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Strategic Market Planning

A Strategic marketing plan is an outline of the methods and resources required to achieve organizational
goals within a specific target market(s).
"Describes the direction [an organization] will pursue within its chosen environment and guides the
allocation of resources and effort" - Peter Bennett, Dictionary of Marketing Terms, AMA 1988
Strategic planning requires a general marketing orientation rather than a narrow functional orientation.
All functional areas must include marketing and must be coordinated to reach organizational goals. It is a
hierarchal process, from company wide to marketing specific. (Marketing concept, implemented from top
down.)
Company wide, SBU specific
A firm can be broken down into several strategic business units. Each SBU is a division, product line, or
other profit center within the parent company.
An SBU has its own strategic plan and can be considered a seperate business entity competing with other
SBU's for corporate resources.
For example Pepsico Companies SBUs include:

KFC

Taco Bell

Pizza Hut

Mountain Dew

Lipton Tea Brands

Frito Lay

IE The College of Business and Economics is an SBU of the University of Delaware.


A strategic plan gives:

Direction and better enables the company to understand mkt. function dimensions

Makes sure that each division has clear integrated goals

Different functional areas are encouraged to coordinate

Assesses SW & OT

Assesses alternative actions

It is a basis for allocating company resources

A procedure to assess company performance

The strategic planning process may include the following, although this differs from one organization to
another:

Develop a SWOT analysis

Develop Mission Statement that evolves from the SWOT analysis

Develop Corporate Objectives that are consistent with the organization's mission statement.

Develop corporate strategy to achieve the organization's objectives. [if the organization is made
up of more than one SBU, then follow loop again for each SBU, then proceed]

Marketing (and other functional objectives) must be designed to achieve the corporate objectives

Marketing Strategy, designed to achieve the marketing objectives.

The strategic market planning process is based on the establishment of organizational goals and it must
stay within the broader limits of the organizations mission, that is developed taking into consideration the
environmental opportunities and threats and the companies resources and distinct competencies.
A firm can then assess its opportunities and develop a corporate strategy. Marketing objectives must be
designed so that they can be accomplished through efficient use of the firms resources.
Corporate strategy is concerned with issues such as diversification, competition, differentiation,
interrelationships between business units and environmental issues. It attempts to match the resources of
the organization with the opportunities and risks of the environment (SWOT). Corporate strategy is also
concerned with defining the scope and roles of the SBU's of the firm so that they are coordinated to reach
the ends desired.

Marketing Planning.
Marketing plans vary by:

Duration

Scope

Method of Development, bottom up/top down

Objective is to create a Marketing plan. A plan for each marketing strategy developed.
Marketing strategy encompasses selecting and analysing the target market(s) and creating and
maintaining an appropriate marketing mix that satisfies the target market and company. A Marketing

strategy articulates a plan for the best use of the organizations resources and tactics to meet its objectives.
Do not pursue projects that are outside the companies objectives or that stretch the companies resources.
Plan includes:

Executive summary

Situation Analysis

Opportunity and Threat Analysis

Environmental Analysis

Company Resources

Marketing Objectives

Marketing Strategies to include:


o

Target market (Intended) A target market is group of persons/companies for whom a firm
creates and maintains a Marketing Mix that specifically fits the needs and preferences of
that group. Does the company have the resources to create the appropriate MM and does
it meet the company's objectives.

Develop a marketing mix-how to reach the target market. The marketing mix is designed
around the buying motive-emphasizing the marketing concept. The marketing
environment effects the marketing mix, which is only controllable to a certain extent (the
MM). Before developing the MM, need to determine the needs of the target market.

Financial Projections

Controls and Evaluations

Marketing control process consists of establishing performance standards, evaluating the actual
performance by comparing it with the actual standards, and reducing the difference between the desired
and actual performance.

Industry/business analysis and sustaining competitive advantage.


Porters three generic competitive strategies
competitive advantages and its pivotal role in strategic marketing planning.
(for these point plz refer the power point )