Content of a Strategic Marketing Plan
Prepared by:
Edmond Saadah
Marketing & Training Consultant
Marketing Defined . . .
Marketing is anticipating the needs and
wants of targeted customers and
managing the process through which
these needs and wants are satisfied . . .
profitably
The Business Plan and the Marketing Plan
• Marketing plan is implementation of the Business Plan
• Implementation consistent with objectives
• What are important considerations?
Types of Marketing Planning
• Strategic Marketing
– Encompasses the entire firm marketing strategy
– Deals with the broader issue of determining firm’s strategic
position in the market and how to create value from that position…
• Product Marketing/Pricing
– Deals with the tactical side of selling a product
– Set of standard operating procedures for marketing a particular
product.
Marketing Management Philosophies
Product Concept
Marketing Concept
Starting Point
Product
Market
Focus
Product Quality and
Features
Customer needs
Means
Improving production
& distribution
efficiency
Integrated Marketing
Profits through sales
volume
Profits through customer
satisfaction
Ends
Building A Strategic Marketing
Plan
Why a Marketing Plan?
1.
2.
3.
4.
To set the marketing objectives of the
organization.
To monitor and track the company’s marketing
strategies for a certain product or service.
To measure the performance of that certain
product or service.
To be a guide for management to revise the
marketing strategy.
The marketing plan can be included in the business plan as part of it.
Marketing Plan Elements
Business Mission
Current Situation and SWOT Analysis
Target Market (Segments)
Marketing Objectives
Marketing Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation, Evaluation and Control
"McDonald's brand mission is to be our customers'
favorite place and way to eat."
•
•
•
•
•
•
•
We place the customer experience at the core of all we do.
We are committed to our people.
We believe in the McDonald's System.
We operate our business ethically.
We give back to our communities.
We grow our business profitably.
We strive continually to improve.
Vision 2020
As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."
This new vision reflects Samsung Electronics’ commitment to inspiring its
communities by leveraging Samsung's three key strengths: "New Technology,"
"Innovative Products," and "Creative Solutions." -- and to promoting new value
for Samsung's core networks -- Industry, Partners, and Employees.
Through these efforts, Samsung hopes to contribute to a better world and a
richer experience for all.
General Motors Vision Statement:
"GM’s vision is to be the world leader in transportation products and related
services. We will earn our customers’ enthusiasm through continuous
improvement driven by the integrity, teamwork, and innovation of GM people."
General Motors Mission Statement:
"G.M. is a multinational corporation engaged in socially responsible operations,
worldwide. It is dedicated to provide products and services of such quality that our
customers will receive superior value while our employees and business partners
will share in our success and our stock-holders will receive a sustained superior
return on their investment."
Google Mission Statement:
"Google's mission is to organize the world's information and make it universally
accessible and useful."
Nike Mission Statement:
"To Bring Inspiration and innovation to every athlete in the world."
PepsiCo’s 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.pepsico.com
Strategic Marketing Plan
1.
2.
3.
4.
5.
6.
Environmental Analysis (SWOT)
Identifying Customers
Competitor/Value Creation Analysis
Marketing Mix: The 4 P’s
Financial Analysis and Budget
Implementation and Control Plan
1. Know Your Marketplace
• Strengths, Weaknesses, Opportunities, and Threats
(SWOT)
• Trends and changes:
– Market analysis
– Segmentation
– Prioritizing target markets
2. Who Are Your
Customers?
Know What Is Important to Your
Customer
•
•
•
Get inside the mind of your customers
Find out why they would buy from you. . . or why they would not
Truly understand their needs
–
–
–
Intentional listening
Customer analysis
Solve their problems
3. Competitor/Value Creation Analysis
Make sure you are distinctively different from your
competition in areas of importance to your
Customers:
• Competitive analysis
• Positioning
4. Determining the Marketing Mix
• The set of controllable variables that will
accomplish the marketing objectives:
•
•
•
•
Product strategy
Place (distribution) strategy
Promotion (communication) strategy
Pricing strategy
Product Strategy
• Portfolio of Products
– Corn, soybeans, hogs, dairy, cattle, value-added grain, fruits and vegetables,
custom farming operations, custom feeding operations
– Fits your strengths and weaknesses
– Provides acceptable risk/return tradeoff
– Meets needs of a particular customer segment
• Quality
– No. 1 versus No. 2
– GMO vs. non-GMO
• Service
– Timely custom operations
– Pre-sorting of grain or livestock quality
• Volume
– Large and small quantities
– Guaranteed volumes (contract)
McDonald’s Product Package
•
•
•
•
•
•
Food
Fast service
Fun for the kids
Variety
Non-smoking
Consistent product
Place Strategy
• Storage
– On-farm vs. off-farm
– Segregated or IP
• Timing
– On-demand
– Equal amounts throughout the year
• Location
– Delivery to multiple points
• Assortments
– Delivery of different amounts to different places at different times
Promotion Strategy
• Advertising
– Creating brochures and other advertisements on the products your farm provides
and what value they add
– Creating a farm logo
• Personal Selling
–
–
–
–
Telling your customers how you create value
Meeting your grain elevator manager for coffee
Having lunch with the lender
Taking a Christmas pie to your landlord(s)
• Public Relations
– Being a good neighbor
– Being involved in the community
– Open house days
Price Strategy
Price is the cost the customer must bear in order to obtain the
product.
It includes:
• list price
• discounts
• allowances
• payment period
• credit terms
Pricing Methods
• Value-Based Pricing
– Set price based on buyers’ perception of value (rather
than on the seller’s costs)
• Cost-Based Pricing
– Add a standard markup to the cost of the product
• Competition-Based Pricing
– Set price based on following competitors’ prices
Value-Based Pricing
• Customer Oriented
• Based on customer’s perceived
value
• Match price to perceived
value
• Brand loyalty
Competition-Based Pricing
•
Price decision based on actions
of competition
• Less attention on cost or product
demand
• Large firms all charge the same
price
• Smaller firms follow lead of large
firms, may offer a slightly lower
price
5. Financial Analysis and Budgeting
• Estimate the demand given the pricing and promotion
strategy.
• Determine expenses associated with production and
marketing.
• Determine anticipated cash flows.
• Will strategy cash flow? When?
• What are the critical assumptions of the financial analysis
and what are the impacts of changes in those assumptions?
6. Implementation and Control
• Focus attention of everyone on delivering what the
customer wants
– Management of people
– Monitoring and control
Discovering Strategic Alternatives
Strategic
Opportunity
Matrix
Present Product
New Product
Present Market
Market
Penetration
Product
Development
New Market
Market
Development
Diversification
Discovering Strategic Alternatives
Market
Penetration
Increase market share among existing customers
Market
Development
Attract new customers to existing products
Product
Development
Create new products for present markets
Diversification
Introduce new products into new markets
Boston Consulting Group (BCG) Portfolio Matrix
HIGH
HIGH
LOW
MARKET GROWTH RATE
MARKET SHARE DOMINANCE
LOW
?
$
BCG Portfolio Matrix
MARKET SHARE DOMINANCE
HIGH
LOW
MARKET GROWTH RATE
HIGH
High growth
Market leaders
Require cash
LOW
High growth
Low market share
Need cash
Poor profit margins
$
Low growth
High market share
High cash flow
Low growth
Low market share
Minimal cash flow
BCG Portfolio Matrix:
4 Basic Strategies for Resource Allocation
Build
Provide financial resources (Invest) if SBU
(Problem Child) has potential to be a Star.
Hold
Preserve market share if SBU is a successful
Cash Cow. Use cash flow for other SBUs.
Harvest
Divest
Increase short-term cash return. Appropriate for all
SBUs except Stars.
Get rid of SBUs with low shares in low-growth
markets.
Market Attractiveness / Company Strength Matrix
BUSINESS POSITON
HIGH
HIGH
MEDIUM
WEAK
High Attractiveness
MEDIUM
MEDIUM
Medium Attractiveness
Low Attractiveness
LOW
LOW
MARKET ATTRACTIVENESS
MARKET ATTRACTIVENESS
STRONG
Content of a Strategic Marketing Plan
10 Essentials Elements of a Strategic Marketing Plan
1. Description of Problem you’re solving for customers: Problem Statement
2. Description of Products / Services
3. Overview of the Market Opportunity
4. Analysis of the Competition
5. Analysis of the targeted segments
6. Define the Marketing and Sales Objectives
7. Analysis of the Marketing Mix Elements
8. Define the Marketing Metrics to be tracked
9. Define the Marketing Budget
10. Implementation Plan: Monitoring, Control and Evaluation
Contents of a Strategic Marketing Plan
1
Current Situation Analysis:
1.
2.
Macro Environments (PESTLEE) Analysis
Market Analysis:
•
•
•
•
•
•
3.
Consumer Analysis:
•
•
•
•
•
4.
Market definition and size
Market segmentation
Industry structure
Porter 5 Forces analysis
Competition and market share
Market trends
Buying/Purchasing decision nature
Demographics
Psychographics
Buyer motivations and expectations
Loyalty segments
Internal Analysis:
•
Company Resources:
o
o
o
•
•
5.
Financial
People (H.R)
Skills
Vision, Mission and Objectives
Corporate Values and Culture
Summary of Current Situation Analysis:
•
•
•
•
Internal Strengths & Weaknesses
External Opportunities & Threats
Critical success factors in the industry
Our sustainable competitive advantage
Contents of a Strategic Marketing Plan (Continued)
2
Marketing Research:
1.
2.
3.
Information requirements
Desk Research:
•
Sales analysis
•
Other related available internal data/information
Marketing research:
•
Research Objectives and Methodology
•
Research Findings Analysis and Results
Contents of a Strategic Marketing Plan (Continued)
3
Marketing Strategy:
1. Product
•
•
•
•
•
•
2. Place
•
•
•
•
•
Product mix analysis
Product strengths & weaknesses: Perceptual mapping
Product Life Cycle (PLC) Analysis
Brand positioning :Unique Selling Proposition (USP)
Brand image perception and brand equity/power
Product Portfolio Analysis:
•
•
•
•
Ansoff’s Product Portfolio Matrix analysis
BCG Matrix Analysis
GE/Mckinsey Matrix analysis
Contribution margin analysis
Consumers insights (Usage & Attitudes) and buying habits
Retail market analysis
Customer segmentation
Geographical market
Distribution channel structure: Geographical coverage and logistics
Contents of a Strategic Marketing Plan (Continued)
3
Marketing Strategy
3. Price:
•
•
•
•
•
•
•
Pricing Objectives
Pricing Strategies (Skimming, or penetration)
Pricing methods (Cost plus, demand based or competitor indexing)
Discounts and allowances
Price elasticity and customer sensitivity
Price zoning
Break even analysis at various prices
•
•
IMC objectives
IMC Mix:
 Advertising (Brand advertising)
 Promotional campaign
 Public relations
 Direct Marketing
 Personal selling
 Web marketing and social media
 Viral marketing
 Word of Mouth marketing (buzz)
 Corporate Social Responsibilities (CSR) activities and campaigns
4. Promotion : Integrated Marketing Communications (IMC)
Contents of a Strategic Marketing Plan (Continued)
4
Implementation
•
•
•
•
•
5
Personnel requirements:
o Assign responsibilities
o Give incentives
o Training
Financial requirements
Marketing Information Systems Requirements
Month-by-month agenda
Contingencies (What if’s?)
Performance Analysis
•
•
•
•
•
•
Sales analysis
Market share analysis
Awareness level analysis (Day After Recall test)
Financial analysis
Expenses analysis
ROI analysis
Contents of a Strategic Marketing Plan (Continued)
6
Financial Analysis
•
•
•
•
7
Scenarios
•
•
8
Contribution margin analysis
Assumptions
Pro-forma monthly income statement
Break even analysis
Prediction of future scenarios
Plan of action for each scenario
Appendix
•
•
•
Results from research
Photos and specifications of the new product
Other related documents used as a reference
Edmond Saadah
Marketing & Training Consultant
Mobile (Saudi Arabia): +966-54-7777 494
edmond.olvamarketing.com
www.olvamarketing.com