Chapter
2
Marketing Strategy
Chapter 2
Developing the Marketing Plan
Chapter
2
Marketing Plan Structure
1) The specific outline used is not important as long as the outline
is comprehensive and includes all relevant information.
2) The structure should be logical so it is easy to follow and
communicates its message clearly to top management.
3) The structure should be flexible enough to be adapted easily to
unique situations and organizational characteristics.
4) Any marketing plan structure is just a framework, not a series of
sequential planning steps.
5) Many elements of a marketing plan are decided upon
simultaneously, such as marketing strategy and implementation.
Chapter
2
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 firm’s success.
Chapter
2
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.
Chapter
2
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.
Chapter
2
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.
Chapter
2
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
Chapter
Marketing Implementation
2
• Marketing implementation is the process of
executing the marketing strategy by creating specific
actions that will ensure that the marketing objectives
are achieved.
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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?
Chapter
2
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.
Chapter
2
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.
Chapter
2
Using the Marketing Plan
1) A marketing plan is only as good as the information it contains
and the effort and creativity that went into its creation.
2) The importance of having an ongoing system of collecting
relevant marketing information cannot be overstressed.
3) A marketing plan is 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.
Chapter
2
Using the Marketing Plan (continued)
5) The completion of the formal, written plan is not the most
critical goal. It is more important that the plan is approved by
top management and that the necessary resources are provided
to help ensure its implementation.
6) To give a marketing plan every 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 step in strategic market planning.
8) Due to ever-changing environments, a marketing plan must be
flexible enough to be adjusted on an ongoing basis.