DEVELOPING MARKETING STRATEGIES AND PLANS
After the marketing objectives have been identified and the target market has been selected, the next step is to develop marketing strategies and plans. Marketing strategies are long-term, continuous plans that aim to achieve specific marketing objectives. In contrast, marketing plans are short-term documents that detail the specific actions to be taken to achieve specific marketing objectives over a specified period of time. The relationship between marketing objectives, target markets, and marketing strategies and plans is summarized in Figure 2.2 “The Marketing Planning Process”.
The development of marketing strategies and plans begins with an assessment of the company’s internal resources and capabilities. This assessment is often called a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. The purpose of the SWOT analysis is to help identify potential opportunities that can be exploited and potential threats that should be addressed. The SWOT analysis also helps to determine what kind of strategy would be most appropriate given the company’s strengths and weaknesses.
Once the company’s internal resources and capabilities have been assessed, the next step is to assess the general environment in which the company operates. The purpose of this environmental assessment is to identify any external factors that could have an impact on the company’s ability to achieve its marketing objectives. These external factors can be divided into four categories: economic, social/cultural, political/legal, and technological.
After the general environment has been assessed, the next step is to assess the specific industry environment in which the company operates. The purpose of this industry assessment is to identify any industry-specific factors that could have an impact on the company’s ability to achieve its marketing objectives. These industry-specific factors can be divided into five categories: competition, customers/consumers, suppliers/inputs providers, government regulations/policies, and economic conditions.
Once the general environment and specific industry environment have been assessed, the next step is to assess the competitive environment in which the company operates. The purpose of this competitive assessment is to identify any competitors that could pose a threat to the company’s ability to achieve its marketing objectives. These competitors can be divided into three categories: direct competitors (those who offer similar products or services), indirect competitors (those who offer products or services that can be used as substitutes for your product or service), and potential competitors (those who do not currently offer your product or service but could enter your market).
After all three environments have been assessed (internal, general, specific industry), it is time to begin developing marketing strategies and plans. The first step in this process is to develop a situation analysis, which is a summary of all information collected during environmental assessments (internal resources/capabilities, general environment factors identifiable through secondary research data [eSWOT], specific industry forces [PESTLE], competitive forces [Five Forces]). This summary should include both positive and negative information so that an accurate portrayal of your current situation can be made. This situation analysis forms the basis for developing your marketing mix (discussed in more detail below).
Marketing Mix
The next step in developing marketing strategies and plans is to develop a marketing mix for each target market segment identified during market segmentation. The marketing mix consists of four main elements: product (or service), price, place (or distribution), and promotion. Each element must be carefully considered when developing a marketing mix because each one has an impact on all of the others. For example, if you decide to increase your product’s price you will need to consider how this will affect your other elements (e.g., you may need to increase your promotion budget in order
