marketing planning & strategy1

8/6/2019 Marketing Planning & Strategy1

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MARKETING PLANNING

&STRATEGY


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Marketing Planning and Strategy

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How good are you at

leveraging your knowledgeand skills so that you are

able to provide value to

your business and

customers?

How smart are you when it

comes to understanding

both the fundamentals of

the business and new

trends?

How well do you understand the art and craft ofmanagement?


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Thinking Manager.

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Taking charge and responsibility

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Batsmanhitting a six on the last ball

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Knowledge explosion.. Knowledge explosion and internet revolution

have forced organisations to innovate.

There is an increased pressure from the

customers, shareholders and society.

Globalisation and liberalisation have openedup new business opportunities.

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Managing a business in new economy Managing a business in the new economy requires

a different Strategy.

Innovation and sustainability are the keys to

success.

Delivering better value faster than competition

will determine the winner.

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Case Maruti SuzukiMaruti Suzuki is launching sedan Kizashi. The car is pitted

against Honda Civic, Toyota Corolla and Skoda Laura. Thecompany will be looking to a new set of customers with

Kizashi. All this is being done to create a different

perception about Maruti.

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Why do we need Strategy? Environment is the key factor.

Changing market,

technology, buyerbehaviour, socio-

political conditions

and competitionrequire differentstrategies.

Survival and success of a business firmdepends on its adaptability.

To survive in the ever changing market, weneed strategy.

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It is about the right Strategy?Success is not about having the right

people, the right attitude, the right tools, theright role models or the right organisation.

It is about the right Strategy.

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Strategy sets the competitive directionStrategy sets the competitive

direction, strategy dictates productplanning, strategy tells how to

communicate internally and externally,

strategy tells us on what to focus.

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Strategy & marketing must be combinedStrategy and marketing must be

combined. A great marketing planwithout proper business strategy will

often fail.

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What is a StrategyWhat makes us unique and

what is the best way to putthat difference into the

minds of our customers and

prospects is Strategy.

Strategy is about pursuing

a course of action

different from competitors

and providing

superior value to particular

market segments.

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Strategy is distinct from tacticsA tactic is an idea. A tactic must have a competitive anglein order to have a chance of success.

This does not necessarily mean a better product or servicebut rather there must be an element of differentness.

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What strategy really is.We need to distinguish between pursuing

practices that are good for any company

and pursuing a practice that is unique to a

particular organisation.

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Is outsourcing a strategy?A company may outsource many services

and call this a strategy.

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Is merger a strategy?A merger is a step that may move you

towards a unique position, to have a

strategy.

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Better for consumers..It is better for consumers that companies

have strategies. The more companies have

strategies, the more consumers have

unique choices.

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Compete on price..We want all companies to compete on

price.

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Become the first one..There is only one ideal way to compete and

the challenge is to be the first one to get

there.

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Case Study L&TL&T is a Rs 46,900 crore engineering and infrastructure professionally

managed company. It has 64 businesses ranging from power to roads

to aerospace to switchgear. These businesses are being converted into

9 operating units such as

Power equipment

Hydrocarbon

Heavy engineering

Infrastructure

Building and factories

Metals and minerals

Electrical and automation products

Electrical construction Machinery and industrial products

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StrategicThinkingStrategy is arrived at by thinking, imagining and planning.

Strategic thinking requires us to do four thingssimultaneously:

Think realistically

Think creatively

Think big Think continuously

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StrategicThinking - Think realisticallyRealistic appraisal of the organisation

Resources and capabilities

Business environment.

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E-commerceMany companies overestimated the demand for

goods and services purchased on the Web. Thedemand for Web-available goods and services is

now only reaching the levels hoped for in 1999.

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StrategicThinking Think creativelyThink creatively means looking at new strategic

opportunities.For centuries, people dreamed of being able to fly. Wright

brothers worked on that dream and made it a reality.

Today we take flying in airplanes for granted.

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StrategicThinking - Think bigPeople are not measured in inches or pounds or college

degrees or family background; they are measured by thesize of their thinking.

Team Nano at Tata pushed itself to find solutions. When budget

constraints, design restrictions, the rising costs of materials and

political agitation threatened to derail the project, they dug deeper.

Finally Nano astonished the world and started a renaissance inbusiness thinking.

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StrategicThinking - Think continuouslyThink continuously means done on a daily basis. The strategic thinker

has to think across several dimensions.

Making strategy is likened to conducting a music orchestra. A

conductor knows his band, the musicians and their instruments. The

conductor knows that under his leadership, the band can produce

music of such quality that can stir the souls.

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Strategy defined..Thus strategy is defined as the overall plan of an

organisation for deploying its resources within itsenvironment, to establish a favourable position,

that is, a targeted competitive position and satisfy

its long-term goals.

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Key challenges of the business environment Increasingly inconsistent environment

Familiar landmarks no longer serve as guide posts Competitors, partners, suppliers and customers are

increasingly unpredictable

Micro decisions influenced by macro parameters

Broadly factors that impact all businesses equally are called macro

factors and those that influence a specific business are called micro

factors.

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Key challenges of the business environmentOur countrys growth is fuelled by growing middle-class

population, young consumers and rising per-capita

incomes.

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Key challenges of the business environmentIndia will become the third largest emitter of carbon

dioxide worldwide by 2015.

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Key challenges of the business environmentSteadily the spending power of rural India is increasing. Combine

these factors with improved roads and other infrastructure, rural

growth story is scripting a new chapter.

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Key challenges of the business environmentCustomers are going back to nature and thus demanding

herbal and natural therapies.

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The Pestel frameworkThe PESTEL framework consists of

broad environmental factors that

impact almost all organisations.

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The Pestel frameworki) Political factors

Business cycles GNP/GDP trends

Interest rates

Money supply

Inflation

Unemployment

Disposable income

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The Pestel frameworkBusiness cycles

The five stages of the business cycle are growth,

peak, recession, trough and recovery.

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The Pestel frameworkGNP/GDP trendsGross National Product, GNP is the total value of all final

goods and services produced within a nation in a particularyear, plus income earned by its citizens (including income of

those located abroad), minus income of non-residents

located in that country.

It is important to differentiate Gross Domestic Product fromGross National Product. GDP includes only and services

produced within the geographic boundaries of the country,

regardless of the producers nationality. GNP does not

include goods and services produced by foreign producers,

but does include goods and services produced by Indian

firms operating in foreign countries.

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Money SupplyThe Reserve Bank ofIndia defines monetary

aggregates as:

Reserve Money (M0): Currency in circulation +

Bankers deposits with the RBI + Other deposits

with the RBI = Net RBI credit to the Government +

RBI credit to the commercial sector + RBIs claims

on banks + RBIs net foreign assets +Governments currency liabilities to the public

RBIs net non-monetary liabilities.

M1: Currency with the public + Deposit money of the

public (Demand deposits with the banking system +Other deposits with the RBI).

M2: M1 + Savings deposits with Post office savings banks.

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Money SupplyM3: M1+ Time deposits with the banking system =

Net bank credit to the Government + Bankcredit to the commercial sector + Net foreignexchange assets of the banking sector +Governments currency liabilities to the public Net non-monetary liabilities of the bankingsector (Other than Time Deposits).

M4: M3 + All deposits with post office savingsbanks (excluding National SavingsCertificates).

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The Pestel frameworkEconomic factors

Government stability

Taxation policy Foreign policy

Trade regulations and trade policy

Social welfare policies

Socio-cultural factors

Population demographics Income distribution

Social mobility

Cultural diversity

Lifestyle changes

Attitude towards work and leisure

Consumerism

Levels of education

Skilled manpower availability

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The Pestel frameworkTechnological factors

Government spending on research and development

Government and industry focus on technological efforts New discoveries, innovations and development

Speed of technology transfer

Rates of obsolescence

Environmental factors

Environmental protection laws

Waste disposal regulations

Energy consumption and production

Competition law

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The Pestel frameworkLegal factors

Monopolies legislation

Employment law

Health and safety

Product safety and liability regulations

Exit policy

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Organisation to be abreast of changesBusinesses should:

identify new openings and opportunities

identify dangers and problems

identify whether there is any need to change

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