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Corporate Strategic

Planning
Asia-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 Strategy:
Mission & •Corporate Operating
Objectives •Business Plans
•Functional
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
long-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 the 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
(cont’d)

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


 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
(Source: Subhashbureaucratic
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—
Strategic Marketing
 Strategic Marketing requires
 Detailed understanding of market
needs, and
 Proactive use of competitive
intelligence at the corporate as well
as SBU’s levels
 Strategic Marketing
 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
(Source: Strategic Marketing Management, Aakers)
influence
customers
Seeking Competitive Advantages
 Positions of advantage
 Superior customer value
 Lower relative total cost
 Performance advantages
 Customer satisfaction, Loyalty, Market
Share, Profit
 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
 Environment analysis -- PEST
  Strategic Marketing Decisions
 Where to compete
 How to compete
 When to compete
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—company; capability
etc.
 External Analysis—customers, market
definition, industry structure
 SWOT Analysis
 Strengths, Weaknesses,
Opportunities & Threats
 Identify & prioritize major problems
and opportunities: selection of key
issues
 Based on the firm’s core
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
 Must cover all marketing areas
 Systematic
 Sequential diagnostic steps
 Independent
 Internal & external auditors
 Periodic
 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