According to Lamb, Locks McDaniel, they says marketing planning is an idea involves designing activities relating to marketing goals and attach with the ability of changing marketing environment. It includes with the problems of product lines, distribution channels, marketing and sales communications and rates.
The research study (company) I have chosen because of this assignment would be Prada, an extravagance fashion company. I'd hereby explain the elements and need for a marketing intend to allow Prada enhance competitiveness and successively really helps to increase their market talk about.
Task 1: LO1 - Compile marketing audits
Review changing perspectives in marketing planning
Referring from Winchester et al (1997), marketing plan is an all-purpose tool that allows the management to learn everything related the business. It is a sign that shows management what's the flaws of their plan, how to achieve their goals and redefine the course in a fresh market or new product against the rivals. Nonetheless, it shall be responsive a good marketing plan must contain with the account of changing perspectives.
Prada was initially created by Mario Prada in 1913. It mainly point out with high quality leather development on handbags, suitcases, shoes and trunks. However, in 1978, when Miuccia Prada overran the company, that they had been battling against competition of Gucci. From it, Miuccia Prada notices they have to change their perspectives in their marketing plan; they desire a new appearance product to beat down Gucci. Therefore, she decided to redesign some of Prada's old favourites with the goal of remains customer and entice new customer. The Black colored classic bag sales were successful and help Prada recognised as symbolic of upper course elegance.
By 1990, Prada management noticed that their product range is merely suitable for top class consumer rather than middle income customers. From it, they unveiling a new line product which called "Miu Miu" with the affordable prices to draw in middle income customers. In addition they presented the Prada Sport collection along with men's line and lingerie. Until today, Prada has many different product line with different appearance design while preserving their high quality standard.
Evaluate an organisation's ability for planning its future marketing activity
Organisational capability identified in terms of its primary competence, synergistic results, advantages, weaknesses and resources and behavior. It symbolizes a capacity of any organisation to utilize its talents to get over it weaknesses and create an opportunities and face in its exterior environment.
In this research study, Prada's organisational features are mentioned below:
Core competence
Uniqueness and creative under leading of Miuccia Prada
Synergistic effects
Brand effect
Resources and behaviour
Global network
Weaknesses
High prices
Availability of product
Lack information in its website
Difficulty in acquiring funding as it is an exclusive company
Strengths
Good quality
Loyal audience
Multi brands stores in worldwide
Recognisable and shiny well-known company
Miuccia Prada's uniqueness
Prada has founded in 1913, but yet it still has great potential to go further by increasing and growing its useful areas - in terms of fund, marketing operations, workers, information and general management.
In the view of finance's prospect, Prada should control consumption of funds with a budget and restriction. In marketing's possibility, Prada should increase their brand understanding and understand with the factors would have an impact on marketing capability in price, advertising, place and product which would enhance their sales turnover and maintain the brand devotion. Besides, Prada should be alert with product waste materials and damage control and limits, and ensure there is nothing at all incorrect with the successful system to produce a good quality product.
They also have to update website information to improve their information management potential. Lastly however, not least, Prada have consider the factors which impact their employees and standard management capabilities.
Examine way of organisational auditing and then for analysing exterior factors that affect marketing planning
It is essential to understanding customers as it is a keystone of an marketing planning; it comprises with auditing and analysing the inner (organisational) and external (market) environments of the company. This calls for accumulating appropriate factor at first and then analysing it. The types of relevant factors divided as inner and external that has shown as below.
Internal
Company quest and objectives
Existing customers - which includes the customer's satisfactions, dissatisfactions, expectations and human relationships.
Company resources - management structure, finance and information technology.
The connections between staff, partner and capital funders.
External
PEST which is a brief for of Politics, Economic, Friendly and Technological factors. These factors may effect on organisation's activities.
SWOT which is a short for Talents, Weaknesses, Opportunities and Hazards. It can help to examine company culture and future situation and as well as assess external environment.
Prospective customers, it needs to understand what are their needs, motivations, behaviour, purchasing power and locations.
Market, which include the knowing of market size, development, price, distributions, advertising, and product development.
Carry out organisational auditing and analysis of exterior factors that have an effect on marketing planning in confirmed situation
Generally, SWOT research is common use to carry out an organisational auditing and examination of exterior factors. SWOT symbolizes Talents, Weaknesses, Opportunities and Risks; The seeks of SWOT evaluation is mainly take benefit of talents and opportunities the market in the mean time minimise the weaknesses and eliminate the threats.
Strengths
Market share
Skilled and expertise
Business location
Quality operations and procedures
Innovative and new service or product.
Brand loyalty
Strong financial background
Weaknesses
Business location
Lack of skilled and expertise
Low market share
Poor quality products or services
Poor financial background
Bad reputation
Low brand loyalty
Poor distribution network
Opportunities
Competitor weakness
Market growth
Innovation and creative idea
Strong alliances
International market
Ineffective competitors
Threats
New competitor
Taxation
Legal limitations
A rival has a new, innovative product or service.
Prada's SWOT evaluation has shown as below:
Strengths
Good quality
Loyal audience
Multi brands stores in worldwide
Miuccia Prada's uniqueness
Weaknesses
High prices
Availability of product
Lack information in its website
Difficulty in acquiring financing as it is an exclusive company
Opportunities
Global markets development - China
Outsourcing production
Digital market - Internet
Capture the younger generation consumers - Miu Miu
Franchises opportunity
Threats
European crisis
Strong rivals around worldwide
Fashionable catwalk copycats with lower price - Zara and H &M
Falsification
Task 2: LO2 - The primary obstacles to marketing planning
2. 1 Assess the key obstacles to marketing planning
A strong online marketing strategy and planning is essential and vital part for any company. However, sometimes, there are certain barriers of marketing planning. For instance,
Lack of desire of change: If stakeholders are demotivated and don't wish to get over the risks or pick up the growing opportunities, it might be a main barriers to a good marketing plan.
Overconfident with problems solution: Overconfident would result in a flawed or improper solution for the issues.
Failure of co-operation between management: Human resources and financial department are not prepared to talk about resources and goals, manifestly the marketing effort will be impaired.
Lack of knowledge and skills: Without proper knowledge and skills can lead to unrealistic plan and ideas.
2. 2 Examine how organisations may beat obstacles to marketing planning
Professor McDonald has advised ten rules to get over the obstacles of the marketing planning, which includes:
Strategy before tactics
Situate marketing within operations
Shared prices about marketing
Structure around marketing
Scan the surroundings thoroughly
Summarize information on SWOT analysis
Skills and knowledge
Systematize the process
Sequence objectives
Style and culture
Task 3: LO3 - Formulate a marketing arrange for a product or service
Marketing plan can be an essential record as it includes a firm market evaluation, goals, route and marketing final result. Macdonald (1995) presents a four steps approach for the marketing plan which includes:
Goal Setting up: Organisation Quest identified by Mintzberg as "a quest represents the organisation's basic function in society, in terms of the merchandise and services because of its customers. " Prada's goal is to be leading high end fashion label in worldwide. It comes with a quest that to make Prada products as a piece of art rather than just a brand.
Situational Review - Marketing Audit: Infestation or SWOT analysis.
The marketing audit is a process to identify those existing exterior and internal factor that will affects on marketing planning of the company. The procedure can be execute with the SWOT evaluation for the inner and exterior environment or Infestations analysis which concentrates solely on exterior environment. In fact, marketing audit really helps to clarifies opportunities and risks and allows the stakeholders to make alternations to the marketing plan if needed. I have chosen SWOT as a marketing audit tools for Prada, please refer to 1. 4.
Strategy Formulation - Marketing Objectives and Strategies.
Marketing goals is mentioned what the company intends to be or to be achieve in the future. Marketing strategy is an activity that allows company to focus its limited resources to increase sales and achieve and build up sustainable competitive benefits. There are several strategies can be use, for example "ansoff matrix", "bcg matrix", "plc matrix" and "4ps". In cases like this, I've chosen 4ps for Prada, please refer to 3. 4 in details.
Monitoring and Control - Budget and execution.
In the process of marketing planning, it will be aware that marketing control is to monitoring the complete process as they proceed with and make a modification if possible.
Control includes dimension, monitoring and analysis. In fact, resources are costly and limited therefore it is essential for a marketer to control a budget and check with the execution. The internet entrepreneur shall check with the implication by checking the actual progress and the standard progress.
3. 2 Explain why marketing planning is vital in the proper planning process for an
Marketing plan provide information that enables stakeholders to gauge the progress and highlighted the most appropriate marketing strategies. An effective marketing plan helps to increase product sales and enhance company profit margins. There are many advantages of market plan, it contains:
Focus on your concentrate on market
Identifies consumers' needs and wants
Determines product demand
Identifies potential customers
Identifies competition and analyse competitive advantage
A dimension for creating the daily cash operational activities and how to make profit.
Manifestly, a good marketing plan will also profit an organisation with the examination of how to achieve the company aims and capability to create a fresh opportunities for organisation. Therefore, it is essential in the proper planning process for an organisation.
3. 3 Examine techniques for new product development
New product development (NPD) is an activity which designed to develop, test and consider the viability of the new product in the market. It helps to tell apart the development or survival of the company when a new product introduction. There are many steps in the NDP process.
Idea generation
It can be obtained from market research by using SWOT analysis.
Idea screening
In this process, unsuitable or unattractive ideas would be abandoning.
Concept development and testing
After the early stage of strategy development, it requires to launch a concept testing by asking the possible customers' reviews.
Market strategy development
It requires identifying which type of online marketing strategy should be use.
Product development
Converts a product idea into a physical form.
Test marketing
Placing the product available and watching its genuine performance.
Commercialization
Implementing a marketing plan and full production
In 2006, Prada joined into an agreement with LG Consumer electronics to develop a fresh product in the market - Luxury design mobile phone. Both companies leveraging their respected skills created "Prada Cellphone" with a unique, sophisticated and tasteful telephone as well as the first touch screen phone on earth. It achieved great sales: 1, 000, 000 as a result.
3. 4 Justify tips for pricing coverage, distribution and communication mix
Distribution mixture (Place) represents just how of distribution, the methods of transportation, and also the on-hand inventory level and last but not least outlets selection. It is proposed to ensure the customers will in a position to find the merchandise when they want it and usually customer will be planning on good services on the product sales or after the product sales.
Furthermore, it is importance to consider the following options of the merchandise distribution:
Retailing
Internet sales - website
Mail order - throughout brochure
Wholesaler
Nevertheless, the marketing expert should still consider the merchandise characteristics, company size, competitors and mother nature of distributor before decide the final distribution way.
After determined a distribution method for the product, it should be concentrate with the merchandise price. Price policy would directly impacts the product sales, how much loss or profit company gain, to whom it comes and what types of services should be attach. You will find no fixed guidelines for preparing the right place for a new product nonetheless it should always look at the product design cost, the circulation, the promotional and the labour cost. The one recommendation in costs strategy is to be sensitive, delicate with the development cost, marketing cost.
Once a product decided to establish on the market, it needs promotional activities to catch the attention of buyers, to get awareness and dispersing out the product information. The communication mix includes advertising, personal selling, public relations, online promotion, sales campaign and also direct marketing. Nonetheless, for every kind of promotional tool, it includes own advantages and weakness and bring different along different impact to the product. Therefore, it is essential for the professional to analyse which type of promotional tool would be most benefit to the merchandise.
PRADA's Marketing Mix
Product
PRADA collection produces top quality clothes and accessories for men and women, fragrances, makeup and children's clothes.
PRADA - sub collection - Miu Miu is the merchandise with affordable price and targeted young generation.
PRADA - sub series - Collection Rossa is the PRADA's sport collection.
Place
250 PRADA stores in 65 countries
Headquarters situated in Milan
Prada also sold their products in:
Online stores
Harrods
Selfridge
Price
PRADA has many products with different price levels:
Purses & leather goods: 200 - 3000
Shoes: 100 - 500
Fragrance: 40 - 100
Promotion
Magazines Advertising: Advertising are highlighted in Elle and Vogue.
Fashion shows: placed round the world and it has become the most persuasive marketing tools popular industry.
3. 5 Explain how factors impacting the effective implementation of the marketing plan have been considered into account
In order to maximize profits and decrease risks in a company, really the only reliable way is to tailor a suitable marketing plan with this needs in the meantime using available marketing tools and information to enhance the flexibility. However, it is remarkable that there are few factors should be concern with as there would influence the effective implementation of the marketing plan or even impair the complete picture. The factors would impact the improvement have listed down below:
Management not supportive: With all the assumption of the director of the business do not buy into the component of the marketing plan and decided not to support it, manifestly, the marketing plan would not be suffice as a pathway to the success.
Budget limitation (Economically) - Without sufficient financial support, the marketing team might not in a position to complete an appropriate market research.
Illegality: In case a marketing plan is against with the law or regulation, it might lead a legal action to the organisation.
As the factors mentioned above will have an impact on the effective execution of the marketing plan, it may concluded as it is essential to considered factors would impair the marketing plan into consideration in order to draft out a good marketing plan.
Task 4: LO4 - Ethical issues in marketing
4. 1 Explain how moral issues affect marketing planning
Ethics carrying guidelines of right do that condition the decisions people or organisations make. Training ethics in marketing has deliberately addresses the criteria of fairness, moral principles and wrongs in the organisation. The main reason for marketing ethics is to avoid one to do any deceive or make the most from unethical activities.
Once our financial system has successfully fulfilled consumer's needs and needs, there would be a matter on organisations sticking with ethical values alternatively than simply providing products. The reason to be so, that is because of firstly, when an company has behaves ethically, manifestly its customers would develop positive behaviour about its products, services and the company itself. With unethical issues in a small business, it could lead to bad publicity and reputation, customers' dissatisfaction, lost the business enterprise opportunity and consumers' trust in addition to a legal action between consumer and organisation.
In brief, unethical marketing practices would directly influence a good marketing process and influence marketing plan. Hence, the majority of organisation has trained to be very sensitive with customer's needs and views in order to keep this long-term curiosity about their business. In addition, social tasks are subjected to marketing practices to protect consumer rights, avoid unfair trading and stimulate trade in a wide range.
4. 2 Analyse types of how organisations respond to ethical issues
Adler and Parrot (1987) and Stead (1990) recommended few strategies to enhance ethical behavior and avoid unethical behaviour in organisations. They recommended that, first of all, top managerial should encourage moral consciousness with their subordinates by giving support and care upon ethical procedures. Secondly, it is strongly recommended that top managerial level should concentrate on the institutionalization of honest norms and methods that are included into all organizational levels.
Besides, organisations should offer an ethical training to reinforce and gain their employees' personal ethical platform to ensure it practice employees' self-discipline and competent to make an moral decisions in a difficult circumstances. In the mean time, organisations should be avoiding these unethical issues happen in their establishment:
Product: Misleading product information, shortage quality control and intentionally produce low quality product, unfit product description.
Price: Expensive price with a poor quality product
Place: Different product price in several location
Distribution: Control the product supply and boost the product value when sold-out.
4. 3 Analyse examples of consumer ethics and the effect it has on marketing planning
Mintel (1994) describe "ethical consumer" as a consumers who considered environmental issues, canine issues and ethical issues, including oppressive regimes and armament when shopping. In order to move forward with a good marketing plan, the organisation shall take consumer's directly into account. To be immoral in revenue and product purchase, it may cause poor attitude or situation. For example, if customer purchasing product which is against the law or illegal, obviously the organisation would not consider about customer's right for the sales. It would directly affect to the market itself and unethical behavior will be distributing around.
