CHAPTER 3 MARKET OPPORTUNITY ANALYSIS AND CONSUMER ANALYSIS

LESSON 1: STRATEGIC MARKETING VS. TACTICAL MARKETING

 Strategic Planning is a broad process that can address the entire business, or a portion of the business such as
marketing.
 Marketing planning is written based from strategic plans.

STRATEGIC PLANNING
 Strategy is a plan fro reaching a specific goal.
 In business, a strategy is a broad goal, such as increasing sales or market share or creating a particular image
for the business.
 When creating marketing plans start with broad strategies and support the with specific tactics.
 Planning is the process of predicting future events and conditions and of determining the best way to attain the goals
and objectives of the organization.
 Strategic Planning is a management process of creating and maintaining fit between the objectives and resources of
the organization and the changing market opportunities.

Strategic and Marketing versus Tactical Marketing

 This become the basis of long Term plan used in strategic marketing
 To accomplish the long term goal, marketers also develop short term action plan and do tactical marketing
 Strategic marketing considers the long-term goals of your company such as expanding your business, exploring
new demographics, or creating a new brand. Therefore, it needs the insight of your financial department who can
analyze if you have adequate funds to realize your goals.
 Tactical marketing often involves generating leads, building websites, placing ads, and following up. It includes
advertising, sales promotions, and other activities that directly support your strategic marketing plan. And because
your strategic marketing plan included establishing a budget, tactical planning preparation should take into account
its financial limitations in carrying out these activities.

STRATEGIC PLANNING PROCESS

1. Defining the Corporate Mission
 According to Peter Drucker, it is time to ask some fundamental questions such as:
a. What is the business?
b. Who is the customer?
c. What is of the value to the customer?
d. What will the business be?
e. What should the business be?
 Good mission include:
1. Industry scope
2. Products and application scope
3. Competence scope
4. Market- segment scope
5. Vertical Scope
6. Geographical Scope

2. Environmental scanning
 Is the collection and interpretation of information about forces, events, and relationships that may affect the
future of an organization.
 It allows the company to constantly look for threats and opportunities before they are fully apparent.
3. Goal Formation
 In order to be effective, goals must be attainable, consistent, comprehensive and intangible.
4. Strategy Formulation
 Strategy describes the game plan for achieving those goals.
 Michael Porter provided three generic types for strategic thinking:
Overall cost leadership
Differentiation
Focus
5. Implementation
 The process is the putting of the marketing strategies and plans into action
 6. Feedbacks and Control
 The internal and external environments of an organization are constantly changing.
 Such changes can make the organization’s strategies obsolete. It is, thus, essential to periodically review,
evaluate and control the strategies that the organization has been implementing.
 Timely evaluation and control would help managers take corrective measures to keep everything on track.

MARKETING PLANNING
 Planning is forecasting future events and identifying strategies to achieve organizational objectives in the future.
 Marketing Planning is the foundation for all marketing strategies decisions
 Marketing Plan set out how to put marketing strategy into practice.

Marketing Process:
1. Analysis of the Opportunities in the Market

2. Selection of the Target Market

3. Development of Marketing Mix

The marketing mix is composed of the following four P’s.
01- Product: means any offering (goods or services) to the market by the company.
02- Price: means the money paid by the customers to obtain the product.
03- Place: means the efforts which ensure the availability of the product in the market to customers.
04- Promotion: means all the efforts by the company that ensure the sale of products to customers through better
provision of information about the advantages of the product.

 4P’s of marketing mix are from the seller perspective. In certain cases the 4C’s are replaced by the 4P’s which
are
 Product means Customer Solution
 Price means Customer Cost
 Place means Convenience
 Promotion means Communication

4. Marketing Control
Which the performance results of the marketing plans and strategies are evaluated and necessary steps are taken to
ensure the accomplishment of overall marketing objectives of the company.