Benefits Of Marketing Planning

  

Date Posted: 11/6/2012 7:39:07 AM

Posted By: sashoo  Membership Level: Gold  Total Points: 3952

Benefits Of Marketing Planning

1. Consistency: The plan provides a focal point for decisions and actions. By reference to a common plan, decisions by the same manager overtime, and by different managers, should be more consistent and actions better coordinated.

2. Encourages the monitoring of change: The planning process forces managers to step away from day-to-day problems and review the impact of change on the business from a strategic perspective.

3. Encourages organizational adaptation: The underlying premise of planning is that the organization should adapt to match its environment. Marketing planning, therefore, promotes the necessity of accepting the inevitability of change. This is an important consideration since adaptive capability has been shown to be linked to superior performance.

4. Stimulates achievement: The planning process focuses on objectives, strategies and results. It encourages people to ask, ‘What can we achieve given our capabilities?’ As such it motivates people to set new horizons for objectives when they otherwise might be content to accept much lower standards of performance.

5. Resource allocation: The planning process asks fundamental questions about resource allocation. For example, which products should receive high investment (build), which should be maintained (hold), which should have resources withdrawn slowly (harvest) and which should have resources withdrawn immediately (divest)?

6. Competitive advantage: Planning promotes the search for resources of competitive advantage.

However, it should be realized that this logical planning process, sometimes called synoptic planning, may be at variance with the culture of the business, which may plan effectively using a incremental approach. The style of planning must match business culture. Saker and Speed argue that the considerable demands on managers in terms of time and effort applied by the synoptic marketing planning process may mean that alternative planning schemes are more appropriate, particularly for small companies.

Incremental planning is more problem-focused in that the process begins with the realization of a problem (for example, a fall-off in orders) and continues with an attempt to identify a solution. As solutions to problems form, so strategy emerges. However, little attempt is made to integrate consciously the individual decisions that could possibly affect one another. Strategy is viewed as a loosely linked group of decisions that are handled individually. Nevertheless, its effect may be to attune the business to its environment through its problem-solving nature. Its drawback is the lack of a broad situation and strategy option generation, which renders the incremental approach less comprehensive. For some companies, however, its inherent practicality may support its user rather than its rationality.

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