MKT1003A/1705A

The Marketing Process

What is Strategic Planning?
 The process of developing and maintaining a
strategic fit between the organization’s goals &
capabilities in the light of changing marketing
opportunities
 It relies on the presence of:
 Clear Company Mission
 Clear Objectives
 Sound Business Portfolio
 Coordinated Functional Strategies
 The Strategy Hierarchy
Corporate Strategy
Corporate • Mission and vision
Level • Objectives
• Business portfolio strategy
• Resource development
• Corporate values

Strategic SBU 2 Strategy

SBU 1 • Business definition SBU 3
Business
Strategy • Objectives Strategy
Unit Level
• Product market portfolio
• Competitive strategy
• Resource allocation and management
Functional Level of SBU

Marketing
Strategy R&D Strategy Production Finance and
Human
Marketing Technology and operation administration
resources
Objectives Product strategy strategy
strategy
Product/markets development
strategies
(Kotler et al, 2006, Fig 2.1, p. 42)
The Strategic Role of Marketers
Gather information, feedback, and insights from
•Customers

•The environment
•Competitors

Making strategic decisions is critical to firm success.

Left: ©Renan Teuman/Shutterstock; Middle: ©Rubens Alarcon/Alamy Stock Photo; Right: ©emka74/Shutterstock
The Marketing Process
Step 1: Define business
mission & objectives

Step 2: Conduct a situation

PLANNING PHASE analysis

Step 3: Identify and evaluate opportunities

IMPLEMENTATIO Step 4: Implement marketing mix

N
PHASE

Step 5: Measure results, evaluate

CONTROL performance using marketing metrics,
PHASE take corrective action
Establishing Marketing Strategy
Objectives
Marketing strategy is the set of marketing actions taken
to accomplish marketing objectives.
Quality marketing strategy objectives are:
•Specific

•Measurable

•Realistic
Some Common Marketing Objectives
 Sales
 Market share
 Profits
 Reputation of quality
 Brand awareness
 Brand loyalty
 Word of mouth
 Customer lifetime value
 etc…
The Marketing Process
Step 1: Define business
mission & objectives

Step 2: Conduct a situation

PLANNING PHASE analysis

Step 3: Identify and evaluate opportunities

IMPLEMENTATIO Step 4: Implement marketing mix

N
PHASE

Step 5: Measure results, evaluate

CONTROL performance using marketing metrics,
PHASE take corrective action
Marketing Growth Strategies
Most marketing strategies seek to move in one of four
directions: market penetration, product development,
market development, and diversification.
 Assessing Growth Opportunities
Ansoff’s Product-Market Expansion Grid
A portfolio-planning tool for identifying company growth opportunities through
market penetration, market development, product development, or diversification.

10
Market Penetration
Market penetration strategies emphasize increased sales
of existing goods and services to existing customers.
For these strategies to succeed, firms often must increase
advertising expenses, develop new distribution
frameworks, or enhance their social media offerings.

Vending machine by Kalms: increase distribution

Product Development
Product development strategies involve creating new
goods and services for existing markets.
A new product can also be an improved product or one
with a new feature or innovation.

Coming up with new flavours Make dried fruits as fruits are seasonal + creation o
Market Development
Market development strategies focus on selling existing
goods and services to new customers.
Targeted new customers could be of a different gender,
age group, or country.
•Walmart operates in 28 countries.

http://corporate.walmart.com/our-story/our-locations
Diversification
Diversification strategies seek to attract new customers
by offering new products that are unrelated to the existing
products produced by the organization.
•Disney has moved from animated movies and theme parks
to
• Owning television channels (ABC, ESPN)
• Owning independent production companies (Lucasfilm)
• Selling vacation properties, books, apparel, and international
consumer products

Xiaomi redefined business to

smart device company instead
of focusing on smartphones
 Discussion

 What are some important factors to consider when

choosing a strategy?

 Organization’s core values and culture: shared

attitudes and norms
 Mission: why do we do what we do?
 Our business: who are we? What do we do?
 Competencies: what do we do best?
 Objectives/goals: market share? max profit?
quality? social responsibility? etc…
Summary