Study Unit 1

Site: eLearn 2022 Semester 2 Printed by: Farai Mandonye

Module: Strategic Marketing Date: Thursday, 4 August 2022, 3:18 PM
Book: Study Unit 1
Description
 Table of contents

1. SECTION B
1.1. Study Unit 1 – Relevance
1.2. Module Outcomes
1.3. Study Unit 1 – Unit Specific Outcomes
1.4. Assessment Criteria
1.5. Study Unit 1 – Glossary
1.6. a) The marketing planning process
1.7. Stage 1: Analyse the current situation (also referred to as situational analysis)
1.8. Stage 2: Research and analyse markets and customers
1.9. Stage 3: Determine segmentation, targeting and positioning
1.10. Stage 4: Set marketing plan direction and objectives
1.11. Stage 5: Plan strategies, programmes and support
1.12. Stage 6: Plan to measure progress and performance (planning stage)
1.13. Stage 7: Implement, control and evaluate the plan
1.14. Interactive Revision Activity
1.15. b) Contents of a typical marketing plan
1.16. c) Levels of planning for strategy
1.17. d) Mission Statement
1.18. Guidelines for a mission statement
1.19. Study Unit 1 – Progress check
1.20. Interactive Revision Activity

2. Questions and Answers

3. Progress Checklist
 1. SECTION B

Study Unit 1 – Chapter 1 – Introduction to Marketing Planning

“Effective marketing starts with a considered, well-informed marketing strategy. A good

marketing strategy helps you define your vision, mission and business goals, and
outlines the steps you need to take to achieve these goals. Your well-developed
marketing strategy will help you realise your business's goals and build a strong
reputation for your products.” (Queensland Government, n.d.).
 1.1. Study Unit 1 – Relevance

This study unit is essentially about the marketing planning process and where it all
started – with the mission statement of an organisation, the steps in a typical strategic
marketing plan process, as well as the organisational strategies and objectives.
 1.2. Module Outcomes

Let’s recap the relevant module outcomes for this study unit:

Start documenting a strategic marketing plan.

Conduct strategic analyses that should include the analyses of the current external
and internal situations, market analyses, customer analyses and a competitor
analysis.
Develop a customer-driven strategic marketing plan by:
Producing a marketing strategy that is based on the appropriate direction, setting
marketing objectives and focusing on the marketing mix elements.
Producing a marketing action plan based on the abovementioned marketing
strategy.
Including control measurements/marketing metrics.
Including a realistic financial budget for all marketing action plan elements.
Evaluate the success of the marketing plan.
 1.3. Study Unit 1 – Unit Specific Outcomes

After completing this study unit, you should be able to:

Begin the first stage of the marketing planning process.
Explain how to write an executive summary and proper introduction to a strategic
marketing plan.
Develop a corporate mission statement to be incorporated in your marketing
strategy.
 1.4. Assessment Criteria

Associated Assessment Criteria for Exit-Level Outcome 1

A corporate mission statement that clearly specifies the organisation’s core purpose,
customer needs being satisfied, product and market area, guiding values and core
competencies has been developed.
 1.5. Study Unit 1 – Glossary

Strategic marketing: The process of planning, implementing and controlling the

marketing efforts of the organisation in order to meet the goals and objectives of
the organisation and successfully satisfy customer needs and wants (Wiid, Cant
Makhitha, 2016).
Corporate mission: A written declaration of an organisation’s core purpose and
focus that normally remains unchanged over time. Properly crafted mission
statements (1) serve as filters to separate what is important from what is not, (2)
clearly state which markets will be served and how, and (3) communicate a sense
of intended direction to the entire organisation (Business Dictionary, 2019).
Organisational strategy: Sets the organisation’s overall purpose, long-term
direction, goals, business units and approach to value (Wood, 2017).
Marketing planning: The structured process that leads to a coordinated set of
marketing decisions and actions for a specific organisation and over a specific
period (Wood, 2017).
 1.6. a) The marketing planning process

Marketing planning is the structured process that leads to a

coordinated set of marketing decisions and actions, for a specific
organisation and over a specific period, based on:

an analysis of the current internal and external situation,

including markets and customers;
clear marketing direction, objectives, strategies and
programmes for targeted customer segments;
support through customer service and internal marketing programmes;
management of marketing activities through implementation, evaluation and
control.
The steps in a typical strategic marketing plan process are:
 Figure 1.1 The marketing planning process (Wood, 2020, p. 7)
The above-mentioned process is recorded in a marketing plan and outlines the
marketing strategy and action plans (programmes) that will be required to achieve the
overall goals of the organisation within a specified time period.
Throughout Study Units 2-11 (Chapters 2-12) the process or stages that form part of the
final strategic marketing plan will be covered. It is critical to remember that a marketing
plan is not a once-off document, but it is something that is ongoing and that changes as
the marketing environment changes. It is thus a dynamic exercise.
A brief outline of the marketing planning process according to (Wood, 2020, pp. 6-14) is
outlined below:
 1.7. Stage 1: Analyse the current situation (also referred to as situational analysis)

The purpose of analysing your situation is to identify strengths, weaknesses (internal

audit), opportunities and threats (external audit) for marketing purposes.
An internal audit is used to examine the current situation within
the organisation, including mission statement, resources,
offerings, capabilities, important business relationships and
business functions, such as the marketing, finance, production
functions, etc.
Using an external audit, trends and changes in the broad
political, economic, social-cultural, technological, legal and ecological (environmental)
environment are analysed, commonly referred to as the acronym PESTLE.
This audit should cover issues, threats and opportunities that might influence your ability
to implement the marketing plan and achieve your objectives (Wood, 2020, pp. 6-7).
1.8. Stage 2: Research and analyse markets and customers

The next environment which consists of your customers,

suppliers, competitors and other facilitating agents is also
referred to as the market environment. An investigation of the
trends in market share, product demand, customer needs and
perceptions, demographics, buying patterns and customer
satisfaction levels need to be conducted (Wood, 2020, p. 8).
 1.9. Stage 3: Determine segmentation, targeting and positioning

As resources are limited (people, money or time) it is not possible to serve every
customer in every market. Markets are therefore segmented using various
segmentation bases, such as demographic, geographic, etc. to ensure target
markets with similar characteristics are identified and targeted.
Next, decide on your targeting approach. Will you focus on a single (niche)
segment, on two or more segments (differentiated) marketing or the entire (mass)
market?
Also formulate a suitable positioning approach, which means using marketing to
create a competitively distinctive place (position) for the product or brand in the
mind of targeted customers (Wood, 2020, p. 9).
 1.10. Stage 4: Set marketing plan direction and objectives

A marketing plan is based on your organisation’s mission

statement and marketing objectives. Most use marketing plans to
support a direction of growth, e.g. growth objectives in financial
terms (such as higher turnover) and marketing terms (such as
higher market share). These objectives need to conform to the
SMART acronym so that they are measurable and attached to
time frames e.g. to increase market share by 3% by 31 December 2020 (Wood, 2017, p.
9).
 1.11. Stage 5: Plan strategies, programmes and support

In this stage, you will plan marketing strategies and

tactics to achieve the marketing objectives you set
earlier, so the coordination of the basic marketing tools
of product, price, place and promotion within individual
marketing programmes are key aspects of the
strategies formulated, while the additional 3Ps of
people, processes and physical evidence will be added
in the case of services marketing (Wood, 2017, p. 10).
Product and branding
The product offering may be a tangible good such as a car or an intangible service such
as personal finance advice in the case of services marketing.
Price
In planning price strategy, marketers must answer a number of key questions; some are
about external elements, such as how consumers perceive the value of the product or
service or it could relate to internal elements such as how our costs are affecting our
profitability (Wood, 2020, p. 11).
Channel and logistics (Place)
Channel and logistics strategy – place strategy – is concerned with how customers gain
access to the product or service offering; will you market directly to your customers or
make products available through intermediaries such as wholesalers and retailers?
(Wood, 2020, p. 12).
Marketing communications and influence
Marketing communications and influence strategy (also called promotion strategy)
covers all the tools you use to reach customers in your targeted segments. The point is
to encourage two-way communication and influence the way customers think, feel and
act towards the goods, services or ideas you are marketing (Wood, 2020, p. 12).
 1.12. Stage 6: Plan to measure progress and performance (planning stage)

Before implementing the marketing plan, you must decide on measures to track
marketing performance in terms of achieving your objectives. This involves developing
and documenting budgets, forecasts, schedules and responsibilities for all marketing
programmes. Often marketers establish quantifiable standards (metrics) to measure
specific marketing outcomes and activities (Wood, 2020, p. 13).
 1.13. Stage 7: Implement, control and evaluate the plan

The real test of any marketing plan’s effectiveness comes at

implementation. For effective control, start with the objectives you’ve
set, establish metrics and standards for measuring progress towards
those targets, measure actual marketing performance, analyse the
results and take corrective action if needed (Wood, 2020, p. 14).

Watch the following useful video clip:

– (Marketing Plan: How to Get Started, 2012).
 1.14. Interactive Revision Activity

Click below to complete interactive revision activity.

 1.15. b) Contents of a typical marketing plan

Each marketing plan is unique and is designed for a specific situation and a specific
organisation within a specified time period. There are also various marketing plan
templates available in academic literature.
The following is the template that is widely used by many marketers and will be the
template used for this specific module.
Section Purpose

Executive Summary (this is done To summarise the plan’s objectives

last after the entire strategic and main points, including what is
marketing plan is compiled; see being marketed and the market for
Study Unit 11) this good or service. The past,
present situation and future plans
need to be stated.

Current marketing situation To explain the mission, present the

(audit) results of the external audit
(PESTLE), analyse the competition,
and provide background and explain
the organisation’s response.
SWOT To discuss internal strengths and
weaknesses, external opportunities
and threats that can affect marketing
performance and explain the
organisation’s response.

Objectives and issues (critical To show what the marketing plan is

success factors) designed to achieve in terms of
financial, marketing and societal
objectives; to explain key issues
(CSFs) that might affect the plan’s
implementation and success.

Segmentation, targeting and To identify the segments to be

positioning targeted and explain how the
product, brand or organisation will be
positioned for the selected customer
segments.

Marketing strategy To present the broad strategic

approach that the plan will apply in
providing value to achieve the
objectives that have been set.
 Marketing programmes (action To describe the set of coordinated
plan) action plans used to create,
communicate and deliver value
through the 4Ps, customer service
and internal marketing activities.

Financial plans and budgets To back up the programmes with

details about projected costs and
profits, revenue forecasts and sales
forecasts.

Metrics and implementation To indicate the organisation,

controls responsibilities and schedules for
implementation, explain metrics for
measuring progress towards
objectives and include contingency
plans for dealing with unexpected
results and future scenarios.

Table 1.2 Contents of a typical marketing plan (Wood, 2017, p. 15)

 1.16. c) Levels of planning for strategy

To prepare for a thorough internal analysis you need to start

by understanding the three levels of planning for strategy and
be aware of the interaction between these three levels.
Organisational (corporate) strategy
Purpose, long-range goals and value creation for
customers.
Business strategy
Scope of each business unit, markets to target, resource allocation and how to
compete.
Marketing strategy
Marketing mix implementation, plus service and internal marketing.
 1.17. d) Mission Statement

Before conducting the situational analysis, it is critical that you clarify

the organisation’s purpose, or mission. This may have been clear in the
initial stages of the organisational life cycle, but, over time, one or more
of the following may happen:

The purpose becomes unclear as the organisation grows and

develops new products and markets.
The purpose remains clear, but leadership loses interest in the original purpose.
The purpose remains clear, but loses its appropriateness to new conditions in the
environment.
Before continuing with the strategic marketing planning process, it is essential that
you formulate a clear definition of the organisation’s purpose or mission. This will
contextualise the rest of the analysis and process going forward.

The main question to answer is:

“What business are we in?”
For example, a company in the paint business can be defined as being in ‘the decorative
and protective coatings business.’ This definition will fundamentally influence who we
see as competitors, which ‘industry or market’ we focus on, etc.
Developing strategies for sustainable competitive advantage, implementing them, and
changing the strategies to respond to new environmental requirements form a
continuous process. It begins, however, by defining the mission of the business.
The corporate mission may, over time, be changed, because of problems or
opportunities identified by monitoring the external and industry environments. An
important part of the strategic planning process in a company that is usually complex in
nature (several products and markets), is the periodic analysis of the portfolio of
business units. These units often have different strategies and objectives, offering
various opportunities and requirements.
The corporate mission, however, keeps the focus of a company in place from a strategic
point of view. The corporate mission defines the nature and scope of a business and
provides important guidelines for managing the corporation.
Management initially establishes a company’s operations and adjusts these decisions as
necessary, over time. Strategic choices about where a company is going in the future –
choices that take into account a company’s capabilities, resources, opportunities and
problems – establish the mission of the enterprise.
Early in the strategic development process, management must define the mission of a
company. The mission is reviewed and updated as shifts in the strategic direction of a
company occur over time.
The mission statement will define the parameters within which the company intends to
operate.
In conclusion, the mission statement lays down a guideline for the boundaries of
the business and will provide a means of reference for reviewing the situational analysis
and possible opportunities.
Students are therefore advised to spend considerable time in producing a
comprehensive mission statement, ensuring that their marketing plan falls within the
guidelines it dictates.
 1.18. Guidelines for a mission statement

The mission statement sets several important guidelines for business operations:

The reason for the company’s existence and its responsibilities towards its
stakeholders
The customer’s needs that are satisfied by a company’s products and services
(areas of product and market involvement)
The extent of specialisation within each product/market area
The number and types of product/market diversification desired by management
Management’s performance expectations for a company
Other general guidelines for overall business strategies, such as technologies to be
used and the role of research and development
Ideally, therefore, a mission statement should incorporate the following:
Customer focus. Who does the organisation exist to serve?
Value provided. What value will the organisation provide for its customers and
other stakeholders, and how will it do so in a competitively superior way?
Market scope. Where and what will the organisation market?
Guiding values. What values will guide managers and employees in making
decisions and dealing with stakeholders?
Core competencies. What employees, processes and technological capabilities
give your organisation its competitive edge? (Wood, 2020, p. 17)
 1.19. Study Unit 1 – Progress check

You have come to the end of Study Unit 1.

Time to do a progress check to determine whether you have gone through all the
required content and completed all the exercises.
 1.20. Interactive Revision Activity

Click below to complete interactive revision activity.

 2. Questions and Answers

Click below for revision exercises and solutions.

 3. Progress Checklist

Click below to complete progress checklist.