Scope of the marketing planning:
The planning for the marketing is an extension of sales forecasting beyond the point where the future course of events has already been predetermined by past or present decisiosn. It implies a through examination of the business enterprise and the whole environment in greater depth. Sales forecasting is short term in the nature, say one or two years at best. So its scope is narrow. But marketing planning has to look further ahead, a medium term view of about five years ahead and a long term view of about a decade or more. Marketing planning is a system like any other system comprising inputs, transformation processed and outputs. The scope of marketing planning extends far beyond products and markets. The area within an enterprise in which marketing planning may have a useful place include the following:
Product policy issue: in a multi product firm, there is a requirement to phase on in any orerly sequence when the gestation period for new products grows longer and longer when the actual market life of the product becomes shorter and shorter.
Industry supply and demand issues: a correct appreciable and analysis on these issues over the aspects like:
1. Market and consumer chacacterized which determine the factors affecting demand for the products of a business and its growth prospect,
2. Cost and investment characterized which the supply of strongly affect industry must supply,
3. Thecnology which affects the degree to which the supply of a product is flexible and the extent to which the new product can be made with the shame resources; and
4. The structure of the industry determines the extent and nature of the competition in that industry, for example, degree of concentration in the industry barriers to entry into the industry and so on.
Competitive analysis and strsyegy formation: there are concerned with the way in which a firm can compete more effectively to strengthen its market position. The marketing planner should identify and understand the determinants of competitive like:
1. Rivraly among existing firms
2. Threat of new entrants
3. Bargaining power of the buyers
4. Bargaining power of the suppliers, and
5. Threats of substitute products or services
Market share analysis: although general economic conditions of a country as well as industry dremand are important while determining the scope of the marketing planning, most company decision makers like to know, what is the demand for a particular product produced by the company in most cases, the product must be priced in competition with the other products, and the share of the market is determined by the merits, the product, and the marketing set up of the company. In determining the present and long term demand for a company's products, the method of market share analysis comes to play a great role. A significant advantage of market share analysis is that it requires an explicit evaluation of competition and of company's policies and market plans in terms of effects of these variables on a firm's position in the industry. Market share analysis becomes highly effective then the trends are reasonably preditable and competition is centred on market, share. However, in same industries like fashion garments, market shares are very unstable. Any attempt to project a market share based on historical data is likely to be misleading both in the short run and in the long run. It may be pertinent to note that share of market is a measure that is most significant meaningful if industry can be precisely defined in the terms of directly substituitable, non differenciated products. In practicle, the measures of market share can only be approximations of market positions.
National planning issues: there is a closer relation between national planning and enterprises marketing planning. For example, if the government reduce the tax rate, the propensity of consumers to spend more on durable goods is likely to increase. And most companies selling TV sets, refrigerators; and care will be optimistic about their sales. On the other hand, if the government raises the prices of petroleum to acquire more resources, the demand for the car will fall. The marketing will planning has to understand the implications of these conflicting national policies for determining its scope of the marketing plans.
Communication for performance: with the design of a formal marketing planning ststem, the second level marketing managers and executives get guidelines in the prepareation of their strategic plans. The second level executives are interested to know two things: what are the goals of planning and what is their role in achiving the goals. The right answer will differ from company to company. The marketing planning system provides the scope to determine how goals should be communicated and how specific these should be in the actual practise.
Marketing with budgeting: there is a close like between planning and budgeting for marketing. For example, a division sales forecast prepared in the first planning cycle may subsequently become the sales commitment for the next year's marketing operations budget.
Marketing situation analysis: the nature of marketing plans is largly determined by the nature of situations or circumstances in which a company operates. Therefore, a careful analysis of a company's analysis situation is a pre -requiste of normal marketing strategy planning. The relevant issues to be considered are: assessment of past and present marketing strategies, marketing organization structure, styles of key line marketing managers, and the need to integrate the marketing planning activity with the existing management systems in the company.
Contingency planning and situational design: the marketing planning system requires a knowledge of the future which may be certain, uncertain and unknown. With respect to the aspects of the future which are certain, a commitment planning for marketing can be adopted with provisions for appropriate controls to avoid any mistakes. When some aspects of the future are uncertain, a contingeny planning is required and the marketing management should prepare a plan for each evantulity so that it can quickly exploit the opportunities. A contingency plan for marketing is a part of its formal strategy plan whose basic purpose is to achieve a high state of readiness is countingencies and reduce risks. Since most business decisions are taken under highly uncertain conditions a contingency planning for marketing forces the management to identify and evaluate cricital assumptions to remain alert during execution of strategy and to respond swiftly to contingencies thus reducing surprices and risks.