1. Corporate Strategic Planning
Asia-Pacific Marketing Federation
Certified Professional Marketer
Copyright
Marketing Institute of Singapore

2. Outline Introduction Meaning & Role of Strategic Planning
Corporate Mission
Strategic Business Units (SBU)
Marketing Audit

3. Strategic Planning
…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.
Org Objectives
Resources
Changing Environment
Strategic Fit

4. The Role of Strategy Strategy: Corporate Corporate Mission & Business
Functional
Operating Plans
Corporate
Mission &
Objectives

5. Sun Tze on Strategy
“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”

6. Strategic Marketing
“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.”
John Scully

7. Corporate Mission Broad purposes of the organization
General criteria for assessing the long-term organizational effectiveness
Driven by heritage & environment
Mission statements are increasingly being developed at the SBU level as well
Mission statements may be developed at the SBU level in order to make sense, especially for large organization with diverse business interests e.g. NTUC INCOME and NTUC Fairprice

8. Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company

9. Examples of Corporate Mission (cont’d)
MARRIOTT’S Mission Statement:
We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value

10. Corporate Culture The most abstract level of managerial thinking
How do you define culture?
What is the significance of culture to an organization?
How does marketing affect culture in the organization?

11. Corporate Objectives & Goals
An objective is a long-range purpose
Not quantified and not limited to a time period
E.g. increasing the return on shareholders’ equity
A goal is a measurable objective of the business
Attainable at some specific future date through planned actions
E.g. 10% growth in the next two years

12. What is a Strategic Business Unit? (SBU)
A set of products or product lines
With clear independence from other products or product lines
for which a business or marketing strategy should be designed

13. Characteristics of a viable SBU
Unique business mission
Definable set of competitors
Integrative planning done independently
Responsible for resource management in all areas
Large enough but not so large as to become bureaucratic
Have a unique business mission, independent of other SBUs
Have a clearly definable set of competitors
Be able to carry out integrative planning relatively independent of other SBUs
Be able to manage resources in all areas
Be large enough to justify senior management attention, but small enough to serve as a useful focus for resource allocation
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)

14. Organizational Marketing Levels
Hofer and Schendel suggested that organizations develop strategies at three structural levels:
Corporate level—(corporate marketing)
SBU level—(Strategic Marketing)
Product/Market level—(Functional Marketing)

15. Marketing at the SBU Level— Strategic Marketing
Strategic Marketing requires
Detailed understanding of market needs, and
Proactive use of competitive intelligence at the corporate as well as SBU’s levels
Strategic Marketing
Focuses on what the firm do best at the SBU level
To secure and maintain a sustainable competitive advantage

16. What is Competitive Advantage?
“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.” Philip Kotler
“If you don’t have a competitive advantage, don’t compete.” Jack Welch, GE

17. Other Characteristics of Competitive Advantage
Substantiality
Is it substantial enough to make a difference?
Sustainability
Can it be neutralized by competitors quickly?
Ability to be leveraged into visible business attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)

18. Seeking Competitive Advantages
Positions of advantage
Superior customer value
Lower relative total cost
Performance advantages
Customer satisfaction, Loyalty, Market Share, Profit
Sources of advantages
Superior skills & knowledge, Superior resources, Superior business process

19. Key Elements of Marketing Strategy Formulation
The strategic 3 Cs
Customers, Competitors & the Corporation
Environment analysis -- PEST
 Strategic Marketing Decisions
Where to compete
How to compete
When to compete
A-Mei, the Taiwanese pop diva sang the Taiwanese anthem at President Chen Shui-bian’s May inauguaration (2000) and raise a political storm. China withdrew her Sprite soft drink ads from TV, newspapers and billboards across the country, almost jeopardising her contract with Coca-cola. Spokesman for Coca-cola was quoted as saying that the company was informed of the withdrawal a day before A-Mei even performed at the inauguration.
Puyuma pop star, A-Mei, in a recent Sprite commercial, dances and sings in the old colonial
powers quarter of Shanghai. She sings a chorus of "give me true feeling" in Mandarin to promote
the product of an American multinational corporation. This ad and her music videos are screened
on Hong Kong's TVB, MTV, and on channels of Rupert Murdoch's Star TV Group.
Bit 2
In an August 1999 article "China's crazy about A-Mei" by New York Times News Service reporter
Seth Faison, A-Mei is described as being "Taiwanese" and No. 1 in China. Feth describes A-Mei's
sell out concerts in Beijing as "overpowering any consideration of the current battle over"
Taiwan's sovereignty. This is in reference to the latest spat between Taiwan and the PRC due to
President Lee's "state to state" relations comments.
Bit 3
The shifting images of A-Mei (Chinese name Chuang Hui-mei) are quite market responsive. She
has been called a "pop diva", Taiwan's Mariah Carey and other related labels. She is a superstar
by regional commercial criteria, her 5 CDs released thus far having sold millions of copies along
with concert videos and VCDs. Her brand of cultural products has become well known throughout
East Asia. She has large advertising contracts with Fuji Film and Sprite. In general, she's done
well commercially.

20. A Viable Marketing Strategy
Must have a clearly defined market
Must have a good match between corporate strengths and market needs
Must have significant positive differentiation in the key success factors of the business

21. Situation Analysis Internal Analysis—company; capability etc.
External Analysis—customers, market definition, industry structure
SWOT Analysis
Strengths, Weaknesses, Opportunities & Threats
Identify & prioritize major problems and opportunities: selection of key issues
Based on the firm’s core competencies, decide on future options

22. Marketing Audit
“Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler

23. Characteristics of Marketing Audit
Comprehensive
Must cover all marketing areas
Systematic
Sequential diagnostic steps
Independent
Internal & external auditors
Periodic
Performed at regular intervals

24. Marketing Audit Procedure
Marketing environment audit
Marketing strategy audit
Marketing organization audit
Marketing system audit
Marketing productivity audit
Marketing function audit
Marketing excellence review
Ethical and social responsibility review