1. Corporate Strategic Planning Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore
2. Outline Introduction Meaning & Role of Strategic Planning Corporate Mission Strategic Business Units (SBU) Marketing Audit
3. Strategic Fit Resources Org Objectives Changing Environment Strategic Planning …is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.
7. Sun Tze on Strategy “Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”
8. Strategic Marketing “Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.” John Scully
9. Corporate Mission Broad purposes of the organization General criteria for assessing the long-term organizational effectiveness Driven by heritage & environment Mission statements are increasingly being developed at the SBU level as well
10. Examples of Corporate Mission SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company
11. Examples of Corporate Mission (cont’d) MARRIOTT’S Mission Statement: We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value
12. Corporate Culture The most abstract level of managerial thinking How do you define culture? What is the significance of culture to an organization? How does marketing affect culture in the organization?
13. Corporate Objectives & Goals An objective is a long-range purpose Not quantified and not limited to a time period E.g. increasing the return on shareholders’ equity A goal is a measurable objective of the business Attainable at some specific future date through planned actions E.g. 10% growth in the next two years
14. What is a Strategic Business Unit? (SBU) A set of products or product lines With clear independence from other products or product lines for which a business or marketing strategy should be designed
15. Characteristics of a viable SBU Unique business mission Definable set of competitors Integrative planning done independently Responsible for resource management in all areas Large enough but not so large as to become bureaucratic (Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
16. Organizational Marketing Levels Hofer and Schendel suggested that organizations develop strategies at three structural levels: Corporate level—(corporate marketing) SBU level—(Strategic Marketing) Product/Market level—(Functional Marketing)
17. Marketing at the SBU Level—Strategic Marketing Strategic Marketing requires Detailed understanding of market needs, and Proactive use of competitive intelligence at the corporate as well as SBU’s levels Strategic Marketing Focuses on what the firm do best at the SBU level To secure and maintain a sustainable competitive advantage
18. What is Competitive Advantage? “Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.”Philip Kotler “If you don’t have a competitive advantage, don’t compete.”Jack Welch, GE
19. Other Characteristics of Competitive Advantage Substantiality Is it substantial enough to make a difference? Sustainability Can it be neutralized by competitors quickly? Ability to be leveraged into visible business attributes that will influence customers (Source: Strategic Marketing Management, Aakers)
20. Seeking Competitive Advantages Positions of advantage Superior customer value Lower relative total cost Performance advantages Customer satisfaction, Loyalty, Market Share, Profit Sources of advantages Superior skills & knowledge, Superior resources, Superior business process
21. Key Elements of Marketing Strategy Formulation The strategic 3 Cs Customers, Competitors & the Corporation Environment analysis -- PEST Strategic Marketing Decisions Where to compete How to compete When to compete
22. A Viable Marketing Strategy Must have a clearly defined market Must have a good match between corporate strengths and market needs Must have significant positive differentiation in the key success factors of the business
23. Situation Analysis Internal Analysis—company; capability etc. External Analysis—customers, market definition, industry structure SWOT Analysis Strengths, Weaknesses, Opportunities & Threats Identify & prioritize major problems and opportunities: selection of key issues Based on the firm’s core competencies, decide on future options
24. Marketing Audit “Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler
25. Characteristics of Marketing Audit Comprehensive Must cover all marketing areas Systematic Sequential diagnostic steps Independent Internal & external auditors Periodic Performed at regular intervals
26. Marketing Audit Procedure Marketing environment audit Marketing strategy audit Marketing organization audit Marketing system audit Marketing productivity audit Marketing function audit Marketing excellence review Ethical and social responsibility review
