Strategic Marketing Planning

What is Strategic Planning?

{ It is the managerial process that

helps to develop a strategic and
viable fit between the firm’s
objectives, skills, resources with the
market opportunities available.
{ It helps the firm deliver its targeted
profits and growth through its
businesses and products.

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 How to go about it?

{ Defining the corporate mission

{ Establishing SBUs
{ Allocating resources for SBUs
{ Planning for new business

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 Corporate Mission

{ This seeks to embody the entire

goals of the organization and the
objective of its existence.
{ It seeks to provide a sense of
purpose, direction and opportunity

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 5 questions that the firm must ask
itself

{ What is our business?

{ Who is our customer?
{ What does our customer need?
{ What will our business be?
{ What should our business be?

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 Marketing Myopia

{ Industry is a customer satisfying

process not a goods producing
process.
{ It is important therefore how you
redefine your business.

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 Good mission statements have
three characteristics

{ They focus on a limited number of

goals
{ It stresses the major values and
policies the firm desires
{ It defines the major competitive
scope of operation

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Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”

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Biocon

“To be an integrated biotechnology enterprise

of global distinction.”

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eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”

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 Product Orientation vs. Market Orientation
Company Product Market
Xerox We make copying We improve office
equipment productivity

Columbia We make movies We entertain

Pictures people

Encyclopedia We sell encyclopedias We distribute

Britannica information

Carrier We make air conditioners We provide climate

and furnaces control inside
homes
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 SBU

{ It is a company within a company

{ The business is differentiated from
the rest of the company
{ It has its own set of competitors
{ It is a separate profit centre

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 Concept of Planning

{ What should be done

{ Why is action necessary
{ Where shall it be done
{ How shall it be done
{ Who will do it
{ What physical resources required

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 Steps in planning
{ Establish the objective
{ Situation analysis
{ Environmental scanning
{ Determine alternate course of action
{ Evaluation of alternatives
{ Select the best from the alternatives
{ Formulation of plan
{ Execution

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 Steps in the Marketing Planning Process

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 Marketing
Planning

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{ BCG Market Share/Market Growth
Matrix

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 The BCG Matrix for ITC Ltd.

Stars ?
{Hotels {FMCG- Others
{Paperboards/
Packaging.
{Agri business.

Cows Dogs
{FMCG-Cigarettes {Maybe ITC Infotech.

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 { Porter’s Five
Forces Model
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 { SWOT
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Analysis
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 Ansoff’s Product-Market Grid

Current products New products

Current Mkts Mkt penetration Product development

strategy strategy

Mkt development Diversification

New Mkts strategy strategy

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 SBU strategies

{ Build
{ Hold
{ Harvest
{ Divest

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 SWOT Analysis

{ Strengths
{ Weaknesses
{ Opportunities
{ Threats

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 Mkt Attractiveness The GE Model

Weak Medium Strong

Strong

Medium

Weak

Business Strength
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 The Planning Process

{ Analysing Market opportunities

{ Developing Marketing strategies
{ Planning Marketing Programs
{ Managing the Marketing Effort

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 Porter’s Generic Strategies

{ Overall cost leadership

{ Product Differentiator
{ Focus

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 Marketing Control

{ Annual Plan control

{ Profitability control
{ Strategic Control

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 Elements of a Marketing Strategy
{ Blending the four strategy elements
of marketing decision-making to
satisfy chosen target markets
z Product
z Price
z Distribution
z Promotion

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{ Target
Market
z Group of
people
toward
whom the
firm decides
to direct its
marketing
efforts

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{ Marketing Mix Variables
z Product Strategy
{ What goods or services to offer
{ Customer service

{ Package design

{ Brand names

{ Trademarks

{ Warranties

{ Product Life Cycle

{ Positioning

{ New-product development

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{ Marketing Mix Variables
z Distribution Strategy
Planning that ensures that consumers find
their products in the proper quantities at
the right times and places.
{ Modes of transportation
{ Warehousing

{ Inventory control

{ Order processing

{ Marketing channels

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{ Marketing Mix Variables
z Promotional Strategy
{ Blending together the various elements of
promotion to communicate most effectively
with the target market
{ Informing, persuading, and influencing a
consumer’s purchase decision.
{ IMC

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 { Marketing Mix Variables
z Pricing Strategy
z Deals with the methods of setting
profitable and justifiable prices

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 { The Marketing Environment
z Competitive
z Political – Legal
z Economic
z Technological
z Social – Cultural

{ Rule of three

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Methods for Marketing Planning

{ Business Portfolio Analysis

z Strategic Business Units (SBUs) are
key business units within diversified
firms
{ A division, product line, or single product
may define an SBU
{ Firms redesign their SBUs as market
conditions dictate

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{ The BCG Matrix
z Market Share/ Market Growth Matrix:
Matrix
a marketing planning tool that classifies a
firm’s SBU’s or products according to
industry growth rates and market shares
relative to competing products
{ Stars
{ Cash Cows

{ Dogs

{ Question Marks

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 The Strategic Context

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 The Strategic Context Framework
The Vision - a statement about what an organization wants to
become. It should give shape and direction to an organization’s future.

The Mission - a broad statement of intention, which sets out an

organisation’s purpose and direction, what it wishes to achieve in the
long term.

Organisational values - define the acceptable interpersonal and

operating standards of behaviour. They govern and guide the behaviour
of individuals within the organisation.

Organisational Goals - the desired outcomes of the organisation’s

various activities. These may be articulated in terms of profit, market
share, share value, return on investment or numbers of customers
served.

Corporate Strategy - the means by which the resources of the

organisation are matched with the needs of the environment in which
the organisation decides to operate.

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 Three Key Activities of Marketing Strategy
Development

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 Strategic Market Analysis
• External Environment - Pestle, Environmental Scanning
• Performance Environment - 5 Forces, Competitor and
Supplier Analysis
• Internal Environment - resource analysis
The task is to assimilate the information derived from the
analysis of the environment, and to bring it together in a
form that can be easily understood. To do this two main
tools can be used:
Scenario Planning
SWOT

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 Strategic Market Analysis

Scenario Planning –
an attempt to understand how trends might influence the future of an
organisation and how managers can gain a better understanding of
some of the uncertainties an organisation faces if it pursues particular
strategies.

SWOT –
A series of checklists derived from the marketing audit and the
PESTLE analysis, presented as the internal strengths and weaknesses,
and the external opportunities or threats.

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 Strategic Marketing Goals

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 Strategic Marketing Growth Goals

• Intensive growth - refers to concentrating activities on markets and/or

products that are familiar. By increasing market share or by
introducing new products to an established market growth,
growth is achieved by intensifying activities.

• Integrative growth - occurs where an organisation continues to work with the

same products and same markets but starts to perform some of
the activities in the value chain that were previously undertaken
by others.

• Diversification - refers to developments outside the current chain of value

adding activities. This type of growth brings new value chain a
activities because the firm is operating with new products and in
new markets.

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 Strategic Market Action

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 Five Areas of Strategic Market Action

Competitive - is achieved when an organisation has an edge over

advantage its competitors when attracting buyers. It has a
superior value proposition.

Generic - there are three generic strategies; overall cost

strategies leadership, differentiation and focus strategies, used
in order to develop an advantage.

Competitive - Four main positions can be identified; market leader,

positioning challenger, follower and nicher

Strategic - Strategic Competition & Warfare, Strategic Cooperation

intent & Relationships

Marketing – organising and implementing the strategic action.

planning

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 Marketing Planning

Marketing planning is a sequential

process involving a series of activities
leading to the setting of marketing
objectives and the formulation of plans for
achieving them.

(McDonald, 2002 : 27).

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 Summary
• Described the strategic planning process.
• Explained the key influences that impact on marketing
strategy.
• Explained how understanding competitors can assist the
development of marketing strategy.
• Explained the principles of Porter’s generic strategies.
• Explained how scenario planning and SWOT analysis
can help strategic marketing decision-making.
• Outlined the key elements within a marketing plan
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