Challenges and Opportunities In the New Economy
Strategic Marketing
Planning Dr. Ananda Sabil HusseinChallenges and Opportunities In the New Economy
Power Shift to Customers Massive Increase in Product Selection Changing Value Propositions Shifting Demand Patterns New Sources of Competitive Advantage Privacy, Security, and Ethical Concerns
1-2 Major Marketing Activities (1 of 4) and Decisions
Strategic Planning Strategy Tactical Planning
Research and Analysis Internal Analysis Competitive Intelligence Environmental Scanning Situation Analysis
1-3 Major Marketing Activities (2 of 4) and Decisions
Developing Goals and Objectives
SWOT Analysis Developing and Maintaining Customer Relationships Transactional Marketing Relationship Marketing
Marketing Strategy Decisions Competitive Advantage 1-4
Characteristics of Transactional and Relationship Marketing 1-5
Major Marketing Activities (3 of 4) and Decisions
Market Segmentation and Target Marketing Market Segmentation Target Markets
Product Decisions Product Positioning
Pricing Decisions Leads to revenue and proft Directly connected to customer demand Easy to change Major quality cue for customers
1-6 Major Marketing Activities (4 of 4) and Decisions
Distribution and Supply Chain Decisions Distribution and Supply Chain Management Supply Chain
Promotion Decisions Integrated Marketing Communications (IMC)
Implementation and Control Marketing Implementation
Social Responsibility and Ethics Social Responsibility Marketing Ethics
1-7 Taking On the Challenges of (1 of 2)
Marketing Strategy
Unending Change
Customers change, competitors change, and marketing organizations change
Evolution of Marketing and Business Practices in Society
Increasing Demands of Customers
Overall Decline in Brand Loyalty of Customers
Increasing Price Sensitivity Among Customers
Increasing Customer Cynicism about Business and Marketing Activities 1-8
Taking On the Challenges of (2 of 2)
Marketing Strategy
Competing in Mature Markets
Little Real Diferentiation Among Product Oferings
Increasing Expansion into Foreign Markets
Increasing Numbers and Strength of Foreign Competitors
Aggressive Cost-Cutting Measures in Order to Increase Competitiveness
Increasing Cooperation with Supply-Chain Partners and Competitors 1-9
The Strategic Planning
Process
Marketing Plan “…a written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation, and control of those activities.”
2-10
Discussion Question
What role, if any, should customers
play in the strategic planning process? Should they have a voice in developing the organizational mission, marketing goals, or the marketing strategy?
2-11
2-12 Organizational Mission vs.
(1 of 2) Organizational Vision
Elements of the Mission Statement
Five basic questions to be answered: Who are we? Who are our customers? What is our operating philosophy? What are our core competencies or competitive advantages? What are our concerns and interests
2-13
2-14 Organizational Mission vs.
Organizational Vision (2 of 2)
Mission Width and Stability Width: Too broad or too narrow? Stability: Frequency of modifcations
Customer-Focused Mission Statements
Ben and Jerry’s 3-part Mission Statement
Product Mission Economic Mission Corporate or Business-Unit Strategy
Business-Unit Strategy:
The central means for:
Utilizing and integrating the organization’s resources
Carrying out the organization’s mission Achieving the organization’s desired goals and objectives Associated with developing a competitive advantage Determines the nature and future direction of each business unit Essentially the same as corporate strategy in small businesses
2-15
Functional Goals and Objectives
All business functions must support
the organization’s mission and goals. Functional objectives should be expressed in clear, simple terms.
All functional objectives should be
reconsidered for each planning2-16
2-17
Functional strategies are designed to integrate eforts focused on achieving the area’s stated objectives. The strategy must:
(1) Fit the needs and purposes of the functional area (2) Be realistic with the organization’s resources and environment (3) Be consistent with the organization’s mission goals, and objectives.
The efects of each functional strategy must be evaluated.
Functional Strategy
Implementation Involves activities that execute the functional strategy.
Functional plans have two target markets: (1) External market
(2) Internal market A company must rely on its internal market for a functional strategy to be implemented successfully. 2-18
Evaluation and Control
Designed to keep activities on target with goals and objectives
Coordination among functional areas is a critical issue
Open lines of communication is the key
Evaluation and control is both an ending and beginning:
Occurs after a strategy has been implemented
Serves as the beginning point for planning in the next cycle
2-19
The Marketing Plan
Detailed formulation of the actions needed to carry out the marketing program An action document: The handbook for marketing implementation, evaluation and control
Not the same as a business plan
Requires a great deal of information from
many diferent sources2-20
2-21 Should be well organized
A good marketing plan outline is:
Comprehensive Flexible Consistent Logical
Marketing Plan Structure (1 of 5)
2-22
Marketing Plan Structure
2-23
I. Executive Summary Synopsis of the overall marketing plan Introduces major aspects of the marketing plan
II. Situation Analysis Summarizes information about 3 key environments:
Internal environment Customer environment Firm’s external environment
Marketing Plan Structure (2 of 5)
(3 of Marketing Plan Structure
5)
III. SWOT Analysis
Strengths Weaknesses Opportunities Threats Analysis of the SWOT matrix Establishing a strategic focus
2-24
(4 of Marketing Plan Structure
5)
IV. Marketing Goals and Objectives:
Formal statements of desired and expected outcomes of the marketing plan
Goals:
Broad, simple statements of what is to be accomplished
Objectives
More specifc and essential to planning
V. Marketing Strategy:
Primary target market and marketing mix
Secondary target market and marketing mix
2-25
2-26
VI. Marketing Implementation
1. What specifc marketing activities will be undertaken?
2. How will these activities be performed?
3. When will these activities be performed?
4. Who is responsible for the completion of these activities?
5. How will the completion of planned activities be
monitored? 6. How much will these activities cost?
VII. Evaluation and Control Formal marketing control Informal marketing control Financial assessments
Marketing Plan Structure (5 of
5)
Using the Marketing Plan Structure
Tips for using the marketing plan
framework to develop a marketing plan: Plan ahead Revise, revise, revise Be creative Use common sense and judgment
Think ahead to implementation Update regularly Communicate with others 2-272-28
A good marketing plan will:
(1) Explain both the present and future situations of the organization
(2) Specify the outcomes that are expected
(3) Describe the specifc actions that are to take place
(4) Identify the resources that will be needed
(5) Permit the monitoring of each action and its results
Communicating the strategy to top executives is paramount.
Purposes and Signifcance of the Marketing Plan
Organizational Aspects of the Marketing Plan
Top managers ask two questions:
(1) Will the marketing plan achieve the desired goals and objectives? (2) Are there alternative uses of resources that would better meet objectives?
The marketing plan is most often prepared by the Marketing Director or VP of Marketing
The final approval lies with the President, Chairman or CEO
2-29 Strategic Planning in the Market-Oriented Organization
A Market-Oriented Organization:
Shifts its focus:
From products to the requirements of market segments From transactions to relationships From competition to collaboration
Puts customer’s needs and wants frst
Focuses on long-term, value-added relationships
Instills a corporate culture that puts customers at the top of the organizational hierarchy
Cooperates with suppliers and competitors to serve customers better
2-30
2-31
Frontline Employees Middle Manag ers CEO Competitio n Traditional Organizations
Customers Frontline Employees Middle Manag ers CEO
2-32
Market-Oriented Organizations
Customers Frontline Employees Middle Manag ers CEO Frontline Employees Middle Manag ers CEO Cooperation