Winning Markets Through Strategic Planning, Implementation, and Control

To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 4©2003 Prentice Hall, Inc.

Chapter 4Chapter 4

Winning Markets Through Winning Markets Through Strategic Planning, Strategic Planning,

Implementation, Implementation, and Controland Control

PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport

To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 4©2003 Prentice Hall, Inc.

ObjectivesObjectives

Understand how strategic planning is carried out at the corporate, division, and business unit levels.

Learn the major steps in the marketing process.

To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 4©2003 Prentice Hall, Inc.

ObjectivesObjectives

Learn what type of content a marketing plan includes.

Understand how companies can effectively manage the marketing process.

To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 4©2003 Prentice Hall, Inc.

Nature of Strategic Nature of Strategic PlanningPlanning

Strategic planning requires actions in three key areas

Strategic planning takes place at the corporate, division, business unit and product levels

Marketing plans operate at strategic and tactical levels

To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 4©2003 Prentice Hall, Inc.

Corporate and Division Corporate and Division Strategic PlanningStrategic Planning

Planning activities include:

– Defining the Corporate Mission

– Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs

– Planning New Businesses, Downsizing Older Businesses

To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 4©2003 Prentice Hall, Inc.

Corporate and Division Corporate and Division Strategic PlanningStrategic Planning

Industry scope

Products and applications scope

Competence scope

Vertical scope

Market-segment scope

Geographical scope

Mission statements define the company’s major competitive scopes:

To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 4©2003 Prentice Hall, Inc.

Corporate and Division Corporate and Division Strategic PlanningStrategic 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 4©2003 Prentice Hall, Inc.

Corporate and Division Corporate and Division Strategic PlanningStrategic Planning

SBUs are treated as investment portfolios. Resources are allocated by:

– The BCG Growth-Share MatrixStarsCash CowsQuestion MarksDogs

– The General Electric Market-Attractiveness Model

To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 4©2003 Prentice Hall, Inc.

Corporate and Division Corporate and Division Strategic PlanningStrategic Planning

Planning New Businesses and Downsizing Old Businesses

– Involves taking advantage of one or more of the following:

Intensive growthIntegrative growthDiversification growthHarvesting or divesting old businesses

To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 4©2003 Prentice Hall, Inc.

Business Strategic PlanningBusiness Strategic Planning

Business Mission

SWOT Analysis: Internal

SWOT Analysis: External

Goal Formulation

Strategy Formulation

Program Formulation

Implementation

Feedback and Control

Planning Involves Eight Steps:

To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 4©2003 Prentice Hall, Inc.

Strategic Business PlanningStrategic Business Planning

SWOT Analysis

Opportunities and threats stemming from the external environment

Internal strengths and weaknesses

Monitoring key forces for trends

For each trend, conduct an MOA - Marketing Opportunity Analysis

To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 4©2003 Prentice Hall, Inc.

Strategic Business PlanningStrategic Business Planning

SWOT Analysis

Opportunities and threats stemming from the external environment

Internal strengths and weaknesses

Brand awareness, image, reputation

Distribution, pricing, customer loyalty, product benefits

Finance, R&D, manufacturing

To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 4©2003 Prentice Hall, Inc.

Business Strategic PlanningBusiness 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 4©2003 Prentice Hall, Inc.

Business Strategic PlanningBusiness 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 4©2003 Prentice Hall, Inc.

Business Strategic PlanningBusiness 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 4©2003 Prentice Hall, Inc.

The Marketing ProcessThe Marketing Process

Two Views of the Value Delivery Process:

– Traditional physical process sequenceMake the product . . . Sell the product

– Value creation and delivery sequenceChoose the value . . . Provide the

value . . . Communicate the value

To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 4©2003 Prentice Hall, Inc.

The Marketing ProcessThe Marketing Process

Steps in the Marketing Process:

– Analyzing market opportunities

– Developing marketing strategies

– Planning marketing programs

– Managing the marketing effort

To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 4©2003 Prentice Hall, Inc.

The Marketing ProcessThe Marketing Process

Executive summary and TOC

Current situation

Opportunity and issue analysis

Objectives

Marketing strategy

Action programs

Financial projections

Controls

Marketing Plan Contents

To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Marketing Departments can be organized by:

– Function– Geographic area– Products or brands– Customers or markets– Corporate divisions– Global aspects

To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

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

To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Injecting more creativity into the organization can be beneficial

Successfully implementing programs requires four sets of skills:

– Diagnostic skills– Identification of company level– Implementation skills– Evaluation skills

To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of top and middle management

Examines whether planned results are achieved

To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

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

To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of marketing controller

Examines where the company is making and losing money

To accompany A Framework for Marketing Management, 2nd Edition Slide 25 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of line & staff and / or marketing controller

Evaluates and attempts to improve spending efficiency of marketing expenditures

To accompany A Framework for Marketing Management, 2nd Edition Slide 26 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of top management and marketing auditor

Examines whether company is pursuing its best opportunities

To accompany A Framework for Marketing Management, 2nd Edition Slide 27 in Chapter 4©2003 Prentice Hall, Inc.

Managing The Marketing Managing The Marketing ProcessProcess

Strategic controls should be conducted periodically via:

– Marketing-effectiveness reviews– Marketing audits

Additional reviews to consider:

– Marketing excellence review– Ethical and social responsibility review