ADM2320 Chapter 2 Developing Marketing Strategies
The Marketing Plan
A marketing plan is a written document composed of an analysis of the
current marketing situation, opportunities and threats for the firm,
marketing objectives and strategy specified in terms of the four Ps, action
programs, and projected income statements.
The Planning Phase: Where marketing executives and other top manager s define
the mission and objectives of the business, and evaluate the situation by assessing
how various players, both inside and outside the organization, affect the firm’s
potential for success.
Step 1: Define the Business Mission and Objectives
The mission statement, a broad description of a firm’s objectives and the scope
of activities it plans to undertake, attempts to answer two main questions:
o What type of business is it?
o What does it need to do to accomplish its goals and objectives
Step 2: Conduct a Situation Analysis
After developing its mission, a firm next must perform a situation analysis,
using SWOT analysis that assesses
o Internal environment o External environment
The firms should assess the opportunities and uncertainties of the
marketplace due to changes in cultural, demographic, social, technological,
economic, and political forces (CDSTEP) Step 3: Identifying and Evaluating Opportunities Using STP
STP: The processes of segmentation, targeting, and positioning that firms use
to identify and evaluate opportunities for increasing sales and profits.
o Market Segment: A group of consumers who respond similarly to a
firm’s marketing efforts.
o Market Segmentation: The process of dividing the market into
distinct groups of customers where each individual group has similar
needs, wants, or characteristics – who therefore might appreciate
products or services geared especially for them in similar ways.
o Target marketing/targeting: The process of evaluating the
attractiveness of various segments and then deciding which to pursue
as a market.
o Market positioning: Involves the process of defining the marketing
mix variable so that target customers have a clear, distinct, desirable
understanding of what the product does or represents in comparison
with competing products
Step 4: Implement Marketing Mix and Allocate Resources
Product and Value Creation
Price and Value for Money
o Customer perception of value.
o Price is only a part of value.
o Product must be readily accessible
Promotion and Value Com