Strategic Planning Process

Marketing plan
 The strategy can be broadly classified into three levels:

• 1.Corporate Strategy - Defining what business the company is in Setting the

overall structure, systems and processes
• 2. Business Strategy - Deciding how to compete Identifying competitive
advantage Selecting key success factors
• 3. Functional Strategy - Coordination of company departments to business
strategy
 1. Corporate Strategy

• Corporate level strategy occupies the highest level of strategic decision-

making and components dealing with the objective of the firm, acquisition
and allocation of resources and coordination of strategies of various SBUs for
optimal performance.
• Corporate strategy describes company’s overall direction in terms of its
general attitude toward growth and the management of its various businesses.
• The corporate strategy typically fits within the three main categories -
stability strategy, growth strategy and retrenchment strategy.
 a.Stability strategy

• The basic approach of stability strategy is to maintain present

course and be steady as it goes. In an effective stability strategy,
companies will concentrate their resources where
the company presently has or can rapidly develop a meaningful
competitive advantage in the narrowest possible product-market
scope consistent with the firm’s resources and market
requirement's
 b.Growth strategy

• Growth strategy is the means through which an organization plans to achieve its objective to grow in
turnover and volume. There are four broad growth strategies which include; product development,
diversification, market development and market penetration.
• Business growth strategies are unique in every business. However there are broad categories of
strategies for business growth:
• New Product/Service Strategy Development
• Market Expansion Strategy
• Product Diversification Strategy
• Market Opportunity Analysis
• Competitive Market Analysis
• Market Segmentation Strategy
 c. Retrenchment strategy

• A strategy used by corporations to reduce the diversity or the overall size of

the operations of the company. This strategy is often used in order to cut
expenses with the goal of becoming amore financial stable business.
Typically the strategy involves withdrawing from certain markets or the
discontinuation of selling certain products or service in order to make a
beneficial turnaround.
 2. Business Strategy

• The business strategy of a single-business company is similar to that of a

business unit of a diversified company except that the business strategy must
support corporate strategic initiatives aimed at the single business. The
business strategy sets goals for performance, evaluates the actions of
competitors and specifies actions the company must take to maintain and
improve its competitive advantages. Typical strategies are to become a low
price leader, to achieve differentiation in quality or other desirable features or
to focus on promotion. How a business unit competes within its industry is
the critical focus of business-level strategy
 Functional Strategy

• Functional strategy, as is suggested by the title, relates to a single functional

operation and the activities involved there in . Decisions at this level within
the organization are often described as tactical. Such decisions are guided and
constrained by some overall strategic considerations. Functional strategy
deals with relatively restricted plan providing objectives for specific function,
allocation of resources among different operations within that functional area
and coordination between them for optimal contribution to the achievement
of the SBU and corporate level objectives.
 MEANING AND DEFINITION OF MARKETING
PLAN

• A marketing plan is a written assessment of the current marketplace and how a business
intends to spend its marketing and advertising dollars in the future. It identifies customers
and establishes how to sell a product or service to those customers.
• Definitions:
• “A marketing plan is a written document that summarizes what the marketer has learned
about the marketplace and indicates how the firms plan to reach its marketing objective.” –
Marian Wood.
• “Marketing plans are developed for individual products, lines, brands, channels, or customer
groups. The marketing plan is one of the most important outputs of the marketing process.” –
Philip Kotler.
 FEATURES OF MARKETING PLAN

• Continuous process
• Customer oriented
• Written document
• Two levels-long term(Strategic), short term (tactics)
• Marketing opportunities
• Time period
• Market conditions
• Team work
CONTENTS OF MARKETING PLAN
 Situation Analysis

• Situation analysis mainly contains a market analysis i.e.SWOT analysis of

the market. It analyses strengths and weaknesses of the firm as well as
opportunities and threats possible in the market. It also includes
competitive analysis. The market analysis will include a market forecast,
segmentation, customer information, and market needs analysis. Situation
analysis also includes collecting and analyzing the information regarding
market situation, customer profile and descriptions of changes affecting the
customers, competitors, and business climate.
 Marketing Strategy

• Strategy should include at least a mission statement, objectives,

and focused strategy including market segment focus and product
positioning. Marketing strategy should specify clearly the way of
carrying on marketing functions of the firm.
 Sales Forecast

• This would include enough detail to track sales month by month and follow
up on plan-vs.-actual analysis. Normally a plan will also include specific
sales by product, by region or market segment, by channels, by manager
responsibilities, and other elements. The forecast alone is a bare minimum.
 Target audience

• In order to reach the marketing goal it is critical to constantly keep in mind

the people to whom who we are trying to sell. Effective marketing plan
divides the public into identifiable marketing segments to which it can
approach with appropriately designed appeals. Despite this, however, it
should also be kept in mind that enterprise-wide information integration is
critical to keeping a clearly identifiable business identity.
 Unique selling proposition (USP)

• The USP is an old concept, but no less applicable than it has been for years.
In order to sell the product in the vast ocean of like products, it is necessary to
determine how that product is different, and how it stands above the rest. It is
only after the company determines this difference and brought it to the
market's attention then only it will be successful in selling efforts.
Unfortunately, this is often not enough. Instead, the firm might have to
identify different USPs that appeal to different market segments.
 Marketing Budget

• An important aspect of any marketing plan is budget. This section will help to determine
your exact financial needs for thorough marketing and advertising of products. Marketing
strategy is likely to be implemented in several phases. Hence, the budgetary requirements for
each phase of marketing activities should be specified clearly. Firm should also offer a
classification of advertising costs depending on which advertising media. This ought to
include enough detail to track expenses month by month and follow up on plan-vs.-actual
analysis. Normally a plan will also include specific sales tactics, programs, management
responsibilities, promotion, and other elements. The expense budget is a bare minimum.
 Marketing goals and objectives

• Marketing plan should state clearly the marketing goal and objectives of the firm. No plans
can be developed without setting objectives. Every business markets its products or services
with certain goals and objectives in mind. While the ultimate objective of any marketing plan
is to sell more products, there could also be other goals for marketing. For example, firm
may want its target audience to view its products or services in a certain light as opposed to
another. Firm may want its prospective customers to perceive its products as a necessity
rather than a luxury item. Hence, marketing efforts will be aimed at such goals, which is why
it is vital that marketing plan lists all these goals and objectives clearly. In addition to listing
the marketing goals, it is also required to mention how firm is planning to achieve these
goals through the marketing and promotional activities. Marketing objectives should be
specific, measurable, achievable, and realistic and time bound.
 Marketing methodology

• Marketing pan need to determine how firm is going to

accomplish the marketing goal and objectives. What tools
will be used to reach these goals? Marketing methodology
clearly defines the pathway to carry on the marketing
activities.
 Market Segmentation

• The market audience is made up of a diverse group of people. Segmenting that audience and
delivering brand messages, communications, and content is critical to engaging them. The
content of marketing plan must be customized to each segment of audience. Otherwise it will
be difficult to connect with people. Market segmentation will help the firm to spread
messages, to raise brand awareness, and to boost business. Marketing plan should be clear
about who are the target audience for business is. If the firm is planning to sell its products in
different market segments, then a complete analysis of all the market segments should be
available, as also customers’ profiles from each of these segments. What are the factors that
define firm’s target market? Why will firm’s products appeal to its audience? These are two
vital questions that should be answered by the market analysis.
 Product details

• A good marketing plan needs to have as detailed a product description as possible. Not only
the types of products the firm is selling as well as their features and benefits, but also need to
list the disadvantages and ways to counter these negatives. The brand name of products, as
well as any safety instructions that need to be followed when using the products should also
be specified. Other necessary information that needs to be mentioned in this section of
marketing plan includes packaging information, warranties and guarantees that will be
provided with the products, information relating to repair of damaged products, and also
customer support information.
 Pricing details

• No marketing plan is complete without adequate information regarding the pricing of

products and services. The pricing strategy of the products should be mentioned, as well as
the logic behind the pricing. The firm needs to be clear why the pricing is competitive and
how it will help to attract the customers. This section can also include information regarding
discounts and rebates that firm may offer with your products and services. If the company
plans to have annual sales or offer discounts based on seasonal events, then it needs to detail
all this in marketing plan.
 Integration

• Content of marketing plan must be fully integrated into larger business

marketing efforts. There is perhaps no better way to surround consumers with
branded experiences than through an integrated marketing plan that includes
both online and offline content marketing as a driver of conversations,
sharing, and powerful word-of-mouth and brand loyalty.