Strategic Marketing

Planning

managerial process of developing & maintaining

viable fit between the organization’s objectives, skills,
and resources and its changing market opportunities
in order to yield target profits and growth
 Strategic Marketing Planning
Business unit,
product,
Corporate level and market
level

Planning
Defining Setting Designing marketing
the company company the business and other
mission objectives portfolio functional
and goals strategies
Strategic Marketing Planning
Where are we now?
Strategic Marketing Analysis
Where do we want to be?
Strategic Direction and Strategy Implementation
How we might get there?
Strategic choice
Which way is best?
Strategic evaluation
How we can ensure arrival?
Strategic Implementation and control
The Strategic Marketing Process
Steps in the Planning Process

 Analyzing Market Opportunities (situational

analysis, SWOT)
 Developing Growth strategies
 SBU strategies (in case of several SBU’s)
 Developing Marketing Strategies (STP)
 Planning Marketing Programs (4-7P’s)
 Managing the Marketing Effort
 Annual-plan control
 Profitability control
 Strategy implementation control
 Market-Oriented Mission
 Who is the customer?
Mission statement
 What do the consumers value? =
 What is our business? Organization's purpose
 What should our business be? =
A direction for everyone

 IBM 10 years ago  IBM Today

 We sell computer  We deliver customer IT
hardware and software solutions
 Mission statements

 ‘To create the safest and most exciting car experience

for modern families’. ~ Volvo

 ‘We help people trade practically anything on earth. We

will continue to enhance the online trading experience
of all – collectors, dealers, small businesses, unique
item seekers, bargain hunters, opportunity sellers, and
browsers’. ~ eBay
Situational Analysis
Situational Analysis
Situational Analysis: Medical Waste
Demand
Customer Analysis
Stericycle Performance: 1997-
2000
 SWOT Analysis

Using SWOT analysis to monitor the internal and external

Figure 3.9
position of an organisation
SWOT Analysis
 Setting SMART Company’s
 objectives
SPECIFIC
 Objectives should specify what they want to achieve.
 MEASURABLE
 You should be able to measure whether you are meeting
the objectives or not.
 ACHIEVABLE
 Are the objectives you set, achievable and attainable?

 REALISTIC
 Can you realistically achieve the objectives with the
resources you have?
 TIME – SPECIFIC
 When do you want to achieve the set objectives?

To obtain 7% market share of the

mobile phone communications
market in Kazakhstan by the end
of 2009
Objectives
 To spend 12% of sales revenue between 2008 and 2009
on research and development in an effort to introduce at
least five new products in 2009.
 To obtain customer satisfaction rating of at least 90% on
the 2009 annual customer satisfaction survey, and to
retain at least 85% of 2009 customers as repeat
purchasers in 2010.
 To increase market share from 30% to 40% in 2009 by
increasing promotional expenditures by 14%.
 Strategy

the creation of unique and valuable

position involving different set of
activities
M. Porter

Game Plan
 The Strategic-Planning Gap

Figure 3.6 The strategic planning gap

 Product/Market Expansion Matrix
Existing New
Products Products

Existing Market Product

Markets Penetration Development

New Market Diversification

Markets Development
Product/Market Expansion Matrix
 Market Penetration
 More sales to current customers with current
product
 Open additional stores, increase product usage (buy
more often, buy more during each visit), improve
marketing mix program
 Market Development
 Developing new markets for current products
 Demographic (teens), geographic (Kyrgyzstan), online
(no boundaries)
 Product Development
 Modified or new product to current markets
 Improved formula of shampoo, Tide To Go, combined
products (2in1 and 3in1)
Product/Market Expansion Matrix
(Ansoff’s)
 Diversification
 New product to new customers
 Unrelated business to new target audience
 Downsizing
 Reducing the business portfolio by eliminating
products due to
 Change in market environment (e.g. new law,
economic recession, stronger competition)
 Lack of experience (result of diversification)
 Foreign markets failure
 Product failure
 Product death
Market penetration strategy
 Characteristics of SBUs

 It is a single business, or a collection of

related businesses, that can be planned
separately from the rest
 It has its own set of competitors.
 It has a manager responsible for strategic
planning and profit performance
Porter’s generic strategies

Overall cost Differentiatio

Focus
leadership n
 The Boston Consulting Group’s Growth-Share Matrix (BCG
Matrix)

$ size of
Current portfolio

Build
business

Build
analysis

Strategies
Hold/Build :
-Build
-Hold
-Harvest
Hold
Harvest -Divest
Harvest/Divest
 Relative market share
=0.5/0.8=0.63
•SBU’s Dollar sales/ #1
competitor Dollar Sales
•If your SBU is #1
=?
Divide SBU’s share on the
nearest competitor’s share
1.6/

SBU SBU’s Dollar sales of Market

top 3 (in growth rate
millions)

Dollar
sales (in
millions)
A .5 .8, .6, .5 15%
Marketing Strategies at functional
level
Segmentation

Targeting

Positioning

(STP or TMP)
 Tactical level: 7 Ps

 Product
 Place
 Price
 Promotion
 People
 Physical evidence
 Process
Stericycle Marketing Performance Plan
Figure 4-8:
McKinsey 7-S
Framework
 Objectives Development
   
Improve performance
         

         

 
Increase sales Improve productivity
         

         

 
Expand Increase Increase Reduce
market share margins costs
         

   New uses    Win share Change

      ·   Fixed cost
 

product-mix
   New    Buy share    Variable
users Source: Graham J. Hooley, John A. Saunders,    Increase
Nigel cost Strategy and
F. Piercy (1998), Marketing
Competitive    Increase
Positioning, Prentice Hall Europe,price
p.42.