Levels of Strategic Planning in Corporations : Effective marketing doesn’t just happen. Firms
carefully plan their marketing strategy to react to changes in the environment, the competition, and
their customers. Occurs on 3 levels...
Corporate level: Done by the company’s top management and focuses on the overall
direction of the entire company. Senior managers decide on the business of the
company, set its mission/vision, objectives and goals for the company. Focuses on long-
term and adapts to the changing business environment.
Functional level: Various functions within the organization such as marketing, finance,
human resources etc.. Each of these functions usually undertakes some form of
planning (Marketing function develops plans for company’s various products, brands,
markets etc.). Annual or three to five years.
Strategic Business Units (SBU): An SBU is a division of the company that can be
managed somewhat independently from other divisions since it markets a specific set of
products to a clearly defined group of customers. Disney has 4 business units – media
networks, parks and resorts, studio entertainment, and consumer products. Each of
these units develops plans for the products and markets under their control.
Marketing function may also be involved in both corporate and SBU-level planning. Focuses on
creating value for customers and the company, advises management of possible threats and of
changing consumer trends.
Strategic Marketing Planning Process: Represents a set of steps a marketer goes through to develop
a strategic marketing plan. Marketing plan is a written document composed of analysis of the current
marketing situation, opportunities threats, marketing objectives in terms of 4p’s, and pro form
projected financial statements.
Define Mission/ Vission of the business
o SWOT Analysis
o Environmental Trend Analysis
o Market Trend Analysis
o Competitive analysis
Identify and evaluate Opportunities.
o Engaging in Segmentation, targeting and positioning, Develop the
marketing mix – 4p’s
Implement marketing mix, design the Marketing organization, develop budgets,
schedules and put a plan into action
Managers eveluate the performance of the marketing strategy and take
necessary corrective actions. Step 1: Define Business Mission/Vision
Mission statement is a broad description of a firms objectives and the scope of the activities it
plans to undertake. Answers 2 questions...
oWhat type of business is it?
oWhat does it need to do to accomplish its goals and objectives?
These must be answered at the highest corporate levels before marketing
executives can get involved.
Most firms want to maximize stockholder wealth by increasing value of firms
stock, some smaller firms have other objectives such as achieving a specific
level of income.
Sustainable competitive advantage: Something that the firm can persistently do
better than the competitor. Some competitive advantages are duplicated by competitors
immediately such as low prices but some are sustainable over a long period of time such as
providing top quality customer service
Step 2: Conduct a Situational Analysis Using SWOT: Situational analysis assess both the internal
environment with regards to its Strengths and Weaknesses and the external environment in terms of its
Opportunities and threats
Internal Strengths: Positive internal Weaknesses: Negative attributes
attributes of the firm. Such as of the firm. For example
well known brand image seasonal fluctuations
External Opportunities:Positive aspects of Threats: negative aspects of the
the external environment. Such external environment. Such as
as the ability to expand into increasing competitive pressure.
Step 3: Identify and Evaluate Opportunities Using STP: process of segmentation, targeting and
positioning that firms use to identify and evaluate opportunities.
Segmentation: Many types of customers appear in any market, and most firms can not
satisfy everyone’s need.
o Market Segment: A group of consumers who respond similarly to a firms
o Market Segmentation: The process of dividing the market into groups of
customers with different needs, wants, or characteristics- who therefore
might appreciate products or services geared especially for them. Firms may
segment on the basis of...
Demographic variables such as age, gender and income
Psychological and Behavioural factors such those who like to
party or go dancing
Socio-cultural factors Targeting :Evaluates each segments attractiveness and decides which to pursue using a
process known as target marketing
Positioning: The process of defining the marketing mix variables so that target customers
have clear, distinctive, desirable understanding of what the product does or represents in
comparison with competing products.
o What consumers think of and feel about a brand or product
o All marketers would like consumers to think of their brand or product
the way the company wants to present it to them but few are able to do
Set Marketing Objectives: Marketing manager is responsible for setting the marketing
specific objectives for the product or brand over the life of the plan
Develop Marketing Mix: Marketers develop their marketing mix of product, price, promotion, and
place for each product or service on the basis of what they believe their customer will value.
Product and Value Creation: They key to the success of any marketing program is the creation
of value, firms attempt to develop products and services that customers perceive as valuable
to buy. This includes offering service plans and customizability etc.
Price and Value for Money: As part of the exchange proce