Marketing Process & Strategic Marketing Planning II Module BBA
Marketing Process Model Understanding the market place and customer needs and wants Design a customer-driven marketing strategy Construct an integrated marketing program that delivers superior values Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity
What is Strategic Planning?
It is the managerial process that helps to develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.
How to go about it?
Defining the corporate mission
Allocating resources for SBUs
Planning for new business
This seeks to embody the entire goals of the organization and the objective of its existence.
It seeks to provide a sense of purpose, direction and opportunity
For e.g. e-bay’s mission:
“ to provide a global trading platform where practically anyone can trade practically anything”.
5 questions that the firm must ask itself
What is our business?
Who is our customer?
What does our customer need?
What will our business be?
What should our business be?
Industry is a customer satisfying process not a goods producing process.
It is important therefore how you redefine your business.
Good mission statements have three characteristics
They focus on a limited number of goals
It stresses the major values and policies the firm desires
It defines the major competitive scope of operation
Infosys Mission statement
“ To achieve our objectives in an environment of fairness, honesty and courtesy towards our clients, employees, vendors and society at large”
“ To organize the world’s information and make it universally acceptable and useful”.
It is a company within a company
The business is differentiated from the rest of the company
The GE Model Business Strength Mkt Attractiveness Strong Medium Weak Strong Medium Weak
Ansoff’s Product-Market Grid Current products New products Current Mkts New Mkts Mkt penetration strategy Mkt development strategy Product development strategy Diversification strategy
The SBU Planning Process
Analyzing Market opportunities
Developing Marketing strategies
Program Formulation & Implementation
Porter’s Generic Strategies
Overall cost leadership
Overall Cost Leadership
This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers.
the firm hopes to take advantage of economies of scale
low direct and indirect operating costs, by offering basic no-frills products and limiting customization and personalization of service.
Differentiate the products in some way in order to compete successfully.
A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under-served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to copy.
The firm can choose to compete in the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment with a narrow scope
The firm typically looks to gain a competitive advantage through product innovation and/or brand marketing rather than efficiency. A focused strategy should target market segments that are less vulnerable to substitutes or where a competition is weakest to earn above-average return on investment.
The contents and structure of the marketing plan
The executive summary
Threats and opportunity Analysis
Marketing tactics/Action Programs
Schedules and budgets
Financial data and control
Why is marketing planning necessary?
Systematic futuristic thinking by management
better co-ordination of company efforts
development of better performance standards for control
sharpening of objectives and policies
better prepare for sudden new developments
managers have a vivid sense of participation
Objectives of the marketing plan
Acts as a roadmap
assist in management control and monitoring the implementation of strategy
informs new participants in the plan of their role and function
to obtain resources for implementation
to stimulate thinking and make better use of resources
Criticisms of marketing planning
Formal plans can be quickly overtaken by events
Elements of the plan may be kept secret for no reason
gulf between senior managers and implementing managers
the plan needs a sub-scheme of actions
Assignment of responsibilities, tasks and timing
Awareness of problems, opportunities and threats
Essential marketing information may have been missing
if implementation is not carefully controlled by managers, the plan is worthless!
Cautionary notes for effective planning
Don’t blindly rely on mathematical and statistical calculations. Use your judgement as well
Don’t ever assume that past trends can be exploited into the future forever
if drawing conclusions from statistical data, make sure the sample size is sufficiently large
Analyzing Marketing Opportunities
The Company’s Microenvironment
The Company’s Macro environment
Marketing Information system
It consists of people , equipment and procedures to gather , sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers
Marketing Information System Process Analysis Planning Implementation Control Marketing Environment Target Markets Marketing Channels Competitors Publics Macro environment Forces Assessing Information Needs Distributing & Using Information Marketing Information System Internal database Marketing Intelligence Marketing Research Information analysis Marketing Managers and other info users Developing Needed Information
The order to payment cycle
Sales Information Systems
Databases, Data-warehousing and data-mining
It is a set of procedures and sources managers use to obtain everyday information about developments in the market environment.