Chapter 2
Winning Markets through Market-
oriented Strategic Planning
• OBJECTIVES OF THIS CHAPTER :
– In this chapter we are going to discuss in detail
how a marketer makes various marketing strategies
and plans, in order to affect customer value both in
short and long run for the effective operations of
overall organization.
Strategic Planning
Strategic planning determines where an organization
is going over the next year or more and how it's going
to get there.
It’s the long term objectives of a business firm where
the organization itself is the center point of
considerations.
In the strategic plan the focus is organization but in
business plan the focus is either a product or service.
• For Example: A football team manager makes
strategy for the whole team where the focus is on
winning the trophy not scoring goals by individual
players
Corporate and division strategic planning
• All corporate headquarter undertake four planning activities:
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each SBU
4. Assessing growth opportunities
Cont...
• Corporate Mission: A mission statement is a statement of the purpose of a
company and organization. The mission statement should guide the actions of
the organization, spell out its overall goal, provide a sense of direction, and
guide decision-making. It provides "the framework or context within which the
company's strategies are formulated.
• Strategic Business Unit or SBU: is understood as a business unit within
the overall corporate identity which is distinguishable from other business
because it serves a defined external market where management can conduct
strategic planning in relation to products and markets.
– For example: General Electric produced light bulbs, elevators, motors, and
appliances.
• Assigning Resources to Each SBU: once it has defined SBU’s
management must decide how to allocate corporate resources to each.
Cont...
Assessing Growth Opportunities: Assessing growth opportunities
includes planning new businesses, downsizing, and terminating older
businesses.
Growth strategies are:
Market penetration strategies: Market penetration occurs when a
company enters/penetrates a market with current products.
Product development strategies: (existing markets, new products):
McDonalds is always within the fast-food industry, but frequently markets
new burgers.
Market development strategies: (new markets, existing products):
Lucozade (energy drink) was first marketed for sick children and then
rebranded to target athletes.
Diversification strategies: (new markets, new products). For example
Mitsubishi jumped in fast food industry with KFC in Japan.
SWOT ANALYSIS
Strength
Weaknesses
Opportunities
Threats
• SWOT Analysis is a useful technique for understanding your
Strengths and Weaknesses, and for identifying both the
Opportunities open to you and the Threats you face.
SWOT Analysis Continue…
Strengths:
• What advantages does your organization have?
• What do you do better than anyone else?
• What unique or lowest-cost resources can you draw upon that others can't?
• What do people in your market see as your strengths?
• What factors mean that you "get the sale"?
• What is your organization's Unique Selling Proposition (USP)?
SWOT Analysis Continue…
Weaknesses:
• What could you improve?
• What should you avoid?
• What are people in your market likely to see as weaknesses?
• What factors lose you sales?
SWOT Analysis Continue…
Opportunities:
• What good opportunities can you spot?
• What interesting trends are you aware of?
Useful opportunities can come from such things as:
• Changes in technology and markets on both a broad and narrow scale.
• Changes in government policy related to your field.
• Changes in social patterns, population profiles, lifestyle changes, and so
on.
• Local events.
SWOT Analysis Continue…
Threats
• What obstacles do you face?
• What are your competitors doing?
• Are quality standards or specifications for your job, products or services
changing?
• Is changing technology threatening your position?
• Could any of your weaknesses seriously threaten your business?
Marketing Plan
• A marketing plan is a written document that details the
necessary actions to achieve one or more marketing
objectives. It can be for a product or, a brand, or a product
line. Marketing plans cover between one and five years.
The Marketing Plan
• The central point in planning for marketing decisions is the
Marketing Plan. the plan serves several functions including:
• Forcing marketing personnel to look internally in order to fully
understand the results of past marketing decisions.
• Forcing marketing personnel to look externally in order to fully
understand the market in which they operate.
• Setting future goals and providing direction for future marketing
efforts that everyone within the organization should understand and
support.
• Serving as a key component in obtaining funding to pursue new
initiatives.
Marketing Plan
• Situation analysis-customers/competitors
• Market opportunity and Issues
• Objectives
• Marketing strategy
• Target markets
• Positioning
• Marketing Mix-4P’s
• Setting marketing budget
• Review and implement
• Evaluate and Control
• Contingency Plan
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Situation analysis-customers/competitors
• The situational analysis is designed to take a snapshot of
where things stand at the time the plan is presented.
• Customers Analysis-Collection and evaluation of data
associated with customer needs and market trends through
customer satisfaction measurement and field testing.
• Competitors Analysis- Identify your major competitors-
compare your business with the competitors
(strength/weaknesses)
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3-Market opportunity and Issues
• Match your strength with the opportunity
available in the market.
– For example at the moments there are a lot
opportunities in Afghanistan related to
construction, logistic and products related to house
hold While the greatest issue is Security
Marketing Strategy and objectives cont…
• Determine Financial Objectives
For many organizations the ultimate goal of the marketing plan is the effect it
will have on the bottom line.
• Customer sales
– by volume and growth percentage (To achieve a healthy and continuous growth in
profit. )
– by segments
• Margins
• Profitability
• Ratios (expenses versus profit)
Marketing Strategy and objectives
cont…
• Determine Marketing Objectives
• The marketing objectives section will indicate targets to be
achieved across several marketing decision areas.
• Target market objectives
– market share ( for example: To attain a 15% increase in market shares within
the annual and achieve positive growth in the sales of the PRODUCT! )
• Total sale
• Segment sale
Marketing strategy and objectives
• This section consists of three major issues:
• Marketing Strategy
• Financial Objectives
• Marketing Objectives
• Marketing Strategy: Is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage.
• A marketing strategy should be centered around the key concept that
customer satisfaction is the main goal.
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Target Markets/ Positioning
• Segment your market- divide your market into subgroups-and
target the segment that matched with your capabilities
(Resources)
• Positioning: Is the act of designing the company’s offering
and image to occupy a distinctive place in the mind of the
target market.
• Position your brand in the minds and eyes of consumers better
than your competitors.
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Tactical Marketing Programs
• This is the heart of the marketing plan. It contains descriptions of detailed tactics to
be carried out to achieve the objectives and goals established
• Product- features- design- finishing- packaging- labeling
• Price- check the price of substitute products-value based-cost based
• Place- make the availability of your product possible.
• Intensive distribution-exclusive distribution-selective distribution. Direct
marketing-indirect marketing
• Promotion- advertisement- sales person- position your brand
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8-Marketing Mix
Setting the Marketing Budget
This section should lay out spending requirements
necessary for meeting the plan's objectives
• Outline spending requirements for each tactical
marketing decision
– Breakdown each category
• e.g., types of advertising, types of services offered, marketing
research expense, etc.
– Show detailed spending timetable by:
• Month
• Year
– Show spending by:
• Product (if plan is for more than one)
• Segment/Geographic area
• Distribution Network/Channel
Review and Implementation
• Marketing implementation: is the process of turning plans into action describing
who does what, when, and how. Effective implementation requires skills in
allocating, monitoring, organizing, and interacting at all levels of the marketing
effort.
• A brilliant strategic marketing plan counts for little if not implemented properly.
• Strategy addresses the what, and why of marketing activities, implementation
addresses the who, where, when and how.
• Evaluate and control: check your plan with regular interval of time, because
markets have altering (changing) behavior.
• Control the plan: spilt your annual plan in quarters, and check your sales, market
share and growth at the end of each quarter, if it is the same as it was planned then
carry on but if not then change strategies.
Contingency Plan
• There should be a plan B (alternative plan) in case of
any natural disasters or any social activity or rapid
technological boost.
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