1. (2) Developing Marketing Strategies and Plans
Instructor: Amir Ekhlassi

2. ©Compiled by: Amir Ekhlassi
Strategic planning
Strategic planning: is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.
Defining
The company
mission
Setting company
Objectives
And goals
Designing
The business
portfolio
Planning marketing
And other functional
strategies
Corporate level
Business unit, product,
And market levels
©Compiled by: Amir Ekhlassi

3. Strategic planning (cont’d)
Marketing planning occurs at the business unit, product, and market levels. It supports company strategic planning with more detailed planning for specific marketing opportunities.
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4. Setting strategic directions
Business portfolio planning
Growth opportunities
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5. 1.Designing the business portfolio
The business portfolio is the collection of businesses and products that make up the company.
The company must:
Analyze its current business portfolio or strategic business units (SBU’s)
Decide which SBU’s should receive more, less, or no investment,
Develop growth strategies for adding new products or businesses to the portfolio.
©Compiled by: Amir Ekhlassi

6. Analyzing current SBU’s: BCG growth-share matrix
Relative market share
high
Low
high
Stars
High growth & Share
Profit potential
May need heavy investment to grow
Question marks
High growth, low share
Build into stares or phase out
Require cash to hold market share
Cash cows
Low growth, high share
Established, successful SBU’s
Produce cash
Dogs
Low growth & share
Low profit potential
Market growth rate
low
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7. 2.Developing growth strategies in the age of connectedness
Marketing has the main responsibility for achieving profitable growth for the company.
Marketing must identify, evaluate, and select market opportunities and lay down strategies for capturing them.
One useful device for identifying growth opportunities is the product / market expansion grid.
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8. Product / market expansion grid
Existing
Products
New products
Market penetration
Product development
Market development
Diversification
Existing
Markets
new
Markets
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9. Product / market expansion grid based on Starbucks
Market penetration: making more sales to current customers without changing its products.
How? Add new stores in current market areas, improvements in advertising, prices, etc.
Market development: identify and develop new markets for its current products.
How? Review new demographic (senior consumers) or geographic (Asian, European & Australian) markets
Product development: offering modified or new products to current markets.
How? Increasing food offerings, sell coffee in supermarkets, extend to Frappuccino drinks.
Diversification: start up or buy businesses outside current products and markets.
How? Currently testing how new restaurant concepts – café starbucks and Circadia, or branded casual clothing.
©Compiled by: Amir Ekhlassi

10. Assessing growth opportunity
Intensive growth:
A growth objective within the reference market it operates.
Integrative growth:
A growth objective within the industrial chain, lateral expansion of its generic activity, backward and forward.
Diversification growth:
A growth objective based on opportunities outside its normal field of activity.
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11. Intensive Growth: Market Development
New market segments (industrial and consumer markets, new industrial sector, new consumer segment)
New distribution channel (direct marketing, vending machine, franchise system)
Geographic expansion (local expansion, global expansion)
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12. Intensive growth: Product Development
Discontinues innovation
New generation of products
Product line expansion, rationalization or acquisition
Features adding
Product performance improvement
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Integrative growth
Backward integration
Forward integration
Horizontal integration ( reinforce the competitive position, common customer, channel or supplier)
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14. Growth by diversification
Concentric diversification: the goal is to build a network of related activities and benefit from synergy. Technology or market relation.
Pure diversification: the goal is to burn into entirely new activities and set a portfolio of product and business activities.
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15. Marketing’s role in strategic planning
There is much overlap between overall company strategy and marketing strategy.
Marketing plays a key role in the company’s strategic planning to several ways:
First, marketing provides a guiding philosophy (the marketing concept) that suggests company strategy should revolve around serving the needs of important consumer groups.
second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities and by assessing the firm’s potential to take advantage of them.
Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives. Once the unit’s objectives are set, marketing’s task is to carry them out profitably.
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16. Factors influencing company marketing strategy
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17. Connecting with customers
Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments better than its competitors do. This process involves three steps: (STP)
Market segmentation
Market targeting
Market positioning
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18. ©Compiled by: Amir Ekhlassi
Market segmentation
The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes is called market segmentation.
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
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19. ©Compiled by: Amir Ekhlassi
Market targeting
Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time.
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20. ©Compiled by: Amir Ekhlassi
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
In positioning its product, the company first identifies possible competitive advantage on which to build the position.
To gain competitive advantage, the company must offer greater value to chosen target segments.
Effective positioning begins with actually differentiating the company’s marketing offer.
©Compiled by: Amir Ekhlassi

21. Developing the marketing mix
We define marketing mix as the set of controllable, tactical marketing tools (product, price, place, and promotion) that the firm blends to produce the response it wants in the target market.
The marketing mix consists of everything the firm can do to influence the demand for its product.
©Compiled by: Amir Ekhlassi

22. Developing the marketing mix (cont’d)
Product
Variety
Quality
Design
Features
Brand name
Packaging
services
Price
List price
Discounts
Allowances
Payment period
Credit terms
Target
Customers
Intended
positioning
Place
Channels
Coverage
Locations
Assortments
Inventory
Transportation
logistics
Promotion
Advertising
Personal selling
Sales promotion
Public relations
©Compiled by: Amir Ekhlassi

23. Developing the marketing mix (cont’d)
Product means the goods-and-services combination the company offers to the target market.
Price is the amount of money customers have to pay to obtain the product.
Place includes company activities that make the product available to target consumers.
Promotion means activities that communicate the merits of the product and persuade target customers to but it.
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24. ©Compiled by: Amir Ekhlassi
The marketing plan
Comprehensive, written statement of what is expected from each business unit in the future.
Usually prepared annually
Includes both historical information and recommendations on how to improve performance
Combines strategies with timetables for action
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25. Evaluating a marketing plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
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26. Contents of a marketing plan
Executive summary
Current marketing situation
Threats and opportunity analysis
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls
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27. Building a marketing plan
Benefits of building a marketing plan
Identifying opportunities
Leveraging core capabilities
Focused marketing strategy
Resource allocation
Creativity Vs. Structure
Formal Vs. informal market planning process
Internal Vs. external motivation
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28. The process of building a marketing plan
Step 1:
Situation
analysis
Step 2:
SWOT
Analysis
Step 3:
Strategic
Market
plan
Step 4:
Marketing
Mix
strategy
Step 6:
Marketing
Perform
plan
Step 5:
Marketing
budget
Adjust
Marketing
Plan as
necessary
Step 7:
Performance
evaluation
Step 5:
Marketing
budget
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29. Step 1: situation analysis
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30. Key performance issues
Step 2: SWOT analysis
internal
Strengths
weaknesses
external
Opportunities
Threats
Key performance issues
Situation analysis
©Compiled by: Amir Ekhlassi

31. Step 3: strategic market plan
Product-market
Portfolio and
Plan selection
Based on
Information
Uncovered in
The situation
And SWOT
analysis
Market
Attractiveness
Competitive
Advantage
©Compiled by: Amir Ekhlassi

32. Step 4: marketing mix strategy
Strategy and key performance issues
Positioning strategy
Value proposition
Channel strategy
Performance objectives
Marketing mix elements
Price
Promotion
Place
Product
©Compiled by: Amir Ekhlassi

33. Step 5: marketing budget
What is the purpose of the marketing budget?
Five ways to build a marketing budget
Top – down
Customer mix
Bottom – up
Sales forecast
Monthly budget
©Compiled by: Amir Ekhlassi

34. Step 6: performance timeline
Performance metrics:
Share position
Sales revenue
Profit performance
Customer awareness
Customer satisfaction
Product availability
Perceptions of product and service quality
Net marketing contribution
©Compiled by: Amir Ekhlassi

35. Step 7: performance evaluation
What is performance evaluation?
Why is performance evaluation important?
What if the plan is not meeting performance objectives?
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36. Thank You For Your Patience & Attention
©Compiled by: Amir Ekhlassi