Planning

Much of corporate planning resembles a ritual rain dance. This does not affect the weather in any way.
J.B. Quinn

All the planning in the world cannot defeat blind chance.
One of the Ford executives

This is probably a normal quality of any marketing manager - the lack of desire for planning. Planning is perceived as unnecessary work, as a waste of time. And I largely agree with this, especially if we're talking about about a multi-page (or long-term) plan. I also agree with those who believe that planning should not replace action.

A plan, any plan, must be clear, clear and short.

It must be flexible - if marketing environment, the market changes in hours, then you should be able to change your plan in seconds (try answering the following question: “Can you change your marketing plan in one minute if necessary?”).

Over the course of my career, I have created hundreds of plans, reviewed tens of hundreds of company plans and campaigns: product launches, strategic and business plans, etc. Among them were both one-page plans and those that required at least one ream of typewritten paper.

There are plans that you read and implement (“other people’s” plans), you participate in drawing up others (joint), and there are those that you draw up yourself (individual).

Each of them requires a different approach.

"Alien" plans- plans that were made without your participation. Look through them diagonally, learn from them, analyze weak and strong points, note “finds” that you can use in the future. As an executor, evaluate how you would approach the preparation and implementation of this document, what budgets, information, assistance would be required, find motivation for employees involved in executing the plan.

Joint plans- plans created in the process of collaboration with colleagues. When working on them, take the most active position possible. Improve, criticize, suggest, improve, simplify. But don't overcomplicate it - I'll admit that as a marketing manager you'll want to see in your plan, say, a SWOT analysis or detailed review competitors. But stop and think about whether this information is needed for this particular plan.

Marketing Manager, of course, can contribute to planning of any kind - and should, but if you add “fog”, “water” or dozens of unnecessary pages, you will increasingly be asked to carry out plans, but not develop them.

Individual plans- plans that you make yourself (the most useful for you, for marketing, and for the company).

Some tips on how to do good plan, are given below.

Firstly, it must be recorded on paper. Anything that is not written or printed is not a plan. It is a thought(s), it is an idea(s), but it is not a plan.

Secondly, the plan should fit on one page. When you try to fit everything on one page, you focus on the most important and necessary elements of the plan. This forces you to think clearly and clearly - to the delight of those who will read your plan and participate in its implementation (if your company is accustomed to writing multi-page Talmuds, then try making a one-page plan for yourself - it will be useful and will pay off).

Many managers believe that the ability to express thoughts on one page is a sign of clear thinking. Prove that it is within your strengths and capabilities.

Third, the plan should use clear and precise goals, and it is preferable if they are expressed in numbers (not “better help the sales department”, but “get at least 100 potential clients in September after seminars in cities A and B").

Fourth, several people can draw up a plan, but one person must be responsible for each individual planned event, otherwise you better have two columns: “responsible” and “participants”.

IN foreign companies The abbreviations TBD (“to be defined”) are often used. In this case, the completion date and those responsible are not indicated. When I see such an acronym, I know that it is equivalent to NWC (“nobody will care”). Always try to clearly define who is responsible and the deadlines for completion.

Fifthly, each activity must have an end date. Better a month than a quarter (must be completed in September); a week is better than a month (end date - 22nd week); and best of all - a specific date (completion date - March 26).

At sixth, the plan must be achievable. Don't plan for something you can't do. Don't even try.

Try the approach I use from time to time. You can prepare and provide three plan options: minimum, optimum and maximum. But bet on one plan - the optimum. A minimum plan will help you insure yourself, and a maximum plan will help “pump” you and others to higher end results.

And lastly. Don't commit to long-term plans. None of us can predict the future. Why try? How can we plan our actions for the long term if we don’t know what our competitors will do, what decisions the government will make, how suppliers will behave and what will come to mind of your customers (see Porter’s model). A long term plan is useless. This is simply a waste of time and effort - yours and all your colleagues whom you will have to “strain” to obtain the necessary data.

A plan lasting more than three months is not working.

A plan longer than one page is not working.

Just like you, I know how to make a strategic marketing plan. But most marketing managers don't get paid to write multi-page strategic plans.

Read a couple good books on planning. Know planning theory. Learn from examples of big plans.

Be actively involved in planning if you have to.

Your plans should be bright, short and workable.

Budget: how to do it, how to present it and how to report it

You announce a problem to the group.
Financiers say that this is a problem of optimizing financial flows.
HR says it's a human factor.
The research department says it's an information problem.
And only marketing says: no problem, just double your marketing budget.
Harry Beckwith "Selling the Invisible"

At the institute you will be taught a lot: accounting, financial analysis and planning; but not how to prepare the budget you need for your work. They also don’t talk about how to present it, how to approve it and how to report later.

I think the advice based on practice will be useful to you.

How to prepare a budget?

There are several methods for determining your marketing budget. They all have certain advantages and disadvantages.

The simplest method is percentage.

To prepare a marketing budget using the percentage method, you need to ask the sales manager: “How much sales do you want to achieve?” After that, you take a certain percentage of the amount you hear and call the resulting amount the marketing budget.

However, several more problems arise.

It’s not clear what percentage to take: one? two? three? five? Books advise to be equal to competitors (the method of “parity” of budgets).

Another difficulty. How to understand how much your competitors spend on marketing? You can’t limit yourself to simple market monitoring (a lot of information about what competitors are doing is either not known at all or arrives late).

One more thing. Imagine: both you and your competitors invest 1% of the planned sales volume in marketing. The question arises: is your sales volume the same? What is the investment time frame? You can evenly distribute the budget over the months, and your competitor will blow away the entire budget in the first two months.

But if you still use the percentage method, then this idea may come in handy. Suppose we know that competitors invest 1% of their target sales in marketing. Now imagine that, with approximately equal sales volumes, you will begin to invest 3% in marketing, three times more; 5%, five times more. How much more active and visible in the market can you become after this? (Before you suggest that company management invest three or five times more in marketing, be prepared to prove that the results will be significantly better than investments that match the costs of competitors. Can’t prove it? Ignore my advice.)

The widely held belief that the percentage of investments in marketing is approximately the same for companies operating in the same field and varies depending on the industry, I can confidently call it a myth.

One day I came across a document that compared the volume of investments in marketing by the main companies in the telecommunications market. Companies were ranked in descending order based on sales volume. The leading company invested the least in marketing (about 1.5% of its annual sales), the spread of investment in marketing by other companies ranged from 2 to 8.5%.

Summarizing the advantages and disadvantages of the percentage method of budgeting, it is appropriate to cite the following story. One day, the boss called one of his subordinates to his place and told him: “You know, John, things are still bad for us, we need to temporarily tighten our belts.” John earned $2,000, and the manager offered to cut his salary by 50% for three months, and then promised to increase it again by the same 50%. John agreed. The boss kept his word and three months later increased the salary again by 50%. And how much do you think John began to earn? (If you think it's $2000 again, you're wrong: do the math better.)

The problem is that percentages are relative values ​​and can often be played with (this is often done in advertising). For example, the promise of cosmetic companies that the cream “smoothes wrinkles by 17%.” I want to believe it, since the number is not round. But where and how did this 17% come from?

You also need to be careful when using the word “average.” You can't say it better than this joke: "I knew a guy who drowned in a stream that was on average 20cm deep." Avoid saying “average client”; be more careful when using average numbers.

Probably the most reliable way budget planning - This is the method of goals and objectives. You must understand what the company's goals are, then break them down into smaller-level tasks until it is clear how much it costs to achieve a particular subtask. Then, using the reverse counting method, you add up the received amounts, put 5–10% into the reserve - the budget is ready. By the way, it is much easier to present and defend such a budget. And anyone who wants to cut the budget will have to cut it to the quick. You can easily demonstrate to management how marketing activities are being reduced as the budget decreases.

How to submit a budget to get it approved?

Much depends on who and how you present it to. I've had to defend my budgets in person and over the phone. I did it one-on-one and presented it to the decision-making group. However this happens for you, I recommend that you brush up on your presentation skills. Prepare well. The more clearly and convincingly you present your draft budget, the higher your chances of approval.

Use the following maneuvers and techniques:

• Do not round up the $48,000 budget to $50,000. In the first case, the figure looks more realistic;
• look at what the company’s goals are now, what programs decision-makers are passionate about, coordinate your proposals with them (for example, if the management’s goal is to increase the company’s partner network, then, undoubtedly, all activities aimed at this will be approved).

In addition to your leaders' passions, always keep your leadership's goals in mind. I think I won’t be mistaken and will list almost everything.

1. achievement of quarterly and annual plans sales (sometimes monthly indicators are also important);
2. market share;
3. profit, rate of return;
4. opposition to certain competitors and/or their decisions;
5. promotion of certain solutions, implementation of the sales plan for them;
6. cost minimization (in some cases);

• there is no need to detail the budget more than necessary; combine small positions into larger ones;
• have a good understanding of all budget figures and be prepared to clarify any of the positions;
• Back up your marketing investments with expected results. No one will raise their hand to “cut” an event that will bring an increase in sales or new clients;
• use the time factor, indicate when this or that event is planned to be held: this may provide room for maneuver in making a decision (the event, for example, can be financed from the budget of the next financial year);
• lobby, do it in advance, base it on needs key managers and departments (“We are doing this for the sales department, they are in dire need of this event”);
• refer to the changing market and the active actions of your competitors (“In this way, we adequately respond to the marketing actions of our competitors to promote solution Z in the dynamically developing region X”).

If you make your presentation clearly and correctly, your budget will most likely be approved. One of my bosses once said: “If your presentation is perfect, then we are sure that your plan is also perfect and your budget is carefully calculated and thought out.”

Some managers like to “cut” requested budgets - be prepared for this (it is better to know about this tendency of the manager in advance). In this case, you should slightly overestimate the budget items that are sure to be cut (for example, this could be advertising).

Forget about the “Ask twice as much to get what you need” rule. It doesn't work anymore. Modern approach- accuracy, accuracy, transparency.

If your manager is not in the habit of cutting budgets, then try to ask for exactly as much as you need.

If necessary, sign under the amount you are requesting and the results you plan to receive. I've used this technique several times. There is no more effective way to get the necessary budget.

After a specific period or event for which budget has been allocated, be sure to demonstrate that your plan is working as intended.

Give a short report.

Winston Churchill said it well on this matter: “The unprecedented thickness of this report reliably protected it from the danger of being read.”
Couldn't have said it better.

Thank you for your help (and, if necessary, for your trust).

Don’t put off reporting and gratitude until later. This will help you gain future approval from managers who approve budgets.

Take creating and approving your marketing budget seriously.

When there is no budget, there is usually no marketing.

Planning chain

Making plans is a waste of time if it is not entrusted to those who will carry them out.
Henry Kissinger

This chapter is devoted to the planning “chain”, which has proven itself in working with the most the best side(my employees and I used it for more than four years).

It starts with annual goals (I don’t look any further; objectively speaking, none of us knows exactly what will happen tomorrow). Goals should be clear, achievable and motivating. It would be good if they were divided into quantitative and qualitative. Here is an example of company goals Lucent Technologies in the 2000 financial year, which were assigned by me to the Moscow marketing group.

Quality(activity and professionalism):
Become the No. 1 marketing team in the telecommunications industry in the CIS.
Become Lucent's #1 marketing team in the EMEA region (Europe, Middle East and Africa).
Quantitative:
Support the achievement of Lucent's sales target in the CIS ($XXX million).
Based on the results of the annual survey, obtain an average rating marketing activities no lower than 4.8 points for the sales team and 4.5 for partners (out of 5 possible).

I divide planning into formal (requested plans, business plans) and informal (plans you make for yourself).

For work, informal plans seem more effective and important to me. I almost never returned to official plans. We drafted them, “protected” them, and that was the end of it.

With every significant change in the market, with the advent of new strategy competitors, with the emergence of new partners, clients and solutions, any “official” plan became outdated.

Informal planning is more flexible.

It includes (in addition to the annual goals described above) an individual weekly plan, a Top 5 department plan, a 90-day plan, and plans for each activity/event, if necessary (sample 90-day plans) and “Top 5” are in the “Applications with Comments” section).

A few comments on each element of the planning chain.

90 Day Plan- this is a program of actions that need to be done by a group or marketing manager within three months (usually corresponding to the quarters in accordance with which sales planning is carried out).

It includes the most important activities, grouped into several blocks. It does not include absolutely all actions. It does not include anything that can be done in one working day.

Typically, a 90 day plan consists of complex tasks, programs, events that are expected by management, the sales department, and other departments, the solution of which changes or improves something. We called these types of activities wave making events (events that raise a wave, tsunami events). These are key activities that bring immediate and/or greater benefit or save other departments headaches.

At the end of the 90-day period and at the beginning of a new quarter, my staff and I reviewed all the points of the plan, and we assessed the percentage of completion of the plan (the higher the percentage, the better). We also analyzed the reasons why the planned activity was not implemented and decided what to include in the plan for the next 90 days.

Top 5 group or employee plan. This plan was drawn up every Monday, one copy remained with me, and the other (preferably on colored paper) was hung in the room where the sales managers work. The Top 5 plan helps the marketing manager solve two problems at once.

The first is focusing on short-term results. Admit to yourself whether you start every working week with her planning? At best, most of you have a work plan for the day. Planning a week ahead helps you get clear on what should be your priority for the next five days. Weekly plan may include from two to ten tasks (initially we defined five key tasks, hence the name “Top 5”).

The second is to make it clear to other employees what marketing is doing and what to expect this week. One of the biggest problems for marketing managers is the lack of visibility into the results of painstaking daily work- solved simply and beautifully. No one asks: “What does the marketing department do?” Employees know this within a week.

And one more advantage of the Top 5 plan. He is a kind of bridge between daily activities and the 90 day plan. As soon as something from the “90 days” plan was accomplished during the current week, it was crossed out with a thick marker in the weekly and quarterly plans. All these plans hang before your eyes, and you cross out completed activities. Sheer pleasure! This is probably one of the most enjoyable moments in my job - crossing off a completed task, project or event from the “90 days” and “Top 5” lists.

In addition to the Top 5 plan, each employee has his own personal plan for the week. He conducts it individually in any form.

As I already said, if necessary, we make plans for each important activity/event (program, seminar, exhibition). Such a plan allows you to work clearly, on schedule, and, if necessary, quickly connect additional employees (“Here, look at the plan, if you have questions, ask, please help me do this and that”). In addition, there is no need to “reinvent the wheel”; if necessary, you can use “old” plans for new events.

Your planning chain may be shorter, but don't work without a plan.

And don't keep your plans secret. Let others see what you do for them. Let your plans motivate you for your future results.

The bolder the plan, the better the result. The higher the result, the more successful you and your company are.

Zero Budget Marketing Isn't Zero Marketing

We had no money, so we had to think.
Ernest Rusenford

This can happen in the life of any marketing manager. Your manager will tell you, “The marketing budget is frozen.” Or: “This is a difficult time, we are cutting our marketing budget.”

This is a bad signal. It's no secret that most companies, when it is necessary to cut costs, first of all start cutting advertising budgets. Whatever marketing theorists and advertising agencies, a company (unless it's a Fortune 100 company) can quite easily go without advertising for a while (let's face it, too). That's what she can't do without - marketing.

I hope that the leaders of your company understand the difference between advertising and marketing and that you took care of this in due time (see the chapter “Explain to everyone around you what marketing is”). If they know this, then they understand that the value of marketing is not in advertising (not only in advertising).

And here the question arises: “Is it possible to do full-fledged marketing with a limited or even zero budget?”

The answer is simple: if the budget is limited, then marketing support will be limited.

If the budget is cut to zero, then the value of the marketing manager will not be zero. Even without a budget, a good marketing manager can bring value to his company.

However, managers must be clear that to a good manager in marketing, in this case, the work will soon become uninteresting.

Small budgets mean small tasks (even with high results). Small tasks mean little motivation. I don’t think there’s any point in continuing the discussion any further. The only worse situation is when the creation of the “Marketing Manager” position was caused by fashion, a hobby: there is an employee, but there is no marketing budget.

So let's go back to the tight budget situation. Let's consider the softest option. For some reason, you spent the allocated budget ahead of time (which is also not good). There are two months left until the start of the new financial year and the allocation of a new marketing budget, and yet you are without money.

What can a marketing manager do in a situation like this?

Firstly, you can obtain additional funding. If you can prove that the marketing activities you offer will generate new leads or help increase sales, the same executives who cut your budget will give you additional funds.

At the same time, it is important to remember that the effectiveness of investments of funds allocated in such situations is monitored much more carefully and strictly.

Secondly, you can concentrate on activities that do not require investment.

Get your database in order.

Switch from mailing lists to email.

Focus on PR - press releases, articles, success stories, stories about the use of your solutions, interviews with your managers and specialists.

You can set up a system for monitoring competitors, do analytics - this also does not require investment.

Third, you can engage in mental work - planning, self-education and education of others, searching for new ideas, mastering new types of marketing. You can put all your papers, notes, and your computer in order.

If you find yourself in a situation where your marketing budget is temporarily zero, remember that this is not a reason to stop marketing completely. This is an experience that is better to have. And the more you can do in such a situation, the better.

Damn it!

Marketing remains largely an inexact science.
L. Hampton

The attitude of some managers to the issue of measuring marketing effectiveness can be expressed in the well-known words: “I know that half of my money spent on advertising is wasted, but I don’t know how much.” Companies that practice this approach do not monitor the effectiveness of marketing at all and admit that nothing can be done about it.

The other extreme (most often inherent in large companies) is total control. In order to get a budget, you must first explain what results you need it to achieve. Then you should report on your results.

For them, these are the golden words of Wharton University marketing professor John Chang: “You shouldn’t measure something just to show that it is possible.”

Is there a middle ground? I think so.

And although it seems to me that it is better to spend time on marketing itself, rather than predicting and controlling results, measuring its effectiveness and subsequent reporting, this does not mean that measuring the effectiveness of your work in marketing is not worth it.

You just need to know that marketing effectiveness can be accurately and simply measured only (and only!) in the following cases:

• Internet advertising;
• direct advertising (mail advertising, telemarketing, fax and email advertising);
• advertising in catalogues;
• coupon advertising.

You have to accept that complex, expensive models are needed to measure the effectiveness of other interventions. Theoretically, this can be done, but in practice it is better not to resort to this.

I believe that a good marketer does not do bad marketing, can work to the maximum in the most difficult situation, and is also able to evaluate the effectiveness of his work “by eye.”
Let's say I'm speaking at a conference. How was my performance?
I can wait for the results of the poll that the organizers are conducting (maybe).
And I can immediately receive an informal assessment of my performance by the audience. Interested people, questions and comments from the audience, comments from the presenter, applause, the number of questions after my report, the number of listeners who gathered around me afterwards... all this gives an idea of ​​how the performance went, faster and better than a formal assessment.

Whether you like it or not, company management is increasingly looking at marketing more and more closely, expecting specific results from it. It is guided by the principle “You can manage what you can measure.” And they are right.

How to prove the effectiveness of your work? What needs to be assessed? How?

Here are some of the available criteria that a marketing manager can use in his work to prove the effectiveness of his work and the need for investment in marketing.

Quantitative criteria:

• number of new leads (potential clients), for example: “As a result of direct mailing list 105 new leads received”;
• sales volume (“Help the sales team increase sales this quarter by 10% by implementing a customer loyalty program”);
• market share (“Increase market share by 5% due to the planned advertising campaign and other marketing activities"). If you use this criterion, you need to be sure that you will be able to measure the change in the market share owned by your company; As a rule, this is a complex, lengthy and expensive study;
• publications (“As a result of working with journalists, three positive articles were published about the company’s decisions”);
• won the tender (“Feedback from our clients, prepared by the marketing service, helped us win tender A”);
• fulfillment of the plan (“the sales plan was exceeded by 5% due to the program we prepared to stimulate purchases by large corporate clients”);
• satisfaction (“The level of satisfaction of our partners with marketing support from the marketing department has increased by 10% over the past year”).

Qualitative criteria:

• strengthening and increasing brand awareness. This may be a quantitative criterion, but research of this kind must be large-scale and it is quite expensive (“Increase brand awareness among potential customers through a planned advertising campaign”);
• creating/strengthening relationships with clients and partners (“Hold a partnership conference to strengthen relationships with regional partners”);
• expansion of the client base and partner network. This indicator can also be quantitative. And it’s even better if it is quantitative (“As a result of a set of marketing activities, the client base was significantly increased” sounds worse than “Thanks to marketing, the client base was replenished by 20 new and 80 potential clients”);
• support. This is a word that can help you out in situations where another quantitative or qualitative criterion cannot be used (“Provided support for sales in the regions” or “Provided support during tenders held last year”).

Remember that you should not go to the extremes that are described at the beginning of the chapter: you should not measure with highest precision everything and everyone (total control) and at the same time you should not treat investments in marketing as funds going into a “black hole”.

Measure only what really matters. There is no need for unnecessary, expensive and time-consuming measurements. Instead of spending time and resources measuring market share to the nearest percentage, invest those resources in increasing market share.

Ask yourself questions periodically. If I stop measuring something, will anyone care? Will this negatively affect the company's activities?

And vice versa, if you start measuring something additionally: will this have a positive impact on the company's activities?

Evaluate only the main indicators.

What is the best way to measure? In production, they first try to count in product units, then in money, and only then in percentages. In marketing, as in sales, money must come first.

When to measure? If measurements can be done quickly and do not require much effort, then do them regularly. I believe that if you spend more than 10 minutes measuring something, it is an unacceptable waste of time.

Don't forget to inform your colleagues and superiors about the results. Measurements without feedback are ineffective. Actively use the results obtained - adjust your actions, draw conclusions.

Measurements without changes are useless work and useless marketing.

Cost manager, stay within budget

I gave him an unlimited budget and he didn't meet it.
Edward Bennett Williams

When I worked as marketing director in the Moscow office of Lucent Technologies, I deserved from our financial director a playful nickname: “Cost Director.” Of course, no one has ever brought in as many invoices as our department!

Unfortunately, many companies view marketing spend as a cost rather than an investment. How can this situation be changed?

Firstly, it is necessary to form the opinion that “marketing is an investment.” This is a complex and long process. You yourself no longer have the right to say: “Spend on marketing,” you must say: “Invest in marketing.” You should also correct others when they speak differently. And this is the simplest thing.

The difficulty is to prove that marketing investments are such, i.e. that you can measure their effectiveness and get results (see chapter “Measure!”).

Secondly, you should never go beyond your allotted budget. Good tone, when you invest exactly as much as you were allocated. Overspending is unacceptable.

If you “underinvest,” then next time it will be very difficult for you to get the required budget - this, unfortunately, is the practice of many companies. Although in fact this is the wrong approach. If you managed to save money and do the same (or even more) for less money, then your company should reward you for it.

Third, establish and maintain good relationships with the finance/accounting department. Many managers believe that the marketer spends money, and the financier only counts it. In fact, both marketing and financial department serve sales, and this is what unites them (although the marketing manager is closer to sales). In addition, the financial service still has excellent calculations, and the movement of money depends on them, and therefore, for example, your relationships with suppliers.

Fourth, learn the basics financial management(if you do not have such knowledge). This will allow you to speak the same language as financial specialists, and in addition, you will be able to plan and manage your budget more professionally.

Many top managers of companies are guided by the principle “A ruble saved is a ruble earned.”

Others believe that one ruble spent on marketing is actually two rubles spent, since it could have been spent elsewhere in the company.

Understand this: plan your budget wisely, invest for maximum return, and do not spend more than you have been allocated.

A sales forecast helps determine the goals and objectives that a company can realistically achieve and accomplish in the coming year. It is based on a concept developed for the company.

A plan for promoting a product to the market reflects in detail the actions to promote a product to the market that must be developed in order to achieve the goals and objectives set for your business. It is necessary to determine the costs and time frames for promoting each type of product or service.

The advertising plan is drawn up in such a way as to help think through the goals of the advertising campaign, the most effective method influence on your clientele and calculate the amount of money that you can allocate for this. Plans for advertising and promotion of goods should determine the main directions in the activities of your company, aimed at achieving sales volume plans and objectives facing the company at the moment. next year.

Public relations and public opinion formation

List of funds mass media designed to explore the possibilities of establishing contacts with them. Keeping a detailed record of the potential customers to be targeted and the products to be promoted will make contacts with the media more effective.

The plan makes it possible to think about all possible ways to increase the popularity of the business (sponsorship, employee bonuses, specific business events).

Financial forecast

The financial forecast evaluates the effectiveness and feasibility of implementing the developed marketing mix. A statement of income and expenses, profits and losses is prepared (4).

Table 4. Income and expenses from the marketing mix (rub.)

Marketing budget: concept and factors

One of the difficult tasks that a company faces is creating a marketing budget.

Definition 1

A marketing budget is a marketing plan that is determined in physical and monetary terms. These are the company’s expenses for organizing product distribution, promoting the product and informing consumers.

The marketing budget reflects the projected amounts of costs, revenues and profits. The essence of budgeting is to transform all marketing projects and activities that are included in the marketing plan are included in expenses with their subsequent compensation from proceeds from the sale of goods or services.

The purpose of drawing up a marketing budget is to allocate resources in such a way that investments in achieving the marketing and financial goals of the enterprise will be minimal. But in addition to monetary investments in marketing, there are also investments of time.

The marketing budget can vary depending on a number of factors:

• operating hours of the enterprise;
• the scale of the organization's activities;
• types of advertising used;
• desired return on investment in marketing;
• marketing qualification.

The marketing budget is greatly influenced by the company's time in the market. If the company is young, a startup, then significantly larger investments are made in marketing for promotion.

A company that is already operating on the market certain time, gained some fame. Such a company has its own target audience, which trusts the company, knows its products and location. The marketing budget is approximately 20% of profits.

An enterprise that has been operating on the market for a long time allocates for marketing cash, which are aimed at maintaining the company’s image and reminding customers about themselves. The budget is 3-5% of the organization's turnover.

The marketing budget depends directly on the scale of the company's activities. Small company, working in small town, spends insignificant amounts on marketing. Large corporations, operating not only in the domestic but also in the foreign market, put colossal amounts of money into their marketing budget. At the same time, the profit is quite high, which allows you to allocate funds for marketing activities.

If the marketing budget is small, then inexpensive types of advertising are chosen. Advertising on television is considered the most effective, but requires significant investment. Therefore, expensive types of advertising are chosen by companies with high turnover.

To determine the return on investment in marketing, the advertising effect will be calculated mainly, since advertising is an element of marketing. After viewing the advertisement, a certain number of potential customers can contact the company. How many requests will be received, how much the company will spend.

An important factor is the experience and qualifications of the marketer. A competent specialist will increase company profits with a small marketing budget.

Marketing Budget Planning and Methods

When planning a marketing budget, two models are used. The first is planning based on target profit indicators. The second is planning based on profit optimization.

In the first scheme, marketing budget planning is carried out in several stages:

1. assessment of the total market volume for the next year (the growth rates and market volumes in the current year are compared);
2. forecasting market share next year;
3. forecast of sales volumes for the next year;
4. gross profit forecast;
5. calculation of product costs;
6. determining the price for sale to intermediaries;
7. determination of revenues for the planned year (sales volume multiplied by unit price);
8. calculation benchmark target profit from sales according to the expected profitability ratio;
9. marketing costs;
10. distribution of the marketing budget by elements of the marketing mix.

The second model involves profit optimization, which requires company management to clearly understand the relationship between sales volume and marketing components. The term used for this is the sales reaction function. This is a forecast of possible sales volume within a specific time period at different conditions expenses for one element or the entire marketing complex. The assessment is carried out using statistical, expert and experimental research methods.

There are three ways to create a marketing budget:

• "bottom-up";
• "top down";
• mixed.

Note 1

The most effective method is considered to be “bottom-up”. Unlike others, it takes into account the requirements and conditions of the market. The budget in this case is drawn up by specialists who have practical experience in solving real market problems. Next, the developed budget is approved by the immediate manager

The “top-down” method is the distribution of marketing funds based on the overall budget of the enterprise. The project calculates the budget based on projected or current sales volume. The difficulty arises in determining the percentage of sales that is invested in marketing. The company must have extensive experience in marketing.

The mixed method involves a combination of the first two methods.

Methods for determining a marketing budget

In practice, the following methods for determining the marketing budget are used:

• "capacity" or "cash" financing;
• “fixed percentage” method (percentage of last year’s sales revenue);
• method of “matching the competitor” or competitive parity (method of self-defense);
• maximum cost method;
• method based on goals and objectives;
• method of accounting for a marketing program.

The first method sets a limit on the amount a company can spend on marketing. Since the budget size is different every year, this makes it difficult to plan for the next year, etc. This method is used mainly by small and start-up companies.

The second method is based on the deduction of a certain share of last year’s or planned sales volume. This is a very simple method of determining a marketing budget, but is considered the least logical, as it makes marketing dependent on sales volume.

The competitive parity method is to set the budget size at a level that matches the costs of competitors. The company analyzes the budgets of competing enterprises. Such information can be obtained as part of marketing research (surveying representatives of competitors, observation, evaluation of advertising, advertising strategy, study of secondary information).

The maximum expenditure method involves large expenditures on marketing activities. The downside is ignoring ways to optimize costs. The consequences of using this method are possible financial difficulties.

The goals and objectives method requires a clear statement of the goals and objectives of the marketing system. This is the determination of the costs that will occur within the framework of specific marketing activities to ensure the achievement of goals. The process of formulating goals and objectives is quite labor-intensive. In addition, in the process of marketing activities, goals are often revised.

The final method is to consider the costs of achieving specific goals compared to the costs of other combinations of marketing tools. Those. is given Comparative characteristics probable costs of alternative options for implementing a marketing strategy.

The marketing budget is one of the very difficult tasks that company managers have to deal with. The marketing budget includes: expenses for market research (market research, medium- and long-term), ensuring the competitiveness of goods, information communication with customers (advertising, sales promotion, participation in exhibitions and fairs, etc.), organizing product distribution and sales network. Financial resources for the listed activities are drawn from profits, which without such expenses would be much larger in mass; however, on the other hand, without marketing expenses it is unlikely that it will be possible to modern conditions sell enough units of the product to recoup the cost of research papers and everything else associated with its production, not to mention making a profit. Therefore, allocating funds for marketing is a solution to an optimization problem with a large number of variables, the influence of which usually cannot be accurately taken into account, that is, a problem that is typically predictive. The influence of variables is also, as a rule, nonlinear and must itself be determined empirically. That is why tradition, the experience of the company's top management and analysis play such a large role in determining the marketing budget. marketing expenses competing firms.

To estimate the order of magnitude of marketing expenses, you can use the profit equation:

P=SW- ,

where P is profit, S is sales volume in pieces, W- list price, O - transport, commission and other expenses for the sale of 1 unit of goods, A- costs of production of 1 unit of goods, not related to marketing, but depending on the volume of production, F- fixed production costs that are not related to marketing and do not depend on the volume of production and sales, R

If we assume that when exporting finished products the usual profit on capital invested in production, trade and marketing is 10%, this equation takes the following form

R+D = 0.91SW - .

However, the difficulty is that the sales volume S depends nonlinearly (and with some uncertainty) on R And D, although this dependence can be determined by regression analysis methods (a priori it can be stated that for each company the regression equation is strictly individual).

Since the rate of profit depends on the market share occupied by the company (with a share of less than 10%, this rate is approximately 11% for companies producing personal items, and 5% for industrial goods, with 20 - 30% of the market the rate increases, respectively, to 12 and 16% depending on the type of goods, with 40% of the market - up to 22 and 27%; and with a market share of over 40% - up to 25 and 30%, respectively) from the profit equation it follows that advertising or promotion costs should increase according to as the firm establishes itself in the market.

A.P. Durovich notes that in marketing practice various methods are used to determine the marketing budget. However, it is obvious that none of them is universal and perfect. Therefore, we will limit ourselves to considering the most common ones.

The most common methods for determining a marketing budget are:

Opportunity funding;

"Fixed interest" method;

Competitor matching method;

Maximum expenditure method;

Method based on goals and objectives;

Marketing program accounting method

Opportunity funding is carried out on the principle of “as much as you can allocate”. This method is used by firms focused on production rather than marketing. The latter usually accounts for only what remains after satisfying the demands of production as such (if anything remains). The only, but very dubious, advantage of the method is the absence of any serious conflicts with production departments due to their unconditional priority. The imperfection of the method is obvious at first glance. First of all, this is the absolute arbitrariness of allocating specific amounts, their unpredictability from year to year and, as a consequence, the impossibility of developing long-term marketing programs, planning the marketing mix and all the activities of the company.

"Fixed interest" method based on the deduction of a certain share of the previous or expected sales volume. For example, a value of 3% of last year’s sales is assumed. This method is quite simple and is often used in practice. However, it is also the least logical, since it makes the cause (marketing) dependent on the effect (sales volume). When focusing on the results of the past period, marketing development becomes possible only if it is previously successful. If there is a market failure and sales volume decreases, then the amount of deductions for marketing also falls proportionally. The company finds itself at a dead end.

Competitor matching method involves taking into account the practices and level of marketing costs of competing firms, adjusted for the balance of power and market share. For its implementation, a number of conditions must be present. First, you should select a competitor who is close in resources, interests and market position. Secondly, it is necessary to at least approximately determine the size of its marketing budget, which is very difficult. If a competitor's advertising and promotional efforts are visible in the market and can be at least approximately ascertained, then the costs of marketing research and product development is quite difficult to evaluate.

This method of developing a marketing budget allows for the use of collective experience, but is not consistently optimal. There is no guarantee that the competitor chosen by the company to follow acts wisely enough, rationally forms its budget, and in general proceeds from those goals that we involuntarily attributed to it.

Maximum Expense Method suggests that as much money as possible should be spent on marketing. Despite all the apparent “progressiveness” of this approach, its weakness lies in the neglect of ways to optimize costs. Moreover, given the fairly significant time interval between the implementation of marketing expenses and the achievement of results, the use of this method can too quickly lead the company to difficult financial difficulties and, as a result, to a departure from the marketing concept.

Method based on goals and objectives requires a coherent system of clearly formulated goals and objectives. The essence of the method comes down to calculating the costs to be incurred as part of individual marketing activities to ensure the achievement of the corresponding goals. Therefore, in such cases, a revision of the goals is often required. In general, carrying out specific calculations when using this method is quite difficult and time-consuming. Maybe that's why only a few companies turn to him.

Marketing program accounting method involves careful consideration of the costs of achieving specific goals, but not in themselves, but in comparison with the costs of other possible combinations of marketing means, i.e. when implementing other “chains” of marketing strategy alternatives.

Taking into account the disadvantages inherent in each of the above methods separately, it should be noted that the most justified budget will be drawn up on the basis of an integrated approach using individual elements of all the techniques considered. This method of budget formation can be based, for example, on a focus on completing a given task, taking into account the actions of competitors and the funds that the company can allocate for marketing.

When setting a budget, you must not only determine general expenses, but also distribute them both across the main areas of marketing activities (marketing research, product development, advertising, sales promotion, etc.) and within them.

Marketing planning

Goals and objectives of planning in marketing

The practice of domestic business shows that many firms are still operating without officially adopted plans. In most start-up companies, managers are so busy that they simply do not have time to plan. IN small companies Having accumulated some work experience, managers, intuitively feeling the need to have a plan, at the same time believe that they can do without formal planning, and therefore, it cannot be of significant importance. They don't want to take the time to prepare a written plan. They say the market is changing too quickly for the plan to be of any use, and it will end up gathering dust on a shelf. It is for these and a number of other reasons that many firms do not use formal planning. Large firms assess the importance of a marketing plan completely differently.

But formal marketing planning allows you to reap a number of benefits. In particular, M. Branch lists these benefits in the following order:

1. Planning encourages managers to think long-term.

2. It leads to better coordination of the efforts undertaken by the company.

3. It leads to the establishment of performance indicators for subsequent monitoring.

4. It forces the firm to more clearly define its objectives and policies.

5. Planning makes the firm more prepared for sudden changes.

Any planning starts with strategic planning. The strategic planning process consists of developing an enterprise program, formulating its tasks and goals, analyzing the business portfolio and forward planning development of the organization. The mission statement of the enterprise must be market-oriented, realistic, motivating, and specific in the sense that it directs the company to take advantage of the most promising opportunities available.

Taking into account the above, strategic planning requires an assessment of each of the production facilities included in the enterprise in order to draw a conclusion about the advisability of their expansion, preservation, termination or use of the achievements of their activities.

To ensure the growth of the company, strategic planning requires identifying market opportunities in areas where the company needs to have a clear competitive advantage. Such opportunities can be identified along the paths of intensive growth on the scale of modern market activity, such as deeper market penetration, expanding the boundaries of one’s market or improving the product, as well as along the paths of integration growth within the industry and along the paths of diversification growth.

“After the development of general strategic plans,” says F. Kotler, “each production of the enterprise will have to develop own plans marketing by goods, market brands.” The main sections of the marketing plan are: a summary of benchmarks, a statement of the current marketing situation, a list of threats and opportunities, a list of tasks and problems, a statement of marketing strategies, action programs, budgets and control procedures.

A flexible planning system eliminates binding to planning periods and can change activities quite arbitrarily as changes occur in the market and in the enterprise itself. It allows you to react flexibly to market fluctuations. The absence of a marketing plan deprives the enterprise of clear, stable goals.

The strategic plan of an enterprise determines what kind of production it will engage in and sets out the tasks of these productions. Now each of them will have to develop their own detailed plans. If production includes several product groups, several products, brands and markets, a separate plan must be developed for each of these positions. That is why we are faced with production plans, product plans, brand plans and market plans. All these plans are collected into one - the “marketing plan”.

Strategic planning must address the specific needs of both marketing and other functional areas. This is not always easy, as the goals and needs of different functional units differ.

The orientation of the different functional areas is as follows:

1. Marketing - attracting and retaining a loyal group of consumers through a unique combination of product, sales, promotion and price.

2. Production- making full use of production capabilities, reducing relative production costs and maximizing quality control.

3. Finance - operating within established budgets, focusing on profitable products, controlling credit, and minimizing borrowing costs to the company.

4. Accounting - standardization of reporting, careful detailing of costs, standardization of transactions.

5. Technical Services - development and adherence to specific specifications, limiting the number of models and options, focusing on improving quality.

6. Supply- purchase of materials in large homogeneous batches low prices and maintaining small inventories.

7. Legal services- ensuring the security of the strategy from the government, competitors, distribution channel participants and consumers.

Top management must ensure that each functional unit is willing to balance viewpoints in the joint decision-making process and participate in this process. Friction between services is inevitable, but it can be reduced by openly discussing differences and encouraging contacts between separate departments; look for people who bring together technical and marketing knowledge; create cross-functional working groups, committees and management development programs; develop the goals of each department, taking into account the tasks of other services (for example, evaluate the heads of marketing departments not by exceeding sales targets, but by the accuracy of forecasts). This is quite reasonable. Suffice it to say that in the practice of foreign companies, deviations in the accuracy of the forecast in one direction or another by more than 5 - 10% indicate the unprofessionalism of the marketer.

Strategic planning is the management process of achieving and maintaining a stable balance of the organization's goals, capabilities and resources and new market opportunities.

The environment within which marketing occurs includes factors controlled by top management and factors controlled by marketing. In order to coordinate them and create a basis for decision-making, it is useful to use a consistent strategic planning process. From a marketing perspective, a strategic plan specifies what marketing actions a firm should take, why they are necessary, who is responsible for implementing them, where they will be taken, and how they will be completed. They also determine the firm's current position, future orientation, and resource allocation.

Strategic planning in marketing has a number of specific features:

1. The strategic plan is built on the basis of strategic business units with mandatory condition their interactions. It relies on marketing data information systems, marketing research, sales departments, accounting.

2. Uses specific analysis, performance analysis and planned resource allocation models, as well as the organization's ability to develop, maintain and defend its market position. The marketing plan considers both the short-term and long-term consequences of decisions.

3. Integrates environmental analysis and contingency plans to facilitate the process of adapting to emerging changes.

Strategic planning in marketing allows you to solve a number of problems: determine directions for the company’s activities, which will allow it to better understand the structure of marketing research, the processes of studying consumers, product planning, its promotion and sales, as well as price planning; provide each division in the company with clear goals that are linked to the overall objectives of the company; stimulate coordination of efforts of various functional units; allows a company to evaluate its strengths and weaknesses from the point of view of competitors, opportunities and threats in environment; identify alternative actions or combinations of actions that the organization can take; forms the organizational basis for resource allocation; demonstrates the importance of applying procedures for assessing the activities of local divisions of the company in their interrelation.

Planning in marketing solves the following main tasks:

1. Defines the goals, basic principles and criteria for evaluating the planning process itself (for example, differentiation of food products depending on selected market segments, comprehensive planning of a market strategy, determining the volume and timing of financing depending on marketing goals).

2. Sets the structure and reserves of plans, their mutual connection (for example, links plans for the sale of manufactured food products in individual market segments, implements a comprehensive market strategy, sales and production activities regional offices and branches).

3. Establishes initial data for planning (state and prospects for market development, existing and future needs of end users of products food enterprise, forecast of changes in the commodity structure of markets).

4. Defines general organization planning process and framework (level of competence and responsibility of managers, rights and responsibilities of organizational and structural divisions of the enterprise).

Structure and types of marketing plans

Modern business plans of domestic firms, designed primarily for customers and fairly intense competition, must be well substantiated and realistic. All functional divisions of the company participate in the development of the program and plans.

A marketing program is a system of interrelated activities that determine the actions of an enterprise for a given period of time across all marketing blocks. The marketing program contains the main indicators:

1) dates for the start and completion of work on new products,

2) test prototypes,

3) organization serial production,

4) determination of the volume and nomenclature of production,

5) volumes of optimal product inventories in warehouses,

6) determining the dynamics and sales volumes of each group of goods in specific markets, including sales-related activities,

7) determination of dynamics and price levels (domestic and export),

8) calculations of financial costs for each program event,

9) determination of the main indicators of the production and economic activity of the enterprise (profit margin, rate of return, cost, etc.).

Modern concept marketing, as interpreted by a number of leading marketers (F. Kotler, J. Evans, etc.) links “consumer sovereignty” with a “new business philosophy”, while relying on the evidence base to create a relatively ideal match of the product range produced with the structure of public demand. But in fact, the marketing philosophy of business is the search for the optimal combination of all factors of market success, or rather, carrying out a comprehensive scientific research market aimed at increasing the competitiveness of the company in order to obtain higher profits.

Indicators of market research in the marketing system require planning and programming at the intersection of production and consumption, but in practice, the stochasticity of demand requires an active and adequate response in the sphere of production in close interaction with trade. One of the principles of marketing states that “prices changing during inflationary processes require constant re-education of the company’s consumer.” Therefore, we can conclude that marketing programs are a means of improving the production and marketing activities of individual firms, but they cannot actively influence the emergence and elimination of crisis phenomena in the economy. Marketing programs are formed on the basis of comprehensive market research, identification of customer requests, marketing strategies and tactics and are the basis that ensures the interaction of the commercial and sales services of the enterprise with scientific, technical, design and production departments, based on the interrelated functions of marketing.

Marketing functions are an interconnected set of actions, including:

1) analysis of internal and external environment in which the enterprise operates;

2) market analysis;

3) consumer analysis;

4) study of competitors and competition;

5) study of the product;

6) planning the production of goods based on marketing research;

7) planning of product distribution, sales and services;

8) demand formation and sales promotion;

9) formation and implementation of pricing policy;
development and implementation of marketing programs;

10) information support for marketing;

11) marketing management (planning, implementation and control of marketing activities with assessment of risk, profit, efficiency).

The marketing strategy consists in the formation and implementation of the goals and objectives of the manufacturing and exporting enterprise for each individual (segment) market and each product for a certain period of time (long-term, average daily) for the implementation of production and commercial activities in full accordance with the market situation and capabilities of the enterprise. A marketing strategy is developed on the basis of research and forecasting of product market conditions, studying products, buyers, competitors and other elements of the market economy. Depending on the adopted strategy, marketing program activities are formed. They can be focused on:

Maximum effect, regardless of the degree of risk,

Minimum risk without expecting a big effect,

Various combinations of these two approaches.
Marketing managers perceive themselves more as professional managers and only then as narrow specialists. The involvement of senior management in the development of marketing plans is constantly expanding. Planning becomes a continuous process aimed at matching the company's actions to rapidly changing market conditions.

The names of marketing plans usually vary: “Business Plan”, “Marketing Plan”, sometimes “Operational Plan”. Most marketing plans last for one year (sometimes for several years). Plans vary in length - they contain 10 - 50 pages. Some companies take the development of plans very seriously, others view them as a guide to action. According to marketing managers, the most common shortcomings of marketing plans are that they are not realistic, lack of competitive analysis, and focus on short-term results. For businesses operating in the consumer market, the most important guidelines when developing marketing plans are:

Consumer needs and demands;

Positioning of food products and companies (enterprises) in the market;

Price for foodstuffs, including from competing organizations;

The set of qualitative properties of the company’s products and other competing organizations;

Service pre-sale and during sale.

At each product level (production, trademark) a marketing plan must be developed. A marketing plan is one of the most significant results of the marketing process.

Marketing plans are classified according to the following criteria:

1. By duration:

Short-term (one year);

Medium-term (from two to five years);

Long-term (from five to ten or fifteen years).

Many firms rely on a combination of these plans.

Short- and medium-term plans are more detailed and

operational than long-term. For example, a one-year plan may specify precise marketing objectives and strategies for each product offered by the firm, while a fifteen-year plan may be limited to forecasting the external environment for that period and identifying the long-term needs of the organization.

2. By volume:

Separate marketing plans for each of the company's main products (most often used by manufacturers of consumer goods);

A single integrated marketing plan (most often used by companies operating in the service sector;

General economic plan(usually used by manufacturers of industrial products).

3. According to development methods:

From the bottom up - budgets, forecasts, timelines and marketing strategies are established based on information from salespeople, product managers, and advertising departments. Plans developed from below are realistic because they are based on operational information and have a good impact on psychological climate(since the employees involved in the planning process are responsible for its implementation). However, it may be difficult to coordinate and integrate plans developed from below into a single integrated plan.
and reconciling different assumptions about the same problem, for example, conflicting estimates of the impact of advertising on the sales of a new product;

Top-down - The above difficulties do not arise when developing this plan when the planning activities are centrally managed and controlled. In this case, it is possible to use comprehensive alternatives regarding competition and ensure a unified direction of marketing activities. However, the involvement of lower-level managers in the planning process decreases and the psychological climate may worsen. These two approaches are combined if senior management sets overall goals and directions, and employees involved in sales, advertising, and products develop plans for achieving the goals.

Marketing plans usually consist of several sections, which are presented in Table 5.

The plan summary and content should provide a summary of the main goals and recommendations that the plan will address. A summary of benchmarks helps senior management quickly understand the overall focus of the plan. The summary should be followed by a table of contents for the plan.

Table 5.- Approximate content of a marketing plan by main sections

Plan section	Content
Short review and contents of the plan	The main points of the proposed plan are presented.
Market situation	Basic data characterizing the state of the macroenvironment, product and distribution channels.
Analysis of opportunities and problems	Contains an analysis of the main opportunities (threats, strengths), weaknesses and production problems.
List of tasks and problems	Determines the financial and marketing objectives of the plan, expressed in terms of sales volume, market segmentation and profitability.
Marketing strategy	Represents the major areas of the marketing program used to achieve the plan's objectives.
Action program	Presents a special marketing program to achieve business goals.
Determination of planned profits and losses	Contains a forecast of expected financial results implementation of the plan.
Control	Shows ways to check plan execution.

The Market Situation section, as the first major section of the plan, describes the nature of the target market and the firm's position in that market. The planner describes the market in terms of size, major segments, customer needs, and specific environmental factors, provides an overview of major food products, lists competitors, and identifies the distribution channel. It is important to reflect the position of the product on the market, prices, gross and net profit for each major product over the past few years.

Level of competition - reflects the company's main competitors in the market. The section provides a description of competitors' production volumes, goals, real and fundamental market segments, the quality level of market service, used marketing strategy and other indicators necessary to understand their intentions and strategies.

Product distribution - the section provides data and characteristics of each distribution channel used. Macro environment of the company - this subsection describes the general trends of the business environment - demographic, legal, social, cultural, which in one way or another affect the prospects of production.

The Opportunity and Challenge Analysis section aims to force managers to take a long-term view and imagine the threats and opportunities that may arise before selling products. The purpose of all this is to force management to anticipate important events that can greatly affect the firm. Managers should list as many hazards and opportunities as they can imagine.

A hazard is a complication arising from an adverse trend or specific event that, in the absence of targeted marketing efforts, a particular firm can achieve competitive advantage. The marketer must evaluate the likelihood of each threat and each opportunity and their consequences for the firm. In addition, the manager certain group products must identify the strengths and weaknesses of their products.

For example, the strengths of products: the company’s brand (trademark) is well known, it good reputation; The intermediaries selling the company's products are highly professional. Weak sides products: the quality of the company's product is not much better than that of competing companies or lower; there is no clear positioning, unlike other companies, the advertising company does not have a creative approach; products cost more than competitors' products, but the higher price is not supported by a tangible difference in quality.

The section “List of tasks and problems” explains that, having studied the dangers and opportunities associated with the product, the manager is able to set tasks and outline the range of problems that arise. Objectives should be formulated in the form of goals that the company seeks to achieve during the period of the plan. For example, a company's marketer set the goal of achieving a 15% market share and a 20% profitability of sales before paying taxes on invested capital. But in fact, the company’s current share is only 10%. As a result of the situational analysis, the question needs to be addressed: how can market share be increased? The alternatives are different: price, sales service, after-sales service, packaging, quality, discounts, etc. Based on an analysis of the specific market situation that has developed in this moment time of the market, the marketer may come to the conclusion that it is necessary to consider all the main problems associated with options for increasing the real market segment.

The “Marketing Strategy” section outlines a broad approach to solving the assigned tasks. A marketing strategy is a rational, logical construction of real actions, guided by which an enterprise expects to solve its marketing problems. It includes specific strategies for target markets, marketing mix and marketing spend.

In the classic version, the marketing strategy is presented in the form of table 6.

The target markets are characterized as follows:

Table 6.- Marketing strategy of the company (in relation to food and non-food products)

Components	Content
Positioning	Wealthy homeowners: special attention to female buyers. Modular stereo systems with excellent sound and high reliability guarantee.
Production	The launch of another model at a price below the average and two models at higher prices.
Price	Set a price slightly higher than competitive brands.
Distribution channels	Special attention specialized electrical equipment stores, establishing relationships with department stores.
Sales	Increase sales volume by 10%, implement national system accounting.
Service	Affordable and fast service.
Advertising	Develop a new advertising campaign in accordance with the positioning of the brand; emphasis on expensive models; increase advertising budget by 20%.
Sales promotion	Increase the budget by 15%; develop new methods of presenting goods; actively participate in exhibitions.
Research and development	Increase development by 25%; develop new design lines.
Marketing research	Increase expenses by 10%; conduct research on consumer choice and constantly monitor the actions of competitors.

The marketing strategy must accurately name the market segments on which the company will focus its main efforts. These segments differ from each other in terms of preference, response and profitability. For each of the selected target segments, you need to develop a separate marketing strategy. When presenting the marketing mix, the manager should general outline outline specific strategies for such elements of the marketing mix as new food products, organizing local sales, advertising, food sales promotion, pricing and distribution of goods. Each strategy must be justified in terms of how it addresses the threats, opportunities and key issues outlined in the previous sections of the plan.

When determining the level of marketing costs, the manager must simultaneously accurately indicate the size of the marketing budget necessary to implement all previously outlined strategies. The manager knows that a higher budget will likely result in higher sales, but he needs to develop a budget that will provide the highest profitability.

The next part of developing a marketing strategy is the action program. Marketing strategies need to be translated into concrete action programs that answer questions such as:

1) what will be done;

2) when this will be done;

3) who will do it;

4) how much it will cost.

After developing the action program, the planned profits and losses are determined.

An action plan developed in this sequence and according to the listed sections allows the marketer to develop an appropriate company budget, which is, in fact, a forecast of profits and losses.

In the “Receipts” column, a forecast is given regarding the number and average price- net of commodity units that will be sold. The “Expenses” column indicates the costs of production, distribution and marketing. Their difference gives the amount of expected profit.

At the next stage, the company's management reviews the proposed budget and makes a decision to approve or change the budget. Once approved, the budget serves as the basis for purchasing materials, developing production schedules, planning needs for labor force and carrying out marketing activities. At the same time, a section of the plan is approved - “Control”, which sets out the procedure for monitoring the progress of activities and establishes the persons monitoring implementation.

In practice, the goals of the plan and the allocations are outlined for specific time periods (month or quarter). This allows the company’s management to evaluate the results achieved within each individual period of time, and for any product group to identify structures (responsible) that failed to achieve the target indicators set for them.

The managers of these productions will need to provide explanations and indicate what measures they are going to take to correct the situation.

Monitoring the implementation of annual plans involves constantly monitoring ongoing marketing efforts and results to ensure that sales and profit targets for the year are achieved. The main means of control are the study of sales opportunities, analysis of the relationship between marketing and sales costs, and observation of customer behavior.

Important in the strategic planning system is the analysis of the positions of enterprises in competition, the determination of what is necessary to improve the position of enterprises, acting by improving the product (like taste, nutritional value, appearance), choosing the most effective strategies.

marketing budget control distribution

Marketing budget is a section of an enterprise’s marketing plan that reflects the projected amounts of income, costs and profits. The basis for developing a marketing plan is the operational plan and developed action programs.

Drawing up a marketing budget helps to correctly prioritize goals and strategies of marketing activities, make decisions in the field of resource allocation, and exercise effective control.

Both the company’s management and managers of the main functions, which are affected to one degree or another by the marketing plan, take part in budgeting.

The approved marketing budget is the basis for purchasing raw materials, production planning, labor resources and marketing activities.

Adjustments to the marketing budget are carried out during the revision of the marketing plan in accordance with the control plan or during the operation of the enterprise as necessary.

When developing a marketing budget, two schemes are used. The first is planning based on target profit indicators. The second is planning based on profit optimization.

Let's look at the first diagram in stages:

• 1. Estimation of the total market volume for the next year. It is formed by comparing growth rates and market volumes in the current year.
• 2. Forecasting market share next year. For example, maintaining market share, expanding the market, entering a new market.
• 3. Forecast of sales volume in the next year, that is, if the market share is n%-, and the forecasted total market volume in natural units is m units, then the estimated volume will be X units.
• 4. Determining the price at which the product will be sold to intermediaries (unit price).
• 5. Calculation of the amount of income for the planned year. Determined by multiplying sales volume by unit price.
• 6. Calculation of the cost of goods: the sum of fixed and variable costs.
• 7. Gross profit forecast: the difference between gross revenue (income) and gross cost of goods sold.
• 8. Calculation of the benchmark target profit from sales, in accordance with the planned profitability ratio.
• 9. Marketing expenses. Defined as the difference between the amount of gross profit and target profit according to the plan. The result shows how much can be spent on marketing, taking into account tax costs.
• 10. Distribution of the marketing budget according to the following components of the marketing mix: advertising, sales promotion, marketing research.

The second planning scheme is based on profit optimization. Optimizing profits requires the company's management to clearly understand the relationship between sales volume and the various components of the marketing mix. The term sales response function can be used to provide a relationship between sales volume and one or more stages of the marketing mix. The sales reaction function is a forecast of the likely sales volume over a certain period of time under different cost conditions for one or more elements of the marketing mix.

A preliminary assessment of the sales reaction function in relation to the company’s activities can be done in three ways: statistical, experimental, expert.

In accordance with the principles of budgeting at all levels, the following items of income and types of costs are mandatory for standardization, planning and control.

Income - planned sales (in physical and value terms).

Costs - planned expenses. Main types of expenses:

• a) Variable selling expenses:
  • 1) commissions to sales intermediaries;
  • 2) delivery by own transport;
  • 3) bonuses;
  • 4) other variable selling expenses;
  • 5) variable costs for sales in general.
• b) Conditionally fixed business expenses:
  • 1) advertising;
  • 2) sales promotion;
  • 3) market research;
  • 4) wage sales personnel with accruals;
  • 5) travel expenses;
  • 6) other semi-fixed business expenses;
  • 7) semi-fixed costs for sales as a whole.

Table 1. Marketing budget of Chelyabinsk Poultry Farm OJSC.

Budget item		Percentage, %
Total forecast sales volume
Most likely production costs
Intermediate profit
Sales organization
Other costs for product promotion
Bringing the product to consumers and serving them
Package
Maintenance
Remuneration of managers and employees of marketing services
Loans provided to consumers
Cost of information
Total Marketing Costs

Drawing up a marketing budget helps to correctly set priorities between the goals and strategies of marketing activities, make decisions in the field of resource allocation, and exercise effective control. The costs of implementing the individual marketing elements presented in the budget are derived from the detailed marketing plan.

We will draw up a quarterly marketing budget for various product groups and customers. The table below shows the marketing budget aimed at selling products to small and large processing enterprises, taking into account planned income.

Table 2. Quarterly marketing budget.

Quarter 1	Quarter 2	Quarter 3	Quarter 4
Expense item	Expenses, rub	Expenses, rub	Expenses, rub	Expenses, rub
Printing (catalog of goods and services "PRICE")
Exhibitions:
Stand design
Presentation
Administrative expenses:
Control
Communications
Business trips
Office equipment
Training:
Trainings
Seminars
Stimulation:
Motivation programs
Salaries
Total expenses by quarter:
Expenses for the year

Table 3. Planned income.

As a result of the compiled tables, it can be seen that the costs of marketing activities are quite high. But with the help of marketing research and advertising, the promotion and sale of products will be most effective, which will cover the costs. There is, of course, an opportunity to reduce these costs by choosing the most optimal and cheapest types of product promotion. Or carry out advertising companies during periods that are most profitable for sales (since agricultural products are seasonal in particular). During periods of decline in demand, you can only remind yourself, here it will be enough: mailings to e-mail, telephone conversations with consumers. The highest costs are advertising on television (placing banners, commercials, etc.) if you limit quarterly output, and let’s say you do such advertising once every 6 months, you can save about 30,000 rubles. But there must be advertising, because “Advertising is the engine of trade!”

The marketing budget is prepared every year. At the same time, you should stick to your budget throughout the year. This will help avoid any unforeseen situations when executing the marketing plan.