Marketing Strategy

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Marketing Strategy
Chapter 2 Developing the Marketing Plan
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Marketing Plan Structure
1) The specific outline used is not important as
long as the outline is comprehensive and in
cludes all relevant information.
2) The structure should be logical so it is eas
y to follow and communicates its message cl
early to top management. 3) The structure shou
ld be flexible enough to be adapted easily to
unique situations and organizational
characteristics. 4) Any marketing plan structu
re is just a framework, not a series of
sequential planning steps.
5) Many elements of a marketing plan are decide
d upon simultaneously, such as marketing st
rategy and implementation.
3
Executive Summary

• The executive summary is a synopsis of the
  overall marketing plan with an outline that
  conveys the main thrust of the marketing strategy
  and its execution.
• The purpose of the executive summary is to
  provide an overview of the plan so the reader can
  quickly identify key issues or concerns related
  to his or her role in the planning process.
• The executive summary tells managers what
  information is contained in the plan for other
  planning or implementation issues.
  
• The executive summary may also be used by others
  outside the immediate organization who have a
  stake in the firms success.

4
Environmental Analysis

• The environmental analysis summarizes all
  pertinent information obtained about three key
  business conditions the external environment,
  the customer environment (i.e., target markets),
  and the firm's internal (organizational)
  environment.
• Information for the environmental analysis may be
  obtained internally through the firm's
  information system or externally through primary
  and/or secondary marketing research.
• The environmental analysis should be
  simultaneously comprehensive in scope and focused
  on key issues in order to prevent information
  overload.
• The collection and organization of environmental
  data should be an ongoing effort, and the data
  can be stored and analyzed within the firm's
  marketing information system (MIS) so that
  up-to-date information about the firm's
  environment is available when needed.

5
SWOT Analysis

• The SWOT analysis focuses on the internal factors
  (strengths and weaknesses) and external factors
  (opportunities and threats) that give the firm
  certain advantages and disadvantages in
  satisfying the needs of its target market(s).
• Strengths refer to factors that give the firm an
  edge in meeting the needs of its target markets
  (i.e., a competitive advantage).
  
• Weaknesses refer to deficiencies that a company
  might have in marketing strategy development or
  implementation.
  
• Opportunities refer to favorable conditions in
  the environment that could produce rewards for
  the organization if acted upon properly.
  
• Threats refer to conditions or barriers that may
  prevent the firm from reaching its objectives.

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Marketing Goals and Objectives

• Marketing goals and objectives are formal
  statements of the desired and expected outcomes
  resulting from the marketing plan.
  
• Marketing Goals are broad, simple statements of
  what is to be accomplished through the marketing
  strategy.
  
• Marketing objectives are more specific and are
  essential to planning.

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Marketing Strategy

• Marketing strategies involve selecting and
  analyzing target markets and creating and
  maintaining an appropriate marketing mix
  (product, distribution, promotion, and price) to
  satisfy the needs of those target markets.
• The marketing plan should clearly define target
  markets in terms of one or more important
  segmentation variables (e.g., demographic,
  geographic, psychographic, product usage).
• The plan should specify how the elements of the
  marketing mix will work together to satisfy the
  needs of specific target market segments.
  
• The final portion of the strategy section of the
  marketing plan outlines the expected reactions to
  implementing the chosen marketing strategy.

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Marketing Implementation

• Marketing implementation is the process of
  executing the marketing strategy by creating
  specific actions that will ensure that the
  marketing objectives are achieved.
• What specific actions will be taken?
• How will these activities be performed?
• When will these activities be performed?
• Who is responsible for the completion of these
  activities?
  
• How will the completion of plan activities be
  monitored?
  
• How much will these activities cost?

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Evaluation and Control

• The first part, marketing evaluation, involves a
  financial assessment of the marketing plan.
  Financial projections are based on estimates of
  costs, sales, and revenues.
• The second part, marketing control, involves
  establishing performance standards, assessing
  actual performance by comparing it with these
  standards, and, if necessary, taking corrective
  action to reduce discrepancies between desired
  and actual performance.
• Performance standards can be based on sales
  volume increases, profitability, market share
  increases, or even advertising standards such as
  brand name recognition or recall.
• A firm can use a number of tools to pinpoint
  potential causes for discrepancies, including the
  marketing audit, a systematic examination of the
  firm's marketing objectives, strategy, and
  performance.

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Problems in Creating Marketing Plans

• In the past decade, many firms have changed the
  focus and content of their marketing plans.
  
• Of these changes, the one most frequently
  mentioned by marketing managers is an increased
  emphasis on the customer.
  
• Other important changes in marketing plans
  include better analysis of the competition, more
  specific objectives and measurement, and more
  reasoned and realistic planning.
• Some of the problems most commonly cited in the
  development of marketing plans, including getting
  company wide consensus and cooperation and
  finding enough time to prepare a good plan.
• Some shortcomings of marketing plans include too
  much emphasis on short-term goals and the plan
  not being specific enough.

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Using the Marketing Plan
1) A marketing plan is only as good as the
information it contains and the effort and c
reativity that went into its creation.
2) The importance of having an ongoing system o
f collecting relevant marketing information
cannot be overstressed. 3) A marketing plan i
s not a substitute for managerial judgment.
Managerial intuition and judgment are
essential in the marketing planning process.
4) The authority to approve a marketing plan
is typically vested in executives above the
marketing level. A good marketing plan
can sell itself to top management.
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Using the Marketing Plan (continued)
5) The completion of the formal, written plan is
not the most critical goal. It is more imp
ortant that the plan is approved by
top management and that the necessary
resources are provided to help ensure its i
mplementation. 6) To give a marketing plan eve
ry chance for success, very little
time should elapse between the completion
of the plan and its implementation. 7)
The creation of a marketing plan is an important
milestone, but is by no means the final ste
p in strategic market planning.
8) Due to ever-changing environments, a marketi
ng plan must be flexible enough to be adjus
ted on an ongoing basis.