Strategic Marketing Planning
-
Upload
adityavyas -
Category
Business
-
view
3.154 -
download
0
description
Transcript of Strategic Marketing Planning
Marketing Strategy &Planning
Business Strategy
VOCABULARY OF STRATEGICMANAGEMENT
VISION : Desired future state; the aspiration of the Organization
What are our Dreams and Aspirations?
What do we want to look like in 5, 10, 15 years?
Where do we want to go?
VOCABULARY OF STRATEGICMANAGEMENT
MISSION :It is the unique purpose or reason for organization’s existence.
Overriding purpose in line with the values or expectations of the stakeholders
Who are we? What business are we in?
Good Mission Statements
Focus on limited number of goals Stress major policies and values Define major competitive spheres within which
the company will operate by defining the: Industry. Products and applications. Competence. Market-segment Geographical Vertical limit
VOCABULARY OF STRATEGICMANAGEMENT
OBJECTIVE : Quantification or more precise statement of objective
Definable: It should define to compare the performance
Quantifiable: It should be expressed in terms of “Value Or Market share”
( Avoid Vague terms such as “increase, improve or maximize”)
Achievable:
e.g. To increase sales of product globally by 30% in real terms within 5yrs. To increase market share for the product in the India from 10%-15% over 2yrs
VOCABULARY OF STRATEGICMANAGEMENT
GOAL: General statement of Aim or Purpose.
It is an open ended statement of what one wishes to accomplish with no quantification and no time frame for completion.
GOAL OBJECTIVE STRATEGY
To be No. 1in the market
Increase market share by 15% in three years
i) Increase product promotion
ii) Design product pricing
iii) Penetration
iv) New market development
v) Product-Service mix
vi) Quality improvement
VOCABULARY OF STRATEGICMANAGEMENT
CORE : Resources, Processes, Skills COMPETENCE and Experience, which
provide superior Competitive Advantage
STRATEGY : Long Term Direction
STRATEGIC : Combination of Resources, ARCHITECTURE Processes and Competencies
to put strategy in action
VOCABULARY OF STRATEGICMANAGEMENT
CONTROL : Monitoring of Action Stepsto :
(a) Assess effectiveness of Strategies & Action
(b) Modify Strategies & Action as necessary
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
1. VISION
What are our Dreams and Aspirations?
Where do we want to go?
What do we want to look like in 5, 10, 15 years?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
2. MISSION
Who are we?
What business are we in?
Corporate Mission This seeks to embody the entire goals of
the organization and the objective of its existence.
It seeks to provide a sense of purpose, direction and opportunity
How to go about it? Defining the corporate mission Establishing SBUs Allocating resources for SBUs Planning for new business
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
3. VALUES
What do we prize?
What drives our business?
What are our criteria for making ethical decisions?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
4. MARKETS
Which markets should we be in?
Which markets do we need to create?
What should be our basic Customer Orientation?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
5. CORE COMPETENCIES
What are we good at?
What do we need to be good at?
How can we leverage our competencies into products and services for market we serve?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
6. PRODUCTS & SERVICES
What kinds of products and services should we provide for the markets we serve?
How do we use these products to carve out a market niche?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
7. BUSINESS ENVIRONMENT
What Threats and Opportunities do we face from Environmental Factors?
How do we track Key Environmental Activities and Trends?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
8. STAKEHOLDERS
Which group of individuals are affected by the way we do business?
How do we establish win-win relationship with our stakeholders?
NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY
9. CRITICAL RESOURCES
Which are the Critical Resources do we need to do business?
What should we do to ensure a steady supply of these Resources?
ECONOMIC PERFORMANCE IS THE FUNDAMENTAL REASON FOR ANY
ORGANISATION TO EXIST
CONSTITUENTS OF ECONOMIC PERFORMANCE ARE :
To make present business effective;
To identify potential and realise it;
To make different business for a different future.
CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE
TO MAKE PRESENT BUSINESS EFFECTIVE
Maximizing Opportunities
Maximizing Resources
Maximizing Results
CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE
TO IDENTIFY POTENTIAL AND REALISE IT
Environment Scanning
SWOT Analysis
Turning obstacles into opportunities
CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE
TO MAKE A DIFFERENT BUSINESS FOR A DIFFERENT FUTURE
Focus on Core Competencies
Creation of Learning Organization
Redrawing Industry Boundaries
Market Orientation Companies can achieve competitive
advantage with the ability of an organization to provide superior value consistently to its customers.
It focuses on-
Customer Focus
Competitor Orientation
Coordination across functions
Planned & Adjusted Strategies Planned Strategy
1. Top down flow of instructions
2. Major changes in organization
3. Mkt-oriented structure is adopted first
.
Adjusted Strategy
1. Bottom-up flow of in formations
2. Evolving changes in organization.
3. Mkt-orientation strategy is formulated first.
Planned & Adjusted Strategies cntd..
Planned Strategy
4 Strategy is formulated to achieve results.
5 Training provided is program oriented.
6 Culture change is achieved by providing training to change individual
Adjust Strategy
4 The result of the strategy are used to design a structure.
5 .training provided is opportunity oriented.
6 Culture change is achieved by changing roles or putting in new people to meet specific skills.
Strategic Planning
What is Strategic Planning? It is the managerial process that helps to
develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.
5 questions that the firm must ask itself What is our business? Who is our customer? What does our customer need? What will our business be? What should our business be?
Marketing Myopia Industry is a customer satisfying process
not a goods producing process. It is important therefore how you redefine
your business.
SBU It is a company within a company The business is differentiated from the rest
of the company It has its own set of competitors It is a separate profit centre
The BCG Matrix
???
Stars
Dogs Cash Cows
Mkt Share
Mkt
gro
wth
SBU strategies Build Hold Harvest Divest
SWOT Analysis Strengths Weaknesses Opportunities Threats
The GE Model
Business Strength
Mkt
Att
rac t
ive n
ess
Strong
Medium
Weak
StrongMediumWeak
Ansoff’s Product-Market GridCurrent products New products
Current Mkts
New Mkts
Mkt penetrationstrategy
Mkt developmentstrategy
Product developmentstrategy
Diversificationstrategy
The Planning Process Analysing Market opportunities Developing Marketing strategies Planning Marketing Programs Managing the Marketing Effort
Porter’s Generic Strategies Overall cost leadership Product Differentiator Focus
Marketing Control Annual Plan control Profitability control Strategic Control
Marketing Planning
Efficient Inefficient
Ineffective Perish
(immediately)
Perish
(gradually)
Effective Flourish Endure
Tactics
Strategy
strategy
Benefits of Marketing Planning
Enhanced interpersonal relationships within the organization
Effective utilization & application of marketing intelligence
Enhanced communications within & outside the organization
Hurdles in the marketing planning process
Misunderstanding tactics as strategy Treating marketing as an independent
function Defining Marketing function
Organizational structure hurdles
Hurdles in the marketing planning process cntd..
Lack of proper analysis Lack of proper knowledge Absence of methodical approach to
marketing planning Failure in prioritizing goals
Documentation of Marketing Plan
Executive summary Marketing objectives of the business Product/Market condition Results of the SWOT analysis Customer & competitor information Segmenting, targeting & positioning
strategies.
Documentation of Marketing Plan cntd.
Sales forecast & results Marketing activities for implementation Evaluating & monitoring the marketing
performance Financial forecast & allocating a budget Considerations in operations.
Steps for creating a marketing plan
Summarizing the strategic situation. Describing the target markets Set objectives for the target markets Formulate a marketing program considering
the following- Product strategy, Price strategy,
Distribution strategy, Promotion strategy, Marketing research, Coordination with other business functions.
Steps for creating a marketing plan cntd….
Forecast sales & profit, allocate functions Draw up contingency plans.