Transcript BA 315 c 2 sup PPT

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
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 applied
We will focus on your responsibility as a product (middle
marketing) manager
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Strategic Planning is Critical
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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.
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The Strategic Planning Process
1.
Defining
Organizational
Mission
2.
Establishing
SBUs
7.
Monitoring
Results
Feedback
3.
Setting
Marketing
Objectives
6.
Implementing
Tactical
Plans
4.
Performing
Situation
Analysis
5.
Developing
Marketing
Strategy
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Step One in the
Strategic Planning Process
1.1.Defining
Define
Organizational
Organizational
Mission
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!!
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Step Two in the
Strategic Planning Process
First - STRATEGIC OPERATING
AREAS, then - STRATEGIC
BUSINESS UNITS
2.
Establishing
SOA’s & SBUs
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
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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.
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Step Four in the
Strategic Planning Process
The situation analysis
4.
Performing
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
Copyright Atomic Dog Publishing, 2002
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
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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.
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Product/Market Opportunity Matrix (1)
Market
Present
Present
Market
Penetration
Strategy
New
Market
Development
Strategy
Product
New
Product
Development
Strategy
Diversification
Strategy
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Product/Market Opportunity Matrix (2)
Market
Present
Present
Product
New
New
Expand sales of present Seek greater sales of
products in current
present products from
market by pricing,
new markets or new
promotion, and
uses
distribution strategies
Develop new or
modified products
to appeal to
present market
Develop new
products aimed
at new markets
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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.
HORRIZONTAL
VERTICAL
CONCENTRIC
CONGLOMERATE

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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!!!!!!
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Boston Consulting Group Matrix (1)
Relative Market Share
High
Industry
Growth
Rate
High
Low
??
Low
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Boston Consulting Group Matrix (1)
Relative Market Share
H
H
Industry
Growth
Rate
L
Intensify
Marketing
Efforts to
Increase
Share
Use Profits to
Aid Growing SBUs,
Maintain Position
L
Intensify
Marketing
Efforts
or Leave
Market
?
Reduce Efforts
or Divest
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A dog is an SBU with limited
sales (low market share) in a
mature or declining industry (low
growth). Make it prosper!!??
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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
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The General Electric
Business Screen
WHAT 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
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The Porter Generic Strategy Model
Competitive Advantage
Lower Cost
Broad Target
Cost
Leadership
Strategy
Narrow Target
Cost
Focus
Strategy
Differentiation
Differentiation
Strategy
Competitive
Scope
Differentiation
Focus
Strategy
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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.
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Step Seven in the
Strategic Planning Process
Monitoring results compares the actual
7.
Monitoring
Results
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.
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Lindell’s Summary
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 analysis
Examples: Warner Lambert, Boeing, RCA

Copyright Atomic Dog Publishing, 2002
Copyright Atomic Dog Publishing, 2002
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]

Copyright Atomic Dog Publishing, 2002