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Ch. 11: Business Development and Planning. Business Development. The search for opportunities and the structuring of business entities to exploit those opportunities with current or near term organizational capabilities. Involves: creation and analysis of markets and market segments

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business development
Business Development

The search for opportunities and the structuring of business entities to exploit those opportunities with current or near term organizational capabilities.

Involves:

  • creation and analysis of markets and market segments
  • Maintenance of relationships with partners: customers, channel members, or suppliers of complementary products and services.
forecasting
Forecasting

Usefulness of Forecast determined by:

  • Time
  • Effort
  • Money Invested
forecasting1
Forecasting

Marketing Forecast attempts to account for:

  • Technological change
  • Time horizons
  • Barriers to entry/exit
  • Elasticity of demand
  • Forecast expenditures
types of forecast
Types of Forecast
  • Strategic forecasts
  • Marketing planning forecasts
  • Marketing Operation forecasts (MOFs)
  • Sales forecasts
types of forecast strategic forecasts
Types of Forecast:Strategic Forecasts
  • “Top down” forecast
  • Usually 3-5 years
  • More qualitative than quantitative
  • Attempt to reconcile reality with desired strategic direction
types of forecast marketing planning forecasts
Types of Forecast:Marketing Planning Forecasts
  • Usually associated with a product or market
  • Significant inputs from market research and competitive analysis
  • Attempt to predict what customersand competitors will do
  • Usually 1- 3 year periods
types of forecast marketing operations forecast mofs
Types of Forecast:Marketing Operations Forecast (MOFs)
  • Usually the responsibility of the field marketing organization
  • Tactical in nature
  • Source of significant market information, often sourced through customer relationships
  • An element in sales forecasts
  • Serves many parts of the organization
  • Usually 1 – 3 year periods, continuously updated
types of forecast sales forecast
Types of Forecast:Sales Forecast
  • Shorter range than MOF
  • Input to logistical functions, resource planning, and so on
  • Usually derived from analysis of historical data  assumption that future activities will follow current patterns
types of forecast other predictive models
Types of Forecast:Other Predictive Models

Often involve statistical manipulation of historical data

  • Rolling Averages
  • Econometric Models
  • Delphi Approach
slide11

Business Development Tracking Grid

Products

New

Existing

New Business

New

Translation

Markets

Existing

Core Churn

Core

Exhibit 11-2

marketing operations forecast mof
Marketing Operations Forecast (MOF)
  • Provides the “who, what, where, when and how much information” about current and future business
    • Core Business
    • Core Churn
    • Real New Business
    • Translation Business
slide13

Time

The TALC and PLC Superimposed

Exhibit 11-4

PLC – Total Sales

TALC - Sales from New Adopters/ period

marketing and business development throughout the product life cycle
Marketing and Business Development: Throughout the Product Life Cycle

Ever Changing as New Customer Groups Emerge at Different Stages:

  • Development Stage
  • Introduction Stage
  • Growth Stage
  • Maturity Stage
  • Decline Stage
marketing emphasis
Marketing Emphasis

Exhibit 11-6

slide16

Business Development Bands over The Product Life Cycle

Range of Major Sales-Driven Effort

Revenue

Time

Range of Initial Business Development for Each Offering

Range of Major Translation Effort

Exhibit 11-7