Winning Markets Through Strategic Planning, Implementation, and Control

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Slide 0 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.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 4

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

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

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

Corporate and Division Strategic Planning

Mission statements define the companys major competitive scopes:
Industry scope Vertical scope

Products and applications scope

Competence scope
2003 Prentice Hall, Inc.

Market-segment scope
Geographical scope
Slide 5 in Chapter 4

To accompany A Framework for Marketing Management, 2nd Edition

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
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 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

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 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

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

Business Strategic Planning

Planning Involves Eight Steps:
Business Mission
SWOT Analysis: Internal SWOT Analysis: External

Strategy Formulation
Program Formulation Implementation Feedback and Control
Slide 9 in Chapter 4

Goal Formulation
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Strategic Business Planning

SWOT Analysis
Opportunities and threats stemming from the external environment
Internal strengths and weaknesses
2003 Prentice Hall, Inc.

Monitoring key forces for trends For each trend, conduct an MOA - Marketing Opportunity Analysis
Slide 10 in Chapter 4

To accompany A Framework for Marketing Management, 2nd Edition

Strategic Business Planning

SWOT Analysis
Opportunities and threats stemming from the external environment
Internal strengths and weaknesses
2003 Prentice Hall, Inc.

Brand awareness, image, reputation

Distribution, pricing, customer loyalty, product benefits

Finance, R&D, manufacturing
Slide 11 in Chapter 4

To accompany A Framework for Marketing Management, 2nd Edition

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

Business Strategic Planning

Strategy dictates the game plan for achieving goals. Porters generic strategies offer a starting point for strategic thinking:
Overall cost leadership Differentiation Focus
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 4

Business Strategic Planning

Program formulation and implementation involves:
Developing supporting programs Estimating implementation costs
Carefully managing the details so great strategy isnt ruined by poor implementation

Feedback and control is crucial

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 14 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

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Slide 15 in Chapter 4

The Marketing Process

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

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Slide 16 in Chapter 4

The Marketing Process

Marketing Plan Contents
Executive summary and TOC Current situation
Opportunity and issue analysis Objectives
2003 Prentice Hall, Inc.

Marketing strategy Action programs

Financial projections Controls
Slide 17 in Chapter 4

To accompany A Framework for Marketing Management, 2nd Edition

Managing The Marketing Process

Marketing Departments can be organized by:
Function Geographic area Products or brands Customers or markets Corporate divisions Global aspects
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 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
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 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
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 4

Managing The Marketing Process

Types of Control
Annual plan Profitability Efficiency Responsibility of top and middle management Examines whether planned results are achieved
Slide 21 in Chapter 4

Strategic
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

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

Managing The Marketing Process

Types of Control
Annual plan Profitability Efficiency Responsibility of marketing controller Examines where the company is making and losing money
Slide 23 in Chapter 4

Strategic
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Managing The Marketing Process

Types of Control
Annual plan Profitability Efficiency
Responsibility of line & staff and / or marketing controller Evaluates and attempts to improve spending efficiency of marketing expenditures
Slide 24 in Chapter 4

Strategic
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Managing The Marketing Process

Types of Control
Annual plan Profitability Efficiency
Responsibility of top management and marketing auditor Examines whether company is pursuing its best opportunities
Slide 25 in Chapter 4

Strategic
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

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