Chapter 2 Tactical Planning
Strategic Planning in Contemporary Guides the implementation of
Marketing. activities specified in the strategic
plan
Marketing Planning: The Basis for Strategy Addresses shorter-term actions
and Tactics.
Planning - Anticipating future Steps in the Marketing Planning Process
events and conditions and
determining the best way to Defining the organization’s mission
achieve organizational objectives and objectives
Continuous process that includes: Mission - Essential purpose that
Identifying objectives differentiates one company from
Determining the actions through another
which a firm can attain those Sephora: “The beauty
objectives authority”
Creates a blueprint for everyone in IBM: “Welcome to the
the organization. decade of smart”
Marketing planning - Implementing Objectives - Guide the development of
planning activities devoted to achieving marketing objectives and plans.
marketing objectives.
Many planning activities take place • For example:
over the Internet with virtual • Generate a 15
conferences percent profit over
-An important trend in marketing planning the next 24 months
centers on relationship marketing. • Add 25 new outlets
within the next year.
-A firm’s effort to develop long-term, cost- •
effective links with individual customers Assessing Organizational Resources and
and suppliers for mutual benefit Evaluating Environmental Risks and
Opportunities
Strategic Planning Versus Tactical Planning
Resources include:
Strategic Planning Production
Determining an organization’s Marketing
primary objectives Finance
Adopting courses of action that will Technology
achieve these objectives Employees
Provides long-term direction for its
decision makers
Strengths help planners: Second mover strategy - Observing
Set objectives the innovations of first movers and
Develop plans then improving on them to gain
Take advantage of marketing advantage in the marketplace.
opportunities
SWOT Analysis ( image 18)
Formulating, Implementing, and
Monitoring a Marketing Strategy ▮ Helps planners compare internal
organizational strengths and
▮ Marketing strategy - Selecting and weaknesses with external
satisfying target consumers through opportunities and threats
the marketing mix elements • Provides managers with a
critical view of the
▮ The final steps of the planning organization’s internal and
process: external environments
-Marketers put the marketing strategy into • Helps them evaluate the
action firm’s fulfillment of its basic
- Marketers monitor performance to mission.
ensure that objectives are achieved.
The Strategic Window
Successful Strategies: Tools and
Techniques
Limited periods when key
▮ Porter’s Five Forces model ( Image) requirements of a market and a
• The potential of new firm’s particular competencies best
entrants fit together
• The bargaining power of Requires a thorough analysis of:
buyers • Current and projected
• The bargaining power of external environmental
suppliers conditions
• The threat of substitute • Current and projected
products internal company
• Rivalry among competitors capabilities
• How, whether, and when
First Mover and Second Mover Strategies the firm can reconcile
environmental conditions
First mover strategy - The company and company capabilities.
first to offer a product in a
marketplace will be the long-term Elements of a Marketing Strategy
market winner ▮ The target market
▮ Marketing mix variables
The Target Market Product Strategy
▮ The group of people toward whom ▮ Deciding what goods or services the
the firm directs its marketing firm should offer to a group of
efforts and merchandise consumers
• Example: Boeing markets Customer service
most of their products to Package design
business buyers such as Brand names, trademarks, patents,
Delta Airlines and warranties
▮ Diversity plays a critical role Lifecycle of a product
• Example: Growing Hispanic Product positioning New-product
population in United State development
▮ Targeting consumers in specific
global markets represents a Distribution Strategy
challenge and an opportunity Consumers find their products in
the proper quantities at the right
Marketing Mix Variables times and places
Marketing mix - Blending four strategy Involves modes of transportation,
elements to fit the needs and preferences warehousing, inventory control,
of a specific target market. order processing, and selection of
• Product marketing channels
• Distribution Technology has opened new
• Promotion channels of distribution in many
• Pricing industries.
Figure 2.4 - Element of a Marketing ( 24) Promotion Strategy
Strategy and Its Environmental Framework Communication link between
sellers and buyers
Firms may communicate messages:
o Directly through salespeople
o Indirectly through
advertisements and
promotions
Many companies use integrated
marketing communications (IMC)
Pricing Strategy
Deals with methods of setting
profitable and justifiable prices
Subject to regulation and public
scrutiny
A good pricing strategy:
o Creates value for customers
o Builds and strengthens Companies may have to redefine
customer relationships with their SBUs as market conditions
a firm and its products dictate.
The Marketing Environment The BCG Matrix ( image34)
Five external dimensions that affect the 1. Developed by the Boston
marketing mix variables: Consulting Group.
• Competitive 2. A market share/market growth
• Political-legal matrix that plots market share
• Economic against market growth potential.
• Technological
• Social-cultural Strategic Implications of Marketing in the
21st Century
Businesses increasingly looking to
foreign shores for new growth Planning becoming vital as
markets technology advances
Technology continues changing the Marketers must consider:
marketing environment o A changing, diverse
Rule of three - In any industry, the population
three strongest, most efficient o The boundaryless business
companies dominate 70 and 90 environment created by the
percent of a market Internet
- Example: Cereal manufacturers - Planning reduces risk and worry of
General Mills, Kellogg’s, and Post bringing new goods and services to
the market
Methods for Marketing Planning
Business portfolio analysis
• An evaluation of a
company’s products and
divisions to determine the
strongest and weakest
Strategic Business Units
Key business units within
diversified firms
o Each strategic business unit
(SBU):
o
- Has its own managers, resources,
objectives, and competitors
-Pursues its own distinct mission and
develops its own plans independently
Help focus the attention of
company managers
