Marketing ManagementMGT 2306

Lesson 4

Lesson 4 Objectives

• Define and examine the strategic marketing planning process

• Distinguish and differentiate each process step

• List and explain the components of a marketing plan

The Process of Strategic Marketing Planning

What?Where?How?

Who?What?How it affects

Determining the

business’s future

Long term plans

Action steps

Compare, evaluate, correct

Business Mission• A mission statement is a statement of the

purpose of a company, organization or person, its reason for existing.

a. Guides the action of an organization

b. Spell out the organization’s goal

c. Provide a direction by which strategies will be formulated

d. A guide to decision-making

world’s leading provider of premium products and premium services for individual mobility.”

the world's leading producers and providers of entertainment and information,

To attain the lowest cost so that everyone can fly with AirAsia

To widen access to quality education and provide lifelong learning opportunities by leveraging on technology, adopting flexible mode of learning, and providing a conducive and engaging learning environment at competitive and affordable cost

Tools of analysis for market environment

GE Market attraction Matrix

Ansoff Matrix

Proton Saga FLV 1.3 (window dressing)

New models together with Mitsubishi & partners

Proton Models to go into China & India markets

Develop motorbikes, trucks & vintage cars?

Ansoff Matrix

Understanding Competition Advantages

• Industry: Which specific industry are you in?• Product & use scope: What specific knowledge do you

possess?• Skill scope: What expertise do you possess?• Market Segment Scope: Which customer(s) are you

targeting your products at?• Vertical Scope: How forward/backward integrated is

your company?(control of suppliers/end-user market)• Geographic scope: How well positioned are you?

• Invest / Grow (pump in more money) – business future is bright, would be able to expand and grow indefinitely, able to sustain the competition & environment changes.

• Hold / Maintain (day to day monitoring) – Unable yet to determine future, need longer time or more data to make further decisions.

• Reap / Harvest (make as much money as possible) – Current situation is urgent, unstable, need to reap as much profits as possible in the short-term.

• Divest / Cease (close business) – Business future is not feasible. Gradual withdrawal of funds and attention and look at other possibilities/openings.

Concluding Management decisions

Elements of a marketing plan

• Executive Summary• Introduction (with vision & mission statement)• Environment Analysis• Designed strategies• Designed tactics• Control• Conclusion

Executive Summary (Ringkasan Eksekutif)

• An executive summary, sometimes known as a management summary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all.

Executive summary (Cont’d)

• It usually contains

a) a brief statement of the problem or proposal covered in the major document(s),

b) background information

c) concise analysis

d) main conclusions

It is intended as an aid to decision-making by managers and has been described as possibly the most important part of a business plan. They must be short and to the point.

Introduction

• This section should contain

a) Your company background, establishment and a Company vision and mission;

b) A brief description of the product that your company offers.

c) Include goals that you want to set for the product (sales figures, strategic and company-wide goals, etc.)

d) Keep the number and complexity of your goals at a maximum of three lines, and remember that they need to be concise, measurable, and moderately easy to achieve.

Environment analysis• This section contains a snapshot of your company,

your customer base, and your market at large. It should be divided into the following sections:-

a) Customer Analysis

b) SWOT analysis/ GE Matrix, Ansoff Matrix

c) Competitor Analysis

Designed strategies

• Start with the target customer. Who are you targeting?

• Then proceed with the marketing mix planning

a) Product

b) Price

c) Place

d) Promotion

Designed tactics• Elaborate in detail how P=promotion works. Include

your plans on:-

a) Advertising

b) Personal Selling

c) Sales Promotion

d) Public relations

e) Direct/Internet marketing

Control

• This section talks about budgets.

a) How much will be spent in each area of the promotional mix

b) Forecasts of revenues

c) Any changes or adjustments that you predict you’ll need to make in the future.

Conclusion

• Expand your executive summary here.

a) What will happen

b) Hopes & benefits that it will bring

c) End notes