Optimality in Marketing Research

Marketing Session 2: Marketing Planning
Agenda:
A. The Marketing Plan
B. The Strategic Planning Process
C. Organizational aspects
A. The Marketing Plan:
Purpose of a Marketing Plan:

- The marketing plan documents how the organization’s strategic
objectives will be achieved through specific marketing strategies and
tactics
- It must have the customer as a starting point and has to be linked to the
plans of other departments within the organization
- Ties together an evaluation of the current situation
Marketing Strategy: the marketing logic by which the business unit hopes to
create customer value and achieve profitable customer relationships, targeting
and positioning.
Marketing Mix: The set of controllable tactical marketing tools that the firm
blends to produce the response it wants in the target market. Product Price and
Communication.
Content of the Marketing Plan:

1. Executive summary: presents a brief summary of the main goals
recommendations and points of the plan for management review.
2. Current marketing situation: provide information about the company

current situation. Market, Product, Competitors and Distribution.
3. Analysis of threats and opportunities: assesses the major strengths and

weaknesses that the company might face, using the SWOT analysis.
4. Objectives and issues: Objectives are usually referred to the company’s
sales, market share and profits but also awareness, recall and recognition.
5. Marketing strategy: Outline the broad marketing logic by which the
business unit hopes to achieve and the specifics of target markets,
positioning and expenditure levels
o Segmentation: divide the market into groups of buyers.

o Targeting: evaluate each market segment’s attractiveness
o Differentiation: create a superior customer value by
differentiating the market
o Positioning: arranging for a product to occupy a clear distinctive
and desirable place relative to competing products in the minds of
target consumers.
6. Action Programs: Market Mix: Who? What? When? How?
7. Budgets: Marketing Budget: Profits and loss statement
8. Controls: To monitor progress and allow higher management to review
implementation results
B. Strategic Planning:
Strategic Planning: Process of developing and maintaining a strategic fit

between the organization’s goals and capabilities and its changing marketing
opportunities. Has to do with the management of portfolio of activities because
the selection of industries has a deeper impact on growth than the performance
in those industries.
Growth Drivers=Portfolio momentum, Mergers and Acquisitions and Share

gain. Where to compete v’s how to compete?
Strategic Planning Process:
1) Defining a Market oriented Mission:

eg illy, google, P&G
Mission Statement:
- Market oriented (not product oriented) and based on satisfying
customers needs
- Meaningful and specific yet motivating
- Emphasize company’s strengths in the market
- Should not be stated in sales or profits
- (Should answer, what is your business, who is out customer? What do
consumers value? What should our business be?)
2) Setting Firm Objectives and Goals: the mission should be translated into
supporting objectives for each level of management. Objectives are structure in a
hierarchal way. While there are some consistencies they tend to differ.
3) Designing the business portfolio: The collection of businesses and products

that make up the company. Dealing with a homogeneous set of activities, but you
can extend the same logic to portfolio logic.
E.g.: business portfolio of General Electrics,

E.g.: Volkswagen Group Product Matrix, Luxury to Mini cars against differing
cars,
E.g.: Hyundai,
E.g.: L’Oreal, ages against product type
E.g.: Palmolive
Portfolio does not limit itself to large firms, e.g. a small car dealer, very often-
selling second hand cars; they sell new cars, financing, and multi functional
business.
Growth Drivers in the businesses are, increasing market share, internal growth
share gain and gain new activities of portfolio momentum. Moving activities and
resources from low moving to fast growing economy. Granularity of Growth
database, show that growth comes from the management of portfolio, the
individual industry isn’t important but the over is.
Designing the business portfolio:

Two variables:
a) Market growth or market attractiveness (Market)
b) Market share of competitive strength (competitive position)
The double logic, interested in the outside and the inside, what happens in
the context with the inside performance.
Main Models in Designing the business portfolio:
1) Boston Consulting Group (BCG): Market growth related to the consumption
of financial resources. Market share is related to generation of the source.
Product Categories. Automatic and effective but doesn’t take into account the
different competitive logics.
Star: balance, need resources to sustain growth

Cash Cows: positive cash flows, able to provide resources
Dogs: Negative (marginally) cash flows, can be dismissed
?: negative cash flows can be dismissed
E.g.: The European Pharma Product Portfolio.
2) Mec Kinsey/GE: based on Market attractiveness and competitive position,

measured by developing multi-item indices. This is richer than the 1st
approach.
Market Share Importance: when the size has an impact in competitive position.
Relative market share, the cloths industry as you make larger profits but
producing more expensive but less product. Food industry (not important) the
size of the factor is not so important as is the brand equity.
C. Organizational aspects: Planning and controlling
1) Systemic Aspect: corporate, marketing, product, communication, sales
2) Organizational relevance: focus, coordination, mobiliation
3) Relevance of implementation: strategy, planning, emergent, driving
and drifting. Implementation is difficult and critical to success.
4) Control and Marketing audit: Set goals, measure performance,
evaluate performance, take corrective action
Return on Marketing Investment:

- standart marketing performance measures, brand awarness, sales,
margins, market share, customer acquisition.

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Marketing Session 2: Marketing Planning

A. The Marketing Plan:

Purpose of a Marketing Plan:

Content of the Marketing Plan:

2. Current marketing situation: provide information about the company

3. Analysis of threats and opportunities: assesses the major strengths and

o Segmentation: divide the market into groups of buyers.

Strategic Planning: Process of developing and maintaining a strategic fit

Growth Drivers=Portfolio momentum, Mergers and Acquisitions and Share

Strategic Planning Process:

1) Defining a Market oriented Mission:

3) Designing the business portfolio: The collection of businesses and products

E.g.: business portfolio of General Electrics,

Designing the business portfolio:

Star: balance, need resources to sustain growth

2) Mec Kinsey/GE: based on Market attractiveness and competitive position,

Return on Marketing Investment:

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