THE PROBLEMS OF MARKETING PLANNING

 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.

MARKETING PLANNING AND STRATEGY

 

MARKETING PLANNING AND STRATEGY

DEFINITION OF MARKETING PLANNING:The process of analyzing one or more potentially interesting marketplaces in order to determine how a business can optimally compete in them. The market planning process typically results in a marketing strategy that can be used to enhance sales for the business producing it.

Marketing planning process is basically a set of steps that provide guideline about how to market and sell your product in the market within a specific period of time. It involves which promotional strategies to be adopted to make your product best seller in the future. Marketing planning process consist of the tactics and marketing techniques that you have to assume for achieving your marketing goals within the required time period.

It is the requirement of every business to make it successful. Marketing planning process basically involves the selection of the target market and then developing a plan that how you have to market your product in that specific target market to penetrate. It is the intense need of every business to make a good market plan for the success of its.

Marketing planning is the preface to any business enterprise. Planning is deciding at present as to what we are going to do in the future. It involves not only anticipating the consequences of decisions but also predict the events that are likely to affect the business.

Marketing planning is to direct the company marketing efforts and resources towards present marketing objectives like growth, survival, minimizing risks, maintain status-quo, profit maximization, service to customers, diversification, and image building and so on.

TYPES OF MARKETING PLANNING

There have been increasing talks about marketing meaning and marketing plans as companies systems evolves. Unfortunately no common usage attaches these terms as some big companies use the term marketing plan synonymous with the over-all business plan. Others use marketing plan that deals specifically with marketing issues and strategies.in contrast financial and manufacturing season marketing goals such as a new produce is launched. According to Philip Kotler, & John Saunders (1999) at least there are seven (7) different plans that require marketing input. They are:

i.                   Corporation plan

ii.                 Divisional plan

iii.              Product line plan

iv.              The brand plan

v.                 Product marketing plan

vi.              Functional plan

vii.            Product plan

1.     Corporate plan: Simply describes the overall business plan for the company. It might be intermediate or long range plan. This plan corporate is concerned or deals with company mission growth strategies, portfolio decision, investigation design and the current objective and goals. Note that this plan does not contain details on the activities of the individual business unit.

2.     Divisional plan: This describes the decision for growth and productivity. It describes financial manufacturing and strategies. It is to the corporate plan and may have similar plan range too.

3.     Product line plan: On the other hand, describes the objectives, goals, strategies and tactics for a specific product line management.

4.     Product plan: It describes the objectives, goals, strategies and fact is for a particular produce.

5.     Produce marketing plan: This is prepared by marketing manager and it is concerned with developing and serving of a particular market.

6.     Functional plan: This is meant for the organization major function (marketing, finance, production etc.). It also describes the plan subfunction with a major function.

7.     The brand plan: Is prepared by a brand manager and the brand itself describes the objective, strategies and tact is for a specific brand within the produce category. For example in marketing, we have safe, free plan, advertising etc. note that it is not only marketing essential, it is usually false priority as the plans development. The marketing plan is also seen as the foundation for the planning of other activities of the company.

NEED FOR MARKETING PLANNING

It takes careful planning and a comprehensive understanding of the marketplace order to develop a business strategy that will ensure success. The most successful businesses have undoubtedly started with a marketing plan.

Marketing fulfills a vital function. A business owner must be familiar with the business's customer base, as well as the strengths and weaknesses of the business's competitors. These factors, and others, should be identified in a well-prepared marketing plan.

A good plan will outline how a business can attract and retain customers, how it will compete against its competitors, and the budget needed to attain positive results. It should include market research, business location, the target customer group, competition, the product or service being sold, budget, and advertising and promotion.

Market Research

An effective marketing plan begins with conducting market research. This will provide relevant data that will help you solve any potential marketing problems. Often, the three most pragmatic ways to conduct market research are by using a direct mail survey, a telephone survey, or by conducting a focus group.

If using a direct mail survey, be sure to keep your questions short, with a total length of no more than two pages. A consumer probably won't voluntarily fill out and mail back a long questionnaire without an incentive. In addition, you should include a postage-paid envelope, so that the respondents don't have to pay for the privilege of helping you.If your budget is sufficient, send a reminder about two weeks after the initial mailing. Keep in mind that direct mail is probably the most costly form of research, with the printing of direct mail pieces, envelopes, postage, and any incentives used, and usually have the least favorable response rate.

Phone surveys are usually the most cost-effective manner in which to conduct a survey, in that you don't have print or mailing costs, and have a better chance of getting an individual to respond than if you simply mail a survey. The main costs are the interviewer's fee, phone charges, and preparation of the questionnaire.

Focus Groups are another way to gather specific data of your target audience. Your main costs are the interviewer's fees, expenses in recruiting and assembling the groups, renting a room if necessary, research time, any incentives used, and the cost of recording the interviews, if necessary.

Secondary data is also imperative to a successful market plan. Reports and studies done by government agencies, trade associations, or other businesses within your industry can give you important statistics on the area of research.

No matter what type of market research you do, your focus should be on gathering enough information to determine who your potential customers are, if there is a demand for your product or service, if there are competitors in your area and, if so, how successful they are in the marketplace.

THE IMPACT OF MARKETING PLANNING IN THE TELECOMMUNICATION INDUSTRY IN ABUJA METROPOLIS

THE IMPACT OF MARKETING PLANNING IN THE TELECOMMUNICATION INDUSTRY IN ABUJA METROPOLIS

(A case study of Mobile Telecommunications Limited (MTN) Maitama Abuja Nigeria)

ABSTRACT

This project work examines the importance of marketing planning in MTN Telecommunication Company Abuja. The main principle of marketing is to have an achievable target market and to complete delivering the right service and product at a reasonable price. More so, a company’s aim is to create a unique brand name and establish a platform where the company can achieve its organizational goals and objectives, satisfying the consumer’s needs and wants. In the 90’s Nigeria experience poor quality service in telecommunication provided by NITEL both in making calls within or outside Nigeria, so all public outcry and the charges in the Country’s government brought about the transformation  in some sectors of the country including telecommunication industry. MTN Nigeria is one of the several companies licensed by the Nigerian Communication Commission (NCC) to operate on the platform of mobile service operators. For more than 10 years, the Nigerian mobile industry has grown from grass to grace. However we cannot overlook the challenges faced by operators like MTN Nigeria. Still the Nigerian market if referred to as the biggest market in Africa and one of the fastest growing markets in the world.  

CHAPTER ONE: INTRODUCTION

1.0     BACKGROUND OF THE STUDY

Marketing planning is a process that consists of analyzing current situation and information about marketing opportunities, forecasting and establishing planning premises, selecting target market(s), determining marketing objectives, designing and developing marketing strategy or courses of action for achieving these objectives and allocating resources to the ingredients of marketing effort i.e. marketing mix and developing procedure and policies.

Marketing planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning is simply a rational approach to accomplish an objective. It bridges the gap from where we are & where we want to go. Planning is the first management function to be performed in the process of management. It governs survival, growth and prosperity of any enterprise in a competitive and ever changing environment.Julius O. Onah (1999).

Marketing planning is an analytical process which covers:

1. Analysis of the situation or environment,

2. Assessment of the future opportunities and threats,

3. Determination of objectives and goals in the light of the future environmental forces and

4. Selection of the best strategy or the course of action from among the alternative strategies to achieve the objectives.

Planning is the first and the foremost function of management. Planning precedes all the functions. Marketing planning is the starting point of all marketing and business activities of an enterprise. Because of the dynamism of the environment, the role of marketing planning has increased a lot.

Many experts today consider marketing planning as synonymous with overall business planning because the purpose of any business is the successful management of its markets (marketing resources).

Every company must look ahead and determine when it wants to go and how to get there. Its future should not be left to chance. To meet this need, companies use two systems — a strategic planning system and marketing planning system. Strategic planning provides the route map for the firm. Strategic planning serves as the hedge against risk and uncertainty.

The requirements are excellent insight to understand changing consumer needs, clear planning to focus our efforts on meeting those needs, and flexibility, because change is the only constant. Most important, we must always offer products of quality and value to the consumers.

According to Hickson (1992: Page 5) marketing planning is the process of anticipating future events and developing strategies to achieve organizational objectives. It involves designing activities relating to marketing objectives. Marketing planning of an organization is planning for that organization’s revenue-generating activities.

Armstrong, J.S.(1995). It must begin with setting down the corporate plans and should be followed through with plans for each separate function:

1. The first step in marketing planning process is setting down marketing objectives and policies.

2. The second step is designing the marketing system. In the marketing system, a company has to design/define each function with its contribution.

3. The third step is to develop separate objectives, programmes, and strategies of each function, so that they can be assessed for the target purpose and the broad objectives. If any function cannot meet its objectives, have to be modified for that functional area.

4. The fourth step is drawing of detailed plans for each function for a shorter period, i.e., a quarter, half a year or a year. It will be helpful in defining responsibilities, timing and costs needed to achieve the short-term objectives.

Marketing planning is an effective aid to management because of its integral role in identifying and clarifying the priorities for the business. Without a clear statement of priorities, the company is vulnerable to internal confusion and lost opportunities.

Tom Cannon (1998). The activities of marketing planning are generally divided into two divisions according to time—(a) Long term Marketing Planning; and (b) Short term or annual Marketing Planning.

 1. Long Term Marketing Planning:

Long range planning involves developing the basic objectives and strategy to guide future company efforts. The long range plan provides the frame work within which the other plans of the company are prepared.

Long run planning may involve a time horizontal of two or more years, although it uses even a longer horizon of five to twenty years. Long range planning is done by the top management with the help of specialized planning authorities.

2. Short Term or Annual Marketing Planning:

Each year companies prepare annual plan. In principle, the annual plan is developed in the context of the company’s long range plan. Short range plan, of course, is not possible where the company has no long range plan.

A long range plan is necessary if the short range plans are not to be chaotic series of expedient solution to short run crisis. Sometimes annual plans only reflect over reactions to previous year’s result and next year’s problems rather than the progressive implementations of long range plan.

1.1STATEMENT OF THE PROBLEMS

Marketing planning and selecting target market are critical early task of an organization at large; but inability of an organization to identify needs and wants of their customer pose a big problem in a competitive environment. Many telecommunication company lack the foresight in identifying the various needs of customers and differences that exist in those market the organization is strong. In other wise they are faced with the problem of determining the policies and marketing plans to be taken in order to enhance productivity and maximize profit. Inability of a company to attain the resources needed in other to satisfy the segments and use the right marketing plans that will enable it to achieve its objectives.

1.2     OBJECTIVES OF THE STUDY

This study aims at assessing the impact of marketing planning in the telecommunication industry in Abuja metropolis.In addition, the study seeks to achieve the following specific objectives:

1. To assess the extent to which marketing planning in MTN Telecommunication Abuja contribute to the growth of the company.
2. To examine the policies and action that MTN Telecommunication has to take to encourage marketing in order to enhance productivity and the prospects of marketing planning in MTN
3. To determine the barriers against effective implementation of marketing planning in MTN Telecommunication.
   1. RESEARCH QUESTIONS
4.  What extent does the input of marketing planning contribute to the growth of the company?
5. How does the policies and action of MTN Telecommunication has to take encourage marketing in order to enhance productivity and the prospects in of marketing planning in MTN?
6. What are the barriers against effective implementation of marketing planning?

1.      STATEMENT OF THE HYPOTHESIS

In other to achieve the above mentioned objective, the research work can be done based on the following assumptions using null and alternative hypothesis.

Ho:Marketing planning has significant contribution to MTN Telecommunication Company.

Hi: Marketing planning has no significant contribution to MTN Telecommunication Company.

1.5     SIGNIFICANCE OF THE STUDY

The significance of the study will be helpful to let business organization to know the result of their effort toward market planning. It will also make the meaning of market planning explicit and explain in actual sense what constitutes an organization. The research work will also be of significance to future market planning in an industry hence; it will suggest some alternative to market planning that will not be imposed on industries.

Thus stimulating to embark fully on market planning and it is also believed that this study will be significant in that it will bring to lime light the problem of military against marketing planning in an organization and MTN communication in particular. More so, that it will be the guide to students of marketing department as well as lecturers of the department and other researchers that may encounter problems in this area.

1.6 SCOPE OF THE STUDY

This study is to design to discuss the importance of marketing planning in an organization MTN Telecommunication.Although each operating company is unique, the strategy and planning process is essentially the same and scaled to meet the size of the leadership and management teams and the complexity of the challenges they face. It consists of one or more leadership team workshop each lasting several days and preceded by local and analogues market research, stakeholder research and detailed workshop planning and design.

1.7     LIMITATIONS OF THE STUDY

In the course of this research, there are some problems that tend to limit the scope of this research which include:

1. Financial constraints
2. Time constraints
3. Attitude of respondents
4. Financial constraints: The researcher in the course of the study was faced with various financial difficulties. The high cost of writing and duplicating materials, increase in transportation is some of the challenges faced by the researcher.
5. Time constraints: Time was another factor that affected this research work because of conflict of time between when the researcher is free and when the respondents are free. In fact most of the management staff is too busy or out of seat to attend to the researcher.
6. Respondent attitude: Most respondents were uncompromising with the researcher as they believe that the study will not bring benefit to them and most of the respondents tend to find inaccurate statements. This leads to the researcher making conclusion based on personal observation.

1.8     OPERATIONAL DEFINITION OF TERMS

Marketing: American Marketing Association (AMA, 2005) defined marketing as the performance of business activities that practically direct the flow of goods and services from the producer to the consumer. The British Institute of Marketing defines marketing as the management process which identifies, anticipate and supply consumers requirement efficiently and profitably.

Marketing planning: Is a management function that is concerned with the mapping and performing of the cause of action with regard to the marketing activities in an organization.Olakunon O. and Ejinueme K. N.N (1996)

Marketing management: Is defined as the analysis, planning, implementation and control of programs that is designed to build, create and maintain mutual beneficial exchange relationship between the firm and the target market.

Management: Is simply the effective utilization of human and natural resources to achieve organizational set goals.

Planning: Is the establishment of objectives and the formulation, evaluation of strategies as tactics and action required to achieve this objective.

Organization: Is defined a any group of people who come together and interact with another in order to achieve a state of predetermined aid.