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Mm session4
The marketing manager plays a key leadership role in strategic planning, including defining the business mission, conducting environmental and competitive analysis, and developing objectives, goals, and strategies. They are responsible for defining product, market, distribution, and quality plans. The strategic planning process involves analyzing stakeholders and their needs, business processes, and ensuring proper resources and organizational alignment to implement strategies and satisfy stakeholders. This allows for continuous improvement, innovation, growth and profits through dynamic relationships among stakeholder groups.
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Mm session4
- 3. - The marketingmanager is the most significant functional contributor to the strategic planning. He/she has a leadership role in: - Defining the business mission - Environment Analysis - Competitive and business situations - Developing objectives, goals, and strategies - Defining the product, market, distribution, and quality plans
- 4. Stakeholders Resources Processes Organization Set strategies to satisfykey stakeholders …by improving business processes …and aligning Resources and organization
- 5. Stakeholders –definestakeholders and their needs. › Stockholders – increase in stock prices › Employees – job security › Suppliers – maintain/increase order volume › Distributors – marketing programs › Customers – high-quality products and services
- 6. Processes –you satisfy the needs of your stakeholders by improving business processes Resources and Organization – to carry out process improvements, you a company needs resources and a flexible organization
- 7.
- 8. - A managerialprocess of developing and maintaining a viable fit between the organization’s objectives, skills, and resources, and its changing market opportunities to yield target profit and growth.
- 9. Strategic Planning, Implementation,and Control Process Corporate Planning Division Planning Business Planning Product Planning Organizing Implementing Measuring Results Diagnosing Results Taking Corrective Action Planning Implementing Control
- 10. Corporate Planning - preparemission statement, policies, strategies, goals, and framework that will be the basis of plans of all business units.
- 11. Define CorporateMission Establish Strategic Business Units Assign Resources to SBU’s Plan New Businesses
- 12. - Fundamental Questions 1.What is our business? 2. Who is our customer? 3. What is the value to the customer? 4. What will our business be? 5. What should our business be?
- 13. Elements of CompanyMission 1. History – history of aims, policies, and achievements 2. Current Preferences – business direction 3. Market Environment – external influences to the business 4. Resources – corporate capabilities 5. Distinctive Competencies – Competitive Advantages
- 14. Significance: Provides employeeswith a shared sense of purpose Acts as the “invisible hand” that guides employees to work independently towards a common goal Embody what the company is all about
- 15. Consider: 1. Define majorcompetitive scopes: - Industry scope – what industry you want to belong to - Products and Applications scope – range of products the company will participate in - Competencies Scope – range of competencies the company will master and leverage - Market-Segment Scope – Type of market the company will serve - Vertical Scope – number of channel levels the company will engage - Geographical Scope – range of regions, countries or country groups the company will operate in
- 16. Should be: 1. Motivating 2.Guided by a Vision 3. Stress major policies 4. Provide direction for the company in the next five to ten years
- 17. - Defining whatyou are as a business Dimensions: › Customer groups › Customer needs › Technology COMPANY PRODUCT DEFINITION Revlon We Make Cosmetics We Sell Hope Xerox We Make Copying Equipment We help improve Office Productivity Columbia Pictures We make movies We sell entertainment Carrier We make air-conditioners We provide climate control in the home
- 18. Companies defineStrategic Business Units for appropriate funding HQ will then decide which SBU will › Build – increase market share › Maintain – preserve market share › Harvest – increase short term cash flow › Divest – sell or liquidate business
- 19. Boston Consulting Group’sGrowth Share Matrix Cash cows - is where a company has high market share in a slow- growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, yet corporations value owning them due to their cash generating qualities. Stars - are units with a high market share in a fast-growing industry. They are graduated question marks with a market or niche leading trajectory. The hope is that stars become next cash cows. Dogs - units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Question marks - (also known as problem children) are business operating in a high market growth, but having a low market share. They are a starting point for most businesses. Question marks have a potential to gain market share and become stars, and eventually cash cows when market growth slows.
- 20. Boston Consulting Group’sGrowth Share Matrix
- 21. - Existing SBUswill project sales - HQ will have target sales for the year - Divested businesses will result to a sales gap which will need replacement - New businesses will fill the gap of divested businesses
- 22. 0 1 2 3 4 5 6 7 8 9 10 0 5 1015 Desired Sales Strat Plan Gap Projected Sales
- 23. Companies canfill the gap in 3 ways: 1. INTENSIVE GROWTH: Identify opportunities to achieve growth within the company’s current businesses 2. INTEGRATIVE GROWTH: Identify opportunities to build or acquire businesses that are related to the company’s current businesses 3. DIVERSIFICATION GROWTH: Identify opportunities to add attractive businesses that are unrelated to current businesses.
- 24. INTENSIVE GROWTHOPPORTUNITIES › Market Penetration Strategy – increase the market share of its current portfolio in their current markets › Market Development Strategy – look for new markets whose need might be met by its current products › Product Development Strategy – new product posibilities
- 25. INTEGRATIVE GROWTHBackward Integration – acquiring suppliers or service providers › Forward Integration – acquiring distributors › Horizontal Integration – acquiring competitors
- 26. DIVERSIFICATION GROWTH ›Concentric Diversification – new products that have technological marketing synergies with existing product line › Horizontal Diversification – new products that might appeal to existing customers › Conglomerate Diversification – no relationship with products or customers
- 28. Define SpecificMission of the Business within the broader company mission › More specific scopes Product applications Competencies Market segments Vertical positioning geography
- 29. Strength andWeakness Analysis › Asses which business activities your business unit is very good at and very bad at on the department level › Examine resource utilization › Define needed process improvements › Must be done periodically by management
- 30. Opportunities andThreats Analysis › Made up of the actors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers Macro and Micro Environment Forces
- 31. Purpose: › Lookfor Market Opportunities – an area of need which a company can perform profitably › Look for developments in the environment that may pose as a threat to your operations Market Threat – is a challenge posed by an unfavourable trend that would lead to a decrease in sales in the absence of marketing action
- 32. Goals are specificobjectives set by management for the planning period S - M - A - R - T -
- 33. Goals are specificobjectives set by management as to what they want to happen to the company for the period S - pecific M - easurable A - ttainable R - eallistic T - imebound
- 34. Purpose is toset objectives for: › Profitability › Sales growth › Market share improvement › reputation
- 35. - Goals indicatewhere they want the business to go, Strategies are ways how to get there - Types of Strategies - Overall Cost Leadership – focus is to lower costs in critical business processes - Differentiation – achieve superior performance in a benefit valued by customers - Focus – focuses on narrow market segments rather than going for the larger markets
- 36. Programs or Tacticsare detailed specific activities based on set Strategies for the Goals. › Purpose: Set activities that support the strategies Set programs that ensure the goals that were formulated by the management will be met
- 38. Implementation ofset plans according to a Business Calendar – set schedules of activities according to priority and feasibility › Calendar must be followed strictly not to hamper attainment of set goals
- 39. During implementation,management should monitor activities and new developments in the environment. › Purpose: Track if Business Calendar is being followed Check for process improvements when developments in the environment arise.