Transcript Chapter 2 - The Citadel

Strategic Marketing Planning
Capturing the Big Picture
Chapter Objectives
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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
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Real People, Real Choices:
Decision Time at Qode
• What go-to-market strategies should Qode
execute?
 Option 1: partner with cell phone carriers
 Option 2: leverage social networking
 Option 3: brand-driven distribution
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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 haul
 Identifies/builds on firm’s strengths
 Helps managers make informed decisions
 Develops objectives before action is taken
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Three Levels of Business Planning
• Strategic planning by top-level corporate
management
• Functional planning by top functional-level
management such as the chief marketing
officer
• Operational planning by supervisory
managers
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Strategic Planning
• Managerial decision process that matches
firm’s resources & capabilities to its
marketing opportunities for long-term
growth
 Top management defines firm’s purpose and
objectives
 Example: increase firm’s total revenues by 20% over
next five years
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Functional (Tactical) Planning
• Accomplished by various functional areas
of firm
• Typically includes 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
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Operational Planning
• First-line managers focus on day-to-day
execution of functional plans
• Such planning includes detailed annual,
semiannual, or quarterly plans
Example: units of a product a salesperson
needs to sell per month
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All Business Planning
Is an Integrated Activity
• Strategic, functional, and operational plans
must work together for benefit of whole
firm
• Marketers must fully understand how they
fit with the organization’s direction and
resources
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Strategic Planning: Framing the Picture
• Very large multiproduct firms have
divisions called strategic business units
(SBUs)
 Individual units within the firm that operate like
separate businesses with each having its own
mission, business objectives, resources, managers,
and competitors
• In these firms, strategic planning done at
both the corporate and SBU levels
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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?
• 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
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Step 1: Define the Mission
• Examples of mission statements
 MADD: “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”
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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
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Internal Environment
• All controllable elements inside a firm that
influence how well the firm operates
 Strengths and weaknesses
 Technologies, physical facilities, financial stability,
corporate reputation, quality products, strong brands,
employees
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External Environment
• Elements outside the firm that may affect it
either positively or negatively
 Opportunities and threats
 The economy, competition, technology, law, ethics,
and sociocultural trends
 Firm cannot directly control external factors but can
respond to them via planning
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SWOT Analysis
• An analysis of an organization’s strengths
(S) and weaknesses (W) and the
opportunities (O) and threats (T) in the
external environment
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Step 3: Set Organizational
or SBU Objectives
• What the firm hopes to accomplish with longrange business plan
• Need to be specific, measurable, and attainable
• May relate to sales, profitability, standing in
market, return on investment, productivity,
product development, customer satisfaction, and
social responsibility
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Step 4: Establish the Business Portfolio
• Business portfolio: the group of different
products or brands owned by an
organization and having different incomegenerating and growth capabilities
• Portfolio analysis: assessing the potential
of a firm’s strategic business units
 Helps decisions regarding which SBUs should receive
more or less of the firm’s resources
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Step 5: Develop Growth Strategies
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Marketing Planning: Step 1
• Perform a situation analysis
 Builds on SWOT analysis about the environment that
specifically affects the marketing plan
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Marketing Planning: Step 2
• Set marketing objectives
 Specific 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
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Marketing Planning: Step 3
• Develop marketing strategies to achieve
marketing objectives
 Target market(s) where the firm’s offerings are best
suited
 Marketing mix strategies: how marketing will
accomplish its objectives in the firm’s target market by
using product, price, promotion, and place
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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
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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
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Step 4: Implement & Control
the Marketing Plan
• Control: measuring actual performance,
comparing performance to the objectives,
making adjustments
• Marketing metrics: return on marketing
investment (ROMI)
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Action Plans
• Support plans that guide implementation
and control of marketing strategies
• Assign responsibility, time line, budget,
measurement and control
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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
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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
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Real People, Real Choices
• NeoMedia Technologies (Rick Szatkowski)
• Rick choose option 2: leverage social
networking
 Rick 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
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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
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