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The Role Of Marketing in Strategic Planning
Syndicate 3
Aim and Definition
Strategic Planning
…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.
Org Objectives Resources
Changing Environment
Strategic Fit
Ideas defining Strategic Planning
•Managing a company’s business as an investment portfolio.
•Accessing accurately the future profit potential of each business.
•Underline strategic planning
Major Organizational LevelsCorporate Level:
Responsible for strategic planning of whole organization
Division Level:
Responsible for allocation of funds to each business unit’s strategic plan
Business Level:
Responsible for developing business unit’s strategic planning
Product Level:
Responsible for developing marketing plan to achieve objecties
Nature of Performance Business
•Stake Holder
A business must strive to satisfy minimum expectations of each stakeholder
•Processes
Companies build cross functional teams that manage core business process to be superior competitive
•Resources
Companies identify their core competencies and use them as the basis of strategic planning
•Organization
Companies align their organization’s structure/policies and culture to the changing requirement of the business strategy
Nature of Performance Business
ResourcesOrganisation
Processes
Stakeholders
satisfy minimum expectations of each stakeholder……….
……Improving critical business process……
…aligning resources and organisation
Dynamic relationship amongst stakeholders group in a high performance business
Stockholder satisfaction
Customer satisfaction
Higher quality Products and services
Higher quality environment (Employee satisfaction)
Growth Profit
Continuous improvement
Breakthrough innovations
Corporate Strategic Planning
Corporate mission
A corporate mission focuses on broad purposes of the organization and is a general criteria for determining long term organizational effectiveness.
source: Marketing Institute of Singapore
Elements of Defining Corporate Mission
•History
•Current Preferences of the owner
•Resources
•Distinctive competencies
Cont…
Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company.
Cont…
Examples of Corporate Mission
MARRIOTT’S Mission Statement:
We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value
Corporate Mission Statement
A mission statement provides company employees with a shared sense of purpose, direction and opportunity.
Characteristics and Focused Goals
•Industry scope
•Products and application scope
•Competencies scope
•Market segment scope
•Vertical scope
•Geographical scope
Strategic Business Unit
A set of products or product lines
• With clear independence from other products or product lines
• For which a business or marketing strategy should be designed
Source: Marketing Institute of Singapore
Establishing SBUs
Unique business mission
Definable set of competitors
Integrative planning done
independently
Responsible for resource
management in all areas
Large enough but not so large as to
become bureaucratic
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
Boston consulting group approach
A leading management consulting firm which was responsible for developing the growth- share matrix.
Growth-share matrix
•Question marks
•Stars
•Cash cows
•Dogs
Alternative objectives of SBU’s
•Build- To increase SBU’s market share, even
if it means to forego short term earnings.
•Hold- To preserve the SBU’s market share.
•Harvest- To increase SBU’s short term cash
flow, regardless of the long term effect.
•Divest- To sell or liquidate the business in
order to use the resources more efficiently.
Planning new businesses
1. Intensive growth opportunities-
• Ansoff product-market expansion grid.
• market penetration strategy
• market development strategy
• product development strategy
Cont…
Planning new businesses
2. Integrative growth opportunities-
• Backward integration
• Forward integration
• Horizontal integration
Cont…
Planning new businesses
3. Diversification growth opportunities -
• Concentric diversification strategy
• Horizontal diversification strategy
• Conglomerate diversification strategy
Business strategy planning
1. Business mission- defines specific goals and policies as a separate business.
2. External environment analysis-
• Macro environment forces- economic, political, socio-cultural.
• Micro – customers, competitors
• Opportunities- scope for company’s profitability.
• Threats-classified according to the seriousness & profitability of occurrence.
Cont…
Business strategy planning3. Internal environment analysis
-strength and weakness analysis.
4. Goal formulation-
• Hierarchical
• Quantitative
• Realistic
• consistent
Cont…
Business strategy planning
5. Strategy formulation-
• Overall cost leadership
• Differentiation
• Focus
6. Program formulation.
7. Implementation.
8. Feedback and Control.
Conclusion
Sun Tze on Strategy
“Know your enemy, know yourself, and your victory will not be
threatened. Know the terrain, know the weather, and your victory will be
complete.”-Marketing Institute of Singapore