Transcript Document

Chapter 4
Winning Markets Through
Strategic Planning,
Implementation,
and Control
PowerPoint by Karen E. James
Louisiana State University - Shreveport
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 0 in Chapter 4
Objectives
 Understand how strategic
planning is carried out at the
corporate, division, and
business unit levels.
 Learn the major steps in the
marketing process.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 1 in Chapter 4
Objectives
 Learn what type of content a
marketing plan includes.
 Understand how companies can
effectively manage the marketing
process.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 2 in Chapter 4
Nature of Strategic Planning
 Strategic planning requires actions
in three key areas
 Strategic planning takes place at
the corporate, division, business
unit and product levels
 Marketing plans operate at
strategic and tactical levels
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 3 in Chapter 4
Corporate and Division
Strategic Planning
 Planning activities include:
– Defining the Corporate Mission
– Establishing Strategic Business
Units (SBUs), and Assigning
Resources to SBUs
– Planning New Businesses,
Downsizing Older Businesses
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 4 in Chapter 4
Corporate and Division
Strategic Planning
Mission statements define the
company’s major competitive scopes:
 Industry scope
 Vertical scope
 Products and
applications scope
 Market-segment
scope
 Competence
scope
 Geographical
scope
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 5 in Chapter 4
Corporate and Division
Strategic Planning
 Strategic Business Units share
three characteristics:
– Single business or collection of
businesses which can be managed
separately
– Has own set of competitors
– Has manager responsible for
strategic planning and profits
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 6 in Chapter 4
Corporate and Division
Strategic Planning
 SBUs are treated as investment
portfolios. Resources are allocated by:
– The BCG Growth-Share Matrix
 Stars
 Cash
Cows
 Question Marks
 Dogs
– The General Electric Market-Attractiveness
Model
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 7 in Chapter 4
Corporate and Division
Strategic Planning
 Planning New Businesses and
Downsizing Old Businesses
– Involves taking advantage of one or
more of the following:
 Intensive
growth
 Integrative growth
 Diversification growth
 Harvesting or divesting old businesses
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 8 in Chapter 4
Business Strategic Planning
Planning Involves Eight Steps:
 Business Mission
 SWOT Analysis:
Internal
 SWOT Analysis:
External
 Goal Formulation
©2003 Prentice Hall, Inc.
 Strategy
Formulation
 Program
Formulation
 Implementation
 Feedback and
Control
To accompany A Framework for Marketing Management, 2nd Edition
Slide 9 in Chapter 4
Strategic Business Planning
SWOT Analysis
 Monitoring key
forces for trends
 Opportunities and
threats stemming
from the external
environment
 For each trend,
conduct an
MOA - Marketing
Opportunity
Analysis
 Internal strengths
and weaknesses
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 10 in Chapter 4
Strategic Business Planning
SWOT Analysis
 Brand awareness,
image, reputation
 Opportunities and
threats stemming
from the external
environment
 Distribution,
pricing, customer
loyalty, product
benefits
 Internal strengths
and weaknesses
 Finance, R&D,
manufacturing
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 11 in Chapter 4
Business Strategic Planning
 Effective goals should be
formulated so that they are:
– Arranged hierarchically from broader
to more specific objectives
– Stated in quantitative terms
– Realistic
– Consistent with each other and the
company mission
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 12 in Chapter 4
Business Strategic Planning
 Strategy dictates the game plan
for achieving goals. Porter’s
generic strategies offer a starting
point for strategic thinking:
– Overall cost leadership
– Differentiation
– Focus
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 13 in Chapter 4
Business Strategic Planning
 Program formulation and
implementation involves:
– Developing supporting programs
– Estimating implementation costs
– Carefully managing the details so
great strategy isn’t ruined by poor
implementation
 Feedback and control is crucial
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 14 in Chapter 4
The Marketing Process
 Two Views of the Value Delivery
Process:
– Traditional physical process sequence
 Make
the product . . . Sell the product
– Value creation and delivery sequence
 Choose
the value . . . Provide the value
. . . Communicate the value
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 15 in Chapter 4
The Marketing Process
 Steps in the Marketing Process:
– Analyzing market opportunities
– Developing marketing strategies
– Planning marketing programs
– Managing the marketing effort
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 16 in Chapter 4
The Marketing Process
Marketing Plan Contents
 Executive
summary and TOC
 Marketing
strategy
 Current situation
 Action programs
 Opportunity and
issue analysis
 Financial
projections
 Objectives
 Controls
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 17 in Chapter 4
Managing The Marketing Process
 Marketing Departments can be
organized by:
– Function
– Geographic area
– Products or brands
– Customers or markets
– Corporate divisions
– Global aspects
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 18 in Chapter 4
Managing The Marketing Process
 Building a Companywide Marketing
Orientation Requires:
– Commitment from top management
– Training programs; employee
empowerment
– Recognitions and rewards programs
– Modern marketing planning system
– Process-outcome focus
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 19 in Chapter 4
Managing The Marketing Process
 Injecting more creativity into the
organization can be beneficial
 Successfully implementing programs
requires four sets of skills:
– Diagnostic skills
– Identification of company level
– Implementation skills
– Evaluation skills
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 20 in Chapter 4
Managing The Marketing Process
Types of Control
 Annual plan
 Profitability
 Efficiency
 Strategic
©2003 Prentice Hall, Inc.
 Responsibility of
top and middle
management
 Examines
whether planned
results are
achieved
To accompany A Framework for Marketing Management, 2nd Edition
Slide 21 in Chapter 4
Managing The Marketing Process
 Five tools are used to evaluate
annual plan performance:
– Sales analysis
– Market-share analysis
– Marketing expense-to-sales analysis
– Financial analysis
– Market-based scorecard analysis
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 22 in Chapter 4
Managing The Marketing Process
Types of Control
 Annual plan
 Profitability
 Efficiency
 Strategic
©2003 Prentice Hall, Inc.
 Responsibility of
marketing
controller
 Examines where
the company is
making and
losing money
To accompany A Framework for Marketing Management, 2nd Edition
Slide 23 in Chapter 4
Managing The Marketing Process
Types of Control
 Annual plan
 Profitability
 Efficiency
 Strategic
©2003 Prentice Hall, Inc.
 Responsibility of
line & staff and / or
marketing
controller
 Evaluates and
attempts to
improve spending
efficiency of
marketing
expenditures
To accompany A Framework for Marketing Management, 2nd Edition
Slide 24 in Chapter 4
Managing The Marketing Process
Types of Control
 Annual plan
 Profitability
 Efficiency
 Strategic
©2003 Prentice Hall, Inc.
 Responsibility of
top management
and marketing
auditor
 Examines whether
company is
pursuing its best
opportunities
To accompany A Framework for Marketing Management, 2nd Edition
Slide 25 in Chapter 4
Managing The Marketing Process
 Strategic controls should be
conducted periodically via:
– Marketing-effectiveness reviews
– Marketing audits
 Additional reviews to consider:
– Marketing excellence review
– Ethical and social responsibility review
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 26 in Chapter 4