Strategic Marketing
LECTURE -2 (STRATEGIC MARKETING PLANNING)
Recap of previous session
Power shift to consumers
Exchange, Market, Product, Utility
Major Marketing Activities and Decisions
Developing and Maintaining Customer Relationships (traditional v/s Relationship
Marketing)
The Strategic Planning Process
Marketing Plan:
“…a written document that provides the blueprint or outline of the organization’s
marketing activities, including the implementation, evaluation, and control of
those activities.”
Discussion Question
What role, if any, should customers play in the strategic
planning process? Should they have a voice in
developing the organizational mission, marketing goals,
or the marketing strategy?
Organizational Mission vs. Organizational Vision
Elements of the Mission Statement
Five basic questions to be answered:
Who are we?
Who are our customers?
What is our operating philosophy?
What are our core competencies or competitive advantages?
What are our concerns and interests related to our
employees, our community, society in general and our
environment?
Organizational Mission vs. Organizational
Vision
Mission Width and Stability
Width: Too broad or too narrow?
Stability: Frequency of modifications
Customer-Focused Mission Statements
Ben and Jerry’s 3-part Mission Statement
Product Mission
Economic Mission
Social Mission
Corporate or Business-Unit Strategy
Business-Unit Strategy:
The central means for:
Utilizing and integrating the organization’s resources
Carrying out the organization’s mission
Achieving the organization’s desired goals and objectives
Associated with developing a competitive advantage
Determines the nature and future direction of each business unit
Essentially the same as corporate strategy in small businesses
Functional Strategy
Functional strategies are designed to integrate efforts focused on achieving the
area’s stated objectives.
The strategy must:
(1) Fit the needs and purposes of the functional area
(2) Be realistic with the organization’s resources and environment
(3) Be consistent with the organization’s mission goals, and objectives.
The effects of each functional strategy must be evaluated.
Functional Goals and Objectives
All business functions must support the organization’s mission and goals.
Functional objectives should be expressed in clear, simple terms.
All functional objectives should be reconsidered for each planning period.
Implementation
Involves activities that execute the functional strategy.
Functional plans have two target markets:
(1) External market i.e., customers, suppliers, investors, potential employees, the society at large
(2) Internal market i.e., employees, managers, executives
A company must rely on its internal market for a functional strategy to be implemented
successfully.
Evaluation and Control
Designed to keep activities on target with goals and objectives
Coordination among functional areas is a critical issue
Open lines of communication is the key
Evaluation and control is both an ending and beginning:
Occurs after a strategy has been implemented
Serves as the beginning point for planning in the next cycle
The Marketing Plan
Detailed formulation of the actions needed to carry out the marketing program
An action document:
The handbook for marketing implementation, evaluation and control
Not the same as a business plan
Requires a great deal of information from many different sources
Should be well organized
A good marketing plan outline is:
Comprehensive
Flexible
Consistent
Logical
Marketing Plan Structure
I. Executive Summary
Synopsis of the overall marketing plan
Introduces major aspects of the marketing plan
II. Situation Analysis
Summarizes information about 3 key environments:
Internal environment
Customer environment
Firm’s external environment
Marketing Plan Structure
III. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Marketing Plan Structure
IV. Marketing Goals and Objectives:
Formal statements of desired and expected outcomes of the marketing plan
Goals:
Broad, simple statements of what is to be accomplished
Objectives
More specific and essential to planning
V. Marketing Strategy:
Primary target market and marketing mix
Secondary target market and marketing mix
Marketing Plan Structure
VI. Marketing Implementation
1. What specific marketing activities will be undertaken?
2. How will these activities be performed?
3. When will these activities be performed?
4. Who is responsible for the completion of these activities?
5. How will the completion of planned activities be monitored?
6. How much will these activities cost?
VII. Evaluation and Control
Formal marketing control
Informal marketing control
Financial assessments
Marketing Plan Structure
Marketing Implementation
1. What specific marketing activities will be undertaken?
2. How will these activities be performed?
3. When will these activities be performed?
4. Who is responsible for the completion of these activities?
5. How will the completion of planned activities be monitored?
6. How much will these activities cost?
Major Problems in Developing and Implementing the Marketing Plan
Strategic Planning in the Market-Oriented Organization
A Market-Oriented Organization:
Shifts its focus:
From products to the requirements of market segments
From transactions to relationships
From competition to collaboration
Puts customer’s needs and wants first
Focuses on long-term, value-added relationships
Instils a corporate culture that puts customers at the top of the organizational
hierarchy
Cooperates with suppliers and competitors to serve customers better
