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Strategic Marketing Plan

• A Strategic Marketing Plan is a blue print that elaborates

a systematic, inter connected, logical step by step processes

for achieving marketing goals.

• It analyses the internal and external environment,

markets, competitors, specifies the necessary resource

allocations, schedules, budgets, tasks, and embeds the

controls and other actions required in connection with

attaining marketing goals in an efficient and effective

manner.

• It specifies what should be done today to achieve

marketing goals ahead and it is the marketer’s road map

for desired destination.

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Organizational Levels

The Corporate Level is the

highest level in any organization.

The Functional Level includes all the

various functional areas within a business unit.

The Business Level consists of units within the

overall organization that are generally managed

as self-contained businesses.

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Organizational Strategic Planning

Lower-level plans are developed

to execute higher-level plans.

Higher organizational level strategic

plans provide direction for strategic

plans at lower levels.

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Types of Strategic Plans

Organizational Level Type of Strategic Plan Key Strategic Decisions

Corporate Corporate strategic Corporate vision

plan Objectives & resource

allocation

Growth strategies

Business Business strategic Market scope

plan Competitive

advantage

Marketing Marketing strategic Target market

plan Marketing mix

Product marketing Specific target market

plan Specific marketing

mix

Execution action plan

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The Strategic Planning Process

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The Role of Marketing

Marketers orient everyone in the organization

toward markets and customers.

Marketers analyze the current situation,

identify trends in the marketing environment,

and assess the potential impact of these trends.

Marketers development corporate, business,

and marketing strategic plans.

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The Role of Marketing

•Networks:Comprise strategicalliances amongsuppliers, distributors,and the marketingfirm.

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Corporate Strategy Decisions

•Corporate Vision

•Corporate Objectives & Resource Allocation

•Corporate Growth Strategies

•Business-unit Composition

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Corporate Vision

• Corporate Vision:

The basic values of an organization.

The vision specifieswhat the organizationstand for, where it plansto go, and how it plansto get there.

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What Comprises Corporate Vision?

• Markets

• Products and services

• Geographic domain

• Core competencies

• Organizational objectives

• Organizational philosophy

• Organizational self-concept

• Desired public image

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Core Purpose: A Company’s Reason for Being

• Hewlett-Packard: To make technicalcontributions for the advancement and welfare ofhumanity.

• Sony: To experience the joy of advancing andapplying technology for the benefit of the public.

• Wal-Mart: To give ordinary folks the chance tobuy the same things as rich people.

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Core Purpose

• Core Competency: A bundle of skills that are possessed by

individuals across the organization.

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Questions Leading to an Effective Corporate Vision

1. Which customers will you be serving in the future?

2. Through which channels will you reach customers in the future?

3. Who will be your competitors in the future?

4. Where will your margins come from in the future?

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Questions Leading to an Effective Corporate Vision

5. In what end-product markets will you participate in the future?

6. What will be the basis for your competitive advantage in the future?

7. What skills or capabilities will make you unique in the future?

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Corporate Objectives and Resource Allocation

• Corporate objectives specify the

achievement of desired levels of

performance during particular time

periods.

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Corporate Objectives and Resource Allocation

Corporate objectives and

resource allocation affect

marketers in 2 basic ways:

1) In setting the

objectives for different

organizational levels.

2) Providing guidance

for the development

and Implementation of

marketing strategies.

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Corporate Growth Strategies

Market

Penetration

Product

ExpansionDiversification

Market

Expansion

Products

Same New

Mark

ets

Ne

wS

am

e

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Business-Unit Composition

• Strategic Business Unit (SBU):

Focuses on “a single product orbrand, a line of products, or mixof related products that meets acommon market need or a groupor related needs, and the unit’smanagement is responsible forall (or most) of the basic businessfunctions”

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Business Strategy Decisions

•The basic objective of a business

strategy is to determine how the

business unit will compete

successfully.

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Business Strategy Decisions

• Dimensions of Strategy:

Market scope.

How broadly the business views its target market.

Competitive advantage.

• Competitive Advantage:

The way a business tries to get consumers to purchase its products over those offered by competitors.

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Marketing Strategy Decisions

A Marketing

Strategy Addresses:

• Selection of a target market.

• Development of a

marketing mix.Functional strategies

are at the

business-unit level.

Operating strategies

are at the product level.

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Business & Product Marketing Strategies

Target market Segmented or mass approach Specific definition of target

market

Product Number of different products Specific features of each

product

Price General competitive price level Specific price

Distribution General distribution policy Specific distributions

Marketing

communicationsGeneral emphasis on marketing Specific marketing

communications tools communications program

Decision Area Business Marketing Strategy Product Marketing Strateg

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International Marketing Strategies

•Entry Strategy:The approach used to market products in an international market.

• The Basic Options:

Exporting

Joint Ventures

Direct Investment

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International Marketing Strategies

Customized Marketing Strategy:

A different marketing mix for each

target market country.

Standardized Marketing Strategy:

The same product, price, distribution, & promotion

programs in all international markets.

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Business Function Orientations

Function Basic Orientation

Marketing To attract and retain customers

Production To produce products at lowest cost

Finance To keep within budgets

Accounting To standardize financial reports

Purchasing To purchase products at lowest cost

R&D To develop newest technologies

Engineering To design product specifications