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• Explain strategic planning process
• Identify what is necessary to effectively manage the
implementation of marketing strategies
• Describe the four major elements of strategic
performance evaluation
• Describe the development of a marketing plan
OBJECTIVES
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3. • All organizations must be able to create customer value and achieve its
goals. This occurs through successful strategic marketing management.
• Strategic marketing management is the process of planning,
implementing, and evaluating the performance of marketing activities
and strategies, both effectively and efficiently
STRATEGIC MARKETING MANAGEMENT
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5. • Effectiveness is the degree to which long-term customer relationships
help achieve an organization’s objectives.
• Efficiency refers to minimizing the resources an organization uses to
achieve a specific level of desired customer relationships.
• Thus, the overall goal of strategic marketing management is to facilitate
highly desirable customer relationships and to minimize the cost of doing
so.
EFFECTIVENESS AND EFFICIENCY
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6. • Strategic Planning is the process of
establishing an organizational
mission and formulating goals,
corporate objectives, and
marketing strategy.
• A market orientation should guide
the process of strategic planning to
ensure that a concern for customer
satisfaction is an integral part of the
entire company, leading to the
development of successful
marketing strategies and planning
processes.
THE STRATEGIC PLANNING PROCESS
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7. • The strategic planning process begins with the establishment or revision
of an organization’s mission and goals.
• The corporation and individual business units then develop strategies to
achieve these goals.
• The company performs a detailed analysis of its strengths and
weaknesses and identifies opportunities and threats within the external
marketing environment.
• Next, each functional area of the organization (marketing, production,
finance, human resources, and so forth) establishes its own objectives
and develops strategies to achieve them, which must support the
organization’s overall goals and mission and should be focused on
marketing orientation.
THE STRATEGIC PLANNING PROCESS
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8. • After an organization has assessed its
resources and opportunities, it can begin
to establish goals and strategies to
leverage them.
• The goals of any organization should
derive from its mission statement, a long-
term view or vision of what the
organization wants to become.
• When an organization decides on its
mission, it is answering two questions:
“Who are our customers?” And “What is
our core competency?”
• ex. Starbucks’ mission statement – “to
inspire and nurture the human spirit – one
cup and one neighborhood at a time”
ESTABLISHING ORGANIZATIONAL MISSION
STATEMENTS AND GOALS
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9. • In most organizations, strategic planning begins at the corporate level
and proceeds downward to the business and marketing levels.
• However, organizations are increasingly developing strategies and
conducting strategic planning that moves in both directions.
DEVELOPING CORPORATE AND BUSINESS-UNIT
STRATEGIES
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10. • Corporate strategy determines the means for utilizing resources in the
functional areas of marketing, production, finance, research and
development, and human resources to achieve the organization’s goals.
• A corporate strategy outlines the scope of the business and such
considerations as resource deployment, competitive advantages, and
overall coordination of functional areas.
• Who are our customers?
• What is our core competency?
CORPORATE STRATEGIES
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11. • After analyzing corporate operations and performance, the next step in
strategic planning is to determine future business directions and develop
strategies for individual business units.
• A Strategic Business Unit (SBU) is a division, product line, or other profit
center within the parent company.
• Each SBU sells a distinct set of products to an identifiable group of
customers and each competes with a well-defined set of competitors.
• The revenues, costs, investments, and strategic plans for each SBU can be
separated from those of the parent company and evaluated.
BUSINESS UNIT STRATEGIES
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12. • SBUs face different market growth
rates, opportunities, competition,
and profit-making potential.
• Business strategy should seek to
create value for the company’s
target markets and attain greater
performance, which marketing
research suggests requires
implementing appropriate
strategic actions and targeting
appropriate market segments.
BUSINESS UNIT STRATEGIES
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13. • A market is a group of individuals and/or organizations that have needs
for products in a product class and have the ability, willingness, and
authority to purchase those products.
• The percentage of a market that actually buys a specific product from a
particular company is referred to as that product’s market share.
BUSINESS UNIT STRATEGIES
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14. • One of the most helpful tools for a marketer is the market
growth/market share matrix, developed by the Boston Consulting Group
(BCG).
• This approach is based on the philosophy that a product’s market growth
rate and its market share are important considerations in determining
marketing strategy.
• The BCG Matrix enables a strategic planner to classify a company’s
products into four basic types: stars, cash cows, dogs, and question
marks.
BUSINESS-UNIT STRATEGIES
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16. • Stars are products with a dominant share of the market and good
prospects for growth.
• However, they use more cash than they generate to finance growth, add capacity,
and increase market share.
• Cash Cows have a dominant share of the market, but low prospects for
growth.
• They typically generate more cash than is required to maintain market share.
• Dogs have subordinate share of the market and low prospects for
growth.
• Dogs are often found in established markets.
• Question Marks, sometimes called “problem children” have a small
share of a growing market and generally require a large amount of cash
to build market share.
BCG GROWTH MATRIX
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17. • Cash Cows
• Since they are the most stable, general strategy is retention of market share.
Customer satisfaction programs, loyalty programs, and other promotional
methods form the core of the strategy for a cash cow product.
• Stars
• All types of marketing, sales promotion and advertising strategies are used for
Stars. Because of high competition and rising market share, the concentration of
investments needs to be high in order to retain market share.
STRATEGIES
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18. • Question Marks
• As they are new entry products with high growth rate, our goal is to turn them
into Cash Cows. Time to time market research helps in determining consumer
psychology for the product as well as the possible future of the product and a
hard decision might have to be taken if the product goes into negative
profitability.
• Dogs
• Depending on the amount of cash which is already invested in this quadrant, the
company can either divest the product altogether or can revamp the product
through rebranding/innovation/adding features etc.
STRATEGIES
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19. • The strategic planning process begins with an analysis of the marketing
environment, including the industry in which the company operates or
intends to sell its products.
• The marketing environment (economic, competitive, political, legal and
regulatory, sociocultural, and technological forces) can threaten an
organization and influence its overall goals affecting the amount and
type of resources the company can acquire.
• These forces can also create favorable opportunities that can help an
organization achieve its goals and marketing objectives.
ASSESSING ORGANIZATIONAL RESOURCES AND
OPPORTUNITIES
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20. • Any strategic planning effort must take into account the organization’s
available financial resources and capabilities and how these resources
are likely to change over time, as changes may affect the organization’s
ability to achieve its mission and goals.
• Such strengths also include core competencies, things a company does
extremely well – sometimes so gives the company an advantage over its
competition.
ASSESSING ORGANIZATIONAL RESOURCES AND
OPPORTUNITIES
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21. • Analysis of the marketing environment also includes identifying
opportunities in the marketplace, which requires a solid understanding
of the company’s industry.
• When the right combination of circumstances and timing permits an
organization to take action to reach a particular target market, a market
opportunity exists.
• When a company matches a core competency to opportunities in the
marketplace, it is said to have a competitive advantage.
ASSESSING ORGANIZATIONAL RESOURCES AND
OPPORTUNITIES
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23. • The SWOT Analysis assesses an organization’s strengths, weaknesses,
opportunities, and threats.
• Strengths refer to competitive advantages, or core competencies, that
give the company an advantage.
• Weaknesses are limitations a company faces in developing or
implementing a marketing strategy.
• Opportunities refer to favorable conditions in the environment that
could produce rewards for the organization if acted upon.
• Threats refer to barriers that could prevent the company from reaching
its objectives.
SWOT ANALYSIS
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24. • First-mover advantage is the ability of an
innovative company to achieve its long-term
competitive advantages by being the first to
offer a certain product in the marketplace.
• Build reputation as a pioneer and market leader
• A Late-mover advantage is the ability of
later market entrants to achieve long-term
competitive advantage by not being the first
to offer a certain product in the
marketplace.
• Learn from the first-mover’s mistakes, chance to
improve product design and market strategy,
have lower investment costs, more data
available
FIRST-MOVER AND LATE-MOVER ADVANTAGE
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25. • A marketing objective states what is
to be accomplished through
marketing activities.
• It should possess certain
characteristics:
• Expressed in clear, simple terms
• Should be measurable, to track
progress and compare outcomes
against beginning benchmarks
• Should specify a time frame for its
accomplishment
• Should be consistent with both
business-unit and corporate strategies
DEVELOPING MARKETING OBJECTIVES AND
MARKETING STRATEGIES
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26. • A marketing strategy is the selection of a target market and the creation
of a marketing mix that will satisfy the needs of target market members.
DEVELOPING MARKETING OBJECTIVES AND
MARKETING STRATEGIES
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27. • Selecting an appropriate target
market may be the most important
decision a company makes in the
strategic planning process and is
crucial for strategic success.
• The target market must be chosen
before the organization can adapt its
marketing mix to meet the
customer’s needs and preferences.
SELECTING THE TARGET MARKET
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28. • Using all relevant information available
to conduct in-depth research allows a
firm to select the most appropriate
target market, which is the basis for
creating a marketing mix that satisfies
the needs of that market.
• Using the marketing mix as a tool set, a
company can detail how it can achieve
a sustainable competitive advantage.
• A sustainable competitive advantage
is one that the competition cannot
copy in the foreseeable future.
CREATING MARKETING MIXES
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29. • Marketing Implementation is the process of putting marketing strategies
into action.
• Organizing the Marketing Unit
• How effectively a company’s marketing management can implement marketing
strategies also depend on how the marketing unit is organized.
• Centralized Organization – a structure in which top-level managers delegate little authority to
lower levels.
• Decentralized Organization – a structure in which decision-making authority is delegated as
far down the chain of command as possible.
• Motivating the Marketing Personnel
• People work to satisfy physical, psychological, and social needs. To motivate
marketing personnel, managers must address their employees’ needs to maintain
a high level of workplace satisfaction.
MANAGING MARKETING IMPLEMENTATION
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30. • Communicating within the Marketing Unit
• Marketing managers must be clear in communication with the firm’s upper level
management to ensure that they are aware of the firm’s goals and achievements
and that marketing activities are consistent with the company’s overall goals.
• Coordinating Marketing Activities
• Marketing managers must coordinate diverse employee actions to achieve
marketing objectives and must work closely with management in many areas,
including research and development, production, finance, accounting, human
resources to ensure that marketing activities align with other functions of the
firm.
• Establishing a Timetable for Implementation
• Successful marketing implementation requires that employees know the specific
activities for which they are responsible and the timetable for completing them.
MANAGING MARKETING IMPLEMENTATION
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31. • To achieve marketing objectives, marketing managers must evaluate
marketing strategies effectively.
• Strategic performance evaluation consists of establishing performance
standards, measuring actual performance, comparing actual
performance with established standards, and modifying the marketing
strategy if needed.
EVALUATING MARKETING STRATEGIES
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32. • Establishing Performance Standards
• A performance standard is an expected level of performance against which actual
performance can be compared.
• Analyzing Actual Performance
• Sales Analysis – uses sales figures to evaluate a firm’s current performance.
• Marketing Cost Analysis – breaks down and classifies costs to determine which
are associated with specific marketing efforts.
• Comparing Actual Performance with Performance Standards and Making
Changes If Needed
EVALUATING MARKETING STRATEGIES
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33. • The strategic planning process ultimately yields a marketing strategy that
is the framework for a marketing plan.
• A Marketing Plan is a written document that specifies the marketing
activities to be performed to implement and evaluate the organization’s
marketing strategies.
• Executive Summary
• Environmental Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategies
• Marketing Implementation
• Performance Evaluation
CREATING THE MARKETING PLAN
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