Strategic Marketing Management Process - Gener T. Cueno Mngt. Dept. CEMDS MKGT 80

Strategic Marketing Management Process

• Learning objectives:
  • Understand how strategic planning is carried out by organizations
  • Explain the process involved in strategic marketing management
  • Understand how organizations effectively manage the marketing process

Corporate Planning Activities

• Define the corporate vision/mission
• Establish strategic business units (SBUs)
• Assign resources to each SBU
• Assess growth opportunities

Strategic Planning Process

• Starts by preparing statements of:
  • Mission
  • Policy
  • Strategy
  • Goals
• Framework for divisions and business units to prepare their plans

Mission Statement

• Declaration of an organization’s “reason for being”
• Synonymous with asking the question “What is our business?”
• Essential for effectively establishing objectives and formulating strategies
• Focus on a limited number of goals
• Stress major policies and values
• Define major competitive spheres
• Take a long-term view
• Short, memorable, and meaningful

What is a Mission Statement?

• A statement “defining our business”
• Other terms for Mission Statement:
  • Creed statement
  • Statement of purpose
  • Statement of philosophy
  • Statement of beliefs
  • Statement of business principles

Difference Between Mission Statement and Vision Statement

• Mission statement defines what an organization does and includes tangible goals
• Vision statement clarifies the aspirations of the organization and defines the direction it’s heading in
• Mission is the “what” and the “how,” and the vision is the “why”

Importance of Vision and Mission Statements

• Provide unity of direction
• Promote shared expectations
• Consolidate values
• Project a sense of worth and intent
• Affirm the company’s commitment to responsible action

Product/Market Investment Strategy (Where to Compete?)

• Define the scope of a business by the products it offers and chooses not to offer
• Markets it seeks to serve and not serve
• Competitors it chooses to compete with and to avoid
• Level of vertical integration

Ansoff’s Product/Market Grid

• Strategies:
  • Concentric diversification - seek new products with technological or marketing synergies
  • Horizontal diversification - search for new products that appeal to current customers but are technologically unrelated
  • Conglomerate diversification - seek new businesses that have no relationship to the company’s current technology, products, or markets

Customer Value Proposition

• Product/service offerings that are relevant and meaningful to new and existing customers

Michael Porter’s Definition of Strategy

• Competitive position, “deliberately choosing a different set of activities to deliver a unique mix of value”
• Dimensions of Business Strategy:
  • Where to compete?
  • How to compete?

Learn about the strategic marketing management process outlined by Gener T. Cueno Mngt. Department, CEMDS MKGT 80. Understand how organizations carry out strategic planning, the steps involved in strategic marketing management, and how to effectively manage the marketing process.