Marketing 451: Strategi Marketing Planning

Levels of Strategy
Corporate
Business Unit
Functional
Corporate
Top management makes overall strategy for entire firm
Business Unit
Mangers set direction for products and market opportunities
Functional
Group of specialists (HR, Finance, R&D, Marketing mangers) set strategic direction for their departments
Business unit within an organization that markets a set of related products.

EX: American Express, one business unit would be the consumer credit cards, whereas another business unit would be their travel services, and another would be their corporate memberships

Functional: Also called department, where the action takes plea

Marketing plays a part in each of these three levels

The Strategic Planning Process
Slide Three
The Strategic Planning Process: SItuation Analysis
An in-depth analysis of the organization’s environment
–>Summarizes information about three key environments:
-Internal environment
-Customer environment
-Firm’s external environment
-Competitive trends
-Technological Trends
-Social Trends
-Regulatory Trends
-Economic Trends
Marketing Plan Structure
I. Situation Analysis
II. SWOT Analysis
III. Marketing Goals and Objectives
IV. Marketing Strategy
V. Marketing Implementation
VI. Evaluation and Control
Situation Analysis: Changes in:
Social Forces
Economic Forces
Technological Forces
Competitive Forces
Regulatory Forces
Social Forces
Demographics
Culture
Demographics
Characteristics used to describe a population such as age, gender, ethnicity, incomes and occupation

EX: Blended family, Cohabitation, Single Parents, Diversity (Slide 12, 13)

Culture
Values, ideas and attitudes learned and shared among the members of a group

Values
-Family
-Health and Fitness
-Concern for environment
EX: price premium for honest, healthy things? Then the value argument

Economic Forces
Macroeconomic
Microeconomic
Macroeconomic
Inflation? Recession?
Unemployment rate
Interest rates-Cost of borrowing money
Microeconomic
Income: Gross, Disposable, Discretionary
Consumer expectations
During recession there is a slow down in the economy. Firms stop hiring people and lay off people, leading to a high interest rate…The government tries to counter this by lowering the interest rates (thus encouraging people to spend more)… Consumer confidence & expectations vary depending on the macroeconomic conditions…During periods of recession as now, consumer confidence is low…people save more because they’re not sure whether they will be laid off..All these factors affect or should affect marketers in the sense that marketers may need to adapt their marketing startegies Price, Place, Product Promotion accordingly.
Technological Forces
Inventions or innovations from applied science or engineering research
Technology influences
-What new products may enter the market
-How consumers would shop, what products they’d like to purchase, what media consumers would view
One of the major technological innovations in the last 15 years or so is the birth of the internet and the world wide web which has completely revamped the way consumers behave, the kind of products they buy, and how they buy them. Now consumers specially young consumers spend significantly less time on media such as TV and more time on blogs, social networking sites and so on…What does this mean for marketers? Marketers need to adapt themselves..they need to develop products that incorporate the technologies that consumers now want? So magazines now have to produce online versions for subscriptions..they also have to change their promotional strategies and invest more on such media as social media.
Competitive Forces
Marketers need to ask questions such as:
Who are my competitors?
What is their position?
Where do we fit in?
Are my competitors improving?
Is the perception of my competitors’ brands changing?
Do I need to prepare my response to new competitor entry?
Regulatory Forces
Competition Related
Product Related Legislation
Pricing Related Legislation
Distribution Related Legislation
Advertising and Promotion Related
Competition Related
Sherman Antitrust Act (1980)
Clayton Act (1914)
Robinson-Patman Act (1936)
Product Related Legislation
Patent
Copyright
Trademark
FDA
Labeling Guidelines
Pricing Related Legislation
Price fixing
Price Discounts
Distribution Related Legislation
Exclusivity
Reciprocal
Tying Arrangments
Advertising and Promotion Related
Deceptive advertising: false or misleading
Promotion: sweepstakes
What does this mean for marketing
TSA

Airline restrictions on what you can take on board etc. e.g. mascara was not allowed but cake mascara was allowed.

Situation Analysis
An in depth analysis of the organizations internal and external environments
Marketing Plan
A written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation and control of those activities
Organizational Mission vs. Organizational Vision
Mission Statement
Vision Statement
Mission Statement
Answers: What business are we in?
Clear and concise
Explains the organization’s reason for existence
Vision Statement
Answers: What do we want to become?
Tends to be future oriented
Represents where the organization is headed
How to write a good mission statement
Neither too short, nor too wide
Avoid buzzwords
Make it operative
II. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Strengths:
strong well established brand name, global brand awareness. Opportunities:
Population in developing countries is growing rapidly,
presenting Coke an opportunity to increase sales.
Threat:
In many countries people are becoming health conscious…Maybe ppl will start shifting to non-carbonated drinks
Weaknesses
Being a global company, is not as rapid in its marketing activities than local carbonated countries.
EXAMPLE: SWOT of Nike-Stregths
-Strong global brand
-Creative workforce
-Innovation-driven culture
-Effective market research
-Lean organization
-Outsource manufacturing to wherever they can get good quality at cheapest
Weaknesses
-Income heavily dependent on its share of the footwear market
-Making sales vulnerable
Opportunities
-Strong projected growth in number of people aged between 15-30 in many developing countries
-People’s interest in sports growing
Threats
-People becoming more price conscious due to global recession
-Shifting to cheaper sneakers/apparel
III. Marketing Goals and Objectives
-Formal statements of desired and expected outcomes of the marketing plan
Goals:
Broad, simple statements of what is to be accomplished
Objectives
Translation of goals in concrete marketing terms
–>Market Share, Sales, Customer Awareness, Product usage, etc
-More specific and essential to planning
-Should be clear, measurable and time bound
Example of Marketing Goals
To become one of the top three players in the category of ‘trendy jeans’

To consolidate our number 1 position in the detergent market

Attain market leadership in the all natural snack segment of the salty snacks category

To grow the overall coffee market in Sri Lanka

To help grow the membership revenue of Turner Center

Examples of Marketing Objectives
Increase product awareness of our Jeans Brand X among college-going women aged 18-22 by 30 % in one year.

Increase average usage per customer per month of our detergent brand Y by ½ lb leading to a 10 percent increase in sales in one year.

Create awareness of our baby care lotion brand Z to 10% among mothers of newborn within 6 months of launch.

Grow the share of coffee in the hot beverage share of throat in Sri Lanka to 2% within 2 years.

To increase new memberships in Turner Center by 10% in Fall 2012 versus Fall 2011.

IV.Marketing Strategy
Selecting target market and positioning

Marketing Mix
-Pricing Strategy
-Product
-Place
-Promotion

Market Segmentation
Aggregates buyers into groups that:
-Have common needs
-Will respond similarly to a marketing action
Positioning
How you would like your product to stand out in the consumer;s mind:

Our brand ______ stands out versus _____ because ________.

Marketing Mix: Product Strategy
Features of the product
Marketing Mix: Price Strategy
Premium pricing
Discount pricing
Marketing Mix: Promotion Strategy
Advertisements
Sales Promotions
PR
Place (distribution) Strategy
Retail
Wholesale
Online
V. Marketing Implementation
What specific marketing actives will be undertaken?
How will these activities be performed?
When will these activities be performed?
Who is responsible for the completion of these activities?
How will the completion of planned activities be monitored?
How much will these activities cost?
Increase average usage per customer per month of our detergent brand Y by ½ lb leading to a 10 percent increase in sales in one year.

Introduce family-size pack (5 lb) in addition to the current 1 lb pack.

Create awareness of our baby care lotion brand Z to 10% among mothers of newborn within 6 months of launch.

Send free samples to women who buy the ‘baby book’

Grow the share of coffee in the hot beverage share of throat in Sri Lanka to 2% within 2 years.

Free sampling in high school/University cafeterias
Endorsements of film starts

VI. Evaluation and Control
How will we gauge the performance of the plan?
What corrective action will we take if performance is not up to the mark?
When will be take this corrective action?
Performance usually benchmarked against
-Marketing Objectives (sales, market share, brand name recognition)
-Financial Objectives (return on investment, cash flows, profitability)