MKT601 - Contemporary Marketing

Topic 2 - Strategic Planning in

Contemporary Marketing
“Failure is the opportunity to begin again, more intelligently”.
-Henry Ford
American industrialist
Marketing Planning: The Basis for Strategy and
Tactics

Planning- Process of anticipating future events and

conditions and of determining the best way to achieve organizational
objectives

Continuous process that includes:

 Identifying objectives
 Determining the actions through which a firm can attain those
objectives
 Creates a blueprint for everyone in the organization to
follow for achieving organizational objectives.

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 Marketing Planning: The Basis for
Strategy and Tactics

Marketing planning - Implementing planning activities devoted to

achieving marketing objectives

Many planning activities take place over the Internet with virtual
conferences

• An important trend in marketing planning centers on relationship

marketing

• A firm’s effort to develop long-term, cost-effective links with individual

customers and suppliers for mutual benefit

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 Strategic Planning Versus Tactical Planning

Strategic Planning
Process of determining an organization’s primary objectives
and adopting courses of action that will achieve these objectives
Provides long-term direction for its decision makers

Tactical Planning
Planning that guides the implementation of activities specified in the
strategic plan.
Addresses shorter-term actions
 Steps in the Marketing Planning Process

1. Defining the organization’s mission and objectives

Mission - Essential purpose that differentiates one company from another
Sephora: “The beauty authority”
IBM: “Welcome to the decade of smart”
Objectives - Guide the development of marketing objectives and plans

For example:
• Generate a 15 percent profit over the
next 24 months
• Add 25 new outlets within the
next year
 Steps in the Marketing Planning Process
2. Assessing Organizational Resources and Evaluating
Environmental Risks and Opportunities

Resources include:
Production
Marketing
Finance
Technology
Employees
Strengths help planners:
Set objectives
Develop plans
Take advantage of marketing opportunities
 Steps in the Marketing Planning Process

3.Formulating, Implementing, and Monitoring a Marketing Strategy

Marketing strategy - Selecting and satisfying target consumers through

the marketing mix elements

The final steps of the planning process:

• Marketers put the marketing strategy into action
• Marketers monitor performance to ensure that objectives are
achieved
 Successful Strategies: Tools and Techniques

Porter’s Five Forces model

 The potential of new entrants
 The bargaining power of buyers
 The bargaining power of suppliers
 The threat of substitute products
 Rivalry among competitors

SWOT Analysis :Helps planners compare internal organizational

strengths and weaknesses with external opportunities and threats

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 Successful Strategies: Tools and Techniques

First mover strategy: firm attempts to capture the greatest market

share by being first to enter the market.

Second mover strategy: a firm observes the innovations of first

movers and then attempts to improve on them to gain advantage.

Strategic Window: limited periods when key requirements of a market

and a firm’s particular competencies best fit together.
 The Marketing Environment

Five external dimensions that affect the marketing mix variables:

• Competitive
• Political-legal
• Economic
• Technological
• Social-cultural
 The Marketing Environment

• Businesses increasingly looking to foreign shores for new growth

markets
• Technology continues changing the marketing environment
• Rule of three - In any industry, the three strongest, most efficient
companies dominate 70 and 90 percent of a market
Example: Cereal manufacturers - General Mills, Kellogg’s, and Post
 Marketing Mix Variables

Blending of the four strategy elements-product, distribution, promotion

and pricing-to fit the needs and preferences of a specific target market.
 Methods for Marketing Planning

Business portfolio analysis

An evaluation of a company’s products and divisions, including
strategic business units(SBUs).

SBUs: Key business units within diversified firms

Each strategic business unit (SBU):
Has its own managers, resources, objectives, and competitors
Pursues its own distinct mission and develops its own plans
independently
 The BCG Matrix
• Developed by the Boston Consulting Group
• A market share/market growth matrix that plots market share
against market growth potential
 Reference

Boone, L.E., and Kurtz, D.L.(2016) Contemporary

Marketing. Boston, MA: Cengage.
 Thank You
zsadeghinejad@icms.edu.au

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