- 20 Marks
Question
A Marketing Officer who has just been employed by NACAP Ltd has identified the need for a marketing plan for the company although the Managing Director and the wife, who own the business, do not share her view. She is convinced that there should be a corporate strategy to drive the marketing plan.
Required:
a) Explain FOUR (4) relationships between corporate planning and marketing strategy. (10 marks)
b) Identify FOUR (4) sections in the format of a marketing plan and describe the contents of the sections identified. (10 marks)
Answer
a) Relationships between corporate planning and marketing strategy:
| Corporate Planning | Marketing Strategy | Example |
|---|---|---|
| Set Objectives | Objectives are set for the organisation as a whole, e.g., increase profit by 20%. | Set for a specific product, service, or market, e.g., increase market share by 20%. |
| Internal Appraisal | Review the strengths and weaknesses of the different aspects of the organisation. | Review strengths and weaknesses of marketing activities by conducting a marketing audit. |
| External Appraisal | Review opportunities and threats (PESTEL) factors impacting the whole organisation. | Focus on environmental factors affecting customers, products, and markets. |
| Strategy Development | Develop strategies to fill the gap, e.g., diversifying, entering new markets. | Specifies resources to be allocated to marketing and how they should be used. |
| Implementation | Strategies are delegated to departments of the business. | Implement plans, e.g., securing advertising space. |
| Control | Results are reviewed and the planning process starts again. | Evaluate if market share objectives were achieved. |
(4 points @ 2.5 marks each = 10 marks)
b) Sections in the format of a marketing plan:
| Section | Description |
|---|---|
| Executive Summary | Summary of the main goals and recommendations. |
| Situation Analysis | SWOT analysis and forecasts. |
| Objectives and Goals | What the organisation is hoping to achieve or needs to achieve. The objectives must be SMART. |
| Marketing Strategy | Selection of target markets, the marketing mix, and marketing expenditure levels. |
| Strategic Marketing Plan | 3 to 5 years or more, defines the scope of product and market activities and aims to match the activities of the organisation to its distinctive competencies. |
| Tactical Marketing Plan | One year time horizon, generally based on existing products and markets, concerned with marketing mix issues. |
| Action Plan | Marketing mix strategy (7Ps). |
| Budgets | Developed from the action programme. |
| Controls | These will be set up to monitor the progress of the plan and the budget. |
(4 points @ 2.5 marks each = 10 marks)
- Tags: Business Planning, Corporate Planning, Marketing Strategy, Strategic Management
- Level: Level 1
- Topic: Introduction to Business Strategy
- Series: NOV 2018
- Uploader: Uploader1