MarketingPlanningandStrategyNotes

Lecture1:MarketinginToday’sEconomy

IntroductionCommoditization-Consequenceofmatureindustrieswhereslowinginnovation,extensiveproductassortment,excesssupply,andfrugalconsumersforcemarginstothefloor

Allorganizationsrequireeffectiveplanningandasoundmarketingstrategytoachievetheirgoalsandobjectives

Today’seconomyischaracterizedbyrapidtechnologicalchange,economic/financialanxiety,andincreasingconsumerskepticism

ChallengesandOpportunitiesofMarketinginToday’s

• Powershifttocustomers• Massiveincreaseinproductselection• Audienceandmediafragmentation• Changingvaluepropositions• Shiftindemandpatterns• Privacy,security,andethicalconcerns• Unclearlegaljurisdiction

BasicMarketingConceptsMarket-Groupofindividualsorinstitutionswithsimilarneedsthatcanbemetbyaspecificproduct

Marketspace-ElectronicmarketplacesunboundbytimeorspaceMetamarket-ClusterofcloselyrelatedgoodsandservicesthatcentrearoundaspecificconsumptionactivityMetamediary-Providesasingleaccesspointwherebuyerscanlocateandcontactmanydifferentsellersinthemetamarket

Exchange-Processofobtainingsomethingofvaluebyofferingsomethinginreturn

Conditionsofexchange• Theremustbeatleasttwopartiesfortheexchange• Eachpartyshouldhavesomethingthattheotherpartyvalues• Eachpartymustbecapableofcommunicationanddelivery• Eachpartymustbefreetoacceptorrejectexchange• Eachpartymustbelieveitisdesirabletoexchangewiththeotherparty

Product-Somethingacquiredthroughanexchangetosatisfyaneedorwant

Examples:• Goods• Services• Ideas• Information• Digitalproducts

• People• Places• Experiences• Realorfinancialproperty• Organizations

Utility-Abilityofaproducttosatisfyacustomer’sneedorwant

FormUtilityProductcontainsdistinguishingattributes

TimeUtilityProductisavailablewhencustomerwantsit

MarketingActivitiesandDecisionsStrategicplanning

StrategyFirm’sgameplanforsuccess

TacticalplanningFocusingonspecificmarketsormarketsegmentsandthemarketingprogramsthatmeettheirneedsMarketingplanOutliningthemarketingprogram

Researchandanalysis

InternalanalysisAnalysingthefirm’scurrentandfutureperformanceandsustainabilitystrategies

CompetitiveintelligenceAnalysingcompetingbusinesses

EnvironmentalscanningAnalysingtheexternalenvironment

SituationanalysisCollectingandinterpretinginternal,competitive,andenvironmentalinformation

Developingcompetitiveadvantage-Advantageafirmhasovercompetitors

ServesasanedgetoservecustomerneedsandmaintainrelationshipswithimportantstakeholdersHelpssetastrategicfocustotheentiremarketingprogram

Marketingstrategydecisions

MarketsegmentationandtargetmarketingMarketingprogramdecisions• Creatingalinkbetweenproduct

benefitsandcustomerneeds• Pricingdecisions• Distributionandsupplychain

management• Integratedmarketing

communication(IMC)orpromotion

Brandingandpositioning• Productpositioning-Establishinga

mentalimageoftheproductinthemindsoftargetbuyers

PlaceUtilityProductisavailablewherecustomerswantit

PossessionUtilityDealswitheasytransferofownershiportitle

PsychologicalUtilityProductprovidespositiveexperientialattributesthatcustomersfindsatisfying

Socialresponsibilityandethics

Socialresponsibility• Firm'sobligationtomaximizepositiveimpactonsocietywhile

minimizingnegativeimpact

Marketingethics• Principlesandstandardsthatdefineacceptableconductinmarketing

activitiesImplementationandcontrol

Marketingimplementation-Processofexecutingthemarketingplan• Shouldbecontrolledtoensurethatthestrategystaysoncourse

Developingandmaintainingcustomerrelationships

Involvesshiftingfromtransactionalmarketingtorelationshipmarketing

ChallengesofMarketingStrategy• Constantchange• People-drivennatureofmarketing• Lackofrulesforchoosingmarketingactivities• Societalevolutionofmarketingandbusinesspractices• Increasingcustomerexpectations• Decliningcustomersatisfactionandbrandloyalty• Increasingpricesensitivity• Changeincustomerattitudestowardbusinessandmarketingactivities• Competitioninmaturemarkets• Increaseinexpansionintoforeignmarkets• Aggressivecost-cuttingmeasures

Lecture2:StrategicMarketingPlanning

Marketingplanningvs.Marketingstrategy

KeyaspectsofmarketingplanningSituationanalysisIn-depthanalysisoffirm’sinternalandexternalenvironmentsMarketingplanWrittendocumentprovidingtheblueprintofafirm’smarketingactivities.

• Explainshowtheorganizationwillachieveitsgoalsandobjectives. • Servesasaroadmapforimplementingmarketingstrategies• Informsemployeesabouttheirrolesandfunctions• Providesspecificsregardingallocationofresourcesandmarketing

activitiesAddress3fundamentalquestions

• Howisourbusinessdoing?• Whatshouldthebusinessbedoing/Whereshouldwego?• Howdowegetthere?

WhatMarketingPlanningDoes

• Vigilantmarketlearningo Sensitivetoearlymarketsignalsforchangeo E.g.cloudcomputing,onlineshopping,shared-economy

• Alignorganizationtothemarketo Strategycongruentwithmarketchanges&internalresources

• Assignresponsibilityandgaugeprogresstowardsgoals

Businessplanningvs.Marketingplanning

MarketingStrategyDecisionson

• Competeinwhichmarket• Whattoproduce• Whomyoutarget• Howtodifferentiate• 4Ps

MarketingPlanning• Situationanalysis(External&internal)• Strategyformulation• Strategyimplementation• Evaluation&Control

BottomupVSTopdownapproachtoStrategicBusinessUnit(SBU)

planning