lecture 3-BBA

8/7/2019 lecture 3-BBA

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Developing Marketing

Strategies and Plans

2


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C orporate and Division Strategic

Planning

Corporate planning activates:

1. Defining C orporate mission

2. Establishing Strategic Business Units

3. Assigning resources to SBU4. Assessing growth opportunities


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Strategic Planning

3

The managerial process of creating and maintaining a

fit between theorganizations objectives

and resources and evolving

market opportunities.


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The Strategic Planning, Implementation,and C ontrol Processes


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Business Unit StrategicPlanning


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C haracteristics of SBUs

It is a single business or collection of relatedbusinesses

It has its own set of competitorsIt has a leader responsible for strategicplanning and profitability


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The Business Unit Strategic Planning Process


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Defining the Business Mission

8

A nswers the question,What business are we in

and where are we going?

Focuses on the market(s)rather than the good or service

Strategic Business Units mayalso have a mission statement


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G ood Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful


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AMA s Mission Statement

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Pepsi C o s Mission Statement

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PepsiCos overall mission is to increase the value of our shareholders investment. We do this through salesgrowth, cost controls and wise investment of resources.

We believe our commercial success depends uponoffering quality and value to our consumers andcustomers; providing products that are safe, wholesome,economically efficient and environmentally sound; andproviding a fair return to our investors while adhering tothe highest standards of integrity.

http:\\www.pepsico.com


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Infosys Technologies Limited

To achieve our objectives in an environmentof fairness, honesty, and courtesy towardsour clients, employees, vendors, and societyat large.


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Biocon

To be an integrated biotechnology enterpriseof global distinction.


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eBay

W e help people trade anything on earth.

W e will continue to enhance the onlinetrading experiences of allcollectors,dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers .


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Product Orientation vs. Market Orientation

Company Product Market

X erox W e make copyingequipment

W e improve officeproductivity

ColumbiaPictures

W e make movies W e entertainpeople

EncyclopediaBritannica

W e sell encyclopedias W e distributeinformation

Carrier W e make air conditionersand furnaces

W e provide climatecontrol insidehomes


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SWOT Analysis

16

Identifying

internal strengths (S)and weaknesses (W)and also examining

external opportunities (O)and threats (T)


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SWOT Analysis

South- W estern College Publishing

S

WOT

Things the company does well.

Things the company does not do well.

Conditions in the external environment thatfavor strengths.

Conditions in the external environment thatdo not relate to existing strengths or favor areas of current weakness.

Internal

External


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SWOT Analysis

Production Costs

Marketing SkillsEmployee Capabilities

Financial Resources

A vailable Technology

Company/Brand Image

StrengthsStrengthsandand

WeaknessesWeaknessesIN TER NALIN TER NAL


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SWOT Analysis

OpportunitiesOpportunitiesA ndA nd

ThreatsThreatsEXTER NALEXTER NAL

Social

DemographicEconomic

Technological

Political/ L egal

Competitive


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G oal Formulation

The objectives can be;

Profitability, sales growth, marketingshare improvement, risk containment,innovation, reputation etc.


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G oal Formulation C riteria

1. They must be arranged Hierarchically,from the most to the least important

2. Objectives should be statedquantatively whenever possible

3. G oals should be realistic

4. Objectives must be consistent


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Strategic Formulation

1. Overall C ost Leadership

2. Differentiation

3. Focus


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Program Formulation

ABC (Activity-Based C ost) accountingshould be applied to each marketingprogram.


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ImplementationFeedback and C ontrol

Documents

lecture 3-BBA