Strategic Planning: Strategic Planning: Developing and Implementing Developing and Implementing a Marketing Plana Marketing Plan

Strategic Planning: Strategic Planning: Developing and Implementing Developing and Implementing a Marketing Plana Marketing Plan

ObjectivesObjectives

1. Understand the importance of strategic marketing. Know the outline for a marketing plan.

2. Define an appropriate business mission statement.

3. Describe criteria for good marketing objectives.

4. Explain components of a situation analysis.

5. Identify strategic alternates and describe tools to select them.

The Nature of Strategic PlanningThe Nature of Strategic PlanningThe Nature of Strategic PlanningThe Nature of Strategic Planning

RESOURCES &

OBJECTIVES

EVOLVING MARKET

OPPORUNITIES

LONG RUN LONG RUN PROFITABILITY PROFITABILITY AND GROWTHAND GROWTH

Marketing

Plan

What is a Marketing Plan?What is a Marketing Plan?What is a Marketing Plan?What is a Marketing Plan?

Marketing planning involves designing activities relating to marketing objectives and the changing marketing environment. For example: product lines, prices, communication

Why?

Planning: Process of anticipating future events and

determining strategies

Basis for comparison of actual and expected performance

Clearly stated activities to work toward common goals

Aware of threats and opportunities

Marketing Plan ElementsMarketing Plan ElementsMarketing Plan ElementsMarketing Plan Elements

Marketing Strategy

Product

Promotion

Distribution

Price

Marketing Mix

Objectives

Business Mission Statement

Situation or SWOT Analysis

Target Market Strategy

ImplementationEvaluation

Control

Define the Business MissionDefine the Business MissionDefine the Business MissionDefine the Business Mission

Answers the question: What business are we in and where are we going?

Example: PepsiCo’s Business Mission

Focuses on the market(s) rather than the good or service Marketing myopia if focus is on specific goods/service

Examples? Frito-Lay is in the snack-food business No clear foundation if focus is too broad

Examples? Amazon?

Strategic Business Units may also have a mission statement – characteristics of a SBU

Back

PepsiCo’s Mission StatementPepsiCo’s Mission StatementPepsiCo’s Mission StatementPepsiCo’s Mission Statement

“To be the world's premier consumer products company focused on convenient foods and beverages.  We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate.  And in everything we do, we strive for honesty, fairness and integrity.”

http:\\www.pepsico.com

Back

Strategic Business UnitsStrategic Business UnitsStrategic Business UnitsStrategic Business Units

1. A distinct mission and specific target market

2. Control over their resources

3. Their own competitors

4. Plans independent of other businesses

Characteristics

Back

Marketing Plan ObjectivesMarketing Plan ObjectivesMarketing Plan ObjectivesMarketing Plan Objectives

Realistic

Marketing Objectives Must Be:

Back

“Our objective is to increase market

share by 40% and to obtain customer

satisfaction ratings of at least 90% in

2005.”

Measurable

For a Defined Period of Time

Consistent with Organizational Objectives

Situation AnalysisSituation AnalysisSituation AnalysisSituation Analysis

SS

WW

OO

TT

Things the company does well.Things the company does well.

Things the company does not do well.Things the company does not do well.

Conditions in the external environment that favor strengths.Conditions in the external environment that favor strengths.

Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

Internal

External

Opportunities: Strategic WindowsOpportunities: Strategic WindowsOpportunities: Strategic WindowsOpportunities: Strategic Windows

Limited period when the “fit” between key requirements of a market and competencies of the firm are optimum

Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)

MarketPenetration

MarketPenetration Increase market share among existing customers

MarketDevelopment

MarketDevelopment Attract new customers to existing products

Product Development

Product Development Create new products for present markets

DiversificationDiversification Introduce new products into new markets

Selecting a Strategic AlternativeSelecting a Strategic AlternativeSelecting a Strategic AlternativeSelecting a Strategic Alternative

Common Tools Common Goals

BCG Portfolio Matrix

Market Share

Profitability

GE Market Attractiveness Matrix

Differential AdvantageDifferential AdvantageDifferential AdvantageDifferential Advantage

Unique aspects of an organization that cause target market to patronize firm

A Sustainable Competitive Advantage cannot be copied by the competition.

Back to The Marketing Process

Differential or Competitive AdvantageDifferential or Competitive AdvantageDifferential or Competitive AdvantageDifferential or Competitive Advantage

A set of unique features of a company & its products that are perceived by the target market as significant and superior to the competition Two basic sources are:

Superior skillsSuperior resources

A Sustainable Competitive Advantage cannot be copied by the competition.

Back to The Marketing Process

Marketing StrategyMarketing Strategy

…involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

Marketing StrategyMarketing Strategy

• Target Market Strategy– Identify the market segments that are of interest to the firm–Analyze market based on attractiveness of market segments–Select one or more target markets

•The Marketing Mix–Product Strategies–Distribution (Place) Strategies –Promotion Strategies –Pricing Strategies