Strategic Marketing Planning

Objectives Describe strategic planning process Explain how organizational resources & opportunities affect planning process Understand role of mission statement in strategic planning Examine corporate, business-unit, and marketing strategies Understand process of creating marketing plan Describe marketing implementation process and major approaches to marketing implementation

Strategic Marketing Strategic Marketing : Strategic marketing is the process of strategy development by regularly seeing the marketing environment and customer satisfaction. It helps the organization to achieve competitive advantage and sustain it over a longer period of time.

Strategic Marketing The Strategic Marketing Process involves: Analysis of the marketing situation, Formulating a marketing strategy, Market program development, and Implementing and managing marketing strategy.

Strategic Marketing Strategic Marketing Management is all about helping the organization to : Develop a unique identity in the market, Grow its businesses geographically, and Serve the customers better than the competitors.

Components Of Strategic Planning Source: From Marketing Strategy, 2nd Edition. Reprinted with permission of South-Western, a division of Thomson Learning: www .thomsonrights.com. Fax 800- 730-2215.

Marketing Strategy Marketing strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization. Marketing strategy is a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.

Marketing Strategy Components of marketing strategy: Selecting target markets Creation of marketing mix. Target market : means to whom the organization wants to sell its products.

Target market A careful choice of the market segment has to be made by the organization. Because of : Not all the market segments are profitable to an organization. There are certain market segments which guarantee quick profits, there are certain segments which may be having great potential but there may be high barriers to entry.

Effective Marketing Strategy Effective Marketing Strategy should: Reflects overall direction of organization. Coordinated with firm’s functional areas. Contributes to achievement of: Marketing objectives Organizational goals

Effective Marketing Strategy For developing effective marketing strategies, the organization has to : First decide the customer segments it wants to serve, the customer needs and wants to satisfy, and Establish the price that the customers are willing to pay for its products and services.

Marketing Plan Marketing Plan: Marketing plan is a written document that specifies the details of the marketing activities to be performed and the programs to be undertaken to achieve the marketing goals. It's the application of your strategy a roadmap that will guide you from one point to another.

Marketing Plan The process of preparing a marketing plan involves: Summarizing the strategic situation, Describing the target markets, Setting objectives for the target markets, Preparing a marketing program positioning strategy, and Predicting sales and allocating budgets.

Marketing: Strategies vs Plans Marketing strategy is shaped by business goals. business goals and marketing strategy should go hand-in-hand. Marketing plan is how you are going to achieve those marketing goals. Marketing Strategy > Marketing Plan > Implementation = Success

Marketing: Strategies vs Plans Marketing strategy: consists of :The "what" has to be done. For Example : Inform consumers about the product or service being offered. Marketing plan consists of: The "how" to do it. For Example : Make marketing campaigns and promotions that will achieve the "what" in your strategy. Implementation consists of: Taking action to achieve items identified in the marketing strategy and marketing plan.

Components Of The Marketing Plan

Marketing Objective Marketing Objective is a statement of what is to be accomplished through marketing activities.

Marketing Objectives Terms Product Introduction Improvement Innovation Sales Volume Profitability Market Share Pricing Distribution Advertising Employee Training

Marketing Objective

Marketing Objective Characteristics Clear, simple terms Measurable Specify time frame Consistent with unit and corporate strategy

Core Competencies Core Competencies : are Things a firm does extremely well, which sometimes give it an advantage over its competition.

SWOT Analysis Strengths Weaknesses Opportunities Threats

Customer Satisfaction Strengths Advantages Weaknesses Disadvantages Opportunities Threats

Four-Cell SWOT Matrix Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change. Copyright © 1992 Butterworth-Heinemann Ltd., p. 371. Reprinted with permission.

Developing Corporate, Business-Unit, and Marketing Strategies

Corporate Strategy A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals.

Business-Unit Strategy Strategic Business Unit (SBU) A division, product line, or other profit center within the parent company.

Approaches To Marketing Implementation Total Quality Management Benchmarking Empowerment

Total Quality Management is a philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality.

Benchmarking Benchmarking: is Comparing the quality of the firm’s goods, services, or processes with that of its best-performing competitors.

Controlling Marketing Activities Marketing Control Process: Establishing performance standards Evaluating actual performance by comparing it with established standards, and Reducing the difference between desired and actual performance. Taking corrective action if necessary .

The Marketing Control Process