Marketing Planning

According to Lamb, Hair McDaniel, they states marketing planning is a plan involves designing
activities relating to marketing objectives and attach with the capability of changing marketing
environment. It contains with the issues of product lines, distribution channels, marketing
communications and pricing.
The case study (company) I have chosen for this assignment would be Prada, a luxury fashion
company. I would hereby explain the elements and importance of a marketing plan to enable
Prada enhance competitiveness and successively helps to increase their market share.

LO1 - Compile marketing audits

1.1-

Review changing perspectives in marketing planning

Referring from Winchester et al (1997), marketing plan is an all-purpose tool that enables the
management to know everything related the company. It is an indication that shows management
what is the flaws of their plan, how to succeed in their goals and redefine the direction in a new
market or new product against the competitors. Nonetheless, it shall be responsive that a good
marketing plan must contain with the consideration of changing perspectives.
Prada was first introduced by Mario Prada in 1913. It mainly emphasize with high quality leather
production on handbags, suitcases, shoes and trunks. However, in 1978, when Miuccia Prada
took over the company, they had been struggling against competition of Gucci. From it, Miuccia
Prada notices they need to change their perspectives in their marketing plan; they need a new
appearance product to beat down Gucci. Therefore, she decided to redesign some of Pradas old
favourites with the purpose of remains customer and attract new customer. The Black classic bag
sales were successful and help Prada recognized as a symbol of upper class elegance.
By 1990, Prada management noticed that their product range is only suitable for upper class
consumer and not middle class customers. From it, they launch a new line product which named
Miu Miu with the affordable prices to attract middle class customers. They also introduced the

Prada Sport line along with mens line and lingerie. Until today, Prada has many different
product line with different appearance design while maintaining their high quality standard.
1.2-

Evaluate an organizations capability for planning its future marketing activity

Organizational capability defined in terms of its core competence, synergistic effects, strengths,
weaknesses and resources and behavior. It represents a capacity of an organization to use its
strengths to overcome it weaknesses and create an opportunities and face in its external
environment.
In this case study, Pradas organizational capabilities are stated below:
Core competence

Strengths

Brand effect

Good quality

Global network

Loyal audience

Synergistic effects

Miuccia Pradas uniqueness

Resources and behavior

Multi brands stores in worldwide

Uniqueness and creative

Recognizable and bright well-known company

Weaknesses
High prices
Availability of product

Lack information in its website

Difficulty in acquiring funding as it is a private company

Prada has founded in 1913, but yet it still has great potential to go further by increasing and
developing its functional areas in terms of finance, marketing operations, personnel, information
and general management.

In the view of finances prospect, Prada should control usage of funds with a budget and
limitation.

In marketings prospect, Prada should increase their brand awareness and understand with
the factors would affect marketing capability in price, promotion, place and product which
would enhance their sales turnover and maintain the brand loyalty.

Besides, Prada should be alert with product waste and loss control and limitations, and ensure
there is nothing wrong with the productive system to produce a good quality product.
They also need to update website information to enhance their information management
capability. Lastly but not least, Prada have consider the factors which influence their personnel
and general management capability.
1.3-

Examine technique for organizational auditing and for analyzing external factors
that affect marketing planning.

It is essential to understanding customers as it is a keystone of a marketing planning; it comprises

with auditing and analyzing the internal (organizational) and external (market) environments of
the organization. This involves accumulating appropriate factor at first and then analyzing it. The
types of relevant factors divided as internal and external which has shown as below.
Internal
Company mission and objectives
Existing customers which includes the customers satisfactions, dissatisfactions,
expectations and relationships.
Company resources management structure, finance and information technology.
The relationships between staff, partner and capital funders.
External
PEST which is a short for of Political, Economic, Social and Technological
considerations. These factors may impact on organizations activities.
SWOT which is a short for Strengths, Weaknesses, Opportunities and Threats. It helps to
assess company culture and future situation and as well as assess external environment.
Prospective customers, it requires to understand what are their needs, motivations,
behavior, purchasing power and locations.
Market, which includes the awareness of market size, growth, price, distributions,
promotion, and product development.

1.4-

Carry out organizational auditing and analysis of external factors that affect
marketing planning in a given situation

Generally, SWOT analysis is common use to carry out an organizational auditing and analysis of
external factors. SWOT represents Strengths, Weaknesses, Opportunities and Threats; The aims
of SWOT analysis is mainly take advantage of strengths and opportunities the market meanwhile
minimize the weaknesses and eliminate the threats.
Pradas SWOT analysis has shown as below:
Strengths

Good quality
Loyal audience
Miuccia Pradas uniqueness
Multi brands stores in worldwide

Opportunities

Franchises opportunity
Global markets growth
Outsourcing production
Digital market Internet
Capture the younger generation consumers

Weaknesses

High prices
Availability of product
Lack information in its website
Difficulty in acquiring funding as it is a private
company

Threats

Falsification
Political crisis
Strong competitors
Fashionable catwalk copycats with lower price

LO2 - The main barriers to marketing planning

2.1-

Assess the main barriers to marketing planning

A strong marketing strategy and planning is essential and vital component for any organization.
However, sometimes, there are certain barriers of marketing planning. For example,
Lack Of Motivation Of Change: If stakeholders are demotivated and do not feel the need to
overcome the threats or grab the emerging opportunities, it would be a main barriers to a
good marketing plan.
Overconfident With Problems Solution: Overconfident would cause a flawed or
inappropriate solution for the problems.
Failure Of Co-Operation Between Management: Human resources and financial
department are not willing to share resources and goals, manifestly the marketing effort will
be impaired.
Lack of Knowledge And Skills: Without proper knowledge and skills may lead to unrealistic
plan and ideas.

2.2-

Examine how organizations may overcome barriers to marketing planning

Professor McDonald has suggested ten rules to overcome the barriers of the marketing planning,
which contains:
Strategy before tactics
Situate marketing within operations
Shared values about marketing
Structure around marketing
Scan the environment thoroughly
Summarize information on SWOT analysis
Skills and knowledge
Systematize the process
Sequence objectives
Style and culture
Furthermore marketing planning is "a reasonable series of events leading to the setting of
marketing objectives and making of plan for achieving them." The complication of marketing
planning means that when organization embarks on it, they should expect to meet a number of
organizational, attitudinal, process difficulties.
To better understand the barriers that have an effect on marketing planning in any organization, a
marketing manager must recognize online initiatives that produce the best results as well as
techniques that are simple to exercise. Inside the plan a methodical system should be developed
to promote objectives and interlink them. The environment should be carefully scanned and
information should be approved up the channels through a laying system, which only permit

applicable information to be passed on. Do not try to be a jack-of-all-trades; as an alternative,

focus on more than a few exact practices that feel at ease.
Furthermore, marketing managers of many companies get so tired with daily emails, webinars
and online analysis that they cannot spotlight on making their marketing strategies. as an
alternative, deal with your time by restraining your access to emails and other social networks.
This leaves more time for content creation and information generation.

LO3 - Formulate a marketing plan for a product or service

3.1-

Write a Marketing Plan for a Product or Service

Marketing plan is an essential document as it includes a company market evaluation, goals,

direction and marketing result. Mr. Macdonald (1995) introduces a four steps approach for the
marketing plan which includes:
Goal Setting: Organization Mission defined by Mintzberg as a mission describes the
organizations basic function in society, in terms of the products and services for its customers.
Pradas goal is to be leading high end fashion label in worldwide. It comes with a mission that to
make Prada products as a piece of art rather than just a brand.
Situational Review: The marketing audit is a process to identify those existing external and
internal factor which will influences on marketing planning of the company. The process can be
conduct with the SWOT analysis for the internal and external environment or PEST analysis
which focuses solely on external environment. In fact, marketing audit helps to clarifies
opportunities and threats and allows the stakeholders to make alternations to the marketing plan
if needed. I have chosen SWOT as a marketing audit tools for Prada, please refer to 1.4.
Strategy Formulation: Marketing objectives is stated what the company intends to be or to be
achieve in the future. Marketing strategy is a process that allows company to concentrate its
limited resources to increase sales and achieve and build up sustainable competitive advantage.
There are several strategies can be use, for example ansoff matrix, bcg matrix, plc matrix
and 4ps. In this case, I have chosen 4ps for Prada, please refer to 3.4.

Monitoring and Control: In the process of marketing planning, it shall be aware that marketing
control is to monitoring the whole process as they proceed with and make an alteration if
necessary.
Control includes measurement, monitoring and evaluation. In fact, resources are costly and
limited therefore it is essential for a marketer to control a budget and always check with the
implementation. The marketer shall always check with the implication by comparing the actual
progress and the standard progress.
3.2-

Explain why marketing planning is essential in the strategic planning process for an
Organization

Marketing plan provide information that enables stakeholders to measure the progress and
highlighted the most appropriate marketing strategies. An effective marketing plan helps to
increase product sales and enhance company profit margins. There are several advantages of
market plan, it contains:
Focus on your target market
Identifies consumers needs and wants
Determines product demand
Identifies potential customers
Identifies competitor and analyze competitive advantage
A measurement for generating the daily cash operational activities and how to make
profit.
Manifestly, a good marketing plan will also benefit an organization with the analysis of
how to achieve the company objectives and capability to create a new opportunities for
organization. Therefore, it is essential in the strategic planning process for an
organization.

3.3-

Examine techniques for new product development

New product development (NPD) is a process which designed to develop, test and consider the
viability of the new product in the market. It helps to distinguish the growth or survival of the
organization when a new product launch. There are several steps in the NDP process.

Idea generation: It can be obtained from market research by using SWOT analysis.
Idea screening: In this process, unsuitable or unattractive ideas would be abandoning.
Concept development and testing: After the early stage of concept development, it
requires to launch a concept testing by asking the prospective customers feedback.
Market strategy development: It requires identifying which type of marketing strategy
should be use.
Product development: Converts a product idea into a physical form.
Test marketing: Placing the product on sale and observing its actual performance.
Commercialization: Implementing a marketing plan and full production

In 2006, Prada entered into an agreement with LG Electronics to develop a new product in the
market - Luxury design mobile phone. Both companies leveraging their respective skills created
Prada Phone with a unique, sophisticated and elegant telephone and also the first touch screen
phone in the world. It achieved great sales: 1,000,000 as a result.

3.4-

Justify recommendations for pricing policy, distribution and communication mix

Distribution mix (Place) represents the way of distribution, the methods of transportation, and
also the on-hand inventory level and lastly outlets selection. It is proposed to ensure the
customers will able to find the products when they need it and usually customer will be
expecting good services on the product sales or after the product sales.
Furthermore, it is importance to consider the following options of the product distribution:
Retailing
Internet sales website
Mail order throughout brochure
Wholesaler
Nevertheless, the marketer should still consider the product characteristics, company size,
competitors and nature of distributor before decide the final distribution way.
After selected a distribution way for the product, it should be concentrate with the product price.
Price policy would directly affects the product sales, how much profit or loss company gain, to
whom it is sold and what types of services should be attach. There are no fixed rules for setting
the right place for a new product however it should always take into account the product design
cost, the distribution, the promotional and the labor cost. The only recommendation in pricing
strategy is to be sensitive, sensitive with the production cost, marketing cost.
Once a product decided to launch in the market, it requires promotional activities to attract
buyers, to gain awareness and spreading out the product information. The communication mix
includes advertising, personal selling, public relations, online promotion, sales promotion and
also direct marketing. Nonetheless, for each type of promotional tool, it comes with own
strengths and weakness and bring different along different effect to the product. Therefore, it is
essential for the marketer to analyze which type of promotional tool would be most benefit to the
product.

PRADAs Marketing Mix

Product
PRADA line produces high end clothes and accessories for men and women, fragrances,
cosmetics and childrens clothes.
PRADA sub line Miu Miu is the products with affordable price and targeted young
generation.
PRADA sub line Line Rossa is the PRADAs sport collection.
Place
250 PRADA stores in 65 countries
Headquarters located in Milan
Prada also sold their products in:
Online stores
Harrods
Selfridge
Price
PRADA has many product line with different price levels:
Purses & leather goods: 200 - 3000
Shoes: 100 - 500
Fragrance: 40 - 100
Promotion
Magazines Ads: Ads are featured in Elle and Vogue.
Fashion shows: held around the world and it has become the most persuasive marketing
tools in fashion industry.

3.5-

Explain how factors affecting the effective implementation of the marketing plan
have been taken into account.

In order to maximize profits and minimize risks in a business, the only reliable way is to tailor a
suitable marketing plan with the particular needs meanwhile using available marketing tools and
information to enhance the flexibility. However, it is remarkable that there are few factors should
be concern with as there would affect the effective implementation of the marketing plan or even
impair the whole picture. The factors would affect the progress have listed down below:
Management not supportive: With the assumption of the director of the company do
not agree with the element of the marketing plan and decided not to support it,
manifestly, the marketing plan would not be suffice as a pathway to the success.
Budget limitation (Financially): Without sufficient financial support, the marketing
team might not able to complete an appropriate market research.
Illegality: If a marketing plan is against with the law or regulation, it might lead a legal
action to the organization.
As the factors mentioned above will affect the effective implementation of the marketing plan, it
may concluded as it is essential to taken factors would impair the marketing plan into account in
order to draft out a good marketing plan.

LO4 - Ethical issues in marketing

4.1-

Explain how ethical issues influence marketing planning

Ethics carrying principles of right conduct that shape the decisions people or organizations make.
Practicing ethics in marketing has deliberately addresses the standards of fairness, moral
principles and wrongs in the organization. The main purpose of marketing ethics is to stop
anyone to do any deceive or take advantage from unethical activities.
Once our economic system has successfully fulfilled consumers wants and needs, there would
be a concern on organizations adhering to ethical values rather than simply providing products or
services. The reason of being so, that is due to firstly, when an organization has behaves
ethically, manifestly its customers would develop positive attitudes about its products, services
and the company itself. With unethical issues in a business, it may lead to bad publicity and
reputation, customers dissatisfaction, lost the business opportunity and consumers trust and
also a legal action between consumer and organization.
In short, unethical marketing practices would directly influence a good marketing process and
affect marketing plan. Hence, most of organization has trained to be sensitive with customers
needs and opinions in order to maintain this long-term interest in their business. Moreover, social
responsibilities are subjected to marketing practices to protect consumer rights, avoid unfair
trading and stimulate trade in a wide range.

4.2-

Analyze examples of how organizations respond to ethical issues

Adler and Bird (1987) and Stead (1990) suggested few strategies to enhance ethical behavior and
avoid unethical behavior in organizations. They suggested that, firstly, top managerial should
encourage ethical consciousness to their subordinates by providing support and care upon ethical
practices. Secondly, it is recommended that top managerial level should focus on the
institutionalization of ethical norms and practices that are incorporated into all organizational
levels.
Besides, organizations should provide an ethical training to strengthen and gain their employees
personal ethical framework to ensure that it practice employees self-discipline and capable to
make an ethical decisions in a difficult circumstances. Meanwhile, organizations should be
avoiding these unethical issues happen in their institution:
Product: Misleading product information, lack quality control and deliberately produce
poor quality product, unfit product description.
Price: Expensive price with a poor quality product
Place: Different product price in different location
Distribution: Control the product supply and increase the product selling price when out
of stock.

4.3-

Analyze examples of consumer ethics and the effect it has on marketing planning

Mintel (1994) explain ethical consumer as a consumers who considered environmental issues,
animal issues and ethical issues, including oppressive regimes and armament when shopping.

In order to proceed with a good marketing plan, the organization shall take consumers right into
account. As being immoral in product sales and product purchase, it may cause bad attitude or
situation.

For example, if customer purchasing product which is illegal or against the law, obviously the
organization would not consider about customers right for the sales. It would directly affect to
the market itself and unethical behavior will be spreading around.

Bibliography
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http://www.parada.com/
Marketing Planning Lecture Slides Given by Our Assessor.