THE PROBLEMS OF MARKETING PLANNING
Though planning is known for its contribution to the survival, growth and prosperity of the organization, it has its own pitfalls. It is a mixed blessing to the marketing organization because, marketing planning is not devoid of problems. Hence, the marketing planner is to be aware of the problems of such thinking process.
1. The problem of inaccuracy:
Perhaps the greatest problem is the degree of accuracy of projections on which efforts are made to build the edifice of marketing organization. The plans do not present an exact blue print for the future. The degree of accuracy is questionable mainly due to two sets of factors. One is the lack of reliable data where estimation plays its icy hands.
Even the tools developed are not fool-proof guaranteeing 100 per cent accuracy of results. Second, the market forces which are external are dynamic. The marketing planner, therefore, is to shoot the flying game and not the static one.
These two facts have blurred the chances of higher degree of accuracy. Experts have suggested some solutions to these ills; that management should develop alternative sets of premises and alternative plans like flexible budgets to choose a matching plan for desired action; that the managements are ready with detours in planning to allow for unforeseeable events. These suggestions warrant fairly high degree of flexibility in plans and planning.
2. Inbuilt inflexibilities:
Corporate inflexibilities pose another serious threat to the working of firms let alone the firm’s plans. These corporate inflexibilities are the manifestations of rigidities, frigidities and resistance of personnel and the systems operating against the changes contemplated by the marketing plan.
Naturally, these can be ‘internal’ and ‘external’. Internal inflexibilities refer to the mental frame, attitudes, perceptions and behavior of marketing and other personnel. Even the systems consisting of policies, procedures, methods, rules which become inactive because, they are treated as aversive or allergic; even the investments made in any section may act as an impediment for marketing planning.
Thus, management may be very particular to recover the investment made in one salesman’s training because changed marketing plan writes off such investments. On the other hand, external inflexibilities are external to the firm; they are caused by the external environment over which the firm has either no or very little control.
These are from change and resistance from social, cultural, political, ecological and technological forces. These act as the constraints within which the planner is to find his way. What is more serious is, the planner is left in a state of flux or disequilibria.
3. Loss of initiative and drive:
Like an allopathy medicine, a well-knit comprehensive plan speaks of co-ordination and integration on one hand, and at the same time, it mars the natural and spontaneous drive and initiative on the parts of participants because they are strictly and highly tied to the set goals and targets, responsibilities and authorities in that light.
This discourages working of free and open mind and, therefore, innovations in the firm’s marketing operations and, therefore, blunts the responses to typical unforeseen market situations as and when they crop up in the organization.
4. The problem of work-pressures:
It is very often complained that the marketing personnel are too much preoccupied with execution of marketing functions and solving problems or routine that they hardly find any time worth contributing to plan marketing operations. Such job pressures are normally caused by enlarged span of control, non-delegation of authority and reluctance to plan.
This problem of job pressure creates further pulls and pushes encouraging management by errors and crises whereby the marketing planning that should take deep roots, would not take. It does not work the way it should.
5. The cost of planning:
To derive the benefits of planning in marketing area, it should be systematic or sound one; to have an effective and sound marketing planning, the firm is to spend in terms of treasure, time and talent.
The specific and logical steps involved in marketing planning like development of planning premises scanning the environment evaluating the possible alternatives design of derivative plans integration into master plan all consume good deal of money, time and talented efforts much beyond the reach and imagination of ordinary firms.
With all that, the benefits of marketing planning are not available immediately like a flour-mill process. It has its own pay-off period which is much longer. This cost benefit equation discourages the firms to be away from marketing planning on most scientific lines.