Part 1: Marketing strategy and
management
Chapter 2: Strategic marketing planning
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When we finish this lecture you
should
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Understand what marketing managers do
Know what marketing strategy planning is
Understand what target marketing means
Be familiar with the four Ps of the marketing mix
Be familiar with the framework for marketing planning
Understand that marketing plans are a written statement of
the strategy
Know the difference between a marketing strategy, a
marketing plan and a marketing program
Understand the difference between international and global
strategy
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Figure 2.1 The marketing management process
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Figure 2.2 A marketing strategy showing the four
Ps of the marketing mix
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Marketing strategy planning
• Finding opportunities and developing profitable
marketing strategies
• Target market
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A similar group of customers to whom a company wishes
to appeal
• Marketing mix/four Ps
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The controllable variables that the company puts together
to satisfy this target group
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Figure 2.4 Overview of the marketing strategy
planning process
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Figure 2.4 Overview of the marketing strategy
planning process
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Exhibit 2.1
Marketers must design their plan with a specific target market in mind.
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Target marketing vs mass marketing
• Target marketing
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Marketing mix is tailored to fit specific target customers
• Mass marketing
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Vaguely aims at ‘everyone’ with the same marketing mix
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Figure 2.5 Marketing decisions areas organised
by the four Ps
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The four Ps—product
• Concerned with developing the right product for
the target market
• A ‘product’ can be a service
• Branding can be a key element of a product
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Figure 2.6 Typical changes in marketing variables
over the product life cycle
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The four Ps—place
• Place is concerned with getting the right product to
the target market
• A product reaches customers through a channel of
distribution
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Any series of businesses (or individuals) that participate in
the flow of products from producer to consumer
• Physical distribution and decisions about logistics
relate to other ‘place’ decisions
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Figure 2.7 Four examples of basic channels of
distribution for consumer products
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The four Ps—promotion
• Promotion is informing the target market or others
in the channel about the right product
• Marketers put together an optimum portfolio of
these tools—the promotional mix
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Personal selling
Non-personal communication
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Advertising
Publicity
Sales promotions
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Exhibit 2.2a
New products must be introduced to the market with a differentiation
that makes them stand out from their competition.
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The four Ps—price
• Price setting must consider the kind of competition
in the target market—and the cost of the whole
marketing mix
• Often, different customers pay different prices
• Marketers must decide what’s included in the price
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Blending the four Ps
• Why is the four Ps idea helpful?
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Provides an organising framework
Helps to bring many, more detailed decisions together in
a logical fashion
Focuses thinking on the idea that ‘ALL’ marketing
decisions must work together as a whole
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Figure 2.8 Relating strategy policies to
operational decisions for a children’s shoe
company
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Figure 2.9 Framework and summary outline of the
different sections of a marketing plan
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Figure 2.9 Framework and summary outline of the
different sections of a marketing plan (continued)
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Figure 2.9 Framework and summary outline of the
different sections of a marketing plan (continued)
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The marketing plan
• Marketing plan—a written statement of a
marketing strategy and the time-related details for
carrying out the strategy
• Spells out, in detail
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What marketing mix is offered
To what target market
For how long
What resources (costs) are needed and at what rate
What results are expected (e.g. sales and profits)
What control procedures will be used
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Structure of a marketing plan
• Executive summary
• Introduction and situation analysis
• Target market and segments
• Objectives and goals
• Strategic options
• Selected strategy
• Tactics
• Budget
• Audit and control procedures
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Executive summary
• A complete 1–2 page summary of the marketing
plan
• An overview of the major goals and elements of
the plan
• Key underlying assumptions
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Relevant corporate objectives
External environmental factors
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Introduction and situation analysis
• Background about company
• Key performance trends and any desired changes
• Set the scene and assess the company’s past
strategy
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Introduction and situation analysis
(continued)
• Environment scanning for relevant trends
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Demographic
Economic
Social and cultural
Technological
Political and legal
Competitors
Market research
SWOT analysis
Assumptions to be made
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Segmentation and targeting
• Main benefit delivered by the product must be
identified
• Segment/s of the population most likely to value
this benefit should be discussed
• Market research
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Estimate the market size, given the target market and the
foreseeable competition
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Company objectives or goals
• Outline the company mission
• Identify all company objectives or goals
• Managers should ensure their objectives are
SMART
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Specific
Measurable
Achievable
Realistic
Time-bound
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Strategic options and selected
strategy
• Identify and analyse possible strategic choices
• Select particular target markets and develop major
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marketing mix components
Test ‘fit’ the company’s SWOT analysis
Prepare a broad statement of strategic direction
indicating overall marketing mix and target market
strategies to be developed
Specify competition
Prepare a positioning statement and image
description
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Tactical elements—the marketing mix
• Significant detail within each component of the
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selected strategy
Product name, brand
Price
Place of distribution
Packaging options and design
Advertising, sales promotions, sales-force
management
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Tactical elements—the marketing mix
(continued)
• Credit terms
• Timing, budgeted costs
• People to coordinate
• Key results expected
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Budget
• Monthly
• Quarterly
• Product or product-group level
• Sales quantities and revenues
• Costs
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Production
Provision of services
Physical distribution
Advertising
Personal selling
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Audit and control procedures
• Monitoring of performance
• Which activities are being achieved
• Monitor relevant internal/external environmental
factors
• Relate to objectives
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The marketing program
• Marketing program—blends all the company’s
marketing plans into one ‘big’ plan, which is an
integrated part of the whole-company strategic
plan
• Program requires an effective ‘building up’ process
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A good program must be based on good plans
Each plan must be carefully developed
Each plan is based on a marketing strategy
Each strategy is based on a marketing mix and a target
market
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Figure 2.10 Elements of an organisation’s
marketing program
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Figure 2.11 Distribution of different companies
based on their marketing performance
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Strategy planning for international
marketing
• Marketing managers must plan the company’s
overall marketing program to be flexible so that it
can be adapted to conditions in different countries
• Delegate responsibility to local managers
• Develop regional groupings
• Global marketing
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Focus on similarities between markets around the world
and attempts to develop and implement common product,
place and promotion strategies and plans in those various
markets
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Suggested approach to global
marketing
• Identify all important areas of similarity and
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difference between markets
Delegate some decision-making to local
management
Clarify which elements of the marketing mix are
essential in achieving goals
Obtain feedback from local management to enable
common problems to be identified
Consider developing a strong international culture
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Exhibit 2.5
Cultural differences are some of the reasons that make international
marketing difficult.
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What we will be doing in the next
chapter
• In Chapter 3 we will discuss that marketers must
understand the capabilities of the company and its
competitors; analyse customer needs; and choose
marketing strategy variables within the framework
of the marketing environment. They must also
understand how that environment is changing
when assessing the best opportunities for their
organisation.
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