Strategic Marketing Planning Capturing the Big Picture

Strategic Marketing Planning Capturing the Big Picture

Chapter Objectives • Explain the strategic planning process • Describe the steps in marketing planning • Explain operational planning • Explain the key role of implementation and control on marketing planning • Discuss some of the important aspects of an organization’s internal environment

Real People, Real Choices: Decision Time at Qode • What go-to-market strategies should Qode execute? • Option 1: partner with cell phone carriers • Option 2: leverage social networking • Option 3: brand-driven distribution

Business Planning:Composing the Big Picture • Business planning: ongoing process of making decisions that guide the firm both in the short term and for the long haul • Identifies/builds on firm’s strengths • Helps managers make informed decisions • Develops objectives before action is taken

Three Levels of Business Planning • Strategic planning by top-level corporate management • Functional planning by top functional-level management such as the chief marketing officer • Operational planning by supervisory managers

Strategic Planning • Managerial decision process that matches firm’s resources & capabilities to its marketing opportunities for long-term growth • Top management defines firm’s purpose and objectives • Example: increase firm’s total revenues by 20% over next five years

Functional (Tactical) Planning • Accomplished by various functional areas of firm • Typically includes a broad 5-year plan to support strategic plan and a detailed annual plan Example: to gain 40% of a particular market with three new products during coming year

Operational Planning • First-line managers focus on day-to-day execution of functional plans • Such planning includes detailed annual, semiannual, or quarterly plans Example: units of a product a salesperson needs to sell per month

All Business Planning Is an Integrated Activity • Strategic, functional, and operational plans must work together for benefit of whole firm • Marketers must fully understand how they fit with the organization’s direction and resources

Strategic Planning: Framing the Picture • Very large multiproduct firms have divisions called strategic business units (SBUs) • Individual units within the firm that operate like separate businesses with each having its own mission, business objectives, resources, managers, and competitors • In these firms, strategic planning done at both the corporate and SBU levels

Step 1: Define the Mission • What business are we in? What customers should we serve? How do we develop firm’s capabilities & focus its efforts? • Mission statement: a formal document that describes the organization’s overall purpose and what it hopes to achieve in terms of its customers, products, and resources • Mission should not be too broad, too narrow, too shortsighted

Step 1: Define the Mission • Examples of mission statements • MADD: “to stop drunk driving, support the victims of this violent crime, and prevent underage drinking” • NeoMedia Technologies: “provide ground-breaking new technologies to companies everywhere” • Xerox: provide “document solutions”

Step 2: Evaluate the Internal & External Environment • Situational/environmental analysis (business review) • Includes a discussion of firm’s internal environment as well as the external environment

Internal Environment • All controllable elements inside a firm that influence how well the firm operates • Strengths and weaknesses • Technologies, physical facilities, financial stability, corporate reputation, quality products, strong brands, employees

External Environment • Elements outside the firm that may affect it either positively or negatively • Opportunities and threats • The economy, competition, technology, law, ethics, and sociocultural trends • Firm cannot directly control external factors but can respond to them via planning

SWOT Analysis • An analysis of an organization’s strengths (S) and weaknesses (W) and the opportunities (O) and threats (T) in the external environment

Step 3: Set Organizationalor SBU Objectives • What the firm hopes to accomplish with long-range business plan • Need to be specific, measurable, and attainable • May relate to sales, profitability, standing in market, return on investment, productivity, product development, customer satisfaction, and social responsibility

Step 4: Establish the Business Portfolio • Business portfolio: the group of different products or brands owned by an organization and having different income-generating and growth capabilities • Portfolio analysis: assessing the potential of a firm’s strategic business units • Helps decisions regarding which SBUs should receive more or less of the firm’s resources

Step 5: Develop Growth Strategies

Marketing Planning: Step 1 • Perform a situation analysis • Builds on SWOT analysis about the environment that specifically affects the marketing plan

Marketing Planning: Step 2 • Set marketing objectives • Specific to the firm’s brands, sizes, product features, and other marketing mix-related elements • State what the marketing function must accomplish if firm is to achieve overall business objectives

Marketing Planning: Step 3 • Develop marketing strategies to achieve marketing objectives • Target market(s) where the firm’s offerings are best suited • Marketing mix strategies: how marketing will accomplish its objectives in the firm’s target market by using product, price, promotion, and place

Marketing Mix Strategies • Product strategies include product design, packaging, branding, support services, and product variations/features • Pricing strategies include setting prices for final consumers, wholesalers, and retailers based on costs, demand, or competitors’ prices

Marketing Mix Strategies • Promotion strategies: advertising, sales promotion, public relations, direct marketing, personal selling • Distribution strategies: how, when, and where the product is available to targeted customers

Step 4: Implement & Controlthe Marketing Plan • Control: measuring actual performance, comparing performance to the objectives, making adjustments • Marketing metrics: return on marketing investment (ROMI)

Action Plans • Support plans that guide implementation and control of marketing strategies • Assign responsibility, time line, budget, measurement and control

Creating & Working with a Marketing Plan • Written marketing plans encourage concrete objectives and strategies • Operational plans focus on the day-to-day execution of the marketing plan

The Value of a Marketing Culture • A firm’s corporate culture determines much of its internal environment – the values, norms, and beliefs that influence everyone in the firm

Real People, Real Choices • NeoMedia Technologies (Rick Szatkowski) • Rick choose option 2: leverage social networking • Rick and his team are banking on early adopters to energize the market for Qode and push the product rapidly through the adoption cycle to more users

Keeping It Real: Fast-Forward to Next Class Decision Time at Tupperware • Meet Rick Goings, CEO of Tupperware Brands Corp. • Tupperware: one of the most recognized brands world-wide • The decision: How to refresh the Tupperware brand perception

Strategic Marketing Planning Capturing the Big Picture

Strategic Marketing Planning Capturing the Big Picture

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