Fundamentals of POM and its pedagogy (and

internal evaluation)
 Interactive lecture and students engagement (discuss, elaborate, explain, etc)

 Student’s presentation (on prescribed contents, debate, dialogues……)

 Field visit and report writing

 Case studies/ Problems solving

 Internal Exams

 Attendance and other commitments as per the campus rules

Chapter- 4
PLANNING
&
MAKING DECISIONS
`
 Concept of Planning
 In simple sense, Planning is the basic function of management

 It is the first and foremost functions of management

 Planning is deciding in advance- what to do, when to do, how to do, by

whom to do, where to do……

 It is a systematic thinking and bridges the gap between the present and future.

 Planning is the process by which managers define goals and takes necessary

steps to ensure that these goals are achieved.

 In conclusion, Planning is the process of setting goals, defining strategies
and outlining the steps needed to achieve the organizational goals. It is an
intellectual process as to think in advance about the things to be done in
future
 It involves thoughtful considerations of various factors, resources and
potential challenges to create a roadmap for accomplishing objectives
effectively.
 Characteristics Of Planning

 Future Oriented

 Pervasive activity

 Continuous process

 Time frame

 Based on environmental analysis

 Goal oriented

 Involvement of top management

 Importance of Planning
 Goals focus

 Better coordination

 Increases efficiency

 Environmental adoption

 Avoid random activity

 Basis for control

 Levels of Planning
 Mission

 Goals

 Strategy

 Policy

 Procedure

 Rules

 Programs


1. Mission

A mission typically refers to a specific task, goal or objectives that an individual or organization
aims to accomplish.

2. Goals

Goals are the result to be achieved by organization in certain period of time.

3. Strategy

A strategy is a plan or approach designed to achieve a specific goal or objectives. It involves making
a choices and allocating resources for the desired outcomes.

4. Policy

A policy is a set of guidelines, principles or rules established by an organization to guide decision

making and actions in a particular context.
5. Procedure
Procedures are the steps for handling activities systematically. It is also
known as SOP (Standing Operating Procedures).
6. Rules
Rules are guidelines to carry out specific activities.
7. Programs
Programs are integrated action plans as large set of activities. Programs
are set in order to set priorities of activities.
8. Budget
Budget are the set of instrumental tools which includes the financial plans
for the specified period.
 Planning Horizon
 Planning horizon is the time for which the plan is prepared.
 In other words, planning horizon refers to the length of time over which a
plan or strategy is expected to be effective or relevant.
 In different contexts, it could be short-term, medium-term or long-term.
1. Long-term horizon
• Here, plans are formulated for long time specially for more than five years
• This plans are prepared by top-level of the organization
• Mission and strategies are long-term plans
• Following dimensions are included in long term horizon
• Demand/product review, Supply review, Capacity review, etc.
2. Medium-term Horizon plan

• The plans which are prepared specially for 2 to 4 years are medium-term horizon
plan.

• It concentrates the following issues:

• Demand plan, Product plan, Operations plan, Inventory plan, etc.

3. Short-term Horizon Plan

• This plans are prepared for the short-term horizon i.e. less than one year

• Budgets and operational plans are the examples of short-term plan

• Here, focus is given for the followings issues:

• Demand plan, Inventory plan, Operational plan, etc.

 Types of Plan
A. On the basis of managerial hierarchy
i) Corporate level plans
• Long term plan prepared to justify the existence and growth of organization.
• Prepared by top-level which includes mission, vision, goals and strategies
• Also known as “Strategic Plan” because such plans set the actions to attain
organizational goals.

ii) Department level plan

• Prepared by middle level
• Such plans translate strategic plan into specific goals
• Here, plans are prepared on the basis of strengths and weakness of the particular
department so it is also called “Tactical Plan”.
iii) Operational level plan
• Plans which are prepared by operational units to attain plans of their
department.
• Normally prepared on daily basis
• Such plan are of short-term and identify the specific procedure and process
required for the operational unit.
B. On the basis of frequency of use
i) Single use plans
• Such plans are prepared just for one time use and are prepared to solve
particular problem in particular situation.
• Such plans have no use after using it once.
• E.g. Plan prepared for the functions of annual day, terminal examination in
college, job rotation plan, etc.
ii) Standing use plans
• Such plans are prepared for long time use i.e. repetitive activities like mission,
strategy and goal of the organization.
• Such plans are suitable for programmed decisions and routine functions.
• E.g. Customer care, Innovation of technology, etc.
C. On the basis of flexibility
i) Flexible Plans
• Plans that can be modified or changed according to the needs of situation are
flexible plans.
• Also called “Directional Plans” and such plans have no effects on long-term
goals and objectives of the organizations.
ii) Specific Plans
• Plans which can be used for long time without any change, or modification
then it is called Specific plans.
• They are designed to achieve long term objectives.
• Example: Organizational vision, mission and goals

D. On the basis of time horizon

i) Long-term plans
ii) Medium term plans
iii) Short term plans
E. Contingency Plan
• A contingency plan is a predefined strategy or set of actions designed to
address potential risks, uncertainties or unexpected events.
• It outlines steps to be taken to minimize damage, recover quickly and ensure
continuity in the organization.
• If there will be obstacles in implementation of chosen plan, then contingency
plan will be implemented.
F. Derivative Plan
• Derivative plans are the sub-plans which are prepared for achieving
facilitating main plans.
• In other words, it typically refers to a secondary or alternative plan that is
developed to address potential challenges or changes in circumstances.
• It is prepared only after formulation of derivative plans.
 Pitfalls and their improvement in planning
 Pitfalls in planning refer to common mistakes or challenges that can undermine the
effectiveness of a planned strategy.
 The problems or mistakes in the plan which increase the chance of failing plans are called
pitfalls in planning.
 Followings are the most common pitfalls in planning:-
o Overlooking the planning process
o Failing to distinguish between short and long term planning
o Picking wrong team
o Neglecting the follow-up process
o Mixing up strategic and operational follow-up
o Incomplete information
o Lack of flexibility
o Ignoring risks
o Inadequate resource allocation
Levels/Hierarchy of Management

Top
level

Middle Level
Management

Lower Level Management

 Top Level Management
o This is the highest level in the organization hierarchy.
o It includes BOD and other chief executives.
o It is also known as the brain of the organization.
o They are responsible for defining the objectives, formulating plans, strategies and policies of
the organization.
o Functions:
 To formulate vision, mission, goals, strategies and policies.
 Control and coordinate the activities of all the departments.
 Maintaining the relation with the outsiders.

 Middle Level Management
o It helps to create a link between the top and lower level management.
o It includes departmental and division heads and managers.
o They are responsible for implementing and controlling plans and strategies
formulated by the top executives.
o Functions:
 Execute the plans of the organization as per the policies and directions of the
top management.
 Make plans for departments/units.
 Communicate goals and policies to the lower level.
 Evaluate performance of lower managers as well as inspiring lower level
managers for better performance.
 Lower Level Management:
o It is also called operational level management
o It includes: supervisors, foreman, section officers and superintendent.
o Functions:
 Assign jobs and tasks to the workers
 Guide and instruct workers for day to day activities
 Maintain good relation within the organization
 Train the workers
 Arrange necessary resources for getting the things done
 Motivate workers for work efficiency
 Concept of Decision Making
 Decision making is the process of choosing a course of action from among alternatives to
achieve a desired goal or to solve a problem.
 In other words, decision making is the process of selecting a course of action from
multiple alternatives to achieved a desired outcome which involves assessing information,
considering options and choosing the most suitable path based on criteria, preferences and
objectives.
 It is the most important managerial process for moving the organization from existing
state to desired state.
 Managerial decisions are the output of decision making process of organization so it is
regarded as one of the challenging job.
 Features of Decision Making
 Selective process
 Intellectual process
 Dynamic process
 Continuous process
 Goal oriented activity
 Freedom in decision making
 Negative and positive
Steps or Process of Rational Decision Making
 Types of Decision Making
1. On the basis of frequency of recurrence
a. Programmed decisions
• Decisions are normally repetitive in nature and are taken as a routine job.
• Decisions are made by the middle and lower level managers and have short-term impact.
• Decisions are taken with reference to the related policy and the rules of the management.
• E.g. granting leave to an employees, recording office supplies, purchase of daily
materials, etc.
b. Non-programmed decisions
• Decisions are non-repetitive and un-structured.
• Decisions are taken by top-executives
• Decisions can be taken considering general problems solving process, judgement and
creativity.
2. On the basis of nature of decisions
a. Strategic Decisions
• Decisions which are made by top level management is Strategic Decisions
• Prepared for long-term purposes.
• E.g. Long-term goals, objectives, strategic plans, etc.
b. Tactical Decision
• Decisions are made by department level managers.
• Normally 1 to 3 years of term.
c. Operational Decisions
• Operational decisions are taken to solve the problem of day to day operations.
• Made by operational level supervisor
• E.g. daily duty management, machine arrangement, etc.
3. On the basis of participants
a. Individual decisions
• Decisions are mainly made by a single person
• Individual decision making refers to the process by which a person makes
choices or selects a course of action from various available alternatives.
• Individual decisions can be influenced by personal experiences, emotions,
information and external factors.
b. Group decisions
• Decisions which are taken collectively by group of people are known as
group decisions.
• It typically involves collaboration, discussion and arrive at a consensus or
majority agreement.
 Decision Making Situations/Conditions

 Information Availability

 Time constraints

 Risk Tolerance

 Goals and objectives

 Alternatives

 External Influence
 Decision Making Styles
 Analytical style
• Emphasizes gathering and analyzing data before making decisions.
 Directive Style
• Involves making decisions quickly and focus for the short-term.
• Use minimum information and assess and analyze only few alternatives.
 Conceptual Style
• Focuses on considering a broad range of possibilities and future implications.
• Focuses on long term and try to find out the creative solutions of the
problems.
 Behavioral Style
• Considers the impact on people and relationship when making decisions
 Collaborative Style
 Types of Problems
1. On the basis of frequency
a. Routine Problems
• Problems which occur on a regular basis are known as routine problems.
• They can be foreseen and can be solved through established rules, policies and
strategies.
b. Exceptional problems
• Problems which occur occasionally and exceptionally are known as
exceptional problems.
• Such problems cannot be foreseen and cannot be solved by existing rules and
policies.
2. On the basis of Time Frame
a. Short term problems
• Short-term problems refer to immediate challenges or issues that impact a situation,
project or organization in the near future.
• These issues typically have a limited time frame and require prompt attention for
resolution.
• Examples: operational disruptions, sudden changes in market conditions, etc.
b. Medium term problems
• Medium term problems are challenges that fall between short-term and long-term
issues.
• This problems extend beyond immediate concerns but doesn’t reach into the
distant future.
• Examples: managing a project with a timeline for several months, changing market
trends, etc.
c. Long term problems
• The effect of the problems remains for long time
• Such problems are related with the rules, regulations, policies, etc of the
organization.
• Need to solve with due care with the consultation of senior management.
3. On the basis of Impact
a. Partially impact problems
• If the impact of the problems remains only in one or few departments or units
of the organization then it is called Partially impact problems.
b. Overall impact problems
• Impact of problem remains to overall organization.
• Examples: Problems regarding goals, objectives, directives or policies affects
to all the department and units.
4. On the basis of Urgency

a. Urgent Problems

• If the problems need to be solved very quickly, then it is called Urgent Problems.

• Examples: Defects in machinery, imports of raw materials, absenteeism of

employees, high turnover ratio, etc.

b. Non-urgent problems

• If the problems are not urgent to solve then it is called Non-urgent problems.

• Managers may delay to find the solutions.

• Examples: problems regarding goals, objectives, legal procurement, etc.

5. On the basis of source of problem

a. Technical problem

b. Human problem

c. Environmental problem
Meaning and Task of Marketing
Management
Marketing Management:
 Management of marketing activities is Marketing Management.
 Marketing Management is a process of developing strategies & planning
for product/service, advertising, promotion, sales, etc. to reach desired
customer segment.
 In other words, it is an art & science of choosing target markets and
getting, keeping and growing customers through creating, delivering and
communicating.
 Philip Kotler- “ Marketing management is the process of planning,
implementing and controlling marketing activities or practices to achieve
the desired organizational goal.”
Tasks/Process/Components of Marketing
Management
1. Marketing Planning:-
 It is a systematic process for developing and coordinating marketing decisions.
 Marketing planning refers to a strategic planning of a marketing organization
formulated for achieving the desired goal in the long run.
 Marketing planning process involve the following jobs:
 Situational analysis i.e. assessing or scanning the environmental forces of the
market
 SWOT Analysis i.e. analyzing company’s strengths, weakness, opportunities
and threats
 Establishing the marketing goal or target to be achieved over the time.
 Designing the marketing programs (product, price, promotion, distribution,etc)
 Allocation of resources for each marketing program.
2. Implementing the marketing plans and programs:
 Implementation of plans and programs means executing or putting the
plans and programs into action in a coordinated manner.
 Various actions should be taken as follows for the implementation
 Recruitment and selection of manpower and assign them the right jobs.
 Create efficient work teams and assure effective participation.
 Develop effective communication system to timely communicate to the
staffs.
 Develop an effective leadership and maintain motivation among the staff
3. Marketing Control:
 Marketing control is a process of establishing standards, measuring
actual performance, identifying deviations or mistakes and taking
corrective actions.
 They are just like “Siamese Twins” of marketing management.
 Marketing control is done through the monitoring and evaluation of
marketing performance during and after the plan period.
 Following are the methods of marketing control:-
 Annual plan control: (It aims to measure and control the annual plans)
 Profitability control
 Efficiency control
 Strategic control
 Marketing Challenges of 21st
Century
Michael Porter has point out the 5 marketing challenges:

 Threats of new entrants in business

 Threats of substitute products that the competitors bring in business line

 Increased bargaining power of the buyer

 Bargaining power of the suppliers

 Rivalry among competing firms in industry

 1.1 Major challenges of 21st
 Century
Customers are being more savvy or informative than the marketers
 Customers are increasingly demanding better quality and reliability in the
products and services then buy
 Customer wants, needs and expectations are changing more rapidly
 Medias are being more fragment and expensive for advertising the products
 Competition is now global rather than just domestic
 Change in technology, internet and e-commerce creates a great impact on
business practice
 Lack of resources
 Language barriers
 Engagement differs across markets
1.2 Challenges for a
Marketer
 Budget Allocation

 Differentiation

 Brand Recall

 Brand Positioning

 Team is Inexperienced or Understaffed

Firm’s Responses/ Ways to overcome the
Marketing Challenges
 Developing marketing plans that are designed to build long-term profitability.
 Developing cogent arguments to protect, or increase, the investment in marketing.
 Develop a framework of marketing strategy that balances the needs of customers
and the organizations.
 Developing the right metrics to monitor progress and provide accountability.
 Developing effective strategies that engage those outsides of the marketing that
were crucial to delivering the promise to consumers.
Concept, Relevance and Practices of
Relationship Marketing
Concept of Relationship Marketing
 Relationship marketing is the process of building long-term satisfying
relations with key parties i.e. customers, suppliers and distributors in
order to retain their long-term preference and business.
 Relationship marketing is the ongoing process of engaging in
cooperative and collaborative activities and programs with immediate
and end-user customers to create mutual economic value.
 The goal of relationship marketing (customer relationship marketing) is
to create strong, even emotional, customer connections to a brand that
can lead to ongoing business, free word-of-mouth promotion and
information from customers that can generate leads.
5 levels of Relationship Marketing/
Customer-Relationship Building
 Basic Marketing

 Reactive Marketing

 Accountable Marketing

 Proactive Marketing

 Partnership Marketing
Customer Development Process
Contributions/ Advantages of Relationship Marketing

 It helps building harmonious relationship not only with the

customers, but also with the distributors, stakeholders and other
segments of the society.
 It encourages understanding the complaints and dissatisfactions of
the customers and makes all the salespeople accountable to satisfy
the customers.
 It can help understanding the actual need and desires of the
customers.
 Concept of Green Marketing
 Green Marketing refers to the selling of product and services based on
their environment benefits such a product and service may be
environmentally friendly in itself.
 Green Marketing mainly focus for the superior environmental
protection characteristics of company’s products and services.
 Basically, Green Marketing is a term used to identify concern with the
environmental consequences of a variety of marketing activities.
 Green Marketing is also called as “Ecological Marketing/ Eco-
marketing/ Eco-friendly marketing/ Environmental marketing”.
 Finally, Green Marketing incorporates a broad range of activities,
including product modification, changes in the production process,
packaging changes, etc.
 Components of Green Marketing
Green Marketing-mix contains all 4P’s :
1. Product or Green products:
 Its main focus is that, a producer should offer ecological products which
shouldn’t contaminate the environment.
 More specifically, a product or green product should not:
 Endanger the health of people or animals.
 Damage the environment at any stage of its life.
 Cause unnecessary waste, either as a result of excessive packaging.
 Use materials derived from threatened species or environment.
2. Price or Green Price :
 Its main focus is that, prices for such products may be a little higher than
conventional alternatives.
 But the target groups like for or accept for.
3. Place or Eco-Labeling :
 It is the practice of marking products with a distinctive label so that consumers
know that their manufacture conforms to recognized environmental standards.
 Here, distribution of products will be done by using simple logo on packages.
 Eco labels offers consumers clear guidance based on expert information.
4. Promotion or Green Promotion:
 Here, the company possess a certified certificate on the basis of
environmental aspects.
 Company’s spends expenditure on environmental protection.
 Here, qualifications and disclosures should be sufficiently clear.
 Marketer shouldn’t overstate the environmental attribute.
Rules of Green Marketing/Requirements of Green
Marketing
 Know the right consumers or audience
 Empower and communicate consumers
 Consider pricing
 Be genuine: It means-
 Be honest and always maintain trustworthiness information to consumers
 It means that you are doing the activities related with green marketing
Reasons/Advantages of Green Marketing

 To enjoy opportunities or competitive advantages

 To fulfill corporate social responsibilities

 To follow government pressure

 To avoid and minimize competitive pressure

 To maintain cost or profit

 Green Marketing Problems

 Lack of Standards

 Misleading Environmental Statements

 Lack of Knowledge about target customers

 Lack of Transparency
 Marketing Mix
 Marketing Mix is the set of 4 variables of marketing.

 It is the combination of the four major components that comprise a company’s marketing program.

 Marketing-mix is a set of marketing tools, if integrated properly, gives a suitable marketing

program to the marketer.

 It is the core of marketing program.

 “ A set of marketing tools that the firm uses to pursue its marketing objectives in the target
market”. - Kotler

 “Marketing Mix” as “the term used to describe the combination of the 4 inputs which constitute the
core of a company’s marketing system; the product, the price structure, the promotional activities,
and the distribution system”. - W.J. Stanton
 Components of Marketing-Mix
1. Major Components (4p’s)
 Product-mix
 Price-mix
 Place or Distribution-mix
 Promotion-mix

2. Supportive Components (3p’s)

 Process Mix
 People Mix
 Physical evidence mix
Components/Implications of Marketing Mix
 Features of Marketing-Mix

 It is a combination of four marketing variable or tools

 It is useful for achieving marketing strategies

 It is flexible and dynamic concept

 Customer is the focus point

Important Implications of Marketing Mix

 It is the main source of marketing plan and program

 It is the core marketing tools for achieving the desired result

 It is the customer focused activity

 It is a strategic marketing tool that helps long-run survival and success in the

market place