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Chapter: 02
Developing Marketing Strategies and Plans
Md. Rakibul Hassan, Assistant Professor
Department of Marketing, Jahangirnagar University
Learning Outcomes
How does marketing affect customer value?
Concept of Marketing plan and strategic marketing planning
How is strategic planning carried out at the corporate and divisional
levels?
How is strategic planning carried out at the business unit level?
What does a marketing plan include?
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Marketing and Customer Value
The value chain is a tool
for identifying ways to
create more customer
value because every
firm is a synthesis of
primary and support
activities performed to
design, produce, market,
deliver, and support its
product.
Figure: The Value chain
What is a Marketing Plan and strategic planning?
A marketing plan is the central instrument for directing and coordinating the
marketing effort. It operates at a strategic and tactical level.
In a hyper competitive marketplace, companies can operate successfully by
creating and delivering superior value to target customers and also learning
how to adapt to a continuously changing market place. So to meet changing
conditions in their industries, companies need to be farsighted and visionary,
and must develop long-term strategies.
Strategic planning involves developing a strategy to meet competition and
ensure long-term survival and growth. The marketing function plays an
important role in this process and it provides information and other inputs to
help in the preparation of the organization's strategic plan.
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Corporate and Division Strategic Planning
Whether they let their business units set their own goals and strategies or collaborate
in doing so, all corporate headquarters undertake four planning activities:
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to each SBU
Assess growth opportunities
Defining the Corporate Mission
To define its mission, a company should address Peter Drucker’s classic questions: What
is our business? Who is the customer? What is of value to the customer? What will our
business be? What should our business be? These simple-sounding questions are among
the most difficult a company will ever have to answer. Successful companies
continuously raise and answer them.
Focus on a limited number of goals
Stress major policies and values
Define major competitive spheres
Take a long-term view
Short, memorable, meaningful
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Establishing Strategic Business Units
A strategic business unit, popularly known as SBU, is a
fully-functional unit of a business that has its own vision
and direction. Typically, a strategic business unit
operates as a separate unit, but it is also an important
part of the company. Large companies normally
manage quite different businesses, each requiring its
own strategy.
It is a single business, or a collection of related
businesses, that can be planned separately from
the rest of the company.
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 profit. Figure: SBU Example of Pran-RFL
Assigning Resources to Each SBU
The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help
with long-term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products.
Stars (high share and high growth)
Cash Cows (high share, low growth)
Dogs (low share, low growth)
Question mark / Problem Child (low
share, high growth)
Figure: BCG Matrix
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Assessing Growth Opportunities
The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by
firms to analyze and plan their strategies for growth. The matrix shows four strategies
that can be used to help a firm grow and also analyzes the risk associated with each
strategy.
Market Penetration
Product Development
Market Development
Diversification
Related Diversification
Unrelated Diversification
Figure: Product-Market Expansion Grid
Business Unit Strategic Planning
Figure: The Business Unit Strategic-Planning Process
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The Nature and Contents of a Marketing Plan
1. Executive Summary & Table of Contents
Brief statement of goals and recommendations based on hard data.
2. Current Marketing Situation
Market Situation: Data on target market, size and growth for past years and each segment.
Data on customer needs, perceptions, and buying behavior trends.
Product Situation: Sales, prices, contribution margins and net profits for each major product
line in the past several years.
Competitive Situation: Major competitors described in terms of their size, goals, market
share, product quality, marketing strategies.
Distribution Situation: Information on size and importance of each distribution channel.
Macro-environment Situation: Describes broad macro-environment trends – demographic,
economic, technological, political/legal, socio/cultural, that bear on a product’s future.
3. Opportunity and Issue Analysis
SWOT analysis
Issue analysis: Use SWOT to define the main issues plan must address
The Nature and Contents of a Marketing Plan
4. Objectives
Defines the plan’s financial and marketing goals in terms of sales volume, market share
and profit.
5. Marketing Strategy (game plan)
Broad marketing approach that will be used to achieve goals.
Target market Sales Force
Positioning Advertising
Product and Services Sales Promotions
Price Research and Development
Distribution Outlets Marketing Research
6. Action Programs
Special marketing programs designed to achieve objectives, i.e., winning the loyalty of
existing customers
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The Nature and Contents of a Marketing Plan
7. Projected P&L
8. Controls
How will program be monitored?
Revenue: monthly and annual
Expenses: monthly and annual
Customer satisfaction
New-product development
Projected Profit
Thank You All.........