Overview of Strategic Marketing Planning

1. Effective
Strategic Marketing Planning
Nigel S Jones
BEng MSc MIDM MCIM FInstSMM
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2. • Provide and overview of the Strategic Marketing
Planning Process
• Introduce some key planning tools / technique
2
Objectives

3. Definition of Marketing
3
The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably.

4. Definition of Marketing
4

5. Purpose of Strategic Marketing Planning
5
Strategy is the way in which an organisation achieves its goals
Principle focus Marketing Planning:
• Identification and creation of a competitive advantage
• Identify and capitalise on opportunities

6. Where
are we
now?
Where do
we want
to be?
How are
we going
to get
there?
How will
we know
when we
are there?
The Planning Process
6

7. 4 Key Phases
Phase 1 - Goal Setting
Phase 2 - Situation Analysis
Phase 3 - Strategy Formation
Phase 4 - Resource Allocation / Implementation
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8. 4 Key Phases
1. Vision / Mission
Phase 1
Goal Setting
Phase 2
Situation Analysis
Phase 3
Strategy Formation
Phase 4
Resource Allocation /
Implementation
2. Corporate Objectives
4. SWOT Analysis
5. Issues to be addressed
3. Marketing Audit
6. Marketing Objectives
7. Marketing Strategies
9. Budget
10. 1st Year Implementation Plan
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Measurement
and Review

9. Phase 1 - Goal Setting
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10. Vision Statement
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Where your organisation wants to go
What it wants to be
Should be a source of inspiration
Example:
To become the most successful premium
manufacturer in the car industry

11. Mission Statement
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Fundamental purpose of organisation
What it does to achieve vision
Defines critical processes

12. Vision Statement
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Example:
To be the worldwide leader in sharing delicious
tastes and creating joyful memories

13. Mission Statement
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Example:
Krispy Kreme seeks to maintain its loyal customer base and attract
new customers in both current and developing markets with its
commitment to quality and consistency in its doughnuts, other
baked goods, and beverages .
Krispy Kreme will lead the industry via a commitment to
innovation, service, growth, and quality . Its channel system and
franchise system ensure profitability for retailers and franchisees
while providing convenient access for customers. Krispy Kreme
desires to instill the belief that the company is a set of capabilities,
not just a product or brand .

14. Corporate Mission & Objectives
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• Statement of the organisation’s role
• Business Definition – distinctive competences
• Indication of the future market performance
• Summary of financial performance
• Typically 3 – 5 year planning period

15. 15
Phase 2 - Situation Analysis

16. Example - The ABC Motor Company
Established 16 November 2010
Sports Coupe´
Family Hybrid 4 x 4
Small Hatchback
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17. Market Segments
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Group of customers with same or similar requirements
Each has own critical success factors – address to
succeed
Affects marketing / promotional mix

18. Market Segments
18
Types of Segmentation
• Geographic Segmentation
• Demographic Segmentation – age, socio, gender
• Psychographic – lifestyle, behavioral
http://www.strategicbusinessinsights.com/vals/presurvey.shtml

19. Example - The ABC Motor Company
Established 16 November 2010
Sports Coupe´
Family Hybrid 4 x 4
Small Hatchback
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Segment: Young Drivers - C1C2D
Limited disposable income
Segment: Families - BC1C2
Moderate disposable income
Segment: Executive – ABC1
Large disposable income
CSF: Cheap to insure!
CSF: Safe and economical
CSF: Indicate status – excite!

20. SWOT Analysis
Example - ABC Motor Company
Two areas of analysis:
Internal – Strengths and Weaknesses
External – Opportunities and Threats
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21. Internal Analysis
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22. Strengths
• Very strong loyal UK following
• Low insurance grouping for hatchback and family model
• Recent addition of hybrid family car
• Excellent Research and Development (R&D) Resources
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SWOT - Internal Analysis
Example - ABC Motor Company

23. Weaknesses
• Marketing / Brand Development – small department
• Customer Relations / Database
• Not a strong brand yet – perception of coupe as exec model
• Product Reliability Issues
• Sports Coupe – very heavy on fuel and high emissions
• Hatchback now a bit long in the tooth – spec falling behind
competition
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SWOT - Internal Analysis
Example - ABC Motor Company

24. External Analysis
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25. Considers Opportunities and Threats
PEST or PESTLE Model:
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External Analysis
Political
Economic
Social
Technology
Legal
Environmental

26. SWOT Analysis ABC Motor Company
Political
• Potential increased taxation 4 x 4 – not hybrids
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Opportunities
Economic
• Escalating fuel prices – selling point for hybrids
Social
• UK designed and produced vehicles – strong selling feature
in UK market
Technology
• Digital / Social media – inexpensive marketing tools

27. SWOT Analysis ABC Motor Company
Political
• VAT to reach 20% for 2011 will impact sales for at least 1st two
quarters
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Threats
Economic
• Escalating fuel prices
• Sales of new cars still low
Social
• Increasing environmental awareness – impact on performance
cars
Technology
• Development of battery technology – competition from electric
cars

28. • Strength of brand - poor
• Customer Relations / Database - limited
• Product Reliability Issues
• Sports Coupe – very heavy on fuel and high emissions
• Hatchback now a bit long in the tooth – spec falling
behind competition
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Issues to be Addressed from Analysis
Example - ABC Motor Company

29. 29
Phase 3
Strategy Formation

30. High Low
Relative Market Share
(In Relation to Largest Competitor)
BCG Growth Matrix
High
Low
Market Growth
(Annual Rate of
growth)
Divest
Divest
Prioritize
Invest
Star
Cash Cow
Question Mark
Dog
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31. Sports Coupe´Family Hybrid 4 x 4
Small Hatchback
The ABC Motor Company
High Low
Relative Market Share
(In Relation to Largest Competitor)
BCG Growth Matrix
High
Low
Market Growth
(Annual Rate of
growth)
Star
Cash Cow
Question Mark
Dog
31

32. • Develop ABC Motor Company Brand
• Develop Customer Relations / Marketing Database
• Resolve Product Reliability Issues
• Focused marketing for Sports Coupe to increase
market share
• Re-design of Hatchback – to gain larger market share
• Increased marketing on Family Hybrid – Cash Cow
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Marketing Objectives (From Issues)

33. Fundamental Questions
1. Why should customers come to you?
2. Do you deliver what you promise and more?
3. Are your customers delighted?
Or just satisfied?
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Planning Reality Check
Roger Staubach

34. • Emphasizes superiority of brand based upon unique
features and benefits
• Differentiates company from competitors
• Reinforces customers decision to purchase
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Unique Selling Proposition (USP)
(Rosser Reeves, USA)

35. Approach to identifying USP: -
1. Identify you 3 biggest benefits
2. Be unique & specific
3. Solve and industry Performance Gap
• Current issues in the market
• What do you do that your competitors don’t do
4. Condense into one single concise sentence
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Unique Selling Proposition (USP)

36. USP Example
“When it absolutely, positively
has to be there overnight”
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37. Marketing Strategies
Actions taken to achieve objectives
Develop strengths and counter weaknesses
Strategy in terms of: -
• Product
• Price
• Place
• Promotion

38. Marketing Strategies
Product
Policies regarding: -
• Product lines
• Modifications
• Specifications to suit segments
• Product additions / deletions
• Design
• Branding
e.g. Re-design of Hatchback
specification

39. Marketing Strategies
Price
Pricing Policies regarding: -
• Pricing objectives – e.g. max revenue, profit, survival,
market share
• Strategies – Skimming, Penetration, loss leaders etc
• Loyalty discounts
• Pricing for different products
• Pricing for different segments
e.g. reduce price of Coupe to increase market share
and move into “cash cow”

40. Marketing Strategies
Place
Policies regarding: -
• Distribution channels / retailers
• Agents, resellers, franchises
• Customer services levels
e.g. direct marketing

41. Promotion

42. Marketing Strategies
Promotion
Policies regarding the promotional mix: -
• Advertising
• Sales promotion
• Public Relations
• Personal selling
• Direct Marketing
e.g. sales promotions for end of line Hatchback before
re-spec

43. Marketing Strategies
Promotion – 5M’s
• Mission - Objectives
• Money – Cost Implications
• Message – to suit market segment
• Media – Appropriate media
• Measurement – how can the result be measured?

44. Ladder of Engagement

45. 45
Phase 4 - Resource Allocation / Implementation

46. Implementation
Budget / Resources
Strategies and tactics must be aligned with available
resources
Both financial an physical

47. Implementation – e.g. Promotion
Action Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Direct
Marketing

48. Measurement ROI (Metrics)
• Increase in turnover
• Advertising – impressions from view listener volumes
• Consumer surveys
• Sales promotions – return of coupons / loyalty cards
• Wide range of methods to measure digital marketing
• Analytics
• Number of conversations regarding your product
• Number of tweets / retweets
• Number of followers
• Number impressions
• Number of views (video / slides)
• Etc etc.

49. Measurement ROI (Metrics)
Financial Analysis
• Cost per enquiry (CPE) / Response (CPR)
• Response%
• Conversion Ratios
• Cost per order (CPO)
• Return on investment
• Lifetime Value

50. Further Reading
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51. herdmanjones
Strategic Marketing Consultants
info@herdmanjones.co.uk
www.herdmanjones.co.uk
51
NigelSJones
Nigel S Jones
Herdman Jones Associates Ltd