entrepreneurship & commerce in it - 04 - marketing plan, marketing 7 p's, stp, segmenting,...

Entrepreneurship & Commerce in IT

04

Sachintha Gunasena MBCS http://lk.linkedin.com/in/sachinthadtg

Marketing Planning Process

where are we where are we nownow

where do we where do we want to gowant to go

did we get did we get therethere

how do we how do we ensure ensure arrivalarrival

how do we how do we get thereget there

Where do we want to go?

Sales & Marketing Objectives

• SWOT will enable the marketer to determine the overall objectives.

• Objectives will gives a clear sense of direction (where we should go)

• Objectives will help to stimulate effort of individuals to achieve targets because it gives direction and focus

• Objectives will provide the basis for control in an organisation. Unless we know precisely what is required, it is difficult to know the extent to which we have achieved.

Objectives• S M A R T

• Specific

• What need of the market that the company is going to serve. Sales targets - Sales volume, units, share of the market to catch etc.

• Measurable

• Quantified - e.g. 50 million, 25% of the market share etc.

• Achievable

• It should be realistic

Objectives cont.d• Relevant

• It should be in line with the corporate objective

• Time frame

• Deadlines and periods for achieving objectives should be stated. e.g. within 6 months etc.

Sales Objectives• Proper sales forecast has to be made before sales objectives are made. There are many methods available to forecast sales.

• E.g. Sales Composite method, Jury method, exponential smoothing, moving average other mathematical methods etc.

• E.g. Sales objective of a firm of branded luxury clothing could be “To increase sales by 10% from MVR 2 million within twelve months ”

• Sales objectives lead to set marketing objectives.

Marketing Objectives

• describes the expected behavior of the target market (customers) required to reach sales objectives.

• One could even use the Ansoffs Matrix to develop marketing objectives to grow sales.

Marketing Objective can be

• retention of current customers

• increasing purchases of current customers

• trail purchases from new customers

• repeat purchases from new customers

• even be blocking competition, developing a new market.

Importance of Marketing Objectives

• Setting marketing objectives are important since they often shed light on underlying conditions and circumstances facing the firm that are not easily seen within financial measures

• The marketing objectives will indicate targets to be achieved across several marketing decision areas.

How do we get there?

Marketing Strategy• Entails how an individual marketing objective will be reached.

• While the Sales and Marketing Objectives are SMART, marketing strategies are descriptive.

• They go into detail how objectives are achieved.

Marketing Strategies

• Target Marketing Strategies

• Tactical Marketing Mix Tools

Target Marketing Strategies

• STP

• Segmenting

• Targeting

• Positioning

Segmentation & Evaluation of Markets

• A large identifiable group of customers within a market with similar needs and wants, purchasing power, geographical location, buying attitudes or buying habits.

• If all are having the same need then it could be considered as the mass market.

• If each and every body’s need is separately identified and served it is called Mass Customization.

Market Segmentation

• Grouping customers with similar needs and serving them with the appropriate product proposition

• Segmentation is something between the Mass Marketing and Mass Customisation.

• Not about serving the whole market with one product or serving every individual with a different product.

• A firm has to segment the market before it targets which market it should enter.

Selecting the Target Market

• Selecting what market or market segments that you are going to serve with what product or products.

• It could be:

• single segment

• selective segments

• product specialisation

• full market coverage

Positioning the Product

• Try to get a special place in the mind set of the collective customers of the desired market.

• It could provide a direction to development of marketing strategies and using specific tactical marketing mix tools in achieving the expected positioning in the consumers of the market place.

Tactical Marketing Mix Tools

• Marketing objectives are achieved through use of Tactical Marketing Mix Tools.

• It could suit the selected target market and the positioning to be done.

• The firm can also use the stages of Product Life Cycle and use the marketing mix tools to suit the situation.

Tactical Marketing Mix

• Product

• Price

• Place

• Promotion

• Process

• People

• Physical evidence

Developing the Marketing Budget

• Budget is a statement that enumerates how much of funds required to implement the marketing plan and how much of income it would generate.

• It will detail various expenses under different headings.

• It will also give the income, expenses and the profits in summary format and refer the details to notes of the budget.

• Further it could provide other management information ratios such as Return on Investment, Pay Back Period, Financial Ratios etc.

BudgetsDescription Notes Year 1 Year 2 Year 3Sales units 1Sales amount 2

Manufacturing cost 3

Administrative cost 4

Distribution cost 5

Financial cost 6

Other cost 7

Net profit 8Tax 9ROI 10

Break even point 11

Budgets cont.d

• Different budgetary allocations to be made on different headings of expenses that would incur in the process of achieving forecasted sales and other objectives

How do we ensure arrival?

Execution• Once the Marketing plan is developed, execution of it should happen.

• The execution may include specific details about who is responsible for different activities and when will it take place.

• It could be listed on an action plan or a calendar of events.

Action Plans• Who Does What and When?

Activity Responsible Budget Jan Feb Mar

Market Analysis Sam 25000 x

New Ads Tom 75000 x

New Brand Name Jerry 150000 x

Did we get there?

Evaluation

• identifies what really was done while controlling involves evaluating the results with expected Key Performance Indicators and taking remedial actions without delay to ensure that the plan is on track and deviations are minimized or eliminated

Marketing Control Process

• Marketing controls are important to ensure that the set marketing plans are carried out as planned.

• Important:

• Proper implementation of the plans

• Set Key Performance indicators

• Deviations could be detected

• Necessary corrective actions could be taken

• Proactive rather than reactive

• Compare and contrast with budgets

Marketing Control Process

Marketing Marketing StrategyStrategy

Annual Marketing Annual Marketing PlanPlan

ImplementationImplementation

Evaluation: Evaluation: Collect Actual Collect Actual Data and Compare Data and Compare

with Planwith Plan

If Deviations are If Deviations are Found, Make Found, Make AdjustmentsAdjustments

Marketing Control Process

DeviationDeviation

Marketing PlanMarketing Plan• ObjectivesObjectives• StrategiesStrategies

• Action PlansAction Plans

Set Performance Set Performance IndicatorsIndicators

Collect Collect Performance Performance DetailsDetails

Compare Compare PerformancesPerformancesNoNo

YesYesContinueContinue

Corrective ActionCorrective Action

Activity

• Create a marketing plan for the business you selected in the previous activity.

Next Up…

• Technology and Marketing

• Organisational & Financial Plan

Thank you.

Sachintha Gunasena MBCS http://lk.linkedin.com/in/sachinthadtg