Developing Marketing

Strategies and Plans

BMMK 5103 CHAPTER 2

Objectives

Marketing planning
Tactical and Strategic Marketing Plans
Marketing planning process
Marketing audits
Corporate Planning
Assumptions
Marketing Objectives
Marketing Strategy
Marketing Program
Mission statements

Marketing Planning

An outline of a design to
accomplish a specific objective:
To create value for customers at a
profit, or in the new concept of
marketing,
To create a mutually beneficial
relationship

Marketing Planning
Strengths of
organization
Weakness of
organization

Design for
creating value

Market Needs
Wants
Existing
competitors
Expected
competitors

Marketing Planning
Process
Definition:
The application of marketing
resources to achieve marketing
objectives.

Marketing Planning
Process
1.
2.
3.

4.

5.

Performing a situation analysis

Formulating basic assumptions
Setting objectives for what is
being sold and to whom
Deciding how the objectives are
to be achieved
Scheduling and costing out the
actions necessary for
implementation

Develop
a Market Plan

Management provides little guidance

as to how the process should be
managed.
To Compromise between what is desirable
and what is practicable

Management must be customized to

their particular organization
Size
Complexity
Character and diversity of company
operations

Essential of Marketing
Planning

We need marketing planning

when hostiles increased and
environment is complex.

Our Challenge

We should manage:

Revenue

Profit

Optimization
Cost

Return on
investment

Application of
Marketing Plan
1.
2.
3.
4.
5.
6.
7.

8.

To help identify sources of competitive

advantage
To force an organized approach
To develop specificity
To ensure consistent relationships
To inform everyone in the organization
about priorities
To obtain resources needed to implement
plans
To engage organizational support at all
levels, form the bottom to the top of the
organization
To set objectives and strategies

The Elements of
Strategy
1.

2.
3.
4.
5.

6.

7.

Stepping back
form the day to
day
Ideas and thought
Activity/Action
Setting Objectives
and goals
Important
decisions and
choices
Significant
commitment of
resources
Not easily
reversible

9.
10.
11.
12.
13.

14.
15.
16.
17.

Differentiation
Insight
Vision
Defines the
business we are in
Defines the
business we are
becoming
Value
Tradeoffs
Objectives and
goals
Strategy Vs. Tactics

Strategic Plan
Definition:
A clear and simple summary of
Key market trends,
Key target segments,
The value required by each segment,
How the company intends to create
value,
With a clear prioritization of marketing
objectives and strategies, together with
financial consequences.

Biggest Danger for

Organizations
Most Managers
prefer to sell the
products they find
easiest to sell to
customers who
offer the least line
of resistance.

Strategy
Strategy describes:
The direction a business will pursue
and guides the allocation of resources
and effort
The business we are in and becoming.
And provides:
The logic that integrates the
Perspectives of functional departments
and operating units and points them
all in the same direction.

Strategy Statement

1.

2.

3.

The strategy statement for a

business unit is composed of the
following three elements:
A business definition that specifies
the area in which the business will
compete.
A strategic thrust that describes
where competitive advantage is to be
gained.
Supportive functional strategies.

Marketing Strategy
Definition:
It is a statement of how a brand
or product line will achieve its
objectives
It Provides decisions and direction
regarding variables such as:
Segmentation of the market,
Identification of the target market,
Positioning,
Marketing Mix elements and

Tactically Oriented
Company
St
ra
te
gi
c

Board

Senior
Management

Middle
Management

Operations

Ta
ct
ica
l

rie
nt
at
io
n

Or
ien
tat
io
n

Strategic Oriented
Company
Board
St
ra
te
gi
c

Senior
Management

Middle
Management

Operations

Ta
ct
ica
l

rie
nt
at
io
n

Or
ien
tat
io
n

Rules of
Marketing Planning
Develop the strategic marketing
plan.

1.

Scanning the external environment

Identifying early on the effect this
may have on the company

A strategic plan should cover a

three-year period.

2.

Never write the one-year plan first

and extrapolate from it.

Marketing Planning
Process
A strategic marketing plan should contain the
following:
1.
Executive summary
2.
Mission Statement
3.
Financial Summary of revenue, expenses
and earnings
4.
Marketing audit
5.
SWOT analysis
6.
Assumption of key determinants
7.
Overall marketing objectives and strategies
8.
Expected results
9.
Alternatives (contingency plan)
10. Budget

Stages of Marketing Plan

Phase one
-Goal
Setting
Phase Two
Situation Review

Mission. 1
Corporate objectives. 2
Marketing audit. 3
SWOT analysis.4
Assumptions. 5

Phase
ThreeStrategy
Formulation

Marketing objective and strategies. 6

Estimate expected result. 7
Identity alternative plans and mixes. 8

Phase FourBudget. 9
Resources allocation
and
First year detailed implementation program. 10
monitoring

Measuremen
t and review

Critical Factors

Delegation
When companies delegate
marketing planning to planner, the
plan invariably fails, because
planning for line management
cannot be delegated to a third party.

Commitment
Without it, those charged with
introducing the planning found that
there was great resistance to
planning on the part of local

Marketing Audit I
Marketing audit is a
comprehensive, systematic,
independent, and periodic
examination of a companysor
business unitsmarketing
environment, objectives,
strategies, and activities with a
view to determining problem areas
and opportunities and
recommending a plan of action to
improve the companys marketing

Marketing Audit II
Goal:
To see how well the firm is applying
the marketing concepts
1. Examine external and internal
information and procedures
2. Identify problems in the
environment

Marketing Audit III

Need for an audit does not

manifest itself until things start to
go wrong for a company in the
form:
Declining sales
Falling margins
Lost market share
Underutilized production capacity

Marketing Audit IV

External Audit
-By independent experts
-Starts with an examination of
information on the general economy
and then moves on to the outlook for
the health and growth of the markets
served by the company.

Internal Audit
-By members of the marketing
organization
-To assess the resources of the
organization as they relate to the

Marketing Audit V

At least once a year

Using:
Normal information,
Control Procedures,
Marketing Research

Marketing Audit VI

Company Executives and

Managers
Few Consultants have the in-depth
knowledge of market, customers,
company culture, and the industry
that company line managers have.

External Consultants
Every company is at risk of
becoming blinded to reality by the
influence of company culture

Kind of variables
for Controlling

Non Direct Control

These usually take the form of what
can be described as:
Environment,
Market,
Competitive variables

Company has Control

Operational variables

Auditing Process
1.

2.

Identification, measurement,
collection, and analysis of all
facts and opinions that affect a
companys problem
The application of judgment to
uncertain areas that remain
after the initial analysis

Marketing Audit
Procedure

Marketing environment audit

Marketing strategy audit
Marketing organization audit
Marketing system audit
Marketing productivity audit
Marketing function audit
Marketing excellence review
Ethical and social responsibility
review

SWOT Analysis

External
Opportunities
Internal

Threats

Strengths

SO

ST

Weakness

WO

WT

Corporate Planning
Step 5:
Corporate

Step 4:
Plans

Step 3:
Objective
and
Strategy
Setting

Step 2:
Managem
ent Audit

Marketing

Marketing

Marketing

Plans
Issue:
corporate
objectives
and
strategies
Marketing

Step 1:
Corporate
Financial
Objective

Targeted
in
Distributio Distributio Distributio Growth
Sales and
n
n
n
Manufactu Manufactu Manufactu earnings
ring
ring
ring
Financial
Financial
Financial
Personnel
Personnel
Personnel

Elements of
Corporate Plan
1.
2.

3.

The desire level of profitability

Business boundaries

What Kinds of products will be sold to what

kinds of market (Marketing)

What Kinds of facilities will be developed

(Production and distribution)

The size and character of the labor force

(Personnel)

Funding (Finance)

Technology to be developed (Research and

development)
Other corporate objectives

Social Responsibility and corporate

Stock-market

Employer image

Assumptions

This is one of the most

critical steps in the
preparation of a marketing
plan because it is the easiest
step to do carelessly.
They should be:
Key,
Critical
and few in Number
Consistent with relevant known
facts
With defensible assumptions

Examples:

Industrial overcapacity will increase

from 105 percent to 115 percent as
new plants come into operation.
Price competition will force price levels
down by 10 percent across the board.
A new product that competes with ours
will be introduced by our major
competitor before the end of the
second quarter.

Marketing Objectives and

Strategies
Three Intensive Growth Strategies:
Ansoffs Product/Market Expansion Grid

Existing
Products

New
Products

Existing
Markets

1. Market
Penetration

3. Product
Development

New
Markets

2. Market
Development

4. Diversification

The Marketing Mix

Marketing
Mix
Place

Product
Customer
Solution

Convenience

Price

Promotion

Customer Cost

Communication

Use of Marketing Plan

To determine:
Where the company is now,
Where it wants to go,
How to get there
Includes:
Advertising Plan
Sales Promotion Plan
Pricing Plan
Distribution Plan
Product Plan
Target Market Plan

The Marketing Budget

To justify all marketing

expenditures from a zero base
each year against the task that
you wish to accomplish.

Mission Statements

It is one of the most difficult aspects

of marketing planning to master,
largely because it is philosophical
and qualitative in nature.

Key points:

1. Role or Contribution

2.
3.
4.
5.

Profit
Service
Opportunity seeker

Business definition
Core Competencies
Company/Division Positioning
Indications for the future

Types of Mission
Statements

Motherhood
It found in annual reports designed to
stroke shareholders/Non Practical Use
The Real Thing
Meaningful Statement/impact on the
behavior of the executives at all levels.
Purpose Statement
Lower-Level mission
statement/Appropriate on the strategic
business unit, departmental or product
group level of the organization.

Examples of
Corporate Mission
SINGAPORE AIRLINES is engaged
in air transportation and related
businesses. It operates worldwide as the flag carrier of the
Republic of Singapore, aiming to
provide services of the highest
quality at reasonable prices for
customers and a profit for the
company

Examples of
Corporate Mission
MARRIOTTS Mission Statement:
We are committed to being the
best lodging and food service
company in the world, by treating
employees in ways that create
extraordinary customer service
and shareholder value

Last Word

There is no secret magic or a

formula.
It is more of an age-old adage
that harder they work, the luckier
they get.
It is not necessary to be a mighty
corporation to do all this and a
company of any size should be
able to do so and succeed.

A Goal is a dream
with a deadline

Zig Zaglar