Porter's Five Main Stages Of A Marketing Plan

Improved Essays
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

  • Improved Essays

    Overview of Hobbycraft Hobbycraft first opened in 1995 as a craft and arts superstores in the United Kingdom. Hobbycraft specializes on crafts, hobbyist materials and crafts. The company enjoys the first that it was the first craft and arts superstore to be opened in Europe and today it has more than 35,000 crafts and arts products with at least 250 suppliers available. In short, the company has nearly all the products that its customers might need in creative arts (Ryan, 2011, p. 23). Hobbycraft have a unique and outstanding vision, mission, core competencies and goals that has enabled its establishment as a market leader in the industry.…

    • 1471 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Cango Strategic Planning

    • 904 Words
    • 4 Pages

    The Strategic Planning The strategic planning is an inescapable phase of the launching of a project. Today leader in its market, CanGo can see itself ousted tomorrow. It leads to permanent changes from now on to adapt itself to the new economic rules. In this context, the strategic planning is an inescapable phase of the launching of their Gaming Online project. 1.…

    • 904 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    501 Marketing Management Mid term exam The answer of each question should be at least two paragraphs. Follow the APA writing standards. 1. Indicate the differences and similarities between the following terms: Marketing Plan, strategic Marketing Plan, and tactical Marketing Plan.…

    • 1671 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Mkt 271 Reaction Paper

    • 811 Words
    • 4 Pages

    What expectations do you have about the class? My expectations for MKT 271 are to learn and gather as much knowledge as possible. While completing my AAS in Organizational Management degree, I took a retail marketing class and realized that marketing was interesting to me. I am looking forward to increasing my knowledge with every aspect of marketing.…

    • 811 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Dish Network would use both PEST and Porter’s 5 Forces analysis because these tools offer an effective analyses areas of a strategic plan for the company. PEST analysis is used by marketers to analyze the political, economic, socio-cultural, and technological changes PEST is a framework or used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, which should be identified, understood and analyzed by the company so it can achieve and take advantage of the opportunities they present (MindTools, 2016). Porter’s 5 forces is a model used to explore the environment in which a product or company operates to generate a competitive advantage and is based on the insight that a corporate strategy should meet the opportunities and threats while trying to maintain a competitive advantage over rivals (MindTools, 2016). Political factors surrounding Dish Network are in June, 2016 when Dish Network failed to…

    • 711 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The marketing plan is a strategy to achieve more; it gives a clear picture of different components that will facilitate “Aman Chocolates” to implement marketing activities to provide great investment returns. This marketing plan is designed to match the company strategy and it will also help the officials to get control over the internal and the external factors that will persuade the company's success in the Victorian market. This plan will help to describe the company’s business products and services, completion and strategy.…

    • 899 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The Marketing Plan Elibah Bey Kaplan University The purpose of this paper is to create and describe the marketing plan for Eli’s Beauty Service, which will offer a variety of spa and salon services to a specific target market. I will describe the target market and the place where my business will be located and how the location caters to my target market. Additionally, I will describe how my business will be promoted and advertised in order to inform and publicize the business to my target market. Moreover, I will provide a three-month budget layout for advertising via different sources that cost money.…

    • 1253 Words
    • 5 Pages
    Great Essays
  • Great Essays

    INTRODUCTION In considering the macro-environment, the importance of analysing the factors that can have an effect or influence the demand and supply of an organisation must be put into application (Kotter and Schlesinger, 1991). According to Dr. Paul (2014) “A PEST/PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental factors that have an impact on an organisation”. The PESTEL factors are those components that make up the macro-environment. These factors include political, economic, social, technological, environmental and legal factors.…

    • 1345 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Case Study: Premier Group

    • 813 Words
    • 4 Pages

    Business plan is a way to define business objectives with action plans. However business plans are different from marketing plans because unlike marketing plans, business plans do not have action plans, but they have guidelines and strategies to achieve future objectives of the business (Payne & McDonald, 2012). Therefore, one must know how to determine business objectives before designing a business plan. Business objectives are the goal, which organization wants to achieve and business objective of an enterprise is generally reflected in the mission statement of a company (Weese & Wagner, 2011) . Mission statement of the Premier Group says that they are committed to provide best services to clients and candidates and provide quality of services…

    • 813 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    This report aims to analyse and compare the Ansoff's product-Market and Porter's generic strategy in business in order to help how the organic vegan fruit juice can gain a sustainable business advantage over the competitors in the UK Market. To begin with, the author will identify what a marketing plan is, and what demographics are. Following on, the author will give some examples of demographics, characteristics and consumption traits. Then it goes to the examples of marketing plan, what is included in the marketing plan will be analysed. The author will use Ansoff's and Porter's theory in order to get the possible answers.…

    • 888 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Marketing Communications The marketing message communicates information about a company’s product, service and the brand message. The media selection used to communicate that message must be effective in reaching a broad target market. The employment of an integrated marketing communications plan assists the marketing team in attaining this goal.…

    • 755 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    (Lecture Notes Week 7) However, without well-planned promotion strategies, product may fall into decline stages easily. Still, they may find difficult to increase their sales revenue and profit even they tried to launch different kinds of product and give variety choice for their target consumers…

    • 1199 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Bar Zakay Essay

    • 1075 Words
    • 5 Pages

    The five stages of the model can be easily seen in Figure 4. was designed based Stage 1: A pre-investment (or feasibility) study Stage 2: Building engineering specifications Stage 3: Initiate capital goods production Stage 4: Commissioning and start-u including extensive of the workforce • Commence commercial…

    • 1075 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The marketing planning process involves the development of objectives and specifications for how they will be accomplished. There five steps in the process. 1. Determination of organisational objectives The basic objectives or goals, are the organisational starting point for marketing planning.…

    • 706 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Sime Darby Case Study

    • 7058 Words
    • 29 Pages

    MARKETING STRATEGY 4.1 MARKETING PLAN BY YEAR The strategies and plan used for SDP will be based on S.M.A.R.T. principles as per Diagram 1 whereby goals are specific to the business, measurable in terms of market share growth, attainable and realistic growth with a specific time frame in line. Diagram 2 shows the Gantt chart for the marketing plan for a term of 5 years. The marketing plan is designed in 2 half’s, Half one (H1) and Half two (H2) for a fiscal year and to ensure the effectiveness a review will be done each half with the department heads to track the progress of the plan. Diagram 1 Diagram…

    • 7058 Words
    • 29 Pages
    Great Essays