OBJECTIVES

At the end of the lesson the learners shall be able to..

• 1. define Strategic and Marketing Planning

• 2. distinguish between strategic and marketing
planning in terms of objectives and
processes ABM_PM11-Ic-d-9
 Strategic Planning – is a broad process
that can address the entire business, or a
portion of the business such as marketing.
Marketing Planning - is written based from strategic
plans.

Marketing Plan - is a document that lays out the

marketing efforts of a business in an upcoming
period, which is usually a year. It outlines the
marketing strategy, promotional, and advertising
activities planned for the period.
Strategy – is a plan reaching the specific
goal.
• In business, a strategy is a broad
goal, such as increasing sales or
market share or creating a
particular image for the business.
• When creating marketing plan
start with broad strategies and support
with the specific actions.
Planning – the process of predicting future
events and conditions and determining the
best way to attain the goals and objectives
of the organizations.
 Strategic Planning – is a management
process of creating and maintaining fit
between the objectives and resources
of the organization and the changing
market opportunities.
STRATEGIC MARKETING PROCESS

1. Mission Identification - in defining a mission statement it

answer the following questions:
a. What an organization is?
b. Why it exists?
c. What is the reason for the existence.
d. Who are its primary customers.
e. What are the products and services it produces?
f. What are its geographical area of operation?
Example of a Mission Statement: An
international consumer goods company
mission statement is: “To provide branded
products and services of superior quality
and value that improve the lives of the
world’s consumers. As a result, consumers
will reward us with industry leadership in
sales, profit and value creation, allowing our
people, shareholders, and the communities
in which we live and work to prosper.”
2. Situational Analysis
 Assesses and evaluates the market,
customers, competitors, and the
company’s internal and external
environment.
 The objectives is to identify the
company’s strength and
weaknesses, as well as the available
opportunities and threats (SWOT).
3. Objective Setting
 It must be Specific, Measurable, Attainable,
Realistic, and Timebound (SMART).
 These enable a company to control its marketing
plan and provide a consistent focus for all functions
of an organization.
 The objectives include sales revenues, market
share, and profits.
 They are used as basis for strategy selection and
development.
4. Marketing Strategy Development
 Involves market segmentation,
identification of target market,
positioning, selection of broad
marketing strategies, and the
translation of strategies into action
plans.
 Strategies can be broadly classified
into three categories. These are
cost leadership, differentiation, and
Cost leadership
 This is a strategy primarily for
achieving low cost leadership among
industry competitors.
 It can be achieved through low cost
supply contracts, overhead expense
control, economies of scale, and
comprehensive cost-cutting efforts,
among others.
 Example:
While 16 desk fans are ordinarily retail
for P1,000.00. a local appliance brand
is able to market the same at P 635.00
through mass production.
Differentiation
 It seeks to achieve superior product
attributes and features that are
different from industry competitors.

 This results in pronounced

consumer preference for the
company’s products.
 Example:
A mobile phone brand introduces
its version of the smartphones that
does not have a keyboard but is
activated and controlled by
thought.
Focused
 Efforts are concentrated on a
relatively small but profitable
market.
 The development of products and
services primarily ensures that the
needs and wants of this market are
addressed and that satisfaction is
provided.
Example: A convenience store that
concentrates on the very high-end
niche market by converting its
operations into convenience stores
with customer service, selling purely
imported and high quality products
and gourmet food prepared by
resident chefs.
3. Horizontal Integration – this
involves purchase of or increased
control over competitors.

Example: A pizza company buying

a controlling interest in another
pizza company.
4. Market Penetration – the objective of this strategy is to
increase market share of current products or services in
current markets through greater and more intensive
marketing efforts.

Example: A doughnut company launching a P56 million

advertising campaign directed at current customers.
5. Market development – this strategy involves the
introduction of existing products or services into a new
geographical area or market.

Example: A private learning institution opening a

campus in Cebu City.
Cost leadership, differentiation and focused strategies may be
implemented through the following sub-categories of strategies:

1. Forward Integration – this involves gaining ownership or

increased control over distributors or retailers.
Example: a known newspaper company buying 418
newspapers stands in Metro Manila.

2. Backward integration – this involves gaining ownership or

increased control over suppliers.
Example: a consumer goods company in the Phils. Purchasing
a cow farm and dairy facility in General Santos City.
6. Product development – this strategy involves the
improvement of currect products or services or the
development of new products with the purpose of increasing
sales.

Example: a company on carbonated beverages introducing

its product lines titra packs.
7. Related diversification – it involves introducing new but
related products or services.

Example: Battery manufacturers introducing solar

powered automotive batteries.

8. Unrelated diversification – this involves introducing new

but unrelated products or services.

Example: A bank opening a chain of icecream parlors.

9. Retrenchment – this involves halting or reversing declining sales
and profits through cost or asset reduction.
Example – a shopping mall selling of its hardware department
and laying off 847 of its department were employees.

10. Divestiture – this involves selling a division or part of an

organization. This involves selling a division or part of an
organization. Example : A conglomeratesselling in airlines.

11. Liquidation – this involves selling all of a company’s assets, in

parts or as a whole, for their tangible worth.
Example: A prime holdings company selling all its companies.
5. Strategy evaluation and control.
After the strategy is developed and
evaluation as needed. This necessary to
identify deviations and make necessary
adjust for
TACTICAL MARKETING PROCESS
 Complementing the strategic marketing process.
 Determines the means or tactics to implement the
strategies.
 It involves the identification of specific activities,
timetables, responsibilities, and budgets and their
implementation.
 The objective is to ensure that the strategies are
implemented successfully.
 Tactical Marketing process –
determines the means or tacticsto
implement the strategies. It involves
identifications of specific activities,
timetables, responsibility and
budgets and their implementation. The
objects is to ensure.
For example , a company determine to increase sales
by 10% by the end of the calendar year. After careful
consideration, it selects market penetration as its
strategy. The current task is to identify the tactics, or
activities that it should undertake to ensure that the
strategy will be successful. The firm may decide to
increase selling price. It may opt to do intensive
promotions, or it may invest in heavy product
advertising.
 Once the tactics and activities are identified,
they are developed into an action plan. An
action plan is a sequential series of marketing
activities. It includes timetables for each
activity, pinpointed responsibilities or
accountabilities for each, and the
corresponding budgets. Oftentimes, it is
necessary to utilize two or more action plans
to ensure successful implementation. These
are monitored regularly to ensure
effectiveness.
 References

Quinones, Johemie L., Principles of Marketing for Grade 12 Students. Chapter 2.

Retrieved from
https://www.slideshare.net/JohemieLopezQuinones/principles-of-marketing-for-grade-12-
students-chapter-2
QUIZ