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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
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Strategic Planning is Critical 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.
Copyright Atomic Dog Publishing, 2002
The Strategic Planning Process
1. Defining
Organizational Mission
2. Establishing
SBUs
3. Setting
Marketing Objectives
4.
Performing Situation Analysis
5. Developing Marketing Strategy
6. Implementing
Tactical Plans
7. Monitoring
Results
Feedback
Copyright Atomic Dog Publishing, 2002
Step One in the Strategic Planning Process
1. Define Organizational
Mission
1. Defining Organizational
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!!
Copyright Atomic Dog Publishing, 2002
Step Two in the Strategic Planning Process
2. Establishing
SOA’s & SBUs
First - STRATEGIC OPERATING AREAS, then - STRATEGIC BUSINESS UNITS
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
Copyright Atomic Dog Publishing, 2002
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.
Copyright Atomic Dog Publishing, 2002
Step Four in the Strategic Planning Process
4. Performing Situation
Analysis
The 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 position.
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
Copyright Atomic Dog Publishing, 2002
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.
Copyright Atomic Dog Publishing, 2002
Product/Market Opportunity Matrix (1)
Market
Product
New
Present
Present New
MarketPenetration Strategy
MarketDevelopment Strategy
ProductDevelopment Strategy
Diversification Strategy
Copyright Atomic Dog Publishing, 2002
Product/Market Opportunity Matrix (2)
Market
Product
New
Present
Present New
Expand sales of present products in current market by pricing, promotion, and distribution strategies
Seek greater sales of present products from new markets or new uses
Develop new or modified products to appeal to present market
Develop new products aimed at new markets
Copyright Atomic Dog Publishing, 2002
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.
HORRIZONTALVERTICALCONCENTRICCONGLOMERATE
Copyright Atomic Dog Publishing, 2002
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!!!!!!
Copyright Atomic Dog Publishing, 2002
Boston Consulting Group Matrix (1)
??
Relative Market Share
IndustryGrowthRate
High Low
Low
High
Copyright Atomic Dog Publishing, 2002
?
Relative Market Share
IndustryGrowthRate
H
H L
L
IntensifyMarketingEfforts toIncreaseShare
IntensifyMarketingEffortsor Leave Market
Use Profits to Aid Growing SBUs,Maintain Position
Reduce Efforts or Divest
Boston Consulting Group Matrix (1)
Copyright Atomic Dog Publishing, 2002
A dog is an SBU with limited sales (low market share) in a mature or declining industry (low growth). Make it prosper!!??
Copyright Atomic Dog Publishing, 2002
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
The General Electric Business ScreenWHAT 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
Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2001
General Electric Business ScreenIndustry Attractiveness
Co
mp
an
y B
us
ine
ss
Str
en
gth
s
Low
Medium
High
LowMediumHigh
Harvest/ Divest
Strategy
Selectivity/ Earnings Strategy
Invest/ Grow
Strategy
Copyright Atomic Dog Publishing, 2002
Cost Leadership
Strategy
Differentiation Strategy
Cost Focus
Strategy
Differentiation Focus
Strategy
The Porter Generic Strategy Model
Competitive Advantage
Competitive Scope
Broad Target
Narrow Target
Lower Cost Differentiation
Copyright Atomic Dog Publishing, 2002
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
7. Monitoring
Results
Monitoring results compares the actual 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.
Copyright Atomic Dog Publishing, 2002
Lindell’s
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
Summary
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!!!