What is short term marketing planning? What are the objectives and steps involved in short term marketing planning?
Short-term planning for marketing is generally made for one year at best and is more detailed, and sub-divided into monthly or even weekly so that it serves as an effective means of control.
SIMP has two main objects:
(i) Implementation of LIMP through programmes and budgets, and
(ii) Improvement of operating performance.
SIMP refers to the marketing-guided actions that must be pursued on a regular and continuous basis by the various levels of marketing management.
In order to ensure that current marketing actions are conducive to the LIMP, budgets are prepared in quantitative terms for shorter periods. Such short-term budgets earmark the performance standard to be achieved by the various functional operations of a marketing organisation.
The most important aspects considered in SIMP are: external planning, objectives setting, and optimisation procedures. In external planning, the marketing management lays stress on continuing its current strategies and estimates, likely-profits and sales it could achieve and thereby establishes the goals.
In the sphere of the objectives setting, the management sets down the goals with respect to volume of sales and volume of profit.
For optimisation procedures, the marketing department puts consideration on the major alternative strategies and their possible impact on: market share, market segments, profits, sales, and future opportunities. Here, the management makes a choice of the policy that is most suitable and practicable keeping in view the most favourable consequences.
In developing SIMP, the following basic steps are involved:
- The Market Research Manager collects information and data from the Regional Sales Managers and prepares a comprehensive report for submission to the Product Planning Manager.
- The Product Planning Manager, on receipt of the same, makes a preliminary plan for having a dialogue and consultations with the marketing executive. He also prepares the cost of operations for discussion.
- The Marketing Manager then examines the product plans from the standpoints of market structure, and submits his proposal to the top management or the Chief Executive.
- The Chief Executive goes through this report and approves the same for giving effect to actions.
