What Is the Difference Between a Marketing Plan & a Corporate Plan? | egauteng.info
Learn the difference between having a marketing strategy and plan along with the importance of having both in hand. A business plan is a document describing a company's business objectives and goals. It helps the management team make decisions consistent with the. To examine how companies are affected by economic crises, to assess the effects of marketing strategies on company performance in such conditions, and to.
Large 'executive-level' business plans therefore look rather like a 'predictive profit and loss account', fully itemised down to the 'bottom line'. Business plans written at business unit or departmental level do not generally include financial data outside the department concerned.
Most business plans are in effect sales plans or marketing plans or departmental plans, which form the main bias of this guide. The extent to which financial and commercial numerical data is included depends on the needs of the business. The extent to which this details the sales plan also depends on the needs of the business. Some organizations interpret this to be the same as a business plan or a marketing plan.
You can see that many of these terms are interchangeable, so it's important to clarify what needs to be planned for rather than assuming or inferring a meaning from the name given to the task. That said, the principles explained here can be applied to business plans of all sorts.
Business plans are often called different names - especially by senior managers and directors delegating a planning exercise that they do not understand well enough to explain. Typically these names reflect the department doing the planning, despite which, the planning process and content required in the document is broadly similar. Write your aim large as a constant reminder to yourself, and to anyone else involved. Keeping your central aim visible will help you minimise the distractions and distortions which frequently arise during the planning process.
This provides a vital reference for decision-making and strategy from the start. A strong clear ethical code communicates your values to staff, customers, suppliers, and creates a simple consistent basis for operations which conventional financials, processes, systems and even people, do not address. It is very difficult to introduce ethical principles later into an enterprise, especially when planning shifts into implementation, and more so if problems arise relating to integrity, honesty, corporate responsibility, trust, governance, etc.
It is easy to address issues of ethics and corporate responsibility when you are the owner of a new enterprise. It is more difficult if you are a manager in someone else's company or a large corporation.
Nevertheless ethics and corporate responsibility are highly significant in planning, and strong justification for their proper consideration can now be made. There are now plenty of recent examples of corporations - indeed entire national economies and governments - which have failed because of poor regard to ethical considerations.
The world is changing and learning, slowly, but it is, and anyone ignoring ethics in planning today does so at their own peril. This tends to focus thinking on creativity, innovation, ambition, quality, excellence, perhaps even social good, etc. Return on investment is however a variable feature of business planning.
What Is the Difference Between a Marketing Plan & a Corporate Plan?
It is flexible according to the type of enterprise, its main purpose and philosophy. Planning in traditional corporations at times forgets this basic obligation, especially when a junior manager is asked to 'write a business plan' for the first time.
In traditional profit-driven corporations, when a new manager starts to write a business plan or operational plan for the first time and for some experienced managers also, for the umpteenth timethe manager wonders: What is the aim? What am I trying to achieve? Often when they ask their own manager, the manager has the same doubts. Such enterprises are becoming more popular, and will continue to become so, since the collapse of the western economies inand increasing disillusionment with old-style business thinking.
Instead the main driver of enterprise may be some other purpose. Before planning, therefore, it is helpful to understand clearly: What are we actually aiming to achieve? Junior managers have responsibility for plans and activities which feed into larger departmental plans and activities of senior managers.
The plans and activities of senior managers feed into the divisional plans of executives and directors. There is a hierarchy or tree structure of cause and effects, all hopefully contributing to the overall organizational aim. In many good businesses a substantial business planning responsibility extends now to front line customer-facing staff, and the trend is increasing.
In this context, the business plan could be called also be called a marketing plan, or a sales plan - all departmental plans are basically types of business planning: Also, these principles and methods apply to very large complex multinational organizations, which tend to entail more and different costs, fixed overheads, revenues, and consequently larger planning formats; more and bigger spreadsheets, more lines and columns on each, more attention and people working on the numbers, more accountants, and typically - especially at middle-management level and above - more emphasis on cashflow and the balance sheet, alongside basic 'profit and loss' planning.
Knowing the market enables you to assess and value and plan how to engage with it. A common failing of business planning or operational planning outside of the 'business' world, is to plan in isolation, looking inward, when ideas can seem very positive and reliable because there's no context and nothing to compare. Hence research is critical. And this applies to any type of organisation - not just to businesses. Planning very much concerns processes. The principles of marketing will explain additionally how to put meaning and values into what you plan.
Your market research should focus on the information you need, to help you to formulate strategy and make business decisions. Market research should be pragmatic and purposeful - a means to an end, and not a means in itself. Market information potentially covers a vast range of data, from global macro-trends and statistics, to very specific and detailed local or technical information, so it's important to decide what is actually relevant and necessary to know.
Market information about market and industry trends, values, main corporations, market structure, etc, is important to know for large corporations operating on a national or international basis.
Difference Between a Business Plan & a Marketing Plan | Your Business
This type of research is sometimes called 'secondary', because it is already available, having been researched and published previously.
This sort of information is available from the internet, libraries, research companies, trade and national press and publications, professional associations and institutes. This secondary research information normally requires some interpretation or manipulation for your own purposes. However there's no point spending days researching global statistical economic and demographic data if you are developing a strategy for a relatively small or local business.
Far more useful would be to carry out your own 'primary' research i. A lot of useful primary market research can be performed using customer feed-back, surveys, questionnaires and focus groups obtaining indicators and views through discussion among a few representative people in a controlled discussion situation. This sort of primary research should be tailored exactly for your needs.
Primary research requires less manipulation than secondary research, but all types of research need a certain amount of analysis. Be careful when extrapolating or projecting figures to avoid magnifying initial mistakes or wrong assumptions. If the starting point is inaccurate the resulting analysis will not be reliable. For businesses of any size; small, local, global and everything in between, the main elements you need to understand and quantify are: Keep the subjects simple and the range narrow.
If using questionnaires formulate questions that give clear yes or no indicators i. Try to convert data to numerical format and manipulate on a spreadsheet. Use focus groups for more detailed work. For large research projects consider using a market research organization because they'll probably do it better than you, even though this is likely to be more costly.
If you use any sort of marketing agency ensure you issue a clear brief, and that your aims are clearly understood. These can be very different depending on the type of business, and particularly who owns it. Traditional business models are not necessarily the best ones.
The world is constantly changing, and establishing a new business is a good time to challenge preconceptions of fundamental business structure and purpose.
A business based on a narrow aim of enriching a few investors while relegating the needs and involvement of everyone else may contain conflicts and tensions at a deep level. There are other innovative business structures which can inherently provide a more natural, cooperative and self-fuelling relationship - especially between employees and the organization, and potentially between customers and the organization too.
When you have established or confirmed your philosophical and ethical position, state the objectives of the business unit you are planning to develop - your short, medium and long term aims - typically 'short, medium and long' equate to 1 year, years and 3 years plus.
In other words, what is the business aiming to do over the next one, three and five years? Grand visions need solid foundations. All objectives and aims must be prioritised and as far as possible quantified. If you can't measure it, you can't manage it. It announces clearly and succinctly to your staff, shareholders and customers what you are in business to do. You can involve staff in defining and refining the business's mission statement, which helps develop a sense of ownership and responsibility.
Producing and announcing the mission statement is also an excellent process for focusing attention on the business's priorities, and particularly the emphasis on customer service. Whole businesses need a mission statement - departments and smaller business units within a bigger business need them too. Under normal circumstances competitive advantage is increased the more you can offer things that your competitors cannot.
Good research will tell you where the opportunities are to increase your competitive advantage in areas that are of prime interest to your target markets.
Develop your service offering to emphasise your strengths, which should normally relate to your business objectives, in turn being influenced by corporate aims and market research. The important process in developing a proposition is translating your view of these services into an offer that means something to your customer. The definition of your service offer must make sense to your customer in terms that are advantageous and beneficial to the customer, not what is technically good, or scientifically sound to you.
Thus, the definition of IBM's "corporate mission" in the s might well have been: The idea precedes the deed. This will be not least because its strategies will be consistent; and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service"; a vision originally promoted by the charismatic Watson dynasty.
The emphasis at this stage is on obtaining a complete and accurate picture. In a single organization, however, it is likely that only a few aspects will be sufficiently important to have any significant impact on the marketing plan; but all may need to be reviewed to determine just which "are" the few. A "traditional" - albeit product-based - format for a "brand reference book" or, indeed, a "marketing facts book" was suggested by Godley more than three decades ago: Financial data --Facts for this section will come from management accounting, costing and finance sections.
Product data --From production, research and development. Sales and distribution data - Sales, packaging, distribution sections. Advertising, sales promotion, merchandising data - Information from these departments. Market data and miscellany - From market research, who would in most cases act as a source for this information.
Difference Between a Business Plan & a Marketing Plan
His sources of data, however, assume the resources of a very large organization. In most organizations they would be obtained from a much smaller set of people and not a few of them would be generated by the marketing manager alone. It is apparent that a marketing audit can be a complex process, but the aim is simple: Accordingly, the best approach is to accumulate this material continuously, as and when it becomes available; since this avoids the otherwise heavy workload involved in collecting it as part of the regular, typically annual, planning process itself - when time is usually at a premium.
Even so, the first task of this "annual" process should be to check that the material held in the current "facts book" or "facts files" actually "is" comprehensive and accurate, and can form a sound basis for the marketing audit itself. The structure of the facts book will be designed to match the specific needs of the organization, but one simple format - suggested by Malcolm McDonald - may be applicable in many cases.
This splits the material into three groups: The last of these is too frequently ignored. It needs to concentrate on the 20 per cent of products or services, and on the 20 per cent of customers, which will account for 80 per cent of the volume and 80 per cent of the profit. The 7 P's can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plans.
It is only at this stage of deciding the marketing objectives that the active part of the marketing planning process begins'.
This next stage in marketing planning is indeed the key to the whole marketing process. The "marketing objectives" state just where the company intends to be; at some specific time in the future.
James Quinn succinctly defined objectives in general as: They are essentially about the match between those "products" and "markets.
What Is the Difference Between a Marketing & Business Plan? | egauteng.info
They are part of the marketing strategy needed to achieve marketing objectives. To be most effective, objectives should be capable of measurement and therefore "quantifiable. An example of such a measurable marketing objective might be "to enter the market with product Y and capture 10 per cent of the market by value within one year. The marketing objectives must usually be based, above all, on the organization's financial objectives; converting these financial measurements into the related marketing measurements.
He went on to explain his view of the role of "policies," with which strategy is most often confused: Price- The amount of money needed to buy products Product- The actual product Promotion advertising - Getting the product known Placement- Where the product is located People- Represent the business Physical environment- The ambiance, mood, or tone of the environment Process- How do people obtain your product In principle, these strategies describe how the objectives will be achieved.
The 7 P's are a useful framework for deciding how the company's resources will be manipulated strategically to achieve the objectives. It should be noted, however, that they are not the only framework, and may divert attention from the real issues. The focus of the strategies must be the objectives to be achieved - not the process of planning itself.
Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 7 P's.