3 Planning, Sales Forecasting, and Budgeting - Planning Sales Forecasting and Budgeting Dr Mallika Srivastava Strategic Planning Planning is deciding

3 Planning, Sales Forecasting, and Budgeting - Planning...

This preview shows page 1 - 9 out of 27 pages.

Planning, Sales Forecasting, and Budgeting Dr Mallika Srivastava
Image of page 1
Planning is deciding now what, how, and when we are going to do Strategic planning is deciding about the organisation’s long-term objectives and strategies In a large organisation , planning is done at three or four organisational levels Corporate strategic plan Divisional and/or business units strategic plans Product functional plans Strategic Planning
Image of page 2
Planning in a large organization For effective planning , operations, and control, a large multi-product / multi-business firm divides its major products / services into divisions / strategic business units ( SBUs) Each SBU has a separate business, a set of competitors and customers, and a manager responsible for strategic planning, performance, and control Corporate office SBU A Product 1 Product 2 Product 3 SBU B SBU C
Image of page 3
Role of marketing in organizational planning Type of Planning Role of Marketing – Key Tasks Formal Name Corporate strategic planning Provide customer and competition information Support customer orientation Corporate marketing Divisional / SBU Strategic planning Provide customer and competition analysis Develop competitive advantage, target markets, value proposition, positioning Strategic marketing Product / functional or Operational planning Evolve and implement marketing plan including marketing-mix strategy, and sales strategy Marketing management
Image of page 4
Targ et mar ket stra tegy (Lon g- ter m) Marke ting mix strate gy (Short - term) Prod uct / servi ce strat egy Promoti on / IMC * strateg y Pric e stra tegy Distributi on strategy Sales promotio n strategy Adverti sing strateg y Personal selling / sales strategy Public relations & Publicity strategy Direct marketing strategy Marketing and sales strategies
Image of page 5
Classifying market segments and individual customers within a target segment Each firm should first decide on target market segments and if possible, to classify customers into high, medium, low sales & profit potentials Sales strategy is developed accordingly Relationship strategy Whether a selling firm should use transactional, value- added, or collaborative relationship depends on both the seller and the customer Each selling firm to decide which segments and individual customers respond profitably to collaborative relationship Components of sales strategy
Image of page 6
Selling Methods These are: (1) Stimulus response, (2) formula, (3) need-satisfaction, (4) team selling, (5) consultative Selection of appropriate selling method depends on relationship strategy Channel Strategy There are many sales / marketing channels. For example: company salesforce, distributors, franchisees, agents, the internet, brokers, discount stores Selection of a suitable channel depends on both the buyer and the seller, products / services, and markets
Image of page 7
Market demand for a product or service is the estimated total sales volume in a market (or
Image of page 8
Image of page 9

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture