Republic of the Philippines

Department of Education SHS

Region V
Division of Sorsogon
PRINCIPLES OF MARKETING
Quarter 3, LAS 4, Week 4
Strategic and Marketing Planning
Name of Student: __________________________________________________
Learning Area-Grade Level: ________________________________________
Date: _________________________________________

I. Introductory Concept
A marketing plan is a tool that allows us to set a path to arrive to a concrete place. It will be very
difficult to devise if we do not know where we are and where do we want to go.

In this Learning Activity Sheet we would learn how to take into account: Where is the company?
Where is it going if the internal and external situation does not change? Where do we want to go? How do
we get there?

II. Learning Competencies

Distinguish between strategic and marketing planning in terms of objectives and processes
ABM_PM11-Iei-9

After going through this Learning Activity Sheet, you are expected to:
 Define Strategic and Marketing Planning
 Distinguish between strategic and tactical marketing process in terms of objectives and processes
 Discuss how strategic marketing and tactical marketing are implemented.

III. Activities

A. LET US REVIEW
Exercise 1. Direction: Analyze and answer the question briefly. Write your answer on extra sheet of paper.
1. Discuss the concept of customer value and its importance to successful marketing. How are the
concept of customer value and relationship marketing linked?
2. What are the different ways to provide good customer service?

B. LET US STUDY
Marketing Plan vs. Marketing Strategy
Although the two terms are often used interchangeably, your marketing plan and marketing strategy are two
separate elements of your business. Your marketing strategy is what you need to achieve with your marketing efforts,
and it's shaped by and should reflect your business goals. Your marketing plan is how you are going to achieve those
marketing goals, and it's the practical implementation of your marketing strategy. Both a marketing strategy and a
marketing plan are necessary because they work together to promote and grow your business.

What's the Difference?

Marketing Strategy Marketing Plan
The "why" behind your marketing efforts. The roadmap or plan for executing your strategy.
Its purpose is to describe how your marketing goals Its purpose is to lay out your marketing campaign efforts
will help you achieve your business goals. on a tactical level.
It outlines what offering you will deliver, who you It outlines what you will do, how and where you will do it,
will deliver it to, how you will deliver it, and who when you will implement, and how you will track success.
your competitors are.
Your marketing strategy helps you make the most of Your marketing plan supports your strategy and is the
your investment, keep your marketing focused, and action plan that you'll use to implement your marketing
measure your sales results. efforts.
Strategic Marketing Process
Situation Analysis Objective Setting
Mission Identification
 Strategy Evaluation and control Marketing Strategy Development

Step 1: Mission
Identification
The company’s mission statement is articulated. A mission statement defines what an organization is, why it exists, its
reason for being, its primary customers, and the products and services it produces, and its geographical area of
operation.
For example, an international consumer goods company’s mission statement is “to provide branded products
and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will
reward us with industry leadership in sales, profit, and value creation, allowing our people, shareholders, and the
communities in which we live and work to prosper.”
Step 2: Situation analysis
This step assesses and evaluates the market, customers, competitors, and the company’s internal and external
environment. The objective is to identify the company’s strengths and weaknesses, as well as the available
opportunities and possible threats.
Step 3: Objective setting
Objectives are marketing targets that are specific, Measurable, Attainable, Realistic, and Time-bound (SMART).
These enable a company to control its marketing plan and provide a consistent focus all functions of an organization.
These objectives include sales revenues, market share, and profits. They are used as basis for strategy selection and
development.
Step 4: Marketing strategy development
The development of a marketing strategy involves market segmentation, identification of target market, positioning,
selection of broad marketing strategies, and the translation of strategies into action plans.
Strategy can be broadly classified into three categories. These are cost leadership, differentiation, and focused.
(Authors’ note: Examples are hypothetical and for academic purposes only.)
Cost Leadership
This is a strategy primarily for achieving low cost leadership among industry competitors.
Cost leadership can be achieved through low cost supply contracts, overhead expense control, economics of
scale, and comprehensive cost-cutting efforts, among others.
Example: While 16” desk fans ordinarily retail for P 1,000.00, a local appliance brand is able to market the
same at 635.00 through mass production.
Differentiation
Differentiation seeks to achieve superior product attributes and features that are different from industry
competitors. This results in pronounced consumer preferences for the company’s products.
Example: A mobile phone brand introduces its version of the smartphone that does not have a keyboard but is
activated and controlled by thought.
Focused
Efforts are concentrated on a relatively small but profitable market. The development of products and services
primarily ensures that the needs and want of this addressed and that satisfaction is provided.
Example: A convenience store that concentrates on the very high-end niche market by converting its
operations into convenience stores with superior customer service, selling purely imported and high quality
products and gourmet food prepared by resident chefs.
Cost leadership, differentiation, and focused strategies may be implemented through the following sub-
categories of strategies:
1. Forward integration- This involves gaining ownership or increased control over distributors or retailers.
Example: A known newspaper company buying 418 newspaper stands in Metro Manila
2. Backward integration-This involves gaining ownership or increased control over suppliers.
Example: A consumer goods company in the Philippines purchasing a cow farm and dairy facility in General
Santos City
3. Horizontal integration-This involves purchase of or increased control over competitors.
Example: A pizza company buying a controlling interest in another pizza company
4. Market penetration-The objective of this strategy is to increase market share of current products or services in
current markets through greater and more intensive marketing efforts.
Example: A doughnut company launching a P 56 million advertising campaign directed at current customers
5. Market development-This strategy involves the introduction of existing products or services into a new
geographical area or market.
Example: A private learning institution opening a campus in Cebu City
6. Product development-This strategy involves the improvement of current products or services or the development
of new products with the purpose of increasing sales.
Example: A company on carbonated beverages introducing its product line in tetra pack
7. Related diversification-This involves introducing new but related products or services.
Example: Battery manufacturers introducing solar powered automotive batteries
8. Unrelated diversification-This involves introducing new but unrelated products or services.
Example: A bank opening a chain of ice cream parlors
9. Retrenchment-This involves halting or reversing declining sales and profits through cost or asset reduction.
Example: A shopping mall selling off its hardware department and laying off 847 of its department store
employees
10. Divestiture-This involves selling a division or part of an organization.
Example: A conglomerate selling an airline
11. Liquidation-This involves selling all of a company’s assets, in parts or as a whole, for their tangible worth.
Example: A prime holdings company selling all its companies.

Step 5: Strategy Evaluation and Control

After the strategy is developed, periodic monitoring and evaluation are needed. This is necessary to identify deviations
and necessary adjustments and corrections.

The Tactical Marketing Process

Completing the strategic marketing process, the tactical marketing process determines the means or tactics to
implement the strategies. It involves the identification of specific activities, timetables, responsibilities, and budgets
and their implementation. The objective is to ensure that the strategies are implemented
successfully Activity Time
tables
Action Marketing
Marketing Strategies
Plans/Tactics Strategies

Monitoring and Control Activity/Budgets Responsibility/Accountability

For example, a company determines to increase sales by 10% by the end of the calendar year. After careful
consideration, it selects market penetration as its strategy. The current task is to identify the tactics, or activities that it
should undertake to ensure that the strategy will be successful. The firm may decide to increase selling prices. It may
opt to do intensive promotions, or it may invest in heavy product advertising.
Once the tactics and activities are identified, they are developed into an action plan. An action plan is a
sequential series of marketing activities. It includes timetables for each activity, pinpointed responsibilities or
accountability for each, and the corresponding budgets. Oftentimes, it is necessary to utilize two or more action plans
to ensure successful implementation. These are monitored regularly to ensure effectiveness.

C. LET US PRACTICE
Exercise 2. Read each statement below carefully. Write TRUE on the line if you think a statement it True. Write
FALSE on the line if you think the statement is False.
_______1. Planning, implementation, and control are basic jobs of all managers.
_______2. Controlling the marketing plan is the first step of the marketing management process.
_______3. Strategic planning is a top management job that includes planning only for marketing.
_______4. Marketing strategy planning is the process of deciding how best to sell the products the firm produces.
_______5. A target market consists of a group of consumers who are usually quite different.

D. LET US REMEMBER
 Strategic Marketing is a carefully through-out course of action made for the purpose of achieving
desired results such as profitability and high productivity.
 Tactical Marketing consist of the activities needed to implement an organization’s business strategy.

E. LET US APPRECIATE
Exercise 3. Directions: Analyze and answer the question briefly. Write your answer on extra sheet of paper.
1. How do strategic marketing and tactical Marketing complement each other in achieving company goals and
objectives?
2. How are strategic marketing and tactical Marketing different in terms of achievement of objectives?
3. As a marketer, which of the two should be given more emphasis, strategies or tactics? Why?
 F. EVALUATION
Exercise 4. I can do this!
Think of a particular product or service that you would like to offer in your barangay. Use a strategy and
some specific tactics to attract your customers while considering the pandemic situation.

IV. Rubrics For Scoring: for Exercises 1, 3, & 4

4 3 2 1 score

Strong main idea Adequate main idea Weakly stated main Unclear main idea
Main Topic restated in the restated in the idea weakly restated not restated in
closing sentence closing sentence in closing sentence closing sentence
Three or more Two supporting One supporting No supporting
Supporting supporting sentences sentences per sentence per sentences
Sentences per paragraph paragraph paragraph
Few, if any, errors Several errors that Many errors that Many errors that
Grammar do not interfere interfere with make it illegible
with meaning meaning

V. Answer Key
Exercise 1, 3 & 4- Students’ response will vary.
Exercise 2.
1. TRUE
2. FALSE- Controlling marketing plans is the final step of the marketing management process. It
involves measuring results and evaluating progress of plans after they have been devised and
implemented.
3. FALSE- Strategic planning includes planning not only for marketing but also for production,
finance, human resources, and other areas.
4. FALSE- Marketing strategy planning means finding attractive opportunities and developing
profitable marketing strategies.
5. FALSE- A target market consists of a fairly homogeneous group of customers.

VI. References

BEH2HL, QTPGY0. "Marketing Strategy Planning True / False Questions." academia.edu. 2015.
https://www.academia.edu/36626416/Marketing_Strategy_Planning_True_False_Questions (accessed September 1, 2021).

Lake, Laura. "Small Business." the balances mb. October 7, 2019. https://www.thebalancesmb.com/marketing-strategy-vs-marketing-plan-
2295740 (accessed August 31, 2021).

Real C. So, Oscar G. Torres. "Market Opportunity Analysis and Consumer Analysis." In Principles of marketing Textbook, by Oscar G. Torres
Real C. So, 27-30. Quezon City: Vibal Group, Inc., 2016.

Real C. So, Oscar G. Torres. "Strategic and Tactical Marketing Process and the Marketing Environment." In Principles of Marketing Teacher's
Manual, by Oscar G. Torres Real C. So, 20-25. Quezon City: Vibal Group, Inc., 2016.

Team, The Laire. "Marketing." Laire Digital. June 30, 2020. https://www.lairedigital.com/blog/marketing-plan-vs-marketing-strategy (accessed
August 31, 2021).

Zarate, Cynthia A. "Strategic and Tactical Marketing." In Principles of Marketing, by Cynthia A. Zarate, 58. Quezon City: C&E Publishing,
Inc., 2017.

Golden, Shelby. Study.com. 2021. https://study.com/academy/popular/paragraph-writing-rubrics.html (accessed august 23, 2021).

Prepared by: Validated by:

JOCIL MERALPES NAVARRETE DAISY G. ERESTAIN

Gallanosa National High School Casiguran Technical Vocational School

JESSICA B. LIM
Bulan National High School