Lin-AZ Simulation Listening Exam 03 – Level B2 Prof. Peter Cullen Text Spring/2015 The author’s own research has shown that, in looking into organizational behaviour in relation to marketing planning, confusion reigns supreme – and nowhere more than regarding the terminology of marketing. Few practicing marketers understand the real significance of a strategic marketing plan as opposed to a tactical or operational marketing plan. Why should this be so? For an answer, we need to look at some of the changes that have taken place during the past three decades. For example, the simple environment of the 1970s and the early 1980s, characterized by growth and the easy marketability of products and services, has now been replaced by an increasingly complex and abrasive environment, often made worse by static or declining markets. For most, the days have gone when it was only necessary to ride the tidal wave of growth. There wasn’t the same need for a disciplined, systemic approach to the market. A tactical, short-term approach to marketing planning seemed to work perfectly well in such conditions. But, by failing to grasp the importance of strategic orientation in plans that identify and develop their distinctive competence, companies became casualties in the 1990s and continued to become so in the first decade of the twenty-first century. The problem is really quite simple. Most managers prefer to sell the products they find easiest to sell to those customers who offer the least line of resistance. By developing short-term, tactical marketing plans first and then extrapolating them, managers merely succeed in extrapolating their own shortcomings. A strategic plan is a plan which covers a period beyond the next fiscal year. Usually, a period of three to five years. A tactical plan covers in quite a lot of detail the actions to be taken by whom during a short term planning period. This is usually one year or less. Understanding this difference is key to successful marketing. 1 Lin-AZ Simulation Listening Exam 03 – Level B2 Spring/2015 Prof. Peter Cullen ___________________________________________ Name, Date, and Registration Number Questions: Answer all 5 of the following questions. SIMPLE AND CORRECT IS BETTER THAN COMPLICATED AND WRONG. USE SHORT PHRASES AND SENTENCES. This exam requires interpretation and analysis. It is designed to test your ability to apply what you hear to possible discussion areas. 1. What is confusing about marketing planning? 2. Why does the explanation for this confusion come from a historical perspective? 3. What is the relationship between growth eras and marketing planning confusion? 4. What is the problem of basing your marketing on a tactical plan? 5. What is the difference between a tactical plan and a strategic plan? 2 Lin-AZ Simulation Listening Exam 03 – Level B2 Prof. Peter Cullen Spring/2015 Answer Sheet . 3