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1
Chapter 4
Winning Markets Through Winning Markets Through Strategic Planning, Strategic Planning,
Implementation, Implementation, and Controland Control
2
Objectives
Understand how strategic planning is carried out at the corporate, division, and business unit levels.Learn the major steps in the marketing process.
3
Objectives
Learn what type of content a marketing plan includes.Understand how companies can effectively manage the marketing process.
4
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