Lecture 4,Marketing Strategy and
Planning
Lecture Objectives
?Planning - role/questions/processes?
?Strategy - components and
measurement
The process by which businesses analyse the
environment and their capabilities,decide upon
courses of marketing action,and implement those
decisions
Is part of strategic planning
Marketing planning
Why plan?
A typical planning framework
? Where are we now?
? How did we get there?
? Where are we heading?
? Where would we like to be?
? How did we get there?
? Are we on course?
2
Re-definition
The marketing planning process
Business mission
Marketing audit
SWOT analysis
Marketing objectives
Core strategy
Marketing mix decisions
Organization and implementation
Control
Marketing
planning at
the business
level
Marketing
planning at
the product
level
3
Re-definition
Planning at the business level
Business mission
Marketing audit
SWOT analysis
Marketing objectives
Strategic
thrust
Strategic
objectives
4
Planning at the product level
Core strategy
Marketing mix decisions
Organization and implementation
Control
Target
markets
Competitive
advantage
Competitor
targets
The Ashridge Mission Model
5
Purpose
(Why the company exists)
Company values
(What senior management believes in)
Standards and behaviours
(The policies and behaviour patterns that guide
How the company operates
Strategy
(The commercial rationale)
Microenvironment
The market
External marketing audit checklist
Competition
Microenvironment
Economic,inflation,interest rates,unemployment
Social/cultural,age distribution,lifestyle changes,values,
attitudes
Technological,new product and process technologies,materials
Political/legal,monopoly control,new laws,regulations
Ecological,conservation,pollution,energy
The market
Market size,growth rates,trends and developments
Customers,who are they,their choice criteria,how,when,
where do they buy,how do they rate us vs,the competition
on product,promotio,price,distribution
Market segmentation,how do customers group,what benefits
do each group seek
Distribution,power changes,channel attractiveness,growth
potentials,physical distribution methods,decision makers and
influencers
Competition
Who are the major competitors
Wh t are their obj ctives and str tegies
What are their strengths and weaknesses
Market shares and size of competitors
Profitability analysis
Entry barriers
6
Internal marketing audit checklist
Marketing
Structures
Marketing
Systems
Marketing
Mix
Effectiveness
Operating
Results
(by product,
customer,
geographic
region Strategic Issues
Analysis
Operating
Results
(by product,customer,
geographic region
?Sales
?Market share
?Profit margins
?Costs
Marketing
Mix
Effectiveness
?Product
?Price
?Promotion
?Distribution
Strategic
Issues Analysis
?Marketing objectives
?Market segmentation
?Competitive advantage
?Core competences
?Positioning
?Portfolio analysisMarketing Structures
?Marketing organisation
?Marketing training
?Intra- and interdepartmental
communication
Marketing
Systems
?Marketing information system
?Marketing planning system
?Marketing control system
7
Sou rce
In tern al
(co n tro lla b le )
Str e ng ths
C o n ve rsi o n
Mat ch i n g
St rateg i es
Wea k nesses
Strate g i es
C o n ve rsi o n
Extern al
(u n c o n tro lla b le)
Opp ortu ni t ies
St rateg i es
Th re a ts
SWOT analysis
9
Jaguar
An important
part of
marketing
planning is
the target
marketing,
Here Jaguar
target the
wealthy
young and
young at
heart
10
Strategic thrust,the generic options
Product
Development
Market
Penetration
or
Expansion
Enter New
Markets
Market
Development
Products
Markets
Existing New/Related
New/Related
Existing
11
Testing core strategy
Clearly defines
target customers
and their needs
Resource and
managerially
supportable
Internally
consistent
Derived to
achieve product
market
objectives
Creates a
competitive
advantage
Incurs
acceptable
risk
Core
strategy
Key ques t ion s M ar keting plan n ing stage
wh ere/wh en ad dr ess ed
Where a r e w e now a nd how
did w e g et t her e?
Bu s iness mi s s ion
M arketi ng a udi t
S WO T a na lys is
Where a r e w e hea ding? M arketi ng a udi t
S WO T a na lys is
Where wo uld w e l ik e to b e? M arketi ng obje cti v es
H ow do we ge t th ere? Co re stra tegy
M arketi ng mi x de cisions
O rganis ati on
Implem ent ati on
A re we on c our s e? Co ntrol
Does the process of marketing planning answer
the key questions?
The rewards
? Consistency
? Encourages monitoring of change
? A adaptable/flexible organisation
? Stimulates achievement
? Resource allocation
? Competitive advantage
Problems
? Political
? Opportunity cost
? Reward systems /short termism
? Lack/quality of Information
? Culture
? Personalities
? Lack of knowledge of skills
Planning
Lecture Objectives
?Planning - role/questions/processes?
?Strategy - components and
measurement
The process by which businesses analyse the
environment and their capabilities,decide upon
courses of marketing action,and implement those
decisions
Is part of strategic planning
Marketing planning
Why plan?
A typical planning framework
? Where are we now?
? How did we get there?
? Where are we heading?
? Where would we like to be?
? How did we get there?
? Are we on course?
2
Re-definition
The marketing planning process
Business mission
Marketing audit
SWOT analysis
Marketing objectives
Core strategy
Marketing mix decisions
Organization and implementation
Control
Marketing
planning at
the business
level
Marketing
planning at
the product
level
3
Re-definition
Planning at the business level
Business mission
Marketing audit
SWOT analysis
Marketing objectives
Strategic
thrust
Strategic
objectives
4
Planning at the product level
Core strategy
Marketing mix decisions
Organization and implementation
Control
Target
markets
Competitive
advantage
Competitor
targets
The Ashridge Mission Model
5
Purpose
(Why the company exists)
Company values
(What senior management believes in)
Standards and behaviours
(The policies and behaviour patterns that guide
How the company operates
Strategy
(The commercial rationale)
Microenvironment
The market
External marketing audit checklist
Competition
Microenvironment
Economic,inflation,interest rates,unemployment
Social/cultural,age distribution,lifestyle changes,values,
attitudes
Technological,new product and process technologies,materials
Political/legal,monopoly control,new laws,regulations
Ecological,conservation,pollution,energy
The market
Market size,growth rates,trends and developments
Customers,who are they,their choice criteria,how,when,
where do they buy,how do they rate us vs,the competition
on product,promotio,price,distribution
Market segmentation,how do customers group,what benefits
do each group seek
Distribution,power changes,channel attractiveness,growth
potentials,physical distribution methods,decision makers and
influencers
Competition
Who are the major competitors
Wh t are their obj ctives and str tegies
What are their strengths and weaknesses
Market shares and size of competitors
Profitability analysis
Entry barriers
6
Internal marketing audit checklist
Marketing
Structures
Marketing
Systems
Marketing
Mix
Effectiveness
Operating
Results
(by product,
customer,
geographic
region Strategic Issues
Analysis
Operating
Results
(by product,customer,
geographic region
?Sales
?Market share
?Profit margins
?Costs
Marketing
Mix
Effectiveness
?Product
?Price
?Promotion
?Distribution
Strategic
Issues Analysis
?Marketing objectives
?Market segmentation
?Competitive advantage
?Core competences
?Positioning
?Portfolio analysisMarketing Structures
?Marketing organisation
?Marketing training
?Intra- and interdepartmental
communication
Marketing
Systems
?Marketing information system
?Marketing planning system
?Marketing control system
7
Sou rce
In tern al
(co n tro lla b le )
Str e ng ths
C o n ve rsi o n
Mat ch i n g
St rateg i es
Wea k nesses
Strate g i es
C o n ve rsi o n
Extern al
(u n c o n tro lla b le)
Opp ortu ni t ies
St rateg i es
Th re a ts
SWOT analysis
9
Jaguar
An important
part of
marketing
planning is
the target
marketing,
Here Jaguar
target the
wealthy
young and
young at
heart
10
Strategic thrust,the generic options
Product
Development
Market
Penetration
or
Expansion
Enter New
Markets
Market
Development
Products
Markets
Existing New/Related
New/Related
Existing
11
Testing core strategy
Clearly defines
target customers
and their needs
Resource and
managerially
supportable
Internally
consistent
Derived to
achieve product
market
objectives
Creates a
competitive
advantage
Incurs
acceptable
risk
Core
strategy
Key ques t ion s M ar keting plan n ing stage
wh ere/wh en ad dr ess ed
Where a r e w e now a nd how
did w e g et t her e?
Bu s iness mi s s ion
M arketi ng a udi t
S WO T a na lys is
Where a r e w e hea ding? M arketi ng a udi t
S WO T a na lys is
Where wo uld w e l ik e to b e? M arketi ng obje cti v es
H ow do we ge t th ere? Co re stra tegy
M arketi ng mi x de cisions
O rganis ati on
Implem ent ati on
A re we on c our s e? Co ntrol
Does the process of marketing planning answer
the key questions?
The rewards
? Consistency
? Encourages monitoring of change
? A adaptable/flexible organisation
? Stimulates achievement
? Resource allocation
? Competitive advantage
Problems
? Political
? Opportunity cost
? Reward systems /short termism
? Lack/quality of Information
? Culture
? Personalities
? Lack of knowledge of skills
