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 Mission & Objectives Strategy: •Corporate •Business •Functional Operating Plans .

” John Scully .Strategic Marketing “Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.

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 bureaucratic (Source: Subhash Jain. 6th Ed. Marketing Planning & Strategy.) .

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  Strategic Marketing Detailed understanding of market needs. and Proactive use of competitive intelligence at the corporate as well as SBU’s levels Focuses on what the firm do best at the SBU level To secure and maintain a sustainable competitive advantage .

GE .” Philip Kotler  “If you don’t have a 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.” Jack Welch. don’t compete.

Aakers) .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 influence customers (Source: Strategic Marketing Management.

Seeking Competitive Advantages  Positions of advantage  Superior customer value  Lower relative total cost  Performance advantages  Customer satisfaction. Superior business process . Market Share. Loyalty. Superior resources.  Sources of advantages Profit  Superior skills & knowledge.

Competitors & the Corporation Strategic Marketing Decisions .Key Elements of Marketing Strategy Formulation  The strategic 3 Cs   Environment analysis -.PEST  Where to compete  How to compete  When to compete  Customers.

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 .

Weaknesses. capability etc. decide on future options . Opportunities  Identify & prioritize major problems and opportunities: selection of key issues  Based on the firm’s core competencies. market definition. industry structure  SWOT Analysis & Threats  Strengths.Situation Analysis  Internal Analysis—company.  External Analysis—customers.

independent.Marketing Audit “Marketing audit is a comprehensive. systematic. strategies. and periodic examination of a company’s—or business unit’s—marketing environment. objectives. 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 .