Professional Documents
Culture Documents
PIERCY BRIGETTE
NICOULAUD
Strategic marketing
planning
6-2
Introduction
Companys capabilities are matched
to the market environment in which
it operates not for today but in
foreseeable future
Strategic planning attempts to
answer three basic questions
What is the business doing now?
What is happening in the environment?
What should the business be doing?
6-3
Figure 2.1
Strategic fit
Market needs &
conditions
Strategy adapted to
the needs and
requirements of the
market
Marketing
strategy
Organizational
resources suited to
the markets in which
it operates
Organizational
resources
Organizational resources
needed for implementation of
the strategy
6-4
6-5
Figure 2.2
Components of mission
Strategic intent
Strategic intent
Vision of what you want
Vision of what you want
to be
to be
Market
Market
definition
definition
Customer
Customer
targets
targets
Company values
Company values
Guiding
Guiding
principles
principles
Mission
Mission
Objectives and
Objectives and
strategy
strategy
Competitive
Competitive
positioning
positioning
Differential
Differential
advantage
advantage
Distinctive
Distinctive
competencies
competencies
Core skills
Core skills
6-7
Figure 2.3
Business
Business
purpose
purpose
Environment
Environment
analysis
analysis
Core
Core
strategy
strategy
Company
Company
analysis
analysis
Market
Markettarget
target
Competitive
Competitive
positioning
positioning
Competitive
Competitive
advantage
advantage
Control
Control
Implementation
Implementation
Organization
Organization
Marketing
Marketing
mix
mix
6-9
6-10
Analysis of organizational
resources
Creation of long list of resources and
many weaknesses that an
organization has at its disposal
They may stem from;
Skills of the workforce in assembling
products
Skills of management in planning
R&D department in new product ideas
Distinctive competencies may lie in
image, market presence or its 6-11
after
Product portfolio
DRUKERS SEVEN TYPES
OF BUSINESSES
6-12
Figure 2.4
Market
attractiveness
High
Tomorrow's
breadwinners
Developments
Sleepers
Ego trips
Life
Cycle
Death
Cycle
Low
Failures
Yesterdays
breadwinners
Todays
breadwinners
High
Business strength
Low
6-15
Portfolio planning
Diversified organizations need to find
methods for assessing the balance of
business in its portfolio
Development of business strategies and
allocation of resources (both managerial
and financial)
Analyzing portfolio balance
6-16
Figure 2.5
Products
Products that
that
generates
generates
cash
cash NOW
NOW
Other
Other that
that
use
use cash
cash now
now
but
but promise
promise
to
to generate
generate
cash
cash in
in the
the
FUTURE
FUTURE
6-17
Figure 2.6
Unbalanced, present-focused
business portfolio
A great present
but what about
the future?
Other
Other that
that
use
use cash
cash now
now
but
but promise
promise
to
to generate
generate
cash
cash in
in the
the
FUTURE
FUTURE
Products
Products that
that
generates
generates
cash
cash NOW
NOW
6-18
Figure 2.7
Products
Products that
that
generates
generates
cash
cash NOW
NOW
Other
Other that
that
use
use cash
cash now
now
but
but promise
promise
to
to generate
generate
cash
cash in
in the
the
FUTURE
FUTURE
6-19
6-20
Figure 2.8
S W O T An a l y s i s
Internal
Strengths
Strengths
Good
points
What
Whatare
arewe
wegood
goodat
at
relative
relativeto
tocompetitors?
competitors?
Weaknesses
Weaknesses
Danger
points
What
Whatare
arewe
webad
badat
at
relative
relativeto
tocompetitors?
competitors?
External
Opportunities
Opportunities
What
Whatchanges
changesare
are
creating
creatingnew
newoptions
optionsfor
for
us?
us?
Threats
Threats
What
Whatemerging
emergingdangers
dangers
must
mustwe
weavoid
avoidor
or
counter?
counter?
6-21
Figure 2.9
Strengths
Exploit
Exploitexisting
existing
strengths
strengthsin
inareas
areasof
of
opportunity
opportunity
Build
Buildnew
newstrengths
strengthsfirst
first
to
weaknesses
totake
takeadvantage
advantageof
of
opportunities
opportunities
Threats
Use
Useexisting
existingstrengths
strengthsto
to
counter
counterthreats
threats
Build
Buildnew
newstrengths
strengthsto
to
counter
counterthreats
threats
6-22
Core strategy
Define the key factors of success
Company sets its marketing objectives
Objectives should be both long and short
term
Core strategy varies at different stages of
product life cycle
Expand the market (achieved in early
growth stages of lifecycle) or to increase
share of existing market (pursued during
late growth/maturity stages
6-23
6-24
Figure 2.10
Strategic focus
Improve
Improve
performance
performance
Improve
Improve
productivity
productivity
Increase
Increasesales
sales
Expand
Expand
market
market
Increase
Increase
share.
share.
Expand
Expand
market
market
Increase
Increase
share.
share.
New uses
Win share
Increase price
Capital costs
New users
Acquire share
Add value
Fixed costs
Increasing use
frequently
Create
alliances
Change product
mix
Variable costs
New products
6-25
Increase share
Main routes to increasing share include;
Winning competitors, customers
Merging with (or acquiring) the
competitors
Entering into strategic alliances with
competitors, suppliers and/or
distributors
Increasing usage rate may be viable
approach to expanding the market for
some products
6-26
Improving profitability
Through improving margins
Increasing price, reducing cost or both
Removing poorly performing products
and concentrating on more financially
viable
6-27
Market targets
Select those targets most suited to
utilizing companys strengths and
minimizing vulnerability due to
weaknesses
6-28
Market targets
Market will generally be more
attractive if the following hold;
It is large
It is growing
Contribution margins are high
Competitive intensity and rivalry are low
There are high entry and low exit
barriers
The market is not vulnerable to
uncontrollable events
6-29
DIFFERENTIAL
ADVANTAGE
6-30
Cost leadership
Company seek to obtain a cost
structure significantly below than
that of competitor
Through construction of efficient scale
economies, cost minimization in R&D,
service, sales force, advertising etc
6-31
Figure 2.11
High
Competitive
advantage
Valued
uniqueness
St
Low
uc
in
th
id
dl
Competitive
disadvantage
High
Low
Differentiation
Something that is seen as a unique in
the market
Companys strengths and skills are
used to differentiate the companys
offerings than competitors
Differentiation can be achieved
through design, style, product or
service features, price, image etc
6-33
6-34
Implementation
Task of marketing management is to
implement those decisions through
marketing effort
Three basic elements of
implementation;
Marketing mix, organization and control
6-35
Marketing mix
Each of the element of the mix
should be designed to add up to the
positioning required
Where elements of the mix do not
pull in the same direction but
contradict each other, the positioning
achieved will be confused and
confusing to customers
6-36
Organization
How the marketing effort and the
marketing department are organized
will have effect on how well the
strategy can be can be carried
through
Required manpower and financial
resources to be made available
6-37
Control
Monitor and control the effort
Performance can be monitored in two
ways;
Market performance (sales, market
share, customer attitude and loyalty and
changes in them over time)
Financial performance ( monitoring of
product contribution relative to the
resources employed to achieve it)
6-38
6-39
Marketing metrics