Corporate Strategic Planning

AsiaAsia-Pacific Marketing Federation Certified Professional Marketer
Copyright Marketing Institute of Singapore

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.µ . Know the terrain. and your victory will not be threatened. and your victory will be complete. know the weather.

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

Corporate Mission  Broad purposes of the organization  General criteria for assessing the longlong- term organizational effectiveness  Driven by heritage & environment  Mission statements are increasingly being developed at the SBU level as well .

It operates world-wide as the flag carrier of worldthe 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 SINGAPORE AIRLINES is engaged in air transportation and related businesses.

by treating employees in ways that create extraordinary customer service and shareholder value .Examples of Corporate Mission (cont¶d) MARRIOTT S Mission Statement: We are committed to being the best lodging and food service company in the world.

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? .

increasing the return on shareholders equity  A goal is a measurable objective of the business  Attainable at some specific future date through planned actions  E. 10% growth in the next two years .g.g.Corporate Objectives & Goals  An objective is a long-range purpose long Not quantified and not limited to a time period  E.

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.) . 6th Ed. Marketing Planning & Strategy.

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 Level² Level² Strategic Marketing  Strategic Marketing requires  Strategic Marketing Detailed understanding of market needs. and Proactive use of competitive intelligence at the corporate as well as SBU s levels Focuses on what the firm do best at the SBU level To secure and maintain a sustainable competitive advantage .

don t compete.  Jack Welch.What is Competitive Advantage? Competitive advantage is a company s ability to perform in one or more ways that competitors cannot or will not match. Philip Kotler  If you don t have a competitive advantage. GE .

Aakers) .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.

Superior business process . Market Share.Seeking Competitive Advantages  Positions of advantage  Superior customer value  Lower relative total cost  Customer satisfaction. Superior resources. Loyalty. Profit  Performance advantages  Sources of advantages  Superior skills & knowledge.

PEST Strategic Marketing Decisions . Competitors & the Corporation  Where to compete  How to compete  When to compete  Environment analysis -.Key Elements of Marketing Strategy Formulation  The strategic 3 Cs   Customers.

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 .

customers. capability etc. decide on future options .Situation Analysis  Internal Analysis  External Analysis industry structure  SWOT Analysis & Threats company. Opportunities  Identify & prioritize major problems and opportunities: selection of key issues  Based on the firm s core competencies.  Strengths. Weaknesses. market definition.

Marketing Audit Marketing audit is a comprehensive. and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company s marketing performance Philip Kotler . strategies. and periodic examination of a company s or business unit s marketing environment. objectives. systematic. independent.

Characteristics of Marketing Audit  Comprehensive  Systematic  Periodic  Independent  Must cover all marketing areas  Sequential diagnostic steps  Internal & external auditors  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 .

Sign up to vote on this title
UsefulNot useful