2. 1-2
Strategic Marketing Plan
• A Strategic Marketing Plan is a blue print that elaborates
a systematic, inter connected, logical step by step processes
for achieving marketing goals.
• It analyses the internal and external environment,
markets, competitors, specifies the necessary resource
allocations, schedules, budgets, tasks, and embeds the
controls and other actions required in connection with
attaining marketing goals in an efficient and effective
manner.
• It specifies what should be done today to achieve
marketing goals ahead and it is the marketer’s road map
for desired destination.

3. 1-3
Organizational Levels
The Corporate Level is the
highest level in any organization.
The Functional Level includes all the
various functional areas within a business unit.
The Business Level consists of units within the
overall organization that are generally managed
as self-contained businesses.

4. 1-4
Organizational Strategic Planning
 Lower-level plans are developed
to execute higher-level plans.
 Higher organizational level strategic
plans provide direction for strategic
plans at lower levels.

5. 1-5
Types of Strategic Plans
Organizational Level Type of Strategic Plan Key Strategic Decisions
Corporate Corporate strategic Corporate vision
plan Objectives & resource
allocation
Growth strategies
Business Business strategic Market scope
plan Competitive
advantage
Marketing Marketing strategic Target market
plan Marketing mix
Product marketing Specific target market
plan Specific marketing
mix
Execution action plan

6. 1-6
The Strategic Planning Process

7. 1-7
The Role of Marketing
Marketers orient everyone in the organization
toward markets and customers.
Marketers analyze the current situation,
identify trends in the marketing environment,
and assess the potential impact of these trends.
Marketers development corporate, business,
and marketing strategic plans.

8. 1-8
The Role of Marketing
•Networks:
 Comprise strategic
alliances among
suppliers, distributors,
and the marketing
firm.

9. 1-9
Corporate Strategy Decisions
•Corporate Vision
•Corporate Objectives & Resource
Allocation
•Corporate Growth Strategies
•Business-unit Composition

10. 1-10
Corporate Vision
• Corporate Vision:
 The basic values of an organization.
 The vision specifies
what the organization
stand for, where it plans
to go, and how it plans
to get there.

11. 1-11
What Comprises Corporate Vision?
• Markets
• Products and services
• Geographic domain
• Core competencies
• Organizational objectives
• Organizational philosophy
• Organizational self-concept
• Desired public image

12. 1-12
Core Purpose: A Company’s Reason for Being
• Hewlett-Packard: To make technical
contributions for the advancement and welfare of
humanity.
• Sony: To experience the joy of advancing and
applying technology for the benefit of the public.
• Wal-Mart: To give ordinary folks the chance to
buy the same things as rich people.

13. 1-13
Core Purpose
• Core Competency:
 A bundle of skills that are possessed by
individuals across the organization.

14. 1-14
Questions Leading to an Effective Corporate Vision
1. Which customers will you be
serving in the future?
2. Through which channels will
you reach customers in the
future?
3. Who will be your competitors
in the future?
4. Where will your margins
come from in the future?

15. 1-15
Questions Leading to an Effective Corporate Vision
5. In what end-product markets
will you participate in the
future?
6. What will be the basis for
your competitive advantage
in the future?
7. What skills or capabilities
will make you unique in the
future?

16. 1-16
Corporate Objectives and Resource Allocation
•Corporate objectives specify the
achievement of desired levels of
performance during particular time
periods.

17. 1-17
Corporate Objectives and Resource Allocation
Corporate objectives and
resource allocation affect
marketers in 2 basic ways:
1) In setting the
objectives for different
organizational levels.
2) Providing guidance
for the development
and Implementation of
marketing strategies.

18. 1-18
Corporate Growth Strategies
Market
Penetration
Product
Expansion
Diversification
Market
Expansion
Products
Same New
Markets
NewSame

19. 1-19
Business-Unit Composition
• Strategic Business Unit (SBU):
 Focuses on “a single product or
brand, a line of products, or mix
of related products that meets a
common market need or a group
or related needs, and the unit’s
management is responsible for
all (or most) of the basic business
functions”

20. 1-20
Business Strategy Decisions
•The basic objective of a business
strategy is to determine how the
business unit will compete
successfully.

21. 1-21
Business Strategy Decisions
• Dimensions of Strategy:
 Market scope.
 How broadly the
business views its target
market.
 Competitive advantage.
• Competitive Advantage:
 The way a business
tries to get consumers to
purchase its products
over those offered by
competitors.

22. 1-22
Marketing Strategy Decisions
A Marketing
Strategy Addresses:
• Selection of a target market.
• Development of a
marketing mix.
Functional strategies
are at the
business-unit level.
Operating strategies
are at the product level.

23. 1-23
Business & Product Marketing Strategies
Target market Segmented or mass approach Specific definition of target
market
Product Number of different products Specific features of each
product
Price General competitive price level Specific price
Distribution General distribution policy Specific distributions
Marketing
communicationsGeneral emphasis on marketing Specific marketing
communications tools communications program
Decision Area Business Marketing Strategy Product Marketing Strateg

24. 1-24
International Marketing Strategies
•Entry Strategy:
 The approach used
to market products
in an international
market.
• The Basic Options:
 Exporting
 Joint Ventures
 Direct Investment

25. 1-25
International Marketing Strategies
Customized Marketing Strategy:
A different marketing mix for each
target market country.
Standardized Marketing Strategy:
The same product, price, distribution, & promotion
programs in all international markets.

26. 1-26
Business Function Orientations
Function Basic Orientation
Marketing To attract and retain customers
Production To produce products at lowest cost
Finance To keep within budgets
Accounting To standardize financial reports
Purchasing To purchase products at lowest cost
R&D To develop newest technologies
Engineering To design product specifications