Marketing planning

Chapter 2

Marketing planning is the process by which businesses

analyse the environment and their own capabilities, decides
upon course of marketing actions and afterwards implement
those

Lecturer: Dorte Olivarius Koustrup

doko@niels.brock.dk
 Chapter 2 outline

 The marketing planning process

­ Mission
­ Strategic Business Units
­ External market audit
­ Internal market audit
­ SWOT analysis
­ Growth strategies
­ Testing core strategy

Plans
Plansare
arenothing
nothing
––planning
planningisis
everything
everything
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 The marketing planning process
Business mission
Re­definition
Marketing audit Marketing planning
at the business
SWOT analysis level (strategic and
tactical level)

Marketing objectives

Core strategy

Marketing
Marketing mix decisions planning at the
product level
Organization and implementation (tactical and
operational level

Control 3
 Planning at the business level
- Corporate and Division level -

Business mission
Re­definition
Marketing audit

SWOT analysis

Marketing objectives

Strategic Strategic
thrust objectives
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 Corporate and Division level

 Defining the corporate mission

 Establishing Strategic Business Units
 Marketing audit
 Assigning Resources to SBU´s
 Choosing strategies

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Business mission
Mission
 Definition:
­ ”A broadly defined, enduring statement of purpose that distinguished a
business from other if its type” (Jobber p- 39)
 …or which customers need and wishes the company will meet and how it will do so
(Trojka p. 55)
 Two fundamental questions to be addressed:
­ What is our business?
­ and what should it be?
 The mission should be:
 Short – maximum 3­4 lines
 realistic & specific
 mention distinct competencies
 motivation

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Business mission

What could be the mission of Apple?

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Marketing audit

Marketing audit
External audit
Internal audit

A systematic examination of a business marketing environment,

objectives, strategies and activities with a view to identifying key
strategic issues, problem arenas and opportunities.

It Is therefore the basis upon which a plan of action to improve

marketing performance can be built
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Marketing audit

External marketing audit checklist

Where are we now?
How did we go there?
Where are we heading?

Macroenvironment

The market

Competition
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Marketing audit

External marketing audit checklist

Macroenvironment
● Economic:

 inflation, interest rates, unemployment

● Social/cultural:

age distribution, lifestyle changes, values, attitudes

● Technological:

new product and process technologies, materials

● Political/legal:

 monopoly control, new laws, regulations

●Ecological:

 conservation, pollution, energy

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Marketing audit

External marketing audit checklist

The market
● Market size, growth rates, trends and developments

●Customers:
 who are they, their choice criteria, how, when, where do they

buy, how do they rate us vs. the competition on product,

promotion, price, distribution

● Market segmentation:
 how do customers group, what benefits do each group seek

●Distribution:
 power changes, channel attractiveness, growth potentials,

physical distribution methods, decision makers and influencers 11

Marketing audit

External marketing audit checklist

Competition

 Who are the major competitors

 What are their objectives and strategies

 What are their strengths (distinctive competencies) and

weaknesses
 Market shares and size of competitors

 Profitability analysis

 Entry barriers – are we protected from competitor attack

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Marketing audit

Internal marketing audit checklist

Mark
Operating Marketing
Operating StratStrategic
Mix
Results (by product, customer, Issues Effectiveness eting
geographic region Analysis Analysis
•Product
•Sales •Marketing objectives
•Price
•Market share •Market segmentation
•Promotion
•Profit margins •Competitive advantage
•Distribution
•Costs •Core competences
•Positioning
•Portfolio analysis
Marketing MarMarketing
Structures Structures Systems
•Marketing organisation Sytems
•Marketing training •Marketing information system
•Intra- and interdepartmental •Marketing planning system
communication •Marketing control system 13
SWOT analysis

SWOT Analysis

Evaluating the strategic position of a business by identifying internal

strength and weaknesses and external opportunities and threats.
This finding from the audit could be summarized in a SWOT
analysis

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SWOT analysis

Matching
SWOT analysis
strategies:
Strength in
Conversion
handling a call
strategies:
center
Eg. Weakness in
Source
customer care
Many companies
are interested in
Staff training
using a call
center or in Strengths Weaknesses to make a new
Internal
Strength
outsourcing their
call activities
Matching
Conversion (controllable)
Opportunity

Matching strategy
Create a Call center Opportunities Threats External
business Conversion (uncontrollable)

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SWOT analysis Marketing objectives

SWOT analysis and marketing objectives

Defines where the business and its

products intend to go in the Future
Conversion

Marketing objectives
Growth
Strengths Weaknesses Strategies
Matching

Conversion

Strategic
Opportunities Threats
Objectives

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Marketing objectives
Growth Strategies
Different ways of growing

1. Integrative growth:
­ Vertical integration
up and down stream
­ Horizontal integration
­ Strategic alliances/Joint ventures
2. Ansoff’s Growth strategies
­ Market penetration,
­ Product development Ansoff growth
strategies
­ Market development - strategic trust -

­ Diversification:
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Marketing objectives
Penetration
1) Winning competitors’ Ansoff’s growth strategies
customers – eg.
by promotion, - strategic trust - Product development
distribution or by 1)Innovation
cutting prices Products 2) Extend existing product lines
2) Buy competitors 3) Product replacement
Existing New eg. cars, development of CD
Expansion
1) Converting non­users
into users of it products
2) Increasing usage rate
Market
Existing Penetration Product
or Development
Markets Expansion

New Market Enter New

Development Markets
Enter new markets(diversification)
1) new products for new markets
Market development 101 ways eg. Honda from Motorcycles to cars
1) new use of existing products to
to new customers
2) marketing of existing (and their
use your Important to be based on the
zippo company’s core competencies
current uses) products
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to new market segments
Marketing objectives

Strategic objectives
 Alongside objectives for product/market directions:

­ Build
build sales and market share
 new products
­ Hold
holding sales and market share
­ Harvest
sales and market share are allowed to fall but profit
margins are maximized
­ Divest
the product is dropped or sold

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 At the Corporate and Division level
Setting strategies for the Strategic Business Units

 Definitionof an SBU  Resources for a SBU

­ own sets of ­ invest
competitors and ­ hold (maintain)
customers ­ harvest
­ be planned ­ divest
separately
­ own management

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Core strategy

Planning at the product level

Core strategy

Target Competitive Competitor

markets advantage targets

Marketing mix decisions

Organization and implementation

Control
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Core strategy
The Economist target market

An important part
of marketing
planning is the
target marketing.
The Economist
targets
professionals who
wish to be
perceived as
knowledgeable
and intelligent.

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Core strategy

Competitive advantages
 For major success, business need to achieve a clear
performance differential over competition on factors that
are important to target customers

 It can e.g be achieved by:

­ Being better
 superior quality and services
­ Being faster
 anticipate or respond to customer needs faster than competition
­ Being closer
 establish close long-term relationships with customers
­ Having the lowest relative cost position of all competitors
 low prices, higher profit margin to use at e.g. development

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Core strategy
Testing core strategy
- the six tests of an effective core strategy -

Clearly defines
target customers
and their needs

Creates a
Internally competitive
consistent Core advantage
strategy
Derived to Incurs
achieve product acceptable
market risk
objectives
Resource and
managerially
supportable
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Marketing mix decisions

Planning at the product level

Core strategy

Target Competitive Competitor

markets advantage targets
Product and additional services?
Prices?

Marketing mix decisions Place (distribution)?

Promotion?

Organization and implementation

Control
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