Lecture 4: Marketing Strategy and Planning Lecture Objectives Planning -/questions/processes? Strategy -components and measurement
Lecture 4: Marketing Strategy and Planning Lecture Objectives Planning - role/questions/processes? Strategy - components and measurement
Marketing planning 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
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?
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?
The marketing planning process Business mission Re-definition Marketing audit Marketing planning at SWOT analysis the business level Marketing objectives Core strategy Marketing Marketing mix decisions planning at the product Organization and implementation level Contro
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
Planning at the business level Business mission Re-definition Marketing audit SWOT analysis Marketing objectives Strategic Strategic thrust objectives
3 Re-definition Planning at the business level Business mission Marketing audit SWOT analysis Marketing objectives Strategic thrust Strategic objectives
Planning at the product level Core strategy Target Competitive Competitor markets advantage targets Marketing mix decisions Organization and implementation Control
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 Purpose (Why the company exists Strategy Company values CThe commercial rationale) (What senior management believes in) Standards and behaviours CThe policies and behaviour patterns that guide How the company operates
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)
External marketing audit checklist The market Market size, growth rates, trends and developments t Customers, who are they, their choice criteria, how, when where do they buy, how do they rate us vs the competition on product, promotion, price, distribution Market segmentation: hca. 心A↓L \efite Competition do each group seek Who are the major competitors Distribution: power chan potentials,physical distr What are their objectives and strategies What are their strengths and weaknesses influencers Market shares and size of competitors Profitability analysis Entry barriers
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, promotion, 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 What are their objectives and strategies What are their strengths and weaknesses Market shares and size of competitors Profitability analysis Entry barriers 6
Internal marketing audit checklist Operating Marketing Results Strategic Mix (by product, customer Issues Analysis Effectiveness geographic region/ Marketing objectives .Product . Sales Market segmentation Price Market share. Competitive advantage . Promotion e Core competences .Distribution Positioning Nrtfolio analysis Marketing Structures Marketing . Marketing organisation Systems .Marketing training Marketing information system .Intra- and interdepartmental .Marketing planning system communication Marketing control system
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 analysis Marketing Structures •Marketing organisation •Marketing training •Intra- and interdepartmental communication Marketing Systems •Marketing information system •Marketing planning system •Marketing control system 7
SWOT analysis Source Internal Strengths Weaknesses (controllable) Conversion Strateges Matching Strategies Conversion External Strategies (uncontrollable) Opportunities Threats
Source Internal (controllable) Strengths Conversion Matching Strategies Weaknesses Strategies Conversion External (uncontrollable) Opportunities Strategies Threats SWOT analysis