Marketing Planning

1. Marketing Planning Kena Shah

2. What is Marketing Planning all about? • Concerns: • Marketing Planning engages itself in shaping the fortune of an individual business unit of the corporation. • In the expanded sense, meeting competition, securing sales, gaining market share by identifying the needs of different segments of consumers, translating those needs into suitable products, marketing those products and in the end maximizing profits of an individual business unit are the prime concerns of Marketing Planning.

3. What is Marketing Planning all about? • Difference between Corporate Level Planning and Marketing Planning • Corporate Level Planning is done for the entire organization. • Marketing Planning is done for an individual business unit or SBU. • In Marketing Planning, emphasis is on the environment that is specific to the business. • E.g. : • Britannia – “To make every Indian a Britannia Consumer” (CLP) • HUL – “To meet everyday needs of people everywhere in India” (CLP) • Britannia Cheese – “To gain more market share than Amul cheese” (MP) • HUL Lifebouy – “Sales revenue should grow minimum 20 per cent p.a. “ (MP)

4. What is Marketing Planning all about? • Difference in Scope too • Corporate strategy decides the business the organization will pursue, the organization-wide decisions are taken here, its mission etc. • Whereas Marketing Planning / Business Level Planning where and how, each and every product/brand belonging to these businesses will be sold and make profit.

5. Tasks involved in Marketing Planning • Analysing the Marketing environment specific to the business and spotting the Opportunities and Threats. • Internal Appraisal • Setting marketing Objectives for the unit • Formulating Marketing strategy for each product/brand of the unit • Developing detailed functional marketing plans and programs for each product/brand of the unit • Formulating the marketing budget • Implementing the Plan • Evaluation and Control

6. Tasks involved in Marketing Planning • In simple words can be termed as: • Scanning of external environment • Internal Appraisal • Setting Objectives • Strategies to achieve objectives • Detailed plans in strategies • Budgeting • Implementation of the plan • Control and evaluation

7. Setting the Marketing Objectives • Marketing Objectives take cue from Corporate Objectives • The corporation/organization offers direction to the in which a particular business should move • This may be done using BCG Matrix • BCG Matrix • A tools used by a multi-business organization to evaluate its various unit’s performance • Called as Boston Consulting Group Growth-Share Matrix • Some SBUs may have higher profit share while some SBUs may have low • The BCG Matrix deals with the process of Industry growth evaluation and relative position of SBU in the industry growth

8. Setting the Marketing Objectives • BCG Matrix

9. BCG Matrix • Stars and Question Marks depicts high growth of Market • Cash Cows and Dogs represent low rate of Growth of the Market • They all have different share in growth • Stars: High share, hence net users of resources, they require a good deal of investment support as already in a good position. Hence, can be given high objectives. • Question Marks: They also use good amount of resources, but unlike stars do not generate much profit, involve more risk. Difficult and confusion in setting objectives. • Cash Cows: They also generate good amount of profit, and they generate resources. If handled with care can convert into stars, but cannot be given high objectives. • Dogs: Weak in both, cannot be given high objectives and resources.

10. Nature of Marketing Objectives • Marketing Objectives should aim at achieving the corporate objective. • They should be specified clearly. • EG: Sales will increase by 10 per cent ( not specific) • Market share will increase to 25% from 20% at present in the year 2010-11(Specific) • After the Marketing Objectives have been set, the most important and difficult task of Planning comes - > Strategy Formulation

11. Marketing Strategy • Significance/ Benefits of Strategy: • Helps realize/achieve the unit’s marketing objectives • Helps realize the Targeted Income and Profit • Specifies the position the unit will seek in its industry and How will it compete therein • What market segments to serve? And what products to offer? • Who are the competitors? Whom to compete, whom to avoid? • Decides the Growth Path-Market Penetration, Market Development? Or Product Development? • On what differentiation to compete-Product superiority? Brand equity? Price attractiveness? Distribution strength? Or Better service?

12. Dabur-Foods: Marketing Objectives and Strategies • Marketing Objectives: • To be a leading player in Indian fruit processing industry. • To make its fruit juice brands- Real, Active major contestants in their segments, each brand should become a 500 crore brand in next five years. • To achieve a total sales turnover of around 600 crores in five years.

13. Dabur-Foods: Marketing Objectives and Strategies • Strategies • The company will launch several variants of these brands. • New juice products will be launched from local fruits like Litchi, Falsa, Kacchi Kairi etc. • In addition to fruit juices, Dabur will make juices from vegetables and herbs also: Spinach, Amla, Brahmi etc. • Aggressively target corporate offices, schools, hospitals • Foreign markets will also be targetted • New facilities of production • Investments in other units as well.

14. Marketing Strategy • Components of Strategy: STPMx • Segmentation • Targeting • Positioning • Marketing Mix • Segmentation: • It is the process by which an organization tries to understand the heterogeneous market by, viewing it from different angles, and then divide the whole market into groups, each homogeneous in itself • Dividing a big market into small parts

15. Segmentation • Can be done on the basis of: • Geographic • Nations • States • Regions • Cities • Localities • Demographic • Age and Life-Cycle Stage • Gender • Income • Generation

16. Segmentation • Psychographic : Basis Lifestyle and attitude of people. • Behavioral • Behavioral Variables: • Occasion Benefits • User Status • Usage Rate • Buyer readiness stage • Decisional Roles: • Initiator • Influencer • Decider • Buyer • User

17. Steps in Targeting Process

18. Effective and favorable criteria of a Segment • Measurable – Size, Purchasing Power and Characteristics of the segment can be measured. • Substantial – The segment is Large and Profitable enough to be served. • Accessible – The segment can be effectively reached and served. • Differentiable – Differentiable from other segments. • Actionable – Effective programs can be formulated to attract the consumers.

19. Step (B) of Strategy -Selecting a Segment -> Targeting • Single Segment Concentration • One type of product for only one type of market • Eg : Ice creams only for diabetes patients • Selective Specialization • Different segments for different products • Eg: HUL making all kinds of Products M1 M3 M3 M2 M2 M1 P1 P1 P2 P2 P3 P3

20. Step (B) of Strategy -Selecting a Segment -> Targeting • Product Specialization • Single product for all markets. E.g.: Same Dettol antiseptic liquid for all. • Market Specialization • All products for a single market • E.g.: Johnsons & Johnsons making all products for babies. M1 M3 M2 M1 M2 M3 P1 P1 P2 P2 P3 P3

21. Step (c) of Strategy : Positioning • How should a company get connected to its consumers? • What locus the firm chooses to seek in the minds of chosen consumers? • How would the firm want the consumer to view the offer? • What position the firm wants to seek in the minds of the consumers?

22. Eg: STP of Hyundai Santro • Segmentation: • Dividing the market as executive class, economy class etc. • Targeting: • They selected executive class. • They found that the segment matched its capabilities, goals and objectives • Positioning: • As a “Safe, high-roof, executive car for city drive with a very good engine”

23. Step (D) of Strategy: Assembling /Reassembling the Marketing Mix • 4Ps • Product • Price • Place • Promotion

24. Function –wise Plans/ Implementing the Strategy • Production Plans • Sales Plans • Physical distribution Plan • Channel Plan • Advertising and Sales Promotion Plan etc.

25. Thank You 