Promotional plan
| Promotional plan |
|---|
| See also |
Promotional plan is part of a business plan, which includes an organizational, production and financial plan. It is a document covering a period of at least one year, containing detailed information on the introduction of new products or services to the market or improvement of the approach to existing products(Liche B.M. 2019, 3-5).
Structure of of the promotional plan
The companies currently operating on the market compete with each other to attract customers for the products and services they offer, and thus the financial resources from their sales. The factor contributing to the increase of competitiveness of the company on the market may be a properly prepared marketing plan. The structure of the marketing plan includes (R.I. Choi, Ch.K. Jung,2015, pp.12-15):
- a management summary,
- current analysis of the marketing situation,
- Analysis of opportunities and problems,
- marketing objectives,
- marketing strategy,
- the action programme,
- the budget,
- a forecast of the profit and loss account,
- control.
The promotionsal plan should be drawn up in such a way that it can be modified. The environment in which enterprises operate is changing very quickly, so it is necessary to adapt companies to new environmental conditions (R.I. Choi, Ch.K. Jung,2015, pp.12-15).
Creation of a promotional plan
Promotional plan can be drawn up according to two independent planning processes: strategic and operational. The logic of the company's decision-making process requires strategic decisions to be taken first and only then operational. The process of creating a promotional plan consists of four stages (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34):
- analysis of the situation,
- target market selection,
- the definitione of strategic objectives,
- choice of strategy.
The analysis of th e situation is based on the detailed characteristics of the external and internal operating conditions of the enterprise (e.g. sales volumes, sales markets, competitors). After a detailed analysis of the situation, the undertaking selects the target market (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34). The undertaking identifies target markets, presents a pricing strategy and presents distribution channels. The next element is the definition of strategic objectives, e.g. increase in sales, increase in product quality, etc. (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34). The next element is the definitione of strategic objectives, e.g. increase in sales, increase in product quality, etc. The final stage of strategic planning is the selection of a strategy that describes the most effective way to achieve the objectives. On the other hand, operational planning includes (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34):
- definition of operational objectives
- formulation of an action plan
- implementation of the plan
- final control and evaluation of results
The operational objectives are defined by precisely defining the objectives that the company intends to achieve within a specified period of time, e.g. increasing sales by 10% within the next year. The next step is to define a plan of action to achieve a specific goal in the assumed time and the implementation of a specific plan. The last stage is to control the results, i.e. to check whether the adopted objectives and strategies have been achieved (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34).
Analysis of the company's situation in the promotional plan
Starting work on creating a promotional plan of the company it is necessary to analyze its marketing situation. For this purpose, the following methods are used (H.J., van Heerde, et all., 2000,pp.383–395):
- SWOT analysis,
- a model of M. Porter's 5th force,
- the life cycle of the product,
- market segmentation.
Most often, marketing analysis includes (H.J., van Heerde, et all., 2000,pp.383–395):
- analysis of general economic indicators for the country where the business activity is conducted,
- industry analysis of sales, trends and trends;
- target market analysis;
- analysis of buyers' behaviour;
- competitor analysis,
- marketing-mix analysis,
- identification of weaknesses in the company,
- identification of the strengths of the company;
- analysis of macro-environmental factors,
- identification of market opportunities and threats (H.J., van Heerde, et all., 2000,pp.383–395).
Customer orientation in the promotional plan
The growing importance of marketing in the company was caused by factors such as(M. Trusov, et all., 2000, pp.71-81):
- globalization,
- intensifying competition on the market,
- the creation of numerous substitutes for goods,
- increasingly demanding customers.
It is well known that the prerequisite for success on the market and the source of profit of any company are its customer (M. Trusov, et all., 2000, pp.71-81). Therefore, appropriate marketing activities are an important element in every enterprise. Contemporary marketing concept is characterized by constant undertaking actions aimed at gaining customer satisfaction and satisfying his needs. Each customer has different requirements and needs, therefore, it is necessary to identify groups of customers and prepare appropriate plans of marketing activities, enabling an individual approach to the customer. The main goal of marketing development in a company is to constantly expand the sales markets and increase the number of customer(M. Trusov, et all., 2000, pp.71-81) . Business management is the art of taking advantage of opportunities and limiting or avoiding risks. That is why strategic marketing plans are so important in the company. The strategic approach consists in perceiving the relationship between the enterprise and the surrounding environment (customers, consumers, suppliers) and the surrounding environment (economic, political and legal dimension). Marketing planning is therefore a process consisting in identifying, analyzing and interpreting many factors affecting the enterprise and determining the objectives of the enterprise and ways of achieving tchem(M. Trusov, et all., 2000, pp.71-81) .
Marketing research in the promotional plan
The market situation is constantly changing, new decision-making problems arise and it is more and more difficult to predict the consequences of decisions made. Therefore, it is necessary to conduct marketing research and market analysis (M. Camiller, 2017, pp.19-25). Marketing research covers the information needs of the company and analysing and interpreting data used to make important marketing decisions. Marketing research only minimizes the risk associated with the decisions taken, and does not completely eliminate them. However, skillful use of information from research helps in making accurate marketing decisions, which will be included in the promotional plan (M. Camiller, 2017, pp.19-25) .
References
- Camiller M., (2017). Strategic Planning and the Marketing Effectiveness Audit
- Choi R.I., Jung Ch.K., (2015). Construction of Communication Promotional Plan through the Global Lecture Contents TED
- Liche B.M., (2019). Stages of promotional planning and strategies for a direct mail business
- Naik P., Raman K., Winer R.S., (2005). Planning Marketing-Mix Strategies in the Presence of Interaction Effects, ”Marketing Science” vol. 24(1), p.25-34
- Trusov M., Bodapati A.V., Cooper L.G., (2006). Retailer promotion planning: Improving forecast accuracy and interpretability, ”Journal of Interactive Marketing" vol. 20(3‐4), p.71 –81
- Van Heerde H.J., Leeflang P.S.H., Wittink D.R.,(2000). The estimation of pre- and post-promotion dips with storelevel scanner data, ”J. Marketing Res” vol. 37(3), p.383–395
Author: Bartosz Wojak
|
