Strategic Marketing

and Planning

Strategic Marketing
Management
w The mark of an excellent company is how it
responds to a continuously changing environment
w Benefits of planning
n
n
n
n
n

Strategic Planning

Planning hierarchy

w Strategic planning is the managerial process of

developing and maintaining a viable fit between the
organisations objectives and resources, and its
changing market opportunities
w The aim of strategic planning is to shape and
reshape the companys businesses and products to
produce satisfactory profits and growth

The Strategy Hierarchy

Corporate
Level

Strategic
Business
Unit Level

Corporate Strategy
Mission and vision
Objectives
Business portfolio strategy
Resource development
Corporate values

SBU
Strategy

Functional
Level of
Marketing Strategy
SBU
Marketing
objectives
Product markets
strategies

SBU Strategy
Business definition
Objectives
Product market portfolio
Competitive strategy
Resource allocation and management

R&D Strategy
Technology
Product
development

Production
and operation
strategy

Finance and
administration
Strategy

management becomes proactive

facilitates integration
communicates management intent
ensures activities are goal-oriented
monitor progress towards goals

SBU
Strategy

Three levels:
w Corporate strategic plan
w Strategic Business Unit plan
w Marketing plan

Corporate Strategic Plans

Corporate strategic planning concerns the

organisation as a whole and ultimately deals
with the allocation of funds across SBUs and
returns generated on those funds

Human resources
Strategy

Steps in Strategic Planning

Corporate Level

Defining the
Company Mission

w 4 planning activities
Defining Company
Objectives and Goals

n
n

Designing the
Business Portfolio

Business Level

define mission
identify SBUs
analyse and evaluate the current portfolio of
businesses
identify new business arenas to enter

Planning, Marketing and

Other Functional Strategies

Strategic Business Units

w The mission statement provides direction for the
company
n
n
n

What business are we in?

Who do we serve?
What benefits do we provide?

w Elaborating on the mission

w The mission statement acts as an invisible hand to
guide geographically remote operations

SBUs
w The General Electric (GE) approach
w Definition of SBUs can be at any level of the
company
w At the corporate level, decisions are made
concerning which SBUs to build, maintain,
harvest, and divest

w Companies too often describe their business in

terms of a product they make
w Levitt argues that a business must be viewed as a
customer-satisfying process, not a goods-producing
process
w SBU business domain (Abell)
w Purpose is to assign strategic planning
responsibilities to these units

Planning tools
GE Business Screen
w If either market attractiveness or business strength
is weak, the company will not produce outstanding
results
w SBUs have a life cycle
w May be used to forecast SBU position
w Corporate decisions
(Build;Hold;Harvest;Divest)

The GE Planning Grid

Strategic Planning Gap

Industry Attractiveness

Business Strength

Strong

Average

Weak

High

The output of portfolio analysis of SBUs is

the identification of any gaps between future
desired sales and projected sales. If a gap
exists, corporate management must plan to
either develop or acquire new businesses to
fill the gap

Medium

Low

Corporate, Business and

Marketing Strategy Model

Closing the strategic gap

w Major classes of growth opportunities
n
n
n

Intensive growth
Integrative growth
Diversification growth

Business portfolio
Capital investments and
resource allocation
Corporate culture
Corporate structure

Markets
Products and services
Profit- yielding strategies
Brand management
Profit improvement

Performance-Importance matrix

w Goals should be SMART

w Strategy
w Programs and action plans
w Implementation

Marketing Strategy
Developing market
position
Customer satisfaction

Focus
Economic
value added

Focus
Economic
value added

Focus
Customer value
creation,
maintenance and
defence

Shareholde
r
Value

Business
Value

Customer
Value

Marketing Strategy
& the Marketing Plan

Strategic Planning Process

Building core
competencies

Product/market portfolio
Business Strategy
Resource allocation
Distinctive competencies
Product- markets
Developing competitive
Business culture
position
Strategic cost
Competitive advantage
management

w Linear and iterative

w SWOT analysis

Corporate Strategy

w Planning is conducted at two levels

n
n

annual plan
long term plan

w It contains much greater detail than the

corporate plan
w It takes direction from the strategic plan

Business Portfolios
High

Market Growth Rate

Planning tool

Stars

Question Marks

? ????
Cash Cows

Low

BCG Product Portfolio Matrix

w Used at the product market level
w Components
w Is the portfolio balanced?

Dogs

High

Low

Relative Market Share

Closing the marketing plan gap

Ansoffs Gap Analysis Chart

Sales

Objectives

w Market opportunity identification

n

Ansoffs Product/Market expansion grid

Projected
Gap to be
closed

Is the opportunity compatible with company

objectives?
Is the opportunity compatible with company
resources?

Competitive Gap

Past

w Target market strategy

Using the Ansoff Matrix in the

Objective -setting Process

PRODUCTS / SERVICES

PRODUCTS / SERVICES

New

Market
development

Diversification

Established

Product / Service
development

New

Market penetration

Established

MARKET

MARKET
Present
New

(No change strategy)

Forecast
Future

Now

Source: D.T. Brownlie & C.K. Bart, Products and Strategies, MCB University Press, Vol.11, No.1, 1985, p.29

Ansoffs Growth Vector Matrix

Present

Projected
Gap to be
closed

Diversification

w Market opportunity evaluation

Market penetration (1)

New
Product / Service
development (2)

High Risk
Market
development (3)

Diversification (4)

Source: D.T. Brownlie & C.K. Bart, Products and Strategies, MCB University Press, Vol.11, No.1, 1985, p.29

Profit improvement options

Marketing Plan contents

Profit Improvement

Sales Growth

Market
Penetration

Productivity Improvement

Market
Development

Product
Change
Development Asset base

Take
Increase
New
Convert Existing
competitors
usage
Segments non-users Markets
customers

New
Markets

Existing
Assets

Cost
Reduction

Growth focus

Improve
asset
Increase
utilisation
Price
(experience
and
efficiency

Improve
product
sales
mix
( margin)

Cash and margin focus

Investment
innovation
diversification

Divestment
redeployment of
capital resources

w Sales objectives
w Target market
w Marketing objectives
and strategies
w Positioning
w Product & Branding
w Price
w Distribution

w Operations plan
w Promotion
n
n
n
n

Advertising message
Media
Merchandising
PR

w Budget/payback
analysis/calendar
w Evaluation measures

Capital utilisation focus

Extended Marketing Mix

3. PEOPLE

7. PROMOTION
Advertising
Personal selling
Direct marketing
Synchronous
marketing

4. PROCESS
TARGET CUSTOMERS
INTENDED
POSITIONING

6. PLACEMENT
for customer
service
Demand chain
management
Logistics
management
Channel
management

In the case of high-contact

services, customers are
involved in the process.
Technology is also
important in conversion
operations and service
delivery
5. PHYSICAL EVIDENCE

David Burke
Australian Institute for Enneagram Studies
Ph: 32191071
aies@enneagram.com.au
enneagram.com.au

Services are mostly intangible.

T hus the meaning of other
tools and techniques used in
measures of satisfaction are
important

Planning the Migration

Planning dimensions:

DemographicEconomic
Environment

Suppliers

PoliticalLegal
Environment

Natural
Environment

Channels

Place
ng
eti
rk trol
Ma on
C

Key milestones:
Place strategy

th
Pa
on
ati
r
g
Mi

The Marketing
Process
TechnologicalMarketing
Product

ng
eti g
rk nin
Ma lan
P

Desired Future
Position

Management Process
Technology
Key milestones:
Culture
Space
strategy
People
Information
Marketing Strategy

Present
Position

Guest Speaker

People interacting with people

is how many service situations
might be described.
Relationships are important in
marketing

List price
Discounts
Allowances
Settlement and
credit terms

Target
Price
Consumers
Promotion

Competitors

Publics

Im M
ple ark
m eti
en ng
tat
ion

Variety
Quality
Design
Features
Brand name
Packaging
Sizes
Add-ons
Warranties
Returns

2. PRICE

M
An arke
aly tin
sis g

1. PRODUCT
& SERVICE

SocialCultural
Environment