PLANNING PROCESS

Amity Business School

STRATEGIC PLAN: It defines the tgt market and the value

propositions that will be offered to customer.

TACTICAL PLAN: It specifies the marketing tactics, including product

features, promotion, merchandising, pricing, sales
channels and service.
PLANNING IMPLEMENTING CONTROLLING

Corporate Planning Organizing Measuring results

Division Planning Implementing Diagnosing results.

Business Planning Taking Corrective

actions.
Product Planning
 Amity Business School

Demand Industry Competition Trade

Market
Condition Analysis Analysis Analysis
Segment
Analysis

MARKET OPPORTUNITY

a. Size of the market

b. How well the market is served
c. Any niches?
d. Marketing mix required to succeed
e. Core competencies required
The Strategic Planning Process
Amity Business School
 Amity Business School

Organizational portfolio plan

Organizations at a particular time are a portfolio of businesses
that is, product lines, divisions, schools
Management must decide which businesses to build, maintain, or
eliminate, or which new businesses to add.
Organizations can create strategic business units (SBU) which
could be a single product, product line, or division.

SBU must have the following three characteristics:

It should be a single business of collection of related business
that
can be planned independent of the rest of firm.
It has its own set of competitors.
It is headed by a manager who is accountable for strategic
Planning and profit generation.
 Portfolio ModelAmity Business School

Mkt Growth

Boston Consultancy Group (BCG) Matrix

 Star Marketing Strategies
Amity Business School

1. Entrenchment
4. Going international
2. Switching to
Intermediaries 5. Broadening product
horizons
Existing 3. Mandatory consumption
Uses 6. New applications 8. Repositioning
P 7. New situations 9. Redefining markets
R
O
D
U
C
T
New Users Existing Market New Markets
 Product – Market Selection
Amity Business School

Key issues that need to be addressed

• What markets should be served?

• What form should the product take?

• What should the product offer for use?

• For whom is the product most important?

 Product /Market Choices
Amity Business School

Horizontal Markets or Horizontal Diversification:

a) Firm’s assessment of its strengths and weaknesses
b) Market potential in the target market, or size of the target
market
c) Intensity of rivalry in the selected product-market
d) Entry and exit barriers in the selected industry
e) Value addition by manufacturers or conversely how low is
the ratio of the cost of materials and purchased parts to the
selling price
 Vertical Product Market Choices
Amity Business School

Ask the following questions before deciding on this strategy

1. Is there a possibility that market development may get absorbed
by poor product quality or by product misuse?
2. At what points in the manufacturing chain do quality risks exist?
3. Can the company minimize these risks by taking the
responsibility for that step in manufacturing process?
 Strategic Planning Process
Amity Business School

Situation Audit
(Where are we? How did we reach here? Who have been our major competitors?
Their strategies?)

Analysis of firm’s strengths and weakness

What are the key facilitators or hindrances in our situation

Objective Setting
Market share? ROI? Sales turnover?

Develop and evaluate strategy options

Strategy decision

Implementation

PIMS (Profit Impact of Marketing Strategies)

 BUSINESS UNIT STRATEGIC PLANNING
Amity Business School

External Environment (MACRO & MICRO)

(Opportunity & Threat)

Business Goal Strategy Programme Implementation

Mission

Internal Environment Feedback

(Strength & Weakness) & Control
Strategic planning and
marketing planning Amity Business School
Amity Business School
 A Market plan carries:
Amity Business School
Situation Analysis Market Strategy
Market Summary a) Mission
Target market b) Marketing objectives
Market Demographics c) Financial objective
Behavior factors d) Target objective
Market needs e) Target markets
Market Trends f) Positioning
Market Growth g) Strategy
SWOT Analysis h) Marketing Mix
Competition i) Market research
Product offering j) Financials Breakeven Analysis
Keys to success Sales forecast
Critical Issues Expense forecast control
Implementation