Introduction

Strategic Marketing
Management
 What is Strategy?
Strategy is the direction and scope of
an organisation over the long term,
which achieves advantage in a
changing environment through its
configuration of resources and
competences with the aim of
fulfilling stakeholder expectations.
 Characteristics of Strategic Decisions

Long-term direction
Scope of an organisations activities
Competitive advantage
Strategic fit with business environment
Organisation resources and
competences
Values and expectations of power
players
Implications of Strategic Decisions

Complexity Integration
Uncertainty Relationships
Operational and networks
decisions Change
Levels of Strategy

Corporate-
level
strategy

Business-level
strategy

Operational strategy
 What is a Strategic Business Unit?

A strategic business unit (SBU)

is a part of an organisation for
which there is a distinct
external market for goods or
services that is different from
another SBU.
 Vocabulary of Strategy

Mission Strategic capability

Vision Strategies
Goal Business model
Objective Control
 Vocabulary of Strategy: Nokia
Vision/Mission
Connecting is about helping people
feel close to what matters.
Wherever, whenever, Nokia believes
in communicating, sharing, and in
the awesome potential in
connecting the 2 billion who do with
the 4 billion who dont.
 Vocabulary of Strategy:
Kingston University
Mission
To promote participation in higher
education, which it regards as a
democratic entitlement; to strive for
excellence in learning, teaching, and
research; to realise the creative potential
and fire the imagination of all its
members; and to equip its students to
make effective contributions to society
and the economy.
 THE PLANNING PROCESS
Planning is simply the process of deciding in
the present what to do in the future.
It involves laying down courses of action for a
specified time period which will utilise
resources in the most effective manner and
which will work towards the achievement of a
specified goal.
 The process can be split into
five stages
Where are we now?
Where do we want to be?
How can we get there?
Which way is best?
How can we ensure arrival?
 Consider the following
A Student planning a holiday
Consider the following
 Planning Gap
Planning Gap this is the difference between
the desired future and the likely future
The activities that is undertaken to identify
the gap is known as gap analysis.
Planning Gap
 Importance of planning
Planning is the life-blood of the
organisation. NO PLANNING NO
FUTURE!
Risk reduction
Reduction of uncertainty
Setting targets and standards
Guidance
Gains commitment
Improves decision making
 DEVELOPING PLANS
A plan is the outcome of the planning
process.
formal plan which is very detailed, or an
outline plan which is a skeleton of what
is proposed.
At any level in the organisation, every
plan should have:
1.Objectives 3.Strategies
2.Tactics/programmes 4.Controls.
 Policy
Policy is expressed in statements made by the
company about how it wants to operate.
Policy relates directly to how the business is
conducted. Examples of policy statements include:
General statements of business operations:
It is company policy to donate 10% of all net profits to
local charity.
Detailed operational practices:
Personnel procedures equal opportunities policy.
Customer care procedures policy of refunds with no
questions asked.
 Objectives What is Being Aimed For
Objectives should be "SMART".
Specific
Measurable
Achievable
Realistic
Timed
Objectives may be quantitative or
qualitative.
 Quantitative
Quantitative objectives are those in which outcomes are
expressed in terms of numbers relating to money,
percentages, periods of time, output figures, etc. Egs are:
"To achieve 5% year-on-year growth in profit after tax for the
next five years."
"To effectively reduce operating costs by a total of 20% over the
next five years and, in the same time period, to achieve growth
in profit after tax by 8% each year."
"To achieve 15% return on investment in the next tax year."
Sometimes the actual target figures will be given in the
statement:
"To achieve 5,000,000 increase in profit in 2002, which
represents a growth of 15% on 2000 profit levels."
 Qualitative
Qualitative objectives relate to service levels to be
achieved, image, position, ethics, etc.
The following is an excerpt from a statement of objectives
published in the annual statement of a police force in
northern England: "Within five years or as soon as is
practicable, to have a police force which:
is more open, relaxed and honest with ourselves and the
public;
is more aware of our environment, sensitive to change
and positioning ourselves to respond to change;
is more closely in touch with our customers, puts them
first and delivers what they want quickly, effectively and
courteously;
is the envy of all other forces."
 Strategies How to Achieve the Objective
The functions of a plan are to minimise conflict
and to get the maximum from resources, by
ensuring the coordination not just of purpose
but of approach i.e. strategy.
The strategy is simply the statement of
method(s) that will be used to achieve the
objective.
These can be complex or simple, depending on
the circumstances and the level or complexity of
the plan itself.
 Tactics/Programmes
The Operational Activities Involved
The tactics/programmes are the details of the plan. They spell
out:
Responsibilities - Who has to do something for example,
personnel department to recruit new people, marketing
department to design advertising, purchasing department to
obtain materials, etc.
Time -When something has to be done for example, Quarter
1/Year 1, or first week. The time is important and it must fit in
with the overall time of the objectives. Every plan should have a
timetable so that people can see how it is progressing.
Money - The allocation of the allowed budget for example, 10%
to personnel, 15% to marketing, 25% to production, etc.
Depending on the level, the plan may be very specific on what has
to be done with the money.
 Controls Measurements
once you know what the time, money or any
other aspects are for a plan, you can
automatically set the measurement criteria.
A control is therefore a standard, a target or an
expectation. Our sample objective has two
controls (8% and two years) which allow us to
measure outcome.
Control can be based on anything that is
appropriate to the circumstances of the plan,
e.g. number of orders per salesman; number of
items manufactured, etc.
 From Planning to Plans
It is important to distinguish between
the activities of planning the things
which are done to produce the plan
and the plan itself, which is the
outcome of the planning activity.
The relationship between the two is
shown in the following table.