Winning Markets Through Strategic Planning, Implementation, Chapter 4 Winning Markets Through Strategic Planning, Implementation, and Control

Objectives Understand how strategic planning is carried out at the corporate, division, and business unit levels. Learn the major steps in the marketing process.

Objectives Learn what type of content a marketing plan includes. Understand how companies can effectively manage the marketing process.

Nature of Strategic Planning Strategic planning requires actions in three key areas Strategic planning takes place at the corporate, division, business unit and product levels Marketing plans operate at strategic and tactical levels

Corporate and Division Strategic Planning Planning activities include: Defining the Corporate Mission Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs Planning New Businesses, Downsizing Older Businesses

Corporate and Division Strategic Planning Mission statements define the company’s major competitive scopes: Vertical scope Market-segment scope Geographical scope Industry scope Products and applications scope Competence scope

Corporate and Division Strategic Planning Strategic Business Units share three characteristics: Single business or collection of businesses which can be managed separately Has own set of competitors Has manager responsible for strategic planning and profits

Corporate and Division Strategic Planning SBUs are treated as investment portfolios. Resources are allocated by: The BCG Growth-Share Matrix Stars Cash Cows Question Marks Dogs The General Electric Market-Attractiveness Model

Corporate and Division Strategic Planning Planning New Businesses and Downsizing Old Businesses Involves taking advantage of one or more of the following: Intensive growth Integrative growth Diversification growth Harvesting or divesting old businesses

Business Strategic Planning Planning Involves Eight Steps: Business Mission SWOT Analysis: Internal SWOT Analysis: External Goal Formulation Strategy Formulation Program Formulation Implementation Feedback and Control

Strategic Business Planning SWOT Analysis Opportunities and threats stemming from the external environment Internal strengths and weaknesses Monitoring key forces for trends For each trend, conduct an MOA - Marketing Opportunity Analysis

Strategic Business Planning SWOT Analysis Opportunities and threats stemming from the external environment Internal strengths and weaknesses Brand awareness, image, reputation Distribution, pricing, customer loyalty, product benefits Finance, R&D, manufacturing

Business Strategic Planning Effective goals should be formulated so that they are: Arranged hierarchically from broader to more specific objectives Stated in quantitative terms Realistic Consistent with each other and the company mission

Business Strategic Planning Strategy dictates the game plan for achieving goals. Porter’s generic strategies offer a starting point for strategic thinking: Overall cost leadership Differentiation Focus

Business Strategic Planning Program formulation and implementation involves: Developing supporting programs Estimating implementation costs Carefully managing the details so great strategy isn’t ruined by poor implementation Feedback and control is crucial

The Marketing Process Two Views of the Value Delivery Process: Traditional physical process sequence Make the product . . . Sell the product Value creation and delivery sequence Choose the value . . . Provide the value . . . Communicate the value

The Marketing Process Steps in the Marketing Process: Analyzing market opportunities Developing marketing strategies Planning marketing programs Managing the marketing effort

Marketing Plan Contents The Marketing Process Marketing Plan Contents Marketing strategy Action programs Financial projections Controls Executive summary and TOC Current situation Opportunity and issue analysis Objectives

Managing The Marketing Process Marketing Departments can be organized by: Function Geographic area Products or brands Customers or markets Corporate divisions Global aspects

Managing The Marketing Process Building a Companywide Marketing Orientation Requires: Commitment from top management Training programs; employee empowerment Recognitions and rewards programs Modern marketing planning system Process-outcome focus

Managing The Marketing Process Injecting more creativity into the organization can be beneficial Successfully implementing programs requires four sets of skills: Diagnostic skills Identification of company level Implementation skills Evaluation skills

Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of top and middle management Examines whether planned results are achieved

Managing The Marketing Process Five tools are used to evaluate annual plan performance: Sales analysis Market-share analysis Marketing expense-to-sales analysis Financial analysis Market-based scorecard analysis

Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of marketing controller Examines where the company is making and losing money

Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of line & staff and / or marketing controller Evaluates and attempts to improve spending efficiency of marketing expenditures

Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of top management and marketing auditor Examines whether company is pursuing its best opportunities

Managing The Marketing Process Strategic controls should be conducted periodically via: Marketing-effectiveness reviews Marketing audits Additional reviews to consider: Marketing excellence review Ethical and social responsibility review