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Many businesses do not purposely destroy themselves, but they eventually
die from inaction. They undergo a slow, malingering illness, doing things
the way they have always been done, because it worked that way before.
Playing it safe, they do not rock any boats. Besides, following a
precedent is an easier, more comfortable substitute for thinking.
Innovation is an alien word for them.
Slowly, but surely, their customers go elsewhere, leaving them to their
own demise. Finally, they will launch a frenetic effort to save
themselves, but they have already created their own Armageddon. Sounds
exaggerated? Business graveyards are littered with skeletons of small
enterprises that were, at best, reactive rather than proactive.
According to one survey, 70% of new businesses fail within six to seven
years. Those that succeed will become marketing-driven, customer-focused,
and will use integrated marketing plan, not a business plan, as the basis
of their operation. But even that is not necessarily enough to turn a
business around. There are road blocks in every enterprise where politics,
hidden agendas, personalities, top-down dictates, indifferences,
contentment, or just plain laziness are commonplace. Owners of businesses
often say that they do not have time to prepare a marketing plan, or that
formalized plans are too burdensome, too time-consuming for their small
enterprise. They say it is okay for the large companies, but unnecessary
for them. The fallacy of this thinking is that they cannot put their plan
in writing, the odds are pretty good that they really do not have a plan.
Resistance to change begins when the owner or chief executive does not
demonstrate good leadership and a commitment to the importance of having a
marketing-driven and customer-focused plan; one where marketing is not
regarded just as a selling activity, but one where many other important
marketing functions are also included.
Committed and knowledgeable planners understand the "6 P's" of the
marketing mix: product, people, price, promotion, place, and profit. They
make provisions for all of these critical functions in their marketing
plans. Almost always, most marketing plans, if they exist in written form,
are incomplete. They do not include the full range of all marketing
components in the marketing mix:
Customers and markets, both existing and potential
Previous sales results and profitability
Provisions for existing and new products or services
Analysis of competitors, their strategy and direction
Pricing strategy and profitability
Customer service and satisfaction
Sales methods and channels of distribution
Staffing, administration, training, and compensation
Sales and product forecast by monthly increments
Expense budgets by monthly increments for staffing, travel,
advertising/promotion, customer service, training, market research,
compensation, etc.
Most marketing plans are sketchy, vague, and lacking in specifics.
Generally, they include guess estimates out of expedience that lack
factual data because enough time was not allocated to prepare a thorough,
factual data base from which to build a solid foundation for an effective
marketing plan. The time to start the planning process for the next fiscal
year, if it starts in April, is early in December. This avoids
interference with day-to-day work requirements, and it allows time to
gather information necessary for a good plan. Hurried planning can cause
disastrous results leading to misuse of resources.
Planning alone does not ensure successful performance, but it provides
disciplined appraisal, goal setting, and action steps to maximize success.
It is a pre-determined application of resources for their most profitable
use. A marketing plan is an organized thought process and communication
system.
Plans should be in writing to reduce misunderstanding and force clearer,
more organized thinking. Similar results may be possible from verbal plans
in some businesses, but experience proves that written plans are the best
communication. Thinking is given visibility. Many other important benefits
result from formal marketing plans
Resources are used more efficiently because priorities are clarified with
a focus on key marketing elements
Better organization, use of time, an accountability are created from the
planning process.
Planning stimulates the future and foresees threats and opportunities.
Budgeting is more realistic because anticipated costs are evaluated in
advance of expenditure.
Planning produces innovation. New ideas are generated.
As a communication tool, marketing planning encourages more participation.
Formal plans will aid in obtaining or preserving avenues of financing.
Marketing plans are usually required as a prerequisite for loans.
If done methodically, marketing planning is an intricate and
time-consuming process. That is why it is important to start early and
work around the normal demands of the business.GE is a good example of
that. In poorly managed situations, planning activity drifts along into
the next fiscal year because a concerted effort is not made to start and
stop on time. If this represents a deterrent, consider the alternatives.
Chance and chaos are not a prescription for survival and growth. Nor are
they a sign of control and purpose in the management of the business,
whether small or large.
A sign of a good plan is that someone unfamiliar with the business can
read and understand it easily. Though they vary in scope and method
according to business size and diversity, plans have certain elements
common to all good ones. Plans must be:
Understandable: Well-organized and readable.
Complete: Including all internal and external elements of marketing
activity.
Specific: Pinpoint goals, strategies, and tasks with accountability for
completion.
Adaptable: Responsive to external marketing environment and compatible
with company goals and resources.
Flexible: Adjustable to changing conditions if unforeseen events require
alterations.
The key aspect to be remembered is: Marketing plans are not mandates; they
are only guidelines or direction. They are not commands; they are
commitments. They don't determine the future, but they are a means of
mobilizing the resources and energies of the business in order to create
the future - being proactive rather than reactive.
Authored By:
Ritesh Sud & Pritesh Chothani,
Placement Committee & Brand Knowledge Forum
IMT,Ghaziabad
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Writers
Profile
Pritesh Y. Chothani, Ritesh Sud
IMT,Ghaziabad & Brand Knowledge Forum
pritesh.c@gmail.com,
riteshsud@gmail.com,
brandknowledge@gmail.com
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