MARKETING STRATEGIES AND PLANNING

Unit -1
 Course Outcomes : 1

• Create a hypothetical strategic marketing plan

for a product or service, incorporating key
elements.
 UNIT-I
STRATEGIC MARKETING AND PLANNING
• A marketing strategy covers a company's
overall approach for promoting its brand to a
target audience.

• The process involves research, goal-setting,

and positioning.

• A completed marketing strategy typically

includes brand objectives, target audience
personas, marketing channels, key
performance indicators, and more.
Significance of Marketing Strategy
 SIGNIFICANCE OF MARKETING STRATEGY

• 1. Helps Win over the Market

• 2. Create Awareness
• 3. Build a New Customer Base Every Time
• 4. Plan the marketing budgets
• While the strategy describes what the
marketing objectives are, the plan
describes how those objectives are going to be
achieved.
• Segmentation
• Targeting and positioning
• Promotional tactics
• Monitoring and evaluation
• Marketing plan
• A marketing strategy will detail the
advertising, outreach, and public relations
campaigns to be carried out by a firm,
including how the company will measure the
effect of these initiatives.

• They will typically follow the four Ps. The

functions and components of a marketing plan
include market research to support pricing
decisions and new market entries
SIX FACTORS THAT CAN AFFECT A BUSINESS MARKETING STRATEGY

• Internal factors
• Corporate objectives
• Human resources
• Communication tactics
• Operational issues
• Business culture
• Social factors
• Competition factors
• Economic factors
• Regulatory factors
• Technological factors
 STEPS IN DEVELOPING MARKETING
STRATEGIES AND PLANS
• The task of any business is to deliver customer
value at a profit.

• In a hypercompetitive economy with

increasingly informed buyers faced with
abundant choices, a company can win only by
fine tuning the value delivery process and
choosing, providing, and communicating
superior value.
 The Value Delivery Process
• The traditional view of marketing is that the firm makes
something and then sells it, with marketing taking place
in the selling process.
• Companies that subscribe to this view have the best
chance of This chapter begins by examining some of the
strategic marketing implications in creating customer
value.
• We’ll look at several perspectives on planning and
describe how to draw up a formal marketing plan.
• Developing Marketing Strategies and Plans succeeding
in economies marked by goods shortages where
consumers are not fussy about quality, features, or style
—for example, basic staple goods in developing markets
 THE VALUE CHAIN
• The Value Chain Harvard’s Michael Porter has
proposed the value chain as a tool for identifying
ways to create more customer value.
• According to this model, every firm is a synthesis
of activities performed to design, produce,
market, deliver, and support its product.
• The value chain identifies nine strategically
relevant activities—five primary and four support
activities—that create value and cost in a specific
business.
• Value Delivery Process
Value creation and delivery sequence phases:
• 1. Assessing market opportunity and customer value
which involve environment scanning and developing
insights about customer needs and want
• 2. Choosing the value includes critical decisions to STP
which essence / core strategic marketing.
• 3. Designing value relates to decision involving product
strategy, new offering and pricing
• 4. Delivering value focuses on distribution and access
issues.
• 5. Communicating value through integrated marketing
communication , choosing among the various choice in
mass and personalized media.
• The value chain identifies nine strategically relevant activities—
five primary and four support activities—that create value and
cost in a specific business.
• The primary activities are
• (1) inbound logistics, or bringing materials into the business.
• (2) operations, or converting materials into final products.
• (3) outbound logistics, or shipping out final products.
• (4) marketing, which includes sales; and
• (5) service. Specialized departments handle the support activities
—
• (1) procurement,
• (2) technology development,
• (3) human resource management, and
• (4) firm infrastructure. (Infrastructure covers the costs of general
management, planning, finance, accounting, legal, and
government affairs.)
 A Holistic Marketing Orientation and
Customer Value
• A Holistic Marketing Orientation and Customer Value One view of
holistic marketing sees it as “integrating the value exploration, value
creation, and value delivery activities with the purpose of building
long-term, mutually satisfying relationships and co prosperity among
key stakeholders.” Holistic marketers thus succeed by managing a
superior value chain that delivers a high level of product quality,
service, and speed.
• They achieve profitable growth by expanding customer share, building
customer loyalty, and capturing customer lifetime value. Holistic
marketers address three key management questions:
• 1. Value exploration—How a company identifies new value
opportunities
• 2. Value creation—How a company efficiently creates more promising
new value offerings
• 3. Value delivery—How a company uses its capabilities and
infrastructure to deliver the new value offerings more efficiently
 Marketing Plan
• A Marketing plan is the central instrument for directing and
coordinating the marketing effort.
• It operates at a Strategic and Tactical level.
• Levels of a Marketing Plan
– Strategic
– Target marketing decisions
– Value proposition
– Analysis of marketing opportunities
– Tactical
– Product features
– Promotion
– Pricing
– Sales channels
– Service
 CONTENTS OF A MARKETING PLAN

A marketing plan contains an executive

summary, statement of the current marketing
situation, analysis of the opportunities and
issues, objectives of the firm, marketing
strategy to be pursued, action programs to be
taken, projected Profit-and-loss statement, and
the control measures to be taken.
The 7 elements of a marketing plan
traditionally include the 7 Ps of marketing, also
called the marketing mix: product, price, place,
promotion, packaging, positioning, and people.
 MARKETING ENVIRONMENT
• The marketing environment refers to all internal
and external factors, which directly or indirectly
influence the organization’s decisions related to
marketing activities.
• Internal factors are within the control of an
organization; whereas, external factors do not fall
within its control.
• The external factors include government,
technological, economical, social, and competitive
forces; whereas, organization’s strengths,
weaknesses, and competencies form the part of
internal factors.
• Marketers try to predict the changes, which
might take place in future, by monitoring the
marketing environment.

• These changes may create threats and

opportunities for the business. With these
changes, marketers continue to modify their
strategies and plans.

• Today’s marketing environment is

characterized by numerous features.
• 2.1. Specific and General Forces: It refers to different forces that affect the marketing
environment. Specific forces include those forces, which directly affect the activities of the
organization.
Examples of specific forces are customers and investors. General forces are those forces, which
indirectly affect the organization. Examples of general forces are social, political, legal, and
technological factors.
• 2.2 Complexity: It implies that a marketing environment include number of factors, conditions,
and
influences. The interaction among all these elements makes the marketing environment complex
in nature.
• 2.3. Vibrancy: Vibrancy implies the dynamic nature of the marketing environment. A large number
of forces outline the marketing environment, which does not remain stable and changes over
time. Marketers may have the ability to control some of the forces; however, they fail to control all
the forces. However, understanding the vibrant nature of marketing environment may give an
opportunity to marketers to gain edge over competitors.
• 2.4. Uncertainty: It implies that market forces are unpredictable in nature. Every marketer tries to
predict market forces to make strategies and update their plans. It may be difficult to predict
some of the changes, which occurs frequently. For example, customer tastes for clothes change
frequently. Thus, fashion industry suffers a great uncertainty. The fashion may live for few days or
may be years.
• 2.5. Relativity: It explains the reasons for differences in demand in different countries. The product
demand of any particular industry, organization, or product may vary depending upon the country,
region, or culture. For example, sarees are the traditional dress of women in India, thus, it is
always in demand. However, in any other western country the demand of saree may be zero.
ASSESSING INDUSTRY ATTRACTIVENESS WITH
PORTER’S FIVE FORCES MODEL.
• Michael Porter's five-force strategic analysis model, introduced in a
1979 article published in the Harvard Business Review, remains a
fundamental tool for strategic analysts plotting the competitive
landscape of an industry.
• Strategic analysis at the time of Porter's article tended not only to
love acronyms (SWOT, PEST, PESTEL, BCG Matrix, ETPS, etc.) but also
models focused on the internal dynamics of individual companies.

• Porter set out five forces at play in a given industry:

– Internal competition,
– The potential for new entrants,
– The negotiating power of suppliers,
– The negotiating power of customers, and the ability of customers to find
substitutes.
 COMPETITIVE RIVALS

• Porter's first force is what we usually mean when discussing

business competition.
• We think of Pepsi and Coca-Cola for soft drinks, Apple and
Samsung for smart phones, Nike and Adidas for sneakers, and
Ford and General Motors for autos.
• Indeed, some of these rivalries are so influential that consumers
split almost culturally among those who have an iPhone, drive a
Ford, or prefer Netflix to Hulu.
Ex: Tubi TV, Yupp TV MX Player, Plex: Stream Movies & TV
• Business competition chiefly a war among rivals.
• Such rivalries can lead to price wars, high-priced marketing
battles, and races for slight advances that could mean a
competitive advantage.
• These tactics can stimulate companies to make ever better
products but also erode profits and market stability.
 POTENTIAL FOR NEW ENTRANTS IN AN INDUSTRY

• Potential new entrants to an industry are firms

that do not currently compete in the industry
but may in the future. New entrants tend to
reduce the profit potential of an industry by
increasing its competitiveness.
• Ex: A clothing designer selling their
merchandise on an online platform may face a
high threat of new entrants from other small
businesses who may enter the market and sell
similar designs at a comparable price
 SUPPLIER POWER

• Suppliers are powerful when they are the only

source of something important that a firm
needs, can differentiate their product, or have
strong brands.
• When the power of suppliers in an industry is
high, this raises costs or otherwise limits the
resources a firm needs. Here are some factors
used to measure the supplier power of an
industry:
• Ex: timber company, electricity company, and
toolmaker (Hemp , Cork).
 Customer Power
• When customers have more strength, they can
exert pressure on businesses to provide better
products or services at lower prices. This force
intensifies under certain conditions.
• Ex: In fields such as insurance, companies
often promote introductory offers for new
customers to encourage them to switch
loyalties.
 THREAT OF SUBSTITUTES

• When customers can find substitutes for a

sector's services, that's a major threat to the
companies in that industry.
• Ex: Food & Health Care.
 SEGMENTATION, TARGETING AND
POSITIONING (STP)
• A three-step model that examines products or
services as well as the way business
communicate their benefits to specific
customer segments.
• In a nutshell, the STP marketing model means
segmenting the market, target select
customer segments with marketing campaigns
tailored to their preferences, and adjust
positioning according to their desires and
expectations.
The STEP Formula

Segmentation + Targeting Equals Positioning

 SEGMENTATION

• The first step of the STP marketing model is the segmentation stage. The
main goal here is to create various customer segments based on
specific criteria:

• Geographic segmentation: Diving based on country, region, state,

province, etc.

• Demographic segmentation: Dividing based on age, gender, education

level, occupation, gender, etc.

• Behavioral segmentation: Dividing based on how they interact with your

business: What they buy, how often they buy, what they browse, etc.

• Psychographic segmentation: Dividing based on “who” your potential

customer is: Lifestyle, hobbies, activities, opinions, etc.
 Targeting
Determine which of those segments are most likely to generate desired
conversions
• Positioning
• The final step in this framework is positioning, which
allows to set your product or services apart from the
competition in the minds of target audience.
• Symbolic positioning: Enhance the self-image,
belongingness, or even ego of your customers. The
luxury car industry is a great example of this – they
serve the same purpose as any other car but they also
boost their customer’s self-esteem and image.
• Functional positioning: Solve customer’s problem and
provide them with genuine benefits.
• Experiential positioning: Focus on the emotional
connection that customers have with product, service,
or brand.
 Marketing research
• Marketing research is defined as any
technique or a set of practices that companies
use to collect information to understand their
target market better.
MARKETING RESEARCH PROCESS