Corporate Strategic Corporate Strategic PlanningPlanning

Asia-Pacific Marketing Asia-Pacific Marketing FederationFederation

Certified Professional MarketerCertified Professional MarketerCopyrightCopyright

Marketing Institute of SingaporeMarketing Institute of Singapore

OutlineOutline

IntroductionIntroduction Meaning & Role of Strategic Meaning & Role of Strategic

PlanningPlanning Corporate MissionCorporate Mission Strategic Business Units (SBU)Strategic Business Units (SBU) Marketing AuditMarketing Audit

Strategic PlanningStrategic Planning

……is the managerial process of is the managerial process of developing and maintaining a developing and maintaining a strategic fit between the strategic fit between the organization's objectives and organization's objectives and resources and its changing market resources and its changing market opportunities.opportunities.

Org Objectives Resources

Changing Environment

Strategic Fit

The Role of StrategyThe Role of Strategy

CorporateMission &Objectives

Strategy:•Corporate•Business•Functional

Operating Plans

Strategic MarketingStrategic Marketing

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

John ScullyJohn Scully

What is a Strategic What is a Strategic Business Unit? (SBU)Business Unit? (SBU)

A set of products or product lines A set of products or product lines With clear independence from other With clear independence from other

products or product lines products or product lines for which a business or marketing for which a business or marketing

strategy should be designedstrategy should be designed

Characteristics of a viable SBUCharacteristics of a viable SBU

Unique business missionUnique business missionDefinable set of competitorsDefinable set of competitors Integrative planning done Integrative planning done

independentlyindependentlyResponsible for resource management Responsible for resource management

in all areasin all areas Large enough but not so large as to Large enough but not so large as to

become bureaucraticbecome bureaucratic(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)

Organizational Marketing LevelsOrganizational Marketing Levels

Hofer and Schendel suggested that Hofer and Schendel suggested that organizations develop strategies at organizations develop strategies at three structural levels:three structural levels:

Corporate level—(corporate Corporate level—(corporate marketing)marketing)

SBU level—(Strategic Marketing)SBU level—(Strategic Marketing) Product/Market level—(Functional Product/Market level—(Functional

Marketing)Marketing)

Marketing at the SBU Level—Marketing at the SBU Level—Strategic MarketingStrategic Marketing

Strategic Marketing requiresStrategic Marketing requiresDetailed understanding of market needs, and Detailed understanding of market needs, and Proactive use of competitive intelligence at the Proactive use of competitive intelligence at the

corporate as well as SBU’s levelscorporate as well as SBU’s levels

Strategic Marketing Strategic Marketing Focuses on what the firm do best at the SBU levelFocuses on what the firm do best at the SBU levelTo secure and maintain a sustainable competitive To secure and maintain a sustainable competitive

advantageadvantage

What is Competitive Advantage?What is Competitive Advantage?

““Competitive advantage is a Competitive advantage is a company’s ability to perform in one company’s ability to perform in one or more ways that competitors or more ways that competitors cannot or will not match.”cannot or will not match.”

Philip KotlerPhilip Kotler

““If you don’t have a competitive If you don’t have a competitive advantage, don’t compete.”advantage, don’t compete.”

Jack Welch, Jack Welch, GEGE

Other Characteristics of Competitive Other Characteristics of Competitive AdvantageAdvantage

SubstantialitySubstantiality Is it substantial enough to make a difference?Is it substantial enough to make a difference?

SustainabilitySustainability Can it be neutralized by competitors quickly?Can it be neutralized by competitors quickly?

Ability to be leveraged into visible Ability to be leveraged into visible business attributes that will influence business attributes that will influence customerscustomers

(Source: Strategic Marketing Management, Aakers)

Seeking Competitive AdvantagesSeeking Competitive Advantages Positions of advantagePositions of advantage

Superior customer valueSuperior customer value Lower relative total costLower relative total cost

Performance advantagesPerformance advantages Customer satisfaction, Loyalty, Market

Share, Profit

Sources of advantagesSources of advantages Superior skills & knowledge, Superior

resources, Superior business process

Key Elements of Marketing Strategy Key Elements of Marketing Strategy FormulationFormulation

The strategic 3 Cs The strategic 3 Cs Customers, Competitors & the CorporationCustomers, Competitors & the Corporation

Environment analysis -- PESTEnvironment analysis -- PEST   Strategic Marketing DecisionsStrategic Marketing Decisions

Where to competeWhere to competeHow to competeHow to competeWhen to competeWhen to compete

Must have a clearly defined market Must have a clearly defined market Must have a good match between Must have a good match between

corporate strengths and market needscorporate strengths and market needsMust have significant positive Must have significant positive

differentiation in the key success differentiation in the key success factors of the businessfactors of the business

A Viable Marketing StrategyA Viable Marketing Strategy

Situation AnalysisSituation Analysis

Internal Analysis—Internal Analysis—company; capability etc.company; capability etc.

External Analysis—External Analysis—customers, market definition, industry structurecustomers, market definition, industry structure

SWOT AnalysisSWOT Analysis SStrengths, trengths, WWeaknesses, eaknesses, OOpportunities & pportunities & TThreatshreats Identify & prioritize major problems and opportunities: selection of Identify & prioritize major problems and opportunities: selection of

key issueskey issues Based on the firm’s core competencies, decide on future Based on the firm’s core competencies, decide on future

optionsoptions

Marketing AuditMarketing Audit

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

Characteristics of Marketing AuditCharacteristics of Marketing Audit

ComprehensiveComprehensive Must cover all marketing areasMust cover all marketing areas

SystematicSystematic Sequential diagnostic stepsSequential diagnostic steps

IndependentIndependent Internal & external auditorsInternal & external auditors

PeriodicPeriodic Performed at regular intervalsPerformed at regular intervals

Marketing Audit ProcedureMarketing Audit Procedure Marketing environment auditMarketing environment audit Marketing strategy auditMarketing strategy audit Marketing organization auditMarketing organization audit Marketing system auditMarketing system audit Marketing productivity auditMarketing productivity audit Marketing function auditMarketing function audit Marketing excellence reviewMarketing excellence review Ethical and social responsibility reviewEthical and social responsibility review