CLASS

LIVE SESSION
MM01
 Analysis Marketing
Opportunities
• Marketing planning
• Demand Measurement & Forecasting
• Marketing Information System
• Indian Marketing Environment
MARKETING PLANNING
 Planning – Designing the Blueprint
for the Future

•Planning is a process of designing the blueprint for the future.

•The basic function of management includes planning,
organizing, executing, coordination & controlling the future
course of action.
•Planning is the process of envisioning the future, establishing
objectives and goals for the firm, designing organizational &
marketing strategies and tactics to be implemented at different
points of time in future to achieve the goals.
 What is Strategic
Planning?
• It is the managerial process that helps
to develop a strategic and viable fit
between the firm’s objectives, skills,
resources with the market opportunities
available. It helps the firm deliver its
targeted profits and growth through its
businesses and products.
 Management Level & Focus of Planning

Managemen Planning Key Marketing

t Level Focus Question

Top Level of Corporate Plan What is the organization’s

management mission? How do we
organize the business?
Middle Level of Business Unit What is our competitive strategy
Management Plan for growth in that particular
business unit? What are our
competitive advantages?
Lower level of Operational Plans How can we best support
Management both the corporate plan and
the business unit plan? What
are our operational
schedules?
 Corporate Planning Process

Steps in Corporate Planning Process

1.Establishing corporate mission, objectives and goals
2.Establishing Strategic Business Units
3.Assigning resources to each Strategic Business Unit
4.Planning for Business Growth
Mission statement should posses
the following seven
characteristics:
• It should not be an impossible statement.
• It should be short and limited.
• It should be motivating.
• It should be enough to define the functions, the
clientele and the method of operation.
• It should be clear and should stress the company’s
policy.
• It should be distinctive and should define company’s
major competitive scope.
• It should indicate how objectives are to be
accomplished.
 Corporate Objectives
• A higher market share
• High growth opportunities
• Increased ability to compete in global markets
• Product innovation
• Recognition as a leader in technology
• Better customer services
• Good reputation with customers
• Low cost compared with competitors
• High quality goods and services
• Brand image and loyalty
• Wider profit margin
 Corporate Objective of Unilever
Operation in India

• Unilever objective is to add vitality to life. We meet

everyday needs for nutrition, hygiene and personal
care with brands that help people feel good, look
good and get more out of life.
• Our deep roots in local cultures and markets
around the world give us our strong relationship
with consumers and are the foundation for our
future growth.
 5 questions that the firm
must ask itself
• What is our business?
• Who is our customer?
• What does our customer need?
• What will our business be?
• What should our business be?
Stage 1 Assess Organizational
Opportunities and Resources

Market Opportunity

+
“Uncontrollable” Timing
Environmental Events
(Circumstances)
 Assessing Organizational
Opportunities and Resources
Core Competencies
(Relative skills) Strategic Windows

Marketing
Mix

Will it fit?
• A temporary period of optimal fit
between the key requirements of
a market and a firm’s capabilities
 Assessing Organizational
Opportunities and Resources
…identifies a company’s competitive
advantage that can be absolute or relative

Physical or Psychological
A Competitive Advantage exists
when your core competencies (relative to
competition) match marketplace opportunities
 Business Unit Level Strategic Planning Process

Business
Mission

Internal Environment External Environment

(Strengths/Weakness
SWOT (Opportunities and
Analysis
Analysi) Threats Analysis)

Formulation of
Business Goal

Formulation of
Business Strategy

Formulation of Programs

Implementation of the plan

Programs

Feedback and control

Levels of Strategic Planning
(Stage 1 SWOT Analysis)
Stages 3-4
Developing Corporate and
Business-Unit Strategies
• Market orientation: The organizationwide
generation of, dissemination of and
responsiveness to market intelligence
pertaining to current and future customer
needs.
 Corporate & Business-Unit
Strategy
Strategic Business Unit (SBU)
A SBU is self supporting profit center organized
around some meaningful common element such
as….
Industry Technology
SBU

Customer
need
Target
Market
• Analyze the current business portfolio & shape the
future business portfolio: build, hold, harvest, divest
• SBU ‘s change positions overtime
 Remember
The What Is A Market ?
Market
A market is . . .
 Access to a Sufficient Number of
potential customers sharing similar
wants/needs
 Who Want the Available Product
 Who have Sufficient Resources (Rs)
 who are willing to exchange value (Spend Rs)
 and are eligible (legal) to buy
 The Planning Process

• Analysing Market opportunities

• Developing Marketing strategies
• Planning Marketing Programs
• Managing the Marketing Effort
 The Marketing Process
Key Elements • The strategic planning
and business portfolio
analysis processes help to
identify and evaluate
• Analyzing marketing marketing opportunities.
opportunities
• The purpose of the marketing
• Selecting target markets process is to help the firm
• Developing the marketing plan how to capitalize on
mix these opportunities.
• Managing the marketing
effort
 The Marketing Process
Key Elements • The segmentation process
divides the total market into
market segments.
• Analyzing marketing • Target marketing determines
opportunities which segment(s) are
pursued.
• Selecting target markets
• The market positioning for the
• Developing the marketing product is then determined.
mix
• Managing the marketing
effort
 The Marketing Process
Key Elements • Competitor analysis guides
competitive marketing strategy
development.
• Analyzing marketing • Strategy leads to tactics by
opportunities way of the marketing mix:
• Selecting target markets – The “Four Ps” – product, price,
• Developing the marketing place, promotion (seller
mix viewpoint)
• Managing the marketing – The “Four Cs” – customer
effort solution, cost, convenience,
and communication (customer
viewpoint)
 The Marketing Process
Key Elements • Marketing analysis
– Provides information helpful in
planning, implementation, and
• Analyzing marketing control
opportunities • Marketing planning
• Selecting target markets – Strategies and tactics
• Developing the marketing • Marketing implementation
mix – Turns plans into action
• Managing the marketing • Marketing control
effort
– Operating control
– Strategic control
• Marketing audit
 SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats
 Components of SWOT Analysis

Strengths Weaknesses Opportunities Threats

Resources Deficiencies in Favourable situation Unfavorable
resources , skills situation
and capabilities
Identification of a new Entry of new
Relative market segmentation
competitive Financial resources competitors
advantages
Changes in
Sources of outfit competitive or Slow market
Image regulatory growth
circumstances
Inadequate
Infrastructure measures viewed Major
against changes in Technological technological
changes
product/market changes
Market leadership scope Appearance of
substitute
products
 Internal Capability Evaluation

In te r n a l R e s o u rc e s

R a te o f r e tu r n in E x c e s s
o f th e c o m p e titv e le v e l

In d u s try a ttr a c tu v e n e s s C o m p e titiv e a d v a n ta g e s

B a r r ie r s to E n try M o n o p o ly V e r tic a l C ost D iffe re n tia tio n

b a r g a in in g p o w e r A d v a n ta g e s A d a n ta g e s

- P a te n ts - M a r k e t s h a re - F ir m s iz e P ro ce ss - B ra n d s
-B rn a d s F in a n c ia l te c j\h n o l o g y - P r o d u c t te c h n o l o g y
- R e ta il i n g r e s o u rc e s - S iz e o f p la n ts - D is tr ib u tio n
c a p a c ity - A c c e s s to lo w c o s t in p u ts - S e r v ic e C a p a b ilitie s
 Market Opportunity Analysis
(MOA)
• Can the benefits involved in the opportunity
be articulated to a defined target market?
• Can the target market be located and
reached with cost-effective media and
trade channels?
• Does the company have access to the
critical capabilities and resources needed
to deliver the customer benefits?
 Market Opportunity
Analysis (MOA)
• Can the company deliver the benefits
better than any actual or potential
competitors?
• Will the financial rate of return meet or
exceed the company’s required
threshold for investment?
Planning Is a Continuous Cycle
1. Assess
Marketing
Opportunities
and Resources

5.Implement
5. Implement 2. Develop or
Marketing Revise Mktg.
Marketing Goals Relative
Plan
Plan to
Performance

4. Develop or 3. Revise or
Revise Plan Formulate
for Imple- Marketing
mentation and
Strategy
Control

Short Range – Medium Range - Long Range

 The Strategic Marketing
Process

6. Execute the plan

7. Control set performance standards,

evaluate the results & reduce any gaps
Theory Reality

Intended Realized
Implementation
Strategy Strategy

Desired Performance Actual Performance

 Marketing Unit Organization
There is no single best way! It depends…

Alternatives
Alternativesfor
forOrganizing
Organizing
the
theMarketing
MarketingUnit
Unit

Centralized
Centralized Marketing
Marketing Product
Product Geographic
Geographic Customer
Customer
or
or Functions
Functions Groups
Groups Regions
Regions Types
Types
Decentralized
Decentralized

Low delegation of responsibilities,

top management delegates little
authority to levels below it.
Decentralized has high delegation of authority
 Measuring Marketing Plan
Performance
• Sales analysis
• Market share analysis
• Marketing expense-to-sales analysis
• Financial analysis
 Tracking Market Share

• Overall market share

• Served market share
• Relative market share
Methods of Improving Return
on Assets

• Method 1: Increase the profit margin by

increasing sales or cutting costs
• Method 2: Boost the asset turnover by
increasing sales or reducing assets that
are held against sales levels
 Marketing Decisions Flowing to the Marketing

Marketing Marketing Mix

Marketing Information Systems
Environment Factors

•Product
•Price
•Market Potential Internet Marketing •Place
Record Intelligence •Promotion
•Target Market •Packaging
System System
•People
•Competitive •Process
Environment •Physical Evidence
Analytical Marketing
Marketing Research
Intermediaries System System

Marketing Decisions Flowing to the Marketing Environment

Major Environmental Factors Influencing Business

External
Environment

Demographical
Environment Competitive
Environment
Cultural
Environment

Internal
Internal
Economic
Organizational
Organizational
Environment
Processes
Processes

Social
Environment
Legal
Environment

Technological
Environment
 Dimensions of Marketing Environment
Technological Environment
•To what extent are existing technologies maturing?
•What technological developments or trends are affecting or could affecting or could affect our
industry?
Political Environment
•What changes in regulation are possible?
•What will their impact be?
•What tax or other incentives are being developed that may affect marketing strategy?
•What are the political risks of operating in a government jurisdiction?
Economic Environment
•What are the economic prospects and inflation outlets for the countries in which the firm
operates?
•How will they affect our marketing strategy?
Cultural Environment
•What are the current, emerging trends in lifestyles, fashions and other components of culture?
•Why are they emerging?
•What are their implications?

Demographic Environment
•What demographic trends will affect the market size of the industry or its sub-markets?
•What demographic trend represents opportunities and threats to our business?
 Income Classes (at 2001-02
prices)
Income Rs per annum $ per annum (@ Rs
class 48/$)
Low <=45.000 <=940

Lower- 45,000 – 90000 941 – 1,875

middle
Middle 90,001 – 135,000 1,876 – 2,810

Upper- 135,001 – 175,000 2,811 – 3,650

middle
High >175,000 >3,650
 Mapping India’s Income Class

The Classes 1994-95 1999-00 2005-06

Rich (Above Rs. 2,15,000) 1 million 3 million 6 million
Benefit Maximisers : Own car, PCs household households household
s s
Consuming (Rs. 45,000 – 2,15,000) 29 million 55 million 75 million
Cost benefit optimizers: Have bulk of household households household
branded consumer goods, 70% of two – s s
wheeler , refrigerators, washing machines
Climbers (Rs. 22,000 – 45,000) 48 million 66 million 78 million
Cash – constrained benefit seekers : Have at household households household
least one major durable mixer, sewing s s
machine/ television)
Aspirants (Rs. 16,000 –22,000) 48 million 32 million 33 million
New entrants into consumption : Have household households household
bicycles, radio, fans s s
Destitute (Less than Rs.16,000) 35 million 24 million 17 million
Hand-to-mouth existence: Not buying household households household
s s
 Urban India’s Income Classes by Size (in
million)

1995-96 2001-02 2006-07

The very rich 0.8 (5) 1.9 (11) 4.0 (23)

The consuming 16.6 (93) 26.5 (150) 40.8

class (230)
The climbers 16.8 (94) 17.4 (98) 13.7 (77)

The aspirants 7.1 (40) 3.9 (22) 0.7 (4)

The destitute 5.3 (30) 2.7 (16) 0.9 (5)

 Rural India’s Income Classes by Size (in
million)

1995-96 2001-02 2006-07

The very rich 0.4 (2) 0.7 (4) 1.2 (7)

The consuming 15.9 (92) 19.9 (115) 34.8

class (202)
The climbers 37.3 (216) 57 (331) 68.1(395)

The aspirants 36.9 (214) 29.3 (170) 19.5(113)

The destitute 27.7 (161) 21.4 (124) 15.5 (90)

 Indian Market in a Transition
The Important 1988 -93 1993-98 1998-00 After 2001
Phase
Infancy Adolescence Maturity

ECONOMY/ INCOME Runway growth Slowing Down of Growth Recovery but not
GROWTH like before
CONSUMER Spurting Cooling Down Steady and
DEMAND discontinuous slow with ups
growth and downs
COMPANY Abundance for all Early bird Worms are Winner and
PERFORMANCE find worms harder to losers begin to
find emerge
COMPANY Ride the wave Ride faster Operational Make Strategic
RESPONSE on a slower performance choices/priorities
wave improvement
s
COMPANY’S Being there Being better Unique
STRATEGIC
POSITION
 Members of Competitive Environment

General Public

Competitors
•Consumers
Potential
Suppliers Company Intermediaries
•Consumers
Past Consumers
Other
Players
Market Entry Decisions

If we are in Business

Should we
Compete ?

In what Product-
Market should
If Yes
We compete?

How Should we
Compete?
 Demand Forecasting

• Demand forecasting is a process of estimating

the future demand or sales patterns of a firm
by taking into account the past information,
opinion of industry observers and evolving
consumption pattern for a desired time period.
 Company Demand and Sales
Forecast
• Company demand is the company’s
estimated share of market demand at
alternative levels of company marketing
effort in a given time
• Company sales forecast is the
expected level of company sales based
on a chosen marketing plan and an
assumed marketing environment
 Market Potential

• Market potential refers to the upper limit of

market demand . It is important for us to
understand that there are three key terms
involved in defining the market potential.
These include market, market expenditure by
the industry and defined market environment.
Measures of Market Demand
Potential Market

Available Market

Qualified Available Market

Target Market

Penetrated Market
Market Forecast: Market forecast refers to the estimates of future sales of a
company’s products in the market.

Primary
demand gap

Market Potential

Industry Sales

Sales (in units)

Company Sales

Actual Forecast
Secondary
demand gap

Current Time Period

 Forecasting and Demand
Measurement
• Which market to measure?
– Potential market
– Available market
– Target market
– Penetrated market
 Estimating Current
Demand
• Total market potential is the maximum
number of sales that might be available to all
of the firms in an industry during a given
period, under a given level of industry
marketing effort and environmental conditions
• Area market potential is the market potential
of a specific location:
– Market buildup method
– Multiple-factor index method
 Market Demand

• Market demand is always defined with

reference to a price and a time period.
• Demand for a commodity may be defined as
the ‘Quantity of a commodity that will be
bought at a particular price and during a
given period or point of time.
Estimating Future Demand

• Survey of buyers’ intentions

• Composite of sales force opinions
• Expert opinion
• Past-sales analysis
• Market-test method
 Sales Forecasting

• Accurate sales forecasting is essential

for a firm to enable it to produce the
required quantities at the right time and
arrange well in advance for the various
factors of production, viz., buildings,
equipment, machine accessories, raw
materials, labor etc.
 Forecasting Methods

For e cast i n g Met h ods

Sur v ey M et h ods St a t i s t i c a l M et h ods

nsum er Sur v ey M eth od Colle c t i v e Opi n i o n M eth od Reasoned Opin i o n ( D elp hi ) Meth od M ar k et Exper im ent s M et h od Ti m e Ser i e s Analy sis Regr e ssi o n Analy s

G r a phi c al M eth od Sem i Aver a ges M eth od M ovi n g Aver a ges M eth od Least Squar e s
MARKETING RESEARCH
What is Market Research?

• Simply a matter of finding out as much

as you can before committing yourself
to an irretrievable step
• When you do not have answers through
your own Market Information and
Intelligence System
 What to find out?

• What does the customer need?

• Who is the target audience and how
much can you find out about them?
• What is the competition?
• Are there any gaps in the market?
• Would the product be acceptable in the
market?
 The MR Process
• What is the Marketing Problem?
• What is the Research Problem?
• Developing the Research Plan
• Research Approach
• Research Instruments
• Collecting the Information
• Analysing the information
• Presentation of findings
 Marketing Information
System

A marketing information system (MIS)

consists of
people, equipment, and processes
to gather, sort, analyze,
evaluate, and distribute
needed, timely, and accurate information
to marketing decision makers
 MIS Resources

• Internal company records

• Marketing intelligence
• Marketing research
 Internal Records

• Order-to-payment cycle
• Sales information system
• Databases and warehouses
• Data mining
 Improving the Quality of
Marketing Intelligence
• Train sales force to scan for new
development
• Motivate channel members to share
intelligence
• Network internally
• Establish a customer advisory panel
• Utilize government data resources
• Purchase information
• Collect customer feedback online
Marketing Research Defined

Systematic design, collection,

analysis, and reporting of data
and findings relevant to a specific
marketing situation facing a company
 The Marketing Research
Process
• Define the problem
• Develop research plan
• Collect information
• Analyze information
• Present findings
• Make decision
 Step 2

• Identify data sources

• Design research approach
• Develop research instruments
• Design sampling plan
• Select contact methods
 Data Sources

• Secondary data • Primary data

 Research Approaches

• Observation
• Focus group
• Survey research
• Behavioral data
• Experimentation
 Research Instruments

• Questionnaires
• Qualitative research techniques
• Mechanical devices
 Sampling Plan

• Sampling unit: Who is to be surveyed?

• Sample size: How many people should
be surveyed?
• Sampling procedure: How should the
respondents be chosen?
 Contact Methods

• Mail questionnaire
• Telephone interview
• Personal interview
• Online interview
THANKYOU