Principles of Marketing Section 3 By: Ms. Eman Elfar

Business planning Ongoing process of making decisions that guide the firm both in the short term and for the long term.

There three type of business planning Strategic planning Functional planning Operational planning Strategic planning Functional planning Operational planning

Strategic planning Strategic planning focuses on objectives of the organization as a whole. It aims to achieve long-term growth and survival. Strategic planning focuses on matching firm’s resources and capabilities to market opportunities to achieve organization's objectives Top management defines firm’s purpose and objectives Ex: increase firm’s total revenue by 20% over next five years.

Strategic planning steps Define the mission Evaluate the internal and external environment Set organizational or SBU objectives.

Define the mission The mission statement is the organization’s purpose. it is a formal document that describes the firm’s purpose and what it wants to accomplish in the larger environment. Mission statement answer three basic question: What business are we in? What customers should we serve? How do we develop form’s capabilities and focus its efforts? Mission should not to be too broad, too narrow. It can be written in term of customer needs

Strategic business unit Strategic business unit is the key business that make up the company. It can be a division, product line, single product or brand.

FUNCTIONAL PLANNING Functional planning is segmental and it is undertaken for each major function of the organization like: production/operation, marketing, finance, etc. Functional planning is used to support strategic plan It is detailed annual plan It is used by middle-level managers Ex: the company should has 50% share of mobile market .

Operational Planning Operational Planning is related to day-to-day activities that are needed to execute functional plans. Frist line mangers are a manger that are responsible about develop and implement operational planning Operational plan may include a detailed annual, semiannual, or quarterly plans Ex: each sales person should sell 50 mobile phone