Unit – 02

Strategic Marketing Plan

Planning
 Planning begins with an analysis of external environment
and internal resources and ends with formulation of goals
and detailed plans of achieving these goals.
Koontz & Donnell defines
What
to do?

Who is Strategic How to

to do
Planning do it?
it?

When
to do
it?
Features of planning
 Purposeful
 Primary
 Pervasive
 Forward looking
 Intellectual process
 Continuity
 Integrated process
 Choice
Key drivers of market planning
 Competition
 Economic growth & stability
 Political trends
 Legal & regulatory issues
 Technological advancements
 Socio-cultural trends
Marketing strategy formulation
 Segmenting
 Targeting
 Positioning
 Assembling the marketing mix
Value delivery process
a) Traditional physical process sequence

Make the product Sell the product

Distribute
Advertise
Design

Procure

Service
Make

Price

Sell
Value delivery process
a) Value creation and delivery sequence

Choose the Communicate the

Provide the value
value value
Segmentation

development
development
positioning

Distribute
Sourcing
Product
Focus

Service

Service
Pricing
Value

Sell

Sell
Sell
Strategic
Tactical Marketing
Marketing
Marketing orientation and
customer value
 Core competencies
 Value exploration
 Value creation
 Value delivery
 Intensive growth
 Integrative growth
 Diversification growth
 Downsizing
Importance of market planning
 Avoiding future uncertainties
 MBO
 Achieving objectives
 Coordination and communication among departments
 Control
 Getting full satisfaction
Corporate planning process
 Establishing corporate Mission, Vision, Objectives, Goals
 Establishing SBUs
 Assigning resources to each SBUs
 Planning for business growth
Industrial Marketing
Definition
 Business marketing may be defined as the marketing of
products, services and solutions to organisations such as
big enterprises, government departments, & other
institutions.
Characteristics of Industrial
marketing
 Demand
 Market
 Product
 Price
 Place or distribution
 Promotion
 Behavior
Consumer Marketing
Definition
 Consumer marketing targets all the individuals and
households who buy or acquire goods and services for
personal consumption.
Characteristics of consumer
marketing
 Requires less capital and window dressing to attract
 Sell goods directly and maintain personal contact
 Key aspect is attitude of mind, making decisions, consider
needs
 How to satisfy
 Address specific needs
 Stimulating, quick-packed, & influential.
Differences b/w consumer and
customer
S.No Customer Consumer

1 Customer is the person who use the Consumer is the person he or she who
product or for the selling purpose to use for their personal consumption.
others.

2 Customer may be consumer. Consumer may not be the customer.

3 Customer who purchase the product or Consumer who consumes the product
services. or services.

4 Customer is the person who buys the Consumer is final user.

product regularly.
Services in Marketing
Definition
 A service is any act or performance that one party can
offer to another that is essentially intangible and does not
result in the ownership of anything.
- Philip Kotler
Service sector
 Traditional services:
1. Utilities – electricity, water, gas etc..
2. Transport – rail, road, air, water
3. Communication – post, telephone, broadcasting etc..
4. Entertainment – cinemas, clubs, amusement parks etc..
5. Education
6. Legal
7. Banking
8. Health, family welfare
9. Distributive trade – wholesale, retailers, dealers, agents
etc….
Service sector
 Modern services:
1. Travel agency
2. Advertising
3. Public relation
4. Market research
5. Courier service
6. Health clubs
Latest and New Gservices
 Business
 Recruitment
 Computer
 E-commerce
 Internet
 Fax
 Consultancy
Characteristics of services
 Intangibility
 Inseparability
 Heterogeneity
 Perish ability
 Ownership
Service quality
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibles
Competitors Analysis
Porter’s five forces model
Risk of entry
by potential
competitors

Intensity of
Bargaining Rivalry Bargaining
power of among power of
suppliers established buyers
firms

Threat of
substitutes
Rivalry inside the Industry
 Exit barriers
 Industry concentration
 Fixed cost
 Industry growth
 Intermittent over-capacity
 Product differences
 Switching cost
 Brand identity
 Diversity of rivals
 Corporate stakes
Bargaining power of supplier
 Supplier concentration
 Volume of supplier
 Differentiation of inputs
 Impact of inputs on cost or differentiation
 Switching costs of firms in the industry
 Substitute inputs
 Threat of forward integration
 Cost relative to total purchases in industry
Threat of substitutes
 Switching costs
 Buyer inclination to substitute
 Price-performance trade-off
Bargaining power of buyers
 Bargaining leverage
 Buyer volume
 Information
 Brand identity
 Price sensitivity
 Threat of backward integration
 Product differentiation
 Buyer’s incentives
Threat of new entrants
 Absolute cost advantage
 Proprietary learning curve
 Access to inputs
 Government policy
 Economies of scale
 Capital requirements
Marketing Mix
Definition
 The set of controllable tactical marketing tools – product,
price, place and promotion.
 The firm blends to produce the response it wants in the
target market.
Marketing mix
 First coined by Neil H. Borden it is a mix of ingredients.
 Ingredients are product, planning, pricing, branding,
distribution channels, personal selling, advertising,
promotions, packaging, display, servicing, physical
handling, and fact and analysis.