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Principles of Marketing
GROUP 2

Strategic Planning and

the Marketing Process
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 Objectives
 What is strategic marketing planning?
 Scope and importance of strategic
planning
 Corporate and division strategic planning
 Business unit strategic planning
 The marketing process
 Implementation and control

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 Introduction to Strategic Marketing

BY
MR. JUNAID YUSUF

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 Strategic Planning

Strategic Planning is the Process of Developing

and Maintaining a Strategic Fit Between the
Organization’s Goals and Capabilities and Its
Changing Marketing Opportunities.

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 Strategic planning in market involves
 Where should be the company be in the
next 5 to 10 years?
 Why do we exist? What are the goals of org?
 Which are the market it should serve?
 What are the products it should offer?
 Should there any product live or brand
extension?
 What resources do we need for successful
future?
6  Who will be our customers?
 Marketing Strategy

“Marketing Strategy is a series of

integrated actions leading to a
sustainable competitive advantage.”
John Scully

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 Understanding Corporate Level

BY
MISS. SABBA ABBAS

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 Organizational Marketing
Levels
Hofer and Schendel suggested that
organizations develop strategies at three
structural levels:
 Corporate level—(corporate marketing)
 SBU level—(Strategic Marketing)
 Product/Market level—(Functional
Marketing)

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 Corporate and Division
Strategic Planning
A Mission Statement is a Statement of the Organization’s Purpose.

Market Oriented
Characteristics of a
Realistic Good Mission
Statement:
Specific
Fit Market Environment
Distinctive Competencies

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Motivating
Good Mission Statements:

Limited number of goals

Stress major policies & values

Define competitive scopes

Setting Corporate Objectives and
Goals

Business objectives Marketing objectives

• Build profitable • Increase market

customer share
relationships • Create local
• Invest in partnerships
research • Increase
• Improve profits promotion
 Designing the Business Portfolio

 The business portfolio is the collection of businesses

and products that make up the company.
 The company must:
 analyze its current business portfolio or Strategic
Business Units (SBU’s)
 decide which SBU’s should receive more, less, or
no investment
 develop growth strategies for adding new
products or businesses to the portfolio
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 What is a Strategic Business Unit?
(SBU)
An SBU has three characteristics:
 It is single business, or a collection of
related businesses, that can be planned
separately.
 It has its own set of competitors.
 It has a manager responsible for strategic
planning and profit performance, who
controls most of the factors affecting
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profit.
Analyzing the Current Business
Portfolio
Identify key businesses (strategic
business units, or SBUs) that
make up the company

Assess the attractiveness of

its various SBUs

Decide how much support

each SBU deserves
 Analyzing Current SBU’s:
Boston Consulting Group Approach
Relative Market Share
High Low
Stars Question Marks
?
High
Market Growth Rate

• High growth & share • High growth, low share

• Profit potential • Build into Stars or phase out
• May need heavy • Require cash to hold
investment to grow market share

Cash Cows Dogs

• Low growth, high share • Low growth & share
Low

• Established, successful • Low profit potential

SBU’s
•Produce cash

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 Market Attractiveness: Competitive-
Position Portfolio Classification
BUSINESS STRENGTH
Strong Medium Weak
MARKET ATTRACTIVENESS

5.00 3.67 2.33 1.00

5.00
Low Medium High

3.67

2.33

1.00
Invest/grow Selectivity/earnings Harvest/divest
 Problems With Matrix
Approaches
Can be Difficult, Time-Consuming, & Costly to Implement

Difficult to Define SBU’s & Measure Market Share/ Growth

Focus on Current Businesses, But Not future Planning

Can Lead to Unwise Expansion or Diversification

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 Assessing Growth Opportunities

BY
M R . FA R H A N M A L I K

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 The Strategic-Planning Gap

Desired
sales
Diversification growth
Strategic-
planning
Integrative growth gap
Sales

Intensive growth

Current
portfolio

0 5 10
Time (years)
 Developing Growth Strategies

Product/ Market Expansion Grid

Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

New 2. Market
4. Diversification
Markets Development

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 Product/ Market Expansion Grid

 Market Penetration: making more sales to current

customers without changing its products.
 How? Add new stores in current market areas,
improve advertising, prices, service or store design.

 Market Development: develop new markets for its

current products.
 How? Identify new demographic or geographic
markets.

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 Product/ Market Expansion Grid

 Product Development: offering modified or new

products to current markets.
 How? New styles, flavors, colors, or modified
products.
 Diversification: new products for new markets.
 How? Start up or buy new businesses.

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 Business Unit Strategic Planning

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 Historical review and situation
analysis
Purpose:
To develop a marketing strategy an organization
requires information on its past and present
position.
 External environment
 Market
 Customer
 Competitors

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 Company
 SWOT Analysis

S • Things the firm does well.

W • Things the firm does not do

well.
• Conditions in the external
O environment that favor the
firm’s strengths
• Conditions in the external
T environment that do not relate
to existing strengths and
exposes areas of current
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weakness.
 Opportunity Matrix
Opportunities
1. Company develops a
more powerful lighting
Success Probability system
High Low 2.Company develops a
device for measuring the
Attractiveness

energy efficiency of any

High 1 2 lighting system
3.Company develops a
device for measuring
illumination level
4.Company develops a
Low 3 software program to
4 teach lighting
fundamentals to TV
studio personnel
 Threat Matrix
Probability of Occurrence Threats
High Low 1 Competitor develops a
superior lighting system
Seriousness

High 2.Major prolonged

1 2 economic depression

3.Higher costs

4.Legislation to reduce
Low 3 4 number of TV studio
licenses
 Marketing Strategy and the
Marketing Mix
BY
M I S S . I R S A J AV E D A K H T E R

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 Competitive Advantage
 Basically, strategy is about two things: deciding
where you want your business to go, and
deciding how to get there. A more complete
definition is based on competitive advantage,
the object of most corporate strategy.
Competitive advantage is a company’s ability to
perform in one or more ways that competitors
cannot or will not match.”
Philip Kotler
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 COMPETITIVE ADVANTAGE
Lower Cost Differentiation

Broad 1. Cost Leadership 2. Differentiation

Target
COMPETITIVE
SCOPE
Narrow 3A. Cost Focus 3B. Differentiation
Target Focus

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 Factors Influencing Company
Marketing MarketingStrategy
intermediaries
Demographic/ Technical/
economic physical
environment environment
Product

Suppliers Place Target Price Publics

customers

Promotion
Political/ Social/
legal cultural
environment environment
Competitors
 Customer Driven Marketing
Strategy
 Market Segmentation: determining distinct groups
of buyers (segments) with different needs,
characteristics, or behavior.
 Market Targeting: evaluating each segment’s
attractiveness and selecting one or more segments to
enter.
 Market Positioning: arranging for a product to
occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target
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consumers.
The Role of Market Segmentation

 Market Segmentation
Division of the total market into
smaller, relatively homogeneous groups

 No single marketing mix can satisfy

everyone. Therefore, separate
marketing mixes should be used for
different market segments.

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No Market Segmentation

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Segmented by Sex

9-36
Segmented by Age

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Selecting a Target Market

 Before a marketing mix strategy can be

implemented, the marketer must identify,
evaluate, and select a target market.
 Market: people or institutions with
sufficient purchasing power, authority, and
willingness to buy
 Target market: specific segment of
consumers most likely to purchase a
particular product
 Positioning
 Positioning: a marketing strategy that
emphasizes serving a specific market segment
by achieving a certain position in buyers’
minds
 Attributes
 Price/quality
 Competitors
 Application
 Product user
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 Product class
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 Developing the Marketing Mix
Product Price
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to
target market Obtain the product
Target
Customers

Intended
Positioning
Activities that Company activities
persuade target that make the
customers to buy product available
the product
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Promotion Place
 The Marketing Process

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Analyzing marketing
opportunities
 The strategic planning
and business portfolio analysis
processes help to identify and evaluate
marketing opportunities.
 The purpose of the marketing process
is to help the firm plan how to
capitalize on these opportunities.

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Selecting target markets

 The segmentation process divides the

total market into market segments.
 Target marketing determines which
segment(s) are pursued.
 The market positioning for the product
is then determined.

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 Developing the marketing mix
 Competitor analysis guides competitive
marketing strategy development.
 Strategy leads to tactics by way of the
marketing mix:
 The “Four Ps” – product, price, place,
promotion (seller viewpoint)
 The “Four Cs” – customer solution, cost,
convenience, and communication
(customer viewpoint)
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 Managing the marketing effort
 Marketing analysis
 Provides information helpful in planning,
implementation, and control
 Marketing planning
 Strategies and tactics
 Marketing implementation
 Turns plans into action
 Marketing control
 Operating control
 Strategic control
2- 45 Marketing audit
 The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Threat & Opportunity Analysis
Objectives & Issues
Marketing Strategy
Action Programs
Budgets
Controls
Strategic-Planning, Implementation,
and Control Process
Planning Implementation Control
Corporate Measuring
planning Organizing results
Division
planning Diagnosing
results
Business Implementing
planning
Taking
Product corrective
planning action
 Marketing Implementation
Marketing Strategy

Decision
and
Organizational Reward Human
Structure Resources
Action Climate and
Programs Culture

Implementation

48 Marketing Performance
 Marketing Control Process

Set Measure Evaluate Take

Goals Performance Performance Corrective
Action

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50 PRESENTATION……