Market Planning Flashcards
Strategic market planning
Strategic fit between the organisations goals and capabilities and it’s hanging market opportunities”
Importance of market planning
Ensures marketing mix meets needs of customers
Helps companies seek opportunities to market other products in new markets
Enables companies to determine allocation of resources
Helps a company understand, create , and deliver customer value on a sustainable basis
Helps in a company’s long term survival and growth
Steps In a strategic marketing planning process
Define purpose and mission
Set objectives and goals
Carrying out strategic audits
Designing the business portfolio
Developing detailed marketing plans
Organisation and implementation
Evaluation and control
Questions and stages in marketing planning process
Where are we now - business mission
How did we get there- marketing audit
Where are we heading - SWOT
Where would we like to be- marketing objectives
How do we get there- core strategy,competitive strategy,marketing mix decisions, organisation and implementation
Are we on course- control
Business mission
Organisations purpose, usually setting out its competitive domain, which distinguishes the business from others of its type. It is enduring and specific to the organisation
Mission statement - what the bus wants to accomplish in the larger environment
- Enduring and specific to the organisation
- Abstract and qualitative in nature
- Provides strategic direction to the organisation
- Helps the business set quantitative goals and objectives
- reflects the organisations identify
- can be product oriented or market oriented
2) objectives and goals
Mission statement leads to formulation of business goals
They help a company organise and focus their resources
Companies set clear objectives and measurable goals
Companies also reorganise their businesses and restructure them around promises of mission statements
3) marketing audit
A systematic examination of a businesses marketing environment, objectives, strategies, and activities, with a view to identifying key strategic issues, problem areas, and opportunities
Let’s firm be realistic about current situation and future goals
Analysis of micro and macro environment, nature and intensity of comp
Identify threats, challenges, strengths, opportunities and weaknesses
Formulate appropriate responses and strategies
4) design a business portfolio
Collection of businesses and products that make up the company
Once previous planning steps have been completed, it is important to organise the areas of marketing activities by deciding
- Which products should be sold in which markets
- which products and brands have a future depending on their contribution to market share and profitability and what that future should be
- how products and brands should be marketed against their competitors
Business portfolio (2)
Deciding which products should be sold in which markets : using the ansoff matrix
Ansoff matrix helps simplify a businesses competitive situation into two simple variables- products and markets - and helps companies decide their strategic thrust
Market penetration (existing products/existing markets)
Product development (new products / existing markets)
Market development (existing products new markets )
Market diversification (new products/new markets)
Deciding the future of individual products and brands
Use the BCG matrix
Boston consulting group matrix helps businesses to decide the future of each individual product and brand in their portfolio depending on their relative market share, contribution to profitability , and future growth prospects
Stars (high growth, high market share)
Cash cows( low growth, high market share)
Question marks (high growth, low market share)
Dogs (low growth, low market share )
Porters competitive strategies model
Helps determine the type of competitive strategy that an organisation can adapt depending on market and positioning
Cost leadership : being the most cost effective with focus on reducing costs(industry wide)
Differentiation : being the most unique with focus on differentiating product and service(industry wide)
Focus (cost): minimising costs within a focused market
Focus (differentiation) : being differentiated within a focused market
Overall portfolio analysis
Whatever tool used
An overall portfolio analysis should indicate the markets that are attractive to the firm relative to its size and scale, the firms strengths in each of these markets, and relative importance of the market
Stages of a marketing planning process 5
Developed detailed marketing plans: focuses on how to achieve the marketing objectives with specific details and plans on :
What types of consumers are to be targeted
What types of products and brands are to be sold to which consumer market segments
What types of competitor products and brands against which they need to be positioned
What types of competitor positioning needs to be adopted
What sort of competitive advantage the positioning can be derived from
What the actual elements of the marketing mix should be sold
Target market , competitor targets , comp adv, marketing mix decisions
Target market: a consumer market segment that has been selected as a focus for the company’s offering or communications that will be targeted for marketing
Competitor targets: the organisations and other products and brands against which a company chooses to compete directly
Competitive advantage: the selection of one or more customer choice criteria that sets the company apart from its competition and where the advantage derives from
Marketing mix decisions: regarding each of the elements of the marketing mix
6,7 stages
6 organisation and implementation
Carry out the plan
Design action strategies
Plan budgets
Plan timescales
7) evaluation and control
Measure results and performance
Evaluate
Take corrective action where necessary
