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All rights reserved. Debbie Thorne McAlister.
Strategic Marketing Planning
Dr. Debbie Thorne McAlister
Learning Focus
Process of marketing planning Components of marketing plan Purposes and uses of marketing plan Common mistakes in marketing planning
Planning Can Be Like Boot Camp…You’ll Hate It.
Only Later Will You Realize It Was Good for You -- and for Business.
Source: Leo Helzel and friends, A Goal is a DreamWith a Deadline, 1995.
Detailed formulation of the actions needed to carry out the marketing program
An action document:– The handbook for marketing implementation,
evaluation and control Not the same as a business plan Requires a great deal of information from
many different sources
The Marketing Plan
Two Purposes of Marketing Plan
Align people and departments for the successful implementation of the plan
Gain support and budget necessary to implement the plan
Organizational Mission vs. Organizational Vision (1 of 2)
Elements of the Mission Statement– Five basic questions to be answered:
» Who are we?» Who are our customers?» What is our operating philosophy?» What are our core competencies or
competitive advantages?» What are our concerns and interests related to
our employees, our community, society in general and our environment?
Organizational Mission vs. Organizational Vision (2 of 2)
Mission Width and Stability– Width: Too broad or too narrow?– Stability: Frequency of modifications
Customer-Focused Mission Statements– Ben and Jerry’s 3-part Mission Statement
» Product Mission
» Economic Mission
» Social Mission
– Tylenol
Business-Unit Strategy:– The central means for:
» Utilizing and integrating the organization’s resources
» Carrying out the organization’s mission
» Achieving the organization’s desired goals and objectives
– Associated with developing a competitive advantage– Determines the nature and future direction of each
business unit– Essentially the same as corporate strategy in small
businesses
Corporate or Business-Unit Strategy
Exhibit 2.1
All business functions must support the organization’s mission and goals.
Functional objectives should be expressed in clear, simple terms.
All functional objectives should be reconsidered for each planning period.
Functional Goals and Objectives
Functional strategies are designed to integrate efforts focused on achieving the area’s stated objectives.
The strategy must:– (1) Fit the needs and purposes of the functional area– (2) Be realistic with the organization’s resources and
environment– (3) Be consistent with the organization’s mission
goals, and objectives. The effects of each functional strategy must be
evaluated.
Functional Strategy
Involves activities that execute the functional strategy.
Functional plans have two target markets:– (1) External market
– (2) Internal market A company must rely on its internal market
for a functional strategy to be implemented successfully.
Implementation
Designed to keep activities on target with goals and objectives
Coordination among functional areas is a critical issue– Open lines of communication is the key
Evaluation and control is both an ending and beginning:– Occurs after a strategy has been implemented– Serves as the beginning point for planning in the next
cycle
Evaluation and Control
A Market-Oriented Organization:– Shifts its focus:
» From products to the requirements of market segments» From transactions to relationships» From competition to collaboration
– Puts customer’s needs and wants first– Focuses on long-term, value-added relationships– Instills a corporate culture that puts customers at the
top of the organizational hierarchy– Cooperates with suppliers and competitors to serve
customers better
Strategic Planning in theMarket-Oriented Organization
Principles of Marketing Planning
Strategy first, operations second Marketing is an attitude, not a set of
procedures SWOT should be focused on critical
customers and competitors Make planning appropriate for culture and
top management’s support Create a rigorous marketing audit
Delta Pull-Out Spray Faucet
Delta Faucet Co. Delta Pull-Out Spray
Faucet helped push firm’s market share in that category up from 1.6% to 23.2% in two years
$227.15 - $294.30
Should be well organized A good marketing plan outline is:
– Comprehensive
– Flexible
– Consistent
– Logical
Marketing Plan Structure (1 of 5)
Marketing Plan Structure
Exhibit 2.3
I. Executive Summary– Synopsis of the overall marketing plan– Introduces major aspects of the marketing plan
II. Situation Analysis– Summarizes information about 3 key environments:
» Internal environment» Customer environment» Firm’s external environment
Marketing Plan Structure (2 of 5)
III. SWOT Analysis– Strengths– Weaknesses– Opportunities– Threats– Analysis of the SWOT matrix– Establishing a strategic focus
Marketing Plan Structure (3 of 5)
IV. Marketing Goals and Objectives:– Formal statements of desired and expected outcomes
of the marketing plan– Goals:
» Broad, simple statements of what is to be accomplished
– Objectives» More specific and essential to planning
V. Marketing Strategy:– Primary target market and marketing mix– Secondary target market and marketing mix
Marketing Plan Structure (4 of 5)
VI. Marketing Implementation– 1. What specific marketing activities will be undertaken?– 2. How will these activities be performed?– 3. When will these activities be performed?– 4. Who is responsible for the completion of these activities?– 5. How will the completion of planned activities be monitored?– 6. How much will these activities cost?
VII. Evaluation and Control– Formal marketing control– Informal marketing control– Financial assessments
Marketing Plan Structure (5 of 5)
Tips for using the marketing plan framework to develop a marketing plan:– Plan ahead– Revise, revise, revise– Be creative– Use common sense and judgment– Think ahead to implementation– Update regularly– Communicate with others
Using the Marketing Plan Structure
A good marketing plan will:– (1) Explain both the present and future situations of
the organization– (2) Specify the outcomes that are expected– (3) Describe the specific actions that are to take place– (4) Identify the resources that will be needed– (5) Permit the monitoring of each action and its
results Communicating the strategy to top executives is
paramount.
Purposes and Significanceof the Marketing Plan
Frequent Mistakes in the Planning Process
Speed and length of process Amount of data Who develops the plan Frequency of process Who sees the plan
Problems in Developing and Implementing the Marketing Plan
Exhibit 2.4
How Do Employees Receive Guidance for Marketing and Branding?Verbal 37%
Email/Phone no. link to central resource 13%
Printed 15%
CD 3%
Online (pdf) 5%
Online (html) 6%
Rely entirely on agency 19%
Source: www.brandchannel.com
Nike’s Triax 250 Sport Watch Series Designer: Astro Studios and
Nike Nike’s first brand extension
from running shoes into watches
Nike now sells nearly 2 million watches a year generating $100 million annually
$85 - $130
Revising Hawaii’s Tourism Plan
Governor Linda Lingle visited Japan to encourage tourism, down 30% after September 11, SARS, and Iraq.
One tactic related to the popularity of hula in Japan and Hawaii as its birthplace.
Island of Oahu was most affected by the downturn, since this is where many Japanese travel.
Product Failures: Remember These?
Why Does Planning Fail?
1) The failure to have a plan, or to successfully communicate it to others.
2) Elevating the imperative to grow to a level that includes sacrificing differentiation and competitive advantage.
3) The failure to position the enterprise in the marketplace and establish a brand.
4) The failure to understand market saturation and the law of diminishing returns.
5) The failure to manage change.
6) The failure to have a contingency plan and to act upon it.
7) The failure of leadership to lead and make hard choices. Source: Strategic Chronicle, Summer 2003
How Marketing Strategy Affects Business PerformanceHow Marketing Strategy Affects Business Performance
Share-holder Value
Cash Flow for Earnings
FinancialPerformance
Market Performance(market share, revenue per customer)
Customer Satisfaction, Retention,and Purchase Behavior
Marketing Strategy and Strategy Implementation
Linking Market-Based Assets to Shareholder Value
Market Performance
Faster Market Penetration
•Faster Trial
•Faster Adoption
Price Premium
Share Premium
Extensions
Loyalty
Market-Based Assets
Customer Relationships:
•Brands
Partner Relationships:
•Channels
•Branding
•Network
Shareholder Value
Accelerate Cash Flows
Enhance Cash Flows
Reduce Volatility and Vulnerability of Cash Flows
Enhance Residual Value of Cash Flows
Questions: Why are many corporate icons having trouble? Why are many
jobs being lost? Why are CEOs being fired?
Answer: Bad strategy in an increasingly unforgiving and
competitive marketplace.Source: Jack Trout, Capturing Mindshare, Conquering Markets, 2004.