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actions. It is an important part of the drive for greater social responsibility by firms. While again creating short-term problems, it could offer new opportunities and challenges to marketing executives.
For example, the regulations governing the minimum depth of tyre tread permitted on cars, for road-safety considerations, present problems for the consumer who must buy new tyres more frequently. However, if some manufacturers can improve the working life of their tyres to give longer tread wear, they could obtain a bigger share of the market at the expense of those who do nothing about this. Regulations requiring cars to be safer will pose problems for the manufacturers who do not comply quickly enough. Those who can modify their products in a short time would again achieve increases in sales and market shares. However, until consumers are better educated on all related subjects, and thus become more knowledgeable, the claimed benefits of consumerism are not likely to be fully realised.
None the less the present consumer movement seems to be stronger and longer lasting than earlier attempts. Its demands are no longer just about consumption aspects but include assessment of changes in technology, life-styles, public attitudes, affluence and the media. This is due to growing concem about the quality of life as incomes, standards of living and education improve. Another factor is the increased complexity of technology and marketing putting the buyer at an ever-growing disadvantage in relation to the seller. Then there are the stresses and strains developing in the economic and political systems, inflation, pollution, the population explosion, loss of faith in politicians and their institutions, Finally, there is the 'impersonality' due to the increasing size of firms and institutions, aggravated by computerisation and automation. The last two, consumers feel, are causing them to lose identity and just become numbers or cogs in the business and state machines.
On the other hand, not all protests on behalf of consumers are well founded.
Many individuals and some organisations are misguided and badly informed. There is the unfortunate but true fact, also, that to the media bad practice is 'news' and good ones generally are not. So the public often gets a distorted view of the real position. Thus care is needed in assessing the true value of any protest both as regards its source and its significance in "the total context. Often protests just represent the personal views of the persons making them and are somewhat removed from those of society at large.
There is substantial agreement by business people and consumer organisations that the basic objectives of marketing and consumerism are not in conflict. There has been increasing .acceptance of an 'environmental' view by many firms. Marketing is no longer concerned with only profit making (described as 'micro-profit applications') to the exclusion of all else. Company and industry self-regulation is developing, if slowly. Some firms have established consumer affair, departments. They do not deal just with complaints but study the total implications of company policies and actions. Some have produced codes of practice. These changes stress the dynamic nature of the marketing environment. Thus executives must keep themselves alert and informed on these subjects.
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(b) The marketing plan
The marketing plan is the principal operational and control document of the marketing department. It specifies what has to be done, when it is to be done, who does what, how it will be done and the targets to be achieved. It will also set out the expenditure budgets permitted for each activity and the return these must obtain. The plan gives firm direction to the operation and helps to co-ordinate the work of all divisions of the firm while motivating staff to achieve ever-improving results. It provides a systematic written approach to planning and action and sets
the standards against which progress will be measured. I
It provides a record of the reasoning behind marketing decisions that h~e been taken. It also identifies areas of strengths and weaknesses so that the Jm may exploit the first and avoid or eliminate the second. The plan examines lind suggests the alternative courses of action by which targets may be achieved. It presents recommendations to senior management in such a way as to be easily understood, permitting correct decisions to be taken quickly.
The purpose of the marketing plan is to show where the firm has got to at a gsven date-and where it is going if no changes are made. In addition, it must show where the firm should be going in the light of market and other changes, how it will get to its new position and the date, a few years hence, when it should get there. The plan will also show the estimated costs and benefits and what changes in the organisation are necessary. It should also define the alternative courses of actionthat should be taken if less likely, forecasted events do occur. That is, the plan must have in-built flexibility.
There are many ways a marketing plan may be written. Each firm must decide what is the best for its purpose and method of operation. However, the plan should be long on figures and statistics and short on words. There should be sufficient of the latter only to give meaning to the former and explain the rationale. If long reports on the past performance, history, competition, some research and so on are necessary, these should be put in as appendices for those who must read them. The main points that should be covered by the plan are listed in Table 11.1. The questions that have to be considered are shown in Table 11.2.
n.2 International marketing
It is now generally accepted that 'international marketing' covers all activities from direct exporting of finished products to overseas markets, to wholly or partly owned subsidiaries of all kinds, joint ventures with foreign organisations and the big multinational operations. Fundamentally there is no difference in the basic approach to marketing to overseas markets, whatever method is used. Markets have to be identified and selected according to the usual criteria. The product mix has to be decided. Other relevant components of the marketing mix have to be identified and selected for each product-market situation and then the marketing operation can be planned, launched and controlled. However, allowance must be made for the differences, some subtle, which exist in some important aspects overseas.
For-example it is insufficient to study overseas prospects only from a geographical viewpoint, that is, according to national boundaries. It is necessary to
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1 An executive summary. Not everyone needs all the detail
2 Scope and coverage of the plan - products, areas, period etc.
3 Current marketing situation, with appropriate background, with limited history and
current trends
4 Opportunities, threats, and other factors to be considered in planning activities 5 Corporate and marketing goals, market shares, volumes, margins etc.
6 Proposed strategy for meeting objectives, under main activity headings 7 Details of activities, by whom, when, and with what facilities or budget 8 The expected results, in financial or other relevant terms
9 Provision for monitoring activities, expenditures and results, together with outline fall-
back or contingency planning
Table 11.2 Marketing planning - key questions Markets
What markets do we serve? Why? What market shares do we have? What are the volume trends? What factors are affecting this? Who are our competitors and what are their market shares? How are these changing? What markets should we be in? What are the ruling prices? How are these likely to change with cost and other changes?
Products
What products are we making? Why? What products are we selling? Why and how? What products are competitors offering? How do they compete? Where and why do they compete with us? What new activities and products are they planning? What product modification, rationalisation and new product development will we need? Over what time-scale? At what cost? How will this affect our prices, profits and return on investment?
Promotion and image
How do customers see our company? How do they see our products? Is there a proper match between the image we would like and the image that customers perceive? How effective is our use of advertising? Are we using the right media? Are we sending the right messages to the right people? Are we using PR effectively?
Price
How important is price in our markets? Do we have adequate information on competitors' prices? Are our prices regarded as low or high relative to our quality? Do we tend to lead or follow price changes? Have we room to increase prices? Do we need to cut prices? Is there pressure from competitors or customers for reduced prices? Could we become involved in a price war? Do our prices give us adequate margins?
Distribution
Which channels and what methods are we using? Why? Which are being used by competitors? Are customers getting the service they need? Any improvements possible? Any cost savings possible? What discounts are offered? Why?
Environment
How are economic, technological, legal, political, social and ethical aspects changing? How will this affect future business? How do population growth and movement affect demand? What is the firm's relationships with customers and society at large? Also with competitors? What other considerations (pollution, consumerism etc.) have to be taken into account?