Download Planning at Product Level

Planning at Product Level
• Planning at product level is of two types:
– Strategic Planning: Lays out the broad marketing objectives
and strategy based on an analysis of the current market
situation and opportunities.
– Tactical Planning: Outlines specific marketing tactics,
including advertising, merchandising, pricing, channels and
service.
• Marketing Managers whether at the corporate,
division, business or product level follow a marketing
process.
• Working with in the plans set by the levels above
them, product managers come up with a marketing
plan for individual products, lines or brands.
Value Delivery Sequence
• Task of any business is to deliver value to the market
at a profit: Value Delivery Process.
(a) Traditional physical process sequence
Make the product
Design Procure
product
Make
Sell the product
Price Sell Advertise/
promote Distribute Service
It can be implemented only the markets having goods
shortages where consumers are not fussy about quality,
features or style.
●
It wouldn’t work in more competitive economies where people
face abundant choices.
●
Contd…
Value Delivery Sequence
(b) Value creation & delivery sequence
Choose the Value
Segmentation Selection
Positioning
Provide the Value
Product Service Price Sourcing
Distribution
Communicate the Value
Sales
Sales
Advertising
Force
Strategic marketing
Tactical marketing
Promotion
Steps in Marketing Process
Managing the Marketing Effort
Planning Marketing Program
Developing Marketing Strategies
Analyzing Market Opportunities
1. Analyzing Market Opportunities
Micro
Environment
Macro
Environment
2. Developing Marketing Strategies
Two basic elements of marketing strategy: Target market and marketing mix
variables.
(1)THE TARGET MARKET
• The group of people toward whom the firm directs its marketing efforts and
merchandise.
• Need to pay attention to growing market segments.
• Example: Growing Hispanic population in United States.
Target
Developing Marketing Strategies
(2) MARKETING MIX VARIABLES
• Marketing mix Blending of the four strategy elements—product, distribution,
promotion, and pricing—to fit the needs and preferences of a specific target
market.
Product Strategy
• Decisions about customer service, package design, brand names, trademarks,
patents, warranties, the life cycle of a product, positioning the product in the
marketplace, and new-product development.
Contd…
Developing Marketing Strategies
Distribution Strategy
• Ensure that consumers find their products in the proper quantities at the right
times and places.
• Involves modes of transportation, warehousing, inventory control, order
processing, and selection of marketing channels.
Warehousing
o
Inventory Control
o
Order Administration
o
Outbound transportation
o
Material handling
o
Packaging
o
Communication
o
Data processing
o
Distribution
Contd…
Developing Marketing Strategies
Promotion Strategy
• Link between sellers and buyers.
• Many companies use integrated marketing communications to coordinate
promotional activities and ensure customer receives a unified message.
Contd…
Developing Marketing Strategies
Pricing Strategy
• Methods of setting profitable and justifiable prices.
• Subject to regulation and public scrutiny.
• Good pricing strategy creates value for customers, and builds and strengthens
their relationship with a firm and its products.
3. Planning Marketing Program
Marketing
Expenditures
Division
of resources among various tools of
Marketing Mix: Product, Price, Place, Promotion
Allocation
of resources among various channels
and promotion media
Allocating Budget
Deciding on Budget
4. Managing Marketing Effort
Task of ensuring that the
company is achieving its
current sales, profits and
other goals
Annual Plan
Control
Strategic
Control
Task of evaluating whether the
company’s marketing strategy is
appropriate to market conditions
Profitability
Control
Task of measuring the actual profitability of
products, customer groups, trade channels
& order sizes.