CIM Post Graduate Diploma
Marketing Leadership & Planning
Michael G. Warner Chartered Marketer MBA DipM FCIM FIDM 1
Course Objectives
To deliver a coherent and deliverablemarket oriented internal culture
to encourage flexibilitywhich is SMART enough for your employer
to understand and give you the go ahead.
To follow the CIM guidelines so as not to throw away marks
To maximise the LSM on-line resources=
SUCCESS2Michael G. Warner Chartered Marketer MBA DipM FCIM FIDM
Session 3
Strategic Marketing Plans
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Corporate Strategic Planning Process
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What is strategy? The direction and scope of an organisation over the
long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.
Johnson, Scholes and Whittington
In simple terms, it is the means by which an organisation implements its vision and mission whilst achieving a competitive advantage. Strategy depicts:
The direction of the organisationMarkets to be served and the scopeMethod of achieving competitive advantage Resource requirement and allocationInfluence and implications of the external environmentThe expectations and the values of the stakeholders
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Levels of Strategy
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market oriented internal culture to encourage flexibility
Corporate Strategy – Purpose and scope
When developing the corporate strategy, the following factor
should be taken into account:
Opportunities and threats derived through the environment
Availability and requirement of resources
Stakeholder, shareholder and organisational value
Timescale – (corporate strategies are developed on a long term
basis)
Complexity – uncertainty of the future, dynamism of the
environment
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Business Strategy – How do we compete?
Once the corporate Strategy derives what products to offer in which markets, the
next question of the business process would be to determine the way in which a
competitive advantage would be
achieved.
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Operational Strategy
Organisations comprise of different functions. Therefore, once the way of competing
is determined, it is important to derive the functional strategies to reflect the scope
and focus of each function/ department
Organisations often develop strategies for the following functions:
Production
Marketing
Finance
HRM
Research and development
Information systems Strategic fit
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5 M’s +E used for a resources audit
Manpower Money Materials Machines Markets
Enterprise
Michael G. Warner Chartered Marketer MBA DipM FCIM FIDM
Strategic Choice – Product Market strategies
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Hierarchy of Objectives
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The McKinsey 7s – key internal
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http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1326
B2B Whiteboard v g
The Importance of Marketing Planning in a Market-Oriented organisation
Delivering strategies & achieving objectives
Implementing a marketing project
Monitoring of progress
Managing implementation
Resource management
Financial management
Measurement of success
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A Road Map to Developing Strategic Plans
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Corporate Objectives Corporate objectives are statements of intent that provide
the basic direction for the activities of an organisation in achieving its mission.
E.g. – Achieve a 20% increase in ROCE every year
Corporate Objectives are translated into functional objectives in order to provide a basis for functional activities. It is important to ensure that each functional objectives are linked to the corporate objectives. Accordingly, the marketing function will develop its own objectives to ensure their contribution to the achievement of corporate objectives.
E.g – Achieve a market share of 30% by the end of 2011 Achieve a customer awareness level of 80% for all brands by
the end of 2010
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Nestlé's Objectives
Nestlé’s corporate objective is to be the world’s largest and best branded food manufacturer, whilst ensuring that the Nestlé name is synonymous with products of the highest quality.
In recent years, the company has pursued a policy of expansion and diversification through acquisition and divestment to achieve a more balancedstructure to the business.
Based on the corporate objectives, Nestlé has set marketing objectives for each of its product lines and profit centres. The primary objective for Kit Kat is to maintain its position as the UK’s number one selling confectionery brand.
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Impact of future corporate and marketing objectives
Objectives that are not achievable are worthless. It is important to note that objectives must lead to organisational capabilities to enable effective implementation.
However, acquiring a capability is not as easy as it sounds. To become good at something involves on-going training and practice.
Then only the organisation can develop successful competitive strategies that outperform others in the marketplace. For example, marketing capabilities are supported by effective communications and time to market is enabled by the logistics behind it.
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Impact of future corporate and marketing objectives
The organisation should possess the necessary resources such as finance, human resources, plan and equipment in order to achieve its objectives.
After/before developing the objectives, the organisation can conduct a resource audit to evaluate the resource capacity. The resource audit should include –
Technical resources Financial standing (credit rating, availability of capital, level of
gearing..etc) Managerial skills Information systems
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Corporate Objectives Year 1 Year 2 Year 3 Year 4 Year 5Increase overall revenue by: 5% 8% 10% 15% 20%Decrease overall cost of goods by: 5% 5% 5% 5% Maintain
current levels
Increase overall profit margins by: 3% 5% 8% 10% Maintain current levels
Marketing ObjectivesIncrease revenue by:From:UKMarket 1Market 2Market 3USMarket 1Market 2EUCountry a: Market 1 Market 2Country b: market 1
5%5%
10%8%
10%5%5%
10%
7%6%
14%6%5%6%5%8%
9%8%
18%5%4%7%5%6%
11%10%22%6%3%8%5%5%
14%12%26%7%4%9%5%7%
Increase brand awareness through brand recall by:From:UKUSEUCountry aCountry b
60%30%50%40%
70%40%60%50%
80%50%70%60%
90%60%80%70%
100%70%90%80%
An Example of How Corporate and Marketing Objectives Could be Illustrated
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Outline of a Strategic Marketing Plan
1. Executive summary2. Key Issues 3. Vision, Mission and Corporate Objectives4. Situation Analysis
4.1 Macro economic analysis 4.2 Industry Analysis 4.3 Market Analysis4.4 Internal Analysis 4.5 Summary of Current Situation
5. Marketing Objectives6. Marketing strategies7. Implementation (marketing mix) 8. Budgetary Requirements9. Control, Milestones and Corrective Actions
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Implementing a Strategic Marketing Plan - Developing core competencies
Core competencies are those capabilities that are critical to an organisation in order to achieve a competitive advantage. Core competencies should ideally make a significant contribution to what the customers perceive as a “benefit” . Furthermore, a core competency should be unique and difficult for competitors to imitate.
E.g – The core competency that has made “Tesco.com” standout from rest of the online shopping sites are: The provision of an effective distribution system Implementation of excellent supply chain management Provision of an attractive, user friendly customer interface that provides a
customised approach to online shopping.
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Implementing a Strategic Marketing Plan - Marketing Audit
A marketing audit involves a comprehensive, systematic, independent and periodic examination of a company’s or business unit’s marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s performance”
Kotler and Keller (2006)
Marketing audit has two parts External audit: political, economic, social, technological, environmental, and legal influences Internal audit:
Customers, competitors, suppliers, distributors, dealers and the public
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Implementing a Strategic Marketing Plan
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Why Marketing Plans fail!
Design and implementation issues - Marketing plans are of no use unless they are designed in an achievable manner and implemented to ensure that all required resources are available and proper monitoring mechanisms are put in place.
Lack of management support – In practice, managers guide the actions of employees. If they don’t have a clear focus and change plans frequently, employees would not be motivated to adhere to plans nor achieve their objectives.
Separation of operational planning from strategic planning – If operational plans are not designed in line with the strategic plans, the intended results will not be achieved and instead, teams will operate in isolation to achieve their objectives.
Lack of Integration between marketing planning and corporate planning
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Agenda
Management functions
Corporate and marketing objectives
Strategy
Strategic planning process
Implementing a Strategic Marketing Plan
Importance of marketing planning
Why marketing plans fail?
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The Context of the Organisation
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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Integrating Marketing Planning Process with organisational Strategy and objectives
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Advantages & Disadvantages of Strategic Planning
Advantages Disadvantages
Identifies Risk Discourage strategic thinking
Stimulate management thinking Assumes that the environment is predictable
Maintains consistency at all levels Ignores internal politics
Facilitates better control Exaggerates Power
May not work for dynamic environments
Regular and routine
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Involves longer-term planning horizons
Involves major commitments of company resources
Determines the nature of what an organisation is & what it is to be
Affects & involves all levels, functions & activities of a business
Reflects both internal (company) & external considerations
The Importance of Strategic Marketing Planning
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