Strategic Planning & marketing planning

Description
Describes about strategic planning process and star marketing strategies.

PLANNING PROCESS
STRATEGIC PLAN: It defines the tgt market and the value propositions that will be offered to customer.

TACTICAL PLAN: It specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels and service.

PLANNING
Corporate Planning

IMPLEMENTING
Organizing

CONTROLLING
Measuring results

Division Planning

Implementing

Diagnosing results.

Business Planning

Taking Corrective actions.

Product Planning

Demand Condition

Market Segment Analysis

Industry Analysis

Competition Analysis

Trade Analysis

MARKET OPPORTUNITY
a. Size of the market

b. How well the market is served

c.

Any niches?

d. Marketing mix required to succeed e. Core competencies required

The Strategic Planning Process

Organizational portfolio plan
Organizations at a particular time are a portfolio of businesses that is, product lines, divisions, schools Management must decide which businesses to build, maintain, or eliminate, or which new businesses to add. Organizations can create strategic business units (SBU) which could be a single product, product line, or division. SBU must have the following three characteristics: It should be a single business of collection of related business that can be planned independent of the rest of firm. It has its own set of competitors. It is headed by a manager who is accountable for strategic Planning and profit generation.

Portfolio Model

Mkt Growth

Boston Consultancy Group (BCG) Matrix

Star Marketing Strategies

Existing Uses P R O D U C T New Users

1. Entrenchment 2. Switching to Intermediaries 3. Mandatory consumption

4. 5.

Going international Broadening product horizons

6. 7.

New applications New situations

8. 9.

Repositioning Redefining markets

Existing Market MARKET

New Markets

Product – Market Selection

Key issues that need to be addressed

• What markets should be served?
• What form should the product take?

• What should the product offer for use?
• For whom is the product most important?

Product /Market Choices
Horizontal Markets or Horizontal Diversification: a) Firm’s assessment of its strengths and weaknesses

b)
c) d)

Market potential in the target market, or size of the target market
Intensity of rivalry in the selected product-market Entry and exit barriers in the selected industry

e)

Value addition by manufacturers or conversely how low is the ratio of the cost of materials and purchased parts to the selling price

Vertical Product Market Choices

Ask the following questions before deciding on this strategy
1. 2. Is there a possibility that market development may get absorbed by poor product quality or by product misuse? At what points in the manufacturing chain do quality risks exist?

3.

Can the company minimize these risks by taking the responsibility for that step in manufacturing process?

Strategic Planning Process
Situation Audit (Where are we? How did we reach here? Who have been our major competitors? Their strategies?) Analysis of firm’s strengths and weakness What are the key facilitators or hindrances in our situation

Objective Setting Market share? ROI? Sales turnover?

Develop and evaluate strategy options

Strategy decision

Implementation PIMS (Profit Impact of Marketing Strategies)

BUSINESS UNIT STRATEGIC PLANNING
External Environment (MACRO & MICRO) (Opportunity & Threat)

Business Mission

Goal Strategy

Programme Implementation

Internal Environment (Strength & Weakness)

Feedback & Control

Strategic planning and marketing planning

A Market plan carries:
Situation Analysis Market Summary Target market Market Strategy a) Mission b) Marketing objectives

Market Demographics
Behavior factors Market needs Market Trends Market Growth SWOT Analysis Competition

c) Financial objective
d) Target objective e) Target markets f) Positioning g) Strategy h) Marketing Mix i) Market research

Product offering
Keys to success Critical Issues

j) Financials Breakeven Analysis
Sales forecast Expense forecast control Implementation



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