Market planning is a document which is written to describe the current market position of business with its strategy of Promotions and marketing efforts. Marketing plan normally covers a period of one to five years (Prue and Daniel, 2006). This report is based on a case scenario of Samsung Electronics. Samsung group is huge organization with many divisions like, Mobile communication, telecommunications, computer division, Mp3 business and many more. This report will help to review the changing perspective in marketing planning along with organization's capability for planning future marketing strategy.
1.1 Changing perspectives in marketing planning
Changing perspective for the current market situations which are based on the requirements of customers along with their future requirements are essential to analyze (Slotegraaf and Dickson, 2004). Samsung can analyze these changing perspectives on the basis of internal and external assessment, that are as follows:
The Production Concept: Samsung is a multinational organization and it operates in multiple divisions of electronics such as, televisions, mobiles, computers and laptops etc. The organization is in profitable condition which satisfies all the customers’ demands. Consumers are only comfortable with the product which is widely available and is less expensive. Accordingly Samsung is focusing on this concept to concentrate on achieving high production efficiency. This orientation has helped Samsung to develop in countries where customers are more interested in samsung products and then its features.
The Product concept: The product concept of Samsung retains those customers which favor the products that offer the quality, performance and innovative features (Greenley, Hooley and Saunders, 2004). The organization is making superior quality products and is improvising them with time. Thereby, Samsung Electronics has proved itself as the best brand.
The Selling concept: This is the most important orientation in common business practices which retains customers and business together. Thereby, Samsung undertakes an aggressive selling and brand promotion efforts to attract more consumers (Ardley, 2005).
The Marketing concept: Moreover, marketing concept of Samsung holds the key to achieve its organizational goal. The marketing concept assists the Samsung Electronics to be more effective than its competitors in delivering, creating and communicating value to customers (Sadjadi, Ghazanfari and Yousefli, 2010).
The societal marketing concept: This concept determines the needs and interest of target market and to deliver the desired products more effectively and efficient than its competitors.
1.2 Samsung capability for planning and its future marketing strategy
Samsung has strong capability to plan the marketing process because it has billion numbers of consumers in multiple countries. The Capabilities of organization has been categorized that is as follows,
Financial capabilities: Samsung's possesses strong financial capabilities to hold market and brand promotion activities. It is the top rising brand and primarily it is achieved by organization's ability to promote the brand in various events and social contribution. Increased brand promotions increases product sales which help the organization to become finally capable in planning current and future marketing strategies (Taghian, 2010).
Skilled Employees: Samsung has most skilled employees who plan and develop effective marketing strategies with their innovation and creativity.
Good brand image: Moreover, Samsung is a well known name in countries. A good brand image makes organization capable for planning and developing future marketing strategy.
Loyalty: Samsung is very old name between people because of its better and improved product and high quality customer services (Bunnell, 2005). This loyalty of customer helps the organization to attract more customers. Further, it assist the Samsung to become capable for Planning future marketing strategies
1.3 Techniques for organizational auditing and external factors that affect the marketing planning
Marketing planning is essential for running the business or organization. Samsung has analyzed various factors in order to have the best marketing plan. Samsung is carrying out PESTEL analysis for organizational auditing (Wilson, 2004). PESTEL is a framework used by marketing team to analyze and supervise the external marketing environment which eventually makes an impact on the organization. Moreover, it provides an understanding of market structure that represents one of the back bones of strategic management which defines what an organization should do in order to achieve the organization's goals and its strategies. However, the firm can also use SWOT analysis for identifying internal and external factors that affects the marketing planning.
SWOT analysis of business will help in identifying the strengths, weaknesses, opportunities and threats of a business while developing a marketing plan. By swot analysis firm can improve the weak points and implement the marketing plan as per opportunities available for business. Similarly, BCG Matrix is one of the effective way to analyze product lines as growth opportunities. BCG matrix targets in identifying high growth prospects by dividing product range according to market share and growth rate of the company. However, Samsung can use these techniques to analyze business environment and growth opportunities.
1.4 Organizational auditing and analysis of external factors
These external environmental factors are as follows:
Political factors: This factor depicts about the way in which government intervenes in the economy. These political influences include government policy, political stability or instability in market, foreign trade policy, tax policies, environmental law, labor law and trade restrictions etc. These political factors highly make influence on business environment of Samsung. For instance, a government has proposed a new tax due to which entire revenue generating structure of organization has been changed (Prue and Daniel, 2006).
Economic Factors: These factors have significant effect on the way in which an organization is performing a business and their profitability. For instance, the firm, A, that is rising prices in economy would definitely affect the way in which Samsung set their price for the products and services. Moreover, it would also affect the buying decision of customers that will change the demand and supply of product for that economy. Economic factors are based on rising prices, interest rates, economic growth patterns and foreign exchange rate. (Wood, 2008).
Social: Social factors determine the social environment of market, cultural trends, population and demographics. For example, if a person is buying a Samsung smart phone then he will influence his friends and family also to buy the same.
Technological: Further, technological factors are concerned with developing creativity in technology that will affect the operations of industry or market in a positive or negative way. These factors highly influence Samsung for effective marketing planning. Technological factors refer to automation, development and research with the huge technological awareness in the market environment (Cravens and Piercy, 2008).
Environment: After technological factors, environmental factors for samsung are influenced by the surroundings of market. The purpose of PESTEL is important for certain commercial enterprises. For instance, Tourism and farming are the factors of business environment analysis but these factors are not based on weather and global changes in the climate.
Legal: This is the most important factor that affects both internal and external side of the firm. There are some laws which really affect the business practices in various countries (Greenley, Hooley and Saunders, 2004). Since Samsung runs business in various countries, it has to follow those policies that organization has to maintain. For example, Samsung has to consider consumer laws, safety standards and labor laws of certain country.
2.1 Main barriers in marketing planning
There are various barriers that come in the way to implement an effective marketing planning. Some of them are described as follows:
Lack of Coordination: Main barrier in implementing the marketing planning is lack of coordination between departments. For instance, sales team of Samsung wants to implement some marketing strategies and finance department refuses to raise the funds for such strategy. Thereby, without financial support, it is impossible to implement the marketing planning. Similarly, coordination differences between other departments also acts as a barrier in marketing planning (Cravens and Piercy, 2008).
Absence of information: Further, to implement the marketing planning, it is important for employees to be knowledgeable and to possess the information about various market factors such as all strategies or plans that their competitors are applying and whether the plans developed by them will fulfill the organizational needs or not (Slotegraaf and Dickson, 2004). However, this absence of knowledge is one of the barriers in marketing