Description
This is a presentation explaining Strategic planning .
STRATEGIC PANNING B
?
Marketing Mix Marketing Plans
?
?
Necessity of Planning ,Control & Implementation
Tools & Techniques
?
MARKETING MIX
?
?
Marketing Mix is defined as a set of marketing tools that a firm uses to pursue its marketing objectives in the target market. It is generally accepted as the use and specification of the four P’s describing the strategic position of a product in the Marketplace.
CONCEPT
?
? ? ? ?
Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are Price Place Product Promotion.
The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!
PRICE
?
Pricing is the only mix which generates a turnover for the organization. The remaining 3p?s are the variable cost for the organization. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.
PRICING STRATEGIES
PENETRATION SKIMMING PRICING STRATEGIES COMPETITION PRODUCT LINE
BUNDLE
PSYCHOLOGICAL
PLACE
?
This heading refers to distribution. This means all aspects related to how goods and services are 'moved' from the producers to the end user. This means the coordination of retailers and/or wholesales and in the case of products the logistics involved in moving from Factory/warehouse/head office, to the end user.
DISTRIBUTION NETWORK
?
Direct distribution
Indirect Distribution
MANUFACTURER MANUFACTURER RETAILERS CONSUMERS CONSUMERS
PRODUCT
?
? ? ? ? ? ? ? ?
Under this heading a marketer needs to consider the thing that is being sold. This is not just the physical product itself, but also anything related to how it is made, packaged and named. While considering products the marketers should also include Functionality Appearance Quality Packaging Brand Warranty Support/service.
PROMOTION
?
?
? ? ? ? ? ? ?
Another one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for 'marketing communication'. The elements of the promotions mix are: Personal Selling. Sales Promotion. Public Relations. Direct Mail. Trade Fairs and Exhibitions. Advertising. Sponsorship.
MARKETING MIX OF VODAFONE
A longer term marketing strategy is underpinned by careful planning and a successful marketing mix. The marketing mix is a combination of many features that can be represented by the four Ps. ? Take the case of vodafone regarding the following four p?s.
?
PRODUCT & PLACE
?
A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events.
?
? ?
Vodafone UK operates over 300 of its own stores. It also sells through independent retailers e.g. Carphone Warehouse. Customers are able to see and handle products they are considering buying.
PRICE & PROMOTIONS
? ?
It offers various pricing structures to suit different customer groups. Monthly price plans are available as well as prepay options. Phone users can top up their phone on line.
? ? ?
Vodafone works with icons such as David Beckham to communicate its brand values. Above the line Below the line
“If you fail to plan, you plan to fail”
WHAT IS A MARKETING PLAN? WHAT IS ITS IMPORTANCE? It is the central instrument for directing and coordinating the marketing effort. ? Operates at two levels
?
? Strategic
Marketing Plan ? Tactical Marketing Plan
FUNCTION & SCOPE OF MARKETING PLAN.
?
Depends on
?
?
Industry Size of Company
?
Functions
?
?
?
?
Forcing marketing personnel to look internally in order to fully understand the results of past marketing decisions. Forcing marketing personnel to look externally in order to fully understand the market in which they operate. Setting future goals and providing direction for future marketing efforts that everyone within the organization should understand and support. Serving as a key component in obtaining funding to
WHAT DOES A MARKETING PLAN CONTAIN?
?Executive ?Situation
summary and table of contents
Analysis Strategy
?Marketing ?Financial
Projections
?Implementation
Controls
PLANNING,IMPLEMENTATION AND CONTROL TECHNIQUES
PLANNING:
Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result.
FEATURES OF PLANNING:
Process rather than a behavior ? Future oriented ? Selection of a suitable course of action ? Undertaken at all levels ? Flexible ? Pervasive and continuous
?
IMPORTANCE OF PLANNING:
Primacy of Planning ? To offset Uncertainty and change ? Focus attention on objectives ? Help in co-ordination and control ? Increase organizational effectiveness
?
PROCESS OF PLANNING
Perception of Opportunities ? Establishing objectives ? Planning Premises ? Identification,evaluation and choice of alternatives ? Formulation of plans ? Establishing sequence of activities
?
CONCERNS
Too little support from top management ? Lack of plan for planning ? Emphasis on too much detail,too far ahead ? Irregular ? Not much emphasis given to short term planning
?
CONTROL
?
Management Control is the process of ensuring that the human,physical and technological resources are allocated so as to achieve the overall purposes of an organization.
ELEMENTS OF CONTROL
Set of organized actions ? Helps to monitor progress ? Control and planning are complementary
?
APPROACHES TO CONTROL
Anthony?s ? Merchant?s ? Johnson and Scholes ? Luck and Ferrell
?
BEHAVIORAL ASPECTS
Behavioral Displacement ? Gamesmanship ? Negative Attitudes ? Short-Termism ? Entrapment and Escalation
?
TECHNIQUES & TOOLS FOR STRATEGIC PLANNING
? ? ? ? ?
Boston Consulting Group Matrix Created by Bruce Henderson in 1970. Made to help corporate with analyzing their business units or product lines. Helps the company allocate resources. Used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis
?
? ?
Comprising of two aspects Relative market share (Relative to the completion) Market Growth.
FIGURE
For each product or service, the 'area' of the circle represents the value of its sales. Offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, in terms of current profitability & likely cash flows.
Terminology
This model classifies products into four groups: ? Dogs
• Products which have low market shares and low market growth rates.
? ? ?
Question Mark/Problem Child Products with low market share but operate in high market growth rates. Stars High market shares that operate in growing markets. Cash Cows Cash Cows are products at the mature stage of the lifecycle, High Cash generation but slow growth.
•
?
•
?
•For each product or service, the 'area' of the circle represents the value of its sales. •Offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, in terms of current profitability & likely cash flows.
CASE STUDY / EXAMPLE
Coca Cola( Global market) Strengths: Recognizable Brand with Emotional Attachment, Supply chain(Bottling). Weakness : Decline in sales ( South-East Asia) , Packing changes. Opportunities: Brand Recognition & Trust Threats : Competition, Substitutes.
?
BCG Matrix analysis: Dog Strategy : Either Invest to earn market share or consider Divest. Star Strategy: Invest profits for future growth. Question Mark Strategy: Either invest to make it star or divest to avoid making it dog. Cashing Cow Strategy : Use profits to finance growth.
? ? ?
?
POINTS TO REMEMBER To look for a balanced portfolio. ? Try not to have dogs. ? Keep cash cows, Problem children & stars in equilibrium. ? The funds generated by the cash cows to be used to turn problem children into building stars. ? Stars may eventually become cash cows. ? Some problem children may become dogs. ? Successful products to compensate for
?
PROBLEMS WITH THE BCG MATRIX:
Assumption that higher rate of profit leads to higher market share. Example: When Boeing launches a new jet , it may gain a high market share but may incur high development costs. ? Normally applied to small business units / SBU. (Area of Business ) rather than products. ? Problem of oversimplification of complex set of decisions
?
ABOUT GE MATRIX
(Also called GE-McKinsey Matrix) ? Developed by McKinsey & Company in 1970?s. ? GE is a model to perform business portfolio analysis on the SBU?s. ? GE is rated in terms of „Market Attractiveness & Business Strength? ? It is an Enlarged & Sophisticated version of BCG.
METHODOLOGY
Step 1 :Identify your products, brands, experiences, solutions, or SBU's. Step 2: Answer the question, What makes this market so attractive? Step 3 : Decide on the factors that position the business on the GE matrix. Step 4: Determine the best ways to measure attractiveness and business position.
Step 5 : Finally rank each SBU as either low, medium or high for business strength & the same in relation to market attractiveness.
OVERVIEW
High High
Business Strengths
Low
Market Attractiveness
Attractive Moderate Attractive
Low
Unattractive
Low High
APPLICATION UK RETAIL INDUSTRY
MARKET ATTRACTIVENESS
?
?
? ?
?
? ?
?
Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities
BUSINESS STRENGTH
?
?
? ?
?
? ?
?
?
Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness
STRATEGIES
? Protect Position • Invest to grow • Effort on maintaining strength ? Invest to Build • Challenge for leadership • Build selectively on strength
? Build Selectively • Invest in most attractive segment • Build up ability to counter competition • Emphasize profitability by raising productivity
STRATEGIES
leadership
? Protect & Refocus • Manage for current earning • Defend strength
growth
Try harder
? Selectivity for Earning • Protect existing program • Investments in profitable segments
?Build Selectively • Specialize around limited strength • Seek ways to overcome weaknesses • Withdraw if indication of sustainable growth are lacking
STRATEGIES
? Limited Expansion for Harvest • Look for ways to expand without high risk
? Manage for Earnings • Protect position in profitable segment • Upgrade product line • Minimize investment
? Harvest • Sell at time that will maximize cash value • Cut fixed costs and avoid investment meanwhile
LIMITATIONS
No research to prove the relationship between market attractiveness and business position. ? Interrelationships between SBU's, products, brands experiences or solutions is not taken into account. ? This approach does require extensive data gathering. ? Scoring is personal and subjective. ? No hard and fast rule on how to weight elements. ? The GE matrix offers a broad strategy and does not indicate how best to implement it.
?
doc_443897578.pptx
This is a presentation explaining Strategic planning .
STRATEGIC PANNING B
?
Marketing Mix Marketing Plans
?
?
Necessity of Planning ,Control & Implementation
Tools & Techniques
?
MARKETING MIX
?
?
Marketing Mix is defined as a set of marketing tools that a firm uses to pursue its marketing objectives in the target market. It is generally accepted as the use and specification of the four P’s describing the strategic position of a product in the Marketplace.
CONCEPT
?
? ? ? ?
Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are Price Place Product Promotion.
The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!
PRICE
?
Pricing is the only mix which generates a turnover for the organization. The remaining 3p?s are the variable cost for the organization. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.
PRICING STRATEGIES
PENETRATION SKIMMING PRICING STRATEGIES COMPETITION PRODUCT LINE
BUNDLE
PSYCHOLOGICAL
PLACE
?
This heading refers to distribution. This means all aspects related to how goods and services are 'moved' from the producers to the end user. This means the coordination of retailers and/or wholesales and in the case of products the logistics involved in moving from Factory/warehouse/head office, to the end user.
DISTRIBUTION NETWORK
?
Direct distribution
Indirect Distribution
MANUFACTURER MANUFACTURER RETAILERS CONSUMERS CONSUMERS
PRODUCT
?
? ? ? ? ? ? ? ?
Under this heading a marketer needs to consider the thing that is being sold. This is not just the physical product itself, but also anything related to how it is made, packaged and named. While considering products the marketers should also include Functionality Appearance Quality Packaging Brand Warranty Support/service.
PROMOTION
?
?
? ? ? ? ? ? ?
Another one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for 'marketing communication'. The elements of the promotions mix are: Personal Selling. Sales Promotion. Public Relations. Direct Mail. Trade Fairs and Exhibitions. Advertising. Sponsorship.
MARKETING MIX OF VODAFONE
A longer term marketing strategy is underpinned by careful planning and a successful marketing mix. The marketing mix is a combination of many features that can be represented by the four Ps. ? Take the case of vodafone regarding the following four p?s.
?
PRODUCT & PLACE
?
A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events.
?
? ?
Vodafone UK operates over 300 of its own stores. It also sells through independent retailers e.g. Carphone Warehouse. Customers are able to see and handle products they are considering buying.
PRICE & PROMOTIONS
? ?
It offers various pricing structures to suit different customer groups. Monthly price plans are available as well as prepay options. Phone users can top up their phone on line.
? ? ?
Vodafone works with icons such as David Beckham to communicate its brand values. Above the line Below the line
“If you fail to plan, you plan to fail”
WHAT IS A MARKETING PLAN? WHAT IS ITS IMPORTANCE? It is the central instrument for directing and coordinating the marketing effort. ? Operates at two levels
?
? Strategic
Marketing Plan ? Tactical Marketing Plan
FUNCTION & SCOPE OF MARKETING PLAN.
?
Depends on
?
?
Industry Size of Company
?
Functions
?
?
?
?
Forcing marketing personnel to look internally in order to fully understand the results of past marketing decisions. Forcing marketing personnel to look externally in order to fully understand the market in which they operate. Setting future goals and providing direction for future marketing efforts that everyone within the organization should understand and support. Serving as a key component in obtaining funding to
WHAT DOES A MARKETING PLAN CONTAIN?
?Executive ?Situation
summary and table of contents
Analysis Strategy
?Marketing ?Financial
Projections
?Implementation
Controls
PLANNING,IMPLEMENTATION AND CONTROL TECHNIQUES
PLANNING:
Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result.
FEATURES OF PLANNING:
Process rather than a behavior ? Future oriented ? Selection of a suitable course of action ? Undertaken at all levels ? Flexible ? Pervasive and continuous
?
IMPORTANCE OF PLANNING:
Primacy of Planning ? To offset Uncertainty and change ? Focus attention on objectives ? Help in co-ordination and control ? Increase organizational effectiveness
?
PROCESS OF PLANNING
Perception of Opportunities ? Establishing objectives ? Planning Premises ? Identification,evaluation and choice of alternatives ? Formulation of plans ? Establishing sequence of activities
?
CONCERNS
Too little support from top management ? Lack of plan for planning ? Emphasis on too much detail,too far ahead ? Irregular ? Not much emphasis given to short term planning
?
CONTROL
?
Management Control is the process of ensuring that the human,physical and technological resources are allocated so as to achieve the overall purposes of an organization.
ELEMENTS OF CONTROL
Set of organized actions ? Helps to monitor progress ? Control and planning are complementary
?
APPROACHES TO CONTROL
Anthony?s ? Merchant?s ? Johnson and Scholes ? Luck and Ferrell
?
BEHAVIORAL ASPECTS
Behavioral Displacement ? Gamesmanship ? Negative Attitudes ? Short-Termism ? Entrapment and Escalation
?
TECHNIQUES & TOOLS FOR STRATEGIC PLANNING
? ? ? ? ?
Boston Consulting Group Matrix Created by Bruce Henderson in 1970. Made to help corporate with analyzing their business units or product lines. Helps the company allocate resources. Used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis
?
? ?
Comprising of two aspects Relative market share (Relative to the completion) Market Growth.
FIGURE
For each product or service, the 'area' of the circle represents the value of its sales. Offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, in terms of current profitability & likely cash flows.
Terminology
This model classifies products into four groups: ? Dogs
• Products which have low market shares and low market growth rates.
? ? ?
Question Mark/Problem Child Products with low market share but operate in high market growth rates. Stars High market shares that operate in growing markets. Cash Cows Cash Cows are products at the mature stage of the lifecycle, High Cash generation but slow growth.
•
?
•
?
•For each product or service, the 'area' of the circle represents the value of its sales. •Offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, in terms of current profitability & likely cash flows.
CASE STUDY / EXAMPLE
Coca Cola( Global market) Strengths: Recognizable Brand with Emotional Attachment, Supply chain(Bottling). Weakness : Decline in sales ( South-East Asia) , Packing changes. Opportunities: Brand Recognition & Trust Threats : Competition, Substitutes.
?
BCG Matrix analysis: Dog Strategy : Either Invest to earn market share or consider Divest. Star Strategy: Invest profits for future growth. Question Mark Strategy: Either invest to make it star or divest to avoid making it dog. Cashing Cow Strategy : Use profits to finance growth.
? ? ?
?
POINTS TO REMEMBER To look for a balanced portfolio. ? Try not to have dogs. ? Keep cash cows, Problem children & stars in equilibrium. ? The funds generated by the cash cows to be used to turn problem children into building stars. ? Stars may eventually become cash cows. ? Some problem children may become dogs. ? Successful products to compensate for
?
PROBLEMS WITH THE BCG MATRIX:
Assumption that higher rate of profit leads to higher market share. Example: When Boeing launches a new jet , it may gain a high market share but may incur high development costs. ? Normally applied to small business units / SBU. (Area of Business ) rather than products. ? Problem of oversimplification of complex set of decisions
?
ABOUT GE MATRIX
(Also called GE-McKinsey Matrix) ? Developed by McKinsey & Company in 1970?s. ? GE is a model to perform business portfolio analysis on the SBU?s. ? GE is rated in terms of „Market Attractiveness & Business Strength? ? It is an Enlarged & Sophisticated version of BCG.
METHODOLOGY
Step 1 :Identify your products, brands, experiences, solutions, or SBU's. Step 2: Answer the question, What makes this market so attractive? Step 3 : Decide on the factors that position the business on the GE matrix. Step 4: Determine the best ways to measure attractiveness and business position.
Step 5 : Finally rank each SBU as either low, medium or high for business strength & the same in relation to market attractiveness.
OVERVIEW
High High
Business Strengths
Low
Market Attractiveness
Attractive Moderate Attractive
Low
Unattractive
Low High
APPLICATION UK RETAIL INDUSTRY
MARKET ATTRACTIVENESS
?
?
? ?
?
? ?
?
Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities
BUSINESS STRENGTH
?
?
? ?
?
? ?
?
?
Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness
STRATEGIES
? Protect Position • Invest to grow • Effort on maintaining strength ? Invest to Build • Challenge for leadership • Build selectively on strength
? Build Selectively • Invest in most attractive segment • Build up ability to counter competition • Emphasize profitability by raising productivity
STRATEGIES
leadership
? Protect & Refocus • Manage for current earning • Defend strength
growth
Try harder
? Selectivity for Earning • Protect existing program • Investments in profitable segments
?Build Selectively • Specialize around limited strength • Seek ways to overcome weaknesses • Withdraw if indication of sustainable growth are lacking
STRATEGIES
? Limited Expansion for Harvest • Look for ways to expand without high risk
? Manage for Earnings • Protect position in profitable segment • Upgrade product line • Minimize investment
? Harvest • Sell at time that will maximize cash value • Cut fixed costs and avoid investment meanwhile
LIMITATIONS
No research to prove the relationship between market attractiveness and business position. ? Interrelationships between SBU's, products, brands experiences or solutions is not taken into account. ? This approach does require extensive data gathering. ? Scoring is personal and subjective. ? No hard and fast rule on how to weight elements. ? The GE matrix offers a broad strategy and does not indicate how best to implement it.
?
doc_443897578.pptx