1. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 4 Chapter 4 Winning Markets Through Strategic Planning, Implementation, and Control PowerPoint by Karen E. James Louisiana State University - Shreveport

2. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 4 Objectives  Understand how strategic planning is carried out at the corporate, division, and business unit levels.  Learn the major steps in the marketing process.

3. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 4 Objectives  Learn what type of content a marketing plan includes.  Understand how companies can effectively manage the marketing process.

4. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 4 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

5. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 4 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

6. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 4 Corporate and Division Strategic Planning  Industry scope  Products and applications scope  Competence scope  Vertical scope  Market-segment scope  Geographical scope Mission statements define the company’s major competitive scopes:

7. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 4 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

8. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 7 in Chapter 4 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

9. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 4 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

10. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 9 in Chapter 4 Business Strategic Planning  Business Mission  SWOT Analysis: Internal  SWOT Analysis: External  Goal Formulation  Strategy Formulation  Program Formulation  Implementation  Feedback and Control Planning Involves Eight Steps:

11. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 10 in Chapter 4 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

12. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 4 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

13. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 4 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

14. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 4 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

15. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 14 in Chapter 4 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

16. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 4 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

17. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 16 in Chapter 4 The Marketing Process  Steps in the Marketing Process: –Analyzing market opportunities –Developing marketing strategies –Planning marketing programs –Managing the marketing effort

18. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 17 in Chapter 4 The Marketing Process  Executive summary and TOC  Current situation  Opportunity and issue analysis  Objectives  Marketing strategy  Action programs  Financial projections  Controls Marketing Plan Contents

19. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 4 Managing The Marketing Process  Marketing Departments can be organized by: –Function –Geographic area –Products or brands –Customers or markets –Corporate divisions –Global aspects

20. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 19 in Chapter 4 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

21. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 4 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

22. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 4 Managing The Marketing Process Types of Control  Annual plan  Profitability  Efficiency  Strategic  Responsibility of top and middle management  Examines whether planned results are achieved

23. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 4 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

24. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 23 in Chapter 4 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

25. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 24 in Chapter 4 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

26. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 25 in Chapter 4 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

27. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 26 in Chapter 4 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