Strategic Planning: Developing and Implementing a Marketing Plan

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Strategic Planning Developing and Implementing
a Marketing Plan
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Objectives

• Understand the importance of strategic marketing.
  Know the outline for a marketing plan.
• Define an appropriate business mission statement.
• Describe criteria for good marketing objectives.
• Explain components of a situation analysis.
• Identify strategic alternates and describe tools
  to select them.

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The Nature of Strategic Planning
LONG RUN PROFITABILITY AND GROWTH
Plus
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What is a Marketing Plan?

• Planning Process of anticipating future events
  and
• determining strategies

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

Clearly stated activities to work toward common
goals
Basis for comparison of actual and expected
performance

• Aware of threats and opportunities

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Marketing Plan Elements
Marketing Strategy
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Marketing Plan Elements
Marketing Strategy
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Define the Business Mission

• Answers the question
• What business are we in and where are we going?
  Example PepsiCos 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

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PepsiCos 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.peps
ico.com
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Strategic 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

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Marketing Plan Objectives

• Realistic

Measurable
For a Defined Period of Time

• Consistent with Organizational Objectives

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Situation Analysis
Things the company does well.
Things the company does not do well.
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.
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Opportunities Strategic Windows

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

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Discovering Strategic Alternatives (Windows)
Strategic Opportunity Matrix
Present Product
New Product
Market Penetration
Product Development
Present Market
Market Development
Diversification
New Market
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Discovering Strategic Alternatives (Windows)
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Selecting a Strategic Alternative

• BCG Portfolio Matrix

More

• GE Market Attractiveness Matrix

More
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BCG Portfolio Matrix
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BCG Portfolio Matrix
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Four Basic Strategies for Resource Allocation
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Market Attractiveness / Company Strength Matrix
BUSINESS POSITON
STRONG
MEDIUM
WEAK
HIGH
High Attractiveness
Medium Attractiveness
MARKET ATTRACTIVENESS
MEDIUM
Low Attractiveness
LOW
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Differential 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
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Differential 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 skills
• Superior resources
• A Sustainable Competitive Advantage cannot be
  copied by the competition.

Back to The Marketing Process
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Marketing 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.

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Marketing 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