Marketing Planning Guru eBook

Contents:
1. Acknowledgement.
2. What makes this book different?
3. How to use this book?
4. About the Author.
5. How to become a Marketing Planning Guru?
6. References.

Acknowledgement:
I am thankful and grateful for my wife; Eman Helmy who is always being the driving
engine for my development and personal achievements. She is my own diamond, and is
always inspiring and supportive to encourage me to write this book and make it alive.
I am expressing my acknowledgement to my friend Ahmed Farghaly who was the first
one who believed in my articles and encouraged me to go step forward in my passion.
He is a true visionary leader who inspired me a lot since five years ago.
I am thankful for the person who helped me to discover my passion and make it crystal
clear; he is Mohamed Tohami (the author of The Pharaohs Code).
I am thankful and grateful for Safaa Abdelaziz; who was the IT Founder of
howtobeamarketer.com. And my acknowledgement to Mohamed Taqi who was
responsible for all of the designs in Marketing Gurus’ Secrets Program and the covers of
my books. They are always being supportive since I have launched my website and they
made my dreams come true by their amazing talent of designs.
And my gratitude to Chartered Institute Of Marketing (CIM) which is the best
professional body of Marketing in the world; and always being the source of my
development.
Yours Sincerely,
Mohammed Magdy
Back to Contents

What makes this book different?
Since December 2008, I started to write the articles of this book that made my passion
towards marketing like crystal clear. I spent ONE YEAR and a HALF to complete the
articles of this book until I launched those articles in my website at September 2010.
What is In It For You? (What Makes This Book Different?)
1. I am simply sharing with you the articles that inspired 70,000 Readers in ONE YEAR.
21,000 absolute unique visitors from United States, Egypt, United Kingdom, Saudi
Arabia, India, Malaysia, Philippines, Australia, Canada, and Thailand. 70,000 pages
have been reviewed by visitors, with an average spending time 5 min on the
website. Simply you will have a full copy with hyper-links of my website in your hand
through this e-book. You will browse the topics in few seconds without any internet
connection.
2. I am sharing with you the articles that inspired Marketing Professors, Managing
Directors, Marketing Directors, Marketing Managers, Product Managers,
entrepreneurs, Soft Skills Trainers, Sales Supervisors, Sales Representatives,
Pharmacists, Teacher Assistants, and Students to write testimonials when they
enjoyed those articles on my website. Here is the link for their testimonials:
http://www.howtobeamarketer.com/you-speak-we-listen/testimonials
3. In this book I didn’t create new marketing concepts; but instead you will find in-
depth explanation and illustration with very simple approach; in order to get you the
basic level of understanding about marketing planning.
4. In most of articles, you will find the following components in each one:
• What would you learn from this article? (What is in it for you?); this part
represent a 10% of the article.
• The Theoretical part of each article; this part represents only 20% of the
article. Most of the theories I shared in this book already existed and worked
tremendously with the top 500 fortune corporations in US. In some articles, I
wrote my own personal idea and concept about some topics, but I always tell
Back to Contents

my readers that part is mine (because you might be looking for only popular
concepts of marketing planning, so I am telling you this in order to be honest
with you).
• My explanations (from my point of view) to simplify the concepts, and add
strategies and tactics to help you implement those concepts and develop your
skills; this part represents 50-60% of the article.
• Examples and Stories for some marketing concepts illustrated in this book.
• Diagrams and Illustrations: I created 99% of the diagrams and illustrations
in this book. I made them in order to simplify the book for you and to help
you visualize the process and retain them in your unconscious mind.
• My evaluation of the theory (to give you advices, recommendations and tips
what you need to do next); this part represents 10-20% of the article.
5. In each article; I directly target the theory, its application, illustration & diagrams,
recommendation and my personal evaluation. I intended not to write any
introductions in each article because I value your time and I know that you want to
learn in a way that makes marketing planning interesting and fruitful for you.
6. The articles in this book were already published on my website;
www.howtobeamarketer.com, so when I created those articles I wrote them in a way
that saves your time and respects your need for each marketing topic. So when you
read them in this book; you won’t get lost and you won’t get bored because I am
directly targeting the strategies and tactics in each article without writing any fat
content.
7. The system of hyper-linking in this book would make the browsing experience very
enjoyable for you. That’s why I recommend reading the soft copy of this book not the
hard copy; because you will browse the topics in few seconds and you will never get
lost between pages. Kindly read “How To Use This Book” part.
Back to Contents

How to use this book?
Here are the steps:
1. If this is your first time to read about Marketing Planning, then kindly check the
articles I wrote about Marketing Planning Introduction. Those articles would
widen your scope before we go through this exciting journey of marketing in this
book. Kindly check the following link:
http://howtobeamarketer.com/marketing-planning-introduction
And enjoy watching the videos I conducted about Marketing Planning Introduction:
http://howtobeamarketer.com/videos/viewcategory/12/english-videos
2. After reading Marketing Planning Introduction, go directly to “How to become a
Marketing Planning Guru?” part in this book.
3. At the right bottom corner of each page, you will find BACK LINK to the
Marketing Topic you were reading. Once you complete reading an article, click
on the BACK LINK at the right bottom of the page to get back to the marketing
topic you were at, and then click on another article to read. This is the only way
to make you really enjoying the browsing experience in this book, and this is the
only way that would make this book really fruitful for you.
Example of BACK LINK: check it at the bottom of this page, you find Back to Contents
back link, once you click on it, you get back to the contents part and you would be able
to view this book in a systematic way.
4. Take a general overview on the articles written in “Marketing Planning Process”
Topic. Don’t spend so much time in this topic because each part would be
explained later on, and don’t go in-deep with the case study; just take an
overview and then get back to them later-on when you complete all marketing
planning topics.
Back to Contents

5. Now, you start your fruitful journey of marketing by studying Executive Summary
part, then Marketing Audit, then Marketing Objectives, then Marketing
Strategies, then Marketing Mix, then Budgeting, then Monitoring and Control. I
recommend reading them in sequence as I show you in “How to become a
Marketing Planning Guru?” part.
6. Send me an e-mail (dr.m_magdy@yahoo.com) that you have completed the
book and ask me for Case Studies to help you in your journey of learning in
marketing planning.
7. Ask me about Marketing Gurus’ Secrets e-book (Categorized by Marketing
Topic). That book would give you the Secrets behind the experience of 39
Marketing Guru in Marketing Planning and other fruitful topics. Marketing
Gurus’ Secrets book is your 2nd
step not your 1st
one; especially if you don’t have
basic level of understanding about Marketing Planning.
Back to Contents

About the Author:
I won’t use the word “He” to introduce myself to you in this book,
but instead I would speak to you as a friend who cares about you.
I am Mohammed Magdy; Chartered Marketer, MCIM,
Certified Guerrilla Marketing Coach, The Founder of
www.howtobeamarketer.com; where I have written more than
200 Marketing Articles in Marketing Planning Topics, and conducted
tons of marketing audios and videos for free to inspire, serve, and
help future marketers.
I am a holder of Professional Diploma in Marketing from Chartered Institute Of
Marketing (CIM), Cambridge International Diploma for Trainers and Teachers
from Cambridge University, Certified Practitioner Of Neuro-Linguistic
Programming (NLP) from the American Board Of NLP. So you could understand
that I have a Marketing, Training, and Psychology Skills from the above
qualifications. Also I hold Bachelor of Pharmaceutical Sciences from Cairo
University in Egypt.
Here is what others said about me and my website:
http://www.howtobeamarketer.com/testimonials
If you want to find-out more about me, then kindly check the following link:
http://www.howtobeamarketer.com/about/who-is-mmagdy
Feel free to let me know your thoughts about my book; e-mail me at:
dr.m_magdy@yahoo.com
Yours Sincerely,
Mohammed Magdy Back to Contents

How to become a Marketing Planning Guru?
First, enjoy reading the introduction about Marketing Planning: Marketing
Planning Process.
There are seven steps to become a Marketing Planning Guru:
1. Executive Summary.
2. Marketing Audit.
3. Marketing Objectives.
4. Marketing Strategies.
5. Marketing Mix.
6. Budgeting.
7. Monitoring and Control.
Back to Contents

Marketing Planning Process
1. Definition of Marketing.
2. Definition of Marketing Planning.
3. How to write a marketing plan in 7 steps?
4. What is marketing planning process in 5 steps?
5. Marketing Plan Template.
6. How to Write Vision and Mission Statements in Your Marketing Plan?
7. Marketing Plan Case Study Sample.
Back to “How to become a Marketing Planning Guru”

Definition of Marketing:
The management process responsible for identifying, anticipating and satisfying
customer requirements profitably. – Chartered Institute Of Marketing.
Definition of Marketing Planning:
The Marketing Planning is a systemic process of assessing marketing opportunities and
resources, determining marketing objectives and developing through a plan for
implementation and control (Dibb, et al, 2001).
Back to “Marketing Planning Process”

How to write a marketing plan in 7 steps?
• I always consider that writing marketing plans is the essential part for any
marketing job. Writing marketing plans is a soul that makes the body move, breath
and think, love, help, contribute and guide.
• If you want to join the marketing world and learned about writing marketing plans,
or if you got an assignment for marketing job interview and you asked to write a
marketing plan. So you will for strong and well established resources to help them in
their marketing plan.
• Individuals who didn’t start their marketing career yet, marketing executives,
marketing coordinator, marketing specialist, brand manager or Product Manager,
all of them are looking for how to write their marketing plan as 1st
marketing skill
they look for before anything else. If you are really want to learn how to write a
marketing plan, and then you are in the right place for learning about how to write
a marketing plan and how to write them in a professional way.
Why I say “Writing a marketing plan” not “Creating a marketing plan”?
There are articles that would say please come and learn about creating marketing
plans, but myself and many marketers are saying “Learn how to write a marketing
plan” because marketing plan is much more than creativity, it’s a planning process
gathered different parts of different contexts, each part has its own rules, theories,
experiences, advices and recommendations. Also marketers aren’t hired for their
creativity, they get hired because of organizational skills, planning skills, analytical skills
combined by their decision making skills.
• The following marketing plan will guarantee you to write the best marketing plan in
the world just follow my instructions and write your marketing plan step by step as
we help you in our website.

How to write a marketing plan?
1. Executive Summary:
Key issues, current position, potential overview of the outcome.
2. Corporate Strategy:
Mission, vision, goals and objectives.
3. Macro/Micro Analysis (Marketing Audit):
PESTEL (External Audit), Internal Audit, Porter 5 Forces and SWOT.
4. Marketing Objectives:
Financial & Marketing Objectives.
5. Marketing Strategies and Tactics:
Competitive Marketing Strategies, Segmentation, Targeting, Positioning, Marketing Mix
(7 P’s), Relationship Marketing.
6. Implementation:
Tasks, resources, Budgeting, contingency plans.
7. Monitoring and control:
• Critical Success Factors.
• Benchmarking (KPIs).
• Forecasts/Costs/revenues.
Seven guaranteed steps to write your own marketing plan that will put your
fingerprints in the marketing world. We will discuss each item in details to make
your professional and master in each one.

What is marketing planning process in 5 steps?

Any marketing planning process passes through these five stages, so upon the analysis
of the macro and micro environment (external and internal environmental analysis),
you need to set your marketing objectives, developing your marketing strategies,
determine your budget, then start to implement your marketing plan (marketing mix,
tactics or 7 P’s).
Why it’s called marketing planning process?
Because you need to write your marketing plan, you need to analyze, plan, evaluate,
and take a decision in each part of your marketing plan, and each part of your
marketing plan is affecting the other parts. That’s why it’s called marketing planning
process.

Marketing Plan Template
1.1. Key issues: ………………………………………………….………………………………..
1.2. Current position: ………………………………….………………………………………
1.3. Potential overview of the outcome: ……………………………………………..
2.1. Corporate Mission: ……………………………………………………………………….
2.2. Vision: ………………………………………………………………………………………….
2.3. Goals and objectives: ……………………………………………………………………
3.1. External Environmental factors (Macro-environmental factors),
External Audit or PESTEL:
3.1.1. Political Factors:
………………………………………………………………………..
3.1.2. Economic Factors:
……………………………………………………………………..
3.1.3. Social Factors:
……………………………………………………………………………
3.1.4. Technological Factors:
………………………………………………………………..………………………..
3.1.5. Environmental Factors:
……………………………………………………………….………………………..

3.1.6. Legal Factors:
……………………………………………………………………………..………………………..
3.2. Internal Environmental Factors (Micro-environmental factors), or
Internal Audit:
3.2.1. Business factors:
………………………………………………………………………….
3.2.2. Customers factors:
………………………………………………………………………
3.2.3. Suppliers factors:
………………………………………………………………………..…….…….…….…….…….
3.2.4. Stakeholders factors:
………………………………………………………………………….…….…….…….…….…….
3.2.5. Competitors factors; Porter’s Five Forces:
3.2.5.1. Bargaining Power of Buyer:
……………………………………………………..……………………..……………………..…….
3.2.5.2. Bargaining Power of Supplier:
…………………………………………….…..……………………………………….………………
3.2.5.3. Threat of Entrant:
…………………….……………………………………………..………………………………………
3.2.5.4. Threat of Substitute:
……………………………………………………………….……………………………………………
3.2.5.5. Inter-rivalry among existing competitors:
………………………………..………………………………..……………………………………….

3.3. SWOT Analysis:
Strengths: …………………………………………………………………………………………………..
Weakness: ………………………………………………………………………………………………….
Opportunities: ……………………………………………………………………………………………
Threats: ………………………………………………………………………………………………………
4.1. Corporate Objectives: ………………………………………………………………...
4.2. Sales Objectives: …………………………………………………………………………
4.3. Marketing Objectives: …………………………………………………………………
4.4. Business Non-financial Objectives: ………………………………………………
4.5. Balanced Scorecard: financial Part, Business Process Part, Learning
&Growth Part, and Customers Part: …………………………………………………….
4.6. Gap Analysis: …………………………………………………………………………......
5. Marketing Strategies:
5.1. Competitive Marketing Strategies:
5.1.1. Competitive Advantage Strategy (Porter’s Generic Strategy):
……………………………………………………………………………………………
5.1.2. Growth Strategy (Ansoff’s Matrix):
……………………………………………………………………………………………
5.1.3. Market Positioning Strategy:
……………………………….………………………………………………………………………..

5.2. Segmentation: ……………………………………………………………………
5.3. Targeting: …………………………………………………………………………..
5.4. Positioning: ………………………………………………………………………...
6. Marketing Mix (Marketing Tactics) or 7 P’s:
6.1. Product:
6.1.1. Product Characteristics:
…………………………………………………………………………..…………………
6.1.2. Product Elements:
………………………………………………………………….……………………………
6.1.3. Product Classification:
…………………………………………………………………….…………………………
6.1.4. Product Portfolio (if exist):
……………………………………………………………………………..………………….
6.1.5. Product Portfolio Analysis and Planning Tools:
6.1.5.1. Product Life Cycle (P.L.C.):
……………………………………………………………………………………………………….……
6.1.5.2. B.C.G. Matrix (Boston Consultancy Group Matrix):
………………………………………………………………………………………………………..…
6.1.5.3. G.E. Matrix (General Electric Matrix):
……………………………………………………………………………………………………………
6.1.6. Product Adoption Plan:
……………………………………………………..…………………………………………..………

6.1.7. New Product Development Plan:
……………………………………………………………………………………………………….……
6.2. Promotion (Integrated Marketing Communications):
6.2.1. Marketing Communications tools:
……………………………………………………………………………………………………………
6.2.2. Marketing Communications Media:
……………………………………………………………………………………………………………
6.2.3. Marketing Communications Messages:
………………………………………………………………..…………………………………………
6.2.4. Source Credibility:
……………………………………………………………………………………………………………
6.2.6. Evaluation of Marketing Communications tools effectiveness and
Media Effectiveness:
……………………………………………………………………………………………………………
6.3. Price:
6.3.1. Price Determinants:
……………………………………………………………………………………………………………
6.3.2. Pricing Objectives:
……………………………………………………………………………………………………………
6.3.3. Pricing Strategies:
………………………………………………………………………………………………………….
6.3.4. Stages of Developing a new Price:
……………………………………………………………………………………………………………

6.4. Place:
6.4.1. External factors affecting place decision:
……………………………………………………………………………………………………………
6.4.2. Internal factors affecting place decision:
……………………………………………………………………………………………………………
6.4.3. Channel members (channels of distributions):
……………………………………………………………………………………………………………
6.4.4. Channel Strategy:
……………………………………………………………………………………………………………
6.4.5. Channel Integration:
……………………………………………………………………………………………………………
6.4.6. Physical Distribution Management:
……………………………………………………………………………………………………………
6.4.7. Role of the internet as Channel of distribution:
……………………………………………………………………………………………………………
6.4.8. Evaluation Of Channel Effectiveness:
……………………………………………………………………………………………………………
6.5. Process:
……………………………………………………………………………………………………………
6.6. People:
……………………………………………………………………………………………………………
6.7. Physical Evidence: ……………………………………………………………………….

7. Implementation:
• Benchmarking:
…………………………………………………………………………………………………………….
• Evaluation of Performance:
……………………………….……………………………………………………………………………
• Corrective Actions:
………………………………………………..…………………………………………………………

How to Write Vision and Mission Statements in
Your Marketing Plan?
• Many marketers get confused when they start to create those vision and
mission statements for their marketing plans.
• Now you are going to differentiate between a vision and mission statements
clearly in order to know how to write vision and mission statements.
• To start putting your vision statement and mission statement, you should know
the basic concept for SWOT ANALYSIS.
• In SWOT analysis, S&W are representing the Strengths and Weakness, which
build the Mission Statement on.
• But O&T in SWOT are representing the Opportunities and Threats, which build
the Vision Statement on.
• So the Vision Statement is representing what you (or your company) want to
achieve in the Future.
• And the Mission Statement is representing the current situation of your
company or what is your organization position in marketplace (market
positioning strategy).
• In simple words, the vision statement represents the future and the mission
statement represents the present.
What is comes first; vision statement or mission statement?
• The answer of this question depends on your company current situation; if your
company starting its business and penetrating the market (market penetration),
then Vision Statement will take the lead for your marketing plan. But if your
company is well established in the marketplace, then Mission Statement will
take the lead for your marketing plan.
• This means you need to write both vision and mission statements, but which
one comes first, this will depend on your company current situation.

Want to understand it more? Watch This Video:
1. In English:
http://www.howtobeamarketer.com/videos/viewvideo/12/english-
videos/how-to-write-a-vision-and-mission-statements-english
2. In Arabic:
http://www.howtobeamarketer.com/videos/viewvideo/3/arabic-
marketing-videos/how-to-write-a-vision-and-mission-statements-arabic

Marketing Plan Case Study Sample
I would recommend reading this sample of marketing plan just to know how the
marketing planning process looks like. Every part in the answer of this marketing plan
would be provided in this book, so I would recommend for you to take a general view on
how the marketing plans look like.
Also I want to let you know that my answer for this marketing plan isn’t the ideal
answer, because marketing is never about right or wrong, it’s all about following the
process and writing your insights, thinking style, and critical approach toward building a
consistent marketing plan. I had interviewed about 39 Marketing Expert; as Jay Conrad
Levinson, Jack Trout, Al Ries, David Aaker, Tim Calkins, David Scott, and other marketing
gurus – you can find these interviews at Marketing Gurus’ Secrets Program-, and all of
them were having different insights in marketing planning, most of them worked with
the top 500 fortune corporations in US, and they have their own way of marketing
planning. So when you view this case study, take it as a sample to give you an overview
on how marketing plans looks like; based on the steps and recommendations I followed
in my studies at Chartered Institute Of Marketing (CIM).

The Case Study: CHAMPIONS Sports Club
Champions Sports club started in California at 1985, and became one of popular sports
club in 1995. The members were intending to go to this sports club for different
purposes, for social meetings at the swimming pool where families setting together and
enjoying fresh air, children were playing in the garden and enjoying different sports
activities at that time. Champions’ sports club was very popular in California in the field
of table tennis, where most of the Club Champions were winning the United States
Championships and were competing in the first positions for World Table Tennis
Championships. Also old people were enjoying setting together each Saturday to watch
the movie presented in the club each week.
There were about 5 main sports club which were competing in California from 1985 to
2000, and other 3 smaller clubs there. The 1st
club was called “HERO Club”, “STARS
Club”, “PARADISE Club”, “CALIFORNIA Club”, and “FANTASTICA CLUB”. HERO CLUB was
specialized as no. 1 sports champions in California, then “CALIFORNIA” and “STAR”.
“FANTASTICA” and “PARADISE” Clubs were specialized in entertainments and social
entertaining programs for the community, those 2 clubs were well know and having a
great reputation since 20 years ago.
Among questionnaire has been made in 2000: the following results shown:
 CHAMPION Club was no.1 Club for table tennis players, for old people and for
children.
 HERO and STARS Clubs were no. 1 and 2 choices for teenagers, and adults for
Sport games.
 FANTASTICA and PARADISE Clubs were no. 1 and 2 choices for entertainments
and social activities for different ages of the community.
In 2009, there are some changes happened in all of those clubs:
With the revolution of the technology, the children were interested for high technology
products; as play stations, and other electronic games, watching carton movies rather
than just playing sports. The old people lost the interest in the club because the show
has been changed to be introduced every 2 weeks, while FANTASTICA Club is providing
the same show every week with free dinner for Old people each Saturday.

The Table Tennis Coach in CHAMPION Club has changed with other one, who was having
many conflicts with existing table tennis players, which led to dissatisfaction of table
tennis players and finally they decided to leave the club instead of winning
championships. Also there are no modifications and improvements in the swimming
pools, and club facilities while the membership renewal fees increased to the double
from 2008 to 2009, which made a negative word of mouth and led to dissatisfaction of
existing members.
In 2010, another questionnaire conducted among the five main clubs:
CALIFORNIA, HERO, and STAR Clubs became the popular and well known clubs for
Sports Games. CALIFORNIA is having a good reputation in football, HERO Club is having a
good reputation in Basketball, and STARTS Club is having a good reputation in
Swimming.
FANTASTICA Club is the best club for social activities and restaurants for the high class
and for members who are willing to purchase high price products, while PARADISE Club
is the most economic club for social and activities and restaurants, especially for middle
class people.
The Chief Executive Officer of CHAMPIONS Club, Decided to recruit a new marketing
manager who was you. And you have been assigned to prepare a marketing plan for
CHAMPIONS Club, to be presented next month.
Please note that: this case study is from my imagination to help you, and doesn’t
represent any existing case study or any existing industry.

The Answer to the Case Study
(Marketing Plan Case Study Sample)
Important notice:
The following marketing plan is not an ideal answer to be applied in all case studies; it’s
a sample answer for one of my learners, so I will leave my comments after each part of
the learner’s answer.
To: Chief Executive Officer of CHAMPIONS Club.
From: Marketing Manager of CHAMPIONS Club.
Date: 11th
of Jan. 2010.
Subject: Marketing Plan for CHAMPIONS Club in 2010-2011.
The Marketing Plan Report includes the following issues:
Key issues, current position, potential overview of the outcome.
Mission, vision, goals and objectives.
PESTEL (External Audit), Internal Audit, Porter 5 Forces and SWOT.
Financial & Marketing Objectives.

5. Marketing Strategies and Tactics:
Competitive Marketing Strategies, Segmentation, Targeting, Positioning, Marketing Mix
(7 P’s), Relationship Marketing.
6. Implementation:
• Critical Success Factors.
• Benchmarking (KPIs).
• Forecasts/Costs/revenues.

The executive summary part is left for you to sum up the key challenges, your objectives
and key marketing strategy.
I will show you how to write executive summary for your marketing plan, in the next
chapters of this book.
2. Marketing Audit (Situational Analysis) or Environmental
Analysis:
2.1. Macro-environmental analysis (external environmental analysis
or External Audit): PESTEL
2.1.1. Political Factors:
Taxation:
The personal taxes in California are:
California collects income tax from its residents at the following rates.
For single and married filing separately taxpayers:
-- One percent on the first $7,168 of taxable income
-- Two percent on taxable income between $7,169 and $16,994
-- Four percent on taxable income between $16,995 and $26,821
-- Six percent on taxable income between $26,822 and $37,233
-- Eight percent on taxable income between $37,234 and $47,055
-- 9.3 percent on taxable income of $47,056 and above.
A One percent surcharge, the Mental Health Services Tax, is collected on taxable
incomes of $ One million or more, making California's highest marginal rate 10.3
percent. Back to “Marketing Planning Process”

For married persons filing joint returns and heads of households, the rates remain the
same but the income brackets are doubled.
Source: www.bankrate.com
The taxation rate is affecting the disposable income of each working individual; the
disposable income is directly related to the purchasing power of the customers.
Protection of the Environment:
Champions Club is not having any hazardous impacts on the environment.
Employment levels:
The unemployment rate in United States is 5.8% in 2008.
Source: CIA website.
Foreign Trade Agreements:
United States of America is belonging to free trade zones, which prevent any economic
barriers or new business entrants. And this is although the tough competition from
Chinese market that started to take a high market share in the cost-leadership
competition within price sensitive markets in USA.
Stability of Political System:
Currently California is not facing any political instability as response of the new
president; Obama.
2.1.2. Economic Factors:
Inflation Rate: 3.9 % (in 2008).
GDP (real growth rate): 0.4% (2008)
GDP (Per Capita): $47,500
GDP (official Exchange Rate): $14.44 trillion
GDP (Purchasing Power Parity): $14.44 trillion
GDP (Per sector): services: 79.6%

Labor Force: 154.3 million (includes unemployed).
Labor Force (by occupation): farming, forestry, and fishing 0.6%, manufacturing,
extraction, transportation, and crafts 22.6%, managerial, professional, and technical
35.5%, sales and office 24.8%, other services 16.5%
Note: figures exclude the unemployed (2007).
Unemployment rate: 5.8%.
Also we should consider the global economic crisis is affecting the purchasing power of
individuals and organizations to great extent. But in this case study; it became not the
major rule in changing the consumer behavior, although some figures shown that the
customers became more responsive for price sensitive markets.
2.1.3. Social Factors:
2.1.3.1. Age Structure in USA: (source: CIA website):
0-14 years: 20.2% (male 31,639,127/female 30,305,704)
15-64 years: 67% (male 102,665,043/female 103,129,321)
65 years and over: 12.8% (male 16,901,232/female 22,571,696) (2009 est.)
The previous data show that the children and old target segment are representing 30%
of the populations, while the remaining 70% is belonging to teens and adults.
2.1.3.2. Ethnic Groups in USA:
white 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native
Hawaiian and other Pacific islander 0.18%, two or more races 1.61% (July 2007
estimate)
note: a separate listing for Hispanic is not included because the US Census Bureau
considers Hispanic to mean persons of Spanish/Hispanic/Latino origin including those of
Mexican, Cuban, Puerto Rican, Dominican Republic, Spanish, and Central or South
American origin living in the US who may be of any race or ethnic group (white, black,
Asian, etc.); about 15.1% of the total US population is Hispanic

2.1.3.3. Religions:
Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, other Christian 1.6%, Jewish
1.7%, Buddhist 0.7%, Muslim 0.6%, other or unspecified 2.5%, unaffiliated 12.1%, none
4% (2007 est.)
2.1.3.4. Languages:
English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island 2.7%,
other 0.7% (2000 census)
Note: Hawaiian is an official language in the state of Hawaii
2.1.4. Technological Factors:
Actually within the new technology revolutions, the technology became a major part in
all industries, and it’s affecting the customer acceptance to purchase many products and
services.
The technological factor is playing major rule in customers switching in this case study;
as when FANTASTICA Club provided the same technological service provided in
CHAMPIONS Club with other offers and bonuses, then the CHAMPIONS loyal customers
switched to FANTASTICA Club. Also nowadays the teenagers and children became
obsessed with games based on technology innovations, so if we considered the
technology factors in our industry, then we will gain a good market share of customers
in the first year.
2.1.5. Environmental Factors:
Current Issues:
air pollution resulting in acid rain in both the US and Canada; the US is the largest single
emitter of carbon dioxide from the burning of fossil fuels; water pollution from runoff of
pesticides and fertilizers; limited natural fresh water resources in much of the western
part of the country require careful management; desertification
International Agreements:
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Antarctic-Environmental Protocol,
Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty,

Climate Change, Desertification, Endangered Species, Environmental
Modification, Marine Dumping, Marine Life Conservation, Ozone Layer
Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
Signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Air Pollution-Volatile
Organic Compounds, Biodiversity, Climate Change-Kyoto Protocol, Hazardous Wastes.
2.1.6. Legal Factors:
When the membership renewal fees in CHAMPIONS Club has been increased to the
double, that created a negative word of mouth and dissatisfaction of the existing
members, and this is could harm the Club upon organized activities from legal or non
legal groups.
Also we should respect the legal deals with our Sports Champions, especially for Table
Tennis Champions who left the club due to the internal conflicts happened upon the
recruitment of the new coach.

2.2. Micro-Environmental Factors, Internal Environmental Factors, or
Internal Audit:
2.2.1. Business Factors:
2.2.1.1. Managerial Factors:
We need training programs about coaching, leadership and team inspirations for:
- All services leaders; restaurants, cinema shows, leaders of staffs, and any other
service leader for CHAMPIONS Club.
- Swimming Pool Coaches, Table Tennis Coach, Football Coach, Tennis Coach,
Basketball Coach, and all other sports leaders and coaches.
2.2.1.2. Competitive Factors:
Our past competitive factors were:
- Table tennis history as the number one Champions in United States.
- The movie shows for Old People and Children.
Our current competitive factors:
- Good investment capabilities in new products and services.
- High number of staff members, leaders and coaches.
- The structure of Club system members, leaders and officers has been
established.
2.2.1.3. Financial Factors:
In the two years, the Club get affected by the Global Economic Crisis, and the
members became more sensitive to less price membership renewal fees, while the
new memberships wasn’t considered very well to gain new market segment.
Considering the liquidity issue, we are having enough liquidity to run and invest in
the new projects.

2.2.1.4. Technical factors:
The movie show need to be improved than before, and I suggest to start a new
facility (as Cinema Show) to be considered as new product development issues.
Also there are no consideration of the rule of the internet, and interactive marketing
communications to make a good market penetration, or to get new market
development as new target segments. Also we didn’t consider the social networking
website, viral marketing, and direct marketing to communicate with our existing
customers or attracting new customers. The old way of communication with our
existing customers was through mails, and sometimes through telephone
communication.
2.2.2. Customers Factors:
I sent you a marketing research request on last two weeks (Quantitative and
Qualitative) to gather information about what our customers need, and how they
see our new products and services, to know how much revenue we will get from
those products and services.
The Qualitative marketing research: through focus groups with our VIP members,
and through using projective techniques.
The Quantitative marketing research: conducting three types of questionnaires; one
through the telephone survey, Secondly through direct marketing (e-mails), and the
third through direct marketing (mails). And each respondent will get free renewal
membership for two members in his family upon the completion of the
questionnaire.
The results of the marketing research have been interpreted and we tailored a new
products and services for each target segment. You will find all of the details in the
marketing strategies, and product mix.
2.2.3. Suppliers Factors:
We need to take the following actions with our suppliers:
To provide extranet with key accounts suppliers.
To take in consideration key accounts management with the key suppliers.

To ensure the stock level and delivery times of raw materials to our club, this is
monitored on regular basis.
To ensure the system of maintenance and continuous improvements for our Sports
facilities is up to date.
2.2.4. Stakeholders factors:
Upon the segmentation and targeting of our stakeholders we need to tailor the
appropriate marketing communications mix and relationship marketing with each type
of suggested stakeholder (the details will be illustrated in marketing mix).

The suggested strategy for management of those stakeholders:

2.2.5. Competitors factors: Porter’s Five Forces Analysis:
2.2.5.1. Bargaining Power Of Suppliers:
We are facing two main issues with our suppliers:
The Concentration of suppliers: we only deal with two suppliers for our Club, which
reflects on the communications impact is too risky if there no regular and effective
communication and relationship marketing with those key suppliers.
The Switching Cost of suppliers: one of those two suppliers is dealing with FANTASTICA
Club, which led to better services for them because FANTASTICA is paying premium
prices for them, so they provided a high quality movie shows for their members.
My suggestions are to increase our suppliers to reach five suppliers, and to deal with
new suppliers specialized for each service we provide. For example: suppliers for
football, suppliers for basketball, and suppliers for table tennis. I knew this is going to
take long time to establish new relationship marketing with those accounts, but it
results on the long term led to high quality service and our facilities will be better than
any other Club.

2.2.5.2. Bargaining Power Of Buyers:
We found that many of our Club Members left the club and joined competitors’ club,
because of their renewal fees. So the Switching cost played a rule with price sensitive
target segment.
But actually our customers won’t pay attention to price increase if our products and
services are really unique and different (to work through Differentiation Marketing
Strategies). So if we focused about developing our products and services in the effective
way, then considering the effective communications mix with each target segment.
Then the Bargaining Power of Buyer will be a positive force towards switching
competitors’ customers to our Club.
2.2.5.3. Threat of Entrants:
As you see from the Macro-environmental analysis; GDP per Services sector is 79.6%
which make this sector attractive to many investors. Which makes this threat is possible
and expected within the next coming years.
2.2.5.4. Threat of Substitute:
Actually the substitute for SPORTS games aren’t that much threat in this industry. But
considering the Malls or Places which gather high technical games, restaurants, and
pleasant areas, all of those issues are placed everywhere in malls, and I think this is the
only substitute. But when we combine the best place for children, best place for
teenagers, adults and old people, with different services and entertainments programs
targeted for each target segment, and then I can expect the substitute won’t be
effective threat for our business.

2.2.5.5. Inter-rivalry among existing competitors:
2.2.5.5.1. Inter-Rivalry among Price Competition:
A. All of the Six Clubs are having the same membership fees for new members
(about 50,000 $) except PARADISE Club. The renewal fees of membership is
almost range from 200 to 500$ per year in the Six Clubs, except CHAMPIONS
Club renewal fees has increased to 750$ last year.
B. A PARADISE Membership fee for new members is 20,000 $.
2.2.5.5.2. Competitive Marketing Strategies of the Six Clubs:
HERO, STARS, CALIFORNIA, and FANTASTIC Clubs were adopting Differentiation
Marketing Strategies.
PARADISE Marketing Strategy: was Cost Leadership.
CHAMPIONS Marketing Strategy: wasn’t clear enough, sometimes
differentiation, then sometimes cost leadership in our products and services.

2.2.5.5.3. Target Segments:
HERO, CALIFORNIA and STARS Clubs: are targeted for teenagers and adults as main
service.
CHAMPIONS Club: was targeted to Children and Old People as main service.
FANTASTICA and PARADISE: social networking clubs for entertainments purposes. But
FANTASTICA is targeted for customers who are paying premium prices, while PARADISE
is targeted for price sensitive customers.
2.2.5.5.4. Competitive Services:
HERO Club is having a good reputation in Basketball game.
STARS Club: for Swimming.
CALIFORNIA Club: for Football.
CHAMPIONS Club: for table tennis.
FANTASTICA and PARADISE: Social networking Clubs for different ages.
The remaining steps for this marketing plan are left for you.

Executive Summary
How to write an executive summary for your marketing plan?
When you are assigned to write a marketing plan for your products or services, then
the 1st
page of your marketing plan should include an executive summary.
What is an executive summary in business marketing plan used for?
The Executive summary in your business plan is created to show the key issues such as;
where are your business now? Where are they going? Where are you going to get
there?
So to write an executive summary of your business marketing plan, you need to
consider:
 Key issues about current situation in your business to describe where your
business is now; Situational Analysis or Marketing Audit.
 Key issues about your marketing objectives (where are you going).
 Key issues about your marketing strategies and tactics (how are you going to get
there).
So to write an executive summary for your business marketing plan, you need to
consider the highlights and summary about:
1. Macro-environmental analysis, external environmental analysis or external
audit.
2. Micro-environmental analysis , internal environmental analysis or internal
audit.
3. Marketing Objectives.

4. Marketing Strategies (competitive marketing strategies, segmentation,
targeting, positioning).
5. Marketing tactics, Mix or 7 P’s (Product, Promotion, Price, Place, People,
Process and Physical evidence).
Actually when you consider writing executive summary for your business marketing
plan, your executive summary shouldn’t be more than one page. Also most of
marketers are writing marketing audit (situational analysis), marketing objectives and
marketing strategies, while stopping at marketing strategy stage in the executive
summary; because to describe the marketing mix in your executive summary, then
your executive summary will exceed one page. That’s why it’s called executive
summary; because it gives your manager highlights about key issues about your
business marketing plan.

Marketing Audit (situational Analysis)
1. What is a marketing audit?
2. How to conduct a marketing audit?
3. Macro environmental factors affecting business environment in
marketing plan:
3.1. What are macro environmental factors in marketing planning?
3.2. How to make macro environmental factors analysis in marketing plan?
3.3. Why do we need macro environmental factors analysis (PESTEL)?
3.4. Political Factors.
3.5. Economic Factors.
3.6. Social Factors.
3.7. Technological Factors.
3.8. Environmental Factors.
3.9. Legal Factors.
4. Micro environmental factors affecting business environment in
marketing plan:
4.1. What are the internal environmental factors in marketing plan?
4.1.1. Business Factors.
4.1.2. Competitive Factors.
4.1.3. Suppliers’ Factors.
4.1.4. Customers’ Factors.
4.1.5. Stakeholders’ Factors.
4.2. Porter’s Five Forces:
4.2.1. What is porter’s five forces Model?
4.2.2. Rivalry among existing competitors.
4.2.3. Threat of new entrants.
4.2.4. Threat of substitutes.
4.2.5. Bargaining Power of Suppliers.
4.2.6. Bargaining Power Of Buyers.

4.3. SWOT Analysis:
4.3.1. What is a SWOT Analysis in marketing plan?
4.3.2. What is a SWOT Analysis used for?
4.3.3. How to do a SWOT Analysis in marketing plan?
4.3.4. SWOT Analysis Template.

What is a marketing audit?
What is a marketing audit?
Marketing audit means to conduct analysis to your current business situation in a
certain marketplace.
What is marketing audit used for?
Marketing audit used for the analysis of the current situation of your product or
services business in the marketplace. So basically, you are conducting a marketing audit
to understand where your business now. In the marketing audit, you are analyzing the
external and internal factors affecting your business.
• It's the 3rd steps in writing any marketing plan (After the executive summary
and corporate strategy).
• To conduct a marketing audit, you should consider appropriate internal and
external factors.
What are types of marketing audit?
1. External Marketing Audit: Macro Environmental Analysis or external audit.
2. Internal Marketing Audit: Micro Environmental Analysis or internal audit.
1. Macro Environmental Analysis: PESTEL Factors:
 Political.
 Economic.
 Social.
 Technological.
 Environmental.
 Legal.
Back to “Marketing Audit”

2. Micro Environmental Analysis:
• Five key elements of Micro Environmental Analysis; Business, Competitors,
Suppliers, Customers and Stakeholders.
• Porter's Five Forces Model; threat of new entrants, bargaining power of
buyers, bargaining power of suppliers, threats of substitute, and rivalry
among existing competitors.
• SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats.

How to conduct a marketing audit?
To learn how to conduct a marketing audit; first you need to understand what is a
marketing audit?
To conduct a marketing audit, you need to get information about factors that affecting
both external and internal your business environment.
The factors affecting your external marketing environment are called External Audit or
Macro-environmental factors, while those are affecting your internal marketing
environment are called Internal Audit or Micro-environmental factors.
How to get information about factors affecting External
Marketing Environment or Macro-environmental issues?
This can be achieved through secondary marketing research sources as:
1. Published Data (electronic or printed): Most Recommended
You can get that information from: the Government, Trade Associations, Periodicals,
Newspapers, Books, Annual Reports, or Private Studies.
Recommended Source for getting information about External Marketing Environment
or Macro-environmental factors would be;
https://www.cia.gov/library/publications/the-world-factbook/
2. Standardized sources of marketing data:
Such As; STORE AUDITS, WAREHOUSE WITHDRAWAL SERVICES, CONSUMER PURCHASE
PANELS, SINGLE SOURCE DATA, NIELSEN’S TELEVISION INDEX, STARCH SCORES,
ARBITRON PANEL, and MULTIMEDIA SERVICES.

How to get information about factors affecting Internal
Marketing Environment or Micro-environmental issues?
You need to utilize both secondary research sources and to conduct primary researches
to get that information.
A. Recommended secondary research sources:
A.1. Internal records:
As; sales results, marketing activities, cost information, distributors’ reports and
feedback, customers feedback and employees’ feedback.
A.2. Syndicated Research.
A.3. Internet.
B. Conduct a Primary Research:
You need to consider both qualitative and quantitative methodologies to get that
information; but my recommendation is to focus on qualitative research more than
quantitative research. So what is recommended are:
 To conduct Focus groups; preferable to use projective techniques.
 To conduct In-depth Interviews; using projective techniques.
 To conduct Mystery Shopping as observation technique, you can consider
both personal and mechanical mystery shopping approaches.

What are macro environmental factors in
marketing planning?
The macro environmental factors in marketing planning are the external
environmental factors affecting your business, in other marketing terms it’s called
“External Marketing Audit”.
The macro environmental factors analysis means the analysis of the macro or external
environment, which means the analysis from the upper view of the world to the
environment, so you look to all of the factors that could affect your business except
those related to your product or market; to see the economic levels of people you are
going to implement your marketing activities in, to observe any political instability in
the country you plan to implement your marketing plan in, see the technological use of
the people you are targeted (if they updated with computers and technology or not), to
see the air conditions and the environment of the country that you will market your
products in and legal aspects of your products use in that country.
The macro environmental analysis or external environmental analysis is considered
the 1st
step in helping you as a marketer to write your marketing plan. So it’s important
to understand everything about external factors affecting your marketing plan before
thinking about marketing objectives, marketing strategies or marketing mix (tactics or
7P’s).
The Macro-Environmental Analysis or External Marketing Audit includes six factors
that are called PESTEL Factors:
• Political.
• Economical.
• Social.
• Technological.

• Environmental.
• Legal.
So each item is considered of a great importance to all of the marketers before they
started to assess their products issues; strengths and weakness, before start branding
their products (as making the logo, typography…etc), before they planned to make the
advertising or conducting campaigns directly (integrated marketing communications).
So they should determine the external environment first and see what is suitable for
your products, assess the benefits and determine the risks of starting their business in
the prospective marketplaces.

How to make macro environmental factors analysis
in marketing plan?
What are the major activities required for assessing the external
environment?
Before you start reading this article, I would recommend reading about “what are
macro environmental factors in marketing planning?”
Now what are the 1st
steps in the macro environment analysis?
1. Environmental Analysis:
The Process of analyzing, assessing and interpreting information collected through the
environmental scanning process.
2. Environmental Scanning:
It's the Process of collecting the information in order that the organization can
understand relevant information in relation to external forces and drivers within the
marketplace.
The following are the four steps required for environmental scanning process:

Environmental analysis and scanning are about collecting information, analyzing the
data, and see which information is much more relevant to your industry, ,business and
could affect your product marketing plan.
To understand how to make macro environmental factors analysis in marketing plan,
read the article about how to conduct a marketing audit. In that article I am explaining
a marketing research methodologies and techniques to help you to conduct marketing
audit (external marketing audit and internal marketing audit).

Why do we need macro environmental factors
analysis (PESTEL)?
Before you think about “why do we need macro environmental factors analysis
(PESTEL)”, you need to understand “what are the macro environmental factors in
marketing planning”.
Marketers; marketing managers, product managers, brand managers, and different
levels of marketing jobs are doing macro environmental analysis or external
environmental analysis as 1st
step to write their marketing plan, because there are
external environmental factors should be considered, and those factors are going to
affect their business in marketplaces.
I will tell you example about why we need macro environmental analysis:
You are the brand manager of stars cinema, which is presenting American movies for
their target audience. And then your managers to decide to open their new branch in
country called “X”. and when you conduct the analysis of macro environmental factors
on that country, you found that the inflation rate in high in that country (let’s say
inflation rate was 12 or 13) then you should expect that your consumer behavior is
getting affecting by price sensitivity which will affect your pricing strategies, therefore
you can expect that Cost leadership marketing strategy will be more profitable with
those target segment rather than differentiation marketing strategy; because the
disposable income of those target segment isn’t high as other countries which their
inflation rates are much less than “X” country.
The following are tips to highlight about why we need macro environmental analysis:
 Helping in decision making process and planning generally.
 It's a tool to assess the Basis for change and evolution within the company.
 To anticipate the opportunities.

 To identify and predict the trends and coming opportunities in the international
markets.
 To reconsider the physical and financial resources.
 To foresee and consider any Political, Economical, Regulatory changes and make
the implementation successfully.
 In forecasting the potential supply and demand from the market and supply
chain.

Political Factors
What are the political factors affecting business
environment in a marketing plan?
Considering, analyzing and understanding the political factors affecting your business
environment is very important and essential to write a marketing plan that will get you
the profit you want.
What are the political factors affecting business environment in
marketing plan?
1. Taxation.
2. Protection of environment.
3. Employment law.
4. Health and Safety.
5. Foreign Trade Agreement (FTA).
6. Stability of political system.
1. Taxation:
When the taxation decreases, this will lead to increase in the disposable income (gross
income minus income tax on that income). When the normal individual's disposable
income increase, this will results in increasing the buying power, which means the
individuals are becoming more able to buy things and facilities, so you have a good
chance to make a profit from selling your product to that country (which has a good
buying power).

2. Protection of the environment:
• Are you going to manufacture a product which could harm the environment?
• If you are going to harm the environment in small extent, you should know that
there is are tax and penalties from the government for the environmental damage
you make. Also you should select the place of your factory, if your company is going
to build a factory that manufacture your product, then choose a region that is close
to factories environmental areas and try to be away from the main populations.
• Do you have manufacturing wastes that could harm the environment? You should
consider this issue well, because there are millions of dollars could be spent on
making products, developing factories which its wastes are less harmful to the
environment and human health. And by the way this will get you a profit on long
term and you will have a good corporate social responsibility (CSR) towards
society, environmental groups, pressure groups, legal and regulatory authorities
in your country.
3. Employment law:
• What about the hiring and firing costs in the country that you are going to market
your products in?
• Are employees in your country having instability in their job? Do they have
stability with their job?
• You should know how much the normal cost that you are going to purchase to
your employees (if you are going to make new companies) or your employees (are
they satisfied with their salaries), what about the compensation and benefit
schemes? Do you have a good compensation and benefit scheme to your
employees (because the normal people of your country are stable at their job)?
4. Health and Safety:
You should know that your product has the highest safety profile and minimum hazard
on consumers' health. Also you need to read and apply the 'Consumer Safety Act 1974'.

5. Foreign Trade Agreement (FTA):
• The Foreign Trade Agreement (FTA) gives the companies that are from foreign
countries to penetrate your country market and marketing their products there. So
you should know if the Foreign Trade Agreement (FTA) applied in your country or
not.
• If the no. of imported products (that comes from the foreign countries) decrease,
that will help you to establish your product in the market (if your product is newly
starting its business in that market).
• Trade Barriers:
There are many types of trade barriers that include tariffs and non tariffs (Quota and
Boycott). Those trade barriers are one of the biggest barriers that prevent companies
for breaking in to a new international foreign market, as they pay tariffs and non-tariffs
to this new foreign market.
How Trade Barriers problems have been solved?
GATT; The General Agreement on Tariffs and Trade that has been developed by United
Nations after World War Two, then it has been replaced by the World Trade
Organization (WTO).
WTO has been working on reducing tariffs and non-tariffs since 1995. To get more info
about WTO, check the following link:
http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm
There are free trade zones in the world which don’t make Global organization pay tariffs
or non tariffs when they enter a new international market that belongs to those free
trade zones. Most well-known free trade zones in the world are: EU (European Union)
and NAFTA (North America Free Trade Agreement), ASEAN (Association of Southeast
Asian Nations). Those EU, NAFTA and ASEAN called as economic communities.

6. Stability of the political systems:
You should know and study the political stability of the country that you will market you
products in. This issue affects your long term investment of your products; also it gives
you indication about the duration that you should spend in marketing your products in
that country.

Economic Factors
What are the economic factors affecting business
Before you read this article, you need to understand and learn about:
 What are the macro environmental factors in marketing planning?
 How to conduct the macro environmental factors analysis in marketing plan?
 Why do we need macro environmental factors analysis (PESTEL)?
What are the economic factors affecting business environment in
marketing plan?
1. Inflation Rate.
2. Interest Rate.
3. Income levels.
4. Resources of country.
5. GNP (Growth National Product)/GDP (Growth Domestic Product).
6. Employment Level.
7. Exchange Rate – Currency Valuation.
8. Consumer Spending Pattern.

Inflation Rate (economic factor that affecting the business environment of
your marketing plan)
• The inflation rate is affecting the Purchasing Power in each country, which
affects the ability of the consumers to buy, that affecting your chance of making
profit and hinder any new entrants in the market.
• When the inflation rate increase, the purchasing power decrease, and the
disposable income decrease then chance of making profits of your product
decreases.
• The following picture indicates you with the inflation rates around the world.
Interest Rate (economic factor that affecting the business environment of
your marketing plan):
Increasing the interest rate will be decrease the purchasing power of the consumers,
which affect their ability to buy your products.
Income levels (economic factor that affecting the business environment of
your marketing plan):
The income levels of the country you are going to market your product in, is determine
the pricing strategy of your products or services. This will indicate

if the people in that country are being able to purchase your products or not.
Resources of your country (economic factor that affecting the business
environment of your marketing plan):
Increasing country resources are affecting organizations and companies to release new
product, also this is telling you which are the industries that you need to invest your
money in.
GNP (Growth National Product)/GDP (Growth Domestic Product)
(economic factor that affecting the business environment of your
marketing plan):
Gross domestic product (GDP) is defined as the "value of all final goods and services
produced in a country in one year". On the other hand, gross national product
(GNP) is defined as the "value of all (final) goods and services produced in a country
in one year, plus income earned by its citizens abroad, minus income earned by
foreigners in the country"

Any business model passes by the previous four stages:
 Prosperity.
 Recession.
 Depression.
 Recovery.

So also the GDP of any country should pass by all of the four stages, as the following
graph:
Employment Level (economic factor that affecting the business
environment of your marketing plan).
Exchange Rate – Currency Valuation (economic factor that affecting the
business environment of your marketing plan).
Consumer Spending Pattern (economic factor affecting the business
environment of marketing plan).
All of the previous eight factors could be determined perfectly in your county if you
check the following website:
https://www.cia.gov/library
Check the C.I.A. World Factbook which provides you with clear data about all factors you
need to know about your country.

Social Factors
What are the social factors affecting business environment in a
marketing plan?
To know about the social factors affecting the business environment in your marketing
plan, you need to understand the social contribution of the consumers in country you
plan to market your product in. Also you should consider their age, their classes, family
life cycles, their different religion and values. See how they think and what their
interests are.
The following issues are social factors affecting business environment in marketing
plan:
1. Demographic (social factor affecting business environment in
marketing plan):
• Age.
• Social classes.
• Sex.
• Family life cycles.
2. Society (social factor affecting business environment in marketing
plan).
3. Culture (social factor affecting business environment in marketing
plan):
• Language.
• Religion.
• Values.
• Attitudes.

• Healthcare.
• Education.
• Occupation.
• Social organization.
• Any other cultural factor.
You should study each factor of social factors affecting business environment in your
marketing plan in a very good manner, collect all of the data you need to customize
your product to them, select your way of communication that match their language,
develop a product that is not contradictory to their religion and values, create a product
that match their real needs. Think for each age' needs, for each sex's needs, what are
the family looking for, how they spend their weekend, how your product could comes
with pleasure and happiness to their social, personal and professional lives.

Technological Factors
What are the technological factors affecting business
The technological factors affecting business environment in marketing planning are
including entry of new technologies either in products, processes or both.
A. Products (technological factors affecting business
environment in your marketing plan):
1. Improvement in the current products:
Technical improvement of the current products means the creation or the development
of new technology that related to the product usage.
2. Products outdated or obsolete:
Example: transformation from the old camera films to the digital cameras.
3. Change in usage pattern:
E.g. when people or organizations were looking for files or documents transfers, they
were communicating by the courier companies which were costly and times consuming.
But with the new technologies as internet, the people found it easily to communicate
by e-mails and sending their files through different Microsoft office formats and PDF
format.

B. Processes (technological factors that affecting business
environment in your marketing plan):
1. EPOS (Electronic Points Of Sales):
• EPOS (electronic points of sales) is a smart technology that had enabled
reaching impressive improvements in Shops (food, fashion, computers…etc) it’s a
system that discovers what the consumer like and gives the marketers valuable
information about the consumer needs.
• EPOS (electronic points of sales) is a system that put on cashier system, which
record all of the products for each consumer. When the marketers start to
analyze that system, they found some common needs between consumers; like
they found all of the consumers who like to buy pampers, buy peers too. So the
marketers make a special offers for those segment who buy twelve pampers
packs take a peer for free.
• The EPOS (electronic points of sales) includes loyalty cards distributed for the
consumers, so they fill their personal information in those cards, the marketers
analyze the buying behavior of those consumers, their ages, sex, income levels,
personal interests, geographic locations of the consumers…etc.
• So if the system discovers that there is a big segment of the women there are
pregnant, this helps the marketers to develop a new partition in the market for
the infants (after 2 or months) so those consumers will buy these products.
2. Internet based supply chain:
• It's a system that makes the balance between the stock and the new orders for
the Shops.
• e.g. if you go to VIRGIN megastores, you will find that every book bought are
recorded on the system (Internet based supply chain) and if the stock reached a
specific levels (e.g. 2 or 3 books) it will automatically request a new quantities for
backup (Extranet system).
• The previous system found in books stores, mobile shops, hypermarkets,
computer shops and many shops of different categories.

3. Outsourcing:
• What is the outsourcing?
The company A makes a contract with another company (Company B) to conduct its
business. Company B is recruiting their own employees, and work for company A as
outsourcing company to promote their products and services to selected target
segments.
• Why organizations need outsourcing?
As you find in the Political factors affecting business environment in marketing plan, in
Employment law, you will find a high cost spent on the hiring, firing, and compensations.
So Organizations are looking for 2nd
organizations that didn't belong to the employment
law of the country (which the 1st
organizations exists in) and also their salaries, hiring
and firing costs are profitable for the 1st
companies also.
For example:
VODAFONE telecommunication company want to open a new branch for it in Australia
to handle the customers needs there (as Customer Service department). VODAFONE
will spend millions in the hiring, firing and paying compensations for their employees in
Australia. So they make a deal with other companies like India telecommunication
companies or any other companies in the Middle East, and recruiting employees who
have the same capabilities of Australian employees and matching the same standard of
skills of those employees. VODAFONE may pay thousands instead of millions by the idea
of outsourcing.

Environmental Factors
What are the environmental factors affecting business
The environmental aspect of PESTEL is very important for the marketers.
You should understand the environment of the country that your product
will be released in and the effect of the weather on the industry, agriculture
and on human health.
PESTEL Environmental factors includes the effect of the weather on three
factors; industry, agriculture and on human health.
1. Effect of the weather:
• More hot days, more frequent heat waves.
• More frequent heavy participation, intense topical cyclone activity.
• More areas affected by drought.
• Rise in the sea levels.
2. The impact of the weather on:
• On industry, human settlements and society.
• On agriculture, forestry, ecosystems, and water.
• On human health.
When you study the environmental factor well, you will know how to
create or develop a product that match the environmental aspect of your
country, or may be find a solution that make your product persistent for
many environmental factors that other products suffers from.

Also you should assess the environmental threats to predict the actions you
will take before they could happen.
The following matrix will help you in analyzing and observing the
environmental threats that could affect your business:
So any environmental threat could happen, should be analyzed from its
probability of occurrence (high or low) and its impact on your business
(high or low).

Legal Factors
What are the legal factors affecting business environment in a
marketing plan?
As a marketer, you need to know, observe and analyze all of the legal aspects in the
countries that you will market your products in.
Any company has its own legal rules and policy, but what is the most important is to
conduct a legal policy that matches the industrial Laws (Code of ethics, code of
conducts…etc) and environmental laws (Laws, legislations, regulations…etc) in the
countries you will market your products in.

There are many factors that could affect the Legal aspects of your external audit:
• Monopolies and mergers.
• Competitive activities.
• Unfair trading.
• Consumer legislation.
• Trade descriptions.
• Health & Safety.
• Professional Code of Conducts.
What are legal factors affecting business environment in marketing plan?
There are two types of legal factors that are affecting the business environment of your
marketing plan:
1. Legal factors affected by industry:
Each industry has its own code of ethics and code of conducts to make an established
rules, policies and regulations in business ethics. Most - if not all - of the companies are
asked to sign on code of ethics.
2. Legal factors affected by environment:
As; laws, legislations, and regulations from the government, environmental groups, and
pressure groups that are affecting your business and companies should follow those
laws and regulations, otherwise penalties would be imposed.

What are the internal environmental factors in
marketing plan?
Micro Environmental Factors, Internal environmental factors or
Internal Audit
The Internal environmental factors affecting internal business environment of your
marketing plan are analyzed in 3 steps:
1. Analyzing the five key factors affecting your internal business
environment:
• Business.
• Competitors.
• Suppliers.
• Customers.
• Stakeholders.
2. Analyzing Porter’s Five Forces of Internal Environment:
• Rivalry among existing competition.
• Threat of entrant.
• Threat of Substitute.
• Bargaining Power of Supplier.
• Bargaining Power of Buyer.

3. SWOT Analysis:
• Strengths.
• Weaknesses.
• Opportunities.
• Threats.

Business Factors
There are four business factors affecting the internal environment of
marketing plan, those factors are:
1. Managerial Factors.
2. Competitive Factors.
3. Financial Factors.
4. Technical Factors.

Managerial Factors
There are 4 business factors affecting internal business environment in marketing
plan; managerial factors, competitive factors, financial factors and technical factors.
Before you read this article, you need to understand what are the internal
environmental factors in marketing plan?
 To make effective internal business audit, you should consider some factors that
are related to the management team in your company (or your team specifically),
your products' unique competencies, company financial resources (considering your
products) and the technological improvement and its usage in the company as
overall.
 Managerial factors are the factors that are related to the management team of
your company or your team, so the following are the important issues that should
be considered in the audit of the management:
1. Corporate image.
2. Speed of response:
How they are responding to any concern, what is the speed of their response to any
problem, what about their speed of execution?
3. Flexibility:
What about their flexibility in taking decisions? What about their capabilities to create
alternative plans?
4. People attraction:
Is your management team having the skills and talent to attract people around them?
Are they skilled individual who could build a strong reputation for the company?
Back to “Business Factors” Sub-topic

5. Aggressiveness:
Are your management team truly having Leadership skills? Are they capable to
inspire, motivate, coach and lead your sales team? How they are responding to
critical situations? Are they aggressive? Do they like to control their teams?
If you made a questionnaire about your management team, what the subordinates
will say about them?

Competitive Factors
• They are the factors that make your product competitive and unique in the market,
many marketers spending months in creating a unique characteristic that makes
their product different and unique in the market.
• You should focus on the following issues that determine your product's competitive
factors:
1. Products Strength:
• What is the unique characteristic that makes your product strong? Is it something
about the quality? Is it about the efficacy?
• You should know the main strength of your product, which you will build your
marketing plan on.
2. Customer Loyalty:
• Customers’ loyalty is earned through a ladder of consumer behavior.
• What could you make to let your consumer become a loyal for your product?
• If you got a customer loyalty, your customer will select your product rather than the
competitors found in the same place.
• If you gained a strong customer loyalty, you may gained a Customers’ Preference
soon; if the customer search for your product in a certain place, and your product
wasn't available while your competitors were there, customers’ preference happens
when your customer leave that place and search for your product in other place.

3. Market Share:
• Market Share is a percentage that shows you how you are doing between the
competitors.
• So between your competitors of the same category; hot drinks, Highly priced cars,
Fashion (in the same region), fast food, you know how much your product get a
share in units and value % between existing competitors.
• The market share calculations are provided by marketing research companies which
calculate your products sales in units (how many items you sold) and value (how
much of all those units you sold).
• The market share could be calculated monthly, quarterly (every three months) or
even on yearly basis.
4. Management of Product Life Cycle.
5. Investment in Research and Development (R&D):
It’s a whole entity which is responsible for continuous development of your product's
clinical trials (conducting clinical trials) and discovery of new molecules for your
products.
6. Selling and Distribution Costs:
This issue is very important, because personal selling sometimes became very costly
tool and sometimes became very cost effective one. You should know that personal
selling is very effective but needs a high managerial skills and quality of implementation.
• Also you should know your way of selling your product (channels of
distribution); are you going to recruit sales persons and selling your products
directly to the consumers? Or are going to sell you products through another
channel; shops, hypermarkets, malls?
• The distribution cost: you should know who are your distributors? Who will
deliver your products to the shops or supermarket or hypermarket?

Financial Factors
1. Ease of exit:
If any company is going to lose its main capital and profits, they should know if they are
going to continue in that market or they would be withdrawing themselves from this
market. So if they will withdraw their products, they should do it with the least possible
loses = Ease of exit.
2. Liquidity:
To start your own project, or to conduct your integrated marketing communications;
marketing campaigns, advertising…etc you should know that you need a liquidity of
Money (Cash Flow) to conduct your business.
3. Degree of financial leverage:
Is the company having a strong financial resources? Are they starting or continuing their
business based on high leverage of financial resources?
4. Ability to compete on price :
Some companies are considering the price issue; Hence (Cost Leadership marketing
strategy) is their competitive advantage (advantage that make them unique in the
marketplace) like a good quality and low price or affordable price (for the economic
level of the consumers). So if your product is going to compete on price, you should
price your product in a way that makes it competitive (not low, not high).

5. Elasticity of Price :
• Elasticity of price is one of the price determinants which are determining and
affecting your pricing strategies.
• When your products' competitors lowered their price, you should take strategy that
determines if you are going to lower your price or not. Also you should know if their
new price could affect your business or not (because may be you are competing by
other factors rather than price e.g. high quality, while your competitors are
competing by price).

Technical Factors
The technical factors are the factors that affect your business from the technical points
of view. The following are the main issues that you should consider in your technical
audit:
1. Technical and manufacturing skills.
2. Strength of the patents.
3. Intensity of labor.
4. Economy of scale.
5. Application of new technology.
In the revolution of new technology and technological improvements in products and
services, this leads to a real focus from marketers on technology as one of essential
internal business environmental factors affecting marketing planning process.
In the knowledge economic forum 2008, Professor Michael Porter (who developed
Porter’s Five Forces theory) that he and his colleagues were working on a proposal to
introduce a Six force to Porter’s Five Forces, and that Sixth force was the technology,
which means how much the technology is an essential element in micro environmental
analysis of your marketing plan.

Competitive Factors
What does competition mean?
Competition: the interaction between companies making products similar to, or can be
substituted for a given business's products in the same geographic area
(Dibb et al, 2001).
To compete in the market, you should have strong competitive capabilities that help
you in putting your marketing's fingerprints in the heart and mind of consumers.
What are the competitive factors affecting internal business environment
in marketing plan?
1. Marketing Capabilities.
2. Technical Capabilities.
3. Management Capabilities.
4. Production Capabilities.
5. Innovation and design Capabilities "Company Capability Profile".
6. Financial Capabilities.

Suppliers’ Factors
How suppliers are affecting the internal business
In this article you learn about:
 What is the difference between suppliers and distributors?
 How are suppliers affecting internal business environment in
marketing plan?
 What is the Service that Supplier could provide you with?
What is the difference between suppliers and distributors?
Some marketers get confused between both of suppliers and distributor. So I am going
to explain it to you clearly.
• Supplier: is the place (or organization) that is going to supply your company with
the raw materials that you need to create (manufacture) your products.
• Distributor: is the place (or organization) that is responsible for distributing your
products to the consumers either in direct way (on distributor to end
consumers) or by passing through channel of distributors (Indirect way).
How are suppliers affecting internal business environment in marketing
plan?
1. The basis of supplier relationship:
You should ask yourself these questions:
How many suppliers I (or my company) have?

Do I have a relationship with them?
I am I having good relationships with their managers and subordinates?
2. Supplier innovation:
Are my suppliers having innovation in delivering the raw materials?
Can they get me raw materials of the same quality but of lower cost?
3. Supply record:
• Before you deal with supplier, you need to know if they have experience in the
sector you want to introduce your product in. If that supplier has a good
experience, is it has a good record as a supplier in that sector?
• Liquidity and financial stability: you prefer dealing with suppliers who have a
good liquidity and financial stability, because this means that they will deliver
you with the raw materials continuously (so your product will be maintained in
the market, no out of stock).
4. New Entrants into the supply chain.

5. The Selection Of The Supplier:
The following matrix helps you to know which supplier you should deal with:
High Service Quality
1 2
Low Cost 3 High Cost
4 5
Low Service Quality
What is the Service that Supplier could provide you with?
The supplier could get a raw materials of high quality, intermediate, or low quality, the
time of delivery of those materials is differs, innovation of the supplier, warranty is
provided or not, quality of delivery, how they respond in critical situations, record of
experience in the sector and with your company.
Quadrant No. 1 (High Service Quality and Low Cost):
It’s the best choice for you when you look for new supplier for your products, its super
bargaining choice for your company to select a supplier that provides the best quality of
service.

Quadrant No. 2 (High Service Quality and High Cost):
This should your second choice if you didn't find a supplier that provide low cost but
providing high service quality, most of the high service quality's' suppliers ask the high
price for their Service quality. Generally you should invest in getting the best service
quality from your suppliers.
Quadrant No.3 (Intermediate Service Quality and Intermediate Cost):
If you didn't have the enough resources to invest in selecting the supplier that provides
the best service quality, then look for the supplier that provides intermediate quality
with intermediate cost. So I see it's your choice if your company didn't have the enough
resources.
Quadrant No. 4 (Low service quality and low cost):
Make this as your last choice, if you didn't have the money and resources to select the
best suppliers that provide the best quality in their services.
Quadrant No. 5 (Low service quality and High cost):
Don't deal with those types of suppliers at all.

Customers’ Factors
What are the customers’ issues affecting internal environmental
analysis in a marketing plan?
Did you know why the marketing word was created?
Did you know why organizations are shifting their marketing strategies from Selling to
Marketing?
• Marketers started to think differently when they discovered that they need to
create, develop or release a product that really met customers’ needs.
• So the marketers stated to search for their customers’ needs, selecting them
carefully and developing products that satisfy those customers.
• The previous process called segmentation and targeting marketing strategies.
So the first step in customers' need analysis is to make segmentation marketing
strategy and targeting marketing strategy.
What are customers’ issues affecting internal environmental analysis in
marketing plan?
1. Segmentation and Targeting.
2. Develop a business that is customer focused (Satisfy the real customers' need).
3. Meeting customers expectation:
• To meet the customer expectations, you should know how your customers think
about you, expect from you, and then develop products or services that meet
those expectations.
• To identify the customer expectations, you need to conduct marketing
researches.

4. Marketing Research and Integrated Marketing Communications:
• Marketing Research is the defined to be the process responsible for anticipation,
identification and satisfaction of customer needs through a profit.
• Marketing communications is created to communicate with the customers
through marketing campaigns, advertising, personal selling, media…etc.
5. Retaining customers (Customer Retention):
• It's very important to retain your customers rather than searching for new
customers.
• Did you know that the cost of acquiring a new customer is Seven times higher
than retaining old customer?

Stakeholders’ Factors
What are the stakeholders factors affecting internal business
environment of a marketing plan?
Stakeholders' Types
To understand factors affecting internal business environment of marketing plan, you
need to understand and learn about different types of stakeholders, stakeholders’
classifications and how to deal with each category of stakeholders.
• Stakeholders are the individuals or organizations who affects (make decision) or are
affected by company's (which you are in) business.
• Stakeholders also may have essential rule in strategic decisions in your company
that will affect your business very much. Those stakeholders are individuals who pay
money to conduct Company’s business, or individuals who took shares
(Shareholders) due to their contribution for the company. So Stakeholders are
always seeking money and earning high profits on the long term of company's
business.
What are types of Stakeholders?
There are three types of Stakeholders:
1. Internal Stakeholders.
2. Connected Stakeholders.
3. External Stakeholders.
Internal Stakeholders:
Internal Stakeholders are the individuals who are working in the company; Managers
and employees. This type of stakeholders get share of the company business when they
spend certain no. of working years in the company. Their share increase gradually every
year they work in the company.

Connected Stakeholders:
They are called 'connected' stakeholders because they are the organizations or
individuals who aren't working inside the company (that you are in) but their business in
directly relevant to yours, so they became connected to your company's business.
Connected stakeholders are:
1. Distributors (who distribute your products from the manufacturer to the end
users through a channel of distributions).
2. Suppliers (who supply your business with the raw materials you need).
3. Customers (your customers are connected to your business, because they can
give your company the reputation and word of mouth to their friends and
families).
4. Creditors (who give you the money or services in advance).
External Stakeholders:
They are the individuals or corporate who are totally outside your company's
business but they have a power in decision making process and have the right to
make decisions and gain a profit from your company; this is either through their
money investment (organization who buy a share in your company) or due to the
service they provided for your company.
Those stakeholders are:
1. Local Government as stakeholder type.
2. Central Government as stakeholder type.
3. Environmental Groups (Pressure groups) as stakeholder type.
4. Local Community as stakeholder type.
5. Media as stakeholder type.
6. Financial Analysts as stakeholder type.

The following illustration will help you to understand all types of stakeholders.
Oldroyd, 2000

Stakeholders' Classification
Before you read this article, it’s recommended to understand different types of
stakeholders before understanding their classifications and how to handle each type of
stakeholders.
In this article you will learn about:
 How to make Stakeholders’ Classifications?
 How to manage different types of stakeholders?
How to make Stakeholders’ Classifications?
To classify your company's stakeholders, there is a matrix called 'Stakeholders
Mapping' created by "Brooks & Weatherston, 1997" which explain how to make
classification of stakeholders according to their Power (authority in controlling your
business) and Interest (how they like to be involved in your company Strategies).

How to manage different types of stakeholders?
Gardner et. Al created a matrix to help you to handle each category of the above,
separately; A, B, C and D.
The management the four categories have been illustrated easily in the previous matrix,
but the most important category is D 'Key Players' ; because they are powerful (having
the authority) and highly interested in the new marketing strategies for the company,
so their decision are critical for the new marketing strategies or corporate strategies
that are related to the company's business. So they called key players, as they play a key
role in the strategic decisions of the company.

There is another classification of the Stakeholders which based on their Power and
Dynamism of their stance:

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