Introduction to Marketing

Strategy & Planning

Dr Al Marshall
ACU
School of Business

LECTURE AGENDA

Defining Strategy & Planning

Benefits of Strategic Orientation & Planning
Link With Wider Strategy & Planning
Characteristics of the Strategic Market Planning Process
Outcome of the Process
Marketing Plan Definition
Levels of a Marketing Plan
Components of the Marketing Plan
Checklist for Plan Fundamentals
Broad Bases for Strategy

Defining Strategy & Planning

Setting a path for the organisation in the future to
achieve its corporate objectives
Using marketing to achieve these objectives
Combinations of marketing elements or building
blocks (e.g. 4Ps) to achieve these
Engaging in planning processes to identify the
optimal strategies and how these will be implemented
Monitoring the implemented strategies in real time
and real space and adjusting to change

Benefits of Strategic Orientation

& Planning (1)
Marketing management can become proactive rather than reactive in the
marketplace
Enables marketing activities and processes to be more fully integrated
under a set agreed direction
Strategy can be communicated within the organisation and to key
stakeholders
Provides a benchmark for implementation of strategy to be checked
against and adjustments made as plan is implemented
Organisation has to look externally as well as internally
Draw on knowledge about the marketplace (both formal and informal)

Benefits of Strategic Orientation

& Planning (2)
See where the organisation is presently going and could be
going
Forces organisation to take a longer term view and see
different ways of how to get there
Makes visible resource allocation decisions
More fully understand assets, competencies and sources of
competitive advantage
http://www.youtube.com/watch?v=Gu2ImfIjN7o

The Link With Wider Strategy &

Planning
Strategic market planning takes its lead from
corporate strategy and plans
Other business disciplines/functional units also
engage in similar processes
Must reflect corporate mission, objectives, strategy,
plans (a subset of these)
All about the contribution that marketing as a
function can make
Marketing is subject (either informally or formally) to
KPI measures within the organisation

Characteristics of the Strategic

Market Planning Process
Requires formalised process to consider present and
possible future strategy
Process can be extended and involve group interaction
among the marketing team
Familiarity with corporate mission, objectives, strategy,
plans necessary
Can be undertaken for a product, product group, a market
segment or whole organisation
The process is point in time (with subsequent set or rolling
reviews)
Classically a five year time period (but variable)

Outcome of the Process

A formal marketing plan agreed to by upper management
which sets out marketing strategy for set future time
periods
A commitment to allocation of human and financial
resources to marketing activities
The implementation of the plan in the marketplace, with
tactical adjustments made as necessary to cope with
environmental change
Certainty about how marketing will be carried out, and
the possible value it can deliver to customers and the
organisation

Marketing Plan Definition

A marketing plan is the central instrument for
directing and coordinating the marketing
effort. It operates at a strategic and tactical
level (Kotler & Keller)
In essence it is a tool to build and defend
competitive advantage
http://www.youtube.com/watch?v=bl5cyZlay4k

Levels of a Marketing Plan

Strategic:
Target marketing decisions, value
proposition, competitive advantage, analysis
of marketing opportunities
Tactical:
Product features, promotion, merchandising,
pricing, sales channels, service
http://www.youtube.com/watch?v=S-UNhrO3jis

Components of the Marketing

Plan (1)
The Situation Analysis processes for analysing
organisations current situation and environment (using
techniques like SWOT, PEST, Porters 5 Environmental
Forces Model)
Review of Organisational Mission and Objectives statement of goals, aspirations and parameters, and
corporate road map for the future
Segmentation, Targeting & Positioning Analysis
processes of categorising markets into segments,
evaluating segments, picking target markets and
positioning products to them

Components of the Marketing

Plan (2)
Marketing Mix Review processes to evaluate
product, pricing, marketing channel and
communications elements, as well as people,
physical infrastructure etc (using techniques like
Kotlers 3 Levels of Product, Gap Analysis)
Future Strategic Alternatives Consideration
processes to consider viable alternative marketing
strategy directions and to select an optimal choice
(using techniques like BCG Matrix, GE Matrix,
Ansoffs Growth Strategies Matrix)

Components of the Marketing

Plan (3)
Implementation & Control Consideration processes
to consider Action Plans (how plan will be
implemented), Sales Forecasts (sales expected),
Budgets (finances allocated) & Controls (evaluation
checks and feedback loops if the plan is implemented)
Agreement by marketing management and signoff by
upper management who check fit with corporate
mission, objectives, strategy, plans
http://www.youtube.com/watch?v=-ul65NjOMzo

Checklist for Plan Fundamentals

Is the plan simple?

Is the plan specific?
Is the plan realistic?
Is the plan complete?

ALSO Is it consistent with corporate strategy

and plans? (and with other functional unit
strategy and plans)

Broad Bases for Strategy

According to Porter (1980):

- Overall cost leadership involves the organisation winning market share

by appealing to cost-conscious or price-sensitive customers. Achieved by having the
lowest prices in the target market segment, or at least the lowest price to value ratio.
Example - Walmart

- Differentiation involves the organisation differentiating its products in some

way in order to compete successfully. Appropriate where the market is not pricesensitive, is competitive or saturated, customers have very specific needs (possibly
under-served). Example - Apple

- Focus involves the organisation choosing to either compete in the mass market
with a broad scope, or in a defined, focused market segment with a narrow scope. In
either case, the basis of competition will still be either cost leadership or differentiation