This action might not be possible to undo. Are you sure you want to continue?
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
management becomes proactive facilitates integration communicates management intent ensures activities are goal-oriented monitor progress towards goals
w Strategic planning is the managerial process of developing and maintaining a viable fit between the organisation’s objectives and resources, and its changing market opportunities w The aim of strategic planning is to shape and reshape the company’s businesses and products to produce satisfactory profits and growth
Three levels: w Corporate strategic plan w Strategic Business Unit plan w Marketing plan
Corporate Strategy • Mission and vision • Objectives • Business portfolio strategy • Resource development • Corporate values
The Strategy Hierarchy
Corporate Strategic Plans
Strategic Business Unit Level
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
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
R&D Strategy Technology Product development
Production and operation strategy
Finance and administration Strategy
Human resources Strategy
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. harvest. and divest Planning tools GE Business Screen w If either market attractiveness or business strength is weak.Divest) .Harvest. 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 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 SBUs w The General Electric (GE) approach w Definition of SBUs can be at any level of the company w At the corporate level.Hold. maintain.Steps in Strategic Planning Corporate Level Defining the Company Mission w 4 planning activities Defining Company Objectives and Goals Designing the Business Portfolio n n n n define mission identify SBUs analyse and evaluate the current portfolio of businesses identify new business arenas to enter Business Level Planning. decisions are made concerning which SBUs to build.
markets • Developing competitive • Business culture position • Strategic cost • Competitive advantage management • • • • • Markets Products and services Profit. maintenance and defence Customer Value Strategic Planning Process w Linear and iterative w SWOT analysis n Marketing Strategy & the Marketing Plan w Planning is conducted at two levels n n Performance-Importance matrix annual plan long term plan w Goals should be SMART w Strategy w Programs and action plans w Implementation w It contains much greater detail than the corporate plan w It takes direction from the strategic plan . corporate management must plan to either develop or acquire new businesses to fill the gap Industry Attractiveness Strong High Weak C A B D Medium Low Closing the strategic gap w Major classes of growth opportunities n n n Corporate.yielding strategies Brand management Profit improvement Marketing Strategy • Developing market position • Customer satisfaction Focus Economic value added Business Value Focus Customer value creation. If a gap exists.The GE Planning Grid Business Strength Average Strategic Planning Gap The output of portfolio analysis of SBUs is the identification of any gaps between future desired sales and projected sales. Business and Marketing Strategy Model • Business portfolio • Capital investments and resource allocation • Corporate culture • Corporate structure Corporate Strategy • Building core competencies Focus Economic value added Shareholde r Value Intensive growth Integrative growth Diversification growth • Product/market portfolio Business Strategy • Resource allocation • Distinctive competencies • Product.
11. Vol.11. Bart.T. 1985.Planning tool Market Growth Rate High Business Portfolios Stars Question Marks BCG Product Portfolio Matrix w Used at the product market level w Components w Is the portfolio balanced? ? ??? ? Cash Cows Dogs Low High Low Relative Market Share Closing the marketing plan gap w Market opportunity identification n Sales Ansoff’s Gap Analysis Chart Objectives Ansoff’s Product/Market expansion grid Diversification Projected Gap to be closed w Market opportunity evaluation n Projected Gap to be closed n Is the opportunity compatible with company objectives? Is the opportunity compatible with company resources? Past Competitive Gap Forecast Future (No change strategy) w Target market strategy Now Source: D.K. MCB University Press.29 . Brownlie & C. p.1.29 Ansoff’s Growth Vector Matrix PRODUCTS / SERVICES Present MARKET Present New Product / Service development Using the Ansoff Matrix in the Objective -setting Process PRODUCTS / SERVICES Established Established Market penetration (1) New Product / Service development (2) Market penetration New Market development New Diversification MARKET High Risk Market development (3) Diversification (4) Source: D. Products and Strategies. Bart.K. No. Vol. p. No.T. 1985. MCB University Press. Products and Strategies.1. Brownlie & C.
Profit improvement options Profit Improvement Sales Growth Productivity Improvement Market Penetration Market Development Product Change Development Asset base Existing Assets Marketing Plan contents 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 Take Increase New Convert Existing competitors’ usage Segments non-users Markets customers New Markets Cost Reduction Improve asset Increase utilisation Price (experience and efficiency Cash and margin focus Improve product sales mix ( margin) Advertising message Media Merchandising PR Growth focus Investment • innovation • diversification Divestment • redeployment of capital resources w Budget/payback analysis/calendar w Evaluation measures Capital utilisation focus Extended Marketing Mix 3. PEOPLE 1.au enneagram.au 7. PROMOTION Advertising Personal selling Direct marketing Synchronous marketing 6. T hus the meaning of other tools and techniques used in measures of satisfaction are important Planning the Migration Planning dimensions: • Management Process • Technology Key milestones: • Culture ‘Space’ strategy • People • Information • Marketing Strategy Desired Future Position DemographicEconomic Environment The Marketing Process TechnologicalMarketing Channels ng eti g rk nin Ma lan P M An arke aly tin sis g Natural Environment Product Suppliers Key milestones: ‘Place’ strategy Place ng eti rk trol Ma on C Target Price Consumers Promotion Im M ple ark m eti en ng tat ion Publics Present Position th Pa on ati gr Mi PoliticalLegal Environment Competitors SocialCultural Environment . Relationships are important in marketing 4. customers are involved in the process. PROCESS TARGET CUSTOMERS INTENDED POSITIONING Guest Speaker David Burke Australian Institute for Enneagram Studies Ph: 32191071 aies@enneagram. PLACEMENT for customer service Demand chain management Logistics management Channel management In the case of ‘high-contact’ services. Technology is also important in conversion operations and service delivery 5.com.com. PRICE List price Discounts Allowances Settlement and credit terms People interacting with people is how many service situations might be described. PHYSICAL EVIDENCE Services are mostly intangible. PRODUCT & SERVICE Variety Quality Design Features Brand name Packaging Sizes Add-ons Warranties Returns 2.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.