1

CHAPTER 2A

THE MARKETING PROCESS: STRATEGY AND PLANNING

A strategy is a course of action to achieve a specific objective.

1. MARKETING STRATEGY
1.1 Strategies Corporate Strategy:
A guide to overall development of an organization

Marketing Strategy:
Will be developed within that framework and focuses on the organizations activities in relation to its market.

1. MARKETING STRATEGY
Deliberate Strategies:
Vision towards strategy formulation that emphasizes the benefits of acting intentionally. Plan and think before you act.

Emergent Strategies:
Outcome of activities and behavior which develop unconsciously but which fall into some consistent pattern.

MarketMarket-Oriented Strategic Planning

5

Objectives

Resources

Profit and Growth

Skills Opportunities

2000 Prentice Hall

1. MARKETING STRATEGY
1.2 Integrated Marketing Could it be possible to make customer believe what you want him to believe about the company, product, brand or service? Yes, it is possible to differentiate the product or service by way of an effective integrated marketing communications plan.

1. MARKETING STRATEGY
1.2 Integrated Marketing (contd) Major tasks facing those responsible for IMC
- Who should receive messages - What the messages should say -What image of the organization/brand receivers should retain - How much is to be invested in the process - What actions receivers should take - How the whole process should be controlled - Determine what was achieved

2. MARKETING PLANNING AND STRATEGY

2.1 Developing a Marketing Plan The logical structure of a marketing plan
- Current analyses of the organization - A statement of objectives - Development of a strategy (including marketing mix) - Appropriate methods for plan implementation .

2. MARKETING PLANNING AND STRATEGY

2.2 Company Mission Statement Definition: The company mission statement is simply a statement of what an organization is aiming to achieve through the conduct of its business. It can even be thought of as a statement of the organizations reason for existence.

2. MARKETING PLANNING AND STRATEGY

2.2 Company Mission Statement (contd...) Factors influencing the development of mission statement:
- Corporate culture - Organizational structure - Product/market scope - Customer needs - Technology

10

11

GOOD MISSION STATEMENTS

Limited number of goals Stress major policies & values Define competitive scopes

2. MARKETING PLANNING AND STRATEGY

2.3 Statement of objectives
Definition: Corporate objectives define specific goals for the organization as a whole and may be expressed in terms of profitability, returns on investment, growth of asset base, earnings per share and so on.

12

2. MARKETING PLANNING AND STRATEGY

2.4 Situation Analysis Situation analysis requires a thorough study of:
- Broad trends ( markets, consumers and competitors) - Market segmentation - Internal environment (SWOT analysis) - External environment (marketing audit of organizations marketing activities) - Marketing information system

13

2. MARKETING PLANNING AND STRATEGY

2.5 Strategy Development Strategy development links corporate and market level plans. Decisions to make:
- Resource allocation (Finance and HR) - Market specific plans (situation analysis as input to the development of marketing objectives and market specific strategies) - Development of marketing mix (need to ensure that the products features, image, perceived value and availability are appropriate) - Marketing expenditure (budget)

14

3. MARKETING AUDIT
3.1 The Internal Environment

15

Market audits help an organization to understand the internal environment.

Definition:

A marketing audit is simply a systematic analysis and evaluation of the organizations marketing position and performance.

3. MARKETING AUDIT
3.2 Marketing Capabilities Do organizations need to know about their particular strengths and weaknesses?
Marketers may want to know: - How flexible/responsive is the organization of the marketing department? - What is the companys image/reputation? -How strong are particular product lines? - What is the extent of brand loyalty among customers?

16

3. MARKETING AUDIT
3.3 Performance evaluation It involves comparing the actual achievements of marketing with what was expected.
Examples: - Are sales meeting forecasts? - Is the message being communicated to target group? -Is the product reaching consumers?

17

3. MARKETING AUDIT
3.4 Competitive effectiveness

18

What should an organization use as their source of competitive advantage over competitors?
Examples: - Greater value, lower price - Greater benefits - Better service

4. ENVIRONMENTAL SCANNING
4.1 Market Intelligence

19

Organizations should keep their eyes and ears open to what is going on generally in the market place.
Sources of market intelligence: - Business and financial newspaper; magazines, trade journals, academic journals - Attending conferences, exhibitions, courses and trade fairs - Making use of sales forces feedback; networking and watching competitors

4. ENVIRONMENTAL SCANNING
4.2 Competitor Intelligence Sources of competitors intelligence: - Financial statements - Common customers and suppliers - Inspection of a competitors products - The competitors former employees - Job advertisements

20