Marketing Planning Process

Marketing Planning Process

Prepared By:Ashish Manchanda (07337)Binita Vaidya (07340)MBA - Term IIKUSOM

Preview

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?