Marketing Planning and Practice
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Week9Lecture9.2Issueswithplanning1.pptxMarketing Planning and Practice UMKDQD-15-2 Week 9 Lecture 9.2
Presented by
Michelle Jackson
Module Leader
w/c 19 April 2021
Planning in Practice
Some thoughts with regard to planning in practice
Marketing planning is longer term in nature and this has its own issues
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Considerations for Planning in Practice
The ability to apply marketing planning can be affected in many ways
Some factors you may wish to consider:
The size and structure of the organisation
The culture of the organisation
The industry in which the organisation operates
The pace of change within this industry
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Learning from Action
Mintzberg, 1973. “Organizational learning is a process of detecting and correcting error.” (Argyris 1977: 116)
Learn from
experience
Monitor
results
Reflect
knowledge in
future actions
Take action
Marketing Planning
Core activity for organisations
Been around since the 1940s, though 1970s more popular
Annual event (for most) though this can vary
Your plans should cover one year unless there is a reason for a different time-frame
Plans can always encourage inflexibility and the opportunity cost of missed opportunities.
Challenges of the Planning Process
Need for information
Not too little
Not too much
`Good’ information
Assumptions
What is/is not important
Constraints
What you should do?
What you can do?
What you want to do?
Perspectives on Strategic Planning
Whittington, R (1993) What is strategy – and does it matter? New York: Routledge
Profit maximising
Pluralistic
Emergent
Deliberate
Outcomes
Processes
EVOLUTIONARY
CLASSICAL
SYSTEMIC
PROCESSUAL
Perspectives on Planning
Classical Approach
Assumes the business environment to be predictable
Uses rational planning methodology such as PESTLE analysis to craft strategy (Mullins, 2007).
Limitation is the uncertainty of events that may occur in the macro environment and render the approach obsolete (Wright, 2000).
Evolutionary
Market driven, “it does not matter whatever the strategy the manager puts in place, it is the market that will decide the best.” (Einhorn & Hogath 1988:114 cited in Whittington 2001, p.16)
Is it realistic to base a strategy only on the needs of the environment irrespective of the resources of the organization (Batamuriza et al, 2006).
Whittington, R (1993) What is strategy – and does it matter? New York: Routledge
Rational and deliberate approach to strategy formulation with a unitary objective of profit maximization (Whittington, 2001).
Classical approach assumes the business environment to be predictable so designs a rational and logical approach that will enable the organization to achieve its goals and objectives.
Systemic - Seeks an approach to strategy based on the socio-economic systems of the environment, and the organization goals that depends on the local rules in which the organization operates (Whittington, 2001).
In this approach both the process and the outcome of strategy must align with the cultural rules of the local society.
Eg. Americans seek unitary goal of profit maximization, the Koreans prefer pluralistic goals of growth and market share.(Whittington 2001).
The evolutionary is an emergent approach to strategy formulation, it relies on the ability of the market to secure a unitary goal of profit maximization.
It believes that 'evolution is nature's cost benefit analysis' (Einhorn & Hogath 1988:114 cited in Whittington 2001, p.16)
What happens in an unstable environment??
Processual - A messy approach - emphasis on bottom-up approach in which strategy emerge from individuals in the organization seeking to include their personnel objectives as part of the organizational goals (Batamuriza et al, 2006). A limitation of this approach is the challenge in the choice of strategy to be adopted and the insecurity of what job functions the managers perform if strategy formulation is a bottom-up approach (Batamuriza et al, 2006).
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Planning in Practice
There are certainly issues with marketing planning
It is one of the most enduring of marketing tools
Resource management is as important today as it ever has been
The planning process encourages careful thought about new ideas and provides a valuable coordination tool
Detailed marketing plans take time and money to produce. Is this the most effective use of these limited resources, especially if the business operates in a fast changing market?
Good plans should provide a sense of direction but allow for flexibility
Perspectives on Planning
Relies heavily on training, organisational leadership
Contextual factors which prohibit marketing planning – a system doesn’t guarantee results
Use of traditional planning is only reliable if the future is to be the same as the past or the present
Good planning is convincing not ‘right’
Why, in certain circumstances, does marketing planning not work? Invariably this is due to either the planning process itself or the conditions and misconceptions within the organisation which impact upon the implementation of the process. To appreciate that imposing a structured marketing planning system in itself is not sufficient to produce the expected results. It is people not, not procedures or numbers, that make systems work. The systems should be tailored to the style of the organisation.
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