Putting Together a Marketing Strategy

Marketing planning means decision-making. The IMMP describes strategic marketing and acts as a blueprint for the market planning decisions that must be made. In strategic marketing it is essential that marketing strategies form a core for marketing and a basis for planning structures and functions. Structures form an "optimal" environment within which to execute strategies. Strategies and structures are followed by marketing functions, which define the practical actions needed to carry out the strategies. The strategic marketing plan is executed through an "annual marketing plan," which defines the detailed annual marketing targets and the actions necessary to reach those targets.

While a strategic marketing plan for the market analyst means logical strategy-structure-function combinations, where the chosen structures and functions are used to execute the chosen strategies, a strategic marketing plan for the customer means a bundle of benefits. Strategies, structures and functions form a unified entity where each part contributes to a total package of benefits for the customer.

Decisions must be based on appropriate information. When strategic marketing planning is defined as information collection and decision making, the whole planning process can be understood as a research process where marketing decisions are conclusions based on analysis and interpretation of market data. The steps illustrate the planning and implementation of a scientific research process. They also illustrate how a strategic marketing planning process can be planned and executed. The core idea of this model is that planning is a sequential process: each step affects the following ones.

1. Identifying the problem (Problem identification)
2. Stating the purpose (Purpose statement)
3. Designing the framework for analysis and measurement (Framework for analysis and measurement)
4. Collecting and analyzing data (Data collection and analysis)
5. Conclusions (Marketing strategies, structures, and functions)
   

The following text describes how the step-by-step process of scientific research can be used in strategic marketing planning. It also describes the general contents of a strategic marketing plan. The text does not provide the details of marketing research, but outlines the actions that must be taken to conduct it. "How" questions can be answered by referencing books which specialize in research or marketing research (especially research methods).

1. Problem Identification

The purpose of the planning process cannot be properly defined if the planner doesn’t fully understand the problem to be solved. The conditions out of which the need for new strategies emerges must be made explicit. Problem identification allows the marketing planner to become familiar with the problem, and is also important for those who will ultimately use the plan.

The content of problem identification depends on the situation:

• The marketing environment may have changed, and the company must adjust its marketing strategies to the new environment. In this case the problem analysis describes the environmental change and its drivers.
• There may be weaknesses or shortcomings in the present marketing strategies, structures, and functions of the company. These must be thoroughly analyzed and described before defining the purpose of the planning process. If the planner is not familiar with the shortcomings, he/she is not able to plan a project that will fix the situation.
• The strategic marketing plan may be part of an investment project launched by corporate management. In this case the problem analysis explains the background of the investment plan and its justification in the corporate context. Market knowledge has naturally been part of the investment decision, but in the beginning of a strategic marketing planning process, the corporate context must be made explicit.
• In some cases technological improvements or inventions make it possible for the company to produce new, more developed products that can better satisfy customer needs. In this case the problem identification describes the technological possibilities with respect to customer needs.
  

After analyzing the problem, the planner is ready to determine how research and development/planning might help the company. Problem identification, which describes the context from which the need for the strategic marketing plan emerges, drives the whole planning process. After careful problem identification, the planner is ready to define the purpose of the project in the most appropriate way.

2. Purpose Statement

A prerequisite for a proper strategic marketing plan is that the planner knows precisely the sort of information that is needed and the types of decisions that must be made. It is good to list both the information that must be gathered and the decisions that must be made based on the gathered and analyzed information.

In various phases of the planning project, the planner must communicate with various project stakeholders. The purpose statement allows outsiders to quickly get the most precise picture of the project. The purpose statement is also the standard by which the results and conclusions of the project are assessed in several phases of the project.

The following example illustrates the purpose statement of a strategic marketing plan. A sawmilling company noticed that both the technological possibilities of its sawmill and the customer demands of the UK market had changed. The changes had invalidated the marketing methods formerly used by the sawmill. The sawmill started a strategic marketing development project with the purpose statement defined as follows:

The general objective of the project is to support the development of the company’s sawnwood marketing targeting the UK. The key decisions in marketing development concern strategies, structures, and functions. Through these decisions the company is aiming to adapt its technological possibilities and strengths to the market opportunities. The market study will produce the necessary information for a strategic marketing decision-making process. An important objective is to produce new information about the macro- and micro-environment of UK sawnwood markets. Further objectives of the study are to identify the needs and buying behavior of potential customers. Based on market information, company management will formulate marketing strategies, structures, and functions for the UK market. When making these decisions, market information and internal company information will be taken into consideration.

The purpose statement was followed by a more detailed set of study questions, which were proposed by the marketing planner and approved by company managers responsible for strategic plans. The first group of questions deals with the market environment and the second is connected to customers.

What are the present and future characteristics of UK sawnwood markets?

• softwood sawnwood demand and its development in the UK
• softwood sawnwood supply and its development in the UK
• current economic and technical environment conditions in the UK
• overview of the main competing producers of softwood sawnwood
• overview of products that compete with softwood sawnwood in the UK
• a description of the change in the structure of physical distribution and how it is currently functioning
• summary of the most promising customer segments and insights into future segments
  

What are the needs and buying behavior of potential customer companies?

• the present and future use of sawnwood
• the price paid for raw material
• who makes the buying decisions in a company
• how suppliers are chosen
• what attitudes are towards direct trade
• what preferences are held regarding the raw material
• what kind of attitudes are held toward special and custom-made sawnwood and their use
• which loading ports are favored and which are not
• which delivery terms are most favored
• what kind of information and service needs exist
• how well are shipping marks known
• what are the impressions of the sawmill’s shipping marks, provided that the (possible) customer has some experience with them
  

The data collected should provide answers to the following questions concerning development of strategies, structures, and functions of the sawmilling company.

1.) Marketing strategies in the UK

• which products should the company produce for the UK market
• which sectors or companies should be chosen as customers
• in what geographic region of the UK should marketing be concentrated
• which core competencies should be used
  

2.) Marketing structures in the UK market

• how should marketing be organized
• which marketing channels should be used
• which channels of physical distribution should be used
  

3.) Marketing functions in the UK

• how should personal selling be implemented
• how should marketing communication be implemented
• how should physical distribution be implemented
• how should other communication take place
  

In the example above, the objectives of the project are explained in a very detailed manner. The reader can easily see the kind of information that will be produced and the kind of decisions that will be made. It is easy for the reader to provide feedback on this sort of detailed purpose statement.

3) Framework(s) for analysis and measurement

To understand and conceptualize the operating environment and the strategic marketing planning decision-making situation, models can be useful. Models are used as frameworks for the planning process. As background for a marketing planning process, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is often used. It is up to the analyst to determine how best to measure the various elements of the model utilized. For example, the Information Environment Model has a block titled "demand". In the context of the marketing planning project, how should demand be measured?

The marketing planner should see the whole marketing environment as information structured in a certain way. Here we assume that information relevant to the planning process is structured according to the Information Environment Model (Figure 7-1). In marketing planning, the model guides information collection, and how the model is used, what type of information is emphasized, and so forth, will all depend on the planning situation. Measurement of elements of the model also depends upon the marketing planning situation.

Typically, a strategic marketing planning process includes both a market analysis and a detailed customer study. A deeper customer analysis requires a framework of its own. The framework illustrates the significant aspects of customer behavior that should be considered in the study.

4) Data collection and analysis

Secondary data is information that can be used in the study, but has not been collected for that specific purpose. Primary data is data collected specifically for the purpose of the study. The type and content of the data is based on the purpose of the study. The purpose directs data collection through the framework and measurement of its elements. Details regarding data collection and analysis can be found in books specializing in research or marketing research.

Besides "scientific" issues, practical things like timetables, budgets, and so forth must be considered.

5) Conclusions

The "conclusions" part contains the actual marketing plan. It can be structured according to the organization of the IMMP. The following example gives a general structure for a marketing-planning project report. It illustrates how easy forming a list of contents for the report can be if the planner has used models to guide the planning and execution of the project.