Transcript Marketing for MOST

Marketing for MOST
Module 03 - Market Oriented Strategic Planning
技術経営コンソーシアム
開発担当者 ：Ritsumeikan Asia Pacific University 教授: Takamoto, Akihiro
更新日 October, 2003
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Module 03: Market Oriented Strategic
Planning
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What is Market-Oriented Strategic Planning?
Defining the Mission of the Organisation
Analysing the Business Environment
Defining the Business Domain
Defining Objectives and Goals
Strategy Formulation
Program Formulation, Implementation, Evaluation
and Control
Oriental Philosophy of Strategy
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
What is Market Oriented Strategic
Planning
• Market oriented strategic planning is the
managerial process of developing and
maintaining a viable fit between the
organization’s objectives, skills, and
resources and its changing market
opportunities. The aim of strategic planning is
to shape and reshape the company's
businesses and products so that they yield
target profits and growth.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
What is Market Oriented Strategic
Planning
• Q1: Why is Market Oriented Strategic Planning
needed?
– Mega Competition
– Only the fittest survives
• Q2: What is the alternative to being ‘market
oriented’? What are the other things to which a
company can be oriented?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
What is Market-Oriented Strategic
Planning?
• Market Oriented Strategic Planning according
to MUANGSUWAN A-non.
Organization
Organization
Changing
Objectives
And
Resources
Customer
Needs
&
Wants
market
environment
Changing
Customer
Objectives
Needs
And
&
Resources
Wants
market
opportunity
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
• Ask:
–What is our business?
–Who is the customer?
–What do customers value?
–What should our business be?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
• A clear mission statement
acts as an “invisible hand”
that guides people in the
organisation.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
•
Good Mission Statements according
to P. Kotler:
1. Focus on a limited number of goals
2. Stress the major policies and values
3. Define the major competitive scopes
–
(industry, products, competence, market-segment,
vertical integration, geographical scope)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
• P. Kotler says:
– “Mission statements are at their
best when they are guided by a
vision, an almost impossible
dream that provides a direction
for the company for the next 10
to 20 years.”
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
An excellent mission statement has:
1. Uniqueness which the employees can
feel proud of.
2. A tangible quality to which the employees
can relate daily.
3. A reflection of the leadership vision.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
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Case 3-1: “Our Credo” by
Johnson and Johnson
Case 3-2: Mission
Statement of Starbucks
Case 3-3: Mission
Statement of the Japan
Industrial Daily.
Case 3-4: Mission
Statement of Kaiser Sand
and Gravel (see left)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
•
Concerning the Mission Statement by the Japan
Industrial Daily:
–
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I liked it;
I think people are a lot like water.
–
–
Dimitrova, Elitza
I realized how powerful and inspiring a good mission
statement could be. Thought I could not fully understand
the Japanese words, I felt the strength in it
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–
FUN, Yee Luh
Though it appeared philosophical, it was crystal clear and
struck my heart. Each and every line said what the firm
wanted to say. It is a fantastic mission statement.
–
DOGRA, Shinjani.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
• Exercise:
– Produce your own Mission Statements:
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For your Business / Project
For your Professional Ccareer
For your Life.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the mission of the
Organization
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My Mission Statement for Daily Life:
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Wake up early.
Get a good, healthy breakfast.
Get out.
The outside world is pretty tough.
But show a pretty face all the time.
Be positive
•
PERERA, Sumudu.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
Macro-Environment
Micro-Environment
Company
Internal
Environment
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
• Micro-Environment
– The forces close to the company that affect
its ability to serve its customers – the
company, suppliers, marketing channel
firms, customer markets, competitors, and
public.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
• Macro-Environment
– The Larger societal forces that affect the
microenvironment – demographic,
economic, natural, technological, political,
and cultural forces.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
• The Organisations Internal Environment:
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Top Management
Marketing
Finance
Accounting
R&D
Purchasing
Manufacturing
Distribution
Customer Relations
Human Resource Development
Corporate Culture
ETC…
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
• A Public:
– Any Group that has an actual or potential interest
in or impact on an organisation’s ability to achieve
its objectives.
• Demography:
– The study of human population in terms of size,
density, location, age, gender, race, occupation,
and other statistics.
• Compare:
– Psychographics:
• The study and classification of people according to their
attitudes, aspirations, etc, especially in market research.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Analysing the Business Environment
• Exercise:
– Do a SWOT Analysis of yourself at
APUBS
– Do a SWOT Analysis of any
organisation or team you now belong
to.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
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What is your business?
Who is the customer?
What is value to the customer?
What will be your business?
What should be your business?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
Product Oriented () vs. Market-Oriented() Definitions:
Company
• BMW
and Definitions of their Business
– A car maker ()
– “Frende am Fahren” ()
•
Dentsu
– Advertising Firm ()
– Communications Excellence ()
•
Sony
– Electronics manufacturer ()
– “Dreams come true” ()
•
Shiseido
– We sell cosmetics ()
– We offer lifestyle, health, hopes and dreams ()
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
Defining the Business à la D. Abell
(Your Customer) WHO?
Here is your Business!
How?
WHAT? (needs to be satisfied)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
Core Competence:
1. Is a source of Competitive Advantage
2. Has a potential breadth of applications
3. It is difficult for competitors to imitate
(C.K Prahalad & Gary Hamel)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
What is Marketing Myopia?
See Ref: What is Marketing Myopia
And also: Marketing Myopia – By Theodore Levitt
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining the Business Domain
What are the causes of Marketing Myopia?
• Misreading the customer want as their
need.
• Because of their product oriented definition
(perception) of their business – they are not
market oriented.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Defining Objectives and Goals
•
Some Managers use the term goals to describe
objectives that are specific with respect to
magnitude and time.
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How do you use the following terms:
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Aims, Goals, Objectives, Purposes?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
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The essence of strategy formulation is
coping with competition
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The state of competition in an industry
depends on five basic forces
…Michael E. Porter
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
Potential
Entrants
Threat of
New Entrants
Industry
Competitors
Buyers
Suppliers
Bargaining power of
suppliers
Rivalry Among
Existing Firms
Bargaining power of
buyers
Substitutes
The Five Forces governing competition in an Industry (Michael E. Porter)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
STRATEGIC ADVANTAGE
STRATEGIC TARGET
Uniqueness perceived
by the customer
Industry Wide
Particular Segment Only
Low Cost Position
OVERALL COST
LEADERSHIP
DIFFERENTIATION
FOCUS
Three Generic Strategies by Michael Porter
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
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Practice:
–
What do you think of
Michael Porters three Generic Strategies and five forces?
–
Do they help you sharpen your strategy?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
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By the Way, What is Strategy?
–
–
How about tactics?
According to the Concise Oxford Dictionary:
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Strategy = a plan of action or policy in business or politics etc.
Tactics = the plans and means adopted in carrying out a scheme or
achieving some end.
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Very Ambiguous!!!
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
•
How about:
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Strategy is concerned with broad and long-term policy
and direction.
Tactics are concerned with opportunism and day to day
conditions. The tactics have two purposes: to carry
forward the overall strategy and to respond to the situation
of the moment. The strategy is carried out by means of the
tactics.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
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Strategy is a deliberate search for a plan of action
that will develop a business’s competitive
advantage and compound it.
-o0oThe objective is to enlarge the scope of your
advantage, which can happen only at someone
else's expense.
(Bruce D. Henderson)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
•
“Some make the deep-seated error of
considering the physical conditions of a
country as the most important for its
inhabitants; whereas it cannot, I think, be
disputed that the nature of the other
inhabitants with which each has to compete
is generally a far more important element of
success.”
Charles Darwin.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
• Natural Competition is
evolutionary
• Strategic competition is
revolutionary
(Bruce D. Henderson)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Strategy Formulation
•
•
Case Study:
Napoleon succumbs to the strategy of Kutuzov
Napoleon’s retreat from Moscow portrayed by Ernest Meissonier (1815-91)
See Ref: napoleon.pdf
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Program Formulation, Implementation,
Evaluation and Control
•
Marketing Programs, and Action Plans
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What will be done ?
When will it be done ?
Who is responsible for doing it?
How much will it cost?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Program Formulation, Implementation,
Evaluation and Control
• Peter Drucker said:
– “Be effective rather than efficient”.
– Effectiveness means the ability to
get the right things done.
– Efficiency is the ability to do things
right.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Program Formulation, Implementation,
Evaluation and Control
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What is “McKinsey 7-S
framework?
–
Why is it so important?
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Program Formulation, Implementation,
Evaluation and Control
•
Marketing Control
– Marketing Control is the process of
measuring and evaluating the results of
marketing strategies and plans and taking
corrective action to ensure that marketing
objectives are achieved.
– Don’t forget contingency plans!
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
–
Strategic Philosphies of Sun Tzu
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Sun Tzu said: The art of war is of vital importance to the State. It
is a matter of life and death, a road to either safety or to ruin.
Hence it is a subject of inquiry, which can on no account be
neglected.
–
(Laying Plans, Sun Tzu)
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If you know the enemy and you know yourself, you need not fear
the result of a hundred battles.
–
(Attack by Stratagem, Sun Tzu)
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Marketing is the contemporary art of war.
–
(Aki Takamoto)
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
– Sun Tzu Said:
– “Water shapes its course according to the
nature of the ground over which it flows;
the soldier works out his victory in relation
to the foe whom he is facing. Therefore,
just as water retains no constant shape,
so in warfare there are no constant
conditions. (weak points and strong).
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
– Reminder:
•
There is no definite form for management
Act just like water,
Which follows the shape of any container,
While retaining the power to break down
a thousand feet high dam.
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
Marketing for MOST: Module 3 – Market Oriented Strategic Planning
Oriental Philosophy of Strategy
Sun Tzu Said:
– In the practical art of war, the best thing
of all is to take the enemy’s country whole
and intact; to shatter and destroy it is not
so good.
– Hence to fight and conquer in all your
battles is not supreme excellence;
supreme excellence consists in breaking
the enemy’s resistance without fighting.
–
(Attack by Stratagem)