STRATEGIC MARKETING Managing Marketing

BF3316 PLANNING Activities

PRINCIPLES OF
Specifying the market-oriented
Situation Analysis
mission

MARKETING
Developing measurable
Planning
companywide objectives

Establishing business portfolio Implementation

Week 3: Strategic Marketing Planning

Developing strategies at
business units, market, and Organising
product level

Control

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LEARNING OUTCOMES
At the end of this chapter, you will be able to:
• explain the strategic marketing planning process
• discuss how to analyse the current business portfolio
• discuss how to develop strategic future business portfolio
• explain market-oriented strategies
• discuss marketing mix strategies
• explain SWOT analysis
• discuss the stages in a marketing plan

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Strategic Marketing Planning Process
The stages in the strategic marketing planning process

Specifying the market-oriented mission

Developing measurable companywide objectives

Establish business portfolio

Developing strategies at business, market, and product level

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Specifying Market-oriented Business
Mission
• Define a business mission statement
• A business mission statement is what is stated to reflect the organization
organization’s purpose, that is, what it wants accomplish.

• Mission statement should be clear, realistic and provide motivation for the
company to reach its objective.
• Who are our customers?
• What is our business?
• Where are we going?

• A market-oriented business mission statement is defined in terms of

satisfying basic customer need. Products may change, but basic needs and
customer groups will remain unchanged.

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Specifying Market-oriented Business
Mission
Market-oriented mission statement

Companies Mission statements

AirAsia • To be the best company to work whereby employees are
treated as part of a big family
• To create a globally recognized ASEAN brand
• To attain the lowest costs so that everyone can fly with
AirAsia
• To maintain the highest quality products, embracing
technology to reduce cost and enhance service levels
The Coca-Cola • To refresh the world
Company • To inspire moments of optimism and happiness
• To create value and make difference
Facebook • Facebook’s mission is to give people the power to share
and make the world more open and connected

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Specifying Market-oriented Business
Mission
• Characteristics of a good mission:
• Focus: Focuses on a limited number of goals
• Scope: Defines the major competitive scopes within which the company will
operate
• Motivates: A good mission can trigger a sense of motivation amongst
employees. Thus, it is vital for employees to feel that their work is significant
and contributes to people’s lives
• Guided by vision: Missions are at their best when they are guided by a vision and
direction for the company for the next 10 to 20 years
• Policies: The corporate mission should emphasise on the company’s major
policies and values to honor such as how employees should deal with
customers. Suppliers, distributors, competitors and other important groups

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Specifying Market-oriented Business
Mission
• At the beginning of an organization’s operations, the
missions or purpose tends to be clear.
• After sometime, when the market condition changes
or when there are new products or markets being
introduced, the mission has to be revisited.

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Developing Measurable Companywide
Objectives
• After defining the business mission statement, the next step is
turning the business mission into companywide objectives
• How a company goes about setting its companywide
objectives. A company must ensure that they meet certain
criteria when setting objectives. The company has to ensure
that each objective is realistic, measurable, time specific and
consistent with organizational mission.
 S = Specific
 M = Measurable
 A = Achievable
 R = Realistic
 T = Time Specific 8
Establishing Business Portfolio
• When the companies are large, they manage several
businesses or business portfolios.
• Business portfolio management enables large corporation to
maximize returns, efficiently distribute resources and minimize
the risks of losses.
• A business can be defined in three terms: customer groups,
customer needs, and technology.
• A strategic business unit (SBU) is a unit of the company that
has mission and objectives that can be planned independently
from the company’s other businesses.
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Establishing Business Portfolio
• Companies must manage its business strategically. A strategic
business unit has three characteristics:
1. It is a single business or a group of related businesses that
can be planned differently from the rest of the company;
2. It has its own group of competitors; and
3. It has a manager who is accountable for strategic planning
and profit performance, and who monitors most of the
conditions influencing profit.

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Establishing Business Portfolio
Steps in planning business portfolio and relevant tools

Steps Tools

Analyse current BCG Growth-Share

business portfolio Matrix

Develop future portfolio Strategic opportunity

matrix

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Analysing Current Business Portfolio
• The objective is to ensure that a firm uses its strength to match
available business opportunities.
• Companies use this to evaluate alternative strategies and allocate
resources across a number of businesses. It allows a firm to
maximize the firm’s business and to ensure satisfactory profits.
• The most common method used to select a strategic alternative is
the Boston Consulting Group Portfolio (BCG) Growth-Matrix
approach.
• BCG  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.
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Analysing Current Business Portfolio

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Analysing Current Business Portfolio

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Analysing Current Business Portfolio
What can be done with the matrix?
• An organization that has classified its SBNUs according to the matrix
will be able to plan their next strategic move.
• Successful SBUs have a life cycle that begin as Question Marks,
become Stars, then Cash Cows and finally Dogs. There, companies
should inspect not only its current position in the growth-share
matrix but also its future position.
• The growth-share matrix should become a planning framework for
strategic planners at the organization’s headquarters.

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Analysing Current Business Portfolio
The company can either decide to build, hold, harvest or divest in SBUs.
• To BUILD means to invest in whatever the company thinks has the
potential to be a Star, or often a Question Mark.
• To HOLD means to support the product so that it continues to perform
at current levels. Cash cows are the most appropriate targets of this
strategy.
• To HARVEST means to increase short-term cash returns without
necessarily thinking about long-term effects. It is often used with Cash
Cows in declining industries.
• To DIVEST could be an option for Question Marks that the company
cannot afford to support adequately.
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Analysing Current Business Portfolio
Matrix limitations:
• It is not easy to implement as decisions in a real business setting are not
simple based on two factors.
• A lot of time is required as markets are not easily defined in the real world.
• A company may place too much emphasis on the market-share growth
whereas a high market share growth does not necessarily mean high profit.
• A company may enter high growth businesses in which the company has no
expertise.
• A company may terminate its losing business unit that actually provides
essential core competence that is required by several other business units.

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Developing Strategic Future Portfolio
(Expansion Strategies)

Increase sales
Creation of new products
in existing markets

1 3 Increase sales by introducing

new products

2 4

Attract new customers by 18

expanding the target market
Analysing Current Business Portfolio
Downsizing strategies. A company might want to reduce the number of
businesses for several reasons:
• Irrelevant products due to changes in consumers’ preferences;
• Lack of experience in certain businesses; and
• Product obsolescence due to changes in technology.

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Analysing Current Business Portfolio

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Developing Measurable Companywide
Objectives
• The business mission set at the corporate level will breakdown into
companywide objectives. The next question is how a company goes about
setting its companywide objectives.
• A good objective meets certain criteria. The company has to ensure that each
objective is specific, measurable, achievable, realistic, and time specific.
• Once the marketing objectives are set based on these criteria, the next step is
to develop marketing strategies.
Market segmentation
Market-oriented strategies Market targeting
Market positioning

Product
Marketing mix strategies Price
Place 21
Promotion
Develop Market-oriented Strategies
• The company needs to analyse the market to serve and offer products or
services in order to ensure that:
 The investment gives back the most attractive returns and profits,
 The company has the resources and capability to serve the market needs, and
 The marketing activities fir in with the overall company’s mission and objectives.

• Due to large number of population to serve with varieties of needs, a company

needs to decide which market and needs to serve.
 The company can divide the population into segments (market segmentation)
 Choose the segment it wishes to serve (market targeting), and
 Decide on the value to offer to the selected market (market positioning).

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Marketing Mix Strategies Product
Marketing mix strategies Price
Place
Promotion

Product The starting point which refers to the product offering and product
strategy. A product not merely the physical unit but it also includes
packaging, branding and labeling.
Price Amount of money customers have to pay to obtain the product.
This is also very competitive weapon because price multiplied by the
number units sold is the total revenue for the firm.
Place Involves all business activities that are concerned with distribution of
finished products from the manufacturer to the final customer. E.g.
outlet.
Promotion To inform, educate, persuade, and remind target markets about the
benefits of an organization or a product. It includes personal selling,
advertising, sales promotion and public relation. E.g Ambassador.
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Managing the Marketing Activities
Situation analysis

Develop strategic Develop marketing

Planning
marketing plans plans

Follow through the

Implementation
plans

Organisation of
marketing department

Control Measure results Diagnose results Take corrective actions

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Conduct Situation Analysis

• A situation analysis helps the firm to understand the

current and potential environment that the product is
marketed.
• SWOT analysis allows a firm to:
• Capitalise on the firm strengths,
• Overcome the firm’s weaknesses,
• Exploit opportunities from the environment, and
• Counter threats from the environment.

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Conduct Situation Analysis

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Conduct Situation Analysis

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Environmental Scanning
• It is the examination of the external environment for opportunities and
threats.
• The PESTLE model is a tool that marketers can use to study to look for
opportunities and threats from the macroenvironment. A marketer
analyses Political, Economic, Social, Technological, Legal and
Environmental factors.
• Matching the company’s strengths and weaknesses with the opportunities
and threats from PESTLE model will help marketers understand the
situation they are faced with. Marketers will know what strengths and
opportunities to capitalize on, and what weaknesses and threats to avoid.

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Environmental Scanning

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Environmental Scanning

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Marketing Implementation Process

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Marketing Implementation Process

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Marketing Implementation
Implementation is the process of translating broad strategy statements into specific actions and tactics so
that the objectives set earlier can be achieved.

Marketing Strategy
Activity (what?)
Time (when?)
Person-in-charge (who?)
Method (how?)
Estimated costs (how much?)
Action Programs
Improve market penetration
Opinion leaders to promote shampoo with multiple
likes and more free samples via blogs of female
university students
15 January to 15 March 2017
Shampoo line manager
Social network media house specialist to monitor
recommendations and sampling distributions
55,000.00

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Marketing Control
• During the implementation of marketing plans, the marketing department
must practice constant marketing control. This involves measuring the
results, diagnosing or evaluating results of marketing strategies and plans,
and taking corrective actions to meet objectives.
• Marketers need to monitor the results of the investments on the marketing
activities. Profit is important.
• Strategic control is used to assess whether the company’s basic strategies
are well matched to its opportunities.
• To implement a marketing plan successfully, the firm must ensure that the
marketing strategies fits in with its company culture.

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