Corporate Strategic Planning

AsiaAsia-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 longlong-

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 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 (contd)

MARRIOTT S 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 long Not quantified and not limited to a time period  E.g. 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.g. 10% growth in the next two years

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 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 SBU s 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 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, don t 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  Customer satisfaction, Loyalty, Market Share,
Profit

 Performance advantages  Sources of advantages

 Superior skills & knowledge, Superior

resources, Superior business process

Key Elements of Marketing Strategy Formulation

 The strategic 3 Cs


 Customers, Competitors & the Corporation  Where to compete  How to compete  When to compete

 Environment analysis -- PEST

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 Analysis  External Analysis industry structure  SWOT Analysis
& Threats
company; capability etc. customers, market definition,

 Strengths, Weaknesses, Opportunities

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

 Based on the firm s core competencies,

decide on future options

Marketing Audit
Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company s or business unit s marketing environment, objectives, strategies, 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

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