Planning at Product Level Planning at product level is of two types: Strategic Planning: Lays out the broad marketing objectives and strategy based on an analysis of the current market situation and opportunities. Tactical Planning: Outlines specific marketing tactics, including advertising, merchandising, pricing, channels and service. Marketing Managers whether at the corporate, division, business or product level follow a marketing process. Working with in the plans set by the levels above them, product managers come up with a marketing plan for individual products, lines or brands.

Value Delivery Sequence Task of any business is to deliver value to the market at a profit: Value Delivery Process. (a) Traditional physical process sequence Make the product Sell the product Procure Design product Make Price Sell Advertise/ promote Distribute Service It can be implemented only the markets having goods shortages where consumers are not fussy about quality, features or style. It wouldn’t work in more competitive economies where people face abundant choices. Sales Contd…

Value Delivery Sequence (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Product Service Price Sourcing Distribution Sales Sales Advertising Force Promotion Segmentation Selection Positioning Strategic marketing Tactical marketing Sales

Steps in Marketing Process Managing the Marketing Effort Planning Marketing Program Developing Marketing Strategies Analyzing Market Opportunities

1. Analyzing Market Opportunities Micro Environment Macro Environment

2. Developing Marketing Strategies Two basic elements of marketing strategy: Target market and marketing mix variables. (1)THE TARGET MARKET • The group of people toward whom the firm directs its marketing efforts and merchandise. • Need to pay attention to growing market segments. • Example: Growing Hispanic population in United States. Target

Developing Marketing Strategies (2) MARKETING MIX VARIABLES • Marketing mix Blending of the four strategy elements—product, distribution, promotion, and pricing—to fit the needs and preferences of a specific target market. Product Strategy • Decisions about customer service, package design, brand names, trademarks, patents, warranties, the life cycle of a product, positioning the product in the marketplace, and new-product development. Contd…

Developing Marketing Strategies Distribution Strategy • Ensure that consumers find their products in the proper quantities at the right times and places. • Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels. Warehousing Inventory Control Order Administration Outbound transportation Material handling Packaging Communication Data processing Distribution Contd…

Developing Marketing Strategies Promotion Strategy • Link between sellers and buyers. • Many companies use integrated marketing communications to coordinate promotional activities and ensure customer receives a unified message. Contd…

Developing Marketing Strategies Pricing Strategy • Methods of setting profitable and justifiable prices. • Subject to regulation and public scrutiny. • Good pricing strategy creates value for customers, and builds and strengthens their relationship with a firm and its products.

3. Planning Marketing Program Marketing Expenditures Division of resources among various tools of Marketing Mix: Product, Price, Place, Promotion Allocation of resources among various channels and promotion media Deciding on Budget Allocating Budget

4. Managing Marketing Effort Task of ensuring that the company is achieving its current sales, profits and other goals Annual Plan Control Strategic Control Profitability Control Task of measuring the actual profitability of products, customer groups, trade channels & order sizes. Task of evaluating whether the company’s marketing strategy is appropriate to market conditions