session 7 marketing planning

8/9/2019 Session 7 Marketing Planning

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Marketing Planning

Surveying the environment

Internal appraisal of the firm

Setting the marketing objectives

Developing the functional plans of marketing

Developing the marketing strategy



Surveying the Environment

Analysing the environment and spotting the opport unities

and threats.

Pinpointing and short listing the opport unities act ually

available. Analysing the market / c ustomer.

Analysing the ind ustry and competition.



I nternal Appraisal

Opport unities ±Threat Profile

Macro environmental factors:

Political Environment

S ocial Environment

Economic Environment

Technology Environment

Nat ural Environment

Legal Environment

Environmental factors specific to the ind ustry:Consumer/Demand

I nd ustry/Competition

Technology



I nternal appraisal

Analysing the strengths and weaknesses of the unit.

Assessing the health and stat us of the different prod uct lines

/ prod ucts / brands.

Assessing the competitive advantages and corecompetencies of the firm and examining the one¶s that are

usef ul to the unit.



S trengths and Weakness of the Unit

Marketing

Finance

Manufact uring/Operations

Research and Development

H uman Resources

I mage of the Unit




Marketing: Marketing standing

Market S hare

I nnovation in Marketing,

C ustomer satisfaction level

C ustomer service level

New prod uct capability

Pricing Channel position

Marketing communications on the whole

Advertising

S ales promotion

Personal selling

Market research capability Marketing organization

Marketing costs

Prod uct Mix and Prod uct Lines




Finance:

Assets

Liquidity

Leverage

Cash flow

Cost of capital

Profitability

Costs

Quality of financial management

Knowledge and dynamism in tax planning

Overall resource position




Manurfact uring/Operations:

S ize or capacity of prod uctionLocational advantage

Prod uction facilities

Post-prod uction facilities

Capacity Utilization

Raw materials ± their cost, quality and delivery

Maintenance

Cost of Prod uction

Break-even position

Prod uctivity

I nventory Management

Val ue engineering capability Experience c urve benefit

Flexibility

Automation




R & D:

Nat ure, depth and quality of R&D cpability

Resource allocation for R&D

Qu

ality, expertise and experience of R&D personnel S peed of R&D

Capability for engineering prod ucts based on R&D

Record of patents generated

Comparisons of R&D investment vs new prod u

cts lau

nched




H uman Resource:

Quality, Knowledge, expertise and experience of personnel

Morale and motivation of personnel

Personnel t u

rnover Labour costs

I nd ustrial relations



S trengths and Weakness in marketingOverall market growth

Firm¶s Market S hare

Competitors shares

Firm¶s Prod uction Capacity in relation to market potential

Lifecycle stage of the various prod ucts

Brand equity

Prod uct quality/sophistication/technology

S ynergy in the prod uct-mix

C ustomer perception/c ustomer satisfaction level Profitability, prices and margins vis-à-vis competition

Marketing capability overall



S etting the marketing objectives to the unit Deciding which of the spotted opport unities should be

pursued considering the unit¶s capabilities and limitations.

Pinpointing the areas in which marketing objectives have to

be set. (eg. S ales vol ume, profits, market share)

Assessing the c urrent performance in the key areas.

S etting measurable, clear-c ut and clear objectives in each key

area.

S etting the objectives for each prod uct/ market.



S ETT I NG CORPORATE OBJECT I VE S

Growth in investment, assets, revenue, profits

Market S hare and Competitive Position

Resource utilization, cost-savings Adoption of new technology, modernization, innovation.

Ret urn on I nvestment, Ret urn on net worth



FORMULAT I NG THE CORPORATE S TRATEGY

The S trategy provides the design for achieving objective.

Prod uct-market scope, growth vector, competitive advantage

and synergy are the constit uents of corporate strategy.



Corporate Objectives of I TC :

I ncome should double from the present level of 6000 crore

per annum.

Ret urn on Net Worth should reach 22 percent.Forex earnings in the coming 5 years should be double that

of c urrent 5 years of U S$ 1100 million.



Prod uct Market S cope:

Tobacco and cigarettes

Hotel and tourism

Packaging and printingPaper and Paperboards etc. I n all these businesses national

market and foreign market.



Growth vector:

Expansion of cigarettes unit through intensification and

integration.

Expansion in hotel businesses mainly through acquisitionand alliances.

Divestment of troubled businesses like agri-business,

financial business



Competitive Advantage and synergy:

I n cigarettes:S trength in tobacco farming

S trong brands

60 percent market share.

I n hotel and tourism:

S heraton connection

Used to strengthen the Welcomgrou p Chain.

More than 60 percent of Welcomgrou p t urnover is in forex.



Developing the detailed f unctional plans of marketingS trategy

Prod uct plan/Prod uction Plan

S ales forecast/ S ales plan

Physical distribution plan

Channel plan

Advertising and sales promotion plan

S ales force plan

S ales organisation plan.



Developing the marketing S trategy

1. S electing the target market

S t udying the c ustomer, his buying motives and buying

behaviour.

S egmentation of the market using relevant bases.

Eval uating each of the segments.

S electing the appropriate segments as the target market.

2. Deciding the positioning S trategy

3. Developing the marketing S trategy

Deciding the approach in respect of each of the four P¶s.

Deciding the relative weightage to be assigned to each of

them.

session 7 marketing planning

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