Chapter 12 Strategic marketing management. Plans are nothing. Planning is everything. This quotation is generally attributed to Dwight D. Eisenhower (1890–1969),

Chapter 12

Strategic marketing management

Plans are nothing. Planning is everything.

This quotation is generally attributed to Dwight D. Eisenhower (1890–1969), US general and later president. The actual

quotation is: ‘In preparing for battle I have always found that plans are useless, but planning is indispensable.’

Source: R. Andrews, The Columbia dictionary of quotations, Columbia University Press, New York, 1993, p. 688.

The quotation has also been attributed (unsourced) to Napoleon; refer to N. Rees, Brewer’s Quotations,

Cassell, London, 1994, p. 250.

Objectives

By the end of this chapter, you should:• understand the importance of strategic

management• be able to prepare marketing budgets• be able to develop action plans to facilitate

the effective implementation of the recommended marketing strategies

• be able to develop an effective marketing performance evaluation and control system.

The strategic marketingplanning process

Situationanalysis

Situationanalysis

Problems &opportunities

Problems &opportunities

Marketingobjectives

Marketingobjectives

Marketingstrategies

Marketingstrategies

BudgetBudget ImplementationImplementation

Evaluation &control

Evaluation &control

Strategic marketingmanagement – budgetingand implementation

The steps are:• senior management approvalof strategy recommendationsand budget• implementation – actionplanning• evaluation and control ofmarketing performance.

Marketing budgets (1)

• One of the most scrutinised parts of any strategic marketing plan (SMP) is the budget.

• Those responsible for approving the strategies outlined in the SMP want to know just what impact these actions will have on the bottom line over the time frame of the SMP.

Marketing budgets (2)

Marketing budgets comprise of two main sets of information:

• Estimated revenue – This work is undertaken in the marketing objective setting process (discussed in Chapter 4). Therefore, incorporate this revenue data into the budget section.

• Estimated costs – These costs need to be based on a realistic assessment of the costs likely to be incurred, in order to achieve the marketing objectives, over the time frame of the SMP.

Implementation (1)

‘OK, so the recommendations in the SMP are approved. So, what are you going to do on Monday?’

• The first stage of transforming a strategy plan into reality is to prepare a comprehensive action plan.

• This includes immediate actions and actions to take place over the time frame of the SMP.

Implementation (2)

• For each level of marketing organisation, prepare an implementation planning grid (shown in the next slide).

• Use this grid to identify specific tasks to be performed by those individuals who are responsible for various facets of implementation.

• Not all of the boxes are applicable for each individual. Therefore, only complete those boxes that are relevant for the given individual, or groups of individuals, with implementation responsibilities.

Implementation planning grid

Functions Interacting Allocating Monitoring Organising

Actions

Programs

Systems

Policies

Skills

Evaluation and control (1)

‘If it can’t be measured its not worth doing.’

• Evaluation and control processes are essential for strategic marketing planning.

• Performance needs to be evaluated against the marketing objectives that were established.


BenchmarkingBenchmarking

MeasurementMeasurement

PerformancePerformance

Corrective actionCorrective action

A marketing control system






Identification of anappropriate standard• Comparative – to competitors, industry averages, world best practices or historical performance levels.• Ideal – against what is thought to be perfection.








Two classes of measurement• Effectiveness – comparison of outputs to objectives. Includes assessment of competitive positioning, customer satisfaction and loyalty, customer attitudes, as well as market share, sales and profits.• Efficiency – measures productivity.• ‘Efficiency is concerned with doing things right whereaseffectiveness is doing the right things.’ (Drucker)







It is necessary to determine why problems have occurred. Essentially, problems can occur due to eitherunsatisfactory marketing effort orchanges that have occurred in theexternal environment.

Strategic fit may be a problem(see next slide).

Evaluation and control (6)Strategic fit

Success Rescue orruin

Trouble Failure

Strategy Excellent PoorImplementation

Excellent

Poor

A modeldevelopedby T.V. Bonoma.







Adaptive control system – a proactive system wherebyobjectives are modifiedagainst changes that haveoccurred in the externalenvironment. Performanceis assessed against themodified objectives.

Documents

Chapter 12 Strategic marketing management. Plans are nothing. Planning is everything. This quotation is generally attributed to Dwight D. Eisenhower (1890–1969),