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MARKETING PLANNING (MID)

Dewan Sakila Assessor

Task 1 a)

Why should organizations plan their marketing ? The need for environmentally focused planning (in brief, use bullet point to describe)

Purpose of environment analysis


To what extent does or could the environment affect the organizations corporate strategy What are the ways in which the capabilities of the organization can best be used to meet the environmental challenges and opportunities faced

Types of Environment

Simple or Static Dynamic Complex

Environmental Uncertainty
Low levels of uncertainty uncertainty Increasing

Increasing Complexity
Simple static condition

Increasing Dynamism

Environmental Analysis
Stage 1 Audit the environment to identify 1. The factors that have influenced the organizations development & previous performance

2. The probable direction in which the environment will develop

3. The likely key influences

Environmental Analysis (Contd.)


Stage 2 Assess the nature of the environment-

The degree & source of any uncertainty that is likely to exist

Environmental Analysis (Contd.)


Stage 3 Examine the nature of the environment -

The nature & structure of each market sector the organization operates in

Environmental Analysis (Contd.)


Stage 4 Audit the environment to identify -

1. Strategic group analysis 2. Market share analysis

Environmental Analysis (Contd.)


Stage 5 Identify in detail how environmental forces will affect the organization

The sorts of opportunities and threats that will emerge

Environmental Analysis (Contd.)


Stage 6 Decide upon the future ideal strategic position

Determine the implications for strategies, structure & systems

The competitive arena (Competitor Identification)


Product from competitors * technically similar products Products substitute * technically dissimilar products Generic competitors * products that solve the problem or eliminate it in a dissimilar way Potential new entrants * technically similar products * technically dissimilar products

Company capability profile


Key Success Factor YOUR Company Competitor company 1 Competitor company 2 3

Innovativeness Financial strength


Technical support Product quality Well qualified workforce Access to international market

1 1 2

3 3

1 1

2 2 3

1 1

2 2

3 3

1 1 1 1

2 2 2 2

3 3 3 3

1 1 1 1

2 2 2 2

3 3 3 3

1 1 1 1

2 2 2 2

3 3 3 3

Market Barriers

1.
2.

3. 4.

5.

Five broad areas: Cultural (lack of belief in planning) Behavioral (lack of top mgt support & cross functional development) Cognitive (lack of knowledge & skill ) Systems & Procedures (lack of data or appropriate system) Resources (lack of time, people, money)

Overcome techniques

Competitors strategy Market observation