6 steps of marketing planning

Summary

This webinar introduces a six-step strategic marketing planning process, designed to guide businesses in developing effective marketing strategies. The steps include Situation Analysis (company background, mission, and external factors), External Analysis (macro and meso factors, Porter’s Five Forces), Internal Analysis (company strengths and weaknesses, SWOT), strategy selection, STP (Segmentation, Targeting, Positioning), and the Implementation Plan (4Ps and marketing communication). The presenter emphasizes revisiting models throughout the process to ensure consistency and adaptability, providing a comprehensive framework for creating and refining marketing plans.

Takeaways

• 😀 The strategic marketing planning process is structured into six essential steps that guide businesses in creating a comprehensive business plan.
• 😀 Step 1, the Situation Analysis, involves understanding the company's history, mission, vision, targets, and current strategies to provide context for further analysis.
• 😀 The A.B.L.E model is used during the Situation Analysis to define the business scope and operations, providing a bridge to the external analysis.
• 😀 Step 2, the External Analysis, includes a macro analysis (demographic, economic, social, technological, and political factors) and a meso analysis (distribution, competitive, and consumer behavior analysis).
• 😀 Porter’s Five Forces model can be used in the External Analysis to assess the attractiveness and competitiveness of the market.
• 😀 Step 3, the Internal Analysis, evaluates the company’s strengths and weaknesses using tools like McKinsey’s 7S framework and Porter’s Value Chain, with a focus on financial analysis.
• 😀 Step 4, SWOT Analysis, synthesizes the insights from the external and internal analyses to identify the company’s strengths, weaknesses, opportunities, and threats.
• 😀 Step 5, Strategy Formulation, involves deciding on strategic options based on the SWOT analysis, such as market development, diversification, or focused strategies.
• 😀 The BCG Matrix and Ansoff’s Matrix can aid in evaluating different strategic options and determining the most suitable one for the business.
• 😀 Step 6, the Implementation Plan, outlines specific marketing tactics, including the 4 Ps (Product, Price, Place, Promotion) and a clear communication strategy, to ensure successful execution of the chosen strategy.

Q & A

What is the first step in the strategic marketing planning process?

The first step is the 'Situation Analysis,' where you describe the company’s background, including its history, mission statement, vision, targets, and organizational structure. It also includes defining the business the company is in using the ABLE matrix.

How do you define the business in the Situation Analysis?

In the Situation Analysis, the business is defined using the ABLE matrix, which maps out customer needs and the company's products, as well as the competitive landscape.

What is the purpose of including a problem statement in the Situation Analysis?

A problem statement helps identify the core issue that the business plan or marketing strategy will address. While not always necessary, it provides a clear reason for the business plan and guides decision-making.

What factors are analyzed in the External Analysis step?

The External Analysis step includes macro factors (e.g., demographic, economic, social, technological, and political factors) through PEST analysis, and meso factors, which include distribution, branch, competitive, and consumer analysis.

How is Porter’s Five Forces model used in the External Analysis?

Porter’s Five Forces model is used to assess the competitiveness of a market. It is typically used in the meso analysis to understand the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitutes, and the level of rivalry among competitors.

What is the focus of the Internal Analysis?

The Internal Analysis focuses on evaluating the company's internal environment. This includes using frameworks like McKinsey's 7S model and Porter’s Value Chain to analyze the company's structure, culture, systems, and performance, including financial health.

What models can be used in the Internal Analysis to assess the company?

In the Internal Analysis, models like the McKinsey 7S model and Porter’s Value Chain are used to evaluate the company’s internal factors. Financial analysis and portfolio analysis may also be applied to assess strategic positioning and market opportunities.

What is the purpose of the SWOT Analysis?

The SWOT Analysis combines the internal and external findings to identify strengths, weaknesses, opportunities, and threats. It provides a comprehensive overview of the company's current position and helps inform strategic decision-making.

How are strategies developed in Step 5 of the process?

Strategies are developed based on the key issues identified in the SWOT analysis. 'Option Zero' is typically the status quo, and other strategies might involve growth, differentiation, or collaboration. The SF A matrix can be used to evaluate which strategic option is the best.

What is involved in the Implementation Plan (Step 6)?

In the Implementation Plan, the marketing strategy is detailed using the 4Ps (Product, Price, Place, Promotion). This step also includes a marketing communication plan, and for online businesses, the 'Place' aspect includes website and online distribution strategies.

Why is the ABLE matrix revisited later in the process?

The ABLE matrix may need to be revisited if there are changes in the company’s strategy. New consumer segments or shifts in market conditions may require an update to the business definition and strategy.

What role does McKinsey’s 7S model play in the strategic marketing process?

McKinsey's 7S model is used to analyze the internal factors of the company, including structure, systems, strategy, skills, style, staff, and shared values. This helps identify areas of weakness or improvement that may need to be addressed during strategy implementation.