Business Planning & Marketing Strategy: Lectures

1 Business planning / Strategic Planning in Marketing  2 What does Planning mean in a Business setting?...  3 Business Planning…  It is THE basis for Strategy and Tactics of an organization…  Planning -Dete...

1 Business planning / Strategic Planning in Marketing  2 What does Planning mean in a Business setting?...  3 Business Planning…  It is THE basis for Strategy and Tactics of an organization…  Planning -Determining the best way to achieve organizational objectives  Continuous process that includes -Identifying objectives -Determining actions to attain those objectives  Creates a blueprint for everyone in the organization  4 So, what is Marketing Planning…  Marketing planning involves activities associated with -Repetitive, key marketing messaging -Advertising objectives -Communication / PR objectives  Marketing Planning is also focused on -Sales objectives, brand awareness objectives  Marketing planning is a key element that helps the corporation -Achieve growth, market share, and EBITDA  5 Marketing Planning…  In Marketing, a large percentage of planning centers on -Building and maintaining relationships  Long-term, cost-effective relationships with individual customers and suppliers  What / Who benefits from these relationships ? -The end product -The customer -Suppliers -Component manufacturers -Everyone involved in the process  6 Strategic Planning Tactical Planning Determines an The implementation of organization’s primary detailed activities Okay, so what objectives in the strategic plan is Strategic Adopting courses of Addresses shorter-term Planning action that will achieve actions that are very specific in nature Versus Tactical broad objectives Focuses on “in the Planning… Provides long-term weeds” details of the direction for its planning process decision makers  7 So, who does what at Different Managerial Levels…  8 What are the steps in the Marketing Planning Process?...  9 The Marketing Planning Process…  You must first define the organization’s mission AND objectives as it relates to marketing goals -What is important in the organization?  Mission -Purpose Statement that differentiates one company from another and helps define the company:  Sephora: “The beauty authority”  IBM: “Welcome to the decade of smart”  Pokemon: “We enrich both the real world and the virtual world with the Pokémon characters”  Nintendo of America: “By listening closely to our customers, we improve our products and services”  10 Goals and Objectives in The Marketing Planning Process… Goals and objectives of the Board of Companies change over a specific amount of time Difference between goals and objectives -A goal is a description of a destination -An objective is a measure of the progress that is needed to get to the destination. Goals are normally longer term Example: -Build to #2 market share position within 3 years Objectives can be short term or mid-term Examples: -Generate a +15% profit over the next 12 month period -Add 5 new points of distribution by mid-term  11 What influences planning strategies…  According to Harvard scholar Michael Porter, there are 5 forces to analyze -To determine an organizations ability to compete effectively in the market  Porter of Porter’s Five Forces model:  The potential of new entrants  The bargaining power of buyers  The bargaining power of suppliers  The threat of substitute products  Rivalry among competitors  12 So, how do you implement a Marketing Strategy…  We know what can influence a Marketing strategy  But, how do you implement a Marketing strategy? -By selecting and satisfying targeted markets through the marketing mix elements (we will discuss later)  The KEY steps of the planning process:  Putting the marketing strategy into action  Monitoring the performance to ensure that objectives are achieved  If it can’t be measured, the impact can’t be  13 Does anybody know what SWOT means?  14 SWOT Analysis…  SWOT is an imperative element to understanding your competition  Strengths / Weaknesses / Opportunities / Threats  Provides managers with a critical view of the longer term action plan needed to compete  Compares internal organizational strengths and weaknesses with external opportunities and threats – it’s Porter’s model on steroids!!!  Is used by companies to determine a “go” / “no go” decision making criteria -The work done in a proper SWOT analysis is what???  INSANE!!!!  15 SWOT Analysis…  16 Let’s talk about the Marketing Mix elements and Target Markets…  17 What are the Marketing Mix elements?…  Fundamental to Marketing are the four elements of Marketing that are developed into campaigns by all organizations  Marketing mix elements (also known as the 4 P’s)  Product  Place (also known as Distribution)  Promotion  Pricing  You are blending four strategy elements to fit the needs and preferences of a specific target market  18 So, how do you decide on a Target Market…  First, a Target Market is -Demographic that the company directs the majority of marketing efforts, R & D, and merchandising towards  Walmart’s target market is “Mom” – why?  Because females are involved in virtually ALL purchasing decisions within the home  What about the Hispanic population in United States -Is it growing or shrinking? -The largest ethnic group in the US  Do you think Walmart is focusing on the Hispanic population in its advertising  What about Target?  What about every other retailer?  19 Marketing Strategy and The Environmental Do companies have more Framework… control over -Marketing Mix Variables or -Marketing’s Environmental Framework?  20 What are the Strategies behind each of the Marketing elements?...  21 Product Strategy…  Product Strategy - Deciding what goods or services to offer to a group of consumers  Key factors that determine what product(s) to offer your customer -New-product development -Product positioning -Lifecycle of a product -Package design -Customer service -Brand names, trademarks, patents, and warranties  22 Place (or Distribution) Strategy…  Place Strategy -Deciding which classes of trade to sell your products -Ensuring you can service the classes of trade  This is NOT -Modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels  In this definition, distribution strategy is about placement and not supply chain  23 Promotion Strategy…  Promotion Strategy -Communication link between sellers (companies) and buyers (retailers and consumers) to push growth (top line revenue), deplete inventory, and combat competitive pressure  How do companies communicate product promotions:  Directly through salespeople  Indirectly through advertisements, social media, etc.  Many companies use Marketing communications -The use of a multi-faceted marketing campaign  24 Pricing Strategy…  Pricing Strategy -Practice of setting profitable and justifiable prices for your products  A good pricing strategy: -Creates value for customers and shareholders -Builds and strengthens customer relationships with a company, suppliers, and the end consumer  Subject to federal regulation (SEC) and public scrutiny  25 A couple final definitions / processes you need to know…  26 Business Portfolio Analysis…  An evaluation of a company’s products and divisions to determine the strongest and weakest  You must know when to enter and when to leave a market (industry OR category)  This is all focused around marketing research, which is the most difficult position / department within the Marketing field  General Electric used to have an unwavering mantra -Must be in the top three market share leaders in the businesses where they compete, or they exit the business  GE blows now and they were taken off of the DOW 30 top companies in Summer 2018.  27 What are Strategic Business Units?…  SBU’s are key business units within diversified companies  Each strategic business unit (SBU): -Has its own structure, resources, objectives, and competitors -Pursues its own distinct mission and develops its own plans independently  Roll up into one P & L Statement  What does P & L mean?  Companies often redefine their SBUs as market conditions dictate  28 What is The BCG Matrix?…  Developed by the Boston Consulting Group  A market share/market growth matrix -Plots market share against market growth potential  Defines where a product or product category resides and whether or not to invest in them  Needs detailed analysis of the industry to determine where a company should invest resources  29 BCG Market Share/Market Growth Matrix…