,Lecture 4: Marketing Strategy and Planning Lecture Objectives,Planning - role/questions/processes? Strategy - components and measurement,The process by which businesses analyse the environment and their capabilities, decide upon courses of marketing action, and implement those decisions Is part of strategic planning,Marketing planning,Why plan? A typical planning framework Where are we now? How did we get there? Where are we heading? Where would we like to be? How did we get there? Are we on course?,2,Re-definition,The marketing planning process,Marketing planning at the business level,Marketing planning at the product level,3,Re-definition,Planning at the business level,Strategic thrust,Strategic objectives,4,Planning at the product level,Core strategy,Marketing mix decisions,Organization and implementation,Control,Target markets,Competitive advantage,Competitor targets,The Ashridge Mission Model,5,Purpose (Why the company exists),Company values (What senior management believes in),Standards and behaviours (The policies and behaviour patterns that guide How the company operates,Strategy (The commercial rationale),Microenvironment,The market,External marketing audit checklist,Competition,Microenvironment Economic: inflation, interest rates, unemployment Social/cultural: age distribution, lifestyle changes, values, attitudes Technological: new product and process technologies, materials Political/legal: monopoly control, new laws, regulations Ecological: conservation, pollution, energy,The market Market size, growth rates, trends and developments Customers, who are they, their choice criteria, how, when, where do they buy, how do they rate us vs. the competition on product, promotion, price, distribution Market segmentation: how do customers group, what benefits do each group seek Distribution: power changes, channel attractiveness, growth potentials, physical distribution methods, decision makers and influencers,Competition Who are the major competitors What are their objectives and strategies What are their strengths and weaknesses Market shares and size of competitors Profitability analysis Entry barriers,6,Internal marketing audit checklist,Marketing Structures,Marketing Systems,Marketing Mix Effectiveness,Operating Results (by product, customer, geographic region,Strategic Issues Analysis,Marketing Mix Effectiveness Product Price Promotion Distribution,Marketing Structures Marketing organisation Marketing training Intra- and interdepartmental communication,Marketing Systems Marketing information system Marketing planning system Marketing control system,7,SWOT analysis,9,Jaguar,An important part of marketing planning is the target marketing. Here Jaguar target the wealthy young and young at heart,10,Strategic thrust: the generic options,Products,Markets,Existing,New/Related,New/Related,Existing,11,Testing core strategy,Clearly defines target customers and their needs,Resource and managerially supportable,Internally consistent,Derived to achieve product market objectives,Creates a competitive advantage,Incurs acceptable risk,Core strategy,Does the process of marketing planning answer the key questions?,The rewards Consistency Encourages monitoring of change A adaptable/flexible organisation Stimulates achievement Resource allocation Competitive advantage,Problems Political Opportunity cost Reward systems /short termism Lack/quality of Information Culture Personalities Lack of knowledge of skills,