Winning Markets

Through
Strategic Planning, Implementation,
and Control

PowerPoint Presentation
By
Anonymous

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 0 in Chapter 4
 Objectives

 Understand how strategic

planning is carried out at the
corporate, division, and
business unit levels.
 Learn the major steps in the
marketing process.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 4
 Objectives

 Learn what type of content a

marketing plan includes.
 Understand how companies can
effectively manage the marketing
process.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 4
 Nature of Strategic Planning

Figure 4-1: The Strategic Planning, Implementation,

and Control Process

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 4
 Corporate and Division
Strategic Planning

 Planning activities include:

– Defining the Corporate Mission
– Establishing Strategic Business
Units (SBUs), and Assigning
Resources to SBUs
– Planning New Businesses,
Downsizing Older Businesses
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 4
 Corporate and Division
Strategic Planning

Mission statements define the

company’s major competitive scopes

 Industry scope  Vertical scope

 Products and  Market-segment
applications scope scope

 Competence scope  Geographical

scope

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 4
 Discussion Scenario

Critique the following hypothetical

mission statement.
“The overall mission of KDT is to
provide cutting edge Internet services
to consumer and business clients,
while increasing the value of our
shareholder’s investment.”

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 4
 Corporate and Division
Strategic Planning

 Strategic business units (SBUs)

share three characteristics:
– Single business or collection of
businesses which can be managed
separately
– Has own set of competitors
– Has manager responsible for
strategic planning and profits
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 4
 Corporate and Division
Strategic Planning

Figure 4-2:
The Boston
Consulting Group’s
Growth-Share Matrix

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 4
 Discussion Scenario

Coca-Cola markets several brands of

soft drinks and other beverages.
Could these brands be considered
SBUs? If not, how might you organize
Coca-Cola’s beverage-related SBUs?
Select several SBUs, and to the best
of your ability, classify them within the
growth-share matrix.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 4
 Corporate and Division
Strategic Planning

Figure 4-3 (part 1 of 2):

Market-Attractiveness
Portfolio Strategies

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 4
 Corporate and Division
Strategic Planning

Figure 4-3 (part 2 of 2):

Market-Attractiveness
Portfolio Strategies

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 4
 Corporate and Division
Strategic Planning

 Planning New Businesses and

Downsizing Old Businesses
– Involves taking advantage of one or
more of the following:
• Intensive growth
• Integrative growth
• Diversification growth
• Harvesting or divesting old businesses

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 4
 Corporate and Division
Strategic Planning

Visitors to the
Starbucks.com
web site can
subscribe to a
newsletter, shop
online, or order a
Starbucks catalog

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 4
 Corporate and Division
Strategic Planning

Figure 4-4:
The Business Strategic-Planning Process

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 4
 Business Strategic Planning

SWOT Analysis  Monitor key

forces for trends
 Opportunities and  For each trend,
threats stemming conduct an
from the external
MOA - Marketing
environment
Opportunity
 Internal strengths Analysis
and weaknesses
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 4
 Business Strategic Planning

SWOT Analysis  Brand awareness,

image, reputation
 Opportunities and  Distribution,
threats stemming pricing, customer
from the external loyalty, product
environment benefits
 Internal strengths  Finance, R&D,
and weaknesses manufacturing
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 4
 Business Strategic Planning

Effective Goals:

Must be Realistic

Must be Consistent

Must be Hierarchical

Must be Stated Quantitatively

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 4
 Discussion Scenario

Critique the following objectives:

Our objectives are to . . .
1) better serve customers.
2) be the best we can be.
3) increase market share.
4) maximize shareholder wealth.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 4
 Business Strategic Planning

Differentiation

Porter’s Generic
Focus Strategies

Overall cost leadership

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 4
 Business Strategic Planning

Travelocity’s
Web site helps
users plan the
entire trip --
flights, lodging,
and car rental.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 4
 Business Strategic Planning

 Program formulation and program

implementation involves:
– Developing supporting programs
– Estimating implementation costs
– Carefully managing the details so great
strategy isn’t ruined by poor
implementation
 Feedback and control is crucial
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 4
 The Marketing Process

Figure 4-5: Two Views of the Value-Delivery Process

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 4
 Business Strategic Planning

Steps in the Marketing Process:

Analyzing Marketing Opportunities

Developing Marketing Strategies

Planning Marketing Programs

Managing the Marketing Effort

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 4
 The Marketing Process

Figure 4-6:
Factors Influencing
Company Marketing
Strategy

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 4
 The Marketing Process

Marketing Plan Contents

 Executive summary  Marketing strategy
and TOC  Action programs
 Current situation  Financial
 Opportunity and projections
issue analysis  Controls
 Objectives

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 25 in Chapter 4
 Managing The Marketing Process

Methods of Organizing the Marketing Department

Function
Global Aspects
Geographic Area
Products or Brands
Corporate Divisions
Customers or Markets
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 26 in Chapter 4
 Managing The Marketing Process

 Building a Companywide Marketing

Orientation Requires:
– Commitment from top management
– Training programs; employee
empowerment
– Recognitions and rewards programs
– Modern marketing planning system
– Process-outcome focus
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 27 in Chapter 4
 Managing The Marketing Process

 Injecting more creativity into the

organization can be beneficial
 Successfully implementing programs
requires four sets of skills:
– Diagnostic skills
– Identification of company level
– Implementation skills
– Evaluation skills
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 28 in Chapter 4
 Managing The Marketing Process

Types of Control  Responsibility of

top and middle
management
 Annual plan
 Examines
 Profitability
whether planned
 Efficiency results are
 Strategic achieved

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 29 in Chapter 4
 The Marketing Process

Figure 4-7:
Financial Model of Return on Net Worth

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 30 in Chapter 4
 The Marketing Process

Evaluating Annual Performance:

Marketing expense- Market share
to-sales analysis analysis

Performance
Analysis
Financial Tools Market-based
analysis scorecard analysis
Sales analysis
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 31 in Chapter 4
 Managing The Marketing Process

Types of Control  Responsibility of

marketing
controller
 Annual plan
 Examines where
 Profitability
the company is
 Efficiency making and
 Strategic losing money

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 32 in Chapter 4
 Managing The Marketing Process

Types of Control  Responsibility of

line & staff and / or
marketing
 Annual plan controller
 Evaluates and
 Profitability attempts to
 Efficiency improve spending
efficiency of
 Strategic marketing
expenditures
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 33 in Chapter 4
 Managing The Marketing Process

Types of Control  Responsibility of

top management
and marketing
 Annual plan auditor
 Profitability  Examines whether
company is
 Efficiency pursuing its best
 Strategic opportunities

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 34 in Chapter 4
 Managing The Marketing Process

 Strategic controls should be

conducted periodically via:
– Marketing-effectiveness reviews
– Marketing audits
 Additional reviews to consider:
– Marketing excellence review
– Ethical and social responsibility review

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 35 in Chapter 4