Marketing Planning

Guided By Prof. Rakesh ShiraseMBA-I

Vishal Patel | Drashti Shah | Jyotsana Iyer | Shruti Kumari | Pappu Kumar

What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

Porter’s Value Chain

Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of

markets Difficult to imitate

What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort.

It operates at a strategic and tactical level.

Levels of a Marketing Plan

Strategic Target marketing

decisions Value proposition Analysis of

marketing opportunities

Tactical Product features Promotion Merchandising Pricing Sales channels Service

The Strategic Planning, Implementation, and Control Processes

Corporate And Division Strategic Planning

Defining the corporate mission Establishing strategic business units Assigning resources to each SBU Assessing growth opportunities

Defining the corporate mission

Mission statement includes the mission of an organization which it needs to achieve through careful marketing research by carefully analyzing the needs and wants of customer and providing him with the same.

Good Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful

Sample Mission Statements

MARRIOTT’S Mission Statement:We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value

Cont.

Biocon“To be an integrated biotechnology enterprise of global distinction.”

Infosys Technologies Limited“To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large.”

It is a single business or collection of related businesses

It has its own set of competitors

It has a leader responsible for strategic planning and profitability

Establish strategic business units (SBUs)

Characteristics of SBUs

Product Orientation vs. Market Orientation

Company Product MarketMissouri-Pacific

RailroadWe run a railroad We are a people-

and-goods mover

Xerox We make copying equipment

We improve office productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain people

Assign resources to each SBU

The Strategic Planning Gap

Assess growth opportunities

Ansoff’s Product-Market Expansion Grid

The Business Unit Strategic Planning Process

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT AnalysisINTERNAL FACTORS

past and presentEXTERNAL FACTORS

past and present ACTION

STRENGTHSBuild on them,Emphasise in promotional campaigns

OPPORTUNITIESExploit them if possible

Need to be identified and researched via environmental scanning and analysis

WEAKNESSESEliminate them if possible,Circumvent them

THREATSDevelop contingency plans Must be addressed by

Marketing Plan decisions

Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunity be articulated convincingly to a defined target market?

Can the target market be located and reached with cost-effective media and trade channels?

Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

MOA (cont.)

Can the company deliver the benefits better than any actual or potential competitors?

Will the financial rate of return meet or exceed the company’s required threshold for investment?

Goal Formulation

Hierarchically arranged from the most to the least important.

Quantitative objectives whenever possible

Objectives should be realistic Objectives must be consistent

Strategic Formulation

Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

Feedback And Control

Measures include:

•Performance measurements•Evaluation mechanisms•Feedback mechanisms•Contingency planning•Budgets / profit & loss

Problems with Planning

Companies become obsessed with the process or technique rather than the actual content and delivery of the plan!!

Unreliable or insufficient market research data can make plans flawed from beginning!

New companies too busy?

Small companies not important/ no skills/ restrictive?

Mature companies Unnecessary / cumbersome?

Fast changing markets not useful / responsive?

However all organisations should plan!

Problems with Planning (Cont.)

Marketing Planning is Essential ...

Conflicting pressures make choices difficult

Enhancing customer service

Short-term profit

Revenue maximisation Cost minimisation

Long-term value creation

Increasing profitabilityVs.

Vs.

Vs.

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

Marketing Plan should consist :

Conclusion

Thank you