MKT524 Lectures 2-3 Strategic Marketing Planning Part A

8/11/2019 MKT524 Lectures 2-3 Strategic Marketing Planning Part A

1/25

STRATEGIC MARKETING

PLANNING

What is planning?


2/25

Planning is preparing for tomorrow.

It involves decisions on: where one wants to be tomorrow and

how one is going to get there

What is Strategic marketing planning?


3/25

It is the process of analysing opportunities,

choosing objectives, developing strategy,

formulating annual marketing plan/programsand carrying out implementation and control.


4/25

There are:

long-range plans and short range plans


5/25

Short range plans cover in great detail

the targets and programs for the

immediate future, usually for a year.


6/25

Long-range plans are concerned with

five or more years away and address

themselves to broader issues in much

more general terms.


7/25

STRATEGIC MARKETING

PLANNING PROCESS

The process can be sub-divided into

seven steps.


8/25

Step 1: Environmental Analysis or

Situational Analysis.

Step 2: Overall Mission or Purpose and

Vision

Step 3: Setting Specific Objectives


9/25

Step 4: Strategies

Step 5: Development ofAnnual Action Plan/tactics

Step 6: Implementation

Step 7: Control/Evaluation


10/25


11/25

Step 1: Environmental Analysis orSituational Analysis.

This step should deal with business researchand SWOT analysis (i.e. strengths,

weaknesses, opportunitiesand threats)

Here you need to also conduct:

-market analysis-competitors analysis


12/25

Opportunities and Threats Analysis in the

External Environment Opportunities:

One of the major purposes of environmentalanalysis is to identify new opportunities in the

external environment.

A company marketing opportunity can bedefined as:

An attractive arena for company marketing

action in which the company would enjoy acompetitive advantage


13/25

The key to a company marketing opportunity

lies in the question of whether the specific

company can bring more to its environmentalopportunity than its potential competitors.

This opportunities should be classified

according to their:-attractiveness and

-the success probability that the company

would have with each opportunity.


14/25

Threats: Some of the developments in the

external environment represent threats.

An environmental threat can be defined as: A challenge posed by an unfavourable trend

or development in the environment that

would lead, in the absence of purposefulmarketing action to erosion of the

companys position.

These threats should be classified accordingto their seriousness and probability of

occurrence.


15/25

Strengths/Weaknesses in InternalEnvironmental Analysis

It is one thing to identify attractiveopportunities in the environment, it isanother to have the necessary competenciesto succeed in these opportunities.

Each business needs to evaluate itsstrengths and weaknesses periodically.

In general, the company has to monitor keymacro-environmental forces such as:

demographic, economic, technological,political, legal, and social factors that affectits business.


16/25

It must also monitor significant micro-

environmental actors such as:

Customers, competitors, distribution channels,suppliers that affect its ability to earn profit in

the market place.

In addition to the current situation the analysisshould cover:

-future situation, and

-any local problems and opportunities whichare expected to come up during the period

under review


17/25

Step 2: Overall Mission/Purpose and

Vision

Based on the analysis in Step 1, thecompany should now set the overall

mission/purpose and vision for its

business operations.


18/25

THE FIRMS MISSION AND

VISION A mission statement should answer the

question What is our business? and

A vision statement should answer the

question What do we want tobecome?


19/25

According to Jonathan Swift

Vision is the art of seeing things invisible

The very essence of leadership is that you have to

have vision.

You cant blow an uncertain trumpet says

Theodore Hesburgh


20/25

Having clear vision will provide foundation

for comprehensive mission statement


21/25

A mission statement revealsthe long-term vision of anorganisation in terms of:

what it wants to be and

whom it wants to serve


22/25

It describes an organisations:

Creed statement purpose

customers

products or services markets

philosophy and

basic technology


23/25

The fundamental questions are:

Who are we and what should we do?

What activities should we engage in?

What products or services do we want

to provide? In what kinds of markets and

technology do we want to be involved

in?


24/25

Who should our customers be and

why should they buy our products

and/or services?

What if anything, should we do that

is distinctive or better or otherwise

different from other organisations?


25/25

Importance of Mission and

Vision Statements Unity of purpose within the organization

Basis for allocating resources

Establish organizational climate Focal point for direction

Useful for Translating objectives into work

structure Cost, time and performance parameters

assessed and controlled

MKT524 Lectures 2-3 Strategic Marketing Planning Part A

Documents

Transcript of MKT524 Lectures 2-3 Strategic Marketing Planning Part A