Marketing Planning & Strategy

- Presented by Pranit Khot MMS - Marketing IMCOST,Thane

What Is A Marketing Planing?

A marketing planing is an outline of price, date and quantity objectives used to generate a reasonable return for the business given the existing market conditions.

What is Strategic Planning?

It is the managerial process that helps to develop a strategic and viable fit between the firms objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.

Why do we need to Strategize

Finite resources Uncertainty about competitive strengths Irreversible commitment of resources Coordinated decisions Uncertainty about control of initiative

Elements of Marketing Strategy Formulation

How to go about it?

Defining the corporate mission Establishing SBUs Allocating resources for SBUs Planning for new business

Strategic Planning Process

Strategic Planning

Mission statements should . . .

serve as a guide for what the organization wants to accomplish. be market-oriented rather than productoriented. be neither too narrow, nor too broad. fit with the market environment. be motivating.

Business Portfolio Design

Identify strategic business units (SBUs) Assess each SBU:

The BCG growth-share matrix classifies SBUs into one of four categories using:
Market growth rate The SBUs relative market share within the market.

BCG COMPANYS MARKET SHARE MATRIX High Low

INDUSTRY GROWTH RATE

High

Stars

Question marks

Low

Cash cows

Dogs

Product / Market Expansion Grid

On the basis of BCG Matrix & Expansion Grid.

Determine the future role of each SBU and choose the appropriate resource allocation strategy:

Build Hold Harvest Divest

SBUs change positions over time

5 questions that the firm must ask itself

What is our business? Who is our customer? What does our customer need? What will our business be? What should our business be?

Marketing Myopia

Industry is a customer satisfying process not a goods producing process. It is important therefore how you redefine your business.

Building a Strategic Marketing Plan

Strategic Marketing Planning

1.
2. 3.

4.
5. 6.

Environmental Analysis (SWOT) Identifying Customers Competitor/Value Creation Analysis Marketing Mix: The 4 Ps Financial Analysis and Budget Implementation and Control Plan

1) Know Your Marketplace

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Trends and changes:

Market analysis
Segmentation Prioritizing target markets

2) Who Are Your Customers?

Customers vs. Consumers

Consumer: firm or person that eventually uses your product

Customer: firm or person that buys your product

Know What Is Important to Your Customer ?

Get inside the mind of your customers Find out why they would buy from you or why they would not.. Truly understand their needs Intentional listening Customer analysis Solve their problems

3) Competitor/Value Creation Analysis

Make sure you are distinctively different from your competition in areas of importance to your customers :

Competitive analysis

Reallocation of resources, if necessary Positioning

The Value Chain

Firm Infrastructure

Supporting Activities

Human Resource Management Technological Development Procurement

Inbound Operations Logistics

Outbound Marketing Service Logistics & Sales

Relationship with Suppliers

Relationship with Buyers

4) Determining the Marketing Mix

The

set of controllable variables that will accomplish the marketing objectives:

1)

2)
3) 4)

Product strategy Place (distribution) strategy Promotion (communication) strategy Pricing strategy

Example : McDonalds
Simple yet tasty Food items Fast service Ads based on : - Fun for the kids - Variety, gifts etc. Consistent product pricing

5) Financial Analysis & Budgeting

Estimate the demand for given pricing and promotion strategy. Determine expenses associated with production and marketing. Determine anticipated cash flows. What are the critical assumptions of the financial analysis and what are the impacts of changes in those assumptions?

6) Implementation and Control

Focused attention of everyone on delivering what the customer wants :

Management of people Monitoring and control

Problems in Strategic Marketing

Too much emphasis on

where to compete

Too little emphasis on

how to compete when to compete adaptability uniqueness

Implementation: Common Problems

Simplify marketing strategies More focus on uniqueness and adaptability Improve speed and flexibility

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Thank you