1. the strategic marketing planning process stu

8/9/2019 1. the Strategic Marketing Planning Process STU

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MKT 601MKT 601Strategic MarketingStrategic Marketing

Dr.Dr. SomkiatSomkiat MansumitrchaiMansumitrchai

Strategic MarketingStrategic Marketing

Planning ProcessPlanning Process

Dr.Dr. SomkiatSomkiat MansumitrchaiMansumitrchai

Copyright: Dr. SomkiatMansumitrchai

The Strategic Marketing

Planning ProcessFramework


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Mission, Value Strategies, and Market Definition

Internal Analysis

Strengths and Weaknesses

External Analysis

Customer Analysis

Industry Analysis

Competitor Analysis

Analysis of Distribution

and Suppliers

Opportunities and Threats

From analysis to strategy

Corporate Objectives and Corporate Strategies

Marketing Objectives and Marketing Strategies

Objectives and Strategies for

Marketing Instruments

Organization and

Implementation of Marketing

Copyright:Dr.SomkiatMansum

itrchai


1.1 The Strategic

Marketing Planning


Strategic marketing planning is

increasingly important for companies

for a variety of reasons. Some of theseinclude.


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1. Companies increasingly are faced

with a turbulent economic

environment.

Technological developments have

caused products to have increasingly

shorter life cycles.


2. Developments in information and

communications technology since the

1990s are responsible for the growth of

the global network economy.


3. A third trend is that governments in

many countries are striving to

accommodate market forces. (Postal services, energy, and health care

are placing more emphasis on listening to

the customer)


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4. Finally, consumers are become more

independent, are learning more, and

presumably are placing a higher value

on products and services.


These changes open up opportunities

never before available.

On the other hand, companies face

increasing competition.


As a result, companies need to respond

to their ever-changing environment

with increasing speed and more highlydeveloped strategic plans.


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1.2 Marketing Concept



1.2.1 Marketing Theory

1.2.2 Development of the Marketing

Concept Before 2000

1.2.3 Branding, Core Competencies, and

Customer Relations



1.2.4 A New Marketing Concept

1.2.5 Marketing as Strategy and Tactics


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Marketing can be interpreted in different

ways.




Marketing can be defined as

1. As an organizational culture

2. As a strategy

3. As tactics




As an organizational culture (the marketing

concept or marketing paradigm) a set ofvalues and beliefs that drives the

organization to make a fundamental

commitment to serving customers needs as

the path to sustained profitability.



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As a strategy (defining target markets and

positioning product offerings)

As tactics (the day-to-day activities of the

four marketing instruments-product

development, pricing, distribution, and

communication)


Marketing Concept or Paradigm

determines

developing

Marketing Strategy,which provides

guidelines for



LevelinMarketingTheory




1.2.2 Development of the Marketing

Concept Before 2000


Customer Relations



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1.2.2 Development of the Marketing Concept

Before 2000

Kotler (1967) introduced the concept that

companies must be both customer-and market

driven.



1.2.2 Development of the Marketing Concept

Before 2000

The strategic marketing concept states that a

company should pay attention to

Customers (as in the classic marketing concept)

Competitors (not just to be better but also perhaps tocollaborate)



Long-term relationships (including developingproducts for which there is a latent need and thus a

potential demand)

Other interest groups inside and outside the

organization (such as distributors, employees,suppliers, financiers)



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There issues (customers, competitors, long term

relationships, other interest groups) is calledMarket Orientation

Market orientation consists of three

components.



1. A customer-oriented philosophy would focus

on the following questions.

Does the company make reasonable promises,

and is it able to keep these promises?

Are customers treated as individuals?



2. A competitor-orientation philosophy

Does the company has a lot of information

about individual competitors? Is that information analyzed and distributed

throughout the organization?

Does the company know when it should

respond to actions of competitors?



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2. A competitor-orientation philosophy

How the company differentiate itself from

competitors?

What are sustainable competitive advantages

given the marketplace?



3. Interfunctional Coordination (integrated

decision making)

It is important to realize whether information is

shared within the company are the strategies

for various areas integrated?

Are joint decisions made?

Is the whole organization truly interested in its

customers?



Theoretical Developments

in Marketing History


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Period Marketing Emphasis On

Until Classic marketing Customer wishesCirca 1980

1980-1990 St rategic market ing Compet itive advantages ,

long term

1990-2000 Relationship marketing Direct realtionships with customers,

and offering services

Consumer cencept Customer satisfaction and loyalty



Customer Relations

In summary, marketing concept focuses on

the demand side of the market (Customers).

In marketing practice, attention is being

paid to on the supply side of the market

(Brands).



Brand theory suggests that companies

should try to create brands with high name

awareness and strong, favorable, and unique

associations.



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In general, customers respond more

favorably to the marketing instruments of abrand they know than to the marketing

instruments of brands they dont know.

It is helpful to have a clear, positive, and

unique brand image (including product,

service and corporate brands)



One of the key elements of effective brand

management is consistency. This has two

elements (specialization and stability over

time).



Specialization

Brands and firms that do not clearly choose

a strategy for brand positioning will not getinto the customers minds.



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Stability over time

It takes time to make customers aware ofthe brand identity, and so brand

management is a long-term issue. (Toyota

in the U.S.)



The issue of branding is strongly related to

the resource-base view of the firm and to

the focus on core competencies.

These approaches suggest that the source of

superior performance is the possession and

development of distinctive and hard to

imitate resources.



Resource-base

Skills, technology, innovation, creation,

knowledge (marketing & management),

employees, finance etc.

Microsoft, Sony



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More innovations Customers get used to

innovations

Innovation Spiral



1.2.4 A New Marketing Concept




1.2.4 Toward a New Marketing Concept

A new marketing concept states that a

manager should find a balance between thecustomer approach and the brand approach

when selecting the companys positioning.



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Marketing as aMarketing as aBalance betweenBalance between

Customer and BrandCustomer and Brand

Customers

Needs

Marketing Concept

Value Marketing

Balancing customer needs and brand identity

Company and

brand

Unique strengths



Based on the marketing concept outlined,

the marketing strategy and tactics areplanned.



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Marketing Concept (Organizational culture)Focus on

Customer needs and services

Brand reputation

Guidelines for Marketing Strategy

Targeting and positioning

(specialization and long-term orientation)

Guidelines for Marketing Instruments

Product, price, distribution, and

communication


ValueMarketingandMarketingStrategy



Marketing activities can be divided into four

parts (analysis, planning, implementation,

and control)




Analysis (market research)

Planning (decisions regarding positioningand communication)

Implementation (execution of campaign)

Control (evaluation of results)



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Analysis in strategic marketing refers to

analyzing potential customers (through

market research), competitors, distribution

structures and the suppliers, the industry

structure and macroenvironment (e.g.

demographic developments), and internal

factors (companys brand)




Planning activities in strategic marketing

should be able to answer these questions.

1. Where (and when) to compete? These

refers to the choice of markets, positions

and periods.




2. How to compete? This refer to the choice

of sustainable competitive advantagesincluding positioning, target audience

and segmentation, and determination of

the objectives regarding the use of

marketing mix elements.



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1.3 Levels within a Company

1.3.1 Company or Corporate Level

1.3.2 Division level and Strategic Business

Unit Level (SBU)

1.3.3 Product Level and Marketing Mix

Level

1.3.4 The Position of the Brand

Top management

(Corporate level)

SBUs markets

Products/brands

Marketing

instruments

C

SBU SBU SBU

P P P1,1 1,2 1,.. P P P2,1 2,2 2,..

1 2 n

P P Pn,1 n,2 n,..

Prod Price Place Prom1,1 1,1 1,1 1,1

Prod Price Place Promn,1 n,1 n,1 n,1

Top management

(Corporate level)

SBUs markets

Products/brands

Marketing

instruments

C

SBU SBU SBU

P P P1,1 1,2 1,.. P P P2,1 2,2 2,..

1 2 n

P P Pn,1 n,2 n,..




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1.3.1 Company or Corporate Level

It is the top level, and it relates to the

company as a whole.

All the different products a company puts

out on the various markets are collectively

designated as the product mix or the

assortment.



1.3.2 Division Level and Strategic Business

Unit Level

A division is a operating unit within a

company. A division may include several

product groups (called a product line or a

product category).



A strategic business unit (also called a

strategic product group) is concentrated on a

single product group (and therefore usually

on one market).


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Top management

(Corporate level)

SBUs markets

Products/brands

Marketing

instruments

C

SBU SBU SBU

P P P1,1 1,2 1,.. P P P2,1 2,2 2,..

1 2 n

P P Pn,1 n,2 n,..





1.3.3 Product Level and Marketing Mix Level

A product is an item (good or service) that is

offered in a market. A product may aim at

different target audiences (different sizes or

packages and flavors.

Top management

(Corporate level)

SBUs markets

Products/brands

Marketing

instruments

C

SBU SBU SBU

P P P1,1 1,2 1,.. P P P2,1 2,2 2,..

1 2 n

P P Pn,1 n,2 n,..




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A combination of a product and a target

audience is usually called a product-market

combination.



Typically, four categories of marketing mix

elements are distinguished.

Product (packaging, size)

Price (different prices)

Place (same or different distribution)

Promotion (advertising)



Because marketing mix elements are applied

to products, the marketing mix levelcorresponds to the product level.


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A brand is a word, name, symbol, letter or

picture (or a combination of these elements)

used by a company to distinguish its products

from those of the competition.




Brand names play an important role not only at

the product level but at all three levels (Top

management, SBU, Products and Brands and

Marketing mix) in the company.


1.4 The Core of the Marketing Strategy

1.4.1 Corporate Strategy: Direction of Growth and

Value Strategy 1.4.2 Marketing Strategy: Target Group and

Positioning


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Both corporate strategy and marketing strategy

have to answer the same two questions:

Where are we going to compete? (In which

markets, and with products, and when)

How are we going to compete?



Corporate strategy

Where are we going to compete?

With existing products and brands or with new ones

With existing customers and target groups or with new

ones

Product or Service

Mark

et

Current

Related

New

Current Related New


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Corporate strategy How are we going to compete?

Does the company want to promote itself to customers

on the basis of leadership in quality and innovations,

efficiency and low prices.

Whether the company wants to grow on its own or with

the helps of others (with whom? acquisition or

mergers)



Marketing strategy

Where are we going to compete?

It involves a more detailed description of the target

group.



Marketing strategy

How are we going to compete? It involves the distinguishing power of the competitive

edge.

What reason would a customer have to purchase this

companys brand instead of another brand.


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Marketing strategy How are we going to compete?

Sustainable competitive advantage means that a

company

Is good at something (has a strength)

That its competitors do not have and that would be

difficult for them to acquire (sustainable)

And that strength is important to customers.

Strength of a company and / or product Weakness of competitor

Relative strength of company and / or product

No reaction from competitor Need of customer

Sustainable competitive advantage

Targeting and positioning


Level Where to Compete

How to Compete

(Choice of Competitive Edge)

Company Strategy Determine composition Choice of value strategy or

and desired positions of Choice of partners (with whom)

product groups and

brands (directions of

growth)

Marketing Strategy Specify target groups Brand positioning

Marketing instrument Elaboration of positioning

strategies


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1. the strategic marketing planning process stu

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