Corporate Strategic Planning

Asia-Pacific Marketing Federation Certified Professional Marketer

Copyright Marketing Institute of Singapore

Outline

Introduction Meaning & Role of Strategic Planning Corporate Mission Strategic Business Units (SBU) Marketing Audit

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.
Org Objectives Strategic Fit Resources

Changing Environment

The Role of Strategy

Corporate Mission & Objectives

Strategy: Corporate Business Functional

Operating Plans

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.

Strategic Marketing
Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage. John Scully

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

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

Examples of Corporate Mission (contd)

MARRIOTTS 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

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?

Corporate Objectives & Goals

An objective is a long-range purpose 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

Not quantified and not limited to a time period E.g. increasing the return on shareholders equity

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

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.)

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)

Marketing at the SBU Level Strategic Marketing

Strategic Marketing requires

Strategic Marketing

Detailed understanding of market needs, and Proactive use of competitive intelligence at

the corporate as well as SBUs levels

Focuses on what the firm do best at the SBU level To secure and maintain a sustainable
competitive advantage

What is Competitive Advantage?

Competitive advantage is a companys

ability to perform in one or more ways that competitors cannot or will not match. Philip Kotler If you dont have a competitive advantage, dont compete.
Jack Welch, GE

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)

Seeking Competitive Advantages

Positions of advantage

Superior customer value Lower relative total cost Performance advantages Customer satisfaction, Loyalty, Market Share,

Sources of advantages

Profit

Superior skills & knowledge, Superior

resources, Superior business process

Key Elements of Marketing Strategy Formulation

The strategic 3 Cs

Environment analysis -- PEST

Where to compete How to compete When to compete

Customers, Competitors & the Corporation

Strategic Marketing Decisions

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

Situation Analysis Internal Analysiscompany; capability etc. External Analysiscustomers, market definition, industry structure SWOT Analysis
& Threats

Strengths, Weaknesses, Opportunities

Identify & prioritize major problems and
opportunities: selection of key issues

Based on the firms core competencies,

decide on future options

Marketing Audit
Marketing audit is a comprehensive, systematic, independent, and periodic examination of a companysor business unitsmarketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance Philip Kotler

Characteristics of Marketing Audit

Comprehensive

Must cover all marketing areas Systematic Sequential diagnostic steps Independent Internal & external auditors Periodic Performed at regular intervals

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