By Mark Liangco | BUS 343
Chapter 2 (Week 3)
Strategic Planning vs. Marketing Planning
- Strategic planning – Longer term and less specific than marketing planning.
- Mission statement and business portfolio are unlikely to appear in a marketing plan.
1) Define mission
- Mission – A formal statement in an organization’s strategic plan that describes the overall purpose of the
organization and what it intends to achieve in terms of its customers, products and resources.
2) Conduct environmental “situational” analysis
- External environment
o Consists of uncontrollable elements outside of the organization that may affect it either
positively or negatively.
o PESTO – Political, Economical, Social, Technological and Other factors.
- Internal Environment
o The controllable factors within an organization
o People, facilities and how it does things.
3) Set an Organizational/Strategic Business Unit (SBU) Objectives
- Objectives needs to be SMART Specific, Measurable, Attainable, Realistic and Time-Bounded
4) Establish the business portfolio
- Group of different products & brands characterized by different income generating and growth
5) Develop growth strategies
Marketing is a decision making process
1) Understanding the Opportunity
o Customer Analysis
Who are our current core customers?
How do we reach them?
What benefits do we provide?
Opportunities: What benefits can we provide to existing or new customers?
Market penetration: increase sales of existing products to current
customers, non-users, and users of competitive brands in served
Also known as the “work harder” strategy.
Market development: introduce existing products to new markets.
E.g., exporting, finding new uses for existing products.
Product development: selling new products in served markets. (ask
existing customers what else the company could offer them)
Diversification: emphasize both new products and new markets.
Large companies such as General Electric have the resources to do this.
Risky for smaller companies with limited resources By Mark Liangco | BUS 343
1) Understanding the Opportunity (continued)
o Company, Competitors Analysis
What are their (our) strengths and weaknesses?
What are their (our) brand image and position?
o Environmental Analysis
What are the current trends and changes in PESTO – Political, Economical, Social,
Technological and Others?
- How do we address these? Use the SWOT analysis.
2) Specify the value (Marketing Strategy: Use STP [Segment, Target, Position] )
o Objectives needs to be SMART Specific, Measurable, Attainable, Realistic and Time-Bounded
- Market Segmentation
o Process of dividing the market into groups who are similar within but different between groups.
o Who is my target marke