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Essentials of Marketing 7th Edition

Essentials of Marketing (7th Edition)

Book Edition7th Edition
Author(s)Hair, Lamb
ISBN9780538478342
PublisherCengage Learning
SubjectBusiness
End Of Chapter
APPLICATION EXERCISE
ETHICS EXERCISE
BUSINESS MISSION
Chapter 2, End Of Chapter, REVIEW AND APPLICATIONS, Exercise 1.1
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Understand the importance of strategic marketing and know a basic outline for a marketing plan.

 

Strategic marketing planning is the basis for all marketing strategies and decisions. The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager. A marketing plan provides the basis by which actual and expected performance can be compared. Although there is no set formula or a single correct outline, a marketing plan should include basic elements such as stating the business mission, setting objectives, performing a situation analysis of internal and external environmental forces, selecting target market(s), delineating a marketing mix (product, place, promotion, and price), and establishing ways to implement, evaluate, and control the plan.

 

Your cousin wants to start his own business, but he has decided not to write a marketing plan because he thinks that preparing one would take too

long. He says he doesn't need a formal proposal because he has already received funding from your uncle. Explain why it is important for him to

write a plan anyway.

Verified Answer

Writing a marketing plan is very important because of the following reasons:

 

  • Identification of the objectives: Marketing plans help the firm to identify its objectives and design strategies to achieve those objectives. 
  • Comparison of actual performance with the standard: A marketing plan helps in measuring the actual performance and then comparing it with the standards that have already been set.  
  • Provides instructions to employees and managers: Marketing plan has well defined goals and the tasks which are required to fulfill those goals. As a result, employees and managers become aware of the tasks allocated to them.
  • Generates awareness: The marketing manager becomes aware of the various opportunities and threats he may come across while running a company.
  • Scanning of the marketing environment: Marketing plan helps in knowing about the business environment and what are future possibilities which could be explored by the company.
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