Ch. 11 - Business Development and Planning Flashcards
What is business development?
The search for opportunities and structuring of business entities to exploit those opportunities with current or near-term organizational capabilities
What are the three primary goals of marketing at every stage of the product lifecycle?
- Obtain new customers
- Continue to meet the needs of existing customers
- Coordinate offerings that are in different stages of the PLC
A useful forecast is determined by what three factors?
- time
- effort
- and money invested
Marketing forecast attempt to account for what four things?
- technological change
- Time horizons
- barriers to entry/exit
- elasticity of demand
True or False: all forecasts are wrong, You just cannot know by how much and in which direction
True
Name the four types of forecasting
2 broad types: top-down and bottom-up
- strategic forecast
- marketing planning forecasts
- marketing operation forecasts
- sales forecast
Name some features of strategic forecasts:
- top-down
- usually 3-5 years
- more qualitative than quantitative
- attempt to reconcile reality with desired strategic direction
Name some features of marketing planning forecasts:
- usually associated with a product or market
- significant inputs from market research and competitive analysis
- attempt to predict what customers and competitors will do
- usually 1-3 years
Name some features of marketing operation forecasts (MOF):
- usually the responsibility of the field marketing organization
- tactical in nature
- source of significant market information (often from customers)
- serves many parts of the organization
- usually 1 to 3 year periods updated monthly
Name some features of sales forecasts:
- shorter range than marketing operation forecasts
- usually derived from analysis of historical data
Name some predictive models used in the statistical manipulation of historical data:
- rolling averages
- econometric models
- delphi approach
Draw the business development tracking grid
y-axis: markets x-axis: products new existing new 1 2 existing 3 4 1. new business 2. translation 3. core churn 4. core
List the stages in the PLC and TALC
PLC TALC
- development / technophiles
- introduction / visionaries
- growth / pragmatists
- maturity / conservatives
- decline / laggards
Marketing and business development throughout the PLC: Development stage
The company working on early state products in a new product category must:
- find a marketing strategy
- learn about customers
- find initial target markets
- explore how to shape the business to pursue the opportunity
Marketing and business development throughout the PLC: Introduction stage
The purpose of stages to get exposure and begin to educate potential customers about the technology, it’s near-term products and potential benefits.
