Module 4:
Market Opportunity and
Consumer Analysis
Prepared by: Joan Joy A. De Vera. LPT, MBM (CAR)
Developing and Implementing
Marketing Strategies
STRATEGIC PLANNING IN MARKETING
According to Kotler (2011), strategic planning "sets the stage for the rest
of planning in the firm." That is, companies must be able "to develop
and maintain a strategic fit between its goals and capabilities and its
changing market opportunities."
STRATEGIC PLANNING PROCESS
The company must first define its mission as a business. This gives meaning to
what it is supposed to do over a period of time. The following are some
examples.
Company Mission Statement
Jollibee To serve great-tasting food, bringing joy of eating to everyone.
Unilever To grow our business, while decoupling our environmental footprint from our growth, and
increasing our positive social impact.
Smart Telecommunication Empower Filipinos everywhere with customer-focused digital innovations that unlock and share
their infinite potential.
Meralco To provide our customers the best value in energy products and services.
Then, the company needs to set its overall company
objectives at the corporate level, which are then translated
into the respective departments' objectives and goals.
For like example, if a company has an objective of pursuing
market expansion, the marketing department may decide to
pursue market penetration and/or increase market shares.
THE STRATEGIC MARKETING PROCESS
After the strategic planning of an organization where it assesses
its strategic direction, the next step is for the various
departments to implement their plans. The marketing
department will proceed with resource allocation, interpretation
of the strategic plan into specific actions, and the analysis of the
projected plan.
To accomplish these tasks, the organization can use the
strategic marketing process by organization allocates its
marketing mix resources to reach its target markets. The
planning process is a marketing plan.
THE PLANNING PHASE OF THE STRATEGIC
MARKETING PROCESS
Do you have any idea what SWOT
Analysis stands for?
SITUATION (SWOT) ANALYSIS
SWOT analysis is used to identify a company’s strengths,
weaknesses, opportunities, and threats. The primary objective
of the process is to help organizations develop a full
awareness of all the factors, positive and negative, that may
affect strategic planning and decision-making.
The SWOT analysis is an excellent tool for organizing information,
presenting solutions, identifying roadblocks, and emphasizing
opportunities. The main purpose of the SWOT analysis is to add value
to a company's products and services so that new customers can be
recruited, loyal customers can be retained, and products and services
can be extended to customer segments over the long term.
According to Kotler (2013), strengths include internal capabilities,
resources, and all positive situational factors that may help the
company serve its customers and achieve its objectives. Weaknesses
include internal limitations and negative situational factors that may
interfere with the company's performance. Opportunities are
favorable factors or trends in the external environment that the
company may be able to exploit to its advantage, and threats are
unfavorable external factors or trends that may present challenges to
performance.
Class, what do you think is the
difference of Strategic Planning and
Tactical Planning?
Strategic planning is concerned with determining the
direction of business growth in relation to the
competition and the company's own market position.
Tactical planning, meanwhile. consists of planning
the actual activities that will improve the company's
competitive position.
TACTICAL MARKETING
The term tactical marketing refers to actions the company takes in order to market a
product. This includes the various ways a company places and offers its product to its
target customers, such as:
1) repackaging a product;
2) changing the pricing scheme,
3) increasing the number of distribution partners like retailers and wholesalers;
4) placing advertisements such as online. radio, television and print marketing, sales
promotions. and events;
5) building websites and creating brochures and other mailings; and
6) implementing a follow-up system.
Always remember class that implementing tactical marketing
requires the preparation of a budget which will cover the
costs of advertising and sales promotions.
The Marketing Environment
SCANNING THE MARKETING ENVIRONMENT
Change is inevitable. The greatest challenge for a business is adapting to
the complex and unpredictable changes in the environment within which
it operates.
Changes may be the result of social, political, or economic
crises or new trends in lifestyle. Technology can also trigger
change in the market.
For instance, the introduction of downloadable content from
the Internet such as music and movies had an impact on the
music and movie industries. These industries, in turn, have to
adopt new marketing strategies to address the challenges and
opportunities brought about by new technology.
According to Kotler (2013), the marketing
environment consists of the microenvironment and
macroenvironment.
THE MICROENVIRONMENT
The microenvironment refers to the forces closely influencing the
company and directly affecting the organization's relationships.
Microenvironmental forces can sometimes be controlled and influenced
by the marketer.
THE COMPANY:
Customers
Suppliers
Publics
Marketing
intermediaries
Competitors
THE COMPANY
• Marketing decisions about the company's product offering
and pricing, where to sell its products, and how these will be
communicated to its target customers require resources like
cash, materials, and skilled people, among others.
Below are some examples of strengths and weaknesses of a company.
Strengths Weaknesses
Accounting Real-time account balance High bad debts,
uncollectible accounts
Finance High return on investments High interest payable
Sales Increasing customer base Decreasing sales revenue
Marketing Strong brand name Lack of innovations in
Strong positioning product offers
Production Efficient production process Lack of skilled workers
High inventory turnover High production cost
Human Resource Effective training programs High employee turnover
High employee morale Weak performance
management system
I.T Top-of-line equipment Lack of expertise
Logistics Fast and efficient delivery High volume of breakage
Low transportation cost and pilferage of goods to be
delivered.
The operations of all departments within an organization can
positively or negatively impact customer satisfaction.
Departments cannot work in isolation. They are interrelated
and should work closely with other departments in the
company. Their actions have an impact on the plans and
actions of the marketing department. Therefore, building
relationships with other departments is necessary to create an
effective value delivery network.
Customer satisfaction should be the primary concern of all
the departments of the company. It must uphold customer
satisfaction in its planning and operations.
SUPPLIERS
In delivering value and satisfaction to customers, the
company relies on external business partners called suppliers
who are either individuals or companies that provide the
necessary resources to produce goods and services.
MARKETING INTERMEDIARIES
• Marketing intermediaries help the company promote, sell, and
distribute its products to the final buyers. These intermediaries are an
important component of the company’s overall delivery of customer
value.
Marketing Intermediaries includes:
Reseller
• They hold and sell the company’s products
• Wholesaler and Retailer
Physical Distribution Firm/Logistics Firm
• They help the company stock and move goods from a warehouse to the final place of selling
or other destinations.
Advertising/Marketing Services Agencies
• Help in targeting (through marketing research companies) and promoting products (through
advertising agencies)
Financial Intermediaries
• Help in financial transactions
• Banks, insurance companies, lending institutions
COMPETITORS
• Marketers conduct a competitive analysis by identifying competitors
and analyzing the values and benefits of their products. However,
marketers should understand that competition is good because they
make the company alert and Innovative. On the other hand, they
must be prepared to meet the challenges and threats of competition.
PUBLICS
• According to Kotler (2013). a public any group that has an
actual or potential Interest in or impact on an organization's
ability to achieve its objectives.
CUSTOMERS are a vital factor in the company’s
microenvironment. They are the actual buyers of goods and
services. It is the aim of companies to serve their target and
create a positive relationship with them.
THE MACROENVIRONMENT
• The macroenvironment consists of external forces that have
a significant influence on marketing strategy. The external
forces in the macroenvironment cannot be controlled;
therefore, companies should learn to adapt to these forces.
One framework in conducting environmental scanning is the
PESTLE Analysis, which identifies the external forces and
determines opportunities and threats that arise from them.
These major external forces are political, economic, social,
technological, legal, and environmental.
ANY QUESTIONS CLASS?