Lesson 3.

1
Strategic Marketing Vs.
Tactical Marketing

CHERRY- ANN A. GUAVIS

Teacher II

Principles of Marketing
Accountancy, Business, and Management

1
Do you want to edit this presentation?

Make a copy and edit in Download an offline copy

Google Slides. and edit in Microsoft
PowerPoint.
1. On the menu bar, click File and then
Make a copy and Entire 1. On the menu bar, click File and then
Presentation. Download as.
2. Type a name for the file. 2. Choose a file type. Select Microsoft
3. Choose where to save it on your PowerPoint (.pptx).
Google Drive. 3. Wait for the file to be downloaded to
4. Click Ok. your local disk.
5. A new tab will open. Wait for the file 4. Once completely downloaded, open
to be completely loaded on a new the file and edit it using Microsoft
tab. PowerPoint or any offline presentation
6. Once the file has loaded, edit this program.
presentation using Google Slides.
2
Did you know that victory in chess relies on the player’s
ability to plan their moves ahead? It is a game of
strategy.
3
Similarly, a company also
relies on a long-term
strategy to achieve its
goals.

4
To carry out this
strategy, it must
effectively design,
formulate, and
implement tactics
down to the functional
areas.

5
Quick Look

Opportunities to Build
Build Construction Company is a construction and engineering firm
operating across several regions in the Philippines. The firm has been
significantly growing, mainly from its core areas.

6
Quick Look

Opportunities to Build
Recently, the company has won a big contract in a region where they
previously had no presence. The board of directors sees this as an ideal
opportunity to establish regional operations. They assigned a regional
manager to take responsibility for the new central contract.

7
Quick Look

Opportunities to Build
The goal of the company is to establish a profitable ongoing presence in
the new region. The newly assigned regional manager developed a
marketing plan to support this, and the following are included in its
objectives:

● To establish a sustainable business unit in the region

● To ensure the completion of the major contract
● To develop strategic relationships with the key persons aligned to the
regional market

8
Quick Look

Questions to Ponder

1. What is the opportunity being presented to Build Construction Company

in the situation? Do you think they have the capability to pursue the
opportunity?
2. How did the company respond to the opportunity presented to them?
3. Why do you think it is important to set an objective before taking action
in every situation?

9
Learning Competency

Distinguish between strategic and marketing planning in

terms of objectives and processes (ABM_PM11-le-i-9).

10
Learning Objectives

At the end of this lesson, you should be able to do the following:

● Describe the levels of business planning and marketing
planning process.
● Differentiate marketing planning from strategic planning.
● Analyze how strategy and tactical marketing works in an
organization.

11
How is marketing planning different
from the planning of other functional
areas of a company?

12
 Levels of Business Planning

The levels of planning describe the delicate relationship between

planning and decision-making.

13
Levels of Business Planning

Strategic Planning
1 Long-term plan by top-level management

Functional Planning
Long-term and short-term plans by functional
areas (mid-level) management

Operational Planning
Day-to-day plan by managers, supervisors, and
team leaders

14
 Levels of Business Planning

● a long-term plan
● what the business hopes Strategic Planning
to achieve (2-10 years)

15
 Levels of Business Planning

● examines the micro- and

macro-environments that
affect businesses
● uses tools such as SWOT Strategic Planning
analysis, PEST analysis,
and Porter’s framework

16
 Levels of Business Planning

● a short-term plan
● describes the tactics to
achieve the strategic plan
Functional Planning ● breaks down the
strategic goals into
actionable objectives

17
 Levels of Business Planning

● done by functional areas

● focused on allocating
Functional Planning resources to specific
purposes expressed in
budgets

18
 Levels of Business Planning

● single-use or ongoing
● road map for day-to-day
activities
● focus on how broad Operational Planning
objectives can be met
daily

19
 Levels of Business Planning

● maintaining quality
standards, measuring
performance, and Operational Planning
achieving the desired
result

20
 Check Your Progress

1 Compare and contrast strategic and tactical business

planning.

Answer area

21
 Levels of Business Planning

Strategic Planning Tactical Planning

● what steps to achieve the

● what goals to achieve
goals
● where you want to be
● how to get there

22
 Levels of Business Planning

Strategy and Tactics Matrix

23
 Check Your Progress

2 How important is it for strategic marketing and tactical

marketing to work interdependently?

Answer area

24
 Marketing Planning Process: An Overview

● focuses on key aspects of the organization and the

marketplace wherein it operates
● concerned with the logical and objective way of directing
an organization's resources in marketing activities

25
 Marketing Planning Process: An Overview

● framework for analyzing the:

○ business environment
○ organization capabilities
● deciding on the best marketing
actions to achieve the goals

26
 Marketing Planning Process: An Overview

Strategic Marketing

● long-term
● targets the organization’s
goals
● comes from its market and
customer knowledge

27
 Marketing-Planning Process: An Overview

Strategic Marketing
● Examples:
○ business scaling or
expansion
○ exploring new
markets
○ creating a new brand
○ developing a new
product
28
Marketing-Planning Process: An Overview

Tactical Marketing

● relatively shorter in term

● supports the strategic plan
● translates the strategic
marketing to chunks of
action

29
Marketing-Planning Process: An Overview

Tactical Marketing
● Examples
○ generating leads
○ placing ads
○ creating promotional
campaigns
○ offering follow-up
services
○ budgeting
30
 Education

As a pandemic hits in 2020, learning delivery shifted from physical

classes to online learning. As a result, the demand for online digital
learning platforms has soared.

31
 Education

The strategy of companies involved in education technology is to

continuously improve the quality of products and services offered
to teachers and students to help them cope in the changing
learning environment. As a tactic, they hire education professionals
to help them develop and produce quality materials. It shows their
action reflects the goal they want to achieve.

32
 Healthcare

Same with education, the pandemic that hit the world posed a
seemingly insurmountable challenge to the healthcare system.
Since healthcare facilities are focused on helping the COVID-19
patients, other patients needing medical attention are getting less
attention and help.

33
 Healthcare

The goal is to attend to non-COVID patients without compromising

their health any longer and still offer medical assistance to those
who need it. The action taken was to assign separate wards for
COVID and non-COVID patients. In contrast, patients who are not
required to be admitted to the hospital are given the assistance
they need through various forms, including online medical
consultations.

34
 ABC Financial Services Group

ABC Financial Services Group is a global company that sells

both personal and business insurance. ABC employs 60,000
people and operates in 170 countries.

ABC envisions becoming the best insurer, and to achieve this

aim, it has to add value and consistently give customers what
they want, where and when they want it.

Eric Davies, The Marketing Planning Coach, (Hachette, UK: McGraw-Hill Companies, Inc., 2014). 35
 ABC Financial Services Group

The company strives for excellence in all its dealings with

clients and customers. Every individual in an organization
plays a vital role in ensuring that value is added; teamwork,
training, and development are vital.

Eric Davies, The Marketing Planning Coach, (Hachette, UK: McGraw-Hill Companies, Inc., 2014). 36
 ABC Financial Services Group

ABC wants to increase customer satisfaction, and to do this, it

carries out market research with over 7,000 customers to find
out what they want. ABC ensures as well that its products are
readily available and have the wildest distribution footprint.
This will make ABC have the largest presence in banks and
other financial outlets while building strong links with financial
intermediaries.

Eric Davies, The Marketing Planning Coach, (Hachette, UK: McGraw-Hill Companies, Inc., 2014). 37
Keep in Mind

● Success requires strong strategy and tactics. Thus, every organization

has three levels of planning: strategic, functional, and operational.
Each type of plan is developed in different levels of management to
achieve desired outcomes and goals.

38
Keep in Mind

Level of Focus Process

Planning
strategic focuses on long-term examines the factors affecting business,
goals and objectives and navigates through the risks; developed
by top management
functional focuses on short-term tactical objectives of functional areas (e.g.,
goals and objectives marketing, finance, human resources, and
production) to support the strategic goals;
designed by middle management
operational focuses on day-to-day targets to meet the functional plans;
tasks implemented by managers, supervisors,
team leaders, etc.

39
Keep in Mind

● One of the functional areas in business

planning is marketing. The marketing
planning process is composed of key
stages that serves as a framework for
businesses to analyze the environment
and decide on actions to deliver
customer value and establish
profitable customer relationships.

40
Keep in Mind

● Strategic planning in marketing is responsible for differentiating a

brand from its competitors by focusing on its strengths to create value
for its customers and by working on its weaknesses to prevent
business risks as effectively as possible.
● Tactical planning in marketing, on the other hand, supports the
strategy. It translates the strategic marketing into chunks of actions,
and these actions are involved in the successful and effective
implementation of marketing strategies.

41