■ Corporate and marketing plans
Marketing managers plan in order to complete tasks on time and without
exceeding pre-set resource limits. It is likely that objectives, targets and
budget will be set as part of the overall corporate planning and budgeting
process. The task is to translate these factors into a workable marketing plan.
When developing a plan, the process involves choosing certain courses
of action and ruling out other possible options. Planning should be
systematic, structured and involves three key components:
1 Objectives – what has to be achieved.
2 Strategy (or actions) – defining how the objectives are to be achieved.
3 Resource implications – the resources required to implement the strategy.
Clearly, it is important to understand the interface between marketing and
corporate strategy. This is best illustrated by considering the hierarchical
structure of an organisation. Senior management formulates objectives
and strategy for the entire organisation (or a strategic business unit –
SBU). Managers in various functional areas, such as marketing, contribute
to the process by developing specific functional strategies and ultimately
tactics to achieve these corporate objectives. Effectively, the process
involves a hierarchy of plans, with strategy at one level becoming the
objective(s) at the next. Additionally, this process provides feedback on
the success/failure of any strategy. Figure 12.1 illustrates the concept.
■ Corporate planning
The corporate plan will define objectives for the entire business and
should co-ordinate the various functional strategies (e.g. marketing, oper-
ations, human resource management, finance, etc.) to deliver the overall
corporate objectives. It is important that functional strategies are inter-
related (see Figure 12.1). For example, if the marketing strategy focused
on developing high levels of customer service in order to retain key cus-
tomer groups, both the operations and human resource management
Planning is an integrative, co-ordinating activity that gives focus. Strategic and tactical
decisions are made at corporate and functional levels. Addressing the analytical, behavioural
and organisational aspects of planning can help overcome the many barriers to success. While
the format and presentation of marketing plans may vary, a common purpose exists – to iden-
tify, select and implement appropriate marketing activities.