Week 3

MRKT 281-001N

In the previous lesson, and using Rowan Manufacturing as the example, we understand the basic
intensive growth strategies that apply to marketing.

However, before any marketing department (or any other functional department for that matter, such
as Production, H.R., Finance, Accounting, etc.) can set their strategies, they must FIRST have the
outcomes of the Corporate Strategic Planning Process. These outcomes help guide and determine
the type of marketing strategy followed.

So – let’s take a step back from Marketing Strategic Planning, and look at Corporate Strategic
Planning.

In the above diagram, you will note that objectives precede strategies.

In planning, an objective is a goal which is SMART, and a strategy is the way to achieve the
objective,

Where SMART is S: specific

M: measurable

A: achievable

R: realistic

T: time-bound

In other words, the objective is the destination, while the strategy is the map or GPS to get there.
Based on SMART, the following goals would NOT be good corporate objectives:

“To deliver a 20% increase in after-tax profit” (time?)

“To grow by 20% by the end of fiscal 2017” (measurable? Is growth sales, profits, market share,
etc.?)

“To launch a new product in the baby diaper market and achieve an 85% market share before the
end of fiscal 2017” (achievable? Realistic to expect to dominate the market this quickly and with a
new untried product?)

“To become the #1 rated college among freshmen in Michigan colleges in the 2017/2018 academic
year” (measurable? #1 in satisfaction, entertainment on campus, academic grades, or what? Private
or public institutions?)

Consider Corporate Strategic Planning as the first step in guiding an organization. This process
reflects:

(1) Management's fundamental assumptions about the future economic, technological, and
competitive environments.

(2) Setting of objectives to be achieved within a specified timeframe.

(3) Performance of SWOT analysis.

(4) Selecting strategies to achieve the goals.

(5) Formulating, implementing, and monitoring the operational or tactical plans to achieve interim
objectives.

(Read more: http://www.businessdictionary.com/definition/corporate-strategic-planning.html)

The order of steps in the corporate strategic planning process:

1. Conduct an environmental analysis (scanning plus analysis)

2. Conduct a SWOT analysis for the firm (strengths, weaknesses, opportunities, threats)
3. Develop a mission statement
4. Set the corporate objectives
5. Decide on the corporate strategy
Note that corporate strategy is “concerned with broad issues such as corporate culture,
competition, differentiation, diversification, interrelationships between business units, and
environmental and social issues.” In other words, the corporate strategy does not tell marketing
managers how to do their jobs, but sets up a general direction to which marketers must adhere.
Now, read the Kellogg’s case, attached. It should clarify this difference.