the contents of a marketing plan: objectives, resources, research and marketing mix

8.2 Marketing Strategy – Planning the Marketing Plan

Learning Objective

Identify and explain the core contents of a marketing plan – objectives, resources, research and the marketing mix – and show how each links to the company’s corporate goals, market analysis and control mechanisms required by the Cambridge 9609 A‑Level syllabus.

1. Why a Marketing Plan Matters

1.1 Benefits

• Provides a coordinated framework that aligns every marketing activity with the organisation’s overall strategy.
• Enables efficient allocation of scarce resources (budget, staff, equipment).
• Creates measurable targets, making performance monitoring and corrective action possible.
• Facilitates communication of the plan to internal and external stakeholders.

1.2 Limitations (expanded)

• Rigidity: A detailed plan can become inflexible when rapid market change occurs.
• Time‑consumption: Preparing a thorough plan may delay opportunistic actions.
• Data uncertainty: Forecasts and market data may be inaccurate, leading to misguided tactics.
• Inter‑departmental dependency: Success often relies on coordination with finance, production, R&D, etc., which can create bottlenecks.
• Risk of over‑budgeting: Over‑optimistic resource estimates can inflate costs and reduce profitability.
• Potential mis‑alignment with rapid change: Fast‑moving markets may out‑pace the plan’s assumptions.

2. Core Components of a Marketing Plan (Syllabus 8.2.1)

2.1 Marketing Objectives

Objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time‑bound) and directly support the corporate hierarchy:

1. Mission → Vision → Corporate Aims (e.g., 10 % profit growth).
2. Corporate Aims → Business‑level Objectives (e.g., expand into the premium segment).
3. Business Objectives → Marketing Objectives (e.g., increase premium‑segment market share by 5 % in 12 months).
4. Marketing Objectives → Tactical actions in the 7 Ps.

Examples of SMART marketing objectives

• Grow market share in the UK organic‑food market from 8 % to 13 % by the end of FY 2027.
• Generate £2 million of incremental sales from the new “Eco‑Smart” product line within the first 9 months.
• Increase customer‑retention rate from 72 % to 80 % by December 2026 through a loyalty‑programme launch.
• Launch two new product variants (A and B) by Q3 2026 and achieve a combined sales volume of 50 000 units.

2.2 Resources

Resources comprise the financial, human and physical inputs required to implement the plan.

Resource Type	Details	Estimated Cost (£)
Financial	Marketing budget, advertising spend, research funding, CRM software licences	500 000
Human	Marketing manager, digital‑media team, sales force, external agency, data‑analyst	300 000 (salaries & fees)
Physical	Office space, production equipment, promotional material, trade‑show booths	50 000

2.3 Market Research (Syllabus 8.2.1)

Research supplies the data needed for informed decision‑making. It can be primary (surveys, focus groups, observation) or secondary (industry reports, competitor data, government statistics).

1. Define research objectives – e.g., “Identify unmet needs among 25‑35‑year‑old urban professionals”.
2. Select method – quantitative (questionnaires, online panels) vs. qualitative (interviews, focus groups).
3. Collect data – decide sample size, sampling technique (random, stratified, quota).
4. Analyse findings – use SWOT, PESTLE, segmentation, targeting and positioning analysis.
5. Apply insights – feed results into the marketing mix, objectives and forecasting.

2.4 Marketing Analysis (Syllabus 8.2.3)

2.4.1 Elasticities

• Price elasticity of demand (PED): % change in quantity demanded ÷ % change in price. Indicates how sensitive customers are to price changes.
• Income elasticity of demand (YED): % change in quantity demanded ÷ % change in consumer income. Helps identify luxury vs. necessity goods.
• Advertising (or promotional) elasticity (AED): % change in quantity demanded ÷ % change in advertising spend.

Example: A PED of –2.5 means a 10 % price reduction would increase sales volume by 25 % – useful when choosing a penetration‑pricing strategy.

2.4.2 Product‑development Cycle

1. Idea generation – brainstorming, market gaps, R&D.
2. Screening – feasibility, alignment with corporate aims.
3. Concept development & testing – prototypes, consumer feedback.
4. Business analysis – cost, pricing, break‑even, forecasted sales.
5. Product development – engineering, design, pilot production.
6. Test‑marketing – limited launch, performance measurement.
7. Commercialisation – full‑scale launch, distribution, promotion.

2.4.3 Sales Forecasting Techniques

Technique	Nature	Typical Use
Moving‑average	Quantitative – uses past sales data	Stable markets with regular sales patterns
Exponential smoothing	Quantitative – gives more weight to recent data	Markets where recent trends are more indicative
Regression analysis	Quantitative – relates sales to variables (price, income, advertising)	When strong causal relationships are known
Delphi technique	Qualitative – expert consensus	New product launches or markets with little historic data
Market‑share method	Quantitative – applies projected market growth to expected share	When reliable market‑size forecasts exist

2.5 Market Segmentation & Targeting

Effective plans segment the market and then select the most attractive target(s).

• Geographic: region, city size – e.g., “Urban centres in the South‑East”.
• Demographic: age, income, occupation – e.g., “Young professionals (25‑35) earning £30 k+”.
• Psychographic: lifestyle, values – e.g., “Eco‑conscious consumers who value sustainability”.
• Behavioural: usage rate, loyalty – e.g., “Heavy users of premium skincare”.

Targeting strategies (per the syllabus) may be:

• Undifferentiated (mass marketing)
• Differentiated (several distinct segments)
• Concentrated (focus on a single niche)
• Micromarketing (local or individual‑level customization)

2.6 Customer Relationship Management (CRM)

CRM aims to build long‑term profitable relationships.

• Collect and analyse customer data (purchase history, preferences, interaction points).
• Use insights to personalise communication, improve service and increase retention.
• Costs: CRM software licences, staff training, data‑management.
• Benefits: higher customer lifetime value, reduced churn, cross‑selling opportunities.

CRM links directly to the “People” element of the 7 Ps and supports loyalty‑focused promotion tactics.

2.7 Measuring Market Share & Market Growth

Metric	Formula / Definition	Why It Matters
Market Share	(Company’s sales ÷ Total market sales) × 100	Indicates competitive position; changes trigger strategic responses.
Market Growth Rate	((Current period market size – Previous period market size) ÷ Previous period market size) × 100	Shows whether the market is expanding or contracting, influencing investment decisions.

Implications of change

• Increase in market share – may allow premium pricing, lower promotional spend, or reinvestment in product development.
• Decline in market share – signals need for price adjustments, new features, or intensified promotion.
• Rapid market growth – justifies capacity expansion and aggressive marketing.
• Market contraction – may require cost‑control measures and a focus on retaining existing customers.

2.8 The Marketing Mix (7 Ps)

The mix translates objectives into actionable tactics.

Element	Key Considerations	Example Action (aligned to objectives)
Product	Features, quality, branding, lifecycle, eco‑design	Introduce biodegradable packaging for the flagship range to support the “sustainability” objective.
Price	Pricing method, discounts, credit terms, price elasticity	Apply penetration‑pricing for the new entry‑level model to achieve a 5 % market‑share gain.
Place (Distribution)	Channel selection, coverage, logistics, online vs. offline	Expand into major online marketplaces and launch a click‑&‑collect service.
Promotion	Advertising, sales promotion, PR, personal selling, digital media	Run an influencer campaign targeting eco‑conscious millennials.
People	Staff training, service standards, CRM integration	Conduct product‑knowledge workshops for sales staff and integrate CRM alerts.
Process	Service delivery, order fulfilment, complaint handling, automation	Introduce an automated order‑tracking system with real‑time updates.
Physical Evidence	Branding cues, retail environment, packaging, website UI	Redesign store layout and website to reflect the brand’s sustainability values.

2.9 Pricing Methods (Addendum)

Choosing the right pricing method supports the overall objective and market conditions.

• Cost‑plus pricing: Add a standard markup to unit cost – simple, ensures a profit margin.
• Competitive (market‑based) pricing: Set price in line with main rivals – useful in price‑sensitive markets.
• Value‑based pricing: Price according to perceived customer value – suits differentiated or premium products.
• Dynamic pricing: Adjust price in real time based on demand or inventory – common in e‑commerce.
• Psychological pricing: Use price points such as £9.99 to influence perception.

3. Putting the Plan Together – Step‑by‑Step

1. Conduct a situational analysis (SWOT, PESTLE) and calculate market share & growth.
2. Set SMART marketing objectives that support corporate aims.
3. Identify required resources and obtain budget approval.
4. Design and execute primary/secondary market research, including segmentation and targeting.
5. Perform marketing analysis – elasticity, product‑development stage, sales‑forecasting.
6. Develop the 7 Ps strategies, selecting appropriate pricing methods and CRM approaches.
7. Create an implementation timetable, allocating responsibilities to individuals or teams.
8. Establish control mechanisms – KPIs, monitoring schedule, contingency plans.

4. Evaluation and Control (Syllabus 8.2.1 & 8.2.2)

Regular review ensures the plan remains relevant and effective.

• Key Performance Indicators (KPIs): sales volume, market share, ROI, customer‑retention rate, CRM utilisation, forecast accuracy.
• Monthly/quarterly performance reports compared against targets.
• Feedback loops from customers (surveys, social listening) and sales staff.
• Budget variance analysis – identify overspend or savings.
• Adjust tactics promptly if market‑share, elasticity or growth trends shift.

5. Summary Checklist for a Complete Marketing Plan

• Clear, SMART marketing objectives linked to corporate aims.
• Explicit benefits and a comprehensive list of limitations of marketing planning.
• Detailed resource allocation (financial, human, physical).
• Robust market research covering primary and secondary sources.
• Marketing analysis – price/income/advertising elasticity, product‑development stages, sales‑forecasting methods.
• Segmentation, targeting and CRM considerations.
• Measurement of market share and market growth with strategic implications.
• Well‑structured 7 Ps mix with appropriate pricing methods.
• Implementation timetable with assigned responsibilities.
• Control mechanisms and evaluation criteria (KPIs, variance analysis, feedback loops).