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IMPORTANCE OF MARKETING PLANNING


IMPORTANCE OF MARKETING PLANNING
                 A marketing company can obtain enormous benefits by planning its marketing operations. In view of the increasing competition and decreasing profit margins the role of marketing planning is becoming indispensable. The importance of marketing planning may be discussed under the following headings:

(1) Customer-Oriented Marketing: In the situation of buyer’s markets a marketing company has to keep ‘customer’ in the focal point of entire marketing operations. Whether it is product, price of product, physical distribution of promotional activities, all are designed with the help of planning to provide maximum customer satisfaction. Thus, marketing planning is an effective tool to implement customer-oriented marketing.

(2) Identification of Opportunities and Problems: In the process of planning efforts are made to identify the existing market opportunities and problems. This exercise may help to formulate and evolve best possible solutions for taking full advantages of opportunities and an effective way to deal with problems.

(3) Way to Goal-directed Activities: The purpose of marketing planning is to formulate goals, objectives and targets with regard to sales, market share, profit margin etc. With the setting of goals and objectives, entire activities and operations of a marketing company become goal-oriented. It minimize the wastage of efforts and duplication of effort.

(4) Full Exposure to Management and Employees: Goals and targets fixed in the planning process provide full exposure to management and employees. Though the targets are set keeping in view the average performance level, they are made challenging. Thus, everybody has to make some extra effort to fulfill the goals and targets. This exposure is also helpful in the further development of management and employees.

(5) Increases Productivity and Profitability: Marketing planning integrates the resources of a firm and its marketing opportunities. The purpose of planning is to make maximum use of each resource of the company, in order to capture maximum coverage. Optimum use of various resources leads to higher profitability through marketing operations.

(6) Boost Internal Communication: Preparation of a marketing plan is a joint activity. Every department of the company communication desired and relevant information for the purpose of the preparation of plans. In the inter-department meetings the different departments exchange the required information. This exercise boost internal communication in a marketing company.

(7) Facilitates Co-Ordination: Marketing planning facilitates co-ordination in a company both horizontally and vertically. Persons located at different organisational levels in the marketing company know very well through the market plan as to what the others will be doing during the coming plan period, and what is desired of him. This facilitates greater co-ordination in the company’s activities.

(8) Designing of Suitable Policies and Strategies: In the process of marketing planning, basic guidelines are provided in the form of policies for the performance of marketing activities. Marketing plan also designs suitable strategies in the form of action plans to achieve goals and targets in an effective manner.

(9) Cost Reduction: Due to integrated functioning, optimum use of the resources of the company is made possible by marketing planning and the cost of marketing operations can be considerably reduced. Concentrating on achieving the best at minimum cost, the marketing planning tends to bring economy in operation.

(10) Provides Long-term Vision to the Company: In the marketing planning master plans are prepared keeping in view the long-time marketing objective and goals. In this exercise a company takes into consideration the prospective marketing scenario in the coming ten to twenty years. It evaluates marketing prospects and challenge with the help of long vision. A company can design suitable policies and strategies in advance to deal with new situations.

(11) Essential Prerequisite of Control: A marketing plan sets standard of performance against which the management measure and evaluates organisational performance. Thus, marketing planning is an essential prerequisite of control.

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