Planning , Implementation and Control in Business Marketing

7/31/2019 Planning , Implementation and Control in Business Marketing

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PLANNING ,IMPLEMENTATION ANDCONTROL IN BUSINESSMARKETING

- Tanya Agrawal


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Characteristics of Market OrientedOrganization

Stay close to the customersAhead of the competitorsPrinciple To attract and satisfy customers ata profit


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Factors Affecting MarketOrientation

SharedValue

Organization

Strategy

Stakeholders

Customer FirstSuperior ProductQuality &ServiceEg- HUL,Infosys

Structure - to haveminimum layers betweenlower employees andCEOPolicies - employeesclose to customer aregiven more authorityCulture -aims to delightthe customer

Long termobjectivesParticipativeapproach info fromtop down and bottomup sources

Flexible to rapidlychanging environment

Customers,employees,shareholder, suppliersand intermediariesSatisfy minimum

expectation


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Market-oriented strategicplanning

Market-oriented strategic planningis the managerial process ofdeveloping and maintaining

a viable fit betweenthe organization's objectives, skills and

resources and its changing marketopportunities.


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Hierarchy of Strategies

Functional(Operational

Management)

Business Units/ SBU(Strategic

Management)

Corporate(Strategic

Management)

CorporateOffice

SBU A SBU B

Finance Marketing Production

SBU C


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Strategic Planning at Corporatelevel

(1) Developing corporate mission and objectives

(2) Defining strategic business units (SBUs)

(3) Allocation of resources to SBUs

(4) Developing corporate strategies to fill the

strategic planning gap


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Corporate Mission Statement

A mission or the purpose is defined as theCEOs conception of the companys existence

or what it should work towards.

Providing companys employees with a sharedsense of purpose, direction and opportunityGuiding geographically dispersed employees

to work independently and yet collectivelytowards realizing the companys businessmissionProviding a vision and direction for thecompany


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Corporate Mission Statement

Factors shaping a Companys Mission

History of objective, strategies and achievement A firm must not depart too much from its past history

CompanyHistory

Personal goals and vision of the management and ownersshould be considered

CurrentPreference

Analysis of the major opportunities and threats faced by thecompany as a part of the market environment should be

considered

MarketEnvironment

Viability of a mission is determined by the availableresources of the company

CompanysResources

Provides access to a wide variety of market, makessignificant contribution to perceived customer benefits &

difficult for competitors to imitate

Companys Core

competence


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Corporate Objectives and Goals

General statement ofcompanys outlook with respectto

Shareholders : Profitability,GrowthEnvironment : Environmentclean control pollution

Expectation of corporate publicValue system of topmanagementCorporate resourcesPerformance of SBUs External Environment

Purpose Requirements

An Objective is a broad statement of intent that is notquantified and not limited by a time period.

An Goal is a measurable or quantifiable objective at aspecific time period.

A corporate objective is translated into specific goals.


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Defining Strategic Business Units(SBUs)

Purpose of defining businesses is to managethen strategically hence different business

units are called SBUs

Characteristics of SBUs It has an independent product or product lineswith a set of competitors and marketsIt can have a separate business strategyIt is headed by a senior executive responsibleto achieve long term & short term businessobjectives and goals


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Allocation of resources toSBUs Corporate offices ,reviews the strategic plans of

SBUs and decides which of them should bemaintained, expanded ,phased out and new

business to be pursued. Based on thesedecision allocation of resources is done.Analytical tools

Boston Consulting Group (BCG) Model, called

Growth Share MatrixGeneral Electric (GE) Model, called BusinessScreen Matrix


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Allocation of resources toSBUs

Business Strength

High Medium Low

M a r k e

t A t t r a c

t i v e n e s s High Invest/Grow Invest/Grow Selectivity/

earnings

Medium Invest/Grow Selectivity/earnings

Harvest/Divest

Low Selectivity/earnings

Harvest/Divest

Harvest/Divest

GE Model: Multifactor Portfolio Matrix


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Developing CorporateStrategies

The Gap between the future desired sales andthe projected sales over the same period is

called Strategic Planning Gap.

This Gap can be filled by three alternativesstrategiesIntensive Growth

Integrative GrowthDiversification Growth


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Corporate Management reviews for furtheropportunities to achieve growth with the companiescurrent businesses.

These are identified using the Product MarketExpansion Grid

Intensive Growth Strategy

CurrentProduct

New Product

CurrentMarket

MarketPenetration

Strategy

Productdevelopment

strategy

New Markets Marketdevelopment

Strategy

(DiversificationStrategy)


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A companys sales & profit can be increased byBackward Integration

Forward integrationHorizontal Integration

Integrative Growth Strategy

Diversification Strategy

When good opportunities are found outside thepresent businesses i.e. product market, this strategyis consideredGood opportunities relates to business strengths andcore competencies also


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Strategic Planning Process AtBusiness Unit Level

Steps for developing business strategy by the businessunit head

(1) Defining the business units mission

(2) Scanning the external environment (opportunities & threats analysis)

(3) Analyzing the internal Environment (Strengths and weakness assessment)

(4) Developing Objectives and Goals

(5) Formulating strategies for achieving the goals

(6) Preparing programme or action-plan from the strategies

(7) Implementing the strategies and action-plans

(8) Monitoring results and taking corrective action (controls)


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Business Unit Mission

Business of the company & business unit intendto pursue

Unique methods which would distinguish it fromthe competitorsSocial Standing of the organization as a businessentity

Components

What Business the company id in ?

Customer groupsCustomer needs or functionsTechnologies Used


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Scanning the external environment(opportunities & threats analysis)

Necessary because the environment iscontinuously changing

P olitical EnvironmentEconomic EnvironmentS ocial Environment

Technological EnvironmentLegal or Regulatory

Types of External Environment


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na yz ng e n erna nv ronmen(Strengths and weaknessassessment)

Strengths are the competitive advantages which acompany can use to gain leverage in the market

place

Weaknesses are the constraints that hindermovement in certain directions.Methods to calculate Strengths & Weakness

Current Marketing StrategyPast performanceMarket effectiveness or orientationMarketing environment


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Developing SBUs Objective &goals

Survival Objective & goals

Growth Objective & goals

Constraint Objective & goals


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Formulating Strategies at BusinessUnit LevelTypes of Strategy summarized by Michael Porter

S t r a t e g

i c T a r g e

t

Industry wide

Differentiation Overall cost

leadership

ParticularSegment

only

Focus

Uniquenessperceived by

customer

Low Cost Position

Strategic Advantage


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Developing Business MarketingPlanA marketing plan is prepared by the head of the

marketing planning process including followingsteps

a) Analysing marketing opportunitiesb) Segmenting and selecting target market

segmentc) Developing market strategiesd) Implementing and controlling the market plan


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Thank You !!!!


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Documents

Planning , Implementation and Control in Business Marketing