Part 3

Presented by
Mr. Ahmed El Seddawy

AASTMT
“Market-oriented strategic planning is the
managerial process of developing and
maintaining a practical fit between the
organisation’s objectives, skills and resources
and its changing market opportunities”.

“The aim of strategic planning is to shape and

reshape the company’s businesses and products
so that they yield target profits and growth”.

Kotler, P. (1997) Marketing management, (9th ed), Upper Saddle River, NJ: Prentice
Hall International, p.63
 Competition - competitive forces, analysing competitors
 Monitoring environmental change - managing strategic
environmental issues
 Opportunities - market and sales opportunity analysis
 Competitive advantage - distinctive capabilities, cost and
differentiation strategies, product differentiation strategies
 Resource reviews
 Strategic fit - fitting both market opportunities and internal
capabilities
There are five types of company:

1. those who make things happen

2. those who think they make things happen
3. those who watch things happen
4. those who wonder what happened, and
5. those that did not know that anything had
happened
 Planning is essential
 It gives a sense of purpose and direction
 Stops constant fire-fighting
 Stops panicking
 Put managers in control
 marketing strategy is a cycle of integrated actions leading
to a sustainable competitive advantage

 strategic marketing seeks to secure and maintain

competitive advantage in order to meet the goals of the
organisation

 it involves consideration of the interaction of three key

variables: external environment, organisation goals and
strategies
 E-Marketing Planning and Strategies

1 objectives Strategic Focus

vision
what business are we in?
what business should we be
corporate objectives in?
what business should we
not be in?
2 situation marketing audit
review
SWOT analysis identify opportunities

target markets
formulate strategies product, price, promotion
3 strategies
and plans and
forecasts distribution strategies

budgets
4 action
Implementation programme action: products, prices,
promotion, distribution
control

Performance review and evaluation

 An e-marketing strategy needs to be fully
integrated into an organisation’s business and
marketing strategies and plans
 Rather than have a separate e-marketing
strategy it is important to have an integrated
marketing plan with an e-marketing plan as a
sub-set of that marketing plan
 E-marketing strategy as a detailed sub-set
of overall marketing planning
 But also part of the investment for a new
web site
 And part of the investment in upgrading
and extending a website
Environment-strategy-performance model

Legal-ethical
Technology internet markets
E Competition
Other factors

SWOT

E-marketing plan

S
E-business
strategy E-marketing mix
E-marketing strategy
CRM

P Performance metrics

Source: Strauss, El-Ansary & Frost (2006:23)

Environmental Influences

1. broadenvironmental variables: economy, technology,

society

2. Industryvariables: industry structure, lifecycle,

specific technology, structure of competition,
strategies and performance

3. market
variables: lifecycle, segment structure,
demand influences, purchase size and frequency
Goals (Objectives)

sustainable competitive advantage as a means

to sales, market share, profit and other
objectives to satisfy stakeholders
The Ashridge Mission Model

PURPOSE
why the company
exists

STRATEGY
competitive VALUES
position and what the company
distinctive believes in
competence

STANDARDS AND BEHAVIOURS

policies and behaviour patterns
underpinning the distinctive
competence and value system
Factors influencing company marketing strategies

Demographic/ Marketing and sales Technical/

economic information system physical
environment environment

Marketing and sales

intermediaries
suppliers

product

Target
place customer price Marketing
s
planning system
promotion

publics
competitors publics
Marketing
organisation and Social/
Political/ Marketing & sales implementation
legal cultural
organisation system
environment environment
system
Factors influencing
competitive Environmental factors
success e.g. rate of technological change
nature of competition
intensity of competition

Organisational factors
Strategic factors
e.g. size
e.g. long-term objectives
structure
strategic time horizon
culture
product-market strategy
innovation capability

Marketing factors Managerial factors

e.g. use of market research e.g. communication
customer service attitudes
product quality leadership style

Business Performance Source: after Baker & Hart

(1989)
Strategies
 bedrock strategy - to build and sustain
capabilities of reputation, know-how,
relationships, physical resources
 then determine strategies to transform these
into positional advantage vis a vis
competitors
 must derive strategies for market positioning
in the chosen target segments
 have strategies to deliver continuing
customer satisfaction
Value creation for customers

Used to create Provide

Organisation
value for customers with
capabilities
customers desired benefits

Careful assessment
of these capabilities

what capabilities to
build
Internet
analysis of
website and e-
opportunities
commerce
choice of opportunities
to address
Creating value for customers

 surest way of gaining and keeping

competitive advantage is to create better
value for customers
 customer come back for more and a long-

term customer relationship develops

 The internet and development of e-

commerce offers great opportunities for

creating value for customers
 value-defining processes [influenced by e-marketing]

◦ market sensing to understand what customers value (what

benefits buying)
◦ assess what the organisation creates from a customer perspective
◦
 value-developing processes [influenced by e-marketing]

◦ what creates customer value in the value chain?

◦ how can customer value be enhanced through product and service
development?
◦ what facilitates and inhibits better product or service delivery
 Value-delivering processes [influenced by e-marketing]

◦ can the product or service be better delivered?

◦ can it be made available at better times in better locations?

 Value-maintaining processes [influenced by e-marketing

◦ customer linking, channel bonding, managing brand equity

 But customer expectations change

 what customers consider excellent value today will probably be

average value tomorrow

 customers are increasingly demanding

 this is exacerbated by competitors who see advantage in meeting

these higher demands

 other companies develop product and service enhancements which

set new expectation standards

 change is endemic and built-in to most markets

 therefore, there is a need to continuously monitor and adapt

Potential benefits of an Internet site:

 Improvement in corporate identity and image

 Improved customer service
 Increased visibility among targeted segments
 Market expansion
 Online transactions
 Lower communication costs

Source: Sterne (1999)

Website generations:
1. First generation: static electronic brochures,
supplier broadcasting to many potential and
existing customers
2. Second generation: interactive website, with
product stock availability, FAQs and pricing
information; still supplier driven
3. Third generation: fully interactive website,
personalisation and market research
information collection
 Deliberate and emergent strategies

In
te
nd
e d
st
ra
te
g y
Deliberate strategy

Unrealised Realised strategy

strategy

Source: Baker, M.J. (2000)

Marketing strategy and management,
Emergent strategy (3rd Ed), Basingstoke: Macmillan
Int
Unpredictable
en factors
de
ds
t ra
teg
y

Course
plotted
Desired objective

Source: Baker, M.J. (2000)

Marketing strategy and management,
Predictable (3rd ed), Basingstoke: Macmillan
factors
Strategic planning calls for action on:
 managing the company’s businesses as an
investment portfolio (each business has a
different profit potential so should allocate
resources accordingly)
 assessing each business by considering the
market’s growth rate, the company’s position
and fit in that market
 strategy - each business needs to develop a
game plan for achieving its long-run
objectives
 Basic Conditions
Supply Demand
raw material price elasticity The structure-conduct-
technology substitutes performance paradigm
product durability rate of growth
value/weight cyclical, seasonal

Market structure
number of buyers and sellers
product differentiation
barriers to entry
cost structures Public Policy
vertical integration taxes and subsidies
diversification regulation
price controls
Conduct antitrust
pricing behaviour information
product strategy and advertising
research and innovation
plant investment
legal tactics

Performance
production and allocative efficiency
progress, full employment
equity
 Threat of
new entrants Porter’s five
forces

The industry
Bargaining power jockeying for
of suppliers Bargaining power
position among
of customers
current
competitors

Threat of substitute
products or services
 Planning Implementing Controlling
corporate planning
organising Measuring results
division planning

business planning diagnosing results

implementing
product planning
E-marketing action taking corrective action
planning
 External
environment
(opportunities and
threats)

Goal Strategy
Business formulation formulation
mission SWOT Analysis

Internal
environment
(strength and
weaknesses Programme
analysis) formulation

Business strategic planning implementation

process

Feedback
and control
1. Objectives: what business do we want to
be in? (where do we want to be?)
2. Situation Review: where are we now?
3. Strategies, Tactics and Plans: how do we
get there?, how do we exactly get there?
4. Action and Control: doing it and asking
did we get there?
 Business
definition Preliminary
objectives

Environmental
situation
Strategic
Opportunities thinking
and threats Analysis

Competitive •identify key

•resolve issues
situation issues
•evaluate
•develop
options
strategy
Strengths
options
and
Resources and weaknesses
capabilities

Decisions
Specification
Analysis of past •strategy
of present
performance strategy •performance
objectives
Corporate business planning

Internet marketing plan

(sub-set of marketing plan)

Design website

Control,
Implement website review, modify

Monitor website
Source: adapted from Chaffey et al (2000: 124)
Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke:
Macmillan
Chaffey, D. (2002) E-business and e-commerce management , Harlow: Financial
Times Prentice Hall, Chapter 5: E-Business Strategy and Chapter 8: E-
Marketing
Chaffey, D., Mayer, R., Johnston, K. & Ellis-Chadwick, F. (2003). Internet
marketing. (second edition). London: Pearson Education. Chapter 4: Internet
Marketing Strategy (third edition 2006)
Chaston, I. (2001) E-marketing strategy, London: McGraw-Hill
Kotler, P. (1997) Marketing management, (9th edition), Upper Saddle River, NJ:
Prentice Hall International
Sterne, J. (1999) World wide web marketing (2nd ed), New York: John Wiley
Strauss, J. and R. Frost (2001) E-marketing, Upper Saddle River, NJ: Prentice
Hall, Chapter 8: The E-Marketing Plan
Strauss, J., El-Ansary, A. and R. Frost (2006) E-marketing, (4th ed), Upper Saddle
River, NJ: Prentice Hall, Chapter 3: The E-Marketing Plan