Strategic Planning and the Marketing Process

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					Strategic Planning and the
Marketing Process
• Unless we change our direction we are
  likely to end up where we are headed.
•     -ANCIENT CHINESE WISDOM
Planning Benefits

•   Encourages thinking ahead systematically
•   Sharpens objectives
•   Results in better coordination
•   Suggests clear performance standards
STRATEGIC PLANNING:
• The process of developing and maintaining
  a strategic fit between the organization’s
  goals and capabilities and its changing
  marketing opportunities. (p. 38)
• Strategic planning involves…
  –   Defining a clear company mission
  –   Setting company objectives
  –   Design (evaluate) business portfolio
  –   Developing/Coordinating functional strategies
Mission Statements
• Addresses the questions
  – What is the purpose of our business?
  – Why do we (or should we) exist?
  – Who is the customer?
Characteristics of Good Mission
Statements
• Market oriented
  – Think NEEDS/WANTS, not products
  – Marketing myopia
• Realistic
• Clear and focused (specific)
• Based on sustainable distinctive
  competencies which bestow differential
  advantages to organization
Characteristics of Good Mission
Statements (cont’d)

• Should fit the marketing environment
• Motivating
• Future oriented
• Above ALL else,   useful and memorable
A Short Mission Statement
Checklist

• Mission statements should identify…
  1. Customer groups to be served (general target
    markets)
  2. Needs/wants to meet
  3. General technologies to be employed to meet
    customer needs
How Should Mission Statements
be Constructed?
• Examine ORGANIZATION (culture,
  desires, history, current mission statement,
  programs, characteristics)
• Examine EXTERNAL ENVIRONMENT
  (current and potential customers, publics,
  competition, environmental factors)
• MATCH the 2 to identify SWOT
OBJECTIVES
• Objectives for Organization and
  Organizational Units should be
  – Consistent with mission of organization
  – Based on clear understanding of characteristics
    and environment
  – Stated in QUANTITATIVE terms only if
    appropriate
PORTFOLIO PLANNING
MODELS
• STRATEGIC BUSINESS UNITS (SBUs)-
  A unit of an organization that has its own
  mission and objectives that can be planned
  independently of other units.
• EXAMPLE: Litton Industries
  – publishing unit
  – shipbuilding unit
  – microwave unit
PORTFOLIO MODELS
• Boston Consulting Group
  – Market share (x axis) VS Market growth rate (y
    axis)
  – Dogs, Stars, Cash Cows, and Question Marks
PORTFOLIO PLANNING
MODELS - PLUSES

• Introduced/reinforced SBU concept
• Helpful in understanding organization
• Helpful question prompter
PORTFOLIO PLANNING
MODELS - MINUSES
• 1. Built on questionable assumptions (e.g.,
  need for cash flow balance)
• 2 Too simplistic/transparent
• 3. Sensitive to definitions
• 4. Deflected attention away from customers
  and their needs/wants
PORTFOLIO PLANNING
MODELS - MINUSES
(Continued)

• 5. Deflected attention away from the search
  for long-run, sustainable competitive
  advantage.
• OBSERVATION: Firms entered
  inappropriate businesses and abandoned
  good ones.
PRODUCT/MARKET
EXPANSION GRID (Fig. 2.3)
           Existing      New
           Products      Products
Existing   Market        Product
Markets    penetration   development

New        Market        Diversification
Markets    development
Partnering to Build Customer
Relationships
• Partnering with other co. departments
• Partnering with others in the marketing
  system
  – Up and down the supply chain + collaborators
Marketing Strategy & Marketing
Mix
• Segment Markets;
• Select Target Markets
   – Seek those where you can develop sustainable
     competitive advantages
• Select Market Position
   – Position versus positioning
• Develop the Marketing Mix
   – Productcustomer solution; Pricecustomer cost;
     Placeconvenience; Promotioncommunication
Managing the Marketing Effort
•   Marketing Analysis
•   Marketing Planning
•   Marketing Implementation
•   Organization
    –   Functional
    –   Geographic
    –   Product
    –   Market
    –   Combination (matrix)
Marketing Control
• Operating Control: Are results consistent
  with the annual plan? How are the current
  operations measuring up to expectations?
• Strategic Control: Are our strategies, and is
  our organization, tackling appropriate
  opportunities?
  – Marketing audit.

				
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posted:8/29/2012
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