Strategic Marketing

Planning

Objectives for this Module

Explain Company Wide Strategic Planning and its steps
Describe How Company Develops Its Mission Statements
Explain How Companys Evaluate and Develop Its Business
Portfolio
Explain Marketings Role in Strategic Planning
Describe the marketing management Process and the Brand Plan
Show how marketing organizations are changing

Why Plan?

Why
Plan?

Why Plan?
Encourages systematic thinking
Sharpen companys policies & objectives
Better coordination of companys efforts
Clearer Performance Standards for Control
Anticipate and respond to environmental
Changes

Why Plan?

The best performing companies plan but plan in such a way tha
Does not suppress entrepreneurship

Types of Plan
Annual Plan
Long Range Plan
Strategic Plan

Annual Plan
Current Situation
Company Objectives
Strategy for the Year
Action Programmes
Budget & Controls

Long Range Plan (5 years)

Economic and Market Environment that will impact the company in 5 yea
Long Term Objectives and resources required to achieve the objectives
Reviewed and Updated yearly
Focus on Current Business

Strategic Plan
Involves adopting the firm to take advantage of opportunities
In a constantly changing market environment
The process of developing and maintaining a strategic fit between
The organizational goals and capabilities and its changing market
opportunities

Strategic
Planning

Starts with the Mission

Corporate Audit:
Information on the Company
Competitors
The Market
General Environment
SWOT
Portfolio of products and Businesses
Support to each of these businesses

The Planning Process

Analysis: Provides the information about the economic and market environ
Where the company operates, identifies the strengths and weaknesses,
Threats and opportunities for the firm in this environment, and provides the
Input to which opportunities the company wants to pursue.

Planning: Thru strategic planning the company decides what to do with

The business portfolio and the business units while market planning provide
The marketing strategies to achieve these objectives

Implementation: Turns the strategic plans into actions that will achieve th
Corporate objectives
Control: Measures and evaluates the results of the plan and activities and
Taking corrective actions to ensure objectives are achieved

The
Strategic
Plan

The Mission: States the purpose of a company. Questions that can be asked:
What business are we in?, What do consumers value?, What makes us specia
Ex. 3M states in its mission not as making office products but as creating
Innovations
Must be specific, realistic, competence based and motivating
Example:IBMs mission when they were 50 B USD to become 100B USD by
The end of the Century
Apples mission: To put computer power in the hands of every person
The companys mission should provide the companys vision for the next
10-20 years ex, Sonys walkman Personal portable sound, Budget Airlines
Flying is fun let everybody fly.

From Mission to Strategic

Objectives
Eisai Co. Ltd. Mission Human Health Care Company ; Giving first
Thought to patients and their relatives and increasing the benefits
Health care provides
Strategic Objectives:
R&D: To discover products that will fulfill unmet medical needs.
Production: To ensure stable supply and high quality products
Marketing: To provide useful information about the efficacy
And safety of Eisai products

Strategic
Audit
Knowledge is is power Francis Bacon 16th Century Philosopher
The leader who does not want to buy information is inconsiderate
And can never win Sun Tzu Ancient Chinese Strategist
External Audit: Will include economic as well as political environment
Where the company operates. Common source of information are
Banks or third party publications like Business Monitor

Internal Audit: Will include the companys financial statements balance

Sheets, profit & loss statements, human resource, production, sales & mark
After sales service.

SWOT Analysis
From the audit the company can now do its SWOT analysis
Opportunities & Threats: Objective is to anticipate major developments
That will impact the firm
Ex. Opportunities: APEC, ASEAN
Threats: ISIS attack in Paris, Generics
Strenghts & Weaknesses: Will not list all the features of a company. Only
The critical factors that will ensure success for the company.
Ex. Strong distribution network and presence in most ASEAN countries
Strong brand in the Philippines but have not gone out of the Philippines

The Business Portfolio

Identifying the companys products or businesses that will drive growt

And therefore will be supported by resources based on SWOT analysis.

Tools: BCG Matrix; stars, problem child, dogs, cash cows based on rela
Market shares and focused on the current and not the future
Mergers & Acquisitions, Divestments in 1980s

Marketings Role In Strategic Planning

Marketing looks at the consumers needs and the companys capability to

Satisfy these needs. The companys mission and objectives are likewise
Focus on satisfying the consumers needs. Thus the strong overlap between
Strategic planning and marketing planning.
Most companys strategic planning deals with marketing variables as market
Shares and market developments.

Key Roles of Marketing in Strategic Planning

First providing the guiding philosophy of serving the customers needs

Second providing inputs to strategic planners by helping to identify
Market opportunities and assessing the firms potential to take advantage
Of them
Finally within each business units or products for that matter marketing
Formulates strategies to achieve the objectives

Marketing and Other Functions

Peter Drucker The aim of the company is to create customers so
Thus marketing takes the lead in a company?
Conflict among departments as caused by marketing
Ex. Excess inventories, high promotional costs, excess discount
Budgets, unforeseen demand etc.
Need to manage like a symphony orchestra

Marketing Strategy
The company has to segment its market and define its target consumers.
After defining and choosing its target consumers, the company formulates
Its marketing mix; product, price, place and promotion to market to its
Target consumers

The company engages in marketing analysis, planning implementation and con

To find the best marketing mix and take action

Target Consumers
From our previous lessons of consumers needs, wants and demands we
Learned the complexity of satisfying the consumers needs.

The company cannot satisfy all of them and thus need to target and segmen
Its market according to where it can best satisfy their needs.

This process involves five steps: demand measurement & forecasting, marke
Segmentation, market targeting, market positioning and competitive position

Target consumers are also influenced by PEST political, economic, social and
Technological factors which should also be taken into account.

Demand Measurement & Forecast

Factors to consider when measuring demand and forecasting:
Geographic trends ie. Rising urbanization
Rising middle income classes
Shifts in distribution ie. Hospitals versus drugstores
Government policy changes ie. National Health Insurance schemes
New Products

Market
Segmentation
The process of dividing a market into groups of buyers with different
Needs, characteristics or behavior, who might require separate products
Or market mixes

Ex. Pharmaceuticals has several market segments: antibiotics, cardiovascul

Neurology, gastroenterology, oncology etc.

Market targeting

Is simply evaluating the most attractive segment to enter and making

Choice to enter based as well on the companys competencies and cap
Ex. SM into retail, condominiums, banking
DMCI into construction, condominiums, power
JG Summit into retail, airlines, condominiums

Brand Positioning
This is the place a brand occupies in the consumers mind.
It gives the brand a clear, distinct, and desirable place in the
Consumers mind relative to competition
The brand has to build on its competitive advantage either
By offering a lower price or higher customer value than
Competition
Ex. BMW the Ultimate Driving Machine
Rolls Royce The Wealthy Arrived Individual
Ford Ranger The most saleable pick up
Subaru More traction on the road

Marketing Strategies for Competitive Advantage

To be successful a company must do a better job in satisfy

Its customers better than competition

Now its no longer a one time buyer-seller relationships bu

Establishing long term customer relationship and data bas
Marketing. Ie. Suki Card, Petron Value card,
Facebook data its value

Marketing Mix
Defined as the set of controllable tactical marketing tools that the company
Blends to get its desired response from its target market
These are 4Ps, product, price, place, promotions

Product the totality of goods and services the company offers the target ma
Price is what the customer pays to get the product
Place Company activities that make the product available to consumers

Promotions activities that communicate the merits of the product and persu
the customers to buy it

Brand Plan

Executive Summary: Summary of the main goals and recommendati

In the plan to achieve the goals
Table of Contents
Brand Audit
SWOT
Objectives & Issues
Strategy
Action Programmes
Budget & Control