BUSINESS

CONSIDERATIONS
Marketing plan
- is an operational document that
outlines an advertising strategy
that an organization will
implement to generate leads and
reach its target market.
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It is designed to provide answers to
three basic questions
Where have we been?

Where do we want to go?

How do we get there?

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 Characteristics of a Marketing Plan
A Marketing Plan should be designed in a way to meet
following criteria’s:
• Provide a strategy to meet company mission or goal.
• Be based on proper facts (marketing research) and valid
assumptions(considering available resources such as
finance, Equipment, human resource, technology etc.
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• Describe an appropriate organization of the
plan for implementation of marketing
activities.
• Be simple and short but the plan should not be
short that details on how to accomplish that
goal is excluded.
• Be flexible, means of scenarios changes then
plan should have the enough flexibility to
incorporate counter strategies.
 How to create a Marketing
Plan?
•Write a simple executive summary
•Set metric-driven marketing goals
•Outline your user personas
•Research all of your competitors 6
•Set accurate key baselines and metrics
•Create an actionable marketing Strategy
•Set tracking or reporting guidelines
•Make it look professional with a
marketing plan template
 Parts of a Marketing Plan
oSimple Executive Summary – Starting your
marketing plan off on the right foot is
important
oMetric-Driven Marketing Goals – This is one
of the most important part of the entire
marketing plan.
oTarget user personas – is an important part
of marketing plan that should not be
overlooked. 8
oAccurate competitor Research – this section will
help you identify who your competitors are, what
they are doing and how you could carve yourself a
place alongside them in your niche-and ideally,
surpass them.
oKey Baseline – its pretty hard to plan for the future
if you don’t know where your business stands right
now.
oActionable Marketing Strategy –
oResults tracking guidelines – Close your marketing
plan with a brief explanation on how you plan to 9

track or measure your results.

Financial Requirements
 An enterprise has two types of
financial requirements
•Fixed Capital
Helps in purchasing the fixed assets such as land,
buildings, and furniture
Also called as long term capital
Amounts depend on the nature and size of the
business
•Working Capital
Implies the amount of money required
for the day to day management of the
business
Covers expenses on raw materials,
wages and salaries, advertising, rent,
fuel, electricity and water
Organizational Strategy
• An organizational Strategy is the sum of the
actions a company intends to take to achieve
long term goals.
• Is a plan to evolve from a current situation to a
future desired status through actions in different
business dimensions.
• Organizational Strategy must arise from a
company’s mission, which explains why a
company is in business. Every activity in
the company should seek to fill this
purpose, the mission thus guiding all
strategic decisions. A company’s vision
describes what the company will have
achieve in fulfilling its mission.
Sustainable Competitive Advantage

Resources - the assets, capabilities, processes,

employee time, information, and knowledge
that an organization controls.

Competitive Advantage – providing greater

value for customers than competitors can.

Sustainable Competitive Advantage –

a competitive advantage that other companies have tried
unsuccessfully to duplicate and have for the moment ,
stopped trying to duplicate.
Requirements for Sustainable Competitive
Advantage
Imperfectly
Imitable
Resources

Non- Sustainable
Sustainable Valuable
Competitive
Resources Advantage Resources

Rare
Resources
 Strategy Making Process
Assess need for strategic change
AVOID COMPETITIVE INERTIA LOOK FOR STRATEGIC DISSONANCE

Conduct a situational analysis

Choose strategic alternatives

 Assessing the Need for Strategic
Change
Avoid
• this is step Competitive • A discrepancy
Inertia between a company’s
one of the • a reluctance to intended strategy and
strategic change strategies or the strategic actions
process. competitive practices managers take when
that have been implementing that
successful in the strategy.
Assessment past. Look for
Strategic
Dissonance
 Situational Analysis
Internal

Strengths Weaknesses

Negative
Positive

SWOT
Opportunities Threats
External
 Situational Analysis
Strengths Opportunities
I
E
N
T
• Distinctive X
• Environmental Scanning
T
E Competence
W E • Strategic Groups
R
• Core R • Shadow-Strategy Task
N Force
N
A Capability A
L
Weaknesses L Threats
Strategic Groups
Core Firms – central companies in a strategic group

Secondary Firms – firms that follow related, but somewhat

different strategies than core firms

Transient Firms – companies whose strategies change from

one strategic position to the other

Shadow-Strategy Task Force – seeks out its own company’s

weaknesses and determine how other companies could exploit
them
 Choosing Strategic Alternatives

Risk Avoiding Risk Seeking Strategic Reference

Strategy Points
Strategy
• Targets used by managers
• Extended or create
• Protect an a sustainable
to determine if the firm has
developed the core
existing competitive competencies it needs to
competitive advantage. achieve a sustainable
competitive advantage.
advantage.
 Corporate–Level Strategies

The overall organizational

strategy that addresses the Two Distinctly
question: What business (es)
are we in or should we be in?
Different Types

Portfolio Grand
Strategies Strategies
Portfolio Strategy
Acquisitions, unrelated
diversification, related
diversification,
single businesses

• Stars
• Question marks
BCG Matrix • Cash Cows
• Dogs
Grand Strategies
Growth Strategy –focuses
on increasing profits,
revenues, market share, or
number of places doing
business

Stability Strategy –focuses on

improving the way in which the
company sells the same products
or services to the same
customers

Retrenchment Strategy –focuses on turning

around very poor company performances by
shrinking the size or scope of the business
Industry-level Strategies
Five Industry
Forces

Adaptive Positioning
Strategies Strategies
Five Industry Forces
Industry
Rivalry

Threat of new Threat of Substitute

Entrants products
Degree of
competitive
pressure

Bargaining power of Bargaining power

customers of Suppliers
 Positioning Strategies
Cost Leadership

Differentiation

Focus Strategy
 Adaptive Strategies

Defenders Prospectors Analyzers Reactors

• Seek • Seek fast • Blend of • Use an

moderate growth defender and inconsistent
prospector
growth • Emphasize strategies
strategy
• Retain risk taking • Imitate other • Respond to
customers innovation successes change
Strategic Options
Strategic Options
Strategic options generation is the process of
establishing a choice of possible future strategies.
Strategic choice is a key step within the strategic
planning process involves in Generation of strategic
options, (e.g. growth, acquisition, diversification or
concentration), Evaluation of the options to assess
their relative merits and feasibility.
 Broad
Cost Leadership Differentiation
Scope

Narrow

Differentiation
Cost Focus Focus
 1. Cost Leadership strategy

•Maintaining this strategy requires a

continuous search for cost reductions
in all aspects of the business.
 Cost Leadership Type
Type 1: Cost leadership – low cost strategy
• Produces products/services at lowest cost and offers them
to a wide range of customers at the lowest price available
on the market.
Type 2: Cost leadership – best value strategy
• Produces products/services at lowest cost and offers them
to a wide range of customers at the lowest price compared
to a rivals product with similar attributes.
 2. Differentiation Strategy
•In a differentiation strategy a firm
seeks to be unique in its industry
along some dimensions that are
widely valued by buyers.
 3. Focus Strategy
•In this strategy the firm
concentrates on a select few
target market.
 GRAND STRATEGIES

•A Grand Strategy states the means that

will be used to achieve long-term
objectives.
 Concentration Strategy
• A strategic approach in which a business focuses
on a single market or product.
• With a single focus, management can develop in-
depth knowledge of the business, the market , the
organization, the organization’s competitors and
it’s customers.
 Product Development Strategy

• Developing new products or modifying

existing product so they appear new and
offering those products to current or new
markets.
THE END😉