Marketing 4e - Chapter 14 PDF

Chapter 14 Putting it all together: The strategic marketing plan Chapter outline The nature of strategic planning The strategic marketing plan The value of a strategic marketing plan The elements of a marketing plan Strategic marketing objectives Writing the marketing plan Effe...

Chapter 14 Putting it all together: The strategic marketing plan Chapter outline The nature of strategic planning The strategic marketing plan The value of a strategic marketing plan The elements of a marketing plan Strategic marketing objectives Writing the marketing plan Effective strategic planning. The nature of strategic planning Strategic planning = the managerial process of creating and maintaining a fit between the firm’s objectives and resources on the one hand, and evolving market opportunities on the other Strategic marketing management answers two questions: What is the firm’s main activity? How will it reach its goals? The strategic marketing plan Marketing planning = designing activities relating to marketing objectives and the changing marketing environment. Marketing plan: a written document acts as a guidebook for future marketing activities. The value of a strategic marketing plan: compare actual with expected performance provides clearly stated objectives examine marketing environment in conjunction with the inner workings of the firm reference point to determine success of future activities able to enter the market with awareness of possibilities and problems. The elements of a marketing plan Define the business mission Strategic marketing objectives Conduct a situation analysis Competitive advantage Formulate the marketing strategy Implementation, evaluation & control The elements of a marketing plan Define the business mission Mission statement determines: What business are we in? Where are we going? Mission statement should not be: too narrow (marketing myopia) too broad. The elements of a marketing plan Strategic marketing objectives formulate broad strategic marketing objectives refer to the firm as a whole, rather than to brands or markets. The elements of a marketing plan Conduct a situation analysis conduct a SWOT analysis conduct environmental scanning study macro-environmental forces: - social - demographic - economic - technological - political and legal - competitive forces The elements of a marketing plan Conduct a situation analysis assess the competitive environment the economics of competition - monopoly - pure competition - oligopoly - monopolistic competition - strategic windows. Strategic window = the limited period during which the ‘fit’ between the key requirements of a market and a particular firm’s competencies are at an optimum The elements of a marketing plan Conduct a situation analysis assess the corporate culture Corporate culture = a pattern of basic assumptions a firm has adopted to cope with its internal environment and the changing external environment types of corporate culture responses: prospector reactor defender analyser The elements of a marketing plan Conduct a situation analysis opportunity-utilisation strategies market penetration market development product development Diversification the selected strategy will depend on: the corporate philosophy and culture of the firm the tool used to make the decision The elements of a marketing plan Conduct a situation analysis Strategic management tools: 1. Boston Consulting Group portfolio matrix 2. General Electric market attractiveness/company strength matrix. The elements of a marketing plan Conduct a situation analysis Boston Consulting Group portfolio matrix Star Question Market mark growth Cash cow Dog Market share dominance The elements of a marketing plan Conduct a situation analysis Strategic management tools: 1. Boston Consulting Group portfolio matrix basic strategies to use to allocate future resources to each SBU: build hold harvest Divest. The elements of a marketing plan Conduct a situation analysis Strategic management tools (cont.): 2. General Electric market attractiveness/company strength matrix the horizontal axis = refers to how well- positioned the firm is to take advantage of market opportunities the vertical axis = measures the attractiveness of a market; is divided into three zones: high, medium, low. The elements of a marketing plan Competitive advantage Two basic sources of competitive advantage: superior skills superior resources. The elements of a marketing plan Setting marketing strategy objectives Marketing strategy = the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets based on the firm’s competitive advantage and proposed positioning The elements of a marketing plan Setting marketing strategy objectives Marketing objective = a statement of what is to be accomplished through marketing activities Criteria of marketing objectives: should be realistic, measurable and time-specific should be consistent and indicate priorities of the firm. The elements of a marketing plan Formulate the marketing strategy Target market strategy Positioning strategy Marketing mix. The elements of a marketing plan Formulate the marketing strategy The target market strategy: identifies which market segment or segments to focus on requires a market opportunity analysis (MOA). 3 strategies for selecting target markets: appealing to entire market with one marketing mix concentrating on one segment appealing to multiple market segments using multiple marketing mixes. The elements of a marketing plan Formulate the marketing strategy Positioning strategy Marketing mix - product strategies - distribution strategies - marketing communication strategies - pricing strategies. The elements of a marketing plan Implementation, evaluation & control Implementation = the process that turns marketing plans into action assignments Evaluation = entails gauging the extent to which marketing objectives have been achieved during the specified period Control = provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for corrective actions The elements of a marketing plan Implementation, evaluation & control Marketing audit = a thorough, systematic, periodic evaluation of the goals, strategies, structure and performance of the marketing firm; a control device 4 characteristics of a marketing audit : comprehensive systematic independent periodic Writing the marketing plan The marketing plan… should not be viewed as a series of sequential planning steps has different content for every marketing plan should be unique to the firm for which it was created has a flexible format and presentation order. Also make use of summary marketing plans Effective strategic planning Effective strategic planning requires continual attention, creativity and management commitment Effective strategic planning: is not an annual exercise sound planning is based on creativity. NB: TABLE 14.4