Strategic  Marketing Planning Dr. Debbie Thorne McAlister  Your Marketing Plan
Learning Focus <ul><li>Process of marketing planning </li></ul><ul><li>Components of marketing plan </li></ul><ul><li>Purp...
Planning Can Be Like Boot Camp…You’ll Hate It. Only Later Will You Realize It Was Good for You --  and for Business.   Sou...
<ul><li>Detailed formulation of the actions needed to carry out the marketing program </li></ul><ul><li>An action document...
Two Purposes of Marketing Plan <ul><li>Align people and departments for the successful implementation of the plan </li></u...
Organizational Mission vs. Organizational Vision   (1 of 2) <ul><li>Elements of the Mission Statement </li></ul><ul><ul><l...
Organizational Mission vs. Organizational Vision   (2 of 2) <ul><li>Mission Width and Stability </li></ul><ul><ul><li>Widt...
<ul><li>Business-Unit Strategy: </li></ul><ul><ul><li>The central means for: </li></ul></ul><ul><ul><ul><li>Utilizing and ...
Exhibit 2.1
<ul><li>All business functions must support the organization’s mission and goals. </li></ul><ul><li>Functional objectives ...
<ul><li>Functional strategies are designed to integrate efforts focused on achieving the area’s stated objectives. </li></...
<ul><li>Involves activities that execute the functional strategy. </li></ul><ul><li>Functional plans have two target marke...
<ul><li>Designed to keep activities on target with goals and objectives </li></ul><ul><li>Coordination among functional ar...
<ul><li>A Market-Oriented Organization: </li></ul><ul><ul><li>Shifts its focus: </li></ul></ul><ul><ul><ul><li>From produc...
Principles of Marketing Planning <ul><li>Strategy first, operations second </li></ul><ul><li>Marketing is an attitude, not...
Delta Pull-Out Spray Faucet <ul><li>Delta Faucet Co. </li></ul><ul><li>Delta Pull-Out Spray Faucet helped push firm’s mark...
<ul><li>Should be well organized </li></ul><ul><li>A good marketing plan outline is: </li></ul><ul><ul><li>Comprehensive <...
Marketing Plan Structure Exhibit 2.3
<ul><li>I. Executive Summary </li></ul><ul><ul><li>Synopsis of the overall marketing plan </li></ul></ul><ul><ul><li>Intro...
<ul><li>III. SWOT Analysis </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><l...
<ul><li>IV. Marketing Goals and Objectives: </li></ul><ul><ul><li>Formal statements of desired and expected outcomes of th...
<ul><li>VI. Marketing Implementation </li></ul><ul><ul><li>1. What specific marketing activities will be undertaken? </li>...
<ul><li>Tips for using the marketing plan framework to develop a marketing plan: </li></ul><ul><ul><li>Plan ahead </li></u...
<ul><li>A good marketing plan will: </li></ul><ul><ul><li>(1) Explain both the present and future situations of </li></ul>...
Frequent Mistakes in the  Planning Process <ul><li>Speed and length of process </li></ul><ul><li>Amount of data </li></ul>...
Problems in Developing and Implementing the Marketing Plan Exhibit 2.4
How Do Employees Receive Guidance for Marketing and Branding? Verbal 37% Email/Phone no. link to central resource 13% Prin...
Nike’s Triax 250 Sport Watch Series <ul><li>Designer: Astro Studios and Nike </li></ul><ul><li>Nike’s first brand extensio...
Revising Hawaii’s Tourism Plan <ul><li>Governor Linda Lingle visited Japan to encourage tourism, down 30% after September ...
Product Failures: Remember These?
Why Does Planning Fail? <ul><li>The failure to have a plan, or to successfully communicate it to others.  </li></ul><ul><l...
How Marketing Strategy Affects Business Performance Share- holder Value Cash Flow  for Earnings Financial Performance Mark...
Linking Market-Based Assets to Shareholder Value <ul><li>Market Performance </li></ul><ul><li>Faster Market Penetration </...
Questions:  Why are many corporate icons having trouble?  Why are many jobs being lost?  Why are CEOs being fired? Answer:...
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All rights reserved. Debbie Thorne McAlister.

  1. 1. Strategic Marketing Planning Dr. Debbie Thorne McAlister Your Marketing Plan
  2. 2. Learning Focus <ul><li>Process of marketing planning </li></ul><ul><li>Components of marketing plan </li></ul><ul><li>Purposes and uses of marketing plan </li></ul><ul><li>Common mistakes in marketing planning </li></ul>
  3. 3. Planning Can Be Like Boot Camp…You’ll Hate It. Only Later Will You Realize It Was Good for You -- and for Business. Source: Leo Helzel and friends, A Goal is a Dream With a Deadline, 1995.
  4. 4. <ul><li>Detailed formulation of the actions needed to carry out the marketing program </li></ul><ul><li>An action document: </li></ul><ul><ul><li>The handbook for marketing implementation, evaluation and control </li></ul></ul><ul><li>Not the same as a business plan </li></ul><ul><li>Requires a great deal of information from many different sources </li></ul>The Marketing Plan
  5. 5. Two Purposes of Marketing Plan <ul><li>Align people and departments for the successful implementation of the plan </li></ul><ul><li>Gain support and budget necessary to implement the plan </li></ul>
  6. 6. Organizational Mission vs. Organizational Vision (1 of 2) <ul><li>Elements of the Mission Statement </li></ul><ul><ul><li>Five basic questions to be answered: </li></ul></ul><ul><ul><ul><li>Who are we? </li></ul></ul></ul><ul><ul><ul><li>Who are our customers? </li></ul></ul></ul><ul><ul><ul><li>What is our operating philosophy? </li></ul></ul></ul><ul><ul><ul><li>What are our core competencies or competitive advantages? </li></ul></ul></ul><ul><ul><ul><li>What are our concerns and interests related to our employees, our community, society in general and our environment? </li></ul></ul></ul>
  7. 7. Organizational Mission vs. Organizational Vision (2 of 2) <ul><li>Mission Width and Stability </li></ul><ul><ul><li>Width: Too broad or too narrow? </li></ul></ul><ul><ul><li>Stability: Frequency of modifications </li></ul></ul><ul><li>Customer-Focused Mission Statements </li></ul><ul><ul><li>Ben and Jerry’s 3-part Mission Statement </li></ul></ul><ul><ul><ul><li>Product Mission </li></ul></ul></ul><ul><ul><ul><li>Economic Mission </li></ul></ul></ul><ul><ul><ul><li>Social Mission </li></ul></ul></ul><ul><ul><li>Tylenol </li></ul></ul>
  8. 8. <ul><li>Business-Unit Strategy: </li></ul><ul><ul><li>The central means for: </li></ul></ul><ul><ul><ul><li>Utilizing and integrating the organization’s resources </li></ul></ul></ul><ul><ul><ul><li>Carrying out the organization’s mission </li></ul></ul></ul><ul><ul><ul><li>Achieving the organization’s desired goals and objectives </li></ul></ul></ul><ul><ul><li>Associated with developing a competitive advantage </li></ul></ul><ul><ul><li>Determines the nature and future direction of each business unit </li></ul></ul><ul><ul><li>Essentially the same as corporate strategy in small businesses </li></ul></ul>Corporate or Business-Unit Strategy
  9. 9. Exhibit 2.1
  10. 10. <ul><li>All business functions must support the organization’s mission and goals. </li></ul><ul><li>Functional objectives should be expressed in clear, simple terms. </li></ul><ul><li>All functional objectives should be reconsidered for each planning period. </li></ul>Functional Goals and Objectives
  11. 11. <ul><li>Functional strategies are designed to integrate efforts focused on achieving the area’s stated objectives. </li></ul><ul><li>The strategy must: </li></ul><ul><ul><li>(1) Fit the needs and purposes of the functional area </li></ul></ul><ul><ul><li>(2) Be realistic with the organization’s resources and </li></ul></ul><ul><ul><li> environment </li></ul></ul><ul><ul><li>(3) Be consistent with the organization’s mission </li></ul></ul><ul><ul><li> goals, and objectives. </li></ul></ul><ul><li>The effects of each functional strategy must be evaluated. </li></ul>Functional Strategy
  12. 12. <ul><li>Involves activities that execute the functional strategy. </li></ul><ul><li>Functional plans have two target markets: </li></ul><ul><ul><li>(1) External market </li></ul></ul><ul><ul><li>(2) Internal market </li></ul></ul><ul><li>A company must rely on its internal market for a functional strategy to be implemented successfully. </li></ul>Implementation
  13. 13. <ul><li>Designed to keep activities on target with goals and objectives </li></ul><ul><li>Coordination among functional areas is a critical issue </li></ul><ul><ul><li>Open lines of communication is the key </li></ul></ul><ul><li>Evaluation and control is both an ending and beginning: </li></ul><ul><ul><li>Occurs after a strategy has been implemented </li></ul></ul><ul><ul><li>Serves as the beginning point for planning in the next cycle </li></ul></ul>Evaluation and Control
  14. 14. <ul><li>A Market-Oriented Organization: </li></ul><ul><ul><li>Shifts its focus: </li></ul></ul><ul><ul><ul><li>From products to the requirements of market segments </li></ul></ul></ul><ul><ul><ul><li>From transactions to relationships </li></ul></ul></ul><ul><ul><ul><li>From competition to collaboration </li></ul></ul></ul><ul><ul><li>Puts customer’s needs and wants first </li></ul></ul><ul><ul><li>Focuses on long-term, value-added relationships </li></ul></ul><ul><ul><li>Instills a corporate culture that puts customers at the top of the organizational hierarchy </li></ul></ul><ul><ul><li>Cooperates with suppliers and competitors to serve customers better </li></ul></ul>Strategic Planning in the Market-Oriented Organization
  15. 15. Principles of Marketing Planning <ul><li>Strategy first, operations second </li></ul><ul><li>Marketing is an attitude, not a set of procedures </li></ul><ul><li>SWOT should be focused on critical customers and competitors </li></ul><ul><li>Make planning appropriate for culture and top management’s support </li></ul><ul><li>Create a rigorous marketing audit </li></ul>
  16. 16. Delta Pull-Out Spray Faucet <ul><li>Delta Faucet Co. </li></ul><ul><li>Delta Pull-Out Spray Faucet helped push firm’s market share in that category up from 1.6% to 23.2% in two years </li></ul><ul><li>$227.15 - $294.30 </li></ul>
  17. 17. <ul><li>Should be well organized </li></ul><ul><li>A good marketing plan outline is: </li></ul><ul><ul><li>Comprehensive </li></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>Consistent </li></ul></ul><ul><ul><li>Logical </li></ul></ul>Marketing Plan Structure (1 of 5)
  18. 18. Marketing Plan Structure Exhibit 2.3
  19. 19. <ul><li>I. Executive Summary </li></ul><ul><ul><li>Synopsis of the overall marketing plan </li></ul></ul><ul><ul><li>Introduces major aspects of the marketing plan </li></ul></ul><ul><li>II. Situation Analysis </li></ul><ul><ul><li>Summarizes information about 3 key environments: </li></ul></ul><ul><ul><ul><li>Internal environment </li></ul></ul></ul><ul><ul><ul><li>Customer environment </li></ul></ul></ul><ul><ul><ul><li>Firm’s external environment </li></ul></ul></ul>Marketing Plan Structure (2 of 5)
  20. 20. <ul><li>III. SWOT Analysis </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Threats </li></ul></ul><ul><ul><li>Analysis of the SWOT matrix </li></ul></ul><ul><ul><li>Establishing a strategic focus </li></ul></ul>Marketing Plan Structure (3 of 5)
  21. 21. <ul><li>IV. Marketing Goals and Objectives: </li></ul><ul><ul><li>Formal statements of desired and expected outcomes of the marketing plan </li></ul></ul><ul><ul><li>Goals: </li></ul></ul><ul><ul><ul><li>Broad, simple statements of what is to be accomplished </li></ul></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><ul><li>More specific and essential to planning </li></ul></ul></ul><ul><li>V. Marketing Strategy: </li></ul><ul><ul><li>Primary target market and marketing mix </li></ul></ul><ul><ul><li>Secondary target market and marketing mix </li></ul></ul>Marketing Plan Structure (4 of 5)
  22. 22. <ul><li>VI. Marketing Implementation </li></ul><ul><ul><li>1. What specific marketing activities will be undertaken? </li></ul></ul><ul><ul><li>2. How will these activities be performed? </li></ul></ul><ul><ul><li>3. When will these activities be performed? </li></ul></ul><ul><ul><li>4. Who is responsible for the completion of these activities? </li></ul></ul><ul><ul><li>5. How will the completion of planned activities be monitored? </li></ul></ul><ul><ul><li>6. How much will these activities cost? </li></ul></ul><ul><li>VII. Evaluation and Control </li></ul><ul><ul><li>Formal marketing control </li></ul></ul><ul><ul><li>Informal marketing control </li></ul></ul><ul><ul><li>Financial assessments </li></ul></ul>Marketing Plan Structure (5 of 5)
  23. 23. <ul><li>Tips for using the marketing plan framework to develop a marketing plan: </li></ul><ul><ul><li>Plan ahead </li></ul></ul><ul><ul><li>Revise, revise, revise </li></ul></ul><ul><ul><li>Be creative </li></ul></ul><ul><ul><li>Use common sense and judgment </li></ul></ul><ul><ul><li>Think ahead to implementation </li></ul></ul><ul><ul><li>Update regularly </li></ul></ul><ul><ul><li>Communicate with others </li></ul></ul>Using the Marketing Plan Structure
  24. 24. <ul><li>A good marketing plan will: </li></ul><ul><ul><li>(1) Explain both the present and future situations of </li></ul></ul><ul><ul><li> the organization </li></ul></ul><ul><ul><li>(2) Specify the outcomes that are expected </li></ul></ul><ul><ul><li>(3) Describe the specific actions that are to take place </li></ul></ul><ul><ul><li>(4) Identify the resources that will be needed </li></ul></ul><ul><ul><li>(5) Permit the monitoring of each action and its </li></ul></ul><ul><ul><li> results </li></ul></ul><ul><li>Communicating the strategy to top executives is paramount. </li></ul>Purposes and Significance of the Marketing Plan
  25. 25. Frequent Mistakes in the Planning Process <ul><li>Speed and length of process </li></ul><ul><li>Amount of data </li></ul><ul><li>Who develops the plan </li></ul><ul><li>Frequency of process </li></ul><ul><li>Who sees the plan </li></ul>
  26. 26. Problems in Developing and Implementing the Marketing Plan Exhibit 2.4
  27. 27. How Do Employees Receive Guidance for Marketing and Branding? Verbal 37% Email/Phone no. link to central resource 13% Printed 15% CD 3% Online (pdf) 5% Online (html) 6% Rely entirely on agency 19% Source: www.brandchannel.com
  28. 28. Nike’s Triax 250 Sport Watch Series <ul><li>Designer: Astro Studios and Nike </li></ul><ul><li>Nike’s first brand extension from running shoes into watches </li></ul><ul><li>Nike now sells nearly 2 million watches a year generating $100 million annually </li></ul><ul><li>$85 - $130 </li></ul>
  29. 29. Revising Hawaii’s Tourism Plan <ul><li>Governor Linda Lingle visited Japan to encourage tourism, down 30% after September 11, SARS, and Iraq. </li></ul><ul><li>One tactic related to the popularity of hula in Japan and Hawaii as its birthplace. </li></ul><ul><li>Island of Oahu was most affected by the downturn, since this is where many Japanese travel. </li></ul>
  30. 30. Product Failures: Remember These?
  31. 31. Why Does Planning Fail? <ul><li>The failure to have a plan, or to successfully communicate it to others. </li></ul><ul><li>Elevating the imperative to grow to a level that includes sacrificing differentiation and competitive advantage. </li></ul><ul><li>The failure to position the enterprise in the marketplace and establish a brand. </li></ul><ul><li>The failure to understand market saturation and the law of diminishing returns. </li></ul><ul><li>The failure to manage change. </li></ul><ul><li>The failure to have a contingency plan and to act upon it. </li></ul><ul><li>The failure of leadership to lead and make hard choices. </li></ul>Source: Strategic Chronicle , Summer 2003
  32. 32. How Marketing Strategy Affects Business Performance Share- holder Value Cash Flow for Earnings Financial Performance Market Performance (market share, revenue per customer) Customer Satisfaction, Retention, and Purchase Behavior Marketing Strategy and Strategy Implementation
  33. 33. Linking Market-Based Assets to Shareholder Value <ul><li>Market Performance </li></ul><ul><li>Faster Market Penetration </li></ul><ul><li>Faster Trial </li></ul><ul><li>Faster Adoption </li></ul><ul><li>Price Premium </li></ul><ul><li>Share Premium </li></ul><ul><li>Extensions </li></ul><ul><li>Loyalty </li></ul><ul><li>Market-Based Assets </li></ul><ul><li>Customer Relationships: </li></ul><ul><li>Brands </li></ul><ul><li>Partner Relationships: </li></ul><ul><li>Channels </li></ul><ul><li>Branding </li></ul><ul><li>Network </li></ul>Shareholder Value Accelerate Cash Flows Enhance Cash Flows Reduce Volatility and Vulnerability of Cash Flows Enhance Residual Value of Cash Flows
  34. 34. Questions: Why are many corporate icons having trouble? Why are many jobs being lost? Why are CEOs being fired? Answer: Bad strategy in an increasingly unforgiving and competitive marketplace. Source: Jack Trout, Capturing Mindshare, Conquering Markets , 2004 .

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