© 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 2: Marketing Planning Michael R. Czinkota and Masaaki Kotabe

© 2000 South-Western College Publishing Slide #2 Chapter Outline l Planning l Corporate Plan l Marketing Audit & SWOT Analysis l Marketing Strategies l Successful Planning l Marketing Plan Elements l Budgeting Approaches l Performance Analysis

© 2000 South-Western College Publishing Slide #3 Benefits of Planning BenefitsofPlanningBenefitsofPlanning ConsistencyConsistency CommitmentCommitment ResponsibilityResponsibility CommunicationCommunication

© 2000 South-Western College Publishing Slide #4 Three Approaches to Planning #1: Top Down #2: Bottom Up #3: Goals Down, Plans Up

© 2000 South-Western College Publishing Slide #5 Components of a Corporate Plan #1: Where the organization organization is now is now #2: Where the organization organization intends to go intends to go in the future in the future #3: How the organization organization will organize will organize its resources its resources

© 2000 South-Western College Publishing Slide #6 Corporate Plan Objectives Objectives Address Two Questions: #1: Where de we want to be? #2: When do we expect to get there?

© 2000 South-Western College Publishing Slide #7 Corporate Plan Objectives Characteristics of good objectives: l Measurable l Acceptable and agreeable l Consistent l Realistic

© 2000 South-Western College Publishing Slide #8 Objectives for Non-Profit Organizations l Surplus maximization l Revenue maximization l Usage maximization l Usage targeting l Full cost recovery l Partial cost recovery l Budget maximization l Producer satisfaction maximization

© 2000 South-Western College Publishing Slide #9 Corporate Mission “Our business is...” Corporate mission should cover: l Customer groups l Customer needs l Technologies to be used

© 2000 South-Western College Publishing Slide #10 Marketing Audit A marketing audit should contain a review of: Marketing environment Detailed marketing activity Marketing system

© 2000 South-Western College Publishing Slide #11 SWOT Analysis StrengthsWeaknesses OpportunitiesThreats Internalfactors: Externalfactors: Positive factors: Negative factors:

© 2000 South-Western College Publishing Slide #12 Marketing Strategies P roduct New products Packaging P rice Skim or penetrate Competitive pricing P romotion Platform & media Sales force P lace Channels Customer service

© 2000 South-Western College Publishing Slide #13 Successful Planning Successful marketing planning requires: CommitmentTime Understanding

© 2000 South-Western College Publishing Slide #14 Marketing Plan Elements l Mission statement l Summary of performance l Summary of financial projections l Market overview l SWOT analysis l Portfolio summary l Assumptions l Setting objectives l Financial projections

© 2000 South-Western College Publishing Slide #15 Budgeting Approaches Affordability Percentage of revenue Competitiveparity Zero-basedbudgeting Budget

© 2000 South-Western College Publishing Slide #16 Performance Analysis Important elements of performance: l Sales analysis l Market share analysis l Expense analysis l Financial analysis l Relationship analysis