Market Forecasting,

Planning,
Implementation &
Control
Lecture Overview

❖ Planning - benefits, approaches,

kinds
❖ Strategic Planning Process
❖ Marketing Management Process
 Benefits of Planning

❖ formal and systematic process

❖ uncover opportunities/threats
❖ sharper objectives and policies
❖ performance standards - control
❖ coordinate and focus efforts
❖ communication tool
❖ flexibility - contingency planning
Why don’t some firms
plan?
❖ timely
❖ costly
❖ flexibility
❖ prefer ad hoc approach
❖ experience and judgement
Three approaches to
planning

❖ 1. Top-down planning
❖ 2. Bottom-up planning
❖ 3. Goals down - plans up
Three kinds of plans

❖ Annual plan
❖ Long-range plan
❖ Strategic plan
Strategic Planning

❖ SWOT
❖ changing environment
– opportunities and threats
❖ firm’s situation
– strengths and weaknesses
❖ strategic fit
– match between marketing opportunities
and the firm’s goals and strengths
 Situation Analysi

S Things
Things the
the company
company does
does well.
well.

W Things
Things the
the company
company does
does not
not do
do well.
well.

O Conditions
Conditions in
that
that favor
in the
the external
favor strengths.
strengths.
external environment
environment

Conditions
Conditions in in the
the external
external environment
T
environment
that
that do
do not
not relate
relate toto existing
existing strengths
strengths
or
or favor
favor areas
areas of of current
current weakness.
weakness.
Strategic Planning Process

1. Define company mission

2. Set objectives
3. Design business portfolio
4. Plan functional strategies
Step 1 - Define the
Company Mission
❖ Purpose for existence
– What is our business?
– Who is our customer?
– What should our business be?
❖ Written mission statement
Mission Statement

❖ what the organization wants to

accomplish
❖ provides direction and guidelines
❖ market oriented not product
oriented
❖ not too narrow or too broad
❖ specific and realistic
 Coca-Cola’s Mission Stateme
“We exist to create value for our share owners on a long-term basis by
building
a business that enhances The Coca-Cola Company’s trademarks. This also is our
ultimate commitment.
As the world’s largest beverage company, we refresh the world. We do this by
developing superior soft drinks, both carbonated and non-carbonated, and
profitable non-alcoholic beverage systems that create value for our Company,
our bottling partners and our customers.
In creating value, we succeed or fail based on our ability to perform as
stewards of several key assets:
• Coca-Cola, the world’s most powerful trademark, and other highly
valuable trademarks.
• The world’s most effective and pervasive distribution system.
• Satisfied customers, who make a good profit selling our products.
• Our people, who are ultimately responsible for building this enterprise.
• Our abundant resources, which must be intelligently allocated.
• Our strong global leadership in the beverage industry in particular
and in the business world in general.”
Step 2 - Set Company
Objectives
❖ What do we want to achieve?
❖ hierarchy of objectives
❖ ‘Good’ objective
– specific
– realistic
– quantified
– measurable
– time framed
Step 3 - Design the
Business Portfolio
❖ collection of businesses and
products
❖ decisions
– add
– build
– maintain
– milk
– divest
Formal Portfolio Analysis

❖ BCG - growth/share matrix

– market growth rate
– firm’s relative market share
❖ GE - strategic business planning
grid
– industry attractiveness
– relative business strengths
CG Portfolio Matrix
Star

Problem Child
High
Market Growth Rate

10%

Cash Cow Dog

Low

10x High 1x Low 0.1x

Market Share Dominance
Strategic Options for Using
the Portfolio Matrix

• Build
• Hold
• Harvest
• Divest
Market Attractiveness GE Matrix

High

Medium

Low

Strong Medium Weak

Business Position
Product/Market expansion
grid
❖ Products (new or existing)
❖ Markets (new or existing)
❖ Four sectors
– Market penetration
– Market development
– Product development
– Diversification
 Strategic Alternatives - 4 Sectors

Present Product New Product

Market Product
Present Market
Penetration Development

Market
New Market Diversification
Development
Step 4 - Develop
functional strategies
❖ each department/function
❖ marketing - one functional area
❖ marketing’s role varies across
companies
❖ potential conflicts between
departments
Marketing Management
Process
1. Analyze market opportunities
2. Select target markets
3. Develop the marketing mix
4. Manage the marketing effort
Step 1 - Analyzing market
opportunities
❖ changing environment
– opportunities and threats
❖ changing firm situation
– relative strengths and weaknesses
❖ fit - match opportunities with firm’s
objectives and resources (strengths)
❖ market information system
Step 2 - Selecting target
markets

❖ firm cannot satisfy everyone

– mass marketing
❖ segment total market
– market segmentation
❖ target markets
– target marketing
– niche marketing
Market Segmentation
Process
❖ 1. define total market
❖ 2. segment market
– needs, characteristics
– homogenous groups
❖ 3. select target markets
❖ 4. develop positioning strategy
– ...place the product will occupy in the
consumers mind relative to
competing products
Step 3 - Developing the
Marketing Mix
❖ 4P’s
– product
– price
– placement (distribution)
– promotion
❖ designed to satisfy a target market
❖ integrated - blended together
Step 4 - Managing the
Marketing Effort

❖ competitive marketing strategies

– leader, challenger, follower, nicher
❖ marketing management functions
– analysing
– planning
– implementing
– controlling
Summary

❖ Planning - benefits, approaches,

kinds
❖ Four steps in the Strategic
Planning Process
❖ Four steps in the Marketing
Management Process