Principles of Marketing Fall 2013

Lecture Slides 2

Instructor : RAZA ILLAHE

Lahore Leads University

Strategic Planning

Annual plan—A short-term plan that describes the company’s current situation, its objectives, the strategy and budgets for the year ahead.

Strategic Planning – The process of developing and maintaining strategies to maximize the capabilities of organizations to achieve the objective in the changing marketing environment.

Normally ,long term (for 3-5 years or even more).

Mission

A Mission is a statement of organisation’s purpose – what it wants to achieve in the wider environment.

Mission Statement Normally tells ….

What is our business?

What are our customers?

If we work for profit or not?

Marketing Environment

The organization's marketing environment is made up of:

1. The internal environment e.g. staff , office technology, wages and finance, etc.

2. The micro-environment e.g. , agents and distributors, suppliers, our competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors..

The Planning Process

1. Situational Analysis

2. Objectives

3. Strategy

4. Action Plans

5. Control

Feedback

Marketing Audit

 It is recommended to do Marketing Audit at various stages.

It is an examination of a company’s environment, strategiesand activities to understand problems and opportunities.

Under findings of a marketing audit, a plan of action is recommended to improve company’s marketing performance.

PEST ANALYS

PEST Analysis is the scan of external macro environment of an organisation.

PEST is abbreviation of

POLITICAL & LEGAL,

ECONOMIC ,

SOCIAL ,

TECHNOLOGICAL

We learn about all these above mentioned factors in order to understand the environment where an organisation operates.

Following Slides will present example of a generic PEST Analysis.

PEST ANALYSIS

1. Political and Legal Monetary policies Social legislation & regulations Government relationship with industries Legislation special related to marketing Employment Laws Government Stability And similar factors.

PEST ANALYSIS

2. Economic Business cycles marked by recessions &

booms Gross domestic product (GDP) Real income Inflation Interest rates Seasonal Variations

PEST ANALYSIS

3.Social & Cultural Change in consumption pattern Difference in life style Two income families Changing gender roles Health & environmental issues Religious Events

PEST ANALYSIS

4.Technological Computer/internet usage E-commerce Change in lifestyle Research Funding Consumer Buying Global Communications Competition in Development of Technology

With the help of PEST Analysis we try to understand that how these external factors are affecting the organisation and can affect in coming future.