Discription of the management functions in strategic marketing

1. Strategic Marketing
2. Management of Strategic Marketing

2. Questions
Strategic marketing planning: mission, objectives,
system of balanced indicators
Strategic marketing organization: centralization vs.
decentralization
Coordination and inter-relationship within strategic
marketing: inner marketing
Strategic marketing control: what demands the
successful marketing strategy can satisfy

3. What do we need strategic marketing planning for?
 Planning helps to determine the competitive advantages
 Planning helps to build up the relationships with the clients
 Planning helps to find out and require the resources from top
management
 Planning helps to declare the main objectives to the co-workers
and employees
 Planning helps to optimize business /brand/product/segment
portfolio

4. Marketing planning (M. McDonald)
1. Mission and objectives of the
company
2. Objectives of business (sub)-divisions
3. Marketing audit
4. SWOT analysis
5. Propositions and suppositions
6. Aims and marketing strategies
7. Expected results
8. Alternative plans and abilities
9. Budgeting
10The detailed plan and its first-year
implementation
Estimation
and control

5. Tactics in strategic marketing implementation
Strategic marketing – process of analysis
• elaboration of mission and goals of
enterprise or business division
• determination of target markets and
analysis of market possibilities
• elaboration of competitive strategies for
target markets
• setting of marketing goals and strategies
regarding the target markets
• elaboration of target markets
segmentation strategies
• preparation of positioning per target
segments concepts
• preparation of strategic decisions on
marketing complex elements
• predictive assessment of results
Operational marketing – active
process
• setting of tactic
marketing goals
• planning of detailed
marketing activities
regarding the target
segments for the
current year
• budget planning of
marketing activities
• planned activities
realization
• control of achieved
results

6. Concept of company’s mission
The company’s goal-oriented tasks
The company’s activity scope
The company’s philosophy
Opportunities, abilities, competitive advantages of the
company

7. CSR – the concept of corporate
social responsibility in mission
 Level I – we help others in solving their social
problems
 Level II – we produce “socially-friendly”
products
 Level III – we help others to produce
“socially-friendly” products

9. The examples of Strategic Goals
 Specific
 Measurable
 Achievable
 Realistic
 Time constrained
 Increasing the market share
 Product quality improvement
 Decreasing the costs of
production in comparison with
the main competitors
 Improving the assortment of
products
 Increasing the company’s
reputation among clients
 Improving the service
 Increasing competitiveness
 Increasing growth possibilities
 Increasing the level of
customers’ satisfaction

10. BSC – Balanced Scorecard (The System
of Balanced Score)
 The concept of management of strategy
implementation developed by David Norton and
Bob Kaplan
 provides monitoring of the enterprise’ activity
 allows to forecast problems’ emergence
 combines strategy and tactics
 controls the most important both financial and
non-financial Key Performance Indicators (KPI)

11. To implement BSC - What is needed to
develop in the company?
 The system of management accounting
 strategic goals and the ways of their achievement
 KPI (in terms of criteria and units of account definition)
 The employees competencies, motivation
 The necessary resources for strategic development
 The control of key indicators’ performance

12. The Elements of BSC (the System of
Balanced Score)
The functional course of the company’s activity
Strategic goals, implied by the overall
company’s strategy
Measurers – indicators reflecting the level of the
goals achievement
Operational goals
Initiatives – activities designed to achieve the
already set goals

13. Goals in the Functional Course
Finance – what is our value for shareholders and
customers?
Clients – what opinion are we to form of us?
Internal processes – what processes are we to
improve to satisfy the interests of our shareholders
and clients?
Learning and growth – Are there any development,
motivation and growth programs?

14. A sample list of measurers
Finance
Clients/
marketing
Internal
processes
Learning
and growth
gross margin, return on assets, net margin, sales growth,
cost reduction targets, liquidity, shares value, cost-
effectiveness, ROI
customer loyalty, customer satisfaction, level of market
coverage, market/segment share, cost per customer,
customer value, quantity of complaints, number of clients
/new clients, of lost customers, customer retention,
percentage of repeat sales, brand awareness measures
delivery in full, order fulfillment cycle time, efficiency of
information system, risk measures, capacity utilization
rate, first contact resolution, project cost variance
Revenue per employee, added value per employee,
training cost per employee, competencies measures,
employee satisfaction index, employee turnover rate

15. The Structure of BSC
Client: the position of the company
from the client’s viewpoint
 Strategic goal: image-making of the
company as an innovator
 Indicator/Measurer: the level of renewal of
product line / assortment
 Planned value: 50% per year
 Initiatives: the renewal of the assortment in product line “A” – at
least 60%

16. The goals of an enterprise oriented
at:
Growth
 Whole sales volume
increase
 Enlargement of recurrent
market share
 New markets exploration
Placement strengthening,
stabilization
 Net profit growth
increase
 Product quality
improvement
 Increasing the share of
services and
accompanying goods

17. The directions of marketers’ work on the company’s
development (Nirmalya Kumar, London Business
School)
 Top Managers
 Organize and
support marketing
initiatives
 Defend the
customers’ interests
 Take control over
quality
 Marketers
 Deal with strategic
issues
 Interact with various
divisions and
departments of the
enterprise
 Practice net-profit-
oriented approach

18. Let’s get organized!
Management Structure with the sharp division
between sales’ and marketing functions
General Director
Deputy
Director on
Finance
Deputy
Director on
Sales
Deputy
Director on
Marketing
Deputy
Director on
Manufacturing
and
Operational
Process

19. Management structure with the leading
marketing role
General Director
Finance
Director
Sales and
Supplies
Director
Marketing
Director
Manufacturing
and
Operational
Process
Director
Top Manager
of Sales and
Supplies
Department
Top Manager
of Marketing
Department
Vice-President on Marketing

20. Centralization vs De-Centralization
 Advantages (Pros)
of centralization
?
 Disadvantages
(Cons) of
centralization
?
 Advantages (Pros)
of de-centralization
?
 Disadvantages
(Cons) of de-
centralization
?

21. William C. Weldon –
the Chairperson of J&J
 “De-centralized management is a nice way of searching for
innovations and training corporate leaders”
 “We possess more than 200 manufacturing firms; so we need
more than 200 great leaders”
 “De-centralized approach encourages innovations, it allows
people with different skills and different ideas take a try of
various products and technologies with the aim of satisfying
the hidden needs of patients and clients”
 De-centralization also helps in international transactions

22. How to organize and get organized?
 Top-management
 To understand and use
the concept of strategic
marketing
 To study and to practise
new methods of
designation and
implementation of
marketing strategies
 To follow the already set
tasks in terms of
marketing strategy
 Middle management
 To clarify the strategic
goals and make clear the
strategic tasks
 To educate and put
forward the ideas of
Strategic Marketing
Planning (SMP)
 To delegate powers to
SMP adherers
 To make use of the system
of stimulation for the
successful implementation
of marketing strategies

23. The internal client + the external
client?
Types of interaction of internal and external
company’s clients
 Synergy - internal clients  external clients 
 Alienation - internal clients  external clients 
 Enforcement - internal clients  external clients 
 Inner euphoria - internal clients  external clients 

24. What Internal Marketing is
Marketing approach usage towards
employees
Building-up, stimulation and coordination the
personnel for effective application of corporate and
marketing strategies
The purpose is customers’ satisfaction
through the process of interaction with the
motivated and client-oriented personnel

25. Internal marketing tasks
 Collecting information about the staff work and
their relationship with the customers
 Defining the needs of internal clients
 Applying the idea of client-oriented policy
 Training the personnel to manage non-stardard
situations with the clients
 Interfunctional cooperation
 Clever staffing formation policy

26. The results of inner marketing
(KPI)
 Staff satisfaction
 The high standards of clients’ servicing inside the
company
 Marketing-oriented personnel
 The company’s and production image among the
personnel

27. Personnel Loyalty
Adaptation – loyalty
is absent
Initial loyalty – the
employee does not feel
part of the company yet
Sense of affiliation (belonging to
the company) – the employee is
an active participant, works really
hard and is able to take personal
decision in strategy
True loyalty – the
employee plays the key
role in the company and
feels its integral part

28. Let’s take control!
Trends
 The process of marketing strategies
development
 The components/elements of marketing
strategies
 The results of marketing strategies
implementation (marketing auditing)

29. Designing strategic marketing plan let’s pay
attention to
 Balance and conformity of the long-term and short-
term marketing goals
 Analysis of the reasons for the previous success and
/ failure (UPS AND DOWNS)
 Balance between numerical and explanatory
information
 Working-out of marketing KPI

30. In the final plan the following is
obligatory
Clear goals’ and tasks’ definition
Supply specification
SWOT applicability
The ways to lower risks
Uniqueness / Originality
Tactics evidence
Resources in accordance with the importance
Analytics!

31. We have developed – now we implement
– and evaluate!
 Controlling KPI
 Correcting
 Depending on / Against external factors
alteration
 Depending on / Against internal factors
alteration