MARKETING PLAN A marketing plan may be part of an overall business plan.

Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. THE MARKETING PLANNING PROCESS A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. A marketing process can be realized by the marketing mix, which is outlined in step 4. The last step in the process is the marketing controlling. The marketing plan can function from two points: strategy and tactics (P. Kotler, K.L. Keller). In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead. MARKETING PLANNING AIMS AND OBJECTIVES Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the "corporate mission," which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing activities with corporate mission. The marketing plan basically aims to make the business provide the solution with the awareness with the expected customers. This "corporate mission" can be thought of as a definition of what the organization is, or what it does: "Our business is ...". This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans. Abell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be used. Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology]." Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Superordinate Goals." "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed." If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that

future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture. A "traditional" albeit product-based format for a "brand reference book" (or, indeed, a "marketing facts book") was suggested by Godley more than three decades ago: 1. Financial dataFacts for this section will come from management accounting, costing and finance sections. 2. Product datafrom production, research and development. 3. Sales and distribution data Sales, packaging, distribution sections. 4. Advertising, sales promotion, merchandising data Information from these departments. 5. Market data and miscellany from market research, who would in most cases act as a source for this information. His sources of data, however, assume the resources of a very large organization. In most organizations they would be obtained from a much smaller set of people (and not a few of them would be generated by the marketing manager alone).

It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to identify those existing (external and internal) factors which will have a significant impact on the future plans of the company." It is clear that the basic material to be input to the marketing audit should be comprehensive. Accordingly, the best approach is to accumulate this material continuously, as and when it becomes available; since this avoids the otherwise heavy workload involved in collecting it as part of the regular, typically annual, planning process itself when time is usually at a premium. Even so, the first task of this annual process should be to check that the material held in the current facts book or facts files actually is comprehensive and accurate, and can form a sound basis for the marketing audit itself. The structure of the facts book will be designed to match the specific needs of the organization, but one simple format suggested by Malcolm McDonald may be applicable in many cases. This splits the material into three groups: 1. Review of the marketing environment. A study of the organization's markets, customers, competitors and the overall economic, political, cultural and technical environment; covering developing trends, as well as the current situation. 2. Review of the detailed marketing activity. A study of the company's marketing mix; in terms of the 7 Ps - (see below) 3. Review of the marketing system. A study of the marketing organization, marketing research systems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and `garbage in, garbage out' applies with a vengeance.

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Portfolio planning. In addition, the coordinated planning of the individual products and services can contribute towards the balanced portfolio. 80:20 rule. To achieve the maximum impact, the marketing plan must be clear, concise and simple. It needs to concentrate on the 20 percent of products or services, and on the 20 percent of customers, that will account for 80 percent of the volume and 80 percent of the profit. 7 Ps: Product, Place, Price and Promotion, Physical Environment, People, Process. The 7 Ps can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plans.

It is only at this stage (of deciding the marketing objectives) that the active part of the marketing planning process begins. This next stage in marketing planning is indeed the key to the whole marketing process. The "marketing objectives" state just where the company intends to be at some specific time in the future. James Quinn succinctly defined objectives in general as: Goals (or objectives) state what is to be achieved and when results are to be accomplished, but they do not state "how" the results are to be achieved. They typically relate to what products (or services) will be where in what markets (and must be realistically based on customer behavior in those markets). They are essentially about the match between those "products" and "markets." Objectives for pricing, distribution, advertising and so on are at a lower level, and should not be confused with marketing objectives. They are part of the marketing strategy needed to achieve marketing objectives. To be most effective, objectives should be capable of measurement and therefore "quantifiable." This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. An example of such a measurable marketing objective might be "to enter the market with product Y and capture 10 percent of the market by value within one year." As it is quantified it can, within limits, be unequivocally monitored, and corrective action taken as necessary. The marketing objectives must usually be based, above all, on the organization's financial objectives; converting these financial measurements into the related marketing measurements. He went on to explain his view of the role of "policies," with which strategy is most often confused: "Policies are rules or guidelines that express the 'limits' within which action should occur."Simplifying somewhat, marketing strategies can be seen as the means, or "game plan," by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 8 P's. Examples are: Price The amount of money needed to buy products Product The actual product Promotion (advertising)- Getting the product known Placement Where the product is sold People Represent the business Physical environment The ambiance, mood, or tone of the environment Process The Value-added services that differentiate the product from the competition (e.g. after-sales service, warranties) 8. Packaging How the product will be protected 1. 2. 3. 4. 5. 6. 7.

(Note: At GCSE the 4 Ps are Place, Promotion, Product and Price and the "secret" 5th P is Packaging, but which applies only to physical products, not services usually, and mostly those sold to individual consumers)

In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a useful framework for deciding how the company's resources will be manipulated (strategically) to achieve the objectives. However, they are not the only framework, and may divert attention from the real issues. The focus of the strategies must be the objectives to be achieved not the process of planning itself. Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 7 Ps. The strategy statement can take the form of a purely verbal description of the strategic options which have been chosen. Alternatively, and perhaps more positively, it might include a structured list of the major options chosen. One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the best time for each element of the strategy to be implemented is often critical. Taking the right action at the wrong time can sometimes be almost as bad as taking the wrong action at the right time. Timing is, therefore, an essential part of any plan; and should normally appear as a schedule of planned activities. Having completed this crucial stage of the planning process, you will need to re-check the feasibility of your objectives and strategies in terms of the market share, sales, costs, profits and so on which these demand in practice. As in the rest of the marketing discipline, you will need to employ judgment, experience, market research or anything else which helps you to look at your conclusions from all possible angles. DETAILED PLANS AND PROGRAMS At this stage, you will need to develop your overall marketing strategies into detailed plans and program. Although these detailed plans may cover each of the 7 Ps (marketing mix), the focus will vary, depending upon your organization's specific strategies. A product-oriented company will focus its plans for the 7 Ps around each of its products. A market or geographically oriented company will concentrate on each market or geographical area. Each will base its plans upon the detailed needs of its customers, and on the strategies chosen to satisfy these needs. Brochures and Websites are used effectively. Again, the most important element is, indeed, that of the detailed plans, which spell out exactly what programs and individual activities will take place over the period of the plan (usually over the next year). Without these specified and preferably quantified activities the plan cannot be monitored, even in terms of success in meeting its objectives.It is these programs and activities which will then constitute the "marketing" of the organization over the period. As a result, these detailed marketing programs are the most important, practical outcome of the whole planning process. These plans must therefore be:

Clear - They should be an unambiguous statement of 'exactly' what is to be done. Quantified - The predicted outcome of each activity should be, as far as possible, quantified, so that its performance can be monitored.

Focused - The temptation to proliferate activities beyond the numbers which can be realistically controlled should be avoided. The 80:20 Rule applies in this context to. Realistic - They should be achievable. Agreed - Those who are to implement them should be committed to them, and agree that they are achievable. The resulting plans should become a working document which will guide the campaigns taking place throughout the organization over the period of the plan. If the marketing plan is to work, every exception to it (throughout the year) must be questioned; and the lessons learnt, to be incorporated in the next year's .

CONTENT OF THE MARKETING PLAN A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors 1. Description of the product or service, including special features 2. Marketing budget, including the advertising and promotional plan 3. Description of the business location, including advantages and disadvantages for marketing 4. Pricing strategy 5. Market Segmentation MEDIUM-SIZED AND LARGE ORGANIZATIONS The main contents of a marketing plan are: 1. 2. 3. 4. 5. 6. 7. 8. Executive Summary Situational Analysis Opportunities / Issue Analysis - SWOT Analysis Objectives Marketing Strategy Action Program (the operational marketing plan itself for the period under review) Financial Forecast Controls

In detail, a complete marketing plan typically includes: 1. Title Page 2. Executive Summary 3. Current Situation - Microenvironment o economy o legal o government o technology o ecological o sociocultural

4.

5.

6.

7.

8.

9.

supply chain Current Situation - Market Analysis o market definition o market size o market segmentation o industry structure and strategic groupings o Porter 5 forces analysis o competition and market share o competitors' strengths and weaknesses o market trends Current Situation - Consumer Analysis o nature of the buying decision o participants o demographics o psychographics o buyer motivation and expectations o loyalty segments Current Situation - Internal o company resources financial people time skills o objectives mission statement and vision statement corporate objectives financial objective marketing objectives long term objectives description of the basic business philosophy o corporate culture Summary of Situation Analysis o external threats o external opportunities o internal strengths o internal weaknesses o Critical success factors in the industry o our sustainable competitive advantage Marketing Research o information requirements o research methodology o research results Marketing Strategy - Product o product mix o product strengths and weaknesses perceptual mapping

product life cycle management and new product development Brand name, brand image, and brand equity the augmented product product portfolio analysis B.C.G. Analysis contribution margin analysis G.E. Multi Factoral analysis Quality Function Deployment 10. Marketing Strategy [6] - segmented marketing actions and market share objectives o by product o by customer segment o by geographical market o by distribution channel 11. Marketing Strategy - Price o pricing objectives o pricing method (e.g.: cost plus, demand based, or competitor indexing) o pricing strategy (e.g.: skimming, or penetration) o discounts and allowances o price elasticity and customer sensitivity o price zoning o break even analysis at various prices 12. Marketing Strategy - Promotion o promotional goals o promotional mix o advertising reach, frequency, flights, theme, and media o sales force requirements, techniques, and management o sales promotion o publicity and public relations o electronic promotion (e.g.: web, or telephone) o word of mouth marketing (buzz) o viral marketing 13. Marketing Strategy - Distribution o geographical coverage o distribution channels o physical distribution and logistics o electronic distribution 14. Implementation o personnel requirements assign responsibilities give incentives training on selling methods o financial requirements o management information systems requirements o month-by-month agenda PERT or critical path analysis o monitoring results and benchmarks

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adjustment mechanism contingencies (what ifs) 15. Financial Summary o assumptions o pro-forma monthly income statement o contribution margin analysis o breakeven analysis o Monte Carlo method o ISI: Internet Strategic Intelligence 16. Scenarios o prediction of future scenarios o plan of action for each scenario 17. Appendix o pictures and specifications of the new product o results from research already completed MEASUREMENT OF PROGRESS The final stage of any marketing planning process is to establish targets (or standards) so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives (for example, to capture 20 percent by value of the market within two years) and into the corresponding strategies. Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed. Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this. However, perhaps even more important is the enforced discipline of a regular formal review. Again, as with forecasts, in many cases the best (most realistic) planning cycle will revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail, is probably a quarterly rolling review planning one full year ahead each new quarter. Of course, this does absorb more planning resource; but it also ensures that the plans embody the latest information, and with attention focused on them so regularly forces both the plans and their implementation to be realistic. Plans only have validity if they are actually used to control the progress of a company: their success lies in their implementation, not in the writing'. PERFORMANCE ANALYSIS The most important elements of marketing performance, which are normally tracked, are: SALES ANALYSIS Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in terms of 'sales variance' - the deviation

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from the target figures which allows a more immediate picture of deviations to become evident. `Micro-analysis', which is simply the normal management process of investigating detailed problems, then investigates the individual elements (individual products, sales territories, MARKET SHARE ANALYSIS Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm's share of the market can decrease which bodes ill for future sales when the market starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed:

overall market share segment share that in the specific, targeted segment relative share

EXPENSE ANALYSIS The key ratio to watch in this area is usually the `marketing expense to sales ratio'; although this may be broken down into other elements (advertising to sales, sales administration to sales, and so on). FINANCIAL ANALYSIS The "bottom line" of marketing activities should at least in theory, be the net profit (for all except non-profit organizations, where the comparable emphasis may be on remaining within budgeted costs). There are a number of separate performance figures and key ratios which need to be tracked:

gross contribution<>net profit gross profit<>return on investment net contribution<>profit on sales

There can be considerable benefit in comparing these figures with those achieved by other organizations (especially those in the same industry); using, for instance, the figures which can be obtained (in the UK) from `The Centre for Interfirm Comparison'. The most sophisticated use of this approach, however, is typically by those making use of PIMS (Profit Impact of Management Strategies), initiated by the General Electric Company and then developed by Harvard Business School, but now run by the Strategic Planning Institute. The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization's performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:

market research including customer panels (which are used to track changes over time) lost business the orders which were lost because, for example, the stock was not available or the product did not meet the customer's exact requirements customer complaints how many customers complain about the products or services, or the organization itself, and about what

USE OF MARKETING PLANS A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period. However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a unique opportunity, a forum, for information-rich and productively focused discussions between the various managers involved. The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself. Additionally, marketing plans are included in business plans, offering data showing investors how the company will grow and most importantly, how they will get a return on investment. BUDGETS AS MANAGERIAL TOOLS The classic quantification of a marketing plan appears in the form of budgets. Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results. What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main (regular) management review process. The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document. It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities. It is then used in monitoring performance in practice. The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans. MARKETING MIX The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services.

In recent times, the concept of four Cs has been introduced as a more customer-driven replacement of four Ps.[1] And there are two four Cs theories today. One is Lauterborn's four Cs (consumer, cost, communication, convenience), another is Shimizu's four Cs (commodity, cost, communication, channel). HISTORY The term marketing mix was coined in an article written by Neil Borden called The Concept of the Marketing Mix.[2] He started teaching the term after he learned about it from an associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.[3] PRODUCER-ORIENTED MODEL The marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been used by marketers throughout the world.[1] Classification Category Definition A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system.[1] Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage. The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies. the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should

Product

Price

set a price that complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account.[1] all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.[1] Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public Promotion relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above). refers to providing the product at a place which is convenient for consumers to distribution access. Various strategies such as intensive distribution, selective distribution, (Place) exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. The seven Ps is an additional marketing model that refers to the already mentioned four Ps, plus 'Physical evidence', 'People', and 'Process': Classifications Definition elements within the store -- the store front, the uniforms employees wear, signboards, etc. the employees of the organization with whom customers come into contact. the processes and systems within the organization that affects its marketing process.

Category Physical evidence People Process

These latter three factors are not cited nearly as often as the first four. CONSUMER-ORIENTED MODEL Robert F. Lauterborn proposed a four Cs classification in 1993[6] which is a more consumeroriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing:

"P" category

"C" category

"C" definition

Shifting the focus to satisfying the consumer needs. By defining offerings as individual capabilities that are combined and focused Product Consumer to a specific industry, the result is a custom solution rather than the pigeon-holing of a customer into a product. Reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or Price Cost implement the new product or service and the customer's cost for not selecting a competitor's product or service. Represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, Promotion Communication and any form of communication between the organization and the consumer. With the rise of Internet and hybrid models of purchasing, Place is distribution becoming less relevant. Convenience takes into account the ease Convenience (Place) of buying the product, finding the product, finding information about the product, and several other factors. FOUR CS: IN THE SEVEN CS COMPASS MODEL (Corporation and consumer -oriented model) After Koichi Shimizu proposed a four Cs classification in 1973, this was expanded to the seven Cs compass model to provide a more complete picture of the nature of marketing in 1981. It attempts to explain the success or failure of a firm within a market and is somewhat analogous to Michael Porter's diamond model, which tries to explain the success and failure of different countries economically.[7][8][9] The seven Cs compass model are:

(C1)Corporation The core of four Cs is corporation ( company and non profit organization). C-O-S (Organization, Competitor, Stakeholder) within the Corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The four elements in the seven Cs compass model are:

A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel, Communication) in the seven Cs compass model. The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place, promotion) of marketing management.[10] o Product Commodity o Price Cost o Promotion Communication

Place Channel "C" category "C" definition

"P" category

(Original meaning of Latin: Commodus=convenient) : It is not "product out". The goods and services for the consumers or Product (C2)Commodity citizens. Steve Jobs has been making the goods with which people are pleased. It will not become commoditization if a commodity is built from the start. (Original meaning of Latin: Constare= It makes sacrifices) : Price (C3)Cost There is not only producing cost and selling cost but purchasing cost and social cost. (Original meaning of Latin: Communio=sharing of meaning) : marketing communication : Not only promotion but Promotion (C4)Communication communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity. (Original meaning is a Canal) : marketing channels. Flow of place (C5)Channel goods. The compass of consumers and Circumstances (environment) are:

(C6)Consumer (Needle of compass to Consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:
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N = Needs W = Wants S = Security E = Education:(consumer education) (C7)Circumstances (Needle of compass to Circumstances )

In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:
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N = National and International W = Weather S = Social and Cultural E = Economic

These can also be remembered by the cardinal directions marked on a compass. The seven Cs compass model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the four Ps with different points of emphasis. In particular, the seven Cs inclusions of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The seven Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.
Financial plan

In general usage, a financial plan[1] is a series of steps or goals used by an individual or business, the progressive and cumulative attainment of which are designed to accomplish a financial goal or set of circumstances, e.g. elimination of debt, retirement preparedness, etc. This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving future income. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement. CONTEXT OF BUSINESS In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and cash flow statement) created within a business plan. Financial forecast or financial plan can also refer to an annual projection of income and expenses for a company, division or department.[2] A financial plan can also be an estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company.[3] While the common usage of the term "financial plan" often refers to a formal and defined series of steps or goals, there is some technical confusion about what the term "financial plan" actually means in the industry. For example, one of the industry's leading professional organizations, the Certified Financial Planner Board of Standards, lacks any definition for the term "financial plan" in its Standards of Professional Conduct publication. This publication outlines the professional financial planner's job, and explains the process of financial planning, but the term "financial plan" never appears in the publication's text.[4] OWNERSHIP Ownership of property may be private, collective, or common and the property may be objects, land/real estate, or intellectual property. Determining ownership in law involves determining who has certain rights and duties over the property. These rights and duties, sometimes called a 'bundle of rights', can be separated and held by different parties. The question of ownership reaches back to the ancient philosophers, Plato and Aristotle, who held different opinions on the subject. Plato (428/427 BC 348/347 BC) thought private property created divisive inequalities, while Aristotle (384 BC 322 BC) thought private

property enabled people to receive the full benefit of their labor. Private property can circumvent what is now referred to as the tragedy of the commons problem, where people tend to degrade common property more than they do private property. Given a short-sighted owner, however, a private property system can make these tragedies worsefor example, a private owner of a piece of oil-rich property, depending on his worldview, might be more interested in short-term financial gain than incremental use with an eye toward other's concerns (e.g., those of future generations, the disenfranchised, etc.). While Aristotle justified the existence of private ownership, he left open questions of (1) how to allocate property between what is private and common and (2) how to allocate the private property within society.[1] Over the millennia, and across cultures what can be property and how it is regarded culturally have varied widely. Ownership is the basis for many other concepts that form the foundations of ancient and modern societies such as money, trade, debt, bankruptcy, the criminality of theft, and private vs. public property. Ownership is the key building block in the development of the capitalist socio-economic system. Adam Smith stated that one of the sacred laws of justice was to guard a person's property and possessions.[2] The process and mechanics of ownership are fairly complex: one can gain, transfer and lose ownership of property in a number of ways. To acquire property one can purchase it with money, trade it for other property, receive it as a gift, steal it, find it, make, it or homestead it. One can transfer or lose ownership of property by selling it for money, exchanging it for other property, giving it as a gift, being robbed of it, misplacing it, or having it stripped from one's ownership through legal means such as eviction, foreclosure, seizure, or taking. Ownership is selfpropagating in that the owner of any property will also own the economic benefits of that property. TYPES OF OWNERS IN PERSON Individuals may own property directly. In some societies only adult men may own property[citation needed] ; in other societies (such as the Haudenosaunee), property is matrilinear and passed on from mother to the offspring[citation needed]. In most societies both men and women can own property with no restrictions and limitations at all[citation needed].

Structured ownership entities

Throughout history[not specific enough to verify], nations (or governments) and religious organizations have owned property[citation needed]. These entities exist primarily for other purposes than to own or operate property, hence they may have no clear rules regarding the disposition of their property. To own and operate property, structures (often known today as legal entities) have been created in many societies throughout history. The differences in how they deal with members' rights is a key factor in determining their type. Each type has advantages and disadvantages derived from their means of recognizing or disregarding (rewarding or not), contributions of financial capital or personal effort.

Cooperatives, corporations, trusts, partnerships, condominium associations are only some of the many varied types of structured ownership; each type has many subtypes. Legal advantages or restrictions on various types of structured ownership have existed in many societies past and present. To govern how assets are to be used, shared or treated, rules and regulations may be legally imposed or internally adopted or decreed. LIABILITY FOR THE GROUP OR FOR OTHERS IN THE GROUP Ownership implies responsibility, for actions regarding the property. A "legal shield" is said to exist if the entity's legal liabilities do not get redistributed among the entity's owners or members. An application of this, to limit ownership risks, is to form a new entity to purchase, own and operate each property. Since the entity is separate and distinct from others, if a problem occurs which leads to a massive liability, the individual is protected from losing more than the value of that one property. Many other properties are protected, when owned by other distinct entities. In the loosest sense of group ownership, a lack of legal framework, rules and regulations may mean that group ownership of property places every member in a position of responsibility (liability) for the actions of each other member. A structured group duly constituted as an entity under law may still not protect members from being personally liable for each other's actions. Court decisions against the entity itself may give rise to unlimited personal liability for each and every member. An example of this situation is a professional partnership (e.g. law practice) in some jurisdictions. Thus, being a partner or owner in a group may give little advantage in terms of share ownership while producing a lot of risk to the partner, owner or participant. SHARING GAINS At the end of each financial year, accounting rules determine a surplus or profit, which may be retained inside the entity or distributed among owners according to the initial setup intent when the entity was created. For public corporations, common shareholders have no right to receive any of the profit. Entities with a member focus will give financial surplus back to members according to the volume of financial activity that the participating member generated for the entity. Examples of this are producer cooperatives, buyer cooperatives and participating whole life policyholders in both mutual and share-capital insurance companies. Entities with share voting rights that depend on financial capital distribute surplus among shareholders without regard to any other contribution to the entity. Depending on internal rules and regulations, certain classes of shares have the right to receive increases in financial "dividends" while other classes do not. After many years the increase over time is substantial if the business is profitable. Examples of this are common shares and preferred shares in private or publicly listed share capital corporations. Entities with a focus on providing service in perpetuam do not distribute financial surplus; they must retain it. It will then serve as a cushion against losses or as a means to finance growth activities. Examples of this are not-for-profit entities: they are allowed to make profits, but are

not permitted to give any of it back to members except by way of discounts in the future on new transactions. Depending on the charter at the foundation of the entity, and depending on the legal framework under which the entity was created, the form of ownership is determined once and for all time. To change it requires significant work in terms of communicating with stakeholders (memberowners, governments, etc.) and acquiring their approval. Whatever structural constraints or disadvantages exist at the creation thus remain an integral part of the entity. Common in for instance New York City, Hamburg and Berlin in Germany is a form of real estate ownership known as a cooperative (also co-operative or co-op, in German Wohnungsgenossenschaft apartment co-operative) which relies heavily on internal rules of operation instead of the legal framework governing condominium associations. These "co-ops", owning the building for the mutual benefit of its members, can ultimately perform most of the functions of a legally constituted condominium, i.e. restricting use appropriately and containing financial liabilities to within tolerable levels. To change their structure now that they are up and operating would require significant effort to achieve acceptance among members and various levels of government. SHARING USE The owning entity makes rules governing use of property; each property may comprise areas that are made available to any and every member of the group to use. When the group is the entire nation, the same principle is in effect whether the property is small (e.g. picnic rest stops along highways) or large such as national parks, highways, ports, and publicly owned buildings. Smaller examples of shared use include common areas such as lobbies, entrance hallways and passages to adjacent buildings. One disadvantage of communal ownership, known as the Tragedy of the Commons, occurs where unlimited unrestricted and unregulated access to a resource (e.g. pasture land) destroys the resource because of over-exploitation. The benefits of exploitation accrue to individuals immediately, while the costs of policing or enforcing appropriate use, and the losses dues to over exploitation, are distributed among many, and are only visible to these gradually. In an ideal communist nation the means of production of goods would be owned communally by all people of that nation; the original thinkers did not specify rules and regulations. OWNERSHIP MODELS

State ownership - Assets that a state or certain state agency has jurisdiction over in terms of use. o Government ownership - Assets belonging to a body of government. o Public property - Assets owned by a government or state that are available for public use to all their constituents. Personal ownership - Assets and property belonging to an individual, also known as individual ownership.

Common ownership - Assets and property that are held in common by all members of society (or non-ownership). o Communal ownership - Property held in common by a commune (see Communalism). Collective ownership - Assets and property that belong to a collective body of people who control their use and collect the proceeds of their operation. o Private ownership - A subset of collective property whereby a collective group of owners (such as shareholders) own productive property that is used by employees, usually for the purpose of generating a profit. o Cooperative ownership - Property that is owned by those who operate and use it. Also referred to as social ownership.

ORGANIZATIONAL PLAN PURPOSE

The component Organizational Plan allows your company to fully display and process its current organizational and reporting structures as well as to plan changes relevant to personnel, in the context of reengineering, for example. You can display and process organizational structures hierarchically or as a matrix. The design of Organizational Management allows you to display organizational units, positions and their holders and tasks in an organizational plan and to process them according to your requirements. This gives you an overview of the current status of your organizational and reporting structures and enables you to report on historical data at any time. In addition, you can plan and model future scenarios. For more detailed information on the basics of Organizational Management, refer to Organizational Management.

IMPLEMENTATION CONSIDERATIONS
If you want to display and model your organizational plan using the Organizational Plan component, you must be: well-acquainted with the organizational structure at your company, and how the different areas work together aware of all of the different types, or categories, of jobs performed at your company Jobs are fields of work or functions, head of department or secretary, for example and are the basis for describing positions ( head of sales department, for example). The areas of work and functions, in contrast to their positions, only appear once in a company. aware of how many individual positions fall within the different job categories you have identified.

PLANNING AHEAD
If you are using tasks to describe jobs or positions, you must: develop easily recognizable descriptions

Identify any groups of tasks that are routinely performed together, so that you can catalog them as a group

If your organizational plan includes the work centers, you must determine the restrictions or prerequisites for them, for example, a medical examination required for a particular work center. To do this, use the infotype Restrictions (1006) in Detail Maintenance.

INTEGRATION
The component Organizational Plan is an integrated part of Organizational Management and is a planning and modeling tool for the creation of company specific organizational plans. The component Structural Graphics is also an integrated part of Organizational Management and is a tool for displaying and editing and an extension of the Simple and Detail Maintenance tools. The information stored in the organizational plan on organizational and reporting structures provide a basis for the use of other Personnel Planning and Development components such as Personnel Cost Planning, Compensation Management, Training and Event Management and SAP Business Workflow