Mensur Boydaş, Vahdi Boydaş

1. Marketing
Strategic planning and segmentation

2. Strategic Marketing
Planning(SMP)
• Definition:The logic (Strategy/how) that matches the organization
objectives & resources to its changing marketing opportunities
within the organization’s financial boundaries.
•
SMP is driven by the marketing concept as the market orientation is the
prime strategic philosophy influencing:
–
–
–
–
Mission statement--purpose of existence (e.g. NIKE)
Internal strategies---value chain (inter-departmental)
External strategies---networking (with government, retailers)
Growth strategies---[e.g. Kellogg's, Pepsi (PepsiCo. foods)]
• Objectives plan: Market penetration, Market development, and
Diversification
• Resources plan(4P’s): Product, Price, Promotion and Place/Distribution

3. SMP goals (Conti.)
• Maximize revenue
• Maximize profit
Contradicting (usually)
• Maximize return on
investment
• Minimize cost
Optimum
compromise

4. Types of SMP (Conti.)
– Strategic planning
• Goal: Doing the right thing
• Time: Long term (3-5 years)
• Focus: Pan-organizational
– Tactical planning
• Goal: Doing things right
• Time: Short term (1 or less years)
• Focus: Departmental

6. Strategic marketing management
process
• Analysis of environment and customer behavior
• Planning: developing the marketing plan (for a
product)that is a written document capturing the logic
linking the organization objectives of creating/offering a
certain product to its market/s with its overall objectives.
– Implementation: applying the plan(action/execution)--vital for
success--ensuring ownership of the plan.
– Control: measure results--evaluate performance--take corrective
action

7. Strategic marketing management
process (conti.)
• Analysis
– Environment (Marketing intelligence,
managerial environment(e.g. SWOT, BCG)
• SWOT[strengths, weaknesses, opportunities and
threats]
• BCG Matrix:
High
Market
growth rate
Low
?
Dog
Cow
High-Market share-low
– Customer behavior: MIS

8. Segmentation
• Market Segmentation: dividing the consumer market into smaller
groups each of which shares similar yet distinctive characteristics
requiring different offerings.
– Levels of market segmentation
Segments
(Kellogg's)
Micro(local/individual)
(e.g. some
retailers/RR)
Niche(e.g.
CanJet)
Mass(e.g. early
Coca-cola)

9. Segment Variables

10. Segmentation (Conti.)
• Consumer market segmentation variables(driven from consumer
behavior)
– Geographic
• Country, city size, province, residential area, etc. (Retailers)
– Demographic
• Age, gender, income, etc.---Insurance (life/driving, etc.)
– Psychographic
• lifestyle/personality----GAP/Timberland/CAT
– Behavioral
• User status/rate, etc.---Air Canada Aeroplan/frequent flyer/VIP

11. Segmentation (Conti.)
• Targeting:
– Evaluate and then
Select segment/s to
serve

12. Positioning for competitive
advantage
• Definition:the distinctive perception
(position) of the product in customers’ mind
compared to competition.
– USP (more for more/M-Benz) v.Value
proposition (same for less/Loblaws’ PC)
– iMac v. Pc’s
– Risks
• Under-positioning--no perception at all
• Over-positioning---too narrow perception
• Confused positioning--vague perception