Gateways Institute of Science and Technology

HOW TO USE THIS LEARNER’S MANUAL

1. Answer the diagnostic test before you proceed to the different activities. The diagnostic test
determines how much you know about the lessons and identifies the areas you ought to learn.
Your teacher will check and analyze your score to determine your learning needs;
2. This module contains relevant information and activities. Go over each activity carefully. If you
encounter difficulties, do not hesitate to consult your teacher for assistance through your group
messaging;
3. Do not skip any lesson. REMEMBER that each activity is a preparation for the succeeding
activities;
4. Perform the given activities, quizzes and assignments to enrich your knowledge and skills;
5. Write all your answers on a separate sheet of paper;
6. After successfully finishing the tasks, PLEASE RETURN this
module with your answers to the quizzes and tasks given for
checking;

7. Your score will be analyzed and will be used by your teacher

for the computation of your grades;
8. Lastly, DO NOT mark this MODULE in any way.

PRINCIPLES OF MARKETING – GRADE 11 ABM

3rd Quarter

Week 6
I. OBJECTIVES (Specific Objectives)

At the end of the lesson, the learner should be able to:

1. Distinguish between strategic and marketing planning in terms of objectives and

processes; and
2. Analyze the elements of macro- and micro-environment and their influence to
marketing planning.

II. CONTENTS

A. Motivation

B. Lesson Proper

A strategic plan identifies your business goals, the marketplace in which you compete, your
target audience, the ways you want to reach them, and how you will evaluate your success.
A strategic marketing planning process also helps with: Providing a clear map of your
company's goals and how to achieve them.

C. Discussion

Strategic planning is a broad process that can address the entire business, or a portion of
the business such as marketing. Marketing strategies derive from strategic plans. To
understand the relationship between the two, it's important to understand the purpose of
strategic planning; the planning process; the difference between goals, objectives,
strategies and tactics; and the important role of measurement in strategic planning.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 The Purpose of Strategic Planning

Strategic planning is designed to provide an organization, its divisions, departments or

even individual players with a game plan or road map to achieve specific goals and
objectives. Strategic planning identifies internal and external effects and opportunities to
consider in the creation of strategies and tactics. From a marketing standpoint, strategic
planning might help to identify new market opportunities as well as new competitive
threats.

The Planning Process

A number of steps are involved in any strategic planning process, including a strategic
marketing planning process. These include identifying the overall planning goal, selecting
team participants, gathering data related to the internal and external environment,
conducting a SWOT (strengths, weaknesses, opportunities and threats) analysis,
developing specific objectives, creating strategies and tactics, and designing a
measurement and reporting process. In many organizations, the overall strategic plan
provides direction for the creation of sub-plans, including a strategic marketing plan.

Goals, Objectives, Strategies and Tactics

The components of a strategic marketing plan include goals, objectives, strategies and
tactics. Goals are broad and provide general direction in terms of what the marketing
organization would like to achieve, for instance an increased market share. Objectives are
tied to goals and provide more specific, measurable outcomes -- for example, increase
market share in a specific geographic area for a specific product, by a certain amount or
by a specific date. Strategies and tactics indicate how goals and objectives will be met.
Strategies are broad: for instance, implement a social media strategy. Tactics are more
specific and indicate the individual tasks to achieve the strategies -- for instance, set up a
Twitter account or establish a YouTube channel.

The Important Role of Measurement in Strategic Planning

It is not enough to plan; a plan must include some form of measurement and a process for
monitoring and reviewing results. An overall strategic plan might outline broad objectives
for marketing; the marketing plan would detail more specific objectives for the marketing
department to monitor and report on. The results achieved -- whether they fall short or
exceed expectations -- provide input used to consider changes or adjustments in the plan.
On-going measurement and reporting can help to ensure the strategic plan continues to
achieve measurable results.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 Marketing Objectives

Marketing objectives are the intended goals of a company’s marketing campaigns.

Marketing objectives are often listed as SMART goals: This acronym stands for specific,
measurable, achievable, realistic and time-sensitive. An example of a SMART marketing
goal is to increase cereal sales by 5 percent in six months through 10 week-long product
awareness campaigns held in five target cities. Thomas Speh, author of the book “Business
Marketing Management,” also explains how business objectives must align with corporate
objectives. Additionally, they must be synchronized with the goals of other departments,
including accounting, procurement and customer service.

Market planning is the process of organizing and defining the marketing aims of a
company and gathering strategies and tactics to achieve them. A solid marketing plan
should consist of the company’s value proposition, information regarding its target market
or customers, a comparative positioning of its competitors in the market, promotion
strategies, distribution channels, and budget allocated for the plan. All relevant teams in
the organization should refer to the marketing plan.

Stages of Market Planning

The first stage of market planning involves sales projections and evaluations of past
promotional activities to assess their effectiveness. The process of analyzing a product
enables a company to identify which areas of the plan should carry a heavier focus or
which areas should be adjusted. The analysis not only involves evaluating the company’s
competitive position in its respective market but also considering how to implement new
strategies for its business goals.

The second stage is to organize marketing objectives and strategies. It is crucial here to
establish the relationships between the proposed activities so the plan can be carried out
efficiently.

Marketing Mix

The marketing mix is a combination of elements that influence customers to purchase a

product. The marketing mix includes four main factors – Product, Price, Place, and
Promotion. Product refers to either the tangible good that your business offers or the
intangible good, referring to services. Key decisions made under this umbrella are
branding, product design, package and labeling details, warranties, and more.

Here are the essential components of a marketing plan that keeps the sales pipeline full.

1. Market research. Research is the backbone of the marketing plan. Your local library is a
great place to start, offering reports like Standard & Poors or IBIS World. Some library

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 cards even allow access to online services from home. Identify consumer buying habits in
the industry, market size, market growth or decline, and any current trends.

2. Target market. A well-designed target market description identifies your most likely
buyers. In addition, you should discuss at least two or three levels of segmentation. A
language tutoring business might target both students and foreign-born employees who
want to improve their English.

3. Positioning. What is the perception of your brand in the marketplace? For example, if
your restaurant sells burgers, do customers see you as the place to go for gluten-free or
healthy options or the place to go if you’ve got an appetite for a double cheeseburger?
The difference in how the target market sees you is your positioning. Develop compelling
branding and marketing messages that clearly communicate how you want to be
perceived.

4. Competitive analysis. You need to know who your competitors are and how your
products and services are different. What is the price point at which your competitors are
selling, and what segment of the market are they aiming to reach? Knowing the ins and
outs of your competitors will help you better position your business and stand out from
the competition.

5. Market strategy. Your marketing strategy is your path to sales goals. Ask yourself “How
will I find and attract my most likely buyers?” This is the core of what the strategy should
explain. It should look at the entire marketplace and then break down specific tactics
including such as events, direct mail, email, social media, content strategy, street teams,
couponing, webinars, seminars, partnerships, and other activities that will help you gain
access to customers.

6. Budget. Develop a month-by-month schedule of what you plan to spend on marketing.

Also include a “red light” decision point. For each activity, establish a metric that tells you
to stop if it’s not generating sufficient return on investment (ROI).

Budget

Budgeting may be the most important term in marketing planning when it comes to
execution. Often, in order to secure funds from top management or banks, sufficient
proof of your advertising plan’s success is needed. It requires accurate forecasting of
returns generated by individual advertising expenditures. It is important that returns are
not overestimated to avoid spending too much and running out of money early on.

7. Metrics. Track your marketing success with Google Analytics for website conversions
and a simple Excel sheet to compare your budget against the actual ROI. Test programs
over the course of a 30- to 60-day period, and evaluate the results. Repeat any programs
that are delivering sales or sign-ups to your email list, and get rid of anything that’s not.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 Macro Environment of Marketing

Macro environment factors which consist of external forces. These external factors
influence the company’s marketing strategy is a great length.

The external environment factors are uncontrollable and the company finds it hard to tackle
the external factors.

Elements of macro-environment of marketing are;

1. Demographic factors.
2. Economic factors.
3. Natural forces.
4. Technology factors.
5. Political factors.
6. Cultural factors.

1. Demographic Environment
Demography is the study of human populations in terms of size, destiny, location, age,
gender, race, occupation, and other statistics.

This is the very important factors that help the marketer to divide the population into
different market segments and target markets.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 Demographic data also helps in preparing geographical marketing plans, age, and sex-wise
plans.

2. Economic Environment
Economic Environment is those macro factors that affect consumer buying power and
spending patterns.

It includes the level of income, policies, and nature of an economy, economic resources,
trade cycles, distribution of income and wealth.

When the income of a family or country (per capote income) changes it also changes the
buying behavior and spending pattern of the family or country.

3. Natural Environment
Natural environment involves the natural resources that are needed as inputs by marketers
or they are affected by marketing activities.

So marketers should be aware of several trends in the natural environment.

4. Technological Environment
Technological forces are perhaps the most dramatic forces which are changing rapidly.
These macro-environmental forces create a new product, new markets and marketing
opportunities for marketers.

5. Political Environment
It includes government actions, government legislation, public policies, and acts which affect
the operations of a company or business.

These forces may affect an organization on a local, regional, national or international level.

So marketers and business management pay close attention to the political forces to judge
how government actions which will affect their company.

6. Cultural Environment
Cultural factors in heritage, living styles, religion, etc. also affect a company’s marketing
strategy. Social responsibility also becomes part of marketing and slowly emerged in
marketing literature.

Socially responsible marketing is that business firms should take the lead in eliminating
socially harmful products.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 Micro Marketing environment

The micro-environment refers to the forces that are close to the company and affect its ability
to serve its customers. It influences the organization directly.

It includes the company itself, its suppliers, marketing intermediaries, customer markets,
competitors, and the public.

5 components of the micro environment of marketing are:

1. Internal Organizational Environment

The first is the organization’s internal environment—its several departments and management
levels as it affects marketing management’s decision making.

2. Marketing Channel
The second component includes the marketing channel firms that cooperate to create value: the
suppliers and marketing intermediaries (middlemen, physical distribution firms, marketing-
service agencies, financial intermediaries).

3. Types of Market
The third component consists of the five types of markets in which the organization can sell: the
consumer, producer, reseller, government, and international markets.

4. Competition
The fourth component consists of the competitors facing the organization.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6
 5. Organizational Objectives

The fifth component consists of all the public’s that have an actual or potential interest in or
impact on the organization’s ability to achieve its objectives: financial, media, government,
citizen action, and local, general, and internal publics.

Differences between Macro and Micro Environment of Marketing

Micro and macro refer to economic environments within which marketing takes place.
Though not exactly opposites, broad differences exist between macro marketing and
micromarketing.
The differences between macro environments and micro-environments may be relevant to
identify in the following table:

Point of
Macro-environment Microenvironment
difference

External environment of an
Meaning Inter environments of an organization.
organization.

Nature Very complex. Less complex to perceive.

Marketer interacts with, the

The task of the The marketer interacts with other
elements prevailing outside the
marketer functional areas of the organization.
organization.

Factors remain beyond the control Factors may be controlled to a large

Extent of control
of marketers. extent by a marketer.

It creates a huge impact on shaping Remains comparatively independent are

Impact
marketing decisions. shaping marketing decisions.

Factors reveal the capabilities of an

Factors may create an opportunity
organization to exploit the
Function or pose a threat to the marketing
opportunities or to combat the threat
activities of an organization.
through its marketing activities.

Developed by: Gateways Institute of Science and Technology

Subject: Principles of Marketing – Grade 11 ABM
Quarter & Week #: 3rd Quarter – Week 6