Marketing is not just about selling products; it is about understanding markets, customers, and environments in order to create strategies that help firms grow and sustain success. Key concepts such as the marketing mix, the BCG growth-share matrix, SWOT analysis, and different levels of planning all come together to form a complete picture of marketing management.
The Marketing Planning Process
A marketing plan is more than a document—it is a cycle. It begins with analysis, continues with the development of objectives and strategies, and ends with implementation and control. The implementation and control stage is where firms make necessary adjustments, responding to market performance and environmental changes. This stage ensures that the plan remains flexible and relevant.
Strategic Business Units (SBUs) and the Business Portfolio
Large companies often operate as multiple distinct businesses, each serving different markets. These are known as Strategic Business Units (SBUs). For example, a firm that sells both garden supplies and publishing products would treat each as a separate SBU. When you combine all SBUs together, you get the company’s business portfolio, which represents the collection of businesses and products a firm manages.
The BCG Growth-Share Matrix
To decide where to allocate resources, managers often use the BCG matrix, which classifies SBUs based on market growth and market share:
Stars: High growth, high market share. They require heavy investment but promise strong returns.
Cash Cows: High market share in low-growth markets. They generate steady profits with minimal investment. A company like Argo, selling specialized vehicles in a stagnant market, fits this category.
Question Marks (or Problem Children): Low market share in high-growth markets. These require careful consideration—should the company invest heavily or divest?
Dogs: Low market share in low-growth markets. These businesses rarely generate much profit and are often phased out.
Using the BCG matrix helps managers decide how the firm should grow and where to focus investments.
The Ansoff Growth Strategies
Another key framework is Ansoff’s Growth Matrix, which shows four strategies firms use to grow:
Market Penetration: Selling more of existing products to existing markets.
Market Development: Entering new markets with existing products.
Product Development: Creating new products for existing markets.
Diversification: Entering entirely new markets with new products. This is the riskiest strategy but can provide high rewards.
SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats
Strategic analysis begins with an internal and external review:
Strengths and Weaknesses are internal factors. For instance, Serengeti sunglasses leveraging its strong reputation and existing facilities is a strength.
Opportunities and Threats are external. The COVID-19 crisis revealed how global events create both opportunities and threats from the external environment, reminding firms that change can come from anywhere.
The Marketing Mix: The 4 P’s
Every marketing strategy must address the 4 P’s:
Product – what you offer. For example, Alaska Airlines expanding overhead bins is a product strategy.
Price – what customers pay.
Place – how, when, and where the product is distributed. Place decisions ensure products reach the target customer.
Promotion – how the firm communicates value.
Agile Marketing and Real-Time Decisions
Modern firms are moving toward agile marketing, which uses real-time data and analytics to quickly identify opportunities and solve problems. Unlike traditional long-term planning, agile marketing emphasizes flexibility, responsiveness, and rapid testing.
Levels of Planning in Organizations
Planning occurs at different levels within a company:
Strategic Planning – led by top executives (CEOs, presidents). This sets the overall long-term direction.
Functional Planning – led by department heads (VPs of marketing, finance, HR). This ensures each function supports the larger strategy.
Operational Planning – managed by frontline managers (e.g., sales managers). This focuses on short-term, day-to-day tactics and execution.
Defining a Mission
An organization’s mission statement provides direction, but it must strike a balance. If defined too broadly—like “make customers happy”—it lacks focus. If too narrowly, it risks missing opportunities. The best mission statements inspire action while staying realistic.
Marketing strategy blends analysis, planning, execution, and control. Tools like the BCG matrix, Ansoff’s growth strategies, and SWOT analysis guide decision-making, while the 4 P’s ensure a balanced marketing mix. Planning occurs at multiple levels—from CEOs setting vision to sales managers executing tactics—and firms increasingly rely on agile approaches to remain competitive in dynamic environments.
The Marketing Planning Process
A marketing plan is more than a document—it is a cycle. It begins with analysis, continues with the development of objectives and strategies, and ends with implementation and control. The implementation and control stage is where firms make necessary adjustments, responding to market performance and environmental changes. This stage ensures that the plan remains flexible and relevant.
Strategic Business Units (SBUs) and the Business Portfolio
Large companies often operate as multiple distinct businesses, each serving different markets. These are known as Strategic Business Units (SBUs). For example, a firm that sells both garden supplies and publishing products would treat each as a separate SBU. When you combine all SBUs together, you get the company’s business portfolio, which represents the collection of businesses and products a firm manages.
The BCG Growth-Share Matrix
To decide where to allocate resources, managers often use the BCG matrix, which classifies SBUs based on market growth and market share:
Stars: High growth, high market share. They require heavy investment but promise strong returns.
Cash Cows: High market share in low-growth markets. They generate steady profits with minimal investment. A company like Argo, selling specialized vehicles in a stagnant market, fits this category.
Question Marks (or Problem Children): Low market share in high-growth markets. These require careful consideration—should the company invest heavily or divest?
Dogs: Low market share in low-growth markets. These businesses rarely generate much profit and are often phased out.
Using the BCG matrix helps managers decide how the firm should grow and where to focus investments.
The Ansoff Growth Strategies
Another key framework is Ansoff’s Growth Matrix, which shows four strategies firms use to grow:
Market Penetration: Selling more of existing products to existing markets.
Market Development: Entering new markets with existing products.
Product Development: Creating new products for existing markets.
Diversification: Entering entirely new markets with new products. This is the riskiest strategy but can provide high rewards.
SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats
Strategic analysis begins with an internal and external review:
Strengths and Weaknesses are internal factors. For instance, Serengeti sunglasses leveraging its strong reputation and existing facilities is a strength.
Opportunities and Threats are external. The COVID-19 crisis revealed how global events create both opportunities and threats from the external environment, reminding firms that change can come from anywhere.
The Marketing Mix: The 4 P’s
Every marketing strategy must address the 4 P’s:
Product – what you offer. For example, Alaska Airlines expanding overhead bins is a product strategy.
Price – what customers pay.
Place – how, when, and where the product is distributed. Place decisions ensure products reach the target customer.
Promotion – how the firm communicates value.
Agile Marketing and Real-Time Decisions
Modern firms are moving toward agile marketing, which uses real-time data and analytics to quickly identify opportunities and solve problems. Unlike traditional long-term planning, agile marketing emphasizes flexibility, responsiveness, and rapid testing.
Levels of Planning in Organizations
Planning occurs at different levels within a company:
Strategic Planning – led by top executives (CEOs, presidents). This sets the overall long-term direction.
Functional Planning – led by department heads (VPs of marketing, finance, HR). This ensures each function supports the larger strategy.
Operational Planning – managed by frontline managers (e.g., sales managers). This focuses on short-term, day-to-day tactics and execution.
Defining a Mission
An organization’s mission statement provides direction, but it must strike a balance. If defined too broadly—like “make customers happy”—it lacks focus. If too narrowly, it risks missing opportunities. The best mission statements inspire action while staying realistic.
Marketing strategy blends analysis, planning, execution, and control. Tools like the BCG matrix, Ansoff’s growth strategies, and SWOT analysis guide decision-making, while the 4 P’s ensure a balanced marketing mix. Planning occurs at multiple levels—from CEOs setting vision to sales managers executing tactics—and firms increasingly rely on agile approaches to remain competitive in dynamic environments.
