Marketing Planning Process
- 1. Marketing Planning Process Prepared By: Ashish Manchanda (07337) Binita Vaidya (07340) MBA - Term II KUSOM
- 2. Preview The Planning Process Steps in the Planning Process Planning at different levels of an organization Corporate & Division Strategic Planning Business Unit Strategic Planning Product Planning
- 3. 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
- 4. 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
- 5. 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
- 6. 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
- 7. 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
- 8. 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.
- 9. 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
- 10. 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 Growth Diversification Growth
- 11. 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)
- 12. 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
- 13. 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
- 14. 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
- 15. Business Unit Strategic Planning Business Mission SWOT Analysis Goal Formulation Strategy Formulation Program Formulation Implementation Feedback & Control
- 16. 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.
- 17. 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.
- 18. 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
- 19. 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.
- 20. 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.
- 21. Questions?