Strategic Marketing PlanningCapturing the Big Picture

2

Chapter Objectives

• 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

3

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 haulIdentifies/builds on firm’s strengthsHelps managers make informed decisionsDevelops objectives before action is taken

4

3 Levels of Business Planning

• 1. Strategic planning by top-level corporate management

• 2. Functional planning by top functional-level management

• such as the chief marketing officer

• 3. Operational planning by supervisory managers

5

1. Strategic Planning

• Managerial decision process that matches firm’s resources & capabilities to its marketing opportunities for long-term growthTop management

• defines firm’s purpose and objectives Example: increase firm’s total revenues by

20% over next five years

6

2. Functional (Tactical) Planning

• by various functional areas of firm

• 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

7

3. Operational Planning

• First-line managers focus on day-to-day execution of functional plans

• includes detailed annual, semiannual, or quarterly plans

• Example: units of a product a salesperson needs to sell per

month

Business planning

steps

9

All Business Planning Is an Integrated Activity

• Strategic, functional, and operational plans must work together for benefit of whole firm

• must understand how they fit with the organization’s direction and

resources

10

Strategic Planning: Framing the Picture

• strategic business units (SBUs) divisions in Very large multiproduct firms

Individual units within the firm that operate like separate businesses with each having its own mission, business objectives, resources, managers, and competitors

• strategic planning done at both the corporate and SBU levels

11

Step 1: Define the Mission

• 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

12

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?

13

Step 1: Define the Mission

• Examples of mission statementsMADD: “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”

14

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

15

Internal Environment

• All controllable elements inside a firm that influence how well the firm operatesStrengths and weaknessesTechnologies, physical facilities, financial stability, corporate reputation, quality products, strong brands, employees

16

External Environment

• Elements outside the firm that may affect it either positively or negativelyOpportunities and threatsThe economy, competition, technology, law,

ethics, and sociocultural trendsFirm cannot directly control external factors

but can respond to them via planning

17

SWOT Analysis

• An analysis of an organization’s

• strengths (S) and

• weaknesses (W) and

• the opportunities (O) and

• threats (T)

• in the external environment

18

Step 3: Set Organizationalor SBU Objectives

• Long range goals

• specific, measurable, and attainable

• May relate to: sales, profitability, standing in market, return on investment, productivity, product development, customer satisfaction, social responsibility

19

Step 4: Establish the Business Portfolio

• definition:

• the group of different products or brands owned by an organization and having different income-generating and

growth capabilities

20

Step 4: Establish the Business Portfolio

• Portfolio analysis:

• assessing the potential of a firm’s strategic business unitsDecisions: which SBUs should receive more

or less of the firm’s resources

21

Step 5 : Growth Strategies

• Penetration

• Product development

• Market development

• Diversification

22

Step 5: Develop Growth Strategies

23

Which Growth

strategy is this

portraying?

Marketing planning

Steps

Cover on Friday

25

Marketing Planning: Step 1

• Perform a situation analysisBuilds on SWOT analysis about the environment

• that specifically affects the marketing plan

26

Marketing Planning: Step 2

• Set marketing objectivesSpecific 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

27

Marketing Planning: Step 3

• Develop marketing strategies to achieve marketing objectivesTarget market(s) where the firm’s offerings are best

suitedMarketing mix strategies: how marketing will

accomplish its objectives in the firm’s target market by using product, price, promotion, and place

28

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

29

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

30

Step 4: Implement & Controlthe Marketing Plan

• Control: measuring actual performance, comparing performance to the objectives, making adjustments

• Marketing metrics: return on marketing investment (ROMI)

31

Action Plans

• Support plans that guide implementation and control of marketing strategies

• Assign responsibility, time line, budget, measurement and control

32

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

33

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

34

The end

35

Real People, Real Choices

• NeoMedia Technologies (Rick Szatkowski)

• Rick choose option 2: leverage social networkingRick 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

36

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

37

Real People, Real Choices: Decision Time at Qode

• What go-to-market strategies should Qode execute? Option 1: partner with cell phone carriersOption 2: leverage social networkingOption 3: brand-driven distribution