Chapter 2

Strategic Planning
and the Marketing
Process

Copyright © 2007 by Nelson, a division of Thomson Canada Limited

 Marketing Planning: The Basics for
Strategy and Tactics

 Planning: Process of anticipating future

events and conditions and of determining the
best way to achieve organizational goals

 Marketing planning: Implementing planning

activities devoted to achieving marketing
objectives

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 Strategic Planning versus Tactical Planning

Strategic planning: Process of determining

an organization’s primary objectives and
adopting courses of action that will achieve
those objectives

Tactical planning: Process that guides the

implementation of activities specified in the
strategic plan.

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 Strategic Planning versus Tactical Planning
Top management
 Greater proportions of their time engaged
in planning
 Usually focus their planning activities on
long-range strategic issues
Middle level managers
 Focus on operational planning; creating
and implementing tactical plans
Supervisors
 Developing the specific programs to meet
goals in their areas of responsibility

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 Figure 2.2
 The Marketing Planning Process

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 Defining the Mission of the Organization
Mission:
Mission the essential purpose that
differentiates one company from others
The mission statement specifies the
organization’s overall goals and
operational scope and provides general
guidelines for future management actions

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 Determine Organizational Objectives
An organization lays out its basic objectives,
or goals, in its mission statement
These objectives in turn guide development
of supporting marketing objectives and plans
Well-developed objectives should state
specific, quantitative intentions along with
deadlines for achieving them

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 Formulating, Implementing, and
Monitoring a Marketing Strategy
Marketing strategy: a firm’s overall
program for selecting and satisfying a
target market
A marketing strategy is aimed at satisfying
consumers in the selected target market
through a careful balance of the elements
of the marketing mix – each of which
represents a subset of the overall
marketing strategy

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 Successful Strategies: Tools and
Techniques

 All planning strategies have the goal of

creating a sustainable competitive
advantage for a firm where other companies
cannot provide the same offering or value.

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 First Mover and Second Mover Strategies
First mover strategy: Theory advocating
that the company that is first to offer a
product in a marketplace will be the long-
term market winner.

Second mover strategy: Theory that

advocates observing closely the
innovations of first movers and then
introducing new products that improve on
the original offering to gain advantage in
the marketplace.

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 SWOT is an acronym for strengths,
weaknesses, opportunities, and threats

 A SWOT analysis is a method of studying

organizational resources and capabilities to
assess the firm’s strengths and weaknesses
and scanning its environment to identify
opportunities and threats

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 Figure 2.5
 SWOT Analysis

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 Elements of a Marketing Strategy

 Blending the four strategy elements of

marketing decision-making to satisfy chosen
target markets
Product
Price
Distribution
Promotion

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 Figure 2.6
Elements
of a
Marketing
Strategy
and Its
Environ-
mental
Framework

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 Marketing Mix Variables
Product Strategy
 Good or service offerings
 Customer service
 Package design
 Brand names
 Trademarks
 Warranties
 Product Life Cycle
 Positioning
 New-product development

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 Marketing Mix Variables
Distribution Strategy
Planning that ensures that consumers find
their products in the proper quantities at the
right times and places.
 Modes of transportation
 Warehousing
 Inventory control
 Order processing
 Marketing channels

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 Marketing Mix Variables
Promotional Strategy
 Blending together the various elements
of promotion to communicate most
effectively with the target market
 Informing, persuading, and influencing a
consumer’s purchase decision.
 IMC

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 Marketing Mix
Variables
Pricing Strategy
Deals with the
methods of setting
profitable and
justifiable prices
Figure 2.9
 Timex: Offering
Customers
Style and
Durability- at a
Lower price
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 The Marketing Environment
 Competitive
 Political – Legal
 Economic
 Technological
 Social – Cultural

 Rule of three
 List 3 reasons to buy
 3 benefits
 3 things to remember from a presentation
 etc

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 Methods for Marketing Planning

 Business Portfolio Analysis

Strategic Business Units (SBUs) are key
business units within diversified firms
 A division, product line, or single product
may define an SBU
 Firms redesign their SBUs as market
conditions dictate

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 The BCG Matrix
Market Share/ Market Growth Matrix:
Matrix a
marketing planning tool that classifies a
firm’s SBU’s or products according to
industry growth rates and market shares
relative to competing products
 Stars
 Cash Cows
 Dogs
 Question Marks

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 Figure 2.10
BCG Market Share/Market Growth Matrix

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