Developing Marketing

Strategies and Plans.

Session Aims.

At the end of this session you will be able to:

1. Identify how corporate and divisional strategic planning is carried

out

2. Discuss how business unit strategic planning is carried out

3. Explain what is involved in developing a marketing plan

What is a Marketing Plan?

The marketing plan is the central instrument

for directing and coordinating the marketing
effort.
 Strategic Planning Processes.

Question: Who will be involved in the A) Planning and B) Controlling stages?

Questions to Ask When Defining
a Mission.
1. What is our business?
2. Who is the customer?
3. What is of value to the customer?
4. What will our business be?
5. What should our business be?
Mission Statements

“To create the safest and most exciting car experience for
modern families”

“We help people trade practically anything on earth. We will

continue to enhance the online trading experience of all –
collectors, dealers, small businesses, unique item seekers,
bargain hunters, opportunity sellers, and browsers”

“to produce fashionable products in an ethical way and

demonstrate a responsible attitude towards people and the
environment.”
The Strategic Planning Gap.

Intensive is the
lowest risk and
Diversification is
the highest risk.

Source: Kotler, P. et al., 2019. Marketing Management. 4th European ed. Harlow Essex: Pearson.
Intensive Growth

ANSOFF’S Product-Market Expansion Grid gives

4 STRATEGIC OPTIONS:

• MARKET PENETRATION - Increase sales and share of existing products for

existing markets.

• PRODUCT DEVELOPMENT - Development of new products for existing

markets.

• MARKET DEVELOPMENT - Development of new markets for existing

products.

• DIVERSIFICATION (Although part of Ansoff’s this is not an intensive growth

strategy)– Development of new products for new markets. Could require an
acquisition or a joint venture to execute this strategy.
Ansoff’s Product-Market Expansion Grid.
1-3 are intensive growth strategies.
Current products New products
Increasing Risk

1 2

Current

Increasing Risk
markets

3 4

New
markets
Integrative Growth.

Integration within an industry can be:

Retailer
A) Vertical along the production process buys
• Backward (i.e. Tesco buying Booker wholesalers). wholesaler

• Forward (i.e. Amazon purchasing Whole Foods).

Online
B) Horizontal, at the same stage of the production process buys
client
• Horizontal (i.e. Carphone Wharehouse and Dixons became facing
Dixons Carphone).

Two retailers merge.

Diversification Growth

• Concentric- Adds new products/ services that have some connection

technologically or marketing-wise to existing offerings. These will have some
appeal to a new target market segment.

• Horizontal- Offers new unrelated products/ services to the same target market
segment/s in different markets

• Conglomerate- Offers new products/ services that are very different from
current ones, to a totally new market.

Activity: In your groups go to Kortex for PPM and read p83-84. Identify when
the growth strategy (Concentric, Horizontal or Conglomerate) you have been
assigned is most useful.
Can you think of any companies that have used this strategy?
Porter’s Three Generic Strategies.

Competitive Advantage

Lower Cost Differentiation

Broad
Target 1. Cost 2.
Leadership Differentiation
Competitive
Scope

Narrow 3b.
Target
3a. Cost Focus Differentiation
Focus
Contents of a Marketing Plan.

• Executive summary and table of contents

• Situation analysis
• Marketing strategy
• Financial projections
• Implementation controls
Activity
Summary

In this slide deck we have covered:

• How corporate and divisional strategic planning is carried out.

• What is involved in developing a marketing plan.

• Porter’s Generic strategies companies employ to gain competitive advantage.

• Ansoff’s Product Market Expansion Grid.