1. PART 4) Marketing planning and forecasting – strategies and plans
Corporate, business and marketing strategies
Process of marketing strategic decisioning
Marketing planning
Components of marketing plan
Implementing and controlling of marketing plan

2. Why is marketing planning necessary?
systematic thinking by management
better co-ordination of company efforts
development of better performance standards for control
sharpening of objectives and policies
better prepare for sudden new developments
managers have a vivid sense of participation

3. Criticisms of marketing planning
formal plans can be quickly overtaken by events
elements of the plan my be kept secret for no reason
gulf between senior managers and implementing managers
the plan needs a sub-scheme of actions

4. Marketing Planning in General
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 2-4 on p. 45 and Transparency 10.
Whole-Company
Management
Planning
(1) Marketing
(2) Implement Marketing
Plan(s)
(3) Control Marketing
Adjust Plans
As Needed
Match resources to
market opportnities
Summary Overview
The marketing management process refers to the planning, implementation, and control of marketing activities. As indicated on the slide, these activities are continuous and decisions made in the past in one area can have implications on the other areas as well.
The Marketing Management Process
The ongoing process of marketing management requires attention to three key areas:
Planning. Planning is required because marketing managers must seek attractive new opportunities. Customers’ needs and wants change. Marketing managers must anticipate such changes and plan how the firm will move to meet them with satisfying products. At the company-wide level, this is called strategic (management) planning -- the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Implementation. Implementation is the process of putting marketing plans into action. Instructor’s Note: This topic is covered in greater detail in Exhibit 2-10.
Control. Control deals with assessing and evaluating marketing performance. Marketing managers are responsible for seeing to it that an implemented strategy is working. Goals and objectives are typically set and one or more measures of progress are taken to assess performance. When performance falls short of expectations, it is up to the marketing manager to take corrective action.

5. Strategic thinking - origins
70´s in the USA – due to shock waves
oil crisis
double digit inflation
economic recession
tough Japanesse competition
key sectors in economy deregulated

6. SBU (Strategic Business Unit)
business unit within the overall corporate identity which is distinguishable from other business - large enough and homogeneous enough to exercise control over most strategic factors affecting their performance
it serves a defined external market
the competitors can be recognised
responsible manager - managed as self contained planning unit

7. WALMARK company was established in 1990
it has extended its activities into multiple fields (foodstuffs and agriculture)
strategic orientation at pharmacy: sale of the agricultural SBU in 2001 and the non-alcoholic beverage SBU in 2004
fully concentrates now on the market of food complements, medicaments and food for sportsmen
Pharmacy medicaments – at least 10 % of turnover
Now – number one in food supplements in CZ, second in SK, HU
By 2012 number one in central Europe

8. Strategic Planning: BCG Matrix
Relative Market Share
High Low
Stars
High growth & share
Profit potential
May need heavy
investment to grow
E.g. Palm Pilot, LCD Mon.
Question Marks
High growth, low share
Build into Stars or phase out
Require cash to hold
market share
E.g. Mainland TVBrands ?
Cash Cows
Low growth, high share
Established, successful
SBU’s
Produce cash
E.g. Desktop
Computers
Dogs
Low growth & share
Low profit potential
E.g. 17 TFT monitor, Electronic
Diary, etc.
Market Growth Rate
Low High

9. GE (General Electric) Matrix
Business Strength
Strong
Medium
Weak
5.00
High
3.67
Medium
Market Attractiveness
2.33
Low
5.00
3.67
2.33
1.00

10. Market Attractiveness
Annual market growth rate
Overall market size
Historical profit margin
Current size of market
Market structure
Market rivalry
Demand variability
Global opportunities

11. Business Strenght Current market share Brand image Brand equity
Production capacity
Corporate image
Profit margins relative to competitors
R & D performance
Managerial personal
Promotional effectiveness

12. Market Attractiveness
High
Business Strengths
Low
High
Attractive
Moderate Attractive
Market Attractiveness
Unattractive
Low

13. Growth Matrix (Ansoff Matrix)

14. Assignment of responsibilities, tasks and timing
Awareness of problems, opportunities and threats
Essential marketing information may have been missing
if implementation is not carefully controlled by managers, the plan is worthless!

15. Marketing Plans Executive Summary Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls

16. Conclusion
Marketing planning – essential activity of any marketing manager
SBU – defined as autonomous unit
BCG, GE & Ansoff
Marketing plans