Senior High School
Principles of Marketing
Quarter 2 – Module 12:
Marketing Planning and Control
Writer:
ANA LIZA C. GARCIA
Teacher II SHS Natividad, Cluster II
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
MARK JOSEPH V. SANGIL, DBA – MT- I
GRACELA R. LABOS- MT-I
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What I Need to Know
This module was designed and written with you in mind. It is here to help you
master the subject Principles of Marketing. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using
After finishing this module, you are expected to:
Distinguish between strategic and marketing planning in terms of objectives
and processes.
1. To know the Importance of Marketing Plan and Planning
2. Discuss the Planning Process
3. Identify what is Marketing Control
What I Know
Directions: Choose the letter of the correct answer. Write the letter that
corresponds to your answer on a separate sheet of paper.
1. It refers to the selection and sequential ordering of tasks that are required to
achieve an organizational goal.
a. Market Review
b. Marketing Strategy
c. Planning
d. Sales Analysis
2. This is a total evaluation program for marketing effort.
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a. Marketing Audit
b. Marketing Function
c. Marketing Organization
d. Marketing Strategy
3. Which of the following statements regarding strategy formulation and strategy
implementation is the most accurate?
a. Neither strategy formulation, nor strategy implementation can succeed
without the other
b. Neither strategy formulation, nor strategy implantation can have a
significant impact on firm performance
c. Strategy formulation is more important than strategy implementation
d. Strategy implementation is more important than strategy formulation
4. A marketing department that promises delivery quicker than the production
departments ability to produce is an example of a lack of understanding of the
a. Interrelationship among functional areas and firm strategies
b. Need to maintain the reputation of the company
c. Organizational culture and leadership
d. Synergy of the business units
5. The term ____________ is used to refer to strategy formulation, implementation
and evaluation, with _____________ referring only to strategy formulation.
a. Assessment: Planning
b. Management Cycle: Brainstorming
c. Strategic management ; strategic planning
d. Strategic planning ; strategic management
6. The two most critical questions that strategy must address are how a company
will achieve its objective today when other firms may be computing to satisfy the
same customer’s needs and how the firm plans to compete in the future.
a. Business
b. Corporate
c. Functional
d. Operational
7. All of these are pitfalls an organization should avoid in strategic planning
except:
a. Failing to involve key employees in all phases of planning
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b. Hastily moving from mission development to strategy formulation
c. Using plans as a standard for measuring performance
d. Using strategic planning to gain control over decision and resources
8. The “advance work” in the strategic management process is comprised of
a. Strategy analysis
b. Strategy formulation
c. Strategy implementation
d. Strategic posturing
9. _______________ are the individuals who are most responsible for the success or
failure of an organization.
a. Consultants
b. Ethic Officers
c. Operatives
d. Strategies
10. Which of these requires a firm to establish annual objectives devise policies
and allocate resources?
a. Strategy evaluation
b. Strategy formulation
c. Strategy implementation
d. Strategy manipulation
Test II: DIRECTION: Write TRUE if the statement is correct and FALSE if
it is not.
____________1. A marketing plan is often included as part of a company’s overall
business plan.
_____________2. Marketing plans are important only for big companies.
_____________3. Marketing plans stay within marketing team.
_____________4. Writing a marketing plan involves quite a bit of time and effort.
_____________5. Writing a marketing plan helps a company to understand its
target markets better
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Lesson
1
Marketing Plan and Its
Importance
As you proceed to this module, you will understand the importance of
marketing plan and planning.
What’s In
Notes to the Teacher
This module is good for one week and it will discuss the
meaning and importance of marketing plan. Please inform
students/learners to be extra careful in dealing with the
activities so as not to fail the subject.
Instruction: Look at the following jumbled words. Rearrange the letters to
form the correct and proper word by looking and analyzing the questions
below the jumbled words.
1. NIPGIRC
2. FAPDITBLIRYIT
3. NEDADLEI
4. EAVETRDIS
5. CSTAEGRIT
6. TTAGER SMTAREK
7. GAMNRKITE SPLNA
8.GALNNPIN
9. NROPOMIOT
10.GAMRINKET SPOCESR
1. The evaluation of something in terms of its price.
2. The quality of affording gain or benefit or profit.
3. The point in time at which something must be completed.
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4. Develops and implement new products enhancement and marketing
initiatives.
5. Relating to an elaborate and systematic plan of action.
6. As part of the vision your plan should emphasizes your company’s long
term goals and the path to get there.
7. A good guide will provide plenty of information for you to develop to run
your business
8. Refers to the selection and sequential ordering of task that are required to
achieve an organizational goal.
9. It is a major role in the implementation of the company’s market
penetration strategy.
10. The process of discovering unfilled customer needs. It involves
identifying opportunities target market.
What’s New
Multiple Choice: Choose the best answer and write the letter of the correct
answer on a separate sheet of paper.
1. A marketing plan does not have to be ______.
a.
Clear
b.
Complex
c.
Lower
d.
Simple
2. A marketing plan is the collection of specific
a.
Actions
b.
Markets
c.
Products
d.
Staffs
3. The marketing planning process includes
a. Allocating marketing resources and monitoring
b. Analyzing the current situation
c. Creating the marketing strategy
d. All of the above
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4. ROI stands for:
a. Rate of investment
b. Return on investment
c. Return on input
d. Risk on investment
5. All of the following would be steps or concerns in the process of strategic
planning except.
a. Checking to see if an advertising spot had been run in its allotted
time slot.
b. Defining a clear company’s mission
c. Designing a sound business portfolio
d. Sitting supportive objectives
6. A company’s value chain is only as strong as its
a. Consumer
b. Weakest link
c. Procedure
d. Sales person
7. Which of the following remains at the Centre of any marketing process?
a. Price
b. Product
c. Promotion
d. Target Consumer
8. Planning encourages management to think systematically about. What
has planned, what is happening and _________________.
a. When it is happening
b. What might happen
c. Should something happen
d. Should something stop
9. Thru types of plans usually prepared by companies include annual plans,
strategic plans and ______________ plans.
a. Hourly
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b. Long range
c. Model
d. Psychological
10. A mission statement is a statement of the organization’s
a. Accounts and responsibilities
b. Net worth
c. Purpose
d. Structure
What is It
The Importance of Marketing Planning
Planning is useful in the performance of the various activities of the
manager especially marketing managers. As the manager must plan, direct
and control, he must do them in succession and not simultaneously.
Managers make decision to solve problems which consist of two types:
(1) those that can be anticipated and (2) those that come out nowhere. The
problem solving approach is the concern of planning and a number of this
type of difficulties is partly solved by the marketing plan.
What is Planning?
Planning in general, refers to the selection and sequential ordering of
tasks that are required to achieve an organizational goal.
It is the process of determining department (or unit) objectives and selecting
a future courses of action to accomplish them
The Planning Process
The typical planning cycle has five phases. They are the following:
1. Establishment of objectives or goals
2. Development of premises
3. Decision making
4. Implementation of the chosen course of action; and
5. Evaluation of result
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The Flow Model of the Marketing Planning Procedure
Marketing Planning
Marketing planning as distinguished from the overall company
planning as well as planning in the other functional areas, deals with the
development of alternative’s program within the scope of the firms product/
market mix. It seeks to provide the following types of information.
1. A product portfolio; and
2. The perspectives of different products/ markets included in the
portfolio.
One of the goals of marketing planning is “the production of the marketing
plan.
The Marketing Plan
The marketing plan is a written statement identifying the target
market, specific marketing goals of the firm, the budget and timing for the
marketing program.
The Contents of the Marketing Plan
In general marketing plans must, at least, contain the following
1. Market review ( or situational analysis);
2. Problems and opportunities;
3. Marketing objectives; and
4. Marketing strategy
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Market Review
The market review section presents development In the market
especially those related to the past year.
Depending on the nature of the company and its product the following
will have to be included in the market review section:
1. A detailed description of the market including forecast of the market
growth;
2. The competitive position of the company;
3. A detailed description of the consumers including buying habits and
preferences.
4. A description of dealers, distributors and brokers;
5. Advertising, history of the company’s brand and the competition; and
6. Sales promotion activities of the company and the competition
Problems and Opportunities
The market review section once finished will provide clues to the
marketing problems and opportunities.
This section is subdivided into the following parts:
1.
Marketing problems that need to be corrected
2. Marketing opportunities that can be exploited; and
3. Conclusions.
Marketing Objectives
This section indicates what the firm hopes to achieve in the light of
problems and opportunities presented in the preceding section.
Marketing Strategy
The marketing strategy is a statement that indicates where the majors
resources of the company should be directed in order to achieve the
objectives.
What is Marketing Control
A marketing plan is expected to be implemented and there is a need to
monitor progress from time to time. Effective monitoring , which is part of
the control system can identify deficiencies and deviations and this will pave
the way for corrective action.
The Marketing Control Process
The marketing control process consists of the following steps
1. Setting standard;
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2. Measuring performance and reporting deviations;
3. Doing causal analysis to determine why deviations have occurred;
and
4. Taking corrective action.
Setting Standards
Standards are those by which marketing performance will be measured.
The standard refers to the value used as a point of references for comparing
other values such as those that have been achieved by the marketing
department.
Causal Analysis
These are times when deviations from the planned result occur.
Corrective action
Deviations from standard have the potential of causing increasing
damage to the firm as long as they are not corrected.
Approaches to Marketing Control
There are several approaches to marketing control. These are as follows.
1. Sales analysis
2. Market share analysis
3. Sales to expense ratios
4. Attitude tracking
5. Profitability analysis by product, territory, market segment, trade
channel, and order size; and
6. Marketing audit
Sales Analysis
Sales analysis refers to a detailed breakdown of the company’s sales
record. The actual sales performance is compared with the target sales.
Market Share Analysis
A useful analytical tool to measure competitive performance in
marketing is market share analysis. A company’s share of the market
indicates how strong the company is when compared with competitors.
Sales to Expense Analysis
A certain percentage of expense over sales is usually maintained by the
firm. If this ration goes up compared with the previous years, it could be an
indication of a need for corrective action.
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Attitude Tracking
The attitude of customer comprises a very important concern for the
company. If there is an unfavourable change, or even a tendency, it may
seriously affect the marketing performance of the firm.
Marketing Audit
The marketing audit must include an investigation of six separate
components which are follows:
1. Marketing environment
2. Marketing Strategy
3. Marketing Organization
4. Marketing Systems
5. Marketing Productivity
6. Marketing Function
What’s More
Direction: Write TRUE if the statement is correct and FALSE if its wrong.
_______ 1. Marketing goals are best if they are general.
_______ 2. Marketing plans are never used to obtain funding from outside
investor.
_______ 3. Marketing plans make it more difficult for a company to track its
progress.
_______ 4. Marketing plans formats very from business to business.
_______ 5. The executive summary is the shortest and least important part of
the marketing plan.
_______ 6. The situation analysis is often summarizes with a SWOT chart.
_______ 7. Every marketing plan must include a section on desired target
market.
_______ 8. Marketing strategies and objectives take up very little space in the
marketing plan.
_______ 9. Marketing plans detailed expected expenses and profits.
_______ 10. An appendix is a place for marketing teams member to include
personal biographies and pictures.
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What I Have Learned
Planning and control are important requirements in the pursuit of
marketing objectives. Apart from providing direction to the marketing
department, planning helps the marketer in his decision making activities.
The planning process consists of (1) establishment of objectives or goals; (2)
development of premises; (3) decision making ; (4) implementation of
decisions; and (5) evaluation of results.
The marketing plan is a written statement indicating how the marketing
mix variables will be used to satisfy consumers and achieve organizational
goals. It contains (1) market review (2) problems and opportunities (3)
marketing objectives and (4) marketing strategy.
Since deficiencies and deviations are strong possibilities, control measures
must be integrated in marketing activities. The marketing control process
consists of; (1) setting standard (2) measuring performance and reporting
deviations (3) doing casual analysis to determine why deviations have
occurred and (4) taking corrective actions.
The approaches to marketing control consists of (1) sales analysis (2)
market share analysis (3) sales to expense ratios (4) attitude tracking (5)
profitability analysis and (6) marketing audit.
What I Can Do
DIRECTIONS: Write the correct letter of the best answer in the space
provided.
a.
Marketing process
h. marketing strategy
b.
Marketing
i. strategic planning
c.
Customer targets
j. marketing review
d.
Marketing planning
k. marketing analysis
e.
Marketing control
l. market
g.
Strategic objective
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____ 1. The process of monitoring the proposed plans.
____ 2. A place where similar products grouped together.
____ 3. It involves setting objective, designing and implementing a
programme to achieve the organizations objectives.
_____ 4. A choice and a statement of priority for the enterprise.
_____ 5. Market segment are based in product or customer characteristics.
_____ 6. It consists of specific strategies for target markets.
_____ 7. The process of developing and maintaining a strategic fit.
_____ 8. Is a form of communicating or promoting the value of a product.
_____ 9. It is a simplifies assessment of your activities.
_____ 10. A series of steps that allow organizations to identify customer
problem. Analyze market opportunities.
Assessment
Direction: Choose the letter of the correct answer. Write the letter that
correspond to your answer on a separate sheet of paper.
1. This is a total evaluation program for marketing effort.
a. Marketing Audit
b. Marketing Function
c. Marketing Organization
d. Marketing Strategy
2. The “advance work” in the strategic management process is comprised of
a. Strategic analysis
b. Strategy formulation
c. Strategy implementation
d. Strategic posturing
3. Which of these requires a firm to establish annual objectives, devise,
policies and allocate resources?
a. Strategy evaluation
b. Strategy formulation
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c. Strategy implementation
d. Strategy manipulation
4. The term _____ is used to refer to strategy formulation, implementation
and evaluation with _____ reffering only to strategy formulation.
a. Assessment, Planning
b. Management Cycle; brainstorming
c. Strategic management ; strategic planning
d. Strategic planning ; strategic management
5. It refers to the selection and sequential ordering of task that are required
to achieve an organizational goal.
a. Market review
b. Marketing Strategy
c. Planning
d. Sales Analysis
6._____ are the individuals who are most responsible for the success or
failure of an organization.
a. Consultants
b. Ethics officers
c. Operatives
d. strategies
7. A marketing department that promises delivery quicker than the
production department ability to produce is an example of a lack of
understanding of the
a. interrelationship among functional areas and firm strategies
b. need to maintain the reputation of the company
c. organizational culture and leadership
d. synergy of the business units
8. All of these are pitfalls an organization should avoid in strategic planning
except.
a. Failing to involve key employees in all phases of planning
b. Hastily moving from mission development to strategy formulation
c. Using plans as a standard for measuring performance
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d. Using strategic planning to gain control over decisions and resources.
9. The two most critical questions that strategy must address are how a
company will achieve its objectives today, when other firms may be
computing to satisfy the same customers needs and how the firm plans to
compete in the future
a. Business
b. Corporate
c. Functional
d. operational
10. Which of the following statements regarding strategy formulation and
strategy implementation is the most accurate?
a. Neither strategy formulation, non strategy implementation can
success without the other.
b. Neither strategy formulation, nor strategy implantation can have a
significant impact on firm performance.
c. Strategy formulation is more important that strategy implementation
d. Strategy implementation is more important than strategy formulation
Additional Activities
Direction: Fill in the blanks by choosing the appropriate word of
group of words. Write the correct answer on the space provided
before the number.
Planning
Marketing Plan
Profitability Analysis
Market Review
Marketing Audit
Attitude Tracking
Setting Standards
Corrective Action
Marketing Objective
Sales Analysis
__________1. It is a written statement identifying the target market, specific
marketing goals of the firm the budget.
__________2. This is unfavorable change for the attitude of customer
comprises for the company.
__________3. It is a systematic, critical and unbiased review and appraisal of
the basic objectives and policies of the marketing function
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__________4. This is a deviations from standards that have potential of
causing increasing damage to the firm.
__________5. This are the marketing performance that can be measured. It is
the value to be used for comparing other values.
__________6. It refers to the selection and sequential to achieve an
organization goal.
__________7. It present development in the market especially those related to
the past year.
__________8. This indicates what the firm hopes to achieve in the light of
problems and opportunities presented.
__________9. It is a detailed breakdown of the company’s sales record.
__________10. An analysis of the profit contribution of the firms product,
customer group, trade channels. It provide vital information
for decision making and control purposes.
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What I Know
Test I
1. C
What's More
Assesstment
2. A
1. F
1. A
3. A
2. F
2. A
4. A
3. F
3. C
5. C
4. T
4. C
6. D
5. F
5. C
7. C
6. T
6. D
8. A
7. F
7. A
9. D
8. F
8. D
10. C
9. T
9. D
Test II
10. F
10. A
1. T
2. F
3. F
4. T
5. T
Answer Key
What I Have Learned
Planning and control are important requirements in the pursuit of
marketing objectives. Apart from providing direction to the marketing
department, planning helps the marketer in his decision making activities.
The planning process consists of (1) establishment of objectives or goals; (2)
development of premises; (3) decision making ; (4) implementation of
decisions; and (5) evaluation of results.
The marketing plan is a written statement indicating how the marketing
mix variables will be used to satisfy consumers and achieve organizational
goals. It contains (1) market review (2) problems and opportunities (3)
marketing objectives and (4) marketing strategy.
Since deficiencies and deviations are strong possibilities, control measures
must be integrated in marketing activities. The marketing control process
consists of; (1) setting standard (2) measuring performance and reporting
deviations (3) doing casual analysis
to determine why deviations have
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occurred and (4) taking corrective actions.
The approaches to marketing control consists of (1) sales analysis (2)