Marketing Management Chapter 2: Marketing Planning

Featured

Image courtesy of https://www.pexels.com/royalty-free-images/

For a complete list of all chapters so far, you can visit the Marketing Management Tab on the blog!

Chapter 2 Summary: Marketing Planning 

Summary

In general, the use of plans conveys a number of advantages: (1) consistency, (2) responsibility, (3) communication, and (4) commitment.

The corporate plan should contain three main components: Where the organization is now? Where the organization intends to go in the future? How it will organize its resources to get there?

Corporate objectives, which are usually more complex than just financial targets, should reflect the corporate mission (including customer groups, customer needs, and technologies), which may reflect a strong corporate vision.

The starting point of the marketing planning process is the marketing audit, the output of which may be one or more facts books, covering a wide range of questions about internal (“product”-related) and external (“environmental,” as well as market) factors, and the marketing system itself, as well as the following basic questions:

Who are the customers? What are their needs and wants? What do they think of the organization and its products or services?

This step will lead to the production of marketing objectives and subsequently to marketing strategies (typically covering all elements of the Price, Product, Place, and Promotion).

A suggested structure for the marketing plan document itself might be as follows:

  1. Mission statement
  2. Summary of performance (to date, including reasons for good or bad performance)
  3. Summary of financial projections (for three years)
  4. Market overview
  5. SWOT analyses of major projects/markets (Strengths, Weaknesses, Opportunitites, Threats)
  6. Portfolio summary (a summary of SWOTs)
  7. Assumptions
  8. Objectives
  9. Financial projections for three years (in detail)

All these detailed plans should be, as far as possible, (1) number-based and “deadlined,” (2) briefly described, and (3) practical. These programs must be controlled, particularly by the use of budgets, for which the overall figures may be derived by (1) affordable, (2) percentage of revenue, (3) competitive parity, or (4) zero-based budgeting.

Finally, the actual performance of the marketing strategy needs to be examined. The most important elements of marketing performance are (1) sales analysis, (2) market share analysis, (3) expense analysis, (4) financial analysis, and (5) relationship analysis. Although much of the relationship analysis may not be quantifiable, it has become an increasingly important determinant of a company’s long-term success.

Marketing Management: 4th Edition Available Now!

Featured

Hello! I have very pleased to announce the publication of Marketing Management: 4th Edition with the help of Springer Publishing. I would like to give a special thank-you to Masaaki Kotabe, Demetris Vrontis, and Riad Shams for their collaboration.

Over the coming weeks, I will be releasing promotional summaries of the chapters of Marketing Management right here on this page. You can look for new Marketing Management posts every Wednesday!

If you are interested in purchasing a copy of the book and would like it signed, please contact me. For purchasing, please visit https://www.springer.com/gp/book/9783030669157

How Grateful Will the U.S. Be?

Featured

A new commentary published in CEO World and the Daily Tribune

Hello! I would like to share my most recent commentary on Hungary and Prime Minister Orban. Please find the complete text below.

The other day I was watching a Tucker Carlson talk show that focused on Hungary. Several reasons motivated my interest: One was that Hungary is hardly ever mentioned in broadcasts or social media, and if so, only with heavy negativity, as the bad guy. For example, US President Joe Biden referred to Hungary´s democratically elected Prime as a “thug.” Second, Carlson’s visit provided me an opportunity to instantly check claims made since my wife was in Hungary. It was also a good opportunity to improve my understanding of the Hungarian condition and also of my analysis resulting from my investigations: That Hungarians are not feckless monopolists living in a scrapped together dictatorship. There are, and in April next year again will be, serious elections which, so far have resulted in clear and stable majorities. As reported by their embassy communications, their “thug” made major contributions by accommodating, feeding and clothing Afghani refugees. The education sector in Hungary, particularly at the university level, is said to be under strong government directive and control. I could not find that in conversations, but rather encountered domestic university conditions of good structure and high repute. Students are ready for discussions and analysis about great varieties of topics. Hungarian Nobel prize winners are extraordinarily frequent subjects. Most recently, Katalin Kariko was a major contributor to the mRNA development, the basis of the Pfizer Covid vaccine. My excellent Washington dentist tells me about Istvan Urban of Budapest where he goes for learning and training. When Mr. Carlson interviewed the Hungarian Prime Minister Orban, the thoughts on encouraging families, education and support of students and his definitions of national boundaries did not appear very controversial. The policy steps taken have yielded good results. Orban also has developed his own approach to government response to incoming migration. Guided by his belief that 10 million Hungarians cannot accommodate a large number of migrants, he has his border guards support migrants and then have them escorted back to the other side of the border. I have witnessed large groups of migrants pick fruit trees bare within minutes, leaving their owners without income and food. When implemented, Orban’s policy was firmly rebuffed by Europeans, even though by now they have adapted his approach as well. Hungary has given much ongoing support to Europe. Even though located on the verge between Asia and Europe, its society has always seen itself as clearly a part of Europe. It has held European occupants at bay as a member of the Austrian-Hungarian empire, limited the century-long occupation by the Turks, and gloriously lost battles that protected the West. I remember when in 1956, in an eerie similarity to Afghanistan today, American encouragement led to all-Hungarian revolutions against the occupying Soviet forces that resulted in many killings and emigrations from Hungary. I remember, as do many others, how the Hungarian politician Gyula Horn opened the border from Hungary to Austria, which permitted East Germans to flee in large numbers and triggered the beginning of German reunification. For all these good measures delivered by Hungary, I have great difficulty finding any long-term gratitude as payback. Yes, politics tends to be reflected by the steps of the moment, but perhaps, as we appear to redesign relations, obligations, and renew spheres of interests, this might be the right time to forge relations that are based on long-term history, making up for past services rendered within a Europe in flux. Such obligations deserve to be addressed clearly and driven by transparency. Trying to make opposition whither by silencing it or ignoring it will not work in an era of global communication. Closer and better recognition of the past may well be the key to a realignment and a better future for all. In conclusion, the dimensions highlighted by Tucker are true. His perspective of Hungary, confirmed by my wife and my personal insights emerge with little challenge. I wish the country well.

International Business, 9th Edition

Featured

Hello! I am pleased to announce the upcoming publication of a new edition of International Business in collaboration with Cambridge University Press. This book is expected soon in the next coming months, and I am very excited for its release. If you are interested in getting your copy of the text signed, please contact me via email.

The updated cover for the new version!

Here is a brief description from Cambridge University Press:

“Thoroughly updated, the 9th edition of this bestselling textbook incorporates global trends and data, supported by an exemplary case selection based on firms from around the world. The internationally cited author team of Czinkota, Ronkainen, and Gupta balance conceptual understanding of business theory with the day-to-day realities of business practice, preparing students to become successful participants in the global business place. This edition brings greater focus on Asia and emerging markets, as well as Brexit, the impact of COVID-19 on business and the importance of technology and the digital space to international business practice. Through its discussion and analysis, the book guides students to a greater understanding of contemporary business issues and helps them to develop new tools of analysis. Covering all key aspects of international business, the authors emphasize a few key dimensions: international context, role of government in international business, small- and medium-sized firms, and social responsibility.”