As a result, these detailed marketing programs are the most important, practical outcome of the whole planning process. These plans should therefore be:. The resulting plans should become a working document which will guide the campaigns taking place throughout the organization over the period of the plan. If the marketing plan is to work, every exception to it throughout the year must be questioned; and the lessons learned, to be incorporated in the next year's planning.
A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors. The main contents of a marketing plan are: [ citation needed ].
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In detail, a complete marketing plan typically includes: [ citation needed ]. The final stage of any marketing planning process is to establish targets or standards so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives for example, to capture 20 per cent by value of the market within two years and into the corresponding strategies. Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed.
Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this. However, perhaps even more important is the enforced discipline of a regular formal review. Again, as with forecasts, in many cases the best most realistic planning cycle will revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail, is probably a quarterly rolling review - planning one full year ahead each new quarter. Of course, this does absorb more planning resource; but it also ensures that the plans embody the latest information, and - with attention focused on them so regularly - forces both the plans and their implementation to be realistic.
Plans only have validity if they are actually used to control the progress of a company: their success lies in their implementation, not in the writing'. Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident..
Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm's share of the market can decrease which bodes ill for future sales when the market starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed:. There are a number of separate performance figures and key ratios which need to be tracked:.
The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization's performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:. A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period.
However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a unique opportunity, a forum, for information-rich and productively focused discussions between the various managers involved. The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself.
The classic quantification of a marketing plan appears in the form of budgets.
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Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results. What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main regular management review process. The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document. It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities.
It is then used in monitoring performance in practice. The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means.
Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans. A marketing strategy   is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage .
A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena.
Strategic management corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement .
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A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service. A strategy consists of a well thought out series of tactics to make a marketing plan more effective.
Minds Before Market Share The Art Of Public Relations
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives . Hence my conviction that relative share of voice needs to be roughly 2 to make the spending effect observable. This assumes that total spending is enough to drive primary demand and each competitor can influence only its own share. If total category ad spending falls below a certain threshold, these assumptions will not hold because any competitor would be in a position to stimulate primary demand.
For this reason, the relative SOV logic does not extend to ad spending for new products or highly differentiated products occupying niches. Rational competitors halt their ad offensives when they cease to produce share gains and equilibrium reigns once again. The implication for defense is clear: spend to deter attack.
Assailants must recognize the signs and be prepared to back off. Anheuser-Busch apparently competes with these points in mind, despite its reputation for pouring money into advertising. When rivals seem likely to defend themselves aggressively, A-B keeps its ad spending close to the equilibrium levels. In the Los Angeles light beer market, for instance, Anheuser has withheld a heavy assault against Miller Lite, the leader—unlike its behavior elsewhere to promote Bud Light. If it struck at Miller Lite, Miller would probably retaliate dollar for dollar, and neither brand would prosper.
Minds Before Market Share: The Art of Public Relations (English Edition)
Anheuser is wiser to sally forth where an effective defense is less likely and the cost of success lower, as in Iowa. Much has been written about the so-called advertising response function. Piling on more dollars becomes less and less productive. Hence you get an S-shaped function by plotting sales against ad expenditures, as the fourth chart demonstrates. My associates and I have been unable to confirm a correlation between sales volume and the advertising budget, and that is what led us to look for the relative share of voice effect.
Ad Spending and Market Share
The principle says: If I yell loud and you yell loud, the audience will hear both of us. But if I start yelling louder when you are quieter, the audience will hear only me. Market leaders have this problem.
Spending at levels loud enough to be heard, they are in a zero-sum jousting match. For either company No. Similarly, an obvious run at an SOV advantage is likely to spark an unprofitable war as both players spend to maintain equilibrium. The shrewd marketer, therefore, picks its attacks carefully, targeting markets wisely, aiming at markets for share gain where the competitor is vulnerable, markets where that competitor is perhaps knowingly underspending, markets where a voice can be raised without breaking the budget.
RC should not think share of voice; rather, it should spend the minimum necessary to have adequate reach and frequency, and not much more. These observations on the relationship between share of ad spending and market share may encourage marketers to rethink their spending policies and geographic priorities along four dimensions.
A national approach to marketing may get you in trouble. Instead of applying the same formula everywhere, marketing managers are wise to choose a strategy, and the tools to be used, for particular markets at particular times. This often requires a different set of ad expenditure priorities than consumer goods companies normally adopt.
Rather than challenge competitors in markets where it is weak and they are the leaders, as is commonly the case, the company does best by picking its shots and targeting markets where competitors are underspending. In those, the upstart will spend at a significant share of voice premium to try to grow share. Otherwise, it ends up like Pabst in Iowa.