marketing planning process
TRANSCRIPT
Marketing Planning Process
Prepared By:Ashish Manchanda (07337)Binita Vaidya (07340)MBA - Term IIKUSOM
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The Planning ProcessSteps in the Planning Process
Planning at different levels of an organizationCorporate & Division Strategic PlanningBusiness Unit Strategic PlanningProduct Planning
The Planning Process Market-oriented strategic panning is a managerial
process of maintaining a viable fit between the organization’s objectives, skills & resources and its changing market environment.
Marketing planning is the process by which businesses analyse the environment and their capabilities, decide upon courses of marketing action and implement those decisions.
Marketing planning provides the framework for implementing a market orientation
Steps in the Planning Process Analyzing Market Opportunities
Market Information Services Marketing Environment Consumer Markets Anticipating Competitors
Developing Marketing Strategies Positioning
Planning Marketing Programs Allocation of funds
Managing the Marketing Effort Feedback and Control
Planning at Different Levels of an Organization
Corporate Planning
Division Planning
Business Unit Planning
Product Planning
Organizing
Implementing
Measuring Results
Diagnosing Results
Taking Corrective
Action
Planning Implementing Controlling
Corporate & Division Strategic Planning
Corporate Strategic plan is a framework within which division and business units prepare their plans.
Corporate & Division strategic plan entails following four activities: Defining the corporate mission Establishing the strategic business units Assigning resources to each SBU Assessing growth opportunities
Defining the Corporate Mission
Mission: Purpose of existence of a business
Mission Statement: Mission defined ; shared with the managers, employees & customers.
Provides direction to the company
Reflects the vision of its future
Should focus on limited number of goals
Defines the major competitive spheres within which the company will operate
Defining the Business A business must be defined in terms of
needs and not products.
Company Product Definition Market Definition
Missouri-Pacific Railroad
We run a railroad. We are a people-and-goods mover.
Xerox We make copying equipment.
We help improve office productivity.
Standard Oil We sell gasoline. We supply energy.
Colombia Pictures
We make movies. We market entertainment.
Establishing Strategic Business Units
Purpose is to develop separate strategies for each SBU and assign appropriate resources
An SBU has three characteristics: Single business or a collection of related
businesses that can be planned separately from rest of the company
Has its own set of competitors Has a manager who is responsible for strategic
planning & profit performance
Assessing Growth Opportunities
Planning new businesses
Downsizing or terminating the old ones which are no longer profitable
Desired sales Vs Projected Sales Intensive Growth Integrative GrowthDiversification Growth
Intensive Growth
Identifying opportunities to achieve further growth within the current business.
Current Products
New Products
Current Markets
1. Market-Penetration Strategy
3. Product-Development Strategy
New Markets
2. Market-Development Strategy
(Diversification Strategy)
Intensive Growth
Market-Penetration Strategy Encourage current customers to buy more Attract competitor’s customers Attract non-users
Market-Development Strategy Expand to new markets Have additional distribution channels Sell in new locations
Product-Development Strategy Add new features
Integrative Growth
Backward Integration:Company acquiring or partnering with one or more of its suppliers
Forward Integration:Company acquiring or partnering with one or more of its distributors
Horizontal Integration:Company acquiring or partnering with one or more of its competitors
Diversification Growth Makes sense when good opportunities are found
outside the present business
Concentric Strategy:New products with technological or marketing synergies with the current product line
Horizontal Strategy:New products that would appeal to the current customers
Conglomerate Strategy:New products that have no relation to the current technology or markets
Business Unit Strategic Planning
Business
Mission
SWOT Analy
sis
Goal Formulat
ion
Strategy Formulat
ion
Program Formulat
ion
Implementation
Feedback &
Control
Business Statement
The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission.
We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxing yet refined ambiance.
The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.
Goal Formulation
Goals are very specific with respect to magnitude and time.
They must be arranged hierarchically from most to the least important.
Objectives should be stated quantitatively whenever possible.
They should be realistic and consistent.
Managers should be well aware of the trade-offs.
Strategy Formulation
Goal indicates what a business unit wants to achieve; strategy is a game plan to get there.
Porter’s Generic Strategies
Strategic Alliances Companies form strategic partners to become more
effective. Different types of strategic alliances
Product or service alliances Promotional alliances Logistics alliances Pricing collaborations
Program Formulation & Implementation
Detailed programs should be worked out that support the principle strategies.
When implementing strategy,
companies must consider its multiple stakeholders – consumers, employees, suppliers, distributors.
Product Planning Each product level must develop a marketing plan for
achieving its goals.
Marketing plan for individual products are developed within the plans set by levels above them.
Marketing plan is one of the most important outputs of the marketing process.
It contains tactical guidelines for the marketing programs & financial allocations over the planning period.
Since it is a customer and competitor oriented this has to be a continuous process.
Questions?