Module - 3

Business Marketing Planning

Business Marketing Planning
Business Marketing Planning:
Planning process, Demand
analysis, Segmenting, Targeting
and Positioning, Industrial product
strategy and Product policy, New
product development, Managing
business services, PLC of industrial
products.
Business Marketing Planning
A marketing plan is a written document
that details the necessary actions to
achieve one or more marketing
objectives. It can be for a product or
service, a brand, or a product line.
Marketing plans cover between one and
five years. A marketing plan may be
part of an overall business plan. Solid
marketing strategy is the foundation of a
well-written marketing plan.
Planning: Process of anticipating
future events and conditions and of
determining the best way to achieve
organizational goals.

Marketing planning: Implementing
planning activities devoted to
achieving marketing objectives.
2-5
Strategic Planning versus Tactical
Planning:
-Strategic planning: Process of
determining an organizations
primary objectives and adopting
courses action that will achieve
those objectives
-Tactical planning: Process that
guides the implementation of
activities specified in the strategic
plan.
-Top management
Greater proportions of their time
engaged in planning
Usually focus their planning activities on
long-range strategic issues
Middle level managers
Focus on operational planning; creating
and implementing tactical plans
Supervisors
Developing the specific programs to
meet goals in their areas of responsibility

Steps in the Business Marketing Planning Process
1. Defining the Mission of the
Organization:
Mission: the essential purpose that
differentiates one company from
others
The mission statement specifies the
organizations overall goals and
operational scope and provides
general guidelines for future
management actions.


2. Determine Organizational Objectives
An organization lays out its basic
objectives, or goals, in its mission
statement
These objectives in turn guide
development of supporting marketing
objectives and plans
Well-developed objectives should
state specific, quantitative intentions
along with deadlines for achieving
them

3. Assessing Organizational
Resources and Evaluating
Environmental Risks and
Opportunities:
This step involves a back-and-
forth assessment of strengths,
risks, and available
opportunities.
4. Formulating, Implementing, &
Monitoring a Marketing Strategy:
Marketing strategy: a firms overall
program for selecting and satisfying a
target market
A marketing strategy is aimed at satisfying
consumers in the selected target market
through a careful balance of the elements
of the marketing mix each of which
represents a subset of the overall
marketing strategy

Industrial product strategy &
Product policy:
Industrial product - An economic
report that measures changes in
output for the industrial sector of
the economy. The industrial
sector includes manufacturing,
mining.
Forresters definition
The concept of dynamically linking business-
focused IT services to the underlying IT
infrastructure.
A business service:
May be equivalent to an IT service
(although the reverse is not true)
May be a portion of a business process
(e.g., part of billing)
Must support a significant, visible business
metric for a business owner

Characteristics of BSM
Business process mapping
Discover and describe business
processes focus on key metrics,
whole business process not needed
Infrastructure resource mapping
Discover and handle all infrastructure
resources across all providers
(internal and external), IT, and
telecom

Dynamic linking of process to infrastructure
Mapping of dependencies between
business process and infrastructure
resources with near real-time
maintenance
End-to-end management
Online monitoring of business process
health- Special reporting supporting root-
cause and business-impact analysis of
outages and resource failures
The Status Of Service Management
Initiatives By Function/Process:
Business Service Management
Challenges:
PLC of industrial products
Product life cycle: progression of
products through introduction, growth,
maturity, and decline stages

Product lifecycle management
(PLM) is the process of managing
the entire lifecycle of a product from
its conception, through design and
manufacture, to service and
disposal.
PLM integrates people, data,
processes and business systems
and provides a product information
backbone for companies and their
extended enterprise
Product lifecycle management is one of the
four cornerstones of a corporation's
information technology structure. All
companies need to manage communications
and information with their customers (CRM-
Customer Relationship Management), their
suppliers (SCM-Supply Chain Management),
their resources within the enterprise (ERP-
Enterprise Resource Planning) and their
planning (SDLC-Systems Development Life
Cycle).
10-21
Figure 10.3 Product Life Cycle
Stages of the Product Life Cycle
PLC Stages

Introduction
Growth
Maturity
Decline
Low sales
High costs per
customer
Negative profits
Innovator
customers
Few competitors
10-23
PLC Objectives and Strategies
PLC Stages

Introduction
Growth
Maturity
Decline

Objective: to create
awareness and trial
Offer a basic product
Price at cost-plus
Selective distribution
Awarenessdealers
and early adopters
Induce trial via heavy
sales promotion
10-24
Stages of the Product Life Cycle
PLC Stages

Introduction
Growth
Maturity
Decline
Rising sales
Average costs
Rising profits
Early adopters,
customers
Growing
competition
10-25
PLC Objectives and Strategies
PLC Stages

Introduction
Growth
Maturity
Decline
Objective: maximize
market share
Offer service, product
extensions, warranty
Price to penetrate
Intensive distribution
Awareness and
interestmass market
Reduce promotions
due to heavy demand
10-26
Stages of the Product Life Cycle
PLC Stages

Introduction
Growth
Maturity
Decline

Peak sales
Low costs
High profits
Middle majority
customers
Stable/declining
competition
10-27
PLC Objectives and Strategies
PLC Stages

Introduction
Growth
Maturity
Decline

Objective: maximize
profit while defending
market share
Diversify brands/items
Price to match/beat
competition
Intensive distribution
Stress brand
differences
Increase promotions to
encourage switching