3. Formal Planning
The process by which marketing activities are identified and
decided upon
Identifies the customer wants and anticipates his future needs
and wants
Sound Planning
Helps the organization to anticipate and make responsive
action to marketing problems and changes in the business
environment
5. An annual plan is an organization’s financial plan for
the fiscal year.
The current marketing situation is identified and the
company sets its goals and objectives towards the
currently prevailing situation in the marketing
environment.
The company sets control mechanism as bases for
performance evaluation.
THE ANNUAL PLAN
6.
7.
8. Long-range planning (LRP) is a process and discipline
that companies use to determine the best strategy
for succeeding in the markets they serve and to
ensure they have the capabilities needed to support
their strategic objectives.
It covers a period of about five (5) years or more.
It sets the company direction for a longer period
which shall be updated by the annual plan.
Budgets and targets are set within the five (5) year
level.
THE LONG-RANGE PLAN
9.
10. Strategic planning is the process of anticipating and
developing long-range objectives and goals.
It is the set of all planning activities that identifies
its vision and mission, its company portfolio and
attendant strategies.
STRATEGIC PLANNING PROCESS
13. Define the
organizational
mission
Analyze the
marketing solution
Set the organizational
objectives
Define the suitable
strategies to achieve
the desired objectives
STRATEGIC COMPANY PLANNING
Four Essential
Steps in Strategic
Company Planning
15. Define the annual
specific target
objectives for
accomplishments
Develop specific
measurable and
achievable plans
Develop strategies
and tactics to
achieve the plans
Prepare annual
budgetary
requirements
Assign
responsible
personnel to carry
out the plan
Develop
evaluation
strategies for
implementation
STRATEGIC ANNUAL PLANNING
Responsibilities of Managers in Annual
Planning
17. 1. Analyze Previous Year Performance
The previous year performance must be analyzed in terms of
variances in the allocation of resources and the success or failure in
the implementation of the program objectives.
2. Set Accurate Timelines
The timing in the marketing industry must consider the celebration of
the different holidays such as Christmas, New Year, fiestas, wedding
months, Valentine’s Day or many occasions in the local calendar.
3. Develop Distribution Strategies
After analyzing the past marketing campaign, it is important that the
marketing channels and promotional programs be revised to provide
a new twist in the marketing campaign.
4. Create a Workable Financial Budget
Budgeting financial resources for the annual plan takes time and
careful analysis.
TIPS FOR BETTER RESULTS
19. The executive summary contains the annual trust of the program
prepared by the higher management as a guide for junior
executives in the preparation of the annual plan.
EXECUTIVE SUMMARY
20. Managers of each brand
analysis or strategic
business unit (SBU) make
a detailed program
analysis as to variances in
the program
implementation together
with budgetary
expenditures.
SITUATION ANALYSIS
21. The program objectives are specific and detailed set of goals that
are derived from the annual program objectives prepared by the top
executives.
PROGRAM OBJECTIVES
22. The strategies in the
annual planning must
indicate the target
market in terms of the
marketing mix.
PROGRAM STRATEGIES
23. Program tactics defer from strategies cover specific activities that
are action oriented.
PROGRAM TACTICS
24. It is a financial program that
defines the projected sales
target, expenses to carry out the
sales program, and the
supposed profitable index that
will be generated.
FINANCIAL SCHEDULE
25. The manager must
prepare a time plan
chart or time diagram
on specific dates for
its activities.
PROGRAM TIMETABLE
26. It is a measuring instrument that will serve as a guide in the total
accomplishment of the program.
EVALUATION PROCEDURE
29. Demand forecasting is the establishment of product
sales in the future or a period of one year. It is the
basis in the development of strategic plans. It will
serve as a guide in the preparation of the annual
marketing budget and in allocating material resources
in the production of marketing goods.
31. It is a physical place where people meet to sell
and buy the product for their needs and
consumption.
OLD DEFINITION
32. The marketing definition had enlarged its connotation to
mean the market is a set of all actual buyers of the product
or services.
A market is a set of buyers while the company that handles
the product distribution is a set of sellers.
Market potential is the total sales volume that all
organizations selling a product during the specified time
and place could expect to achieve under the ideal sales
condition. It also refers to the customer in the market
population for the various products available, while sales
potential refers to one particular brand of product.
Sales potential is the portion of the market share that the
marketing organization expects to penetrate and make
sale.
34. It is the major activity of top management in forecasting market
demand based on the analysis of the total market condition and
analysis.
TOP-DOWN APPROACH
35. It is the forecasting method wherein the management gets information
directly from sales people who are in touch with the customers or the
dealers and distributors of the product
BOTTOMS-UP APPROACH
36. Forecasting is the art of estimating future demands by
anticipating what the buyers want to buy under a given
set of situation.
37.
38.
39. •This calls for projecting
the countries inflation
rate which is the
determinants of pricing
strategies.
•Interest rates also affect
the business condition as
industries have to
contend with what they
can afford to spend for
their production
requirements.
Environmental
Forecasting
• Market forecasting is
the art of determining
the people’s needs
and wants.
• All forecast under
these conditions point
to what people say
about the product or
service.
Marketing and
Industrial
Forecasting
•The company carries its
product or brand in the
market.
•Company sales forecast
must include such
factor as consumer
spending habits,
income index of the
market and the amount
of savings generated for
future use.
Company Sales
Forecasting
THREE-STEP PROCEDURE
MARKETING ORGANIZATIONS USE
41. Market factor analysis entails determining what these factors are and
measures its relationship to corporate sales activities
Two Important Methods:
a. Direct Derivation Method
It is the translation of market demand by determining the number of
product users using statistical data available.
Managers under this method do not have to know the rudiments of
statistics to understand the forecast data as it simply points to simple
mathematical calculation.
b. Correlation Analysis
It is a statistical refinement of the direct deviation methods as it involved
analysis of data based on research findings.
It gives a more accurate estimate of the market demand.
MARKET FACTOR ANALYSIS
42. This process involves asking potential customers about the
product that the marketing organization produces at the price
index at a given time.
Three Important Conditions when Survey Results tend to be
Accurate:
a. There are relatively few buyers in the market
b. The buyers are honest with their buying intentions
c. A record exists that shows a consistent relationship between
their actual buying behavior and their stated intentions
SURVEY OF THE BUYERS
INTENTION
43. This method is used when the marketing
organization is launching a new product or the
innovation of an existing product
The research process will determine the total market
perceptions of its acceptability for wider population
TEST MARKETING METHOD
44. This method is entirely based on the previous year’s
total sales and the profit index generated.
It is the simplest and easiest to apply and
understand.
POST SALES DATA ANALYSIS
45. This is the Bottom-Up Approach where the sales force
provides the information about the forecast demand for
the product.
SALES FORCE OPINION AND ITS
COMPOSITE INDEX
46. Participative executives may get the opinion of experts,
salesman, dealers, and distributors to drum up a more
reliable sales forecast and develop marketing
strategies to achieve the sales target.
EXECUTIVE JUDGMENT AND
EXPERT OPINION
48. It is the state of mind of the potential buyer who
likes to buy the product for his needs and wants.
Potential market is the set of consumers who profess
some level of interest for a particular product or
service.
INTEREST
49. Potential buyers must have the money to buy the
product or service.
INCOME OR MONEY TO BUY
50. The potential buyer must have access to the goods or
product he wanted.
ACCESS OR PLACE OF
DISTRIBUTION
