Strategic Marketing Planning Capturing the Big Picture.
-
Upload
abner-washington -
Category
Documents
-
view
217 -
download
0
Transcript of Strategic Marketing Planning Capturing the Big Picture.
2
Chapter Objectives
• Explain the strategic planning process
• Describe the steps in marketing planning
• Explain operational planning
• Explain the key role of implementation and control on marketing planning
• Discuss some of the important aspects of an organization’s internal environment
3
Business Planning:Composing the Big Picture
• Business planning: ongoing process of making decisions that guide the firm both in the short term and for the long haulIdentifies/builds on firm’s strengthsHelps managers make informed decisionsDevelops objectives before action is taken
4
3 Levels of Business Planning
• 1. Strategic planning by top-level corporate management
• 2. Functional planning by top functional-level management
• such as the chief marketing officer
• 3. Operational planning by supervisory managers
5
1. Strategic Planning
• Managerial decision process that matches firm’s resources & capabilities to its marketing opportunities for long-term growthTop management
• defines firm’s purpose and objectives Example: increase firm’s total revenues by
20% over next five years
6
2. Functional (Tactical) Planning
• by various functional areas of firm
• a broad 5-year plan to support strategic plan and a detailed
annual plan
• Example: to gain 40% of a particular market with three
new products during coming year
7
3. Operational Planning
• First-line managers focus on day-to-day execution of functional plans
• includes detailed annual, semiannual, or quarterly plans
• Example: units of a product a salesperson needs to sell per
month
9
All Business Planning Is an Integrated Activity
• Strategic, functional, and operational plans must work together for benefit of whole firm
• must understand how they fit with the organization’s direction and
resources
10
Strategic Planning: Framing the Picture
• strategic business units (SBUs) divisions in Very large multiproduct firms
Individual units within the firm that operate like separate businesses with each having its own mission, business objectives, resources, managers, and competitors
• strategic planning done at both the corporate and SBU levels
11
Step 1: Define the Mission
• Mission statement: a formal document that describes the organization’s overall purpose and what it hopes to achieve in terms of its customers, products, and resources
• Mission should not be too broad, too narrow, too shortsighted
12
Step 1: Define the Mission
• What business are we in?
•
• What customers should we serve?
• How do we develop firm’s capabilities & focus its efforts?
13
Step 1: Define the Mission
• Examples of mission statementsMADD: “to stop drunk driving, support the victims of
this violent crime, and prevent underage drinking”
NeoMedia Technologies: “provide ground-breaking new technologies to companies everywhere”
Xerox: provide “document solutions”
14
Step 2: Evaluate the Internal & External Environment
• Situational /environmental analysis (business review)Includes a discussion of firm’s internal
environment as well as the external environment
15
Internal Environment
• All controllable elements inside a firm that influence how well the firm operatesStrengths and weaknessesTechnologies, physical facilities, financial stability, corporate reputation, quality products, strong brands, employees
16
External Environment
• Elements outside the firm that may affect it either positively or negativelyOpportunities and threatsThe economy, competition, technology, law,
ethics, and sociocultural trendsFirm cannot directly control external factors
but can respond to them via planning
17
SWOT Analysis
• An analysis of an organization’s
• strengths (S) and
• weaknesses (W) and
• the opportunities (O) and
• threats (T)
• in the external environment
18
Step 3: Set Organizationalor SBU Objectives
• Long range goals
• specific, measurable, and attainable
• May relate to: sales, profitability, standing in market, return on investment, productivity, product development, customer satisfaction, social responsibility
19
Step 4: Establish the Business Portfolio
• definition:
• the group of different products or brands owned by an organization and having different income-generating and
growth capabilities
20
Step 4: Establish the Business Portfolio
• Portfolio analysis:
• assessing the potential of a firm’s strategic business unitsDecisions: which SBUs should receive more
or less of the firm’s resources
21
Step 5 : Growth Strategies
• Penetration
• Product development
• Market development
• Diversification
25
Marketing Planning: Step 1
• Perform a situation analysisBuilds on SWOT analysis about the environment
• that specifically affects the marketing plan
26
Marketing Planning: Step 2
• Set marketing objectivesSpecific to the firm’s brands, sizes, product
features, and other marketing mix-related elements
State what the marketing function must accomplish if firm is to achieve overall business objectives
27
Marketing Planning: Step 3
• Develop marketing strategies to achieve marketing objectivesTarget market(s) where the firm’s offerings are best
suitedMarketing mix strategies: how marketing will
accomplish its objectives in the firm’s target market by using product, price, promotion, and place
28
Marketing Mix Strategies
• Product strategies include product design, packaging, branding, support services, and product variations/features
• Pricing strategies include setting prices for final consumers, wholesalers, and retailers based on costs, demand, or competitors’ prices
29
Marketing Mix Strategies
• Promotion strategies: advertising, sales promotion, public relations, direct marketing, personal selling
• Distribution strategies: how, when, and where the product is available to targeted customers
30
Step 4: Implement & Controlthe Marketing Plan
• Control: measuring actual performance, comparing performance to the objectives, making adjustments
• Marketing metrics: return on marketing investment (ROMI)
31
Action Plans
• Support plans that guide implementation and control of marketing strategies
• Assign responsibility, time line, budget, measurement and control
32
Creating & Working with a Marketing Plan
• Written marketing plans encourage concrete objectives and strategies
• Operational plans focus on the day-to-day execution of the marketing plan
33
The Value of a Marketing Culture
• A firm’s corporate culture determines much of its internal environment – the values, norms, and beliefs that influence everyone in the firm
35
Real People, Real Choices
• NeoMedia Technologies (Rick Szatkowski)
• Rick choose option 2: leverage social networkingRick and his team are banking on early adopters to
energize the market for Qode and push the product rapidly through the adoption cycle to more users
36
Keeping It Real: Fast-Forward to Next Class Decision Time at Tupperware
• Meet Rick Goings, CEO of Tupperware Brands Corp.
• Tupperware: one of the most recognized brands world-wide
• The decision: How to refresh the Tupperware brand perception