MARKETING MANAGEMENT Sub Code: 10MBA16 MODULE 8 (6 Hours) Marketing Planning: Meaning, Concepts of Marketing plan, Steps involved

in planning. Marketing Organisation: Evolution of Modern Marketing department, Factors influencing the size of the marketing organisation, various types of marketing structures/organisation Marketing Audit: Meaning, Features of marketing audit, various components of marketing audit. Planning is a managerial activity which is a basic requirement for all organizations. Key elements of planning activity1. Timing 2. Tasks 3. Responsibility 4. Follow-up 5. Budgeting Levels of Planning Strategic Planning Marketing Planning Tactical Planning Basic elements of Strategic Planning 1. Mission 2. Strategic Business Units 3. Objectives 4. Strategic Planning Tools 5. Marketing Plans General Electric (GE) Portfolio of SBUs 1. 2. 3. 4. GE Appliances 5. GE Lighting GE Aircraft engines 6. GE Plastics GE Capital 7. GE Transportation Systems GE Global Services 8. GE Medical Systems

Marketing Planning A marketing plan is a written document containing the guidelines for the business centres marketing programmes and allocations over the planning period. Objectives of a Marketing Plan1. To define the current situation facing the product. 2. To define problems and opportunities facing the business. 3. To establish objectives.

4. 5. 6. 7.

To define the strategies and programmes necessary to achieve the objectives. To pinpoint responsibility for achieving product objectives. To encourage careful and disciplined thinking. To establish a customer-competitor orientation.

Steps in Marketing Planning

Analysis of the market situation

Developing marketing objectives

Formulation of marketing strategies

Preparing action programmes and Budgets

Developing Control Procedures

1. 2. 3. 4. 5. 6. 7. 8.

Components of Marketing Plan Executive summary Situation analysis Threats and opportunities analysis Objectives Marketing strategy Marketing action programmes Budget allocation Monitors and controls Annual Marketing Planning

It is the blueprint for a years marketing activity for a specified organizations division, department, a brand, a product line or a SBU. Purpose of the Annual Plan 1. It summarizes the marketing strategies and tactics that will be used to achieve specified objective in the coming year.

2. The annual plan also points to what needs to be done regarding the other steps in the management process. 3. The annual plan outlines who is responsible for which activities, when they are to be carried out, and how much time and money can be spent.

SWOT Analysis

Strategic Business Unit (SBU) It is a single business or collection of related businesses that can be planned separately from the rest of the company. It has its own set of competitors. It has a manger who is responsible for strategic planning & profit performance & who controls most of the factors affecting profit. BCG Model Growth-share matrix Market growth rate on the vertical axis indicates the annual growth rate of the market in which the business operates. Market growth serves as proxy for industry attractiveness. Relative market share (horizontal axis) refers to the SBUs market share relative to that of its largest competitor. Market share serves as proxy for competitive advantage. Growth-share matrix is divided into 4 cells, each indicating a different type of business.

Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, or more charitably called pets, are units with low market share in a mature, slowgrowing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off. Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom.

Marketing organization Evolution: 1. Simple sales department 2. Sales department with ancillary marketing functions VP (Sales) hires a MR Manager or a Marketing Director to manage marketing functions 3. Separate marketing department CEO appoints a VP (Marketing) - so VP (Sales) & VP (Marketing) both report to CEO 4. Modern marketing department/marketing organization VP (Marketing & Sales) heads both sales & marketing departments to reduce friction between Marketing & Sales. Reports to CEO Organizing Marketing Dept. Types of Marketing Organizations 1. 2. 3. 4. Functional organization Product-oriented organization Geographic (territory)- OR market oriented organization Complex organization

Functional organization: Functional specialists reporting to a Marketing VP, who coordinates their activities. Specialists will include: 1. Marketing admin. Manager 2. A & SP Manager 3. Sales Manager 4. MR Manager 5. Product Manager Geographic organization: NSM will have RSM, who in turn will have ASM reporting to them. Sales reps will report to ASM. Most common form in India. There could be some Regional Marketing Managers too, to provide local marketing expertise. Brand Management Organization Tasks of Brand Managers: 1. Developing long range/competitive strategy for products 2. Preparing annual marketing plan & sales forecast 3. Working with ad agencies 4. Stimulating product support amongst sales force & distributors 5. Gathering market intelligence 6. Initiating product improvements Complex organization: Many large companies that produce many products flowing into many different geographic and customer markets usually employ some combination of the functional, geographic, product and market organization forms.

MARKETING AUDIT: A comprehensive, periodic, independent, & systematic examination of a companys environment, objectives, strategies and activities to determine problem areas & to recommend a plan of action to improve the companys marketing performance. It is a major tool for strategic control. FEATURES OF MARKETING AUDIT: Comprehensive Systematic Independent Periodic Components of Marketing Audit I. Marketing Environment Audit II. Marketing Strategy Audit III. Marketing Organization Audit IV. Marketing Systems Audit V. Marketing Productivity Audit VI. Marketing Function Audit Marketing Environment Audit Macro environment Demographic Economic Environmental Technological Political Cultural Micro environment Markets Customers Competitors Channels Suppliers Facilitators / Marketing Firms Publics

Marketing Strategy Audit Business Mission Marketing Objectives and Goals Strategy Marketing Organization Audit Formal Structure Functional Efficiency Interface Efficiency

Marketing Systems Audit Marketing Information Systems Marketing Planning Systems Marketing Control System New Product Development System Marketing Productivity Audit: this audit examines the profitability of different marketing and the cost effectiveness of different marketing expenditures.
Profitability Analysis

Cost-Effectiveness Analysis

Marketing Function Audit Products Prices Distribution Integrated Marketing Communications Sales Force END OF MODULE 8