Developing and Enacting Strategic Marketing Plans and Amplifying Your Responsibility as a Middle...

Developing and Enacting Strategic Marketing Plans and

Amplifying Your Responsibility as a Middle Marketing Manager

Lindell’s Notes

L.P. Chew BA 315 Chapter 2 supplement to assist you in PORTFOLIO PLANNING

AND ANALYSIS

Copyright Atomic Dog Publishing, 2002

Objectives-BA 315 Cpt. 2 Sup

To define strategic planning and consider its importance for marketing

To describe thoroughly each of the steps in the strategic planning process; defining organizational mission, establishing strategic business units, setting marketing objectives, performing situation analysis, developing marketing strategy, implementing tactics, and monitoring results

To show how a strategic plan may be devised and appliedWe will focus on your responsibility as a product (middle

marketing) manager


Strategic Planning is Critical A strategic business plan describes the overall

direction an organization will pursue within its environment and also guides the allocation of resources. It provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction.

A strategic marketing plan outlines the actions necessary, who is responsible, when and where they will be completed, and how they will be coordinated. A marketing plan is carried out within the context of a firm’s broader strategic business plan.


The Strategic Planning Process

1. Defining

Organizational Mission

2. Establishing

SBUs

3. Setting

Marketing Objectives

4.

Performing Situation Analysis

5. Developing Marketing Strategy

6. Implementing

Tactical Plans

7. Monitoring

Results

Feedback


Step One in the Strategic Planning Process

1. Define Organizational

Mission

1. Defining Organizational

Mission

Defining the organizational mission refers to a long-term commitment to a type of business and a place in the market. It “describes the scope of the firm and its dominant emphasis and values,” based on a firm’s history, current management preferences, resources, and distinctive competence, and on environmental factors. Lindell says bedistinct , motivating and feasible!!


Step Two in the Strategic Planning Process

2. Establishing

SOA’s & SBUs

First - STRATEGIC OPERATING AREAS, then - STRATEGIC BUSINESS UNITS

Each of a firm’s Strategic Business Units (SBU ) has six attributes:

• A specific target market

• Its own senior marketing executive

• Control over its resources

• Its own marketing strategy with distinct differential advantages

• Clear-cut competition


Step Three in the Strategic Planning Process

3. Setting

Marketing Objectives

Marketing objectives establish the firm’s goals for each SBU. Objectives are described in both quantitative terms (dollar sales, percentage profit growth, and market share), and qualitative terms (image, level of innovativeness, and industry leadership role).

Without clearly identified objectives, firms often fail.


Step Four in the Strategic Planning Process

4. Performing Situation

Analysis

The situation analysis

Lindell suggests plus, minus & interesting rather than SWOT

Internal factors include:•Strengths•Weaknesses

• External factors include:•Opportunities•Threats

Continuous review of a firm’s market position.


Step Five in the Strategic Planning Process

5. Developing Marketing Strategy

A marketing strategy outlines the way in which the marketing mix is used to attract and satisfy the target market.

A separate strategy is necessary for each SBU.Four strategic planning approaches are:

• Product/Market Opportunity Matrix

• Boston Consulting Group Matrix

• General Electric Business Screen

• Porter Generic Strategy Model


The Product/Market Opportunity Matrix(Product/Market Expansion Grid)The product/market opportunity matrix identifies four alternative marketing strategies to maintain and/or increase sales of business units and products: market penetration, market development, product development, and diversification.


Product/Market Opportunity Matrix (1)Market

Product

New

Present

Present New

MarketPenetration Strategy

MarketDevelopment Strategy

ProductDevelopment Strategy

Diversification Strategy


Product/Market Opportunity Matrix (2)Market

Product

New

Present

Present New

Expand sales of present products in current market by pricing, promotion, and distribution strategies

Seek greater sales of present products from new markets or new uses

Develop new or modified products to appeal to present market

Develop new products aimed at new markets


DIVERSIFICATION In diversification, a firm becomes involved with new products aimed

at new markets. The products may be new to the industry or to the company. Distribution and promotion orientations are different from those traditionally used by the firm.

HORRIZONTALVERTICALCONCENTRICCONGLOMERATE


The Boston Consulting Group Matrix

The Boston Consulting Group matrix lets a firm classify each SBU in terms of market share relative to key competitors and annual industry growth.LINDELL SAY’S 10%a QUESTION MARK, A WILDCAT & A PROBLEM CHILD ARE THE SAME!!!!!!


Boston Consulting Group Matrix (1)

??

Relative Market Share

IndustryGrowthRate

High Low

Low

High


?

Relative Market Share

IndustryGrowthRate

H

H L

L

IntensifyMarketingEfforts toIncreaseShare

IntensifyMarketingEffortsor Leave Market

Use Profits to Aid Growing SBUs,Maintain Position

Reduce Efforts or Divest

Boston Consulting Group Matrix (1)


A dog is an SBU with limited sales (low market share) in a mature or declining industry (low growth). Make it prosper!!??


Invest in your people Do not price on the high end Stress quality Liberal terms of sale Strong warrentees Marketing person in charge A POSITIVE CASH GENERATOR reference Lindell’s Maytag example

The General Electric Business ScreenWHAT DO YOU DO WHEN YOU SEE A YELLOW LIGHT??!! .

The General Electric business screen categorizes SBUs and products in

terms of industry attractiveness and company business

strengths

Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2001

General Electric Business ScreenIndustry Attractiveness

Com

pany

Bus

ines

s St

reng

ths

Low

Medium

High

LowMediumHigh

Harvest/ Divest

Strategy

Selectivity/ Earnings Strategy

Invest/ Grow

Strategy


Cost Leadership

StrategyDifferentiation

Strategy

Cost Focus

Strategy

Differentiation Focus

Strategy

The Porter Generic Strategy Model

Competitive Advantage

Competitive Scope

Broad Target

Narrow Target

Lower Cost Differentiation


The Porter Generic Strategy Model Competitive scope (broad or narrow target).Competitive advantage (lower cost or differentiation)..

Cost leadership—broad market and low cost position.Differentiation—large market and unique strategy.. Focus—narrow target segment and either low cost position or a unique strategy.

Cost leadership and differentiation strategies are alternatives for large firms; a focus strategy is available to smaller firms.


Step Six in the Strategic Planning Process

6. Implementing Tactical Plans

A tactical plan specifies the short-run actions (tactics) that a firm undertakes in implementing a given marketing strategy. It has three basic elements:

• Specific Tasks

• Time Frame

• Resource Allocation

•Think of an ad campaign of 14 weeks or a six week new product introduction


Step Seven in the Strategic Planning Process

7. Monitoring

Results

Monitoring results compares the actual performance of a firm, SBU, or product against the planned performance for a specified period.

Successful companies often employ the following strategies to assure success:

• Continuous monitoring of performance

• Regular use of proper strategy adjustments

• Maintenance of a customer-oriented focus

• Stressing positive written and oral communication among employees and channel members.


Lindell’s

We defined strategic planning and considered its importance for marketing.

. We describes each of the steps in the strategic planning process.

We described how a strategic plan may be devised and planned.

We agressively applied SOA and SBU analysisExamples: Warner Lambert, Boeing, RCA

Summary


GO FOR IT! YOU ARE GROUP

PRODUCT MANAGER. NOW DO

YOUR THINK TO COMPLEMENT

THE OVERAL MISSION AND

GOALS OF YOUR ORGANIZATION.

OPPORTUNITY IS NOW HERE!!!

[email protected]

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