SM Module 1

Nature of Market-Oriented Strategic Planning

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Market-oriented strategic planning is the process of developing and
maintaining a strong fit between the organization's goals, capabilities, and
changing market opportunities.
It ensures that a company adapts its strategies based on customer needs,
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competitor actions, and external market forces.
Key Features (Nature):
. Customer-Centric Approach
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○ Focuses on understanding and satisfying customer needs better
than competitors.
○ Aligns all business activities (product, pricing, promotion,
distribution) with the target market’s expectations.
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. Strategic Fit
○ Matches company resources and strengths with market
opportunities.
○ Seeks a balance between internal capabilities and external
environment (SWOT analysis is commonly used).
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. Long-Term Orientation
○ Not just short-term profits; aims at building sustainable
competitive advantages.
○ Focuses on brand building, market positioning, and customer
relationships over time.
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. Dynamic and Flexible
○ Recognizes that markets are continuously evolving due to
technology, competition, regulations, and consumer behavior.
○ Strategies must be adaptable and responsive to change.
. Integrative and Holistic
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○ Involves all functional areas: marketing, finance, HR, operations.
○ Strategic planning is not isolated to the marketing department but
involves the entire organization.
. Environmental Analysis
○ Considers macro factors like political, economic, social,
technological (PEST analysis) and industry forces (Porter’s Five
Forces).
○ Monitoring competitors and market trends is critical.
. Value Creation Focus
○ Not just about selling products but about creating superior value
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for customers.
○ Includes innovation, quality enhancement, and service excellence.
. Top-Management Responsibility
○ Strategic planning is usually led by top executives.
○ Leadership commitment ensures that plans are effectively
implemented and followed.

Scope of Market-Oriented Strategic Planning

Market-oriented strategic planning covers a wide range of activities that help
businesses analyze, design, implement, and control strategies based on the
needs of the market.
The scope includes:
. Defining the Corporate Mission
○ Establishing why the organization exists.
○ Setting a customer-centered mission statement (e.g., "to provide
affordable healthcare to rural areas").
. Setting Strategic Business Units (SBUs)
○ Dividing the company into units based on products, markets, or
geographies.
○ Each SBU plans strategies based on specific customer needs and
market opportunities.
. Analyzing the Business Portfolio
○ Using tools like BCG Matrix, GE-McKinsey Matrix to evaluate
products/services.
○ Helps decide where to invest, divest, or grow.
. Identifying Growth Opportunities
○ Market penetration, market development, product development,
diversification (Ansoff Matrix).
○ Focused on understanding where customer needs are evolving.
. Environmental Scanning
○ Regularly monitoring political, economic, social, technological,
legal, and environmental trends (PESTLE analysis).
○ Keeping track of competitor activities and market shifts.
. Customer and Competitor Analysis
○ Deeply understanding customer behavior, preferences, and pain
points.
○ Studying competitors to build unique positioning.
. Strategic Implementation
○ Designing marketing programs (4Ps/7Ps) aligned with the strategic
goals.
 ○ Allocating resources and responsibilities.
. Strategic Control and Feedback
○ Monitoring performance against set objectives.
○ Revising strategies based on market feedback and results.
. Value Chain Management
○ Optimizing internal processes (sourcing, production, logistics,
marketing, services) to deliver greater customer value.
. Sustainability and Ethics Considerations
○ Integrating socially responsible practices into strategy.
○ Considering environmental impact and ethical marketing.

In simple words:
The scope covers everything from mission-setting to performance
evaluation, with a market and customer orientation at every step.

Corporate and Division Planning & SBUs

1. Corporate Planning
Corporate planning refers to the overall strategic planning done by the top
management for the entire organization.
Key Steps in Corporate Planning:
● Define the corporate mission (purpose and values of the company).
● Establish strategic business units (SBUs).
● Assign resources among SBUs based on market attractiveness and
business strength.
● Plan growth strategies using tools like the Ansoff Matrix (market
penetration, market development, etc.).
● Manage the business portfolio by evaluating SBUs using models like the
BCG Matrix.
Example: Tata Group planning strategies for Tata Motors, Tata Steel, Tata
Consultancy Services separately.

2. Division Planning
When a large corporation is divided into several divisions (based on product
lines, markets, or regions), each division prepares its own strategic plan in line
with the overall corporate mission.
Key Points:
● Divisions have more autonomy but work under corporate guidelines.
● Divisions analyze their markets, set objectives, formulate strategies, and
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allocate budgets.
● Divisional heads are responsible for performance and reporting to
corporate management.
Example: Hindustan Unilever has divisions for beauty, food, cleaning products
— each with its own plan.

3. Strategic Business Units (SBUs)

An SBU is a separate, semi-independent business within a large company,
responsible for its own strategy and profitability.
Features of SBUs:
● Has its own mission, objectives, and competitors.
● Managed independently, but within the corporate structure.
● Performance is measured separately (profit/loss, market share, growth
rate).
● Resources are allocated to SBUs based on their potential and
performance.
Typical Structure of an SBU:
● A single product or product line.
● A specific target market.
● A separate team for operations, marketing, and finance.
Advantages of SBUs:
● Focused strategy and faster decision-making.
● Accountability for performance.
● Easier resource allocation and performance evaluation.
Example: Samsung's Mobile Division, Electronics Division, and Semiconductor
Division — each acts as an SBU.

Quick Diagram You Can Draw in Exam:

Corporate Level
↓
Divisions (based on products/markets)
↓
Strategic Business Units (SBUs)
↓
Products/Services
Very Short Summary for Last-Minute Revision:
● Corporate Planning = Whole company strategic planning.
● Division Planning = Planning by different divisions under corporate
supervision.
● SBU = Mini-business units within a company with their own strategies
and goals.

Business Strategic Planning

Business Strategic Planning is the process by which a company defines its
long-term goals, analyzes its environment, and develops strategies to
compete effectively and achieve sustainable growth.
It focuses on individual business units or specific product lines, not just the
overall corporation.

Key Steps in Business Strategic Planning:

. Business Mission
○ Clear statement of what the business aims to achieve for its
customers.
○ Example: "To provide innovative and affordable healthcare
solutions."
. External Environment Analysis
○ Study of market trends, customer needs, competitors, technology,
economic forces (PESTLE Analysis, Porter’s Five Forces).
○ Purpose: Identify opportunities and threats.
. Internal Environment Analysis
○ Assessment of the company’s resources, capabilities, and
weaknesses (SWOT Analysis).
○ Purpose: Identify strengths to leverage and weaknesses to
improve.
. Goal Formulation
○ Setting measurable objectives (e.g., increase market share by 10%,
launch 3 new products in a year).
○ Goals must be SMART (Specific, Measurable, Achievable, Relevant,
Time-bound).
. Strategy Formulation
○ Choosing how to achieve the goals:
◆ Cost Leadership (low-cost products)
◆ Differentiation (unique products)
 ◆ Focus Strategy (serving a specific niche)
. Program Formulation
○ Developing specific marketing, operations, finance, and HR
programs to support the strategy.
○ Example: New advertising campaign, R&D investment.
. Implementation
○ Executing the chosen strategies through proper leadership,
structure, and resource allocation.
. Feedback and Control
○ Monitoring results, comparing them with objectives, and making
adjustments if necessary.

Simple Diagram for Your Answer:

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Mission → Environmental Analysis → Goal Setting → Strategy Formulation →
Program Formulation → Implementation → Feedback & Control

Very Short Exam Notes:

● Business Strategic Planning = Planning for individual businesses/units
inside a company.
● Focus = Long-term survival and success through smart goal setting
and competitive strategies.

The Marketing Process

The Marketing Process refers to the steps that companies follow to create
value for customers and build strong customer relationships in order to
capture value in return.

Steps in the Marketing Process:

. Understanding the Marketplace and Customer Needs
○ Research customer wants, needs, and demands.
○ Study the marketplace, competitors, and external environment
(using market research, PESTLE analysis, etc.).
○ Identify how customer needs are changing.
. Designing a Customer-Driven Marketing Strategy
○ Decide who to serve (market segmentation and targeting).
○ Decide how to serve them better (differentiation and positioning).
 ○ Create a Value Proposition — why customers should choose you
over competitors.
. Constructing an Integrated Marketing Program
○ Develop the Marketing Mix (4Ps):
◆ Product: Create value.
◆ Price: Capture value.
◆ Place: Deliver value.
◆ Promotion: Communicate value.
○ All marketing activities should work together seamlessly to deliver
value.
. Building Strong Customer Relationships
○ Focus on Customer Relationship Management (CRM).
○ Deliver superior customer experiences to create loyalty and
satisfaction.
○ Use relationship-building tools: social media, loyalty programs,
customer service.
. Capturing Value from Customers
○ Create customer loyalty, retention, and brand advocacy.
○ Increase customer lifetime value.
○ Capture profits, market share, and long-term business growth.

Simple Diagram for Quick Revision:

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1. Understand customers →
2. Design marketing strategy →
3. Build marketing program →
4. Build customer relationships →
5. Capture value

Super Short Version for Quick Memorization:

● Understand needs
● Build a customer-driven strategy
● Deliver value through the marketing mix
● Build customer relationships
● Capture customer value (profits and loyalty)
Marketing Plan
A Marketing Plan is a written document that outlines a company’s marketing
objectives, strategies, and the actions it will take to achieve them within a
specific time frame.
It acts as a roadmap for marketing activities and ensures that all efforts are
focused and coordinated to meet business goals.

Key Elements of a Marketing Plan:

. Executive Summary
○ A brief overview of the main goals and recommendations of the
plan.
. Current Market Situation
○ Analysis of the market, customer segments, competitors, and
company’s current position (SWOT analysis, PESTLE analysis).
. Marketing Objectives
○ Specific goals the marketing plan aims to achieve.
○ Example: "Increase market share by 15% within one year."
. Marketing Strategy
○ Target market selection and value proposition.
○ Positioning and differentiation strategies.
. Marketing Mix (4Ps Strategy)
○ Product: What to offer to meet customer needs.
○ Price: Pricing strategy to attract and retain customers.
○ Place: Distribution channels to deliver the product.
○ Promotion: Advertising, sales promotions, PR, digital marketing.
. Action Programs
○ Specific activities, timelines, responsibilities, and budgets.
○ Example: Launch a digital ad campaign in Q1; expand distribution
network by Q2.
. Budgets
○ Financial projections: Costs of marketing activities and expected
returns.
. Controls
○ Monitoring and evaluation methods.
○ How success will be measured (KPIs like sales volume, market
share, brand awareness).

Simple Diagram for Quick Revision:

Executive Summary → Market Analysis → Objectives → Strategy →
4Ps → Action Plan → Budget → Controls

Very Short Exam Note:

● A Marketing Plan is a structured blueprint that guides marketing efforts
by defining goals, strategies, programs, budgets, and evaluation
methods.

Sample Mini Marketing Plan Format

1. Executive Summary
● Briefly introduce the product/service.
● Summarize main goals (e.g., "Increase brand awareness and sales by
20% in 6 months.")

2. Current Market Situation

● Target Market: Describe the customer segment.
● Competitors: Major competitors and their position.
● Company Position: Current strengths and weaknesses.

3. Marketing Objectives
● SMART goals:
○ Example 1: "Achieve 15% market share in urban markets within 1
year."
○ Example 2: "Launch new product line by Q3."

4. Marketing Strategy
● Target Market: Who are we targeting?
● Positioning: How we want customers to perceive the brand.
● Value Proposition: What unique value we are offering.

5. Marketing Mix (4Ps)

● Product: Key features, new product launches, upgrades.
● Price: Pricing strategy (penetration, skimming, competitive).
● Place: Distribution channels (online, retail, wholesales).
● Promotion: Advertising, social media, public relations, influencer
marketing.
6. Action Programs
Activity Timeline Responsible
Team
Launch TV June-July Marketing Team
campaign
Digital ads on Ongoing Digital Team
Instagram
New retail August Sales Team
partnerships
7. Budget
● Total Marketing Budget: ₹X lakhs
● Breakup (e.g., Advertising – 50%, Digital – 30%, Events – 20%).

8. Control and Evaluation

● Monthly sales tracking.
● Monitor social media engagement and customer feedback.
● Adjust strategies if targets are not being met.

Quick Tip for Exam:

If they give you a case study or ask you to "draft a basic marketing plan,"
→ Use these 8 points as headings and add 2–3 lines under each.