Strategic Planning:Developing and Implementing a Marketing Plan

Learning Objectives

Understand the importance of strategic marketing and know a basic outline for a marketing plan

Develop an appropriate business mission statement

Describe the criteria for stating a good marketing objectives

Explain the components of a situation analysis Identify strategic alternatives and describe tools

used to help select alternatives

After this report, you should be able to:

Discuss the target market strategies Describe the elements of marketing mix Explain why implementatation, evaluation,

and control of the marketing plan are necessary

Identify several techniques that help make strategic planning effective

The Nature of Strategic Planning

What is Strategic Planning?Strategic Planning

the managerial process of creating and maintaning a fit between the organization's objective and resources and the evolving market opportunities.

Goallong run profitabilitygrowth

Strategy

Some example of Strategic Decisions

How do companies go about strategic marketing planning?

How do employees know how to implement the long term goals of the firm?

Marketing Plan

The answer is.....

What is a Marketing Plan?Planning...

the process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Marketing Planningdesigning activities relating to marketing

objectives and the changing marketing environment.

Marketing Plana written document that acts as a guidebook

of marketing activities for the marketing manager.

Why write a Marketing Plan???

Because.....it provides the basis by which actual and expected

performance can be comparedit provides clearly stated activities that help

employees understand and work toward common goals

it allows you to examine the marketing environment in conjunction with the inner workings of the business

it allows the marketing manager to enter the marketplace with an awareness of possibilities and problems

"PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the high standards of integrity."

What business are we in?

Where are we going? The answer is the

firm's...

Define the Business MissionMission Statement

the firm's long term vision based on a careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions

It's definition profoundly affects... long-run resource allocationprofitabilitysurvival

What if the Business Mission Statement are stated too narrowly?it suffers from Marketing myopia

Marketing myopiathe business is defined in terms of goods and

services rather than in terms of benefits that customers seek

Myopia means...narrowshort term thinking

Set Marketing Plan Objectives

Is setting a Marketing Objectives is important?answer........YES!

Why?without objectives there is

no basis for measuring the success of marketing plan activities

Marketing Objectivea statement of what

is to be accomplished through marketing strategies

Criteria:realistic, measurable,

and time specificconsistent and

indicates the priorities of the organization

"SMART" Approach

SMART stands for:SpecificMeasurableAchievableRealisticTime Specific

Poorly Stated Objectives Well-Stated Objectives

Our objective is to be a leader in the industry in terms of a new product development.

Our objective is to spend 12 percent of sales revenue between 2013 and 2014 on research and development in an effort to introduce at least five new products in 2014.

Our objective is to maximize profits. Our objective is to achieve a 10 percent return on investment during 2013, with a payback on new investments of no longer than four years.

Our objective is to better serve customers.

Our objective is to obtain customer satisfaction ratings of at least 90 percent on the 2013 annual customer satisfaction survey, and retain at least 85 percent of our 2013 customers as repeat purchasers in 2014

Our objective is to be the best that we can be.

Our objective is to increase market share from 30 percent to 40 percent in 2013 by increasing promotional expenditures by 14 percent

Carefully specified objectives serve several functions...communicatemotivatorsclarifycontrol

Before marketing activities can be define, what do marketers must understand???

"The current and potential environment that the product or service will be marketed in."

Now.......how can they do that???

Conducting a Situation Analysis

Conduct a Situation Analysis

SWOT Analysisidentifying internal strengths(S) ,

weaknesses(W), external opportunities(O), and threats(T)

How to examine Internal Strengths and Weaknesses

Production Costs Marketing Skills Financial Resources Company or Brand

Image Employee Capablities Technology

How to examine External Opportunities and Threats

Environmental Scanningthe collection and interpretation of

information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Types of Organizational response to the External Environment

ProspectorReactorDefenderAnalyzer

Strategic Window

The limited period during which the 'fit' between the key requirements of a market and the particular competencies of firm are at an optimum

Four Strategic Alternatives

Market PenetrationShare

Market DevelopmentCustomers

Product DevelopmentProduct

DiversificationNew Product + New Market

Selecting a Strategic Alternative

A. PORTFOLIO MATRIXA tool for allocating resources among

products or strategic business units on the basis of relative market share and market growth rate.

Strategic Business Unita subgroup of a single business or a

collection of related business within the larger organization

SBU's Categories

StarsCash cowsProblem ChildrenDogs

SBU's Basic Strategies

BuildHoldHarvestDivest

B. Market Attractiveness/Company Strength Matrix tool for allocating resources among

strategic business units on the basis of how attractive a market is and how well the firm is positioned to take advantage of opportunities in that market.

Differential Advantage one or more unit aspects of an

organization that cause target consumers to patronize that firm rather than competitors.

Basic sources of differential advantage:Superior SkillsSuperior Resources

Describe the Marketing Strategy

Marketing Strategyactivities of selecting and describing one

or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target market.

The process begins with:MOA (Market Opportunity Analysis)

The Marketing Mix

Marketing Mixa unique blend of product, place,

promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

Four P'sProductPlacePromotionPrice

Following up the Marketing Plan

IMPLEMENTATIONprocess that turns a marketing plan into

action assignments and ensures that this assignments are executed in a way that accomplishes the plan's objective

EVALUATION and CONTROLEvaluation

gauging the extent to which the marketing objectives have been achieve during the specified time period

Controlprovides the mechanism for evaluating

marketing results in light of the plan's goals and for correcting actions that do not help the organization reach those goals within budget guidelines.

Marketing Audita thorough, systematic, periodic evaluation

of the goals, strategies, structure, and performance of the marketing organization.

Four characteristics of Marketing AuditComprehensiveSystematicIndependentPeriodic

Effective Strategic Planning

Continual Attention Creativity Management

Commitment

MEMBERS

Marjorie RiceAriane Rose GardeLeah JimenezTricia IcabandiChrisol Cuanico

Finished on : December 1,2013 (4:00 p.m.)