REVIEWER IN It involves reference to strategic plan and

the subsequent development of a marketing

MARKETING plan.

LESSON 1: Market
Opportunity Analysis STEPS IN MARKETING PLANNING
PROCESS
Market Opportunity Analysis- It is a tool
 Identifying the company’s vision,
to identify and assess attractiveness of the
mission, and values
 Strategic Planning
 Implementation Planning
 Marketing plan
Identifying the company’s vision, mission,
and values
Company Orientation-The business
focused on the guides of a company’ general
directions.
business.
According to Kotler (2010), the different
company orientations toward the market
Vision-Mission- it defines the business place include the production, orientation,
reason for existence. sales orientation, product orientation, market
orientation and societal marketing
Strategic plan- refer to the activities and orientation.
resource allocations are defined for the long
term goals. Kotler believed marketing was an essential
part of economics and he saw that demand
Marketing plan -an outlines how the was influenced not only by price but also by
organization intends to develop, price, advertising, promotions, sales forces, direct
promote and distribute products to market mail, middlemen and distribution channels.
targets through competition and consumer He also considered as a “Father of
analysis. Marketing”.
Financial Plan- Refers to an appropriate Production Orientation- The business is
resources necessary to carry out business focused on producing more units to achieve
objectives are expressed in financial economies of scale. They invest more on the
statements to be communicated to acquisition of production equipment. The
stakeholders. companies with a strong production
Operations plan- refers to the process and orientation believe that the consumers will
systems through which an organization patronize products that are widely available
provides goods and services to customers. and inexpensive.

MARKETING PLANNING PROCESS

Sales Orientation- Businesses make the current and future business
product that they think they can sell in the positioning.
marketplace. They invest more on  Micro Environment
equipment and activities that will lead to  Macro Environment
selling efficiency.
Micro Environment is made of factors that
Product Orientation- The business focused have a direct impact on a business
on making high quality products. They operations and success.
believed that a superior product, one that
CUSTOMERS- This is a group of people
offers the best quality and performance or
whose needs, wants and demands should be
something that has innovative features can
meet and satisfied by the company.
sell itself. They invest more on product
development and research. EMPLOYEE- These are the people who are
employed by the company.
Example: Hermes, Louis Vuitton
COMPETITORS- These are other business
Market Orientation-The business focused
that offer products that can satisfy the needs,
on consumer, thereby leading to profit. The
wants and demands of the same customers.
company believes that if they know what the
consumer needs and wants and base their SUPPLIERS- They provide the business
product development and marketing raw materials that they need in running the
strategies according to the needs and wants, business.
consumers will buy their products. They
invest on consumer research. SHAREHOLDERS AND EQUITY
PARTNERS- These are investors whose
Societal Marketing Orientation- The interests also need to satisfied by the
business applies marketing principles and business.
techniques to create, communicate and
deliver value to influence target market PUBLIC- These are group of individuals
behavior that benefit the target market and who are relevant to the business ( media,
the society. newspapers, magazines among other that
can anything about your business or
Example: ABS-CBN Foundation, GMA industry.
Foundation, etc.
MACRO ENVIRONMENT- This is made
STRATEGIC PLANNING up of factors that have an indirect impact on
business operations. To analyze the macro
- It defined as designing way for a
environment we will using the acronym
business to achieve its objectives.
PESTLE.
Strategic plan are long term and
could cover three to five years. Political factors (P)- It includes
government policy, political stability,
ENVIRONMENTAL ASSESSMENT
foreign trade policy, tax policy, labor law,
- It will cover both the micro and environmental law, trade restrictions and so
macro environment to evaluate on.
Example, odd-even scheme of the actions. The average carbon footprint for a
government bans on private vehicle. person in the United States is 16 tons, one of
the highest rates in the world.
Economic factors (E)- it includes the
economic growth, interest rates, exchange BUSINESS DIRECTION- Setting a clear
rates, inflation, disposable income of business direction doesn’t have to be a
consumers and business. complicated process – in fact the less
complicated the better. In its simplest terms
Example, exchange rates for US dollars
it is a matter of deciding where you want to
Social factors (S)- It includes the population be at some point in the future.
growth, age distribution, health
“Now”, critically assessing your current
consciousness, and career attitudes, among
situation;
others.
“How”, setting in place strategies to get you
Example, if the population growth of a
from where you are now to where you want
country is seen as increasing, they will an
to be;
effect on demand for population control
products. “When”, add a time frame; and
Technological factors (T)- It includes new “Measuring”, a means of measuring how
ways of producing goods and services, new well you are actually doing against what you
ways of distributing goods and services and thought you would do. and you have it – a
new ways of communicating with target clear business direction.
markets.
Market objectives- These are objectives
Example: Technological advance that refer to market leadership, market
spread and customer service.
Legal factors (L)- It includes the health and
safety, equal opportunities, advertising Performance Objectives- These are
standards, consumer right and laws, product objectives related to growth and
labeling and product safety. profitability.
Example: ASEAN integration, consumer Market objectives- These are objectives
rights and laws across ASEAN. that refer to market leadership, market
spread and customer service.
Environmental factors (E)- It includes the
scarcity of raw materials , pollution targets, Market leadership is a company or product
doing business as an ethical and sustainable with the largest market share in a specific
company, carbon footprints target set by the goods or service industry. The
government. characteristics are strong marketing, unique
offering and higher customer satisfactions.
Example: Global warming and carbon
footprints Market share represents the percentage of
an industry, or a market's total sales, that is
Carbon footprint is the total amount of
earned by a particular company over a
greenhouse gases (including carbon dioxide
specified time period.
and methane) that are generated by our
Market share is calculated by taking the Narrow market ( market for a security with
company's sales over the period and few transactions)
dividing it by the total sales of the industry
Source of competitive advantage:
over the same period.
Differentiation (a marketing strategy
Internal Objectives- These objectives can
designed to distinguish a company's
be stated as those connected with efficiency
products or services from the competition).
in processes and personnel management.
Low cost (A pricing strategy in which a
External Objectives- These objectives are
company offers a relatively low price to
related with social responsibility.
stimulate demand and gain market share)
PORTER’S GENERIC STRATEGIES
COST LEADERSHIP STRATEGY- It
Porter’s industry-independent generic refers to companies that can achieve
strategies consider a company’s competitive economies of scale in production and
advantage and competitive edge. marketing and covers a broad market. It is
aligned with companies with strong
 Cost Leadership
production orientation and with a business
 Differentiation strategy
direction leading toward market spread.
 Cost Focus Strategy
 Differentiation Focus strategy DIFFERENTIATION STRATEGY- This
quadrant is relevant to companies that have
distinct products and covers a broad market.
The differentiation strategy is aligned with
companies with strong product orientation
and with a business direction leading toward
market leadership.
COST FOCUS STRATEGY- This
quadrant is relevant to companies that are
low-cost providers to the segment. It is
aligned with the companies with strong
production and marketing orientation and
with a business direction leading toward
What is competitive advantage? market leadership and efficiency in
- A higher profit than the competitor’s processes.
in the market. DIFFERENTIATION FOCUS
How to gain the competitive advantage? STRATEGY- This quadrant is relevant to
companies that have distinct products and
Scope of strategy ( reach/customer base): covers narrower segment. The company is
Broad market ( typically has the advantage social enterprise that would like to make the
of a larger customer base. Products that do most of this business to help uplift the poor
well in a broad market usually appeal to a and sustain the environment.
wide range of users)
 EXECUTIVE SUMMARY -This provides
an overview of the marketing plan including
the strategies and cost involved in
implementing the plan.
SITUATION ANALYSIS- This section
will include a brief company background
indicating your mission, vision and strategic
direction.
MARKET ANALYSIS- According to
David A. Aaker, market analysis covers the
IMPLEMENTATION PLANNING- In following:
implementation planning, you identify MARKET SIZE- This refers to the current
relevant derivative plan to achieve your and future number of customers and number
goals. of units sold. You can get the information
form the government data, trade associations
GOALS OF MARKETING- The goals of and customer survey. Market size can be
marketing can be monetary, marketing expressed in terms of population.
related or social. It depends on the
company’s mission and vision, business MARKET GROWTH RATE- This refers
direction, and company strategy. to the projected increase of the market size.
Market growth rate based on past data.
MONETARY GOALS- It refers to
performance. Indicators of performance are MARKET PROFITABILITY- This refers
growth and profitability. In particular, to the profit potential for a market. Porter’s
monetary goals can be expressed in terms of five forces can be used to determine
market share, ROI or net profit. profitability.

MARKETING –RELATED GOALS- It Buyer Power- this is manifested when

refers to direction. In particular, marketing buyers are able to get together and demand
related goals ban be expressed in terms of higher quality of service or lower price.
market leadership, market share and Supplier Power this is manifested when
customer service. suppliers can pressure business by raising
SOCIAL-RELATED GOALS- Social prices, lowering quality, or reducing
related goals refer to external objectives. In availability of products.
particular, social related goals can be INDUSTRY COST STRUCTURE- This
expressed in terms of social responsibility. refers to the types and relative proportions
MARKETING PLAN- A marketing plan is of fixed and variable costs that is business
a one-year road map. It is a plan that incurs.
specifies a set of actions that the company DISTRIBUTION CHANNELS- This is to
will take to achieve its marketing objectives. existing and emerging channels. These are
The different parts of marketing plan are: the chain of businesses through which a
good or service passes until it reaches the The firms are free to leave with no suck
final buyer or the end consumer. costs – which are costs that are not after a
Distribution channel can include firm leaves a market.
wholesalers, retailers , distributors and even
Internal, further classify them
the internet.
as strengths or weaknesses and for
MARKET TRENDS- Businesses need to
make sure that they can keep up with the those classified as external such as
trends in the marketplace. To gain advantage
as a marketer, you should be able to predict opportunities or threats.
trends and find the right timing for the
product offering.
From the amount of information that needs
to processed, we need a tool to used to aid
the processing the information this is called
SWOT matrix.
SWOT matrix- It is strategic planning and
strategic management technique used to help
a person or organization identify strengths,
weaknesses, opportunities and threats S – Specific refers to the detail exactly what
related to business competition. need to be done.
CUSTOMER ANALYSIS- The gaps and M- Measurable it is achievement or progress
opportunities related to consumer analysis . can be measured
The results of this analysis could be used in
updating the SpTP as needed. A – Attainable refers tot eh objective is
accepted by those responsible
COMPETITIVE ANALYSIS- The gaps
and opportunities related to competitive achieving it
analysis. The result of this analysis could be R- Realistic refers to the objective is
used in updating the position of the product possible to attain
as needed. Also, it refers to the market space
and the players in the market space. T – Time-bound – time period for
achievement is clearly stated
Market space is online space that facilitates
bi-directional commerce. ANSOFF’S STRATEGY MATRIX

For example, eBay, Amazon, Lazada, The matrix was developed by applied
mathematician and business
Shoppe, and among others.
manager, H. Igor Ansoff, and was published
Contestable Market- when the firms can in the Harvard Business
freely enter and leave. This means that costs
of entry and exit are zero. Review in 1957. The Ansoff Matrix has
helped many marketers and
executives better understand the risks It focuses on introducing new products to an
inherent in growing their business. existing market. The strategy is to develop
new products serving the same market. This
Ansoff’s model states that a business has the
strategy has medium risk since the company
probability to grow by
is familiar with the market but not the new
using particular strategies. These strategies product. The firms are able to provide
involve making the most of innovative solutions to meet the needs of the
existing market. This strategies focuses on:
existing markets and products, introducing
new products or entering new target
markets. It is also a tool used by firms to
 investing in R&D to develop new
analyze and plan their strategies for growth.
products to cater to the
The matrix shows four strategies that can be
 existing market
used to help a firm grow and also analyzes
 identifying changing customer needs
the risk associated with each strategy.
 launching new and unique trends.
MARKET DEVELOPMENT: This
strategy focuses on entering a new market
using existing products. The strategy is to
develop new markets for existing products.
This strategy has medium risk since the
company is familiar with the product but not
with the market. Expanding into new
markets may mean expanding into new
MARKET PENETRATION geographic regions, customer segments, etc.

This focuses on increasing sales of existing DIVERSIFICATION: Focuses on entering

products to an existing market. The strategy a new market with the introduction of new
for market is to reduce prices and promote products. This strategy on entering a new
heavily. This strategy has the lowest risk market using existing products. The strategy
since company knows the product and the is to develop new markets. This strategy has
market. In other words, a firm is aiming to high risk since the company is not familiar
increase its market share with a market with the product and the market.
penetration strategy.
IMPLEMENTATION- This is the outline
This strategy used to: how the execution will be accomplished . In
other words, it's about bringing your
 Increase or maintain market share of marketing plan to life.
existing products
 Increasing promotion and EVALUATION AND CONTROL-
distribution efforts Evaluation and control refer to activities that
 Acquiring a competitor in the same monitor the attainment of objectives and its
marketplace evaluation.

PRODUCT DEVELOPMENT: Example, monitoring of consumer feedback.