me in advance about the project division, the whole group will get the same marks. 5. The criterion for a company selection is on the basis of first come first serve. 6. Your project must look like Project, having proper page numbers and table of contents. 7. Make it colourful with ideas, thoughts and understanding, not just colourful diagrams. 8. Last date for submission of project is 12 Dec, 2011 (10 pm). 9. Good luck.