The Strategic Marketing Planning Process STU

MKT 601
Strategic Marketing
Dr. Somkiat Mansumitrchai
Strategic Marketing
Planning Process
Dr. Somkiat Mansumitrchai
The Strategic Marketing

Planning Process
Framework
Copyright: Dr. Somkiat Mansumitrchai

Mission, Value Strategies, and Market Definition
Internal Analysis External Analysis

Customer Analysis
Industry Analysis
Competitor Analysis
Analysis of Distribution
and Suppliers
Strengths and Weaknesses Opportunities and Threats
From analysis to strategy
Corporate Objectives and Corporate Strategies
Marketing Objectives and Marketing Strategies
Objectives and Strategies for Organization and

Marketing Instruments Implementation of Marketing
1.1 The Strategic

Marketing Planning
Strategicmarketing planning is
increasingly important for companies
for a variety of reasons. Some of these
include.

1.Companies increasingly are faced
with a turbulent economic
environment.
Technological developments have
caused products to have increasingly
shorter life cycles.
2. Developments in information and

communications technology since the
1990s are responsible for the growth of
the global network economy.
3. A third trend is that governments in

many countries are striving to
accommodate market forces.
(Postal services, energy, and health care
are placing more emphasis on listening to
the customer)

4. Finally, consumers are become more
independent, are learning more, and
presumably are placing a higher value
on products and services.
These changes open up opportunities

never before available.
On the other hand, companies face
increasing competition.
As a result, companies need to respond

to their ever-changing environment
with increasing speed and more highly
developed strategic plans.

1.2 Marketing Concept

1.2.1 Marketing Theory
1.2.2 Development of the Marketing
Concept Before 2000
1.2.3 Branding, Core Competencies, and
Customer Relations

1.2.4 A New Marketing Concept
1.2.5 Marketing as Strategy and Tactics


Marketing can be interpreted in different
ways.

Marketing can be defined as
1. As an organizational culture
2. As a strategy
3. As tactics

As an organizational culture (the marketing
concept or marketing paradigm) a set of
values and beliefs that drives the
organization to make a fundamental
commitment to serving customers needs as
the path to sustained profitability.


As a strategy (defining target markets and
positioning product offerings)
As tactics (the day-to-day activities of the
four marketing instruments-product
development, pricing, distribution, and
communication)
Marketing Concept or Paradigm

Level in Marketing Theory
determines
developing
Marketing Strategy,
which provides
guidelines for
Marketing Instruments

1.2.2 Development of the Marketing
Concept Before 2000
Customer Relations

1.2.2 Development of the Marketing Concept

Before 2000
Kotler (1967) introduced the concept that
companies must be both customer-and market
driven.
1.2.2 Development of the Marketing Concept

Before 2000
The strategic marketing concept states that a
company should pay attention to
Customers (as in the classic marketing concept)
Competitors (not just to be better but also perhaps to
collaborate)
Long-term relationships (including developing

products for which there is a latent need and thus a
potential demand)
Other interest groups inside and outside the
organization (such as distributors, employees,
suppliers, financiers)

There issues (customers, competitors, long term

relationships, other interest groups) is called
Market Orientation
Market orientation consists of three
components.
1. A customer-oriented philosophy would focus

on the following questions.
Does the company make reasonable promises,
and is it able to keep these promises?
Are customers treated as individuals?
2. A competitor-orientation philosophy
Does the company has a lot of information
about individual competitors?
Is that information analyzed and distributed
throughout the organization?
Does the company know when it should
respond to actions of competitors?

2. A competitor-orientation philosophy
How the company differentiate itself from
competitors?
What are sustainable competitive advantages
given the marketplace?
3. Interfunctional Coordination (integrated

decision making)
It is important to realize whether information is
shared within the company are the strategies
for various areas integrated?
Are joint decisions made?
Is the whole organization truly interested in its
customers?
Theoretical Developments
in Marketing History

Period Marketing Emphasis On
Until Classic marketing Customer wishes

Circa 1980
1980-1990 Strategic marketing Competitive advantages,

long term
1990-2000 Relationship marketing Direct realtionships with customers,

and offering services
Consumer cencept Customer satisfaction and loyalty

Customer Relations
In summary, marketing concept focuses on
the demand side of the market (Customers).
In marketing practice, attention is being
paid to on the supply side of the market
(Brands).
Brand theory suggests that companies

should try to create brands with high name
awareness and strong, favorable, and unique
associations.

In general, customers respond more

favorably to the marketing instruments of a
brand they know than to the marketing
instruments of brands they dont know.
It is helpful to have a clear, positive, and
unique brand image (including product,
service and corporate brands)
One of the key elements of effective brand

management is consistency. This has two
elements (specialization and stability over
time).
Specialization
Brands and firms that do not clearly choose
a strategy for brand positioning will not get
into the customers minds.

Stability over time

It takes time to make customers aware of
the brand identity, and so brand
management is a long-term issue. (Toyota
in the U.S.)
The issue of branding is strongly related to

the resource-base view of the firm and to
the focus on core competencies.
These approaches suggest that the source of
superior performance is the possession and
development of distinctive and hard to
imitate resources.
Resource-base
Skills, technology, innovation, creation,
knowledge (marketing & management),
employees, finance etc.
Microsoft, Sony

More innovations Customers get used to
innovations
Innovation Spiral

1.2.4 A New Marketing Concept
1.2.4 Toward a New Marketing Concept

A new marketing concept states that a
manager should find a balance between the
customer approach and the brand approach
when selecting the companys positioning.

Marketing as a
Balance between
Customer and Brand
Customers Company and

brand
Needs Unique strengths
Marketing Concept
Value Marketing
Balancing customer needs and brand identity

Based on the marketing concept outlined,
the marketing strategy and tactics are
planned.

Marketing Concept (Organizational culture)
Value Marketing and Marketing Strategy
Focus on
Customer needs and services
Brand reputation
Guidelines for Marketing Strategy

Targeting and positioning
(specialization and long-term orientation)
Guidelines for Marketing Instruments

Product, price, distribution, and
communication

Marketing activities can be divided into four
parts (analysis, planning, implementation,
and control)

Analysis (market research)
Planning (decisions regarding positioning
and communication)
Implementation (execution of campaign)
Control (evaluation of results)


Analysis in strategic marketing refers to
analyzing potential customers (through
market research), competitors, distribution
structures and the suppliers, the industry
structure and macroenvironment (e.g.
demographic developments), and internal
factors (companys brand)

Planning activities in strategic marketing
should be able to answer these questions.
1. Where (and when) to compete? These
refers to the choice of markets, positions
and periods.

2. How to compete? This refer to the choice
of sustainable competitive advantages
including positioning, target audience
and segmentation, and determination of
the objectives regarding the use of
marketing mix elements.

1.3 Levels within a Company
1.3.1 Company or Corporate Level
1.3.2 Division level and Strategic Business
Unit Level (SBU)
1.3.3 Product Level and Marketing Mix
Level
1.3.4 The Position of the Brand
Top management
(Corporate level) C
SBUs markets SBU 1 SBU 2 SBU n
Products/brands P1,1 P1,2 P1,.. P2,1 P2,2 P2,.. Pn,1 Pn,2 Pn,..
Marketing Prod 1,1 Price 1,1 Place 1,1 Prom 1,1

instruments
Prod n,1 Price n,1 Place n,1 Prom n,1
Top management
(Corporate level) C

instruments

1.3.1 Company or Corporate Level
It is the top level, and it relates to the
company as a whole.
All the different products a company puts
out on the various markets are collectively
designated as the product mix or the
assortment.

1.3.2 Division Level and Strategic Business
Unit Level
A division is a operating unit within a
company. A division may include several
product groups (called a product line or a
product category).

A strategic business unit (also called a
strategic product group) is concentrated on a
single product group (and therefore usually
on one market).

Top management
(Corporate level) C

instruments

1.3.3 Product Level and Marketing Mix Level
A product is an item (good or service) that is
offered in a market. A product may aim at
different target audiences (different sizes or
packages and flavors.
Top management
(Corporate level) C

instruments

A combination of a product and a target
audience is usually called a product-market
combination.

Typically, four categories of marketing mix
elements are distinguished.
Product (packaging, size)
Price (different prices)
Place (same or different distribution)
Promotion (advertising)

Because marketing mix elements are applied
to products, the marketing mix level
corresponds to the product level.

A brand is a word, name, symbol, letter or
picture (or a combination of these elements)
used by a company to distinguish its products
from those of the competition.

Brand names play an important role not only at
the product level but at all three levels (Top
management, SBU, Products and Brands and
Marketing mix) in the company.
1.4 The Core of the Marketing Strategy

1.4.1 Corporate Strategy: Direction of Growth and
Value Strategy
1.4.2 Marketing Strategy: Target Group and
Positioning

Both corporate strategy and marketing strategy
have to answer the same two questions:
Where are we going to compete? (In which
markets, and with products, and when)
How are we going to compete?

Corporate strategy
Where are we going to compete?
With existing products and brands or with new ones
With existing customers and target groups or with new
ones
Product or Service
Current
Market
Related
New
Current Related New

Corporate strategy
Does the company want to promote itself to customers
on the basis of leadership in quality and innovations,
efficiency and low prices.
Whether the company wants to grow on its own or with
the helps of others (with whom? acquisition or
mergers)

Marketing strategy
Where are we going to compete?
It involves a more detailed description of the target
group.

Marketing strategy
It involves the distinguishing power of the competitive
edge.
What reason would a customer have to purchase this
companys brand instead of another brand.

Marketing strategy
Sustainable competitive advantage means that a
company
Is good at something (has a strength)
That its competitors do not have and that would be
difficult for them to acquire (sustainable)
And that strength is important to customers.
Strength of a company and / or product Weakness of competitor
Relative strength of company and / or product
No reaction from competitor Need of customer
Sustainable competitive advantage
Targeting and positioning
Marketing Instruments
How to Compete
Level Where to Compete (Choice of Competitive Edge)
Company Strategy Determine composition Choice of value strategy or

and desired positions of Choice of partners (with whom)
product groups and
brands (directions of
growth)
Marketing Strategy Specify target groups Brand positioning
Marketing instrument Elaboration of positioning

strategies
THE END

The Strategic Marketing Planning Process STU

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MKT 601

Dr. Somkiat Mansumitrchai

Dr. Somkiat Mansumitrchai

The Strategic Marketing

Copyright: Dr. Somkiat Mansumitrchai

Internal Analysis External Analysis

Strengths and Weaknesses Opportunities and Threats

From analysis to strategy

Corporate Objectives and Corporate Strategies

Marketing Objectives and Marketing Strategies

Objectives and Strategies for Organization and

1.1 The Strategic

Copyright: Dr. Somkiat Mansumitrchai

Copyright: Dr. Somkiat Mansumitrchai

Copyright: Dr. Somkiat Mansumitrchai

2. Developments in information and

Copyright: Dr. Somkiat Mansumitrchai

3. A third trend is that governments in

Copyright: Dr. Somkiat Mansumitrchai

Copyright: Dr. Somkiat Mansumitrchai

These changes open up opportunities

Copyright: Dr. Somkiat Mansumitrchai

As a result, companies need to respond

Copyright: Dr. Somkiat Mansumitrchai

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

1.2.1 Marketing Theory

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

1.2.1 Marketing Theory

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

1.2.1 Marketing Theory

Copyright: Dr. Somkiat Mansumitrchai

1.2.1 Marketing Theory

Copyright: Dr. Somkiat Mansumitrchai

Marketing Concept or Paradigm

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

1.2 Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

1.2.2 Development of the Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

1.2.2 Development of the Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

Long-term relationships (including developing

Copyright: Dr. Somkiat Mansumitrchai

There issues (customers, competitors, long term

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

1. A customer-oriented philosophy would focus

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

Copyright: Dr. Somkiat Mansumitrchai

Copyright: Dr. Somkiat Mansumitrchai

1.2 Marketing Concept

3. Interfunctional Coordination (integrated

Copyright: Dr. Somkiat Mansumitrchai