Winning Markets Through Strategic Planning, Implementation, and Control

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Winning Markets Through Strategic Planning, Implementation,
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Winning Markets Through Strategic Planning, Implementation, and Control

  1. 1. Chapter 4 Winning Markets Through Strategic Planning, Implementation, and Control PowerPoint by Karen E. James Louisiana State University - Shreveport
  2. 2. Objectives <ul><li>Understand how strategic planning is carried out at the corporate, division, and business unit levels. </li></ul><ul><li>Learn the major steps in the marketing process. </li></ul>
  3. 3. Objectives <ul><li>Learn what type of content a marketing plan includes. </li></ul><ul><li>Understand how companies can effectively manage the marketing process. </li></ul>
  4. 4. Nature of Strategic Planning <ul><li>Strategic planning requires actions in three key areas </li></ul><ul><li>Strategic planning takes place at the corporate, division, business unit and product levels </li></ul><ul><li>Marketing plans operate at strategic and tactical levels </li></ul>
  5. 5. Corporate and Division Strategic Planning <ul><li>Planning activities include: </li></ul><ul><ul><li>Defining the Corporate Mission </li></ul></ul><ul><ul><li>Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs </li></ul></ul><ul><ul><li>Planning New Businesses, Downsizing Older Businesses </li></ul></ul>
  6. 6. Corporate and Division Strategic Planning <ul><li>Industry scope </li></ul><ul><li>Products and applications scope </li></ul><ul><li>Competence scope </li></ul><ul><li>Vertical scope </li></ul><ul><li>Market-segment scope </li></ul><ul><li>Geographical scope </li></ul>Mission statements define the company’s major competitive scopes:
  7. 7. Corporate and Division Strategic Planning <ul><li>Strategic Business Units share three characteristics: </li></ul><ul><ul><li>Single business or collection of businesses which can be managed separately </li></ul></ul><ul><ul><li>Has own set of competitors </li></ul></ul><ul><ul><li>Has manager responsible for strategic planning and profits </li></ul></ul>
  8. 8. Corporate and Division Strategic Planning <ul><li>SBUs are treated as investment portfolios. Resources are allocated by: </li></ul><ul><ul><li>The BCG Growth-Share Matrix </li></ul></ul><ul><ul><ul><li>Stars </li></ul></ul></ul><ul><ul><ul><li>Cash Cows </li></ul></ul></ul><ul><ul><ul><li>Question Marks </li></ul></ul></ul><ul><ul><ul><li>Dogs </li></ul></ul></ul><ul><ul><li>The General Electric Market-Attractiveness Model </li></ul></ul>
  9. 9. Corporate and Division Strategic Planning <ul><li>Planning New Businesses and Downsizing Old Businesses </li></ul><ul><ul><li>Involves taking advantage of one or more of the following: </li></ul></ul><ul><ul><ul><li>Intensive growth </li></ul></ul></ul><ul><ul><ul><li>Integrative growth </li></ul></ul></ul><ul><ul><ul><li>Diversification growth </li></ul></ul></ul><ul><ul><ul><li>Harvesting or divesting old businesses </li></ul></ul></ul>
  10. 10. Business Strategic Planning <ul><li>Business Mission </li></ul><ul><li>SWOT Analysis: Internal </li></ul><ul><li>SWOT Analysis: External </li></ul><ul><li>Goal Formulation </li></ul><ul><li>Strategy Formulation </li></ul><ul><li>Program Formulation </li></ul><ul><li>Implementation </li></ul><ul><li>Feedback and Control </li></ul>Planning Involves Eight Steps:
  11. 11. Strategic Business Planning <ul><li>SWOT Analysis </li></ul><ul><li>Opportunities and threats stemming from the external environment </li></ul><ul><li>Internal strengths and weaknesses </li></ul><ul><li>Monitoring key forces for trends </li></ul><ul><li>For each trend, conduct an MOA - Marketing Opportunity Analysis </li></ul>
  12. 12. Strategic Business Planning <ul><li>SWOT Analysis </li></ul><ul><li>Opportunities and threats stemming from the external environment </li></ul><ul><li>Internal strengths and weaknesses </li></ul><ul><li>Brand awareness, image, reputation </li></ul><ul><li>Distribution, pricing, customer loyalty, product benefits </li></ul><ul><li>Finance, R&D, manufacturing </li></ul>
  13. 13. Business Strategic Planning <ul><li>Effective goals should be formulated so that they are: </li></ul><ul><ul><li>Arranged hierarchically from broader to more specific objectives </li></ul></ul><ul><ul><li>Stated in quantitative terms </li></ul></ul><ul><ul><li>Realistic </li></ul></ul><ul><ul><li>Consistent with each other and the company mission </li></ul></ul>
  14. 14. Business Strategic Planning <ul><li>Strategy dictates the game plan for achieving goals. Porter’s generic strategies offer a starting point for strategic thinking: </li></ul><ul><ul><li>Overall cost leadership </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Focus </li></ul></ul>
  15. 15. Business Strategic Planning <ul><li>Program formulation and implementation involves: </li></ul><ul><ul><li>Developing supporting programs </li></ul></ul><ul><ul><li>Estimating implementation costs </li></ul></ul><ul><ul><li>Carefully managing the details so great strategy isn’t ruined by poor implementation </li></ul></ul><ul><li>Feedback and control is crucial </li></ul>
  16. 16. The Marketing Process <ul><li>Two Views of the Value Delivery Process: </li></ul><ul><ul><li>Traditional physical process sequence </li></ul></ul><ul><ul><ul><li>Make the product . . . Sell the product </li></ul></ul></ul><ul><ul><li>Value creation and delivery sequence </li></ul></ul><ul><ul><ul><li>Choose the value . . . Provide the value . . . Communicate the value </li></ul></ul></ul>
  17. 17. The Marketing Process <ul><li>Steps in the Marketing Process: </li></ul><ul><ul><li>Analyzing market opportunities </li></ul></ul><ul><ul><li>Developing marketing strategies </li></ul></ul><ul><ul><li>Planning marketing programs </li></ul></ul><ul><ul><li>Managing the marketing effort </li></ul></ul>
  18. 18. The Marketing Process <ul><li>Executive summary and TOC </li></ul><ul><li>Current situation </li></ul><ul><li>Opportunity and issue analysis </li></ul><ul><li>Objectives </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Action programs </li></ul><ul><li>Financial projections </li></ul><ul><li>Controls </li></ul>Marketing Plan Contents
  19. 19. Managing The Marketing Process <ul><li>Marketing Departments can be organized by: </li></ul><ul><ul><li>Function </li></ul></ul><ul><ul><li>Geographic area </li></ul></ul><ul><ul><li>Products or brands </li></ul></ul><ul><ul><li>Customers or markets </li></ul></ul><ul><ul><li>Corporate divisions </li></ul></ul><ul><ul><li>Global aspects </li></ul></ul>
  20. 20. Managing The Marketing Process <ul><li>Building a Companywide Marketing Orientation Requires: </li></ul><ul><ul><li>Commitment from top management </li></ul></ul><ul><ul><li>Training programs; employee empowerment </li></ul></ul><ul><ul><li>Recognitions and rewards programs </li></ul></ul><ul><ul><li>Modern marketing planning system </li></ul></ul><ul><ul><li>Process-outcome focus </li></ul></ul>
  21. 21. Managing The Marketing Process <ul><li>Injecting more creativity into the organization can be beneficial </li></ul><ul><li>Successfully implementing programs requires four sets of skills: </li></ul><ul><ul><li>Diagnostic skills </li></ul></ul><ul><ul><li>Identification of company level </li></ul></ul><ul><ul><li>Implementation skills </li></ul></ul><ul><ul><li>Evaluation skills </li></ul></ul>
  22. 22. Managing The Marketing Process <ul><li>Types of Control </li></ul><ul><li>Annual plan </li></ul><ul><li>Profitability </li></ul><ul><li>Efficiency </li></ul><ul><li>Strategic </li></ul><ul><li>Responsibility of top and middle management </li></ul><ul><li>Examines whether planned results are achieved </li></ul>
  23. 23. Managing The Marketing Process <ul><li>Five tools are used to evaluate annual plan performance: </li></ul><ul><ul><li>Sales analysis </li></ul></ul><ul><ul><li>Market-share analysis </li></ul></ul><ul><ul><li>Marketing expense-to-sales analysis </li></ul></ul><ul><ul><li>Financial analysis </li></ul></ul><ul><ul><li>Market-based scorecard analysis </li></ul></ul>
  24. 24. Managing The Marketing Process <ul><li>Types of Control </li></ul><ul><li>Annual plan </li></ul><ul><li>Profitability </li></ul><ul><li>Efficiency </li></ul><ul><li>Strategic </li></ul><ul><li>Responsibility of marketing controller </li></ul><ul><li>Examines where the company is making and losing money </li></ul>
  25. 25. Managing The Marketing Process <ul><li>Types of Control </li></ul><ul><li>Annual plan </li></ul><ul><li>Profitability </li></ul><ul><li>Efficiency </li></ul><ul><li>Strategic </li></ul><ul><li>Responsibility of line & staff and / or marketing controller </li></ul><ul><li>Evaluates and attempts to improve spending efficiency of marketing expenditures </li></ul>
  26. 26. Managing The Marketing Process <ul><li>Types of Control </li></ul><ul><li>Annual plan </li></ul><ul><li>Profitability </li></ul><ul><li>Efficiency </li></ul><ul><li>Strategic </li></ul><ul><li>Responsibility of top management and marketing auditor </li></ul><ul><li>Examines whether company is pursuing its best opportunities </li></ul>
  27. 27. Managing The Marketing Process <ul><li>Strategic controls should be conducted periodically via: </li></ul><ul><ul><li>Marketing-effectiveness reviews </li></ul></ul><ul><ul><li>Marketing audits </li></ul></ul><ul><li>Additional reviews to consider: </li></ul><ul><ul><li>Marketing excellence review </li></ul></ul><ul><ul><li>Ethical and social responsibility review </li></ul></ul>

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