unit:5 ch :18 pg: 340. 4ps of marketing mix should fit together with * marketing objectives *...

Unit:5

Ch :18

Pg: 340

*Marketing Planning

*INTRODUCTION

4Ps of marketing mix should fit together with

*Marketing objectives

*Marketing budget

*Integrated marketing mix

*Marketing Plan

*The Marketing Plan is the detailed statements of the business’s marketing strategy including how it will be implemented & the budget available for it.

*Contents 0f Marketing Plan

*Purpose of plan and mission of business

*Situational analysis

*Marketing objectives –marketing strategy

*Marketing tactics--- marketing mix

*Marketing budget

*Executive summary and timeframe for implementation.

*Situational Analysis-main areas

*Current product analysis

*Target market analysis

*Competitors analysis

*Economic and political environment

*SWOT analysis

*Marketing Objectives

*Where do we want to be?

*Must be SMART objectives.

*Give sense of direction

*Strategy can be conducted easily

*Marketing objectives

Strategic decisions include :

*Should we pursue a mass marketing or a niche marketing strategy

*Sell to same market or find new markets.

Final Strategy depends on:

*The company`s mission and objectives

*Situational analysis

*The resources of the business.

*Marketing –mix Tactics

*Product

*Price

*Promotion

*Place

Group activity

*Marketing budget

The Marketing Budget

Budgets are financial plans for future time periods. Marketing Budget underlines marketing plans and allow a comparison between marketing expenditure and expected sales.

2 main parts of marketing budget

a) Sales targets.

b) Marketing expenditure budgets. - This can be set by using a number of different approaches:

-A percentage of sales.

-Objective-based budgeting.

-Competitor-based budget. Spending as much as competitors.

*Factors Influencing A Business’ Marketing Strategy:

A) The Objectives Of The Business

· The marketing strategy that a business uses most reflect the objectives of the business as a whole.

B) The Strategies Of Competitor Businesses

· E.g.: If a competitor promotes all of its company products on the Internet successfully other businesses may follow.

C) The Structure Of The Market

· Marketing strategies will be influenced by the level of competition & the degree of change within different markets. E.g.: Changes in consumer tastes.

*Factors Influencing A Business’ Marketing

Strategy:

D) The Attitudes Of Key Decision Makers Within Businesses.

Desirability of risk & change such as attitudes are influenced by the environment within which a business operate.

E) The Size Of The Business

F) The Strengths Of The Business

*EXECUTIVE SUMARY AND TIME SCALE

*Reviewing the plan and the marketing strategy—changes in overall plans

*Marketing planning –an evaluation– essential part of business plan --specific marketing plans needed for introduction of new strategy for future success-- different departments involved. Finance, production etc.

*Potential limitations of detailed marketing

plans

*Complex

*Costly

*Time consuming

*Mangers wedded to plans will not see economic downturn, Inflexibility.

*Elasticity

Demand for a product can be influenced by factors other than price such as:

*Income elasticity of demand

*Promotional elasticity of demand

*Cross elasticity of demand

*Evaluating these measures of elasticity

*Promotional Strategies And

Applying the Concepts of AIDA And DAGMAR

*AIDA—model that explains the successive stages a customer passes through in buying a product. Attention—interest –desire –action.

*DAGMAR ----- Process of establishing goal for a promotion campaign so that it is possible to determine whether it has been successful or not.

DEFINING ADVERTISING GOALS FOR MEASURED ADVERTISING RESULTS

*Marketing strategy and marketing objectives –getting the focus right

*Pg 349 – silent reading

*Points to be shared in discussion

*The importance of an integrated marketing

mix.

It has two meanings:

1.Integrating with other depts. of the business

2.Integrating the 4 elements of the marketing mix.

*New Product Development

The design ,creation and marketing of new goods and services. A new product must have :

*Desirable features

*Sufficiently different from other products to stand out.

*Marketed effectively.

*Stages of new product development process.(gr

activity)

1. Generating new ideas

2. Idea screening

3. Concept development and testing

4. Business analysis

5. Product testing

6. Test marketing

7. Commercialisation

*Research and Development

*The scientific research and technical development of new products and processes.

Examples: Apple, HP, Honda and Toyota.

*Government encouragement for

research and development

*Providing some legal security to inventors and designers by allowing them to register a design.

*Financial assistance to businesses engaging in R&D

*Factors that influence the level of R&D expenditure by a

business.

*The nature of industry

*The R&D spending plans of competitors

*Business Expectations

*The risk profile or culture of the business

*Government Policy

*R&D –an Evaluation

*Silent reading and class discussion

*Sales Forecasting –Potential benefits

Predicting future sales levels and sales trends

BENEFIT S:

1. To know how much to produce.

2. To know how much to distribute.

3. To know level of staffing.

4. Planning of cash flows with more accuracy.

*Qualitative methods of sales forecasting

*Sales force composite

*Delphi method

*Consumer surveys

*Jury of experts

*Quantitative sales forecasting

methods

*Correlation –establishing casual relationships

*Time series analysis— past sales data

*Extrapolation— past results

*Moving averages—calculating moving totals from a number of sales figures

-the trend-underlying movement in a time series

-Seasonal Fluctuations—regular variations in sales data with in 12 months.

-cyclical Fluctuations—regular variations in sales data over 1 year and due to

business cycle.

-random Fluctuations—any time unusual and un predictable/