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Chapter 4

Winning Markets Through Winning Markets Through Strategic Planning, Strategic Planning,

Implementation, Implementation, and Controland Control

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Objectives

Understand how strategic planning is carried out at the corporate, division, and business unit levels.Learn the major steps in the marketing process.

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Objectives

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

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Nature of Strategic Planning

Strategic planning requires actions in three key areasStrategic planning takes place at the corporate, division, business unit and product levelsMarketing plans operate at strategic and tactical levels

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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

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Corporate and Division Strategic Planning

Industry scopeProducts and applications scopeCompetence scope

Vertical scopeMarket-segment scope Geographical scope

Mission statements define the company’s major competitive scopes:

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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

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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

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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

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Business Strategic Planning

Business MissionSWOT Analysis: InternalSWOT Analysis: ExternalGoal Formulation

Strategy FormulationProgram FormulationImplementationFeedback and Control

Planning Involves Eight Steps:

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Strategic Business Planning

SWOT Analysis

Opportunities and threats stemming from the external environmentInternal strengths and weaknesses

Monitoring key forces for trends For each trend, conduct an MOA - Marketing Opportunity Analysis

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Strategic Business Planning

SWOT Analysis

Opportunities and threats stemming from the external environment Internal strengths and weaknesses

Brand awareness, image, reputationDistribution, pricing, customer loyalty, product benefitsFinance, R&D, manufacturing

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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

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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

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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

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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

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The Marketing Process

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

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The Marketing Process

Executive summary and TOCCurrent situationOpportunity and issue analysisObjectives

Marketing strategyAction programsFinancial projectionsControls

Marketing Plan Contents

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Managing The Marketing Process

Marketing Departments can be organized by: Function Geographic area Products or brands Customers or markets Corporate divisions Global aspects

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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

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Managing The Marketing Process

Injecting more creativity into the organization can be beneficialSuccessfully implementing programs requires four sets of skills: Diagnostic skills Identification of company level Implementation skills Evaluation skills

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Managing The Marketing Process

Types of Control

Annual planProfitabilityEfficiencyStrategic

Responsibility of top and middle managementExamines whether planned results are achieved

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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

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Managing The Marketing Process

Types of Control

Annual planProfitabilityEfficiencyStrategic

Responsibility of marketing controllerExamines where the company is making and losing money

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Managing The Marketing Process

Types of Control

Annual planProfitabilityEfficiencyStrategic

Responsibility of line & staff and / or marketing controllerEvaluates and attempts to improve spending efficiency of marketing expenditures

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Managing The Marketing Process

Types of Control

Annual planProfitabilityEfficiencyStrategic

Responsibility of top management and marketing auditorExamines whether company is pursuing its best opportunities

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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