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SOSTACE stands
for:
Situation
Objectives
Strategy
Tactics
Action
Control
Evaluation
Here is a
definition of the original SOSTAC:
Definition #3.
Planning
(SOSTAC)
is a process of answering three basic questions: 1) Where are we
now? (Situation analysis), 2) Where do we want to go - broad
direction? (Objectives), 3) How do we get there? (Strategies),
4. How do we get there - individual steps? (Tactics); 5. How do
we ensure arrival? (Actions); 6. How do we know when we have
arrived? - (Control).
Here are some
references from the Internet:
http://www.multimediamarketing.com/courses/me.asp?page=subject&id=13
Planning
Definition #1. Planning is the
establishment of objectives, and the formulation, evaluation and
selection of the policies, strategies, tactics and action
required the achieving them. Planning comprises long-term/strategic
planning,
and short-term operation planning. The latter is usually for a
period of one year.
Definition #2. Planning is the regular,
systematic, customer-centred and controlled series of activities
a company will undertake to meet business objectives, secure
long-term profitability and realize its product/market strategy
effectively and competitively.
Definition #3. Planning
(SOSTAC)
is a process of answering three basic questions: 1) Where are we
now? (Situation analysis), 2) Where do we want to go - broad
direction? (Objectives), 3) How do we get there? (Strategies),
4. How do we get there - individual steps? (Tactics); 5. How do
we ensure arrival? (Actions); 6. How do we know when we have
arrived? - (Control).
Marketing
planning process:
1) Business mission (Purpose, Strategy, Standards and
behaviours, Company values), 2) Marketing audit
(Microenvironment, The market, Competition; Operating results,
Strategic issues analysis,
Marketing mix
effectiveness,
Marketing structures, Marketing systems), 3)
SWOT analysis,
4) Generation
and evaluation of strategic options (For increasing sales:
Market penetration, Market expansion,
Product development,
Market
development; Entry into new markets; For Improving
profitability: Reduce costs, Rationalize operations, Increase
prices), 5) Marketing objectives (Strategic thrust), Strategic
objectives: Build, Hold, Harvest, Divest), 6) Core strategy
(Target markets;
Competitive advantage:
Being better,
Being faster, Being closer ; Competitors targets), 7)
Marketing mix
decisions, 8)
Organization and implementation, 9) Control.
The
marketing plan should include:
1) sales target; 2) total marketing budget analyzed (including
(a) salaries, (b) above the line expenditure [advertising],
below the line expenditure [sales promotion,
price reduction, allowances etc.]); 3) the
marketing mix;
4) the allocation of expenditure to products.
Smith's
SOSTT-4Ms mnemonic elaborates of planning:
(a) External analysis: 1) Situation, 2) Objectives, 3)
Strategy, 4) Tactics, 5) Targets; (b) Internal analysis:
6) Men, 7) Money, 8) Minutes, 9) Measurement.
Planning
cycle
: 1)
Examination of the marketplace: (i) External (sales trends,
levels of competition, product development, promotional
activity, patterns of consumption), (ii) Internal (brand share,
product advantages, promotional activity, patterns of
consumption); 2) Development of objectives and strategies: (i)
Objectives (sales,
market share,
consumer purchasing), (ii) Strategies (7 P's); 3) Evaluation
stage: (i) panel research, (ii) tracking studies, (iii) sales
measures.
Tactical
planning
Planning
typically undertaken by middle management to examine the
performance over a relatively short period of time of specific
products in a firm's marketing portfolio. (Courtland L.
Bovee, John V. Thill)
Strategic
planning
is the formulation, evaluation and selection of strategies for
the purpose of preparing a long-term plan of action to attain
objectives. Also known as corporate planning and long
range planning.
Levels of
planning
(from high
details to high scope):
1) Operations and transactions - now (What operations should be
performed with existing facilities to meet the specified output
requirements in the next operational period?),
2) Operational planning - 1-12 months (What is the best
position/marketing etc. plan to meet objectives? What materials,
facilities are needed for operations? What is the best method of
organizing operations?); Marketing and selling decisions:
Pricing, including discounting, Competitor tracking, Customer
research, Consumer research,
Distribution channels
and logistical choices, Sales and marketing budgets and
sub-budgets, e.g. promotion/advertising, Database management.
3) Tactical planning - 1-5 years (What products should be added
or deleted? What capital investment or divestment is necessary
to meet strategic plans? What is best pricing pattern? What new
facilities, systems or methods are needed to meet strategic
plans?); Marketing and selling decisions: Setting short
term prices, Discounting, Promotional campaigns, Advertising,
Distribution, Product service levels, Customer service levels,
Packaging, Planning sales territories, Short-term agency
agreements.
4) Strategic planning - 5 years + (What business should the
organization be in? How should the organization be structured?
How should resources be allocated?) Marketing and selling
decisions: Product/market decisions,
Product life cycles,
Product development,
Entry into new
markets, Investment in new technology to provide better
information, Database development.
The "E"
of SOSTACE is for Evaluation.
It
stands for Evaluation - an assessment on an annual basis t(or
other appropriate frequency) o review the costs of the operation
compared with the benefit - in my view an essential part of the
Marketing Planning and Implementation process which often gets
overlooked in the theoretical works by classroom specialists
with little exposure to practical aspects!
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