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