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University of Technical Education

University of Sunderland

Chapter 2

The Marketing Process:


Strategy & Planning

HO CHI MINH CITY 2009

Outline
1. Strategy

2. Developing a marketing plan

3. Marketing Audit
4. Strategy formulation
5. Market segmentation

1. Strategy
Definition 1
Strategy is a course of action to achieve a
specific objective
Definition 2
A strategy is a fundamental pattern of
present and planned objectives, resource
deployments, and interactions of an
organisation with markets, competitors, and
other environmental factors.
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Strategies develop at several levels


Corporate level (development of an
organisations business activities)
Marketing strategy (the organisations
activities in relation to its markets)
Deliberate strategies (planning)
Emergent strategies
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Three Levels of Strategy


Corporate Strategy

Business Strategy

Functional Strategy

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Three Levels of Strategy


Corporate: Corporate level strategy
fundamentally is concerned with the selection of
business in which the company should compete
and with the development and coordination of that
portfolio of businesses.

Business: A strategic business unit may be a


division, product line, or other profit center that
can be planned independently from the other
business units of the firm.
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Three Levels of Strategy


Functional: The functional level of the
organisation is the level of the operating
divisions and departments.
Ex: Marketing, Finance, Accounting, Operations, IT,
Human Resources

2. Develop a marketing plan


Structure of a marketing plan
Analyses of the organisation and its
market
A statement of objective
The development of a strategy
Methods for plan implementation
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The Planning cycle


Establish
objectives

Review
progress

Implement
the strategy

Plan the
strategy

Decide tactics

Mission Statement
Mission statement
- A statement of the
organizations purpose what
it wants to accomplish in the
larger environment.
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Development of the organisations mission statement


Statement of objectives
Situational analysis
Strategy development
Specific plans
Implementation
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Definition of objective
Corporate objectives define specific goals
for the organisation as a whole and may
be expressed in terms of profitability,
returns on investment, growth of asset
base, earnings per share and so on.

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3. Marketing Audit
Definition
A marketing audit is simply a systematic
analysis
and
evaluation
of
the
organisastions marketing position and
performance.
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Environmental Scanning
PEST + C + C

Political environment
Economic environment
Social environment
Technological environment
In addition to
Consumer behaviour
Competitive behaviour

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Activity 3 page
47
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4. Strategy formulation
SWOT analysis

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External environment Opportunity


and threat
Internal environment Strength
and weakness

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Strengths
patents
strong brand names
good reputation among customers
cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
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Weaknesses
lack of patent protection
a weak brand name
poor reputation among customers
high cost structure
lack of access to the best natural resources
lack of access to key distribution channels
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Opportunities
an unfulfilled customer need
arrival of new technologies
loosening of regulations
removal of international trade barriers

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Threats
shifts in consumer tastes away from the firms
products
emergence of substitute products
new regulations
increased trade barriers

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Growth strategies
Ansoffs product / market matrix
Product
Present

Present

Market
New

New

Market penetration; (for


growth) or consolidation
(to maintain position) or
withdrawal

Product
development

Market
development

Diversification

Product-Market areas:

Related
(vertical or horizontal
integration)

Unrelated
(conglomerate
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diversification)

5. Market segmentation
THE MARKET
Segment 2
Segment 1

Segment 2
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Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Geographic
Nations,states,
states,
Nations,
regionsororcities
cities
regions
Psychographic
Psychographic
Socialclass,
class,
Social
lifestyle,or
or
lifestyle,
personality
personality

Demographic
Demographic
Age,gender,
gender,family
family
Age,
sizeand
andlife
lifecycle,
cycle,oror
size
income
income

Behavioural
Behavioural
Occasions,benefits,
benefits,
Occasions,
usesor
orresponses
responses
uses

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Questions
1. List the stages in strategic planning
2. Why should an organisation carry out an
environmental analysis?
3. What do the letters in SWOT analysis
stand for?
4. Differentiate between market and
product development?
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