Masilang, Shiela Mae C.

BSBA 4-1
Marketing Management

Review Questions

Explain, in brief, the importance of marketing planning.

Efficient marketing planning helps in focusing the various activities, programs and operations of
the department towards the same direction- achieving the goals of the marketing department in a way
that is aligned with the overall business success. It also helps the organization to identify the
opportunities that may arise in future and seize them before the competitors do. Regular monitoring of
the business environment throws light on a number of emerging consumer needs and wants which can
be successfully converted into marketing ideas. It also helps to determine the appropriate proportion of
the various aspects of the marketing mix to create the maximum appeal to customers and helps to
coordinate the activities of all the departments so that coordination is achieved in the performance of
the marketing department.

What do you mean by gap analysis?

A gap analysis is process that compares actual performance or results with what was expected
or desired. The method provides a way to identify suboptimal or missing strategies, structures,
capabilities, processes, practices, technologies or skills, and then recommends steps that will help the
company meet its goals.

By comparing the current state with the target state, companies, business units, or teams can
determine what they need to work on to make their performance or results better and get on the right
path quicker. Companies can also use the gap analysis process to elevate individual or team
performance, and look at attributes such as task competency, performance level, and productivity.
Other names for the process include need-gap analysis, needs analysis, and needs assessment.

What are the steps involved in corporate planning process?

The first step involved in corporate planning is environmental analysis and diagnosis. The first
and most important step in creating a successful corporate plan is to gather information. Take the good,
the bad, the ugly and the pretty that regard to your specific goals. Not only should you gather this
information about your own company, but also your biggest competitors. No matter if you are a small
business or large, it is important to look at the strengths and weaknesses of the leading companies in
your industry. This can help shape your plan to avoid the costly mistakes of others.

In corporate planning, after environmental analysis and diagnosis, the planners determine
objectives for the company as a whole and for each department of it; which become the beginning point
of corporate planning. All objectives of corporate planning must represent an integrated or coordinated
system of objectives. In order to make corporate planning a realistic approach to attaining objectives;
objective setting for corporate planning is done in the light of environmental analysis and diagnosis.

Strategy formulation is the third step of corporate planning process. Strategy is, in fact, the
weapon of the planner devised for attaining objectives of corporate planning. It is easier to set
objectives; it is difficult to realize them. Strategies facilitate the attainment of objectives. There is no
doubt about it that success of strategies is the success of corporate planning; and vice-versa. Strategy
formulation is also done in the light of environmental analysis and diagnosis.

The fourth step of corporate planning process is developing of tactical plans. Strategies are
translated into action plans called tactical plans or operational plans. Tactical plans are necessary for
implementation of strategies leading to the attainment of corporate planning objectives. For example, if
the strategy of a company is to develop the skills and talents of manpower for realizing objectives; then
designing of suitable training programs would amount to making tactical plans. Corporate planning and
strategy formulation have a long-term perspective; while tactical plans have a short-term perspective, as
the latter are to be implemented immediately, in the usual course of organizational life.

Next step is the implementation of tactical plans. As such, tactical plans are put into a process of
implementation, just at the right time, as decided by management. For implementation purposes,
necessary communications are made to the operating staffing; who are also provided with necessary
facilities to implement the tactical plans.

After the tactical plans have been put into practice; a review of progress is done i.e. an
examination of what results are following from the implementation of the plan and what feedback
action is necessary, for the betterment of the corporate planning process.

Assessment Questions

Name four qualification and strategies used in BCG model.

The BCG Matrix is comprised of four quadrants that show high and low market share and high
and low growth potential. Each quadrant has a name and specific characteristics. The four classifications
and strategies used in the BCG Model are the question marks quadrant, dogs quadrant, star quadrant
and cash cows quadrant.

Products in the question marks quadrant are in a market that is growing quickly but where the
product(s) have a low market share. Question marks are the most managerially intensive products and
require extensive investment and resources to increase their market share. Investments in question
marks are typically funded by cash flows from the cash cow quadrant.

Products in the dogs quadrant are in a market that is growing slowly and where the product(s)
have a low market share. Products in the dogs quadrant are typically able to sustain themselves and
provide cash flows, but the products will never reach the stars quadrant.

Products in the star quadrant are in a market that is growing quickly and one where the
product(s) have a high market share. Products in the stars quadrant are market-leading products and
require significant investment to retain their market position, boost growth, and maintain a competitive
advantage. Stars consume a significant amount of cash but also generate large cash flows. As the market
matures and the products remain successful, stars will migrate to become cash cows. Stars are a
company’s prized possession and are top-of-mind in a firm’s product portfolio.

Products in the cash cows quadrant are in a market that is growing slowly and where the
product(s) have a high market share. Products in the cash cows quadrant are thought of as products that
are leaders in the marketplace. The products already have a significant amount of investments in them
and do not require significant further investments to maintain their position. Cash flows generated by
cash cows are high and are generally used to finance stars and question marks. Products in the cash
cows quadrant are “milked” and firms invest as little cash as possible while reaping the profits generated
from the products.

What do you mean by business unit level marketing planning? What are the steps involved in
marketing planning? Discuss.

Business unit level marketing planning is independently managed division of a large company,
having its own vision, mission and objectives, whose planning is done separately from other businesses
of the company. The vision, mission and objectives of the division are both distinct from the parent
enterprise and elemental to the long-term performance of the enterprise. When it comes to marketing
planning, each business unit has a role to play. Each function contributes extremely important value to
the primary corporate business strategy and strategy needs to be part of everyone’s responsibilities. As
such, each business unit must develop its own business unit marketing plan that will define how it will
fulfill its part of the primary corporate strategy and make distinct, value-added contribution to the
organization’s long-term success. Below are the steps involved in marketing planning.

The first and foremost step towards making a product successful is to make a careful
observation of the objective of the firm. Hence the first stage of the planning process of marketing is to
set the goal which you like to accomplish. One should be aware of your final goal, the vision of the
company regarding the product depicts what the company is for and where they want to reach.

The second step entails the observation of the current situation. This is a subset of long term
and strategic planning processes in order to observe the current situation, the resources company holds
depict the direction in which the company is moving. Draw the layout of the resources; assess the in
addition to assessing the internal and external factors. Identify the risk and favors associate with
introducing the product. Review the market, target the appropriate one and divide it into different
segments through resources so that you can penetrate the product in the market more clearly.

Conduct a SWOT analysis of the business which involves different internal and external facets
involved. Through this, you can analyze and improve the current situation. Design the inner view of the
firm which will define that you understand the need of your customer; you know whom you are
targeting. Perform market research to understand your competitor and understand the fact that which
needs of the consumer are necessary to be fulfilled, what depreciation is connected to it and how much
needs will change with the passage of time.

The next step involves making the marketing strategies and objectives in order to gain the
overall objective of the firm. This involves observing the marketing tactics which fit the best for the
promotion of the business. This step will be useful in making the selection of various strategies that will
be helpful in approaching the target market. This will help you in guiding you towards the segment of
the market which you have selected to reach. This will also guide you to how you will reach the desired
market by selecting the most appropriate type of communication means and way of positioning your
product.

Now it’s time to put your plan into action. Identify how and when you will launch your plan. At
this stage of the strategic marketing process, you will reach out to customers to inform and persuade
them about your product or service. Your next steps include getting the resources (cash and staffing) to
market your product, organizing the people who will do the work, creating calendars to keep the work
on track, and managing all the details for each goal. It will help you stay focused and energized if you
create monthly benchmarks and projects, weekly action steps, and daily marketing appointments.