Strategic Marketing (2200) Guideline for preparation of Strategic Marketing Plan December 2017 Increase Customer Lifetime Value

Organization Summary Provide a brief summary of the organization using the following guideline. Organization name Type of organization Size of organization -(Turnover and or number of employees Range of products/services provided Customer base e.g. B2B/B2C Main competitors

Strategic Audit Task 1 b) a) Using relevant models and frameworks: Analyze the internal and external environments with a view to understanding the organization’s current performance in delivering customer lifetime value. (11 Marks). The audit requires one to critically evaluate how your organization currently serves customers including product/service portfolio, channels to market, competitive aspect .

Strategic Audit Internal Analysis Application External Analysis Resource Based View Analysis of resources PESTEL Analysis Analysis of external environment VRIO Analysis of capabilities Porters Five Forces Analysis of the competitive environment MCkinseys 7S’s Competitor Analysis Analysis of competitor BCG Matrix Analysis of product/services Customer Analysis Analysis of customer portfolio Mendelows Matrix Stakeholder Analysis

Strategic Audit Task 1 b) b)Summarize the audit findings in a SWOT/TOWS analysis relating to how the organization is positioned, from the perspective of improving customer lifetime value. (4 Marks) The internal analysis may contain analysis of resources, branding, culture particularly towards customers (Customer relationship Management) and other relevant assets. The candidate should also consider an appraisal of the organization’s ability to prioritize external and internal marketing intelligence.

Strategic Audit The SWOT/TOWS Analysis should include a conclusion, justification, as to how the organization’s long term survival is affected by its current management of customers for customers for extended lifetime value.

Strategic Audit Strengths Weaknesses Opportunities Threats

Objectives Task 1c) Appraise the organization Vision/Mission and its overall marketing objectives. The candidate should show a clear understanding of the role of vision and Mission in supporting improved customer lifetime value, and recommend changes if needed.

Objectives Task 1c) b) Appraise the organization Vision/Mission and its overall marketing objectives. The candidate should show a clear understanding of the role of vision and Mission in supporting improved customer lifetime value, and recommend changes if needed.

Objectives Task 1c) a) Appraise the organization Vision/Mission and its overall marketing objectives. b) Recommend new objectives related to strengthening the organization’s competitive positioning through improved customer lifetime value. (4 Marks) The candidate should show a clear understanding of the role of vision and Mission in supporting improved customer lifetime value, and recommend changes if needed.

Objectives Current Objectives Critical review Proposed Objective Articulate the current objective Use a citation to define the objective Rewrite your proposed objective Vision Mission Corporate Objectives Marketing Objectives Review current marketing objectives based on your findings from the audit. If not fit for purpose then propose new marketing objectives aligned to your findings from the audit on the backdrop of improved CLV

Strategic Options Use appropriate models and frameworks to evaluate the strategic options for enhancing customer value to help improve the organization’s competitive position in its chosen markets. (6 Marks) These may include but are not limited to the strategies to develop the products/services, customer focused culture and CRM. Strategic options should be justified in relation to how they might support improved customer lifetime value

Strategic Options Strategy Application Justification Define strategy using a citation. Growth Strategies Corporate Strategies-e.g. Market Development, Product development, Market penetration, Diversification Articulate the relevant growth strategies and how the strategy/ies will be applied in your organization for competitive advantage How might the strategy support improved customer lifetime value Competitive strategies Differentiation, Cost Advantage, Focus. Articulate the relevant competitive strategies and how they will be applied for competitive advantage Functional Strategies Innovation, Corporate Branding, IMC , CRM, Market Orientation Reputation , Articulate the functional strategies and how they will be applied

STP (Segmentation, Targeting & Positioning Strategy Application Justification Define segmentation using a citation. Articulate how your organization will segment How might the strategy support improved customer lifetime value Define Targeting using a relevant citation Articulate how your organization will target Define Positioning using a relevant citation Articulate how your organization will position

Tactics e) Propose tactical tools that should be used to effectively implement the marketing plan (6 Marks). This section should cover at least the marketing mix elements, as well as any other tactical tools and framework for implementing the marketing plan. (6 Marks)

Tactics Element Application Impact Product Articulate how the product will be applied Impact on your objectives Price Articulate the pricing strategy you will adopt and justify why the particular strategy Place Articulate how you will distribute your products/services Promotion Articulate how you will promote (offline and online) Physical evidence Articulate how you will brand your premises and other materials process Articulate the processes you will apply in achieving CLV People Articulate the caliber of people you will hire with CLV in mind.

Controls and Measurements f) Discussion and recommendation of: Proposed tools for implementation of the marketing plan Proposed measurement tools for determining the success of the marketing plan, including financial, resources and time based measures. (4 Marks) This should include an analysis of the critical success factors that are key to controlling the implementation of the marketing plan. Measures should include resources, financial and time based measures.

Controls Under this section detail the various measures that can be applied to gauge performance. The Balanced Score Card might be a useful measure.

Critical Success Factors Articulate the factors that are critical for the organization to achieve its Mission. E.g. Customer Satisfaction Employee Turnover Product Quality Market share

Contingency Articulate the potential challenges during the implementation of the plan.

Schedule of activities Use a Gantt Chart to articulate the activities to be undertaken by whom and the timelines.