There are a number of set components in a strategic marketing plan. They are as follows:
Control and Evaluation.
- Executive Summary
- Mission Statement
- Corporate Objectives
- Situational Analysis
market, consumers, competitors, political, technology, social, public, economy etc.
- internal: resources, skills, products, brands, marketing mix, objectives etc.
The rest of this lecture addresses most of them. The Executive summary, the Mission statement and Control and Evaluation are addressed elsewhere.
This section of the plan:
- provides the strategic context within which the plan will operate
- establishes the:
- risk profile
- resource capability
- growth objectives.
The Situational Analysis is:
- a snapshot of the market, highlighting
- where we have been
- where we are now
- both :
- descriptive: what is happening?
- analytical: why is it happening?
- is made up of:
- external analysis
- internal analysis
- SWOT analysis.
The external analysis involves the following areas:
- the macro-external environment: the economic, social, cultural, poltical, legal, demographic, technological issues and their effects
- the market:
- defining, measuring, quantifying and predicting
- market size, potential, structure and trends
- the consumer:
- who, what, when, why, how?
- the consumer's needs, wants, gaps, opportunities
- attitudes, involvement in decision making
- social and cultural trends affecting purchase
- the importance of branding, price, variety, value and service
- attitudes to advertising messages, product performance, quality etc.
- direct, indirect and potential competitors
- size, performance
- level of threat and vulnerability
- strategies, culture, mission
- strengths, weaknesses, competitive advantages
- product, price, positioning, distribution etc.
The internal analysis addresses the following:
- review of internal structures, policies and strategies that impede or enhance the firm's ability to compete
- company culture, mission, goals
- resources, eg. dollars, manpower, managerial skill
- performance, eg. dollars, market share and volume, brand awareness, loyalty
- marketing mix
- competitive advantages
- strategic alliances.
The SWOT analysis should:
- be written up on one page
- be clear and succinct
- identify the key issues:
- strengths and weaknesses
- opportunities and threats.
Strengths and weaknesses:
are relative to the competition
are defined as a strength only when you do something better than a competitor
are defined as a weakness when you are lagging behind the competition.
Opportunities and threats:
are identified by the external analysis
must be defined in the light of the firm's mission and objectives.
You may have seen the objectives invoked in other contexts.They are known as SMART objectives:
Objectives may be written for:
- sales in dollars and volume
- market share
- profitability in dollars or as a percentage
- service levels
- corporate awareness
- membership levels, etc.
The type of objective which is relevant to the marketing strategy will depend upon the type of organisation for which the strategy is being prepared.
The following considerations are basic to developing marketing strategies:
Action Plans are detailed plans dealing with specific marketing projects, eg. the development of a television campaign, new product development, market research, sales promotion etc.
- target market
Action Plans outline who, what, when and where.
Financial information is basic to:
- marketing expense budgets
- sales forecasts
- profit impact statement.