tb assess wk 2 business planning

7/31/2019 TB Assess Wk 2 Business Planning

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Business Planning:

Compose the Big Picture

Business Planning:

Ongoing process of making decisions

that guide the firm both in the shortterm and for the long term

Identifies/builds on firms strengths

Helps managers make informed decisions

Develops objectives before action is taken


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Ethics and Marketing Planning

Unethical marketing decisions damage the

firm, society, and various stakeholders

Business ethics:

Rules of conduct for an organization

Code of ethics (code of conduct):

Written standards of behaviour to which everyone

in the organization must subscribe

How to Write a Code of Ethics


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Three Levels of Business Planning


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SBUs and the Strategic Plan


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Level 1- Strategic Planning

Match firms resources and capabilitiesto market opportunities for long-termgrowth and survival

Top management defines firms purpose andobjectives

Example: increase firms total revenues by20% over next five years

Strategic Business Units (SBUs) Self-contained divisions

P&L (Profit-and-loss) responsibility


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Level 2 - Functional Planning

Accomplished by various functional

areas of firm, such as marketing

Typically includes:A broad 5-year plan to support strategic plan

A detailed annual plan

Example: marketing plan objective: to gain a

40% share of a particular market with threenew products during coming year


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Level 3 - Operational Planning

First-line managers focus on day-to-

day execution of functional plans

Such planning includes detailedannual, semiannual, or quarterly plans

Example:an objective may be set in terms of

units of a product a particular salesperson

needs to sell per month (sales quota)


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All Business Planning

Is an Integrated Activity Strategic, functional, and operational

plans must work together to benefit the

whole firm Marketers must fully understand how

they fit with the organizations

direction and resources


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Level 1 - Strategic Planning:

Frame the Picture Very large multiproduct firms may have

divisions called strategic business units(SBUs)

SBUs operate like separate businesses with theirown mission, business objectives, resources,managers, and competitors

Strategic planning is done at both thecorporate and SBU levels

For a small company/organization, strategicplanning is done for the company as a whole


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Strategic Planning Step 1:

Define the Mission Answer three key questions:

What business are we in?

What customers should we serve?

How do we develop firms capabilities andfocus its efforts?

Mission statement:

A formal document that describes the firmsoverall purpose and what it hopes to achievein terms of its customers, products, andresources


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Mission should not be too broad, too

narrow/ shortsighted

Marketing Myopia : defining the mission toonarrowly in terms of a specific product

offering

Better to define the mission in terms of what

customer needs are satisfied


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Step 2: Evaluate the Internal

and External Environments Situational analysis (business review)

An assessment of a firms internal and

external environments Internal environment: Controllable elements

inside of an organization

External environment:Uncontrollable

elements outside of an organization that mayaffect its performance either

positively or negatively


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Internal Environment

Controllable elements inside a firm thatinfluence how well the firm operates include: People (human capital),

physical facilities,

financial stability,

corporate reputation,

quality products,

strong brands,

technologies, etc.

These elements represent key strengths andweaknessesof the firm


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External Environment

(See supporting detail in Ch. 3!) Elements outside the firm that may

affect it either positively or negatively:

Economic, competitive, technological,legal/political/ethical, regulatory, and

sociocultural trends

Trends manifest as opportunities or threats

Firm cannot directly control external factorsbut can respond to them via planningVisitTrendwatching.com


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Trends Present Opportunities

Recent sociocultural trends influencing food marketingstem from consumer desires for low fat,low carb, and organic foods


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SWOT Analysis

An analysis of an organizations

strengths (S) and weaknesses (W) and

the opportunities (O) and threats (T) inthe external environment

SWOT enables the firm to develop

strategies that maximize strengths and

capitalize upon opportunities


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Step 3:Set Organizational or SBU

Objectives

Organizational/SBU Objectives:

What the firm hopes to accomplish with long-

range business plan

Need to be specific, measurable,

attainable, and sustainable

May relate to sales, profitability, product

development, market share, productivity,ROI, customer satisfaction, or

social responsibility


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Step 4: Establish the Business Portfolio

Business portfolio:

The group of different products or brandsowned by a firm and having different income-

generating and growth capabilities

Portfolio analysis:

Assessing the potential of a firms SBUs

Helps make decisions regarding which SBUs

should receive more or less ofthe firms resources


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Boston Consulting Group (BCG) Matrix


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Step 5: Develop Growth Strategies

Figure 2-4 - Product-Market Growth Matrix

Ansoff


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Functional (Marketing) Planning:

Accomplished by various functional areas offirm

Typically includes a broad 5-year plan tosupport strategic plan and a detailed annualplan

In this class (Marketing), we will focus on themarketing plan (see chapter pull out)

Step 1: Perform a situation analysis Builds on SWOT; identifies how environmental

trends/external environment (ch. 3) affect themarketing plan


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Marketing Planning: Step 2

Set marketing objectives

Specific to the firms brands and other marketing

mix-related elements

States what the marketing function must

accomplish if firm is to achieve its overall

business objectives


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Marketing Planning: Step 3

Develop marketing strategies to

achieve marketing objectives

Select target market(s) where the firmsofferings are best suited

Develop marketing mix strategies:

Marketing mix strategies: how marketing will

accomplish its objectives in the firms target

market by using product, price, promotion,and place (distribution)


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Marketing Mix Strategies

Product strategies:

Include product design, packaging, branding,

support services, and product variations and

features

Pricing strategies:

Include setting prices for final consumers,

wholesalers, and retailers based on costs,demand, or competitors prices


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Marketing Mix Strategies

Promotion strategies:

Advertising, sales promotion, public relations,

direct marketing, personal selling

Distribution (place) strategies:

How, when, and where the product is

available to targeted customers


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Step 4: Implement and Control

the Marketing Plan Control:

Measuring actual performance, comparing

performance to the objectives, making

adjustments

Marketing metrics:

Return on marketing investment (ROMI)


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Creating and Working with

a Marketing Plan Operational plans focus on the day-to-

day execution of the marketing plan


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Corporate Culture

A firms corporate culturedetermines much of itsinternal environmentthe

values, norms, and beliefsthat influence everyone inthe firm

i.e., The way employeesdress reflects theirorganizations corporate

culture.


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Reading for Next Week

Marketing Research

tb assess wk 2 business planning

Documents