Download Chapter 6: Developing Product and Brand Strategy

Chapter 1: Marketing Planning:
New Urgency, New Possibilities
The Marketing Plan Handbook
Fourth Edition
Marian Burk Wood
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Marketing Planning Is
Important
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Marketing is everywhere.
Customers have more information,
more choices, higher expectations,
more power, and more involvement.
Stakeholders are looking for
companies to make a difference.
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Marketing and the
Concept of “Value”

AMA definition of Marketing:
“…the activity, set of institutions, and processes
for creating, communicating, delivering and
exchanging offerings that have value for
customers, clients, partners and society at large.”

Value is Key: Value is the difference between the
benefits received and the perceived total price.
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Marketing Planning
Marketing planning is the structured
process of determining how to provide
value to customers, the organization, and
key stakeholders by:
1.
2.
3.
Researching and analyzing the current situation,
Developing and documenting the firm’s objectives,
strategies and programs, and
Implementing, evaluating, and controlling
marketing activities.
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The Marketing Planning Process
1. Research
and
Analyze
4. Direction,
Objectives,
Marketing
Support
2. Understand
Markets and
Customers
5. Marketing
Strategies
and
Programs
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3. Segmentation,
Targeting, and
Positioning
6. Metrics and
Implementation
Control
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Contents of The Marketing Plan
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
Executive Summary.
Current Situation.
Objectives and Issues.
Target Market, Customer Analysis and
Positioning.
Marketing Strategy.
Marketing Programs.
Financial and Operational Plans.
Metrics and Implementation Control.
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Step 1: Research and Analyze
the Current Situation
The marketer performs both:
1.
2.
External analysis, and
Internal analysis.
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External Analysis
Involves the understanding of :



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Demographic
Economic
Technological
Political-Legal
Ecological
Social-Cultural
Competitors
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Internal Analysis
Marketers also assess the firm’s
capabilities and the strategies of
competitors in order to:


Build on strengths, and
Exploit competitors’ weaknesses.
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Other Analyses
Other areas that are analyzed for
their impact on marketing strategy
include:





Customers
Suppliers
Distributors
Partners, and
Other Stakeholders
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Step 2: Understand Markets
and Customers


Consumers or businesses
Comprehensive understanding is
desired:



Buying habits and behaviors
Who?, What?, Where?, When?, Why?, How?
Are buying patterns changing? Why?
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Step 3: Plan Segmentation,
Targeting, and
Positioning


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Purpose of segmentation: To group
customers with similar needs, wants,
behavior, or attitudes.
Targeting: The selection of specific
segments for marketing.
Positioning: A competitively distinctive
place (position) in the mind of the targeted
customers.
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Step 4: Plan Direction,
Objectives, and
Marketing Support


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Goals: Long-term targets.
Objectives: Shorter-term targets.
Sustainable Marketing:


Balancing long-term goals with short-term
objectives and budget realities.
Responsible to the larger society.
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Step 5: Develop Marketing
Strategies and
Programs


Consistent with the firm’s overall
direction, goals, and strategies.
Utilizing the tools of the “marketing
mix”, enhanced by service.
Increasing use of “three screens”: TV, cell phone,
and computer.

Includes the development of strategic
alliances with suppliers, partners, and
channel partners.
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Step 6: Plan Metrics and
Implementation Control

Metrics: Numerical measures of performancerelated activities and outcomes.

Metrics include:
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Return on marketing investment (ROMI)
Market share
Cost per customer acquired
Marketing Control: measuring interim
performance against metrics, diagnosing any
performance issues and making changes as needed.
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Primary Marketing Tools
The primary tools for marketing,
referred to as the “Marketing Mix”
are:

Product.

Price.

Promotion.

Channels.
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Product



Tangible good or an intangible
service.
Must be considered in a holistic
fashion.
Branding must also be considered.
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Pricing
Based upon a number of factors:


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How customers perceive the value of the
offering.
Positioning.
Product costs.
Competitive forces.
The value the organization expects to gain.
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Channel


How, when, and where to make the goods
and services available to customers.
Requires effective relationships with
channel partners.
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Promotion
Involves the following activities:

Advertising

Public Relations

Sales Promotion

Personal Selling

Direct Marketing

Use of the Internet
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Preparing for Marketing
Planning
Marketers must develop a number of
professional and organizational
strengths, including:

Knowledge of markets and customers.
Core competencies.

Strategic relationships.

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Support Strategies:
Customer Service

Reinforces positive perceptions.

Helps differentiate from competitors.

Enhances business through reputation and
referral.

Excellent service helps retain loyal
customers.

Poor service alienates otherwise loyal
customers.
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Support Strategies:
Internal Marketing

Focuses all employees on serving customers.

Builds support for the marketing plan.

Enhances execution of the marketing plan
throughout the organization.
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4 Guiding Principles for
Effective Marketing Planning
1.
Anticipate Change.
2.
Engage Everyone.
3.
Seek Alliances.
4.
Make Marketing Meaningful.
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
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Publishing as Prentice Hall
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