COMSA TS Institute of Information TechnoloR,{

Islamabad
Class: MBE (II, IV)
Semester: Fall 2010
Course: International Business
Instructor: Muhammad Irfan

International Business Entry Strateg'i

A Marketing Plan

1. Terms of References
2. Executive summary
3. Business Mission
4. External Market Audit
4.1 Macro Environment
4.1.1 Political/Legal Factors
4.1.2 Economic Factors
4.1.3 Technical Factors
4.1.4 Social/Culture Factors
4.2 The Market
4.2.1 The Future Growth
4.2.2 Consumer Profile
4.3 Competitor Analysis
4.3.1 Porter's Forces Analysis
5. Internal Market Audit
5.1 Operating Results
5.2 Strategic Issue Analysis
5.3 Marketing Mix Effectiveness
5.4 Marketing Structures and Systems
6. SWOT Analysis
7. Marketing Objectives
7.1 Strategic Thrust
7.2 . Strategic Objectives

8. Core Strategy
8.1 Target Market
8.2 Competitors Target
8.3 Competitive Advantage

9.1 Product
9.2 Promotion
9.3 .Price

9.4 Place
10. Budget
The term s of reference state the objectives/aims of the marketing planni ng exercise and its
coverage.

The executive summary describes the report's major findings and recommendations. It is
designed to provide a busy reader with the major issues contained in the report. The
executive summary allows the reader to gain insight to key outcomes without having to read
all of the report. Bullet-points can be used to present the key points in the executive
summary.

The business mission is a broadly defined, enduring statement of purpose that distinguishes
a business from others of its type.

It should state "what business is the company in?" and "what business does it want to be
in?" It may include the markets being served, the customer needs being satisfied, and the
technology used.

A mission statement can dramatically affect the range of a firm's marketing activities by
narrowing or broadening the competitive playing field.

A marketing audit is a systematic examination of a business marketing environment,

objectives. strategies and activities, with a view to identifying key strategic issues, problem
areas, and oppo rtunities. It provides the basis upon which a plan of action to improve
marketing performance can be built.
 • Macro environment
• Micro environment including:
The market

The macro environment consists of broad environmental issues that impinge on the
business. You may wish to analyse it using the following headings:

Not every heading may be used; if it is not likely to impact the company, leave it out. For
every event, state its likely impact on the company and the resulting implications.

• customer analysis including who they are, what choice criteria they use, how they rate
competitive offerings and how the market is segmented;

• distribution analysis, which covers significant movements in power bases, channel

attractiveness
anal se h:'
• Who are the competitors to the company (actual and potential)?
• What are there objectives and strategies, strengths and weaknesses, market shares,
size and profitability?

Finally, any entry barriers that make market entry from new competitors difficult should be
identified.

The internal marketing audit focuses on the activities and performance of the company in the
light of the external marketing environ ment:

• Operating Res ults

• Strategic Issues Analysis
• Marketing Mix Effectiveness
• Marketing structure and systems

This covers operating results (by product, customer, and geog raphic region) for sales,
market share, profit margins and costs.
 • How do we currently segment the market?
• What is our competitive advantage (if any)?
• What are our core competencies?
• How are our products positioned in the marketplace?
• How are products placed in terms of market attractiveness and company
strength (portfolio analysis)?

Each element of the marketing mix (product, promotion, price and place) will be evaluated in
the light of the external marketing environmental analysis.

The marketing structures and systems of the company will be evaluated to identify what
exists and its effectiveness. Marketing structures include marketing organization, marketing
training, and intra and interdepartmental communication. Marketing systems include
marketing information systems, the marketing planning system -and the marketing control
systems.

A SWOT Analysis is a structured approach to evaluating the strategic position of a business

by identifying its strengths, weaknesses, opportunities and threats. It provides a simple
method of synthesizing the results of the marketing audit by summarizing the company's·
strengths and weaknesses as they relate to external opportunities and threats. Strengths
and weaknesses will derive from the internal marketing audit analysis. Opportunities and
threats will derive from the external marketing audit analysis.

As a result of the marketing audit and SWOT analysis, relevant marketing objectives will be
set. Two types of objectives need to be considered: strategic thrust and strategic objectives
(see the next two sections).
Str~tegic thrust defines which products to sell in which markets. The options are existing
products in existing markets (market penetration or expansion), new/related products for
existing markets (product development), existing products in new/related markets (market
development) and new/related products for new/related markets (entry into new markets).

Strategic objectives for products need to be set. The options are build sales and market
share, hold, harvest (improve profit margins) and divest (drop orsell product).

Core marketing strategy involves the achievement of marketing objectives through the
determination of target markets, the setting of competitor targets and the creation of a
competitive advantage (see the next three sections).

A choice of target market(s) has to be made. A target market is a group of

consumers/organizations (segment) that the company wishes to aim its offering and
communications at. It defines where the company wishes to compete.

Besides targeting consumers/organizations, the company will choose competitor targets.

Weak competitors may be viewed as easy prey and resources channelled to attack them.
The choice of target market may define competitor targets and be influenced by them:
market segments with weak competitors may be attractive targets.

A competitive advantage is a clear performance differential over competitors on factors that

are important to target consumers/organizations. This provides the basis of how the
company competes. Major success is dependent on the company creating a competitive
advantage by being better (e.g. superior quality or service), being faster at anticipating or
By defining a target market and understanding the needs of their consumers/organizations, a
marketing mix can be created to meet those needs better than the competition. Decisions
have to be made regarding product, promotion, price and place.

Product decisions involve choices regarding b rand names, features (that create customer
benefits), quality and design, packaging, warranties, and the services that will accompany
the product offering.

Promotion decisions involve choices regarding advertising, personal selling, direct and
Internet marketing, sales and promotions and public relations.

Pricing decisions involve choices regarding list price, discounts, credit terms and payment
periods.

Place decisions involve choices regarding the distribution channels to be used and their
management, the location of outlets, methods of transportation and inventory levels to be
held.
A marketing plan needs a marketing organization to implement it. Reorganization may mean
the establishment of new marketing structures (e.g. brand management) or the creation of a
marketing department for the first time.

Consideration should also be given to implementation issues. These focus on who is

responsible for various activities, how the strategy should be carried out, where things will
happen, and when action will take place.

The aim of control systems is to evaluate the results of the marketing plan so that corrective
action can be taken if performance does not match objectives.
Here, we focus on what parts of the template are important for the assessed marketing plan.
Read these notes in conjunction with the marketing plan template.

Terms of reference
This is a very important part of the project and is the reason why you must obtain
approval from the module leader prior to starting on your work. The terms of
reference refers to the company or brand that you are to do your marketing plan on
and the market in which that plan is to be undertaken. Market can mean a market
segment, a geographical area, an industry sector. But it is important that you have
complete focus before commencing with the work.

2 Executive Summary
Don't worry too much about this. The executive summary should not last more than
one page. It should highlight your key audit'findings and your key recommendations.

3 Business Mission
Don't worry too much if you can't find a business mission! Many companies produce
them but they do not always necessarily refer to specific products or brands. Rather,
you should identify what you believe the mission of your product, brand etc., actually
is. Areas you can look at include innovation, customer service, market and market
position.

4 External Marketing Audit

The external marketing audit will account for some 30% of your marks. There are
some key areas that you need to take into account. Firstly the macro audit - typically
a PEST or STEP analysis. What is important here is that the analysis is appropriate
and relevant to your product or brand. So for-example, students frequently cite
political stability under the influence "political". This is only any im portance if political
stability (or instability) has any particular effect on the chosen product or brand. Try
and ensure that your identified PEST factors focus on customers and competitors
and by inference, company capabilities.

For the micro environment, use a simple 5 forces model. But again, really focus on
issues such as customers and competitors. New entrants and substitutes are orily of
importance if you believe they present a tangible threat during the period of your
plan. As for suppliers, they are only of importance if they present a strategic threat or
your relationship with them presents a marketing opportunity.
5 Internal Marketing Audit
What is important in terms of the internal marketing audit? Well, obviously any
results. But these really do need to refer to your chosen topic. So sales, profits,
market share are all important. After that I am most keen to see how you evaluate
the marketing mix that has been already undertaken by your chosen· product or
brand. Do not skirt over this one. You need to identify the current 4 or 7 P's,
describe each and evaluate each. This is a marketing plan and ultimately, it
succeeds or otherwise on the strength of the marketing mix.

You can then match the mix to strategic issues such as market segment
identification, core competences, competitive advantage and competitive positioning.
Try using perceptual or positioning maps that are described both in your lecture
slides and in your text book.

Don't worry too much about marketing structures and systems, but if you are able to
give some information and comment upon the effectiveness, then all the better. In
many cases, especially for business to business companies or brands, students tend
to identify a lack of formal marketing. This in many cases will suffice.

Now, bring everything together into a SWOT analysis. This is a useful tool but you
need to use it wisely. Strengths and weaknesses refer to the company.
Opportunities and threats refer to the environment. A good way of developing a
useful SWOT is to outline three elements for each box. So for your strengths, try
thinking about strength identification, then prove it, and finally identify the implication
of this particular strength. Repeat these for each of the other three areas of the
SWOT. Don't try and put down every single strength, weakness, opportunity or
threat that you can possibly for ever think about. Rather, highlight ones that are
appropriate and relevant. Importantly, your SWOT must only include information that
is relevant to the preceding marketing audit. Any element of your SWOT which has
not been discussed in your macro, micro or internal audit, is likely to be invalid.

7 Marketing Objectives
Now it is time to move to the other 30% of your marks, your objectives and·
recommendations. Your marketing objectives will really be looking at issues
such as market share, growth, profitability. Your strategic thrust will look at
basic strategies for achieving the objectives. Strategic thrust is best
represented by the Ansoff Matrix, details of which you will have seen in the
lecture slides and the text book. The Ansoff Matrix looks at four strategic
marketing strategy areas ~ m!3rket penetration, market deveJopment, new
 however, you feel that for example, market penetration is all that is needed,
then that is fine.

Next, you need to identify your target markets - segments or specific companies.
Then your competitive targets and finally your competitive advantage. If you can't
find a competitive advantage, then it is highly unlikely that your marketing plan is
going to be effective.

Marketing Mix Decisions

Now it is time to pufthe flesh on the bones. To develop your tactics for
achieving your strategic objectives. Again, do not over generalise. This is
your ultimate operational marketing and you need to ensure that your
marketing mix is robust and well thought out. This is your chance to be
creative. Whatever you do, do not simply repeat what the company is
currently doing! Develop your own marketing mix, but support your
recommendations. You do not need to do a full 7Ps analysis if some of the
elements are not appropriate. But you must ensure a minimum of 4 Ps.

9 Budget
I don't expect a full detailed marketing budget. Some of the figures might be diffrcult
for you to find. If you can get detailed financial information, then that's good.
Otherwise, think about dividing your budget into percentages. So your overall budget
represents 100%. Then you can divide that 100% over the marketing mix and
elements within the marketing mix. So, if your marketing communications part of the
marketing mix accounts for 50% of your budget, you might then wish to divid~ that
50% up amongst the different elements of the marketing communications mix.
Remember however, that the marketing budget is for the marketing mix, not simply
the marketing communications mix.

10 Organisation, implementation, control

Here, you might wish to develop marketing structure information. That is
absolutely fine, but don't take too much time over this. In terms of
implementation it is important that you show the time line for your marketing
plan. In terms of control, demonstrate some simple measures so that you are
able to understand whether what is being achieved is related to what is being
recommended.
 Some more information
1. Maximum number of members in each group is five (5) and the minimum
number is three (3).
2. Either to take your company outside or bring it to Pakistan. The choice is
yours.
3. Two groups can't go for one (1) company.
4. So if you aren't feeling comfort with any of your group member, just divide
your work that must be mentioned in the project. You will be marked
individually for your work.
5. But if the group members didn't tell me in advance about the project division,
the whole group will get the same marks.
6. The crtterion for a company selection is on the basis of "first come first serve".
7. Your project must look like "Project", having proper page numbers and table
of contents.
8. Make it colourful with ideas, thoughts and understanding, not just colourful
diagrams.
9. Last date for submission of project is 23rd December, 2010 (12 Noon).
10. Good luck.