CHAPTER 2: STRATEGIC PLANNING AND MARKETING

PROCESS
2.1 MANAGING MARKETING ACTIVITIES

The four functions of management include planning,

implementation, organization of marketing
department and marketing control. These functions
help in a more organized marketing efforts.
2.2 CONDUCT SITUATION ANALYSIS
SWOT ANALYSIS

A situation analysis helps the firm to understand the current and

potential
 A situation analysis helps the firm to understand the current and potential
environment that the product is marketed by:
o Identifying internal strengths and weaknesses
o Examining external opportunities and threats
 All areas in the internal environment that are within the firm’s control.
 All areas in the internal environment that are within the firm’s control. These areas
are called:
o STRENGTHS
 Positive factors within a company that can help it to succeed.
o WEAKNESSES
 Negative factors within a company that hinder it from obtaining
 Negative factors within a company that hinder it from obtaining
competitive edge.
 All areas outside in the external environment and are beyond
the firm’s control. These areas are called:
 All areas outside in the external environment and are beyond the firm’s
 -OPPORTUNITIES
 Favorable situations with high possibilities of success, thus the firm
 Favorable situations with high possibilities of success, thus the firm
should capitalize on it for greater potential.
- THREATS
o Unfavorable situations that the firm should be aware of as it could
 Unfavorable situations that the firm should be aware of as it
couldlead to higher risks or losses.
TOWS MATRIX
How do we use SO, ST, WO, WT?
SO – Use the firm’s strengths to take advantage of opportunities
ST – Use strengths to reduce threatening conditions
WO – Overcome weaknesses that hinder a firm from exploiting
opportunities
WT – Reduce the impact of threats by overcoming weaknesses

2.3 MARKETING PLANNING

Marketing Planning is a process that involves
deciding on marketing strategies that business will
help the company attain its overall strategic
objectives.

A marketing plan is done at the business unit level, a product level or a

brand level. A detailed marketing plan is needed for each business,
product
A marketing plan is done at the business unit level, a product level or a

brand level. A detailed marketing plan is needed for each business, product or brand.

Marketing planning involves eight stages or contents, which includes:

1. Executive summary
o This section summarizes and overviews the main goals,
o recommendations, and points for senior managers who will read and
This section summarizes and overviews the main goals,

recommendations, and points for senior managers who will read andapprove

the marketing plan.

2. Current marketing situation

o This section describes the target market and company’s position in it.

3. Threats and opportunities [SWOT]

o This section assesses major threats and opportunities that the product
o This section assesses major threats and opportunities that the product might face to
anticipate negative or positive development.
4. Objectives and issues
o This section states the marketing objectives that the company would
o like to attain during the plan’s term and discusses key issues that will
This section states the marketing objectives that the company would like to attain
during the plan’s term and discusses key issues that will affect their attainment.
5. Marketing strategy
o This section outlines the broad marketing logic by which the business
This section outlines the broad marketing logic by which the business unit hopes to
achieve its marketing objectives.
6. Action programs
 o This section spells out ways to turn marketing strategies into specific
o This section spells out ways to turn marketing strategies into specific action
programs.
7. Budgets
o This section details a supporting marketing budget that is essentially a
o This section details a supporting marketing budget that is essentially a projected
profit-and-loss statement.
8. Controls
o This section outlines the control that will be used to monitor progress
o and allow higher management to review implementation results and

o This section outlines the control that will be used to monitor progress and

allow higher management to review implementation results andspot products

that are not meeting their goals.

2.4 MARKETING IMPLEMENTATION
 The process of translating broad strategy
statements into specific actions and tactics so that the objectives set earlier
can be achieved.

 The implementation is the marketing planning put into action. It is very crucial
and not simple.

A good marketing implementation can be achieved by having a

good
 marketing department organization to carry out and regulate the
 marketing implementation. This marketing department
organization
 A good marketing implementation can be achieved by having a good marketing
department organization to carry out and regulate the marketing implementation. This
marketing department organization includes:
o Functional organization
o Product or brand management organization
o Market or customer management organization
o Geographic organization
o Combined organization

2.5 MARKETING CONTROL

The process of measuring and evaluating the results of marketing strategies
and plans, and taking corrective action to ensure that marketing objectives are
achieved.

The four steps involved are:

 Set specific marketing goal

 Measure the performance in the marketplace

 Evaluates the causes of any differences between expected and actual

 Evaluates the causes of any differences between expected and actual performance
 Take corrective action to close the gaps between the goals and

 Take corrective action to close the gaps between the goals and performance –

maybe require changing the action when necessary

Critically, marketers need to monitor the results of the investments on
Critically, marketers need to monitor the results of the investments on the marketing
activities that they are liable for.

The measure include level of awareness, mind

share, and market share.
Eventually, the exchange process requires that marketers gain
Eventually, the exchange process requires that marketers gain
something in return that are of value which is the profit.

STRATEGIC CONTROL
 It involves looking at whether the company’s basic strategies are well

 It involves looking at whether the company’s basic strategies are well matched to its

opportunities.
 This is because marketing strategies can quickly become outdated and a

 This is because marketing strategies can quickly become outdated and a firm must

reassess its overall approach.

 At the same time, marketing strategies must aligned with the company’s
 culture (the system of value and beliefs shared by people in the
 At the same time, marketing strategies must aligned with the company’s culture (the
system of value and beliefs shared by people in the company).

Marketing Audit
 A major tool for strategic control is marketing audit.
o Marketing audit is a comprehensive, systematic, independent, and

o Marketing audit is a comprehensive, systematic, independent, and

periodic examination that determines problem areas.
o It also recommends a plan of action to counter the problems.

OPERATING CONTROL
 It involves checking ongoing performance against the annual plan and
 It involves checking ongoing performance against the annual plan and take corrective
action when necessary.
 The purpose of operating control is to ensure that the company achieves

 The purpose of operating control is to ensure that the company achieves the sales,

profits, and other goals set out in its annual plan.

To implement a marketing plan successfully, the

firm must ensure that the marketing strategies fit
in with its company culture (value and beliefs
To implement a marketing plan successfully, the
firm must ensure that the marketing strategies fit
in with its company culture (value and beliefs
shared by people within the company).