Determining marketing objectives in the plan

Once conducted the situation analysis and the SWOT analysis, you should choose a target market and determine marketing goals to achieve in the next period. In this part of the plan should answer the question "Where do you want to go?"

Target market refers to customers who will get served, so it is necessary to describe their features and to answer questions about what, where, how, how buy and at what pace. The enterprise can be considered that its product can be sold to the market, ie all market segments, but in that case you will not be satisfied as long as it takes those buyers who likely would have changed the product. Also it would mean unnecessary squandering of the resources, so the company should choose one or several segments that will serve as a target market.

Goals they need to answer the question: "where the company wants to go" or "the company is trying to achieve"

All goals should meet several conditions. Actually objectives should be SMART ie be specific (accurate), measurable (quantifiable), archive able (can be achieved), realistic (be realistic), timed (accurately defined the time of their realization)

1. Specific - when setting goals it is necessary to be precise about what you want the company wants to achieve in the future. Selecting the proper and correct order is essential for achieving the desired results.

2. Measurable - goals should be set quantitatively. In fact, the purpose should be so expressed on the outcome can not be measured.

3. Archive able - objectives should be able to be realized in the period of concern, so they have to answer whether those goals can be achieved or not.

4. Realistic - The goals should be realistic, ie in accordance with the resources available to the company (people, parties, machines, materials, time)

5. Timed - should accurately define when those goals to be achieved.

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SWOT - analysis

The purpose of the SWOT analysis is to identify strengths, weaknesses, opportunities and threats that occur during the operation of the enterprise market. It is a relatively simple analysis can be a very useful tool for studying permanent situation. Through this analysis though identification of forces (strengths) and weaknesses of establishment shall be determined and the potential opportunities and threats arising from matching / not-matching permanent knowledge and resources of the business unit or enterprise changes in macro environment.

Forces (strengths) of the enterprise related to the work in which the company has achieved excellent results, while weaknesses relate to things that the company needs to correct. Opportunities and threats relating to the external environment of the enterprise.

The main task of the company after-crafted SWOT - analysis is:

- To turn weaknesses into strengths.

- To turn threats (constraints) into opportunities.

- Using their own forces (strengths) to seize opportunities and turn them into higher profits.Weaknesses and limitations (threats) that can not be converted into strengths or opportunities should be minimized and avoided. Strengths and weaknesses arising from internal analysis and OJ most cases, the company may affect them, while identifying opportunities and constraints arising from the external analysis and rule them company can not affect only to adjust and take into account in defining marketing objectives and marketing strategy. Strengths may be the availability of large financial resources, a well-known brand, patents, good image, superior management team, partnership with other companies, excellent employees, superior quality etc.. Weakness it could be the lack of strategic direction in the development of small allocations for research and development, a very narrow range, outdated products, poor image, modest managerial knowledge and skills etc.. Opportunities you may be a high rate of growth in the market, changes in customer behavior, opening foreign markets, new uses, the emergence of new technology, application of other enterprises to enter into alliances with the company etc.. Limitations it could appear as a new entry konkuirent market introduction of substitutes, changes in customer needs and desires, recession, the emergence of new technology, barriers to foreign market, new strategies of competitors, etc..

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Short-current planning of marketing

In accordance with the long-term strategic marketing plans, short-term marketing plans relating to the marketing categories in a shorter period of time, usually one year. The process of preparing short-term plans have many similarities to the process of making strategic plans. The most common obstacles that occur:

- Interference from political nature. Marketing planning is the process of resource allocation with certain products and departments in the enterprise can get more or less money than others, so managers see planning as a political activity, where you can come to the fore their ability to convince that their department deserves more resources.

- Opportunity costs. Some managers believe that marketing planning and planing in general is wasting time that does not meet daily expenses.

- Systematic reward. Reward system usually refers to a shorter period, ie Awards that are not giving the annual results, but according to the monthly or quarterly results. This results in monthly goals to become  important semi-annual or annual goals, and thus plan to become less important.

- Information. For making a good marketing plan, you need fresh information on market size, market share, market growth rate. If that information is wrong or show deliberately false information, the quality of the marketing plan is reduced, and thus its importance for the company.

- Corporate culture. Trying to set up a marketing plan may be inconsistent with the corporate culture. Due to lack of experience in the development of marketing plans, beginning their preparation can be perceived as a threat t .. managers may have hostile attitudes planning system that establishes the company.

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Alternative strategies at BCG-matrix

Depending on whether it will also depend on the strategy that the company should apply in respect of which of them will continue to invest, where to stop investing, to leave. In this regard, the company at the disposal of four strategies:
- Investment in order to increase market share
- Investing as much as necessary to maintain constant market share
- The collection of income
- Leaving
The first strategy is usually applied to question marks, but only those that projected sales volume is large, ie on IE having a chance to become the leading run. If those things do not have the perspective that may become worthless things, then the company should apply a strategy for leaving.
The second strategy of investment in order to maintain market share is applied to cash cow, ie those that generate more cash than is necessary for their manufacture and sale. Excess cash used for financing the leading Test run and things.
The third strategy of collecting revenue is applied to things that are a poor source of cash in an unclear future known as dogs, and also to test things and work out if they have no perspective.
The fourth strategy of leaving apply on dogs, or test things if they do not have the opportunity to develop, whereby funds are moving toward a things that much more promising.

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BCG matrix quadrants

Stars. These are things which are characterized by vsoka market growth rate (high attractiveness) and high relative market share over the competition. These data show that the activities taking place in attractive markets to competition, and markets the company has a very strong position. Products belonging to the leading things usually are in the growth phase of the product life cycle curve. Best examples of Stars currently amazon.com lastminute.com which recorded high growth rates.

Question marks. These are things that are characterized by a high rate of growth in the market, but low relative market share. Are located in the upper right quadrant matrix growth and market share. Starting from the fact that it is a market with high growth rate, it can be concluded that these activities have a great need for funds. Products are found in this quadrant generally in the introduction phase of the product life cycle.

Cash cow. That it is positioned in the lower left quadrant of the matrix and are characterized by low growth and high market share. Given that it is a market with low growth rate, there is no need of large funds because the competition does not attract those markets, and therefore does not require major investments. Commercial products that are found in this quadrant typically operate in mature industries and products in this quadrant are typically found in the mature phase of the product life cycle.

Dogs. That it is positioned in the lower right quadrant are characterized by low growth and low market share. The low growth rate of the market means that no great need of funds, and on the other hand, it means that the market loses its appeal and no major competition. Products in this quadrant are in the phase-out of the product life curve.

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Determination of objectives and their characteristics:

In its operations the company must define corporate goals based on which will then define their corporative objectives and level strategic business units and marketing purposes. Most common corporate objectives are the following:

Profitability. Companies from developed countries in the world, is the most important goal of profitability. this purpose is commonly expressed as absolute amount of profit, as earnings per share, the rate of return on invested capital. Profitability commonly measured annually, but can be measured even for three months, or even daily. Goals related to profit shall be determined on the basis of profit in previous years.

Growth. According to a survey done in the United States, the second order according to importance after profitability growth. Growth can be achieved in two ways: internally or through acquisition. High growth rates are usually achieved second way. Many business people believe that growth is closely related to the size of the enterprise.

Value to shareholders. The company belongs to the rightful owners and shareholders. Management of the enterprise should increase the market value of the company. But it can not be achieved if the company led by weak managers without enough know-how to do so. It follows that the increase in value for shareholders is more a result than the goal and the result of management's ability to successfully and properly selecting strategy.

Satisfaction of customers. Achieving customer satisfaction is what actually generates profit for the company because the dissatisfied customer will buy the product again, which in turn will lead to reduced sales and reduced profits. So, in the center of the attention of customers and their needs and desires, and therefore customer satisfaction is an integral part of the mission.

Other purposes. Despite the foregoing, the company may have other objectives, such as operational objectives related to production quality and productivity, innovation related to product improvement, goals aimed at employees, social objectives, environmental objectives as concern about pollution etc..

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Developmental stages of marketing planning

Planning, such as it is today is the result of a long process involving several stages. According to Kotler, the stages through which passes the development of the plan are as follows:
- Phase without a plan
- Stage budgeting
- Phase of the annual planning
- Phase of long-term planning

- Strategic planning phase

First The first phase is the phase when there is no planning. The company does not prepare plan because it believes that there is no need of it, but also because there is not enough time for management planning. This phase occurs when the company was just established, management is primarily preoccupied with securing the necessary funding, procurement of necessary materials and equipment etc.

Second The second stage is the stage of budgeting. At this stage, the company develops a system of annual budgeting sales, costs and cash-flow. In fact, the management provides sales, costs and cash flows for the next time period for each department separately, but did not draw up a plan in the true sense of the word. In this follow all the deviations from the budget, in order to give appropriate explanation and to take appropriate actions.

The third phase is the phase of the annual planning. This phase occurs as a result of failure to budgeting, such as the emergence of significant deviations from the budget or lack of responsibility of all employees to participate in the realization of the budget, because the company accepts formalized planning approach. Otherwise, there are three possible approaches to the annual planning that can occur in this stage of development planning:- Planning from the top towards the bottom- Planning the bottom towards the top- Planning by setting objectives towards the bottom, and plans according to the above.

The fourth phase is the phase of long-term planning. This phase occurs when the management sees that despite the development of annual plans is very important to develop long term plans. In fact, long-term planning should precede the annual planning that is based on the prepared long term, at the end of each year to prepare an annual plan for next year.

The fifth phase is the phase of strategic planning. With the emergence of long-term plans emerged and the ability for strategic thinking. Namely, when there are only short term plans emerged out strategic thinking. Namely, when there are only short-term plans are mixed strategic issues and operational tactics, while long-term plans call ability to think and plan strategically. Through a strategic planning allows employees to be more motivated to work more effectively through the existence of a common vision for the future.

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