Download MARKETING PLAN

CHAPTER TWO
STRATEGIC PLANNING
DEVELOPING AND
IMPLEMENTING A MARKETING
PLAN
Prepared by: Jack Gifford
Miami University (Ohio)
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STRATEGIC PLANNING

Strategic Planning is the managerial
process of creating and maintaining a fit
between the organization’s objectives and
resources and the evolving market
opportunities.
RESOURCES
&
OBJECTIVES
EVOLVING
MARKET
OPPORUNITIES
LONG RUN
PROFITABILITY
AND GROWTH
PLUS
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STRATEGIC PLANNING


Strategic planning requires the long-run
commitment of human and capital resources.
Strategic marketing management addresses two
questions:
– What is the organization’s main activity at a particular
time?
– What are its primary goals and how will these be
achieved?

How do companies go about strategic planning?
How do employees know how to implement the
long-term goals of the firm? The answer is…...
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A MARKETING PLAN

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
Is the process of anticipating events and
determining strategies to achieve
organizational objectives in the future.
A written document
A guideline over time
Benchmark of progress to date
The components of a Marketing Plan always
should include, at a minimum, the following...
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THE MARKETING PLAN CONTAINS, AT A
MINIMUM….

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Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
– Target Market Strategy
– Marketing Mix
•
•
•
•

Product
Promotion
Price
Distribution
Implementation, Evaluation and Control
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...AND ALSO OFTEN INCLUDES:
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Budgets
Implementation timetables
Required marketing research efforts
Other elements of advanced strategic
planning
–
–
–
–
–
Quality control programs
Supply chain management systems
Organizational structure changes
Management Information Systems
Others unique to specific industries
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THE MISSION STATEMENT

When we answer the question “What business
are we in and where are we going?” we are well
on our way to creating a mission statement
– The creation and implementation of a mission
statement profoundly affects long-run resource
allocation, profitability, and survival.
– Includes the long-run vision and values of the
company
– Must be customer oriented
– May be for the entire business, or each strategic
business unit (SBU)
– Must not be too broad…or too narrow in scope
– Avoids marketing myopia
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MARKETING MYOPIA

A business that defines
itself in terms of its
products or services
instead of customer
satisfaction or too
narrowly instead of the
markets, organizations,
and benefits
purchased.
AT&T =
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MARKETING GOALS AND
OBJECTIVES

Marketing Objectives
– What is to be
accomplished through
marketing activities
– Realistic, measurable,
time specific
– Internally consistent
– Indicate the priorities of
the organization
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MARKETING GOALS AND
OBJECTIVES

Marketing objectives serve
several functions
– Communicate marketing
management philosophies
– Provide direction for lowerlevel management
– Act as motivators
– Help clarify executive thinking
– Create a series of benchmarks
and a basis for control
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CONDUCT A SITUATION
ANALYSIS

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Environmental Scan/
Situational Analysis
Two major
components, the first
set being...
– Internal strengths
– Internal weaknesses
•Production costs
•Marketing and people
skills
•Financial resources
•Company or brand image
•Available technology
•Other
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CONDUCT A SITUATION
ANALYSIS


Environmental Scan/
Situational Analysis
Two major
components, the
second set being…
– External Opportunities
– External Threats
MACROENVIRONMENTAL
FORCES INCLUDE
•Social forces
•Demographic forces
•Economic forces
•Technological forces
•Political forces
•Legal forces
•Competitive forces
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Corporate culture and the external
opportunities and threats

Corporate culture is the pattern of
basic assumptions an organization
has accepted to cope with the firm’s
internal environment and the
changing external environment
– It is revealed by the way it reacts to
problems and opportunities
– These organizational responses can be
categorized into four types
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FOUR TYPES OF ORGANIZATIONAL
RESPONSES TO EXTERNAL
OPPORTUNITIES AND THREATS
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Prospector
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Reactor
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Defender
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Analyzer
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Focuses on identifying and
capitalizing on emerging market
opportunities; emphasizes mkt.
research & communications
Responds to emerging market
forces when forced to do so
Tries to defend its “turf” or
market domain
Combination of a conservative
prospector and aggressive
defender
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STRATEGIC WINDOW

Is the limited time
period in which there
is an optimal FIT
between external
market Opportunities
and internal corporate
Strengths
S
W
O
T
Optimal
match
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STRATEGIC OPPORTUNITIES MATRIX
EXAMPLE: DAIMLER-CHRYSLER
PRODUCT
PRESENT
M
A
R
K
E
T
P
R
E
S
E
N
T
N
E
W
Market
Penetration
Market
NEW
Product
Development
Diversification
Development
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PORTFOLIO MATRIX
EXAMPLE: MICROSOFT CORPORATION
HIGH
?
LOW
MARKET GROWTH RATE
MARKET SHARE DOMINANCE
HIGH
LOW
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PORTFOLIO MATRIX (continued)
Allocating future resources for each
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Build

– Invest in a problem
child that has the
potential to become a
star
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Hold
– Hold and protect; use
cash flow to maintain
market share
Harvest
– Increase short-term
cash flow from any
source except stars

Divest
– Sell off or close dogs
and sometimes
problem children that
cannot be converted to
stars
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MARKET ATTRACTIVENESS /
STRENGTH MATRIX: EXAMPLE
KODAK CORPORATION
BUSINESS POSITON
[ STRENGTH MINUS WEAKNESSES ]
MEDIUM
WEAK
LOW
MEDIUM HIGH
STRONG
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MARKET ATTRACTIVENESS / STRENGTH
MATRIX (CONTINUED)
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To maintain a strong business position in an
attractive market (SMILEY FACE), a company
must develop a sustainable competitive
advantage
– One or more unique aspects of an organization that are
valued by the target market(s) and cannot be easily
replicated by competition
• Superior skills, such as management capabilities and
expertise)
• Superior resources( well known brand name, patents,
unique technology, or superior economies of scale)
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DIFFERENTIAL ADVANTAGE
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Important to target market(s)
Why you purchase “A” instead of “B”
Athletic Shoes ???
Soft drink ???
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MARKETING PLAN (continued)

Marketing Strategy
– Target Market Strategy
• Identifies which market
segment or segments to
focus on
• This topic will be
discussed in detail in
Chapter 7
Owners of
pets
Parents of
children under 3
Male business
executives
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TARGET MARKET STRATEGY
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How do we “cluster” potential customers
for our products or services around
meaningful buying attributes?
Is usually multidimensional
– SAUDI KINGDOM SHOPPNG CENTRE?
– TREK BICYCLES?
MEN
1ST FLOOR
WOMEN
2ND FLOOR
???
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MARKETING PLAN (continued)

Marketing Mix: The 4 “Ps”
– Product strategies
– Price strategies
– Promotion strategies
– Distribution strategies (Place)
•New triple cutting surface
Gillette Mach 3
razor
•Sold through retailers
•Introductory price $3.29
•Promoted on TV, magazines
and newspapers
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THE MARKETING MIX
PRODUCT
OR
SERVICE
PROMOTION
PRICE
PLACE
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IMPLEMENTATION, EVALUATION
AND CONTROL

Implementation
– The process that turns marketing plans into
action assignments
– Assures execution in a way that accomplishes
the plans’ objectives

Evaluation and control
– Gauging the extent to which marketing
objectives have been achieved during the
specific time period.
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EVALUATION AND CONTROL

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The broadest control device
available to marketing
managers is the marketing
audit
A marketing audit is a
comprehensive, systematic,
periodic, and independent
evaluation of the goals,
strategies, structure, and
performance of the marketing
organization
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AUDIT
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EFFECTIVE STRATEGIC
PLANNING

Effective strategic planning requires continual
attention, creativity, and management
commitment
– Should be an ongoing process
– Is based on information and creativity
– Requires top management support and participation
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FOUR COMMON REASONS FOR
FAILURE TO ACHIEVE
MARKETING OBJECTIVES
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Objectives were unrealistic
Inappropriate objectives for the plan
Poor implementation
Unanticipated changes in the internal or external
environments
Violations of any of the three principles of
effective strategic planning
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