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Marketing Strategy and Planning

Lecture Objectives

 Planning - role/questions/processes?
 Strategy - components and
measurement
Marketing planning

The process by which businesses analyse the


environment and their capabilities, decide upon
courses of marketing action, and implement those
decisions

Is part of strategic planning


Why plan?

A typical planning framework

• Where are we now?


• How did we get there?
• Where are we heading?
• Where would we like to be?
• How did we get there?
• Are we on course?
The marketing planning process
Business mission
Re-definition
Marketing audit Marketing
planning at
SWOT analysis the business
level

Marketing objectives

Core strategy

Marketing
Marketing mix decisions planning at
the product
Organization and implementation level

Control

2
Planning at the business level
Business mission
Re-definition
Marketing audit

SWOT analysis

Marketing objectives

Strategic Strategic
thrust objectives

3
Planning at the product level

Core strategy

Target Competitive Competitor


markets advantage targets

Marketing mix decisions

Organization and implementation

Control
4
The Ashridge Mission Model

Purpose
(Why the company exists)

Strategy Company values


(The commercial rationale) (What senior management believes in)

Standards and behaviours


(The policies and behaviour patterns that guide
How the company operates

5
External marketing audit checklist
The market
Market size, growth rates, trends and developments The market
Customers, who are they, their choice criteria, how, when,
where do they buy, how do they rate us vs. the competition
Microenvironment
on Microenvironment
product, promotion, price, distribution
Economic: inflation, interest rates, unemployment
Market segmentation: how do customers group, what benefits
Social/cultural: age distribution, lifestyle changes, values,
Competition
do each group seek
attitudes Who are the major competitors
Distribution: power changes, channel attractiveness, growth
Technological: new productWhatandareprocess Competition
technologies,
their objectives materials
and strategies
potentials, physical distribution methods, decision makers and
Political/legal: monopoly What
control,
arenew laws,
their regulations
strengths and weaknesses
influencers
Ecological: conservation,Market
pollution, energy
shares and size of competitors
Profitability analysis
Entry barriers
6
Internal marketing audit checklist
Operating Marketing
Results Strategic Mix
Operating Effectiveness
(by product, customer, Issues Analysis Marketing
Results
geographic region •Marketing objectives •Product
(by product, Mix
•Price
•Sales •Market segmentation Effectiveness
customer,
•Market share •Competitive advantage •Promotion
geographic
•Profit margins •Core Strategic
competences •Distribution
region
•Costs •Positioning
Issues
•Portfolio
Analysis
analysis
Marketing Structures Marketing
•Marketing organisation Systems
•Marketing training •Marketing information system
•Intra- and interdepartmental
Marketing •Marketing Marketing
planning system
communication
Structures •Marketing Systems
control system

7
SWOT analysis

Source

Internal Strengths Weaknesses


(controllable) Conversion
Strategies
Matching
Strategies
Conversion
External Strategies
(uncontrollable) Opportunities Threats
Jaguar
An important
part of
marketing
planning is
the target
marketing.
Here Jaguar
target the
wealthy
young and
young at
heart

9
Strategic thrust: the generic options

Market
Penetration Market
Existing or Development
Expansion

Products
Product Enter New
New/Related Development Markets

Existing New/Related

Markets
10
Testing core strategy
Clearly defines
target customers
and their needs

Creates a
Internally competitive
consistent advantage
Core
strategy
Derived to
achieve product Incurs
market acceptable
objectives risk
Resource and
managerially
supportable

11
Does the process of marketing planning answer
the key questions?

Key questions Marketing planning stage


where/when addressed
Where are we now and how Business mission
did we get there? Marketing audit
SWOT analysis
Where are we heading? Marketing audit
SWOT analysis
Where would we like to be? Marketing objectives
How do we get there? Core strategy
Marketing mix decisions
Organisation
Implementation
Are we on course? Control
The rewards

• Consistency
• Encourages monitoring of change
• A adaptable/flexible organisation
• Stimulates achievement
• Resource allocation
• Competitive advantage
Problems

• Political
• Opportunity cost
• Reward systems /short termism
• Lack/quality of Information
• Culture
• Personalities
• Lack of knowledge of skills

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