Entrepreneurship & Commerce in IT - 03 - Writing a Business Plan, Creating a Marketing Plan, Marketing Planning Process, Situational Analysis, SWOT, PESTEEL, Marketing Audit

Entrepreneurship & Commerce in IT

03

Sachintha Gunasena MBCS http://lk.linkedin.com/in/sachinthadtg

Business Plan• Title Page and Table of Contents

• Executive Summary

• summarize the vision for the company

• General Company Description

• provide an overview of the company and the service it provides to its market

• Products and Services

• describe, in detail, the unique product or service

• Marketing Plan

• describe how the company will bring its product to its consumers

Business Plan Cont.d

• Management and Organization Plan

• describe the structure of the organization and the philosophy that governs it

• Operational Plan

• describe how the business will be operated on a day-to-day basis

• Financial Plan

• illustrate the working model for finances and the need from investors

The Marketing Plan

Marketing Plan• Industry Analysis & Market

Research

• The Marketing Mix

• Preparation of the Marketing Plan

• Technology & Marketing

Marketing

Marketing• The management process through which goods and services move from concept to the customer.

• - Read more: http://www.businessdictionary.com/definition/marketing.html#ixzz3jXikFe5p

• Marketing is the corporate philosophy and the central business function of an organisation that creates value for its customers and other stakeholders through competitive, profitable and sustainable exchange processes.” - SLIM definition.

• - See more at: http://www.ft.lk/article/239502/SLIM-creates-history-with-its-own-definition-of-%E2%80%9Cmarketing%E2%80%9D#sthash.J0GthKl9.dpuf

4 P’s of Marketing• (1) identification, selection and development of a Product

• (2) determination of its Price

• (3) selection of a distribution channel to reach the customer's Place

• (4) development and implementation of a Promotional Strategy

4 P’s Example - Apple Products

• Product

• developed to include improved applications and systems

• Price

• set at different prices depending on how much capability the customer desires

• Place

• sold in places where other Apple products are sold

• Promotion

• to promote the device, the company featured its debut at tech events and is highly advertised on the web and on television

before that…

Management

• a set of activities including planning and decision making, leading and controlling directed at organisation’s resources: human, financial, physical and information, with the aim of achieving organisational goals in an efficient and effective manner

• ( R.W. Griffin -2005)

Management Functions

• Planning

• Organising

• Staffing

• Leading

• Controlling

What is the most important?

• Planning

• why?

• because everything else depends on it.

Purpose of a Marketing Plan

• Goal

• a desired future state that the organization attempts to realize in a given environment

• Plan

• a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions

• Goals specify future ends.

• Plans specify today's means of achieving Goals.

Planning• [in context of management]

• incorporates determining the organization's goals and defining the means for achieving them.

• “if you fail to plan you are planning to fail”

• Therefore, planning is an essential strategic activity and it is an intrinsic part of efficient and effective management.

• [in context of marketing]

• to achieve marketing goals in an efficient and effective manner

so Marketing…

The Connection of the Marketing Plan with a

Corporate plan• types of plans in organizations

• Strategic Corporate Plans

• Business Unit Plans

• Operations

• Logistics

• HR

• Financial

• Production

• Marketing

Marketing Plan

• a blue print that elaborates a systematic, inter connected, logical, step by step processes for achieving marketing goals

analyses

• internal and external environment

• markets

• competitors

specifies• the marketing objectives

• necessary strategies

• tactics

• resource allocations

• schedules

• tasks

embeds• Embeds the controls and other actions required in connection with attaining marketing goals in an efficient and effective manner

• It specifies what should be done today to achieve goals ahead and it is the marketer’s road map for desired destination.

Understanding the Essential Steps of a

Marketing Plan• Hiebing and Cooper (2003) succinctly sates that a marketing plan should be a disciplined, target market driven, interlocking (not just integrated) and comprehensive plan in order to make it a successful tool in the process of achieving marketing goals.

• it has to be a comprehensive plan that gives importance to each and every element of a plan.

• nothing is taken for granted and nothing or very little is left for chance.

Generic Marketing planning process

• The corporate objectives should be in line with the vision and mission of the company.

• The marketing plan stems from the corporate objectives

• Marketing plan is a tool to achieve corporate objectives

• Marketing plan has a cyclic character.

Marketing Planning Process

where are we where are we nownow

where do we where do we want to gowant to go

did we get did we get therethere

how do we how do we ensure ensure arrivalarrival

how do we how do we get thereget there

Where are we now?

Situational Analysis

• Marketing Audit = Situational Analysis

• Internal Analysis (Internal Audit)

• Environmental Analysis (External Audit)

• PESTEEL Analysis

• Competitor Analysis

• Market Analysis

• SWOT Analysis

Situational Analysis cont.d

• Before anything is planned, firm needs to understand where it stands now in relation to its internal and external environment

• Internal Environment (strengths & weaknesses)

• Financial

• Managerial

• Marketing

• Production

• Human Resources

• Information Technology

Situational Analysis cont.d

• External Environment (Threats and Opportunities)

• Comprehensive PESTEEL analysis

• Political

• Economical

• Social and Cultural

• Technological

• Environmental

• Ethical

• Legal

• aspects has to be analysed in relation to the industry, market and the product

Comparative Analysis of Competitors

• Major competitors their market standing , reputation, brands, profitability etc.

• Their strategies as to product, pricing, distribution, promotion

• Trade practices and associations etc

• Michael Porters Five Force Competitive Model also should be analysed to find out the attractiveness of the industry

Five Force Competitive Model

Market Analysis• [Customers/ Demand]

• Market size, different segments, growth, trends. Future market and demand

• Customer preferences, attitudes and buyer behavior, needs and wants, decision making units and the process, disposable income etc.

SWOT• a good snap shot of the firm

• is taken from the Internal and External Analysis.

• Strengths (need to Consolidate)

• Weaknesses (need to Minimize)

• Opportunities (need to Exploit)

• Threats (need to Overcome)

SWOT Factors

• Internal- Strengths / Weaknesses

• External - Opportunities / Threats

Activity 4

• take a business idea/ example business

• do a situational analysis of it

Next Up…

• Where do we want to be?

Thank you.

Sachintha Gunasena MBCS http://lk.linkedin.com/in/sachinthadtg