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Developing Marketing Developing Marketing Strategies and PlansStrategies and Plans

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What is Strategy ? A Voyage on the Ocean

Controls

Objective

StrategyFormulation

Tactics

StrategicAnalysis

x

StrategicOption x

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• Objective : To get from Copenhagen to Helsingborg as fast as possible and as cheaply as possible

• Strategic AnalysisDeparture point / Prices / Weather conditions / Sea conditions /

Traffic conditions / Departure times / Duration of journey ….

• Allocated ResourcesBusiness Expenses

• Strategic Options : Bus? Rental car? Taxi? Helicopter shuttle? Boat? ….

• Strategy : Take the helicopter shuttle

• Tactics : Choose departure time / Prepare luggage / Buy ticket / Take earplugs / Board the helicopter / Fasten seat belt …..

Example

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Business Example

OBJECTIVESOBJECTIVES STRATEGYSTRATEGY TACTICSTACTICS

PURPOSEPURPOSE Set ultimate Set ultimate objectivesobjectives

Meet ultimate Meet ultimate objectivesobjectives

Meet contributing Meet contributing sub-objectivessub-objectives

ACTIVITYACTIVITY Think / DoubtThink / Doubt Think / DoubtThink / Doubt Act / BelieveAct / Believe

TIME HORIZONTIME HORIZON Longer termLonger term Long termLong term Short termShort term

MAGNITUDE OFMAGNITUDE OF

EFFECTSEFFECTSLarger amplitudeLarger amplitude Large amplitudeLarge amplitude Small amplitudeSmall amplitude

EXAMPLEEXAMPLE

(ONE STRATEGIC (ONE STRATEGIC THRUST)THRUST)

Improve Improve

profitabilityprofitability … …

Gaining a Gaining a

competitive competitive

advantage based advantage based

on lower on lower

production production

costcost … …..

Partnering for Partnering for

economies of scaleeconomies of scaleAcquiring newAcquiring new

manufacturing manufacturing

technologytechnologyImproving change- Improving change-

over costs over costs … …

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Allocating marketing investment according to customer value

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Corporate and Division Strategic Planning

Defining the Corporate MissionDefining the Corporate Mission Mission statements define which competitive Mission statements define which competitive

scopes the company will operate inscopes the company will operate in Industry scopeIndustry scope Products and applications scopeProducts and applications scope Competence scopeCompetence scope Market-segment scopeMarket-segment scope Vertical scopeVertical scope Geographical scopeGeographical scope

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Mission Statements

Fast Food Industry

To make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products.

Ben & Jerry‘s

To satisfy the world's appetite for good food, well served, at a price people can afford.

McDonald’s

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Mission Statement

Great Britain – WWII

Our whole people and empire have vowed themselves to the single task of cleansing Europe of the Nazi pestilence and saving the world from the new dark ages. We seek to beat the life and soul of Hitler and Hitlerism. That alone. That all the time. That to the end.

Winston Churchill, 1941

Collins and Lazier, Managing the Small to Mid-sized Company

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Can you name a company that has Can you name a company that has recently changed its product scope recently changed its product scope or market segment scope in a very or market segment scope in a very public way? Was this an expansion public way? Was this an expansion or contraction of scope?or contraction of scope?

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Product-Oriented versus Market-Oriented Definitions of a Business

CompanyCompany Product DefinitionProduct Definition Market DefinitionMarket Definition

Missouri-Pacific Missouri-Pacific RailroadRailroad

We run a railroadWe run a railroad We are a people-and-We are a people-and-goods movergoods mover

XeroxXerox We make copying We make copying equipmentequipment

We help improve office We help improve office productivityproductivity

Standard OilStandard Oil We sell gasolineWe sell gasoline We supply energyWe supply energy

Columbia PicturesColumbia Pictures We make moviesWe make movies We market entertainmentWe market entertainment

EncyclopaediaEncyclopaedia We sell encyclopediasWe sell encyclopedias We distribute InformationWe distribute Information

CarrierCarrier We make air We make air conditioners and conditioners and furnacesfurnaces

We provide climate We provide climate control in the homecontrol in the home

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Corporate and Division Strategic Planning

BCG MatrixBCG Matrix The General Electric ModelThe General Electric Model

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Factors Influencing Company Marketing Strategy

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Business Unit Strategic Planning

Business MissionBusiness Mission Example: Southwest AirlinesExample: Southwest Airlines

The mission of Southwest Airlines is The mission of Southwest Airlines is dedication to the highest quality of dedication to the highest quality of Customer Service delivered with a sense Customer Service delivered with a sense of warmth, friendliness, individual of warmth, friendliness, individual pride, and Company Spirit. pride, and Company Spirit.

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Business Unit Strategic Planning

SWOT AnalysisSWOT Analysis Internal AnalysisInternal Analysis

Strength and Weakness AnalysisStrength and Weakness Analysis

External Environment Analysis External Environment Analysis Opportunity and Threat AnalysisOpportunity and Threat Analysis

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Business Unit Strategic Planning

Porter’s Generic StrategiesPorter’s Generic Strategies Overall cost leadershipOverall cost leadership DifferentiationDifferentiation FocusFocus

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Competitive Advantage

Achieved when there is a match between a firm’s distinctive competencies and the factors critical for success within its industry

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Hong Kong film star Jackie Chan

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Product-Market Expansion Grid

Products

Current New

Markets

Current

New

Market Penetration

ProductDevelopment

MarketDevelopment

Diversification

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The Business Strategic Planning Process

MissionMission SWOTSWOT Goal formulationGoal formulation Strategy formulationStrategy formulation Program formulationProgram formulation ImplementationImplementation Feedback and controlFeedback and control

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Five most common errors of entrepreneurs

1. No realistic goals1. No realistic goals 2. Failure to anticipate roadblocks2. Failure to anticipate roadblocks 3. 3. No commitment or dedicationNo commitment or dedication 4. Lack of demonstrated experience4. Lack of demonstrated experience 5. No market segment(s)5. No market segment(s)

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Frank Moyes -Entrepreneurship

Master Teacher

Concept AnalysisConcept Analysis

Business PlanBusiness Plan

http://leeds-faculty.colorado.edu/moyes/bplan/html/sample.html

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Concept Analysis

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Business Plan

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Product Planning: The Nature and Contents of a Marketing Plan Contents of the Marketing PlanContents of the Marketing Plan

Executive SummaryExecutive Summary Current Marketing SituationCurrent Marketing Situation Opportunity and issue analysisOpportunity and issue analysis ObjectivesObjectives Marketing strategyMarketing strategy Action programsAction programs Financial projectionsFinancial projections Implementation controlsImplementation controls