1. the financial implications of marketing
Market Strategy
the financial implications of marketing

2. Market Strategy Your task is to prepare a five year plan:
You must explore several strategies
Set and quantify objectives
You must balance profitability with growth and survival
You will be helped by a computer
Leaving you to think and discuss

3. The Business Situation
A typical manufacturing company
The current, domestic market has stagnated
So you must investigate new markets
Exporting the current products
Selling directly using your own staff
Selling via non-exclusive agents
Selling via non-exclusive dealers
Launch New Domestic Products

4. Performance Measures Profitability Growth Survival Long Term
Return on Investment
Growth
Sales (units & value)
Market Share (unit & cash)
Worth (residual profit)
Survival
Cumulative Cash Flow
Long Term
Discounted Cash Flow (I.R.R. & N.P.V.)

5. Market Structure Total Market Served (penetrated) Market
Total potential sales
Growing over time
Served (penetrated) Market
Where the company is selling
Penetration of total market increases
Competitive Share
Proportion of served market that buys
Influenced by your marketing decisions

6. Market Influences Price Promotion Performance Inventory Availability
Debtor Policy
Launch Year

7. Using the Computer Choose & enter a team name The Planning Options
Review Current Plan
Compare Plans
What-If Analysis
Change Working Plan
Recess Planning

8. Review Current Plan Select from several reports Detail Results
Summary Results
Combined Detail
Combined Summary

9. Detail Results Shows for each of the five years Sales Revenue
Unit Market Share
Cash Market Share
Profit
Profit to Sales
Capital Employed
Cumulative Cash Flow
Return on Investment
Residual Profit

10. Summary Results Shows for the five years as a whole
Served Market Share
Total Sales Revenue
Average Unit Market Share
Average Cash Market Share
Total Profit
Average Profit to Sales
Worst Cash Flow
Internal Rate of Return
Net Present Value

11. Observations Think before you act (do not waste your plans)
Ask for help if you need it
There is no right or wrong answer
(your best plan will be the one that best meets the financial objectives you decide)
Enjoy the challenge