Porter's Five Main Stages Of A Marketing Plan

868 Words 4 Pages
As stated before, marketing plan is the central instrument for directing and coordinating the marketing effort. Marketing plans help companies to focus on marketing efforts and define their marketing objectives and how they intend to achieve their objectives. We will now have a brief look at constituents of a typical marketing plan here. The marketing plan can be prepared in 5 main stages. These stages are; analysis, objectives, strategies, tactics and controls (Porter,1980). Analysis stage puts the facts about current situation on issues like marketing environment, political and economical conditions, laws, current technology, socio-cultural aspects, demand trends, stakeholder interests and internal resources available for the market …show more content…
All these aspects should be put realistically to lead to realistic comments depending upon them. PEST is the acronym of political, economical, socio-cultural and technological. These four factors are evaluated in PEST analysis to be able see the big picture about the environment. Porter’s five forces analysis has some similarities with other tools especially with PEST analysis but this one focuses mostly on single, stand alone business or SBU, rather than a single product or a product line. The five key areas that this analysis takes a look at are the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes and competitive rivalry (Figure II.4.). The second stage is setting marketing objectives. These objectives should be as much specific, measurable, achievable, realistic and timed as possible (Kotler, 2000). Objectives should provide these features because we will create our marketing plan according to objectives we set here. If our objectives are not realistic, specific, measurable or achievable, our marketing will eventually fail in the end. The third stage is strategies. This part is mainly the segmentation of the market and choosing the target market …show more content…
We will have a brief look at Gap analysis. It is a simple and a useful method. The first step is to decide upon how you want to judge the gap over time like by market share, by profit, by sales and so on. Then you have two questions to ask: “Where are we now?” and “where do we want to be?” The difference between the two is the GAP. (Figure II.5.) The stage four is tactics. In this stage, the strategy set in previous stages is converted into tactics through P’s of marketing. In marketing literature, these P’s are started with 4, and then extended to five and now we can see in some resources that this P’s are extended to seven (Aaker, 2005). We will not discuss the number of P’s here but we will take a look at them as they affect the marketing strategy. These famous P’s are product, price, promotion and place. Later, people are added to the list as the 5th P (Kotler,2000). Some sources add process and physical evidence into this list. Since we will take a closer look at this marketing mix concept later on, we will not go into detail here anymore. The last stage in the marketing plan is control. Planning will not work or even we can say doesn’t worth

Related Documents