Strategic Planning PDF

Strategic Planning • Game plan for long-run survival and growth • Helps to maintain a strategic fit between its goals and capabilities and changing marketing opportunities. Copyright © 2017 Pearson Education, Ltd. 2-6 Figure 2.1 - Steps in Strategic Planning Copyright © 2017 Pearson Education,...

Strategic Planning • Game plan for long-run survival and growth • Helps to maintain a strategic fit between its goals and capabilities and changing marketing opportunities. Copyright © 2017 Pearson Education, Ltd. 2-6 Figure 2.1 - Steps in Strategic Planning Copyright © 2017 Pearson Education, Ltd. 2-7 Mission Statement • Statement of the organization’s purpose • Market oriented - defined in terms of satisfying basic customer needs • Emphasize the company’s strengths • Focus on customers and the customer experience Copyright © 2017 Pearson Education, Ltd. 2-8 Setting Company Objectives and Goals • Detailed supporting objectives for each level of management • Setting a hierarchy of objectives • Business objectives • Marketing objectives Copyright © 2017 Pearson Education, Ltd. 2-9 Learning Objective 2-1 Summary • Strategic planning • Defining the company’s mission • Setting objectives and goals • Designing a business portfolio • Developing functional plans • Company mission statement • Market oriented, realistic, specific • Motivating, consistent with market environment Copyright © 2017 Pearson Education, Ltd. 2 - 10 Business Portfolio • Collection of businesses and products that make up the company • Steps in business portfolio planning: • Analyze the firm’s current business portfolio • Develop strategies to shape the future portfolio Copyright © 2017 Pearson Education, Ltd. 2 - 12 Portfolio Analysis • Management’s evaluation of the products and businesses that make up the company • Identify the strategic business units (SBUs) • Assess SBUs’ attractiveness and decide on the level of support SBU deserves • Direct resources toward more profitable businesses and phase down or drop its weaker ones Copyright © 2017 Pearson Education, Ltd. 2 - 14 Boston Consulting Group (BCG) The best-known portfolio-planning method was developed by the Boston Consulting Group (BCG), a leading management consulting firm. This BCG Growth-Share matrix shows the classification of company’s SBUs (strategic business units). Market growth rate provides a measure of market attractiveness. Relative market share serves as a measure of company strength in the market. Copyright © 2017 Pearson Education, Ltd. Figure 2.2 - The BCG Growth-Share Matrix Copyright © 2017 Pearson Education, Ltd. 2 - 16 Growth-Share Matrix • Evaluates a company’s SBUs in terms of market growth rate and relative market share • Problems with Growth-Share Matrix • Difficult, time consuming, and costly • Difficult to define and measure • Provides little advice for future planning Copyright © 2017 Pearson Education, Ltd. 2 - 17 Figure 2.3 - The Product/Market Expansion Grid Copyright © 2017 Pearson Education, Ltd. 2 - 18 Downsizing • Products or business units that are unprofitable or no longer fit the company’s overall strategy • Reasons to abandon products or markets • • • • Rapid growth of the company Lack of experience in a market Change in market environment Decline of a particular product Copyright © 2017 Pearson Education, Ltd. 2 - 19 Planning Marketing: Partnering to Build Customer Relationships • Provides a guiding philosophy • Marketing concept—company strategy should create customer value and build profitable relationships • Provides inputs to strategic planners • Identify market opportunities and potential to take advantage of them • Designs strategies for reaching the business unit’s objectives Copyright © 2017 Pearson Education, Ltd. 2 - 22 Partnering with Other Company Departments • Company departments are links in the company’s internal value chain. • Firm’s success depends on how well the various departments coordinate their activities. • Marketers should ensure all the departments are customer-focused and develop a smooth functioning value chain. Copyright © 2017 Pearson Education, Ltd. 2 - 23 Partnering with Others in the Marketing System • Companies should assess value chains • Internal departments • External: suppliers, distributors and customers • Value delivery network is composed of the company, its suppliers, its distributors, and its customers Copyright © 2017 Pearson Education, Ltd. 2 - 25 Learning Objective 2-3 Summary • • • • • Planning Marketing Partnering to build customer relationships Partnering with other company departments Partnering with suppliers, distributors and customers Value delivery network Copyright © 2017 Pearson Education, Ltd. 2 - 26 Figure 2.5 Managing Marketing Strategy and the Marketing Mix Creating customer value and profitable customer relationships is at the core of marketing. Which customers to serve ? (segmentation and targeting) How will we create value for them? (differentiation and positioning) Copyright © 2017 Pearson Education, Ltd. 2 - 28 Customer Value-Driven Marketing Strategy • Marketing logic by which the company creates customer value and achieves profitable customer relationships • Integrated marketing mix: product, price, place, and promotion • Activities for best marketing strategy and mix • Marketing analysis • Planning, implementation, and control Copyright © 2017 Pearson Education, Ltd. 2 - 29 Market Segmentation and Market Targeting Market segmentation • Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs Market segment • Group of consumers who respond in a similar way to a given set of marketing efforts Market targeting • Evaluating each market segment’s attractiveness and selecting one or more segments to enter Copyright © 2017 Pearson Education, Ltd. 2 - 30 Positioning • Positioning the product to occupy a clear, distinctive, and desirable place relative to competing products • Differentiating the market offering to create superior customer value • The entire marketing program should support the chosen positioning strategy. Copyright © 2017 Pearson Education, Ltd. 2 - 31 Positioning Southwest’s positioning as “The LUV Airline” is reinforced by the colorful heart in its new logo and plane graphics design. Copyright © 2017 Pearson Education, Ltd. 2 - 32 Figure 2.5 - The Four Ps of the Marketing Mix Copyright © 2017 Pearson Education, Ltd. 2 - 33 Criticisms of the Four Ps • Omits or underemphasizes service products • Needs to include packaging as a product decision • Buyer’s perspective would emphasize the four A s: • • • • Acceptability Affordability Accessibility Awareness Copyright © 2017 Pearson Education, Ltd. 2 - 34 Figure 2.6 - Managing Marketing: Analysis, Planning, Implementation, and Control Copyright © 2017 Pearson Education, Ltd. 2 - 35 Figure 2.7 - SWOT Analysis: Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T) Copyright © 2017 Pearson Education, Ltd. 2 - 36 Contents of a Marketing Plan Section Purpose Executive summary Brief summary of the main goals and recommendations Current marketing situation Gives the market description and the product, competition, and distribution review Threats and opportunities analysis Helps management to anticipate ‫ﺗوﻗﻊ‬important positive or negative developments Objectives and issues States and discusses marketing objectives and key issues Copyright © 2017 Pearson Education, Ltd. 2 - 38 Contents of a Marketing Plan Section Purpose Marketing Outlines the broad marketing logic and the specifics of strategy target markets, positioning, marketing expenditure levels, and strategies for each marketing mix element Action programs Spells out how marketing strategies will be turned into specific action programs Budgets Details a supporting marketing budget that is a projected ‫اﻟﻣﺗوﻗﻊ‬profit-and-loss statement Controls Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals Copyright © 2017 Pearson Education, Ltd. 2 - 39 Market Implementation • Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives • Addresses the who, where, when, and how of the marketing activities Copyright © 2017 Pearson Education, Ltd. 2 - 40 Marketing Department Organization Functional organization Geographic organization Market or customer management organization Product management organization Combination organization Copyright © 2017 Pearson Education, Ltd. 2 - 41 Marketing Control • Measuring and evaluating the results of marketing strategies and plans • Operating control ensures that the company achieves its sales, profits, and other goals. • Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities. Copyright © 2017 Pearson Education, Ltd. 2 - 42 Marketing Return on Investment (ROI) • Net return from a marketing investment divided by the costs of the marketing investment • Assessment measures • Standard marketing performance measures • Customer-centered measures Copyright © 2017 Pearson Education, Ltd. 2 - 43 Figure 2.8 - Marketing Return on Investment Source: Adapted from Roland T. Rust, Katherine N. Lemon, and Valerie A. Zeithaml, “Return on Marketing: Using Consumer Equity to Focus Marketing Strategy,” Journal of Marketing, January 2004, p. 112. Used with permission. Copyright © 2017 Pearson Education, Ltd. 2 - 44