Intro to Marketing: Marketing Strategy and Planning Strategic Planning Process Corporate SBU Functional Levels

What This Is

The Strategic Planning Process is a systematic approach to developing a marketing strategy that aligns with a company's overall goals and objectives. It involves analyzing the internal and external environment, identifying opportunities and threats, and creating a plan to achieve desired outcomes. For instance, Nike's "Just Do It" campaign was a result of a strategic planning process that helped the brand reposition itself as a leader in the athletic wear market.

Key Frameworks & Metrics

• STP (Segmentation, Targeting, Positioning): Divides the market, selects the most attractive segment(s), and crafts a unique value proposition. Practical use: Develop a marketing plan that targets a specific segment with a tailored message.
• NPS (Net Promoter Score): Measures customer loyalty by asking how likely they are to recommend the brand – a key CX metric. Practical use: Track NPS to identify areas for improvement in customer experience.
• BCG Matrix: Evaluates business units based on market growth and relative market share. Practical use: Prioritize investments in high-growth, high-share businesses.
• AIDA (Attention, Interest, Desire, Action): A model for understanding customer behavior and developing marketing campaigns. Practical use: Create a campaign that grabs attention, generates interest, builds desire, and drives action.
• Customer Journey Map: Visualizes the customer's experience across touchpoints and interactions. Practical use: Identify pain points and opportunities to improve the customer experience.
• 4Ps (Product, Price, Place, Promotion): A framework for developing a marketing mix. Practical use: Develop a product strategy that aligns with pricing, distribution, and promotional efforts.
• 7Ps (Product, Price, Place, Promotion, People, Process, Physical Evidence): An extension of the 4Ps that includes people, process, and physical evidence. Practical use: Develop a service strategy that includes people, process, and physical evidence.
• CAC (Customer Acquisition Cost): The cost of acquiring a new customer. Practical use: Track CAC to ensure it's below LTV.
• LTV (Lifetime Value): The total value of a customer over their lifetime. Practical use: Use LTV to determine whether to invest in customer acquisition or retention.
• ROAS (Return on Ad Spend): The revenue generated by an ad campaign divided by the cost of the campaign. Practical use: Track ROAS to optimize ad spend.
• Customer Retention Rate: The percentage of customers retained over a given period. Practical use: Track customer retention rate to identify areas for improvement in customer experience.

Step-by-Step Process

1. Analyze the internal and external environment: Conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.
2. Develop a mission and vision statement: Define the company's purpose and goals.
3. Conduct market research: Gather data on customer needs, preferences, and behaviors.
4. Develop a marketing strategy: Based on the research, develop a strategy that aligns with the company's goals and objectives.
5. Create a marketing plan: Break down the strategy into specific tactics and actions.
6. Monitor and evaluate performance: Track key metrics and adjust the plan as needed.

Common Mistakes

• Mistake: Confusing market segmentation with personas.
• Correction: Market segmentation involves dividing the market into distinct groups, while personas are fictional representations of ideal customers.
• Mistake: Relying only on last-click attribution.
• Correction: Use a multi-touch attribution model to understand the impact of each touchpoint on the customer journey.
• Mistake: Ignoring LTV when setting CAC.
• Correction: Use LTV to determine whether to invest in customer acquisition or retention.
• Mistake: Failing to track NPS.
• Correction: Track NPS to identify areas for improvement in customer experience.

Marketing Strategy Tips

• When positioning a new product, avoid over-segmentation that leads to a niche with insufficient market size.
• Use the 4Ps to differentiate a product or service, but also consider people, process, and physical evidence.
• When developing a marketing plan, prioritize tactics that align with the company's goals and objectives.

Quick Practice Scenario

A D2C brand's ROAS dropped from 4x to 2x after scaling Facebook ads. What analysis would you perform to diagnose the issue?

Answer: Analyze the ad creative, targeting, and bidding strategy to identify areas for improvement.

Explanation: The drop in ROAS may indicate that the ad creative is not resonating with the target audience, or that the targeting and bidding strategy are not optimized.

Last-Minute Cram Sheet

• ⚠️ Brand equity is not just awareness – it includes perceived quality, loyalty, and brand associations.
• STP involves dividing the market, selecting the most attractive segment(s), and crafting a unique value proposition.
• NPS measures customer loyalty by asking how likely they are to recommend the brand.
• BCG Matrix evaluates business units based on market growth and relative market share.
• AIDA is a model for understanding customer behavior and developing marketing campaigns.
• Customer Journey Map visualizes the customer's experience across touchpoints and interactions.
• 4Ps is a framework for developing a marketing mix.
• 7Ps is an extension of the 4Ps that includes people, process, and physical evidence.
• CAC is the cost of acquiring a new customer.
• LTV is the total value of a customer over their lifetime.
• ROAS is the revenue generated by an ad campaign divided by the cost of the campaign.