Strategic Marketing Planning

Smita Sharma

Strategic Planningis the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.

The Role of Strategy

Sun Tzu on StrategyKnow your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.

Strategic MarketingMarketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.John Scully (Former CEO of Apple)

The Planning ProcessAnalyzing Market OpportunitiesDeveloping Marketing StrategiesPlanning Marketing ProgramsManaging the Marketing Efforts

How to go about it?Defining the corporate missionEstablishing SBUsAllocating resources for SBUsPlanning for new business

Corporate MissionThis seeks to embody the entire goals of the organization and the objective of its existenceIt seeks to provide a sense of purpose, direction and opportunity

SBUIt is a company within a companyThe business is differentiated from the rest of the companyIt has its own set of competitorsIt is a separate profit centre

Strategic Business UnitA set of products or product lines with clear independence from other products or product lines for which a business or marketing strategy should be designed

Characteristics of a viable SBUUnique business missionDefinable set of competitorsIntegrative planning done independentlyResponsible for resource management in all areasLarge enough but not so large as to become bureaucratic

SBUThe purpose of identifying the companys strategic business units is to develop separate strategies and assign appropriate funding.Large companies manage different businesses independently, each SBU requires its own strategy.General Electric classifies its businesses into 49 SBUs.

Developing marketing strategies & plans- What has to be done???

SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats

SWOT AnalysisMonitoring the external andinternal marketing environment

The Boston Matrix:

A means of analysing the product portfolio and informing decision making about possible marketing strategiesDeveloped by the Boston Consulting Group a business strategy and marketing consultancy in 1968Links growth rate, market share and cash flow

The Boston Matrix

BCG Market Share/Market Growth Matrix

SBU strategiesBuildHoldHarvestDivest

Ansoffs Product-Market GridCurrent productsNew productsCurrent MktsNew MktsMkt penetrationstrategyMkt developmentstrategy Product development strategyDiversificationstrategy

Market Penetration Trying to increase the sales of a firms present products in its present markets Possibly through a more aggressive marketing mix. (an attractive promotion, door step delivery, unconditional warranty, zero interest credit, increased sales activities, increasing points of purchase, etc)

Market development Selling present products in new markets. This may involve searching for new uses for a productMarket penetrationProduct developmentDiversificationMarket developmentPresent productsNew productsPresent marketsNew markets

Product development Offering new or improved products for present markets.It can be a successful brand extension-line/image related

Diversification Moving into totally different lines of business Perhaps entirely unfamiliar products, markets, or even levels in the production marketing system.Market penetrationProduct developmentDiversificationMarket developmentPresent productsNew productsPresent marketsNew markets

Porters Generic StrategiesOverall Cost LeadershipProduct DifferentiationFocus

Strategy FormulationFirms pursuing the same strategy directed to the same target market constitute a strategic group.The firm that carries out that strategy best will make maximum profits.

Strategy is the creation of a unique andvaluable position involving a different set ofactivities.

What is Competitive Advantage?Competitive advantage is a companys ability to perform in one or more ways that competitors cannot or will not match. Philip KotlerIf you dont have a competitive advantage, dont compete. Jack Welch, GE

Other Characteristics of Competitive AdvantageSubstantialityIs it substantial enough to make a difference?SustainabilityCan it be neutralized by competitors quickly?Ability to be leveraged into visible business attributes that will influence customers(Source: Strategic Marketing Management, Aakers)

Successful Planning StrategiesAll planning strategies have the goal of creating a sustainable competitive advantage for a firm.

An advantage where other companies cannot provide the same offering or value.

First Mover and Second Mover Strategies

First mover strategy: Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner.

Second mover strategy: Theory that advocates observing closely the innovations of first movers and then introducing new products that improve on the original offering to gain advantage in the marketplace.

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