1. MKTM028 Strategic Marketing
Week 2 : Strategic Planning
Dr Stephen Castle
Dr Elizabeth Kim

2. I pictured a rainbow You held it in your hands I had flashes But you saw the plan I wandered out in the world for years While you just stayed in your room I saw the crescent You saw the whole of the moon
Waterboys "The Whole of the Moon", 1985

3. Learning Objectives Understand what is strategy
Appreciate the importance of strategic planning
Understand the planning process
Appreciate the breakdown of planning activity: external/internal; macro/meso/micro environment

4. Strategic Marketing Planning
“Strategy is the matching of the activities of an organisation to the environment in which it operates and to its own resource capabilities.”
Johnson et al. 2008

5. Strategy: the art of conducting a campaign
So what is “strategy”?
Strategy: the art of conducting a campaign
Tactics: manoeuvring in the face of the enemy

6. Issues for Strategy:
What is the major purpose of the organisation - its raison d’etre? What are/should be our goals? What are our values/culture? What changes do we see in our external environment - with what impact? What markets should we be in? How should we compete? Is our structure effective? Are our resources (especially human resources) appropriate? How do we replenish them? Do we need to change to create/preserve effectiveness?

7. Strategic Planning Framework
Where are we now? Review current strategic position and clarify mission, vision, and values
Where do we want to get to? Establish competitive advantage and your vision. Clearly see the direction the organization is headed
How will we get there? Lay out the road to connect where you are now to where you are going. Set strategic objectives, goals, and action items and how you will execute your plan, and control & evaluate it.

8. So - what’s marketing strategy all about?

9. Marketing Strategy is About:
doing what matters most to the customer getting what we want through long-term customer satisfaction building new and better ways of looking at the market to get leverage to change what we do “delivering products and services which offer better value over rivals in the market” Doyle (1997)

10. The purpose of marketing planning
“The overall purpose of marketing and its principal focus is the identification and creation of competitive advantage.”
McDonald (2004)

11. What is marketing planning?
“A logical sequence of activities leading to the setting of marketing objectives and the formulation of plans for achieving them.” (Mcdonald 2004)

12. Why is it necessary?
Increasing turbulence, complexity & competitiveness Faster technological change The need for organisations to identify the sources of their competitive advantage And………??

13. The Strategic Triangle
Company
The Macro
Environment
Solution? Formula?
Company Strategy -
allocation of resources
Customers
Competitors
Ohmae, K (1982) The Mind of the Strategist

14. Each of the 4C’s shows radical change:
CUSTOMERS’ expectations have risen - and are no longer the passive people of marketing texts COMPETITORS are more vigorous, with radically innovative new entrants COMPANIES have changed structures – BPR*, outsourcing, downsizing, strategic alliances. New ways of doing business - direct, e-commerce, microsegmentation - have emerged CHANNELS have become stronger, more flexible and more assertive. * Business Process Reengineering

15. Planning?
Planning is the dynamic force which helps to drive the organisation forward by co-ordinating resources and channelling them towards the achievement of predetermined goals

16. Deliberate and emergent strategies (Mintzberg and Quinn,1995)
Intended
strategy
Realised
strategy
Deliberate strategy
Emergent
strategy
Unrealised
strategy

17. The Making of Success
“Every successful business strategy is a mixture of accident and design, of planning and serendipity”.
John Kay, FT,

18. The advantages of planning
reduces the risk from increasing size imbues a sense of purpose and direction ensures response, proactive not reactive provides a source of motivation, involvement and ownership establishes standards of performance to be met.

19. Benefits of planning
Hooley et al, 2012

20. The elements of a plan What has to be done OBJECTIVES:
what we want to achieve
How and by when it has to be done
STRATEGY:
a broad statement of means
Who should do what to get it done
TACTICS:
details, costed and allocated

21. Planning stages
Hooley et al, 2012

22. The Mission Statement Based on answers to the following questions:
what is our business?
who is the customer?
what is value to the customer?
what will our business be?
what should our business be?

23. Components of mission
Hooley et al, 2012

24. Mission Statements
Google – “organise the World’s information & make it universally accessible & useful.” Cobra – “to aspire & achieve against the odds.” …………………………..what do you think?

25. Born in India in 1961, Karan (Lord) Bilimoria is the son of a general in the Indian army

26. External audit:
a detailed examination of the markets, social, business, and economic environments (etc) in which the organisation operates.

27. Internal audit:
an evaluation of the firm’s entire value chain

28. forces at the national/global level Meso-environment
Macro-environment
forces at the national/global level
Meso-environment
forces at the market level
Micro-environment
forces at the Internal/individual level
CAREFUL

30. PESTEL Political P E Economic S Social/cultural Technological T
Environmental
Legal factors
More on this next week…..

31. More commonly people talk of
Macro and Micro environments (no Meso):
Macro-environment
PESTEL
Micro-environment
Employees, customers, suppliers, competitors, other stakeholders

32. Creating a competitive positioning, which…………
Is clearly grounded in the marketplace
Assesses market attractiveness
Evaluates the organisation’s potential to serve that market place.

33. Generating a competitive advantage
Cost Leadership
Differentiation
Focus
The 3 generic strategies (Porter, 1980)
……Relevance today?..... critical evaluation…. What do you think?

34. Effective product portfolio analysis
Managing today & tomorrow
Managing risk
Managing cash flow
More of this in week 9

35. SWOT
A distillation of the findings of the internal and external audits which draws attention to the critical factors facing the company classified as:
Strengths
Weaknesses
Opportunities
Threats

36. Hooley et al, 2012

37. Hooley et al, 2012

38. Strengths
Weaknesses
Opportunities
Threats
Internal
External

39. Strategic Focus

40. Objectives should ideally be SMART
Specific Measurable Achievable Realistic Timebound

41. Marketing Strategies
Build brand awareness by – sponsorship campaign? Grow market share by – increasing promotional spend ££ Reposition the brand by – developing new products in premium segments

42. Marketing programmes/tactics
Product Price Promotion Place Physical Evidence Process People

43. Budgets
How much is my marketing spend going to cost? How am I going to justify this spend to senior management? How will I evaluate the effectiveness of This spend? Did it achieve my objectives?

44. Typical objectives monitored are:
Control & monitoring
Typical objectives monitored are:
Financial targets, e.g. sales/contribution/profit
Market share
Price level achieved
Quality levels achieved
Customer satisfaction

45. Evaluation?
What if things are off plan? Maybe objectives are being missed Perhaps strategies are not working The balance of the ‘marketing mix’ is poorly aligned

46. Good marketing operators respond & react to any deviation from the marketing plan & amend the variables they can control to try & improve the business outcome………………..

48. So - is planning worthwhile?
“It doesn’t really matter what business you’re in, planners outperform non-planners”
Smith, Marketing Business, June 2003.
“The evidence seems to be that most business successes come from careful strategic choices”
Piercy (2009)

49. Strategic Planning Framework
Where are we now? Review current strategic position and clarify mission, vision, and values.
Where do we want to get to? Establish competitive advantage and your vision. Clearly see the direction the organization is headed.
How will we get there? Lay out the road to connect where you are now to where you are going. Set strategic objectives, goals, and action items and how you will execute your plan, and control & evaluate it

50. Learning Objectives Understand what is strategy
Appreciate the importance of strategic planning
Understand the planning process
Appreciate the breakdown of planning activity: external/internal; macro/meso/micro environment