Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Developing Innovative
Marketing Plans
Text © The McGraw−Hill
Companies, 2002626 Chapter 21
planned. PERT, CPM, and other similar project management approaches are even
more popular now since inexpensive programs for personal computers make them
easier and faster to use. Updating is easier too.
The computer programs develop detailed flowcharts to show which marketing
activities must be done in sequence and which can be done concurrently. These
charts also show the time needed for various activities. Totaling the time allotments
along the various chart paths shows the most critical (the longest) path—as well
as the best starting and ending dates for the various activities.
Flowcharting is not complicated. Basically, it requires that all the activities—
which have to be performed anyway—be identified ahead of time and their probable
duration and sequence shown on one diagram. (It uses nothing more than addition
and subtraction.) Working with such information should be part of the planning
function anyway. Then the chart can be used later to guide implementation and
control.^7The plan outline shown in Exhibit 21-9 is quite complete. It doesn’t just provide
information about marketing mix decisions—it also includes information about cus-
tomers (including segmenting dimensions), competitors’ strategies, other aspects of
the marketing environment, and the company’s objectives and resources. This mate-
rial provides important background relevant to the “why” of the marketing mix and
target market decisions.
Too often, managers do not include this information; their plans just lay out
the details of the target market and the marketing mix strategy decisions. This
shortcut approach is more common when the plan is really just an update of a
strategy that has been in place for some time. However, that approach can be
risky.
Managers too often make the mistake of casually updating plans in minor
ways—perhaps just changing some costs or sales forecasts—but otherwise stick-
ing with what was done in the past. A big problem with this approach is that
it’s easy to lose sight of why those strategy decisions were made in the first place.
When the market situation changes, the original reasons may no longer apply.
Yet if the logic for those strategy decisions is not retained, it’s easy to miss
changes taking place that should result in a plan being reconsidered. For exam-
ple, a plan that was established in the growth stage of the product life cycle may
have been very successful for a number of years. But a marketing manager can’t
be complacent and assume that success will continue forever. When market
maturity hits, the firm may be in for big trouble—unless the basic strategy and
plan are modified. If a plan spells out the details of the market analysis and logic
for the marketing mix and target market selected, then it is a simple matter to
routinely check and update it. Remember: The idea is for all of the analysis and
strategy decisions to fit together as an integrated whole. Thus, as some of the ele-
ments of the plan or marketing environment change, the whole plan may need
a fresh approach.A complete plan spells
out the reasons for
decisions
Internet
Internet Exercise Go to the Maytag website (www.maytag.com) and review
the information about the Neptune line. Do you see any indication that the
strategy for Neptune is changing from what is described in the case that
introduces this chapter? Explain your point of view.