Marketing Planning

1. Marketing Planning Teena Y. Sharma

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 Teena Y. Sharma

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 Lifebuoy – “Sales revenue should grow minimum 20 per cent p.a. “ (MP) Teena Y. Sharma

4. What is Marketing Planning all about? • Difference in Scope too • Corporate strategy decides the business the organization will pursue, 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. Teena Y. Sharma

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 Teena Y. Sharma

6. Step 1: Analysing the Marketing environment specific to the business • The main purpose of this exercise is to find out: • Favorable/Unfavorable factors prevailing in the environment from the standpoint of business. • Specific opportunities available to the business, along with their relative risks and attractiveness. • Based on the environmental analysis, MP develops an Opportunity-Threat Profile Teena Y. Sharma

7. Step 2: Internal Appraisal • Strength-Weakness Analysis • Assessing the status of Product Lines, Products and Brands • Assessing the Competitive advantage available. • Strength-Weakness Analysis • Aspects to be covered: • Marketing • Finance • Manufacturing / Operations • R&D • Human Resources • Other General Factors: Image/goodwill etc. Teena Y. Sharma

8. Step 2: Internal Appraisal • Strengths-Weakness Analysis • Strengths and Weakness of Marketing Unit • Growth Rate for the Product • Market Share • Production Capacity in relation to total market potential • Life Cycle stage of Product • Brand Equity • Consumer Perception • Profitability, Prices Teena Y. Sharma

9. Step 2: Internal Appraisal • Techniques for analyzing Strength-Weakness in Marketing: • Marketing Audit • Market Share Analysis • Cost-Volume-Profit(CVP) Analysis • Product Line Profit Analysis Teena Y. Sharma

10. Step 2: Internal Appraisal • Assessing the Status of Product Lines, Products and Brands: • First explore the entire product Line • What contribution each Product Line makes to total profit • At what rate each line is growing • What are the industry trends? Favorable? • Can the firm expect higher profit/contribution from the line, for its overall growth needs • E.g.: HUL-Soaps and Detergents-Lux and Surf Teena Y. Sharma

11. Step 2: Internal Appraisal • Assessing the Competitive Advantage available • Hence we reach to a SWOT analysis after Step 1 and Step 2 Teena Y. Sharma

12. Step 3: 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 Teena Y. Sharma

13. Step 3: Setting the Marketing Objectives • BCG Matrix Teena Y. Sharma

14. Step 3: Setting the Marketing Objectives • 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 • Question Marks: They also use good amount of resources, but unlike stars do not generate much profit, involve more risk • Cash Cows: They also generate good amount of profit, and they generate resources • Dogs: Weak in both Teena Y. Sharma

15. 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 • Market share will increase to 25% from 20% at present in the year 2010-11 • After the Marketing Objectives have been set, the most important and difficult task of Planning comes - > Strategy Formulation Teena Y. Sharma

16. Step 4: 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? Teena Y. Sharma

17. 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 Teena Y. Sharma

18. 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, KacchiKairi etc. • In addition to fruit juices, Dabur will make juices from vegetables and herbs also: Spinach, Amla, Brahmi etc. • Aggresively target corporate offices, schools, hospitals • Foreign markets will also be targeted • New facilities of production • Investments in other units as well. Teena Y. Sharma

19. Step 4: 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 Teena Y. Sharma

20. Step 4: Strategy -> Segmentation • Can be done on the basis of: • Geographic • Nations • States • Regions • Cities • Localities • Demographic • Age and Life-Cycle Stage • Gender • Income • Generation Teena Y. Sharma

21. Step 4: Strategy -> Segmentation contd… • Psychographic • High Resources • Innovators • Thinkers • Achievers • Experiencers • Lower Resources • Believers • Strivers • Makers • Survivors Teena Y. Sharma

22. Step 4: Strategy -> Segmentation contd… • Behavioral • Behavioral Variables: • Occasion Benefits • User Status • Usage Rate • Buyer readiness stage • Decisional Roles: • Initiator • Influencer • Decider • Buyer • User Teena Y. Sharma

23. Steps in Segmentation Process Teena Y. Sharma

24. 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 Teena Y. Sharma

25. Step (B) of Strategy -Selecting a Segment -> Targeting • Single Segment Concentration • One type of product for only one type of market • Selective Specialization • Different segments for different products M1 M1 M3 M3 M2 M2 P1 P1 P2 P2 P3 P3 Teena Y. Sharma

26. Product Specialization • Single product for all markets • Market Specialization • All products for a single market M1 M1 M3 M3 M2 M2 P1 P1 P2 P2 P3 P3 Teena Y. Sharma

27. 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? Teena Y. Sharma

28. E.g.: STP of Hyundai Santro • Segmentation: • Executive class in the cities, looking for diving comfort, pick up, power and style in car • Targeting: • 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” Teena Y. Sharma

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

30. Step 5: Function –wise Plans/ Implementing the Strategy • Production Plans • Sales Plans • Physical distribution Plan • Channel Plan • Advertising and Sales Promotion Plan etc. Teena Y. Sharma

31. Step 6: Formulating the Budget • A budget is formulated for all the preceding activities • Step 7 : IMPLEMET THE MARKETING PLAN Teena Y. Sharma

32. Step 8: Installing Metrics and evaluation • Evaluation and Control for the Marketing Plan as a whole. Teena Y. Sharma

33. Thank You  Teena Y. Sharma