The Role and Purpose of a Marketing Plan to a Medium-Large Sized Manufacturing or Service Company - Coursework Example

ROLE AND PURPOSE OF A MARKETING PLAN Introduction When a company, person or business firm decides to make a business plan, an important component of that overall business plan will be the marketing plan. A marketing plan is meant to clearly pinpoint the direction that you have decided to take in order to market your business, brand or service. It also acts as a guide on how to promote your business, attract and retain customers and exploit identified marketplace opportunities. Marketing is a very sensitive issue to a company as it determines how an organization performs generally knowing very well that marketing is involved in selling the company and its goods or services. Therefore planning on how to carry out the act requires careful considerations with the full knowledge of what is being sold and the view of the customers towards the good or service being sold to them. This paper looks at considerations put in place in the making of a market plan for a vehicle manufacturing company, Ford Motors. The company is considering this decision in light of its entry into African market with a new brand, Ford Escape2008. A new market plan is required to market this new brand which is an improvement of previous Ford Escape models. This therefore calls for a different approach in marketing for it has an entirely different target market than other target markets which are already taken care of. Factors That Determine the Making of a Marketing Plan The following constitutes considerations made during the making of a market plan (a) Determine the challenges (b)Analyzing the situation (c)Market segmentation (d)Marketing Strategies (e)Alternative marketing methods/strategies (f)Short & Long-Term Projections (g) Controlling results Challenge It is important to come up with a statement giving a detailed description of the product or service that a firm has decided to take in order to market your business. It is paramount to overall knowledge of the product being marketed and what are the expected goals such as the sales figures and the strategic goals. On realizing the challenge that is ahead of the firm, it is necessary that important requirements are put in place. This may consist of increasing the staff though this is mainly done after establishing the marketing strategy to be applied. The challenge statement should put to detail the role of each staff and breakdown the company's objectives into smaller manageable ones. Situation Analysis In analyzing the situation prevailing in the market, the customer should make the first priority. The number of customers being targeted determines the intensity of the whole process. A large population will call for a more intensified exercise and vise versa. The way forward ought to recognize the strength of concentrating a particular consumer base with a selected basket of goods or service. The consumers taste, behavior, and personal attributes should also be considered. Adding value to the product or service in question is what drives and re-energizes the marketing process. In analyzing the situation, the firm should differentiate the competitors from the collaborators. Collaborators do range from potential companies that the company may consider in making a joint venture to distributors. This may at times include other firms that the company is capable of turning into subsidiaries. On the other hand, competitors should be analyzed in way to tell their market position either as a market leader or follower. It is at this point that we analyze the market in which the company is to operate in. In order for a company to have the best and reliable information various tests are done. The main ones are SWOT analysis and PEST analysis. Here is how these tests are conducted. SWOT Analysis The word SWOT is an acronym for strength, weaknesses, opportunities and test analysis. This test involves the company evaluating itself in order to know on the most appropriate way to maximize on its strength, opportunities, and to stop and defend weaknesses and threats respectively. Broadly it can be said that weaknesses and strengths are internal to Ford and other companies alike while opportunities and threats are external. Ford has identified some of its strengths that give it an upper edge over the rivals that deal in models close to the Escape 2008. Some of them are Strengths Strong brand name History of safety Strong believe in country of origin in Africa Diversity in models Weaknesses Associated with high prices Past failure in the same market Opportunities The rich want to be identified with expensive vehicle models Growth in African economies Threats Political instability in Africa Poor infrastructural services Low priced copy cat makes/models Competitors in the market who might have superior models or offers better services. To Ford the greatest competitors in the market are Toyota Rav4, Nissan X-trail and Honda CRV models. This models are relatively affordable than the Ford Escape2008 model. Competitors have superior access to channels of distribution. Superiority in Africa at times is brought about by the relationship between a company and the government authorities an act characterized by corruption and canvassing. Any company planning to operate in Africa must thus make these considerations before venturing into business. However care should be taken in utilizing information obtained from such tests as their findings are not holistic but are rather subjective. For the analysis to be effective some guidelines The strengths and weaknesses of a company should be realistic and free from bias when conducting this SWOT analysis. The analysis should show or rather state the organization growth statement distinguishing between where your organization is today and where it wants to be in the future. However, in Africa an organizations future plan maybe thwarted by unprecedented circumstances as the political and economic conditions are not stable. The analysis should pose questions directly to the point and so should the answer be. The SWOT analysis should be applied in relation to competition applying comparative terms such as worse than, better than, Should be short and simple. Precaution is needed in handling the results as the analysis is subjective thus performing all analysis methods are advised. PEST analysis The initials stand for political, Economic, sociocultural and technological factors that influence the marketing process. This is an analysis test that best captures the prevailing conditions in Africa that determines the marketing path and process that company will adapt in execution of the marketing process as its marketing plan. A) Political Environment As earlier shown, African countries have continued to experience civil unrest year in year out, the unpredictable political changes have found marketers and organizations alike lost when it comes to making long term decisions, for example, The recent political violence experienced in Kenya caught many organizations by surprise as the country is widely known for its stability compared to its African counterparts such as Sudan, Angola and Somalia. A stable political environment assures an organization of security to its investments and personnel with non interference in company relations. Government Policies and Laws: Government policies are particularly focused on taxations and how they impact on the overall performance of an organization or the good / service involved. High tax increase production cost of organization leading to an up surge in prices and thus loses its competitiveness to rivals or other substitutes. Responsible governments have to incorporate industry players in making of such decisions to avoid an imposing attitude that will rear resentment and lack of co-operation from the marketers. However, the situation is not the same especially so in countries with bad leadership, for example, in Zimbabwe companies are suffering as a result of Mugabe's stand on the issue of land that led to sanctions being placed on his country. The important export industry has born the longest blow from this case. This means that Ford Motors is in no position to transact any business in that country. Government position on marketing ethics: This area deals with moral principles behind the regulation and operation of marketing practices. Some areas of marketing ethics such as advertising and promotion overlap with media ethics. The government may decide to enact regulations prohibiting access or audience to a certain group of people (e.g. children, the elderly) or the entire society. regulation may also be bent on excluding potential customers from the market or discourage demand from undesirable market sector or disenfranchise them altogether, for example, Islamic states prohibit public exposure of a female body something that vehicle makers are fond of doing by displaying their products along scarcely dressed models. Policy on economic growth: A growth has a direct impact on organizations operating in such a country. Any deviation from this commitment will also impact on companies and marketers alike. Many African countries are lagging behind in economic growth something that can be viewed with either a negative or positive eye. However, some of them have shown signs of hopes to international investors of their potential. As of now the most promising one is Angola which in last year recorded an annual growth rate of 16%. Government view on culture and religion: Many African countries have tried to retain their traditional cultural practices and prevent their citizens from being too much westernized. Islamic states that use sharia law have it spelled out to organizations operating in their country to adhere to it. An ideal environment should however give organizations a degree of independence so as to operate to give them room to apply their personal taste and help them compete healthily with international organizations. Government involvement in trade agreements; States have often entered into agreements as necessitated by their common relationship and interests as a region or due to the type of exports on imports that they deal with. Trade blocks such as COMESA, EAC, PTA etc are established to guard business interests of member countries. As such organizations operating in those countries are subject to observing quotas and custom regulations agreed upon by members. This trade grouping may put a company in a collision course when it comes to operating in that country. Economic Factors The growth and development of any given economy is determined by the policies, laws and regulations that offer conducive environment to the economic drivers in that country. If a country is thinking of attracting foreign and local investors, macro economic policies that guard on the affordability of loans price (interest rates) should be enacted. Due to the low income per capita among Africans, the company is targeting those where loans are affordable since not many people can manage to purchase these vehicles without a loan. Brand Identity Strategy and IMC Creating and sustaining a brand identity is viewed as the first step towards developing strong brands. Pickton and Broderick (2004) write that in managing and developing significant brand identity it is necessary to keep the importance of research to the marketing practice. The brand identity is involved in formulating and cementing a relationship between the customer and the brand by generating value proposition that revolves around emotional, functional, or self-expressive benefits. It follows then that it becomes a problem for brand identity to perfectly match with brand image following the intricate nature of the existing communications system. Fiske (1994), emphasizes that, brand image is and should be an integral part of strategic brand analysis where brand strategists carefully evaluate their existing brand image as well as those of competitors to assist them in establishing their own brand identity that will result to an optimum impact in the market positively. To develop a brand promise that creates emotional connections, the company ensures that; (1) The promise is based on the core values of the brand, for instance, the vehicle is 4x4 wheel drive (2) The quality of the brand is relevant and clearly engages to their target market, for example, Africa has a rugged terrain fit for 4x4 vehicle (3) Beyond just being good the Ford Escape 2008 has the ability of developing positive emotional attachment which has been demonstrated by customers in the US market. (4) The model is internally and externally consistent within and outside Africa (5) This new model is highly adaptable to the entrepreneurial climate prevailing in the market. (6) The promise is reinforced at continued intervals as supported by provision of genuine spare parts. (7) The model is consistent across marketing and advertising mediums. (8) The quality of the brand is well known by all stakeholders in the business After creation of the brand identity the company is to consider any possible conflicts that may arise between the brand's position in the market and its identity, that is, after developing a unified brand, the organization should come up with the ways in which the identity will be communicated to all agents, distributors and employees who are responsible for marketing communication with. Fiske (1994) notes that, there is increased potential for conflicting messages since diverse communication options and operations in different countries with different languages have different points of contact with various message receivers. He also asserts that brand identity should control integrated marketing communication in order to create and maintain effective and synergistic messages. An effective brand identity strategy therefore is one that guides, informs, and assists in nurturing, developing, and implementing the company’s overall IMC strategy through different brand identity contacts spread out in the market. These contacts can be best managed through brand identity factors, incorporating company's management support, internal market familiarization and identity-oriented culture. IMC has changed from being a simple inside-out mechanism that brings together the various tools and methods used in the promotion being a complex process connected with brand management. (Brassington and Pettit, 2005) multiple media is to be applied in the promotion and advertising so as to develop brand equity of products as well as services offered to customers. Brand identity contacts can also be effectively managed through the brand identity factors, which comprise internal market orientation, top management support and identity-oriented culture. In addition, brand equity contacts can be managed well through brand equity contact factors. Brassington and Pettitt (2005) views brand equity as a discrepancy consequence of brand knowledge on customer response to the brand. These writers also say that brand knowledge is related to brand equity definition where high levels of brand knowledge will always increase the prospect of brand choice. They also explain brand knowledge in terms of image and brand awareness. Successful positioning Ford Motors embraces the principle that successful brands stands for something essential such that without it the brand will lack traction. Some certain factors have to be met so as to capture the attention of the customer. Ford has gone ahead and familiarized itself with the expectations of the African market. 1.Focus –This emphasizes on the importance of laying the customer support basis close to the consumers instead of them going to look for help elsewhere which is expensive and encourages substitution which will reduce the company's market share. In this respect, servicing of vehicles in each country should be independent and close to the consumer. 2. Differentiation. In an attempt to set the Brand of Ford separate from other competitors, the new model is incorporated with the current wave of conserving the environment. This has given a very strong selling point since the model has become a hit among environmentalists in other markets and is also expected to behave the same way in the new market. The special Utility Vans market is saturated with many makes and hence setting itself the environmental way, ford escape 2008 is bound to make big impact in the market as consumers try to separate the winners from the muddle. 3. Relevance. It is now open for all to see that relevance in the vehicle manufacturing industry is what is riving the emergence of new models every now and then. This appears to be very clear with this company, given that this new model is an improvement on earlier. Additions on the earlier model are what make this model relevant with the goings on of today. The model provides a high level of security, safety, comfort, power and looks something that has proved to be the consumer’s priority. 4. Simplicity: Lots of advertising and features engulf consumers to the point of annoyance. Too many additional features will leave the consumer annoyed reason being he/she might not see the reason and functions of them. On the other hand too much advertising appears to be nagging and infringing on the consumer's right of choice. A simple advert and vehicle will however not annoy or discourage consumers from owning one. This becomes the central part of what audiences take in, and after the reverberation of that clear message, and then the company expands into well structured fashions 5. Believability: This entails on delivering the pledged services such as honoring a warranty or providing after sales services. Ford ensures that its market audiences/customers acknowledge what they say as will deliver their brand pledges. They use this as crucial and core examination point while determining how to launch or reposition products and carry out promotional campaigns. Other crucial selling points to be looked after in the developing of a market plan are. Pricing-This is mostly influenced by the company's requirement for net income and the company’s objectives. For easier market penetration lower prices are recommended. Promotion- This mainly entails advertising and planning on the best advertising medium available to the target market. Two strategies are used mainly, push and pull. The former advocates maximizing all the available channels of distribution to push the product to the consumers. The latter strategy stresses on minimizing use of distribution channels and having a direct approach to the consumer. IMC strategy To achieve its communication objectives for the African market penetration, Ford Motors must adopt a well organized communication program that is internally consistent and customer-focused based on the full knowledge of communication barriers to be expected due to the low levels of technology and language variation. As a fundamental for designing marketing communication programs, IMC will facilitate all promotional activities i.e. sales promotion, advertising, public relations, personal selling, and direct marketing therefore providing a selling consistent message across all audiences (Belch and Belch, 2003). A successful IMC program creates a process that will enhance IMC audit design and use. The IMC audit will analyze the company’s internal communication network, evaluate customer databases, potential audiences, assess messages in recent adverts, promote sales and help in determining company's marketing knowledge and application of IMC. Once the IMC process is implemented Ford Motors will want to assess its success and impact. This can be said to be a midway self analysis that will show which promotional element works better than others for the company. In this integrated program, all possible and economic means of advertising through the most accessible media will be used to create awareness. Pamphlets, brochures and direct mail offer additional information to individual prospects that can not be offered by other methods. (Belch and Belch, 2003) Three essential qualities should be met by all promotional activities. Namely 1. They should be designed for a well-defined target audience 2. Be measurable 3. Cover a specified period of time (Belch & Belch, 2003) With the growth of advertising companies, cost and effectiveness of promoting and advertising varies greatly. The most economical and effective method is recommended. Developing the promotion program Due to the increased media costs, promotion decisions must be carefully made using an orderly approach depending on the type of good or service being marketed. (Pickton and Broderick 2004) the planning, implementation and control stages in strategic marketing process, promotion are best carried out in stages: Developing > Implementation > control In developing the promotion program, Ford should focus on who is the target location and timing. This is summarized in the table below Planning Implementation Control -Develop a promotion program -Execute the promotion program -Evaluation -Identify the target audience -Pre-test the promotion -Post-test the promotion -make promotion budget -Carry out the promotion -Promotion. -Select the right promotion method > adverts or discounts -Make needed changes. -Design the promotion >decide type of advert Identifying the Target audience The model is meant for the upper class members of the society. However this information is not enough. A more specific target should be sought. It therefore goes without saying that the company should employ very high intelligence decision making to develop its promotion program. This will be identifying the specific target audience i.e. the group of potential customers toward which a promotion program will be directed. The intensity at which the promotion campaign is carried out depends on the amount of time and money will allow. The target audience for the promotion program should be the target market for the company’s product, identified from marketing segmentation and research studies. The more Ford motors knows about its target audience’s profile consisting of attitudes, tastes, beliefs, values and lifestyles, the easier it will be for them in developing a promotion program. For example, if the company wants to reach the intended target audience with television and magazines, it will be required to know which are the best selling magazines or the most popular TV shows within the market.(Belch and Belch, 2003).for example, it would not be logical to air an advert on our model during a kids show since kids can't buy cars. It would be more appropriate if this was done during a general or adult viewership program. The medium should also have a wide reach and cost effective. Conclusion After planning on the marketing procedure, it is important to evaluate the feasibility of the whole process indicating whether the objectives were realized. Alternate methods or markets have to be targeted. Continuous failure in market penetration may mean the company will have to withdraw from that market altogether. References Brassington, F. and Pettitt, S., Essentials of Marketing, Harlow: Financial Times Prentice Hall, 2005. Brielle, S. ,The Advertising Handbook, 2nd ed., London: Routledge, 2002 Butterfield, L. , Excellence in Advertising the IPA Guide to Best Practice, 2nded, Oxford; Butterworth-Heinemann,1999. Hiebing, G. and Cooper, S.W., The successful marketing plan: A disciplined and comprehensive Approach, New York: McGraw Hill, 1997. John Westwood, How to write a marketing plan(creating success), Boston: Wesley, 1999. Larkin, G.A.,12 simple steps to winning marketing plan, London: Prentice Hall, 2000. Luther, W. Marketing plan: How to prepare and implement it, New York: Amacom, 2001. Norton, Paley, How to develop a strategic market plan: A step-by-step guide, New York, Prentice Hall, I998. Riquelme, P., Do Customers Know What They Want? The journal of consumer marketing, 16(2), 436-452 (2002). Sharon, D., Applied Multivariate Techniques. Journal of Consumer Research, 1999. vol. (3) 67-213 Smith, P. Marketing Communications: An Integrated Approach, 4th Ed, New York: Prentice hall, 2004. Information about Ford also available from, http://www.fordvehicles.com/suvs/escape/features/ (Retrieved 5th march, 2008) Read More