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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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Developing CorporateStrategies
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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Developing CorporateStrategies
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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