Challenges and Opportunities In the New Economy

Strategic Marketing

Planning

Challenges and Opportunities

In the New Economy



_{Power Shift to Customers}



_{Massive Increase in Product Selection}



_{Changing Value Propositions}



_{Shifting Demand Patterns}



_{New Sources of Competitive Advantage}



_{Privacy, Security, and Ethical Concerns}

Major Marketing Activities

and Decisions

(1 of 4)



_{Strategic Planning}



_Strategy



_{Tactical Planning}



_{Research and Analysis}



_{Internal Analysis}



_{Competitive Intelligence}



_{Environmental Scanning}



_{Situation Analysis}

Major Marketing Activities

and Decisions

(2 of 4)



_{Developing Goals and Objectives}



_{SWOT Analysis}



_{Developing and Maintaining}

Customer Relationships



_{Transactional Marketing}



_{Relationship Marketing}



_{Marketing Strategy Decisions}



_{Competitive Advantage}

Characteristics of Transactional

and Relationship Marketing

1-5

Major Marketing Activities

and Decisions

(3 of 4)



_{Market Segmentation and Target Marketing}

 _{Market Segmentation}  _{Target Markets}



_{Product Decisions}

 _{Product Positioning}



_{Pricing Decisions}

 _{Leads to revenue and proft}

 _{Directly connected to customer demand}  _{Easy to change}

 _{Major quality cue for customers}

Major Marketing Activities

and Decisions

(4 of 4)



_{Distribution and Supply Chain Decisions}

 _{Distribution and Supply Chain Management}  _{Supply Chain}



_{Promotion Decisions}

 _{Integrated Marketing Communications (IMC)}



_{Implementation and Control}

 _{Marketing Implementation}



_{Social Responsibility and Ethics}

 _{Social Responsibility}  _{Marketing Ethics}

Taking On the Challenges of

Marketing Strategy

(1 of 2)



_{Unending Change}

 _{Customers change, competitors change, and marketing}

organizations change



_{Evolution of Marketing and Business Practices in}

Society



_{Increasing Demands of Customers}



_{Overall Decline in Brand Loyalty of Customers}



_{Increasing Price Sensitivity Among Customers}



_{Increasing Customer Cynicism about Business and}

Marketing Activities

Taking On the Challenges of

Marketing Strategy

(2 of 2)



_{Competing in Mature Markets}



_{Little Real Diferentiation Among Product Oferings}



_{Increasing Expansion into Foreign Markets}



_{Increasing Numbers and Strength of Foreign}

Competitors



_{Aggressive Cost-Cutting Measures in Order to}

Increase Competitiveness



_{Increasing Cooperation with Supply-Chain Partners}

and Competitors

2-10

The Strategic Planning

Process



_{Marketing Plan}



_“

_{…a written document that}

provides the blueprint or outline of

the organization

’

s marketing

activities, including the

2-11



_{What role, if any, should customers}

play in the strategic planning

process? Should they have a voice

in developing the organizational

mission, marketing goals, or the

marketing strategy?

2-12

2-13

Organizational Mission vs.

Organizational Vision

(1 of 2)



_{Elements of the Mission}

Statement



_{Five basic questions to be}

answered:



_{Who are we?}



_{Who are our customers?}



_{What is our operating philosophy?}



_{What are our core competencies or}

competitive advantages?



_{What are our concerns and interests}

related to our employees, our

2-14

Organizational Mission vs.

Organizational Vision

(2 of 2)



_{Mission Width and Stability}



_{Width: Too broad or too narrow?}



_{Stability: Frequency of modifcations}



_{Customer-Focused Mission}

Statements



_{Ben and Jerry}

_’

_{s 3-part Mission}

Statement



_{Product Mission}



_{Economic Mission}



_{Social Mission}

2-15



_{Business-Unit Strategy:}

 _{The central means for:}

 _{Utilizing and integrating the organization}’s resources  _{Carrying out the organization}’s mission

 _{Achieving the organization}’s desired goals and objectives

 _{Associated with developing a competitive advantage}  _{Determines the nature and future direction of each}

business unit

 _{Essentially the same as corporate strategy in small}

businesses

2-16



_{All business functions must support}

the organization

’

s mission and

goals.



_{Functional objectives should be}

expressed in clear, simple terms.



_{All functional objectives should be}

reconsidered for each planning

period.

2-17



_{Functional strategies are designed to integrate}

eforts focused on achieving the area

’

s stated

objectives.



_{The strategy must:}

 _{(1) Fit the needs and purposes of the functional area}  _{(2) Be realistic with the organization’s resources and}

environment

 _{(3) Be consistent with the organization’s mission}

goals, and objectives.



_{The efects of each functional strategy must be}

evaluated.

2-18



_{Involves activities that execute the}

functional strategy.



_{Functional plans have two target}

markets:



_{(1) External market}



_{(2) Internal market}



_{A company must rely on its internal}

market for a functional strategy to be

implemented successfully.

2-19



_{Designed to keep activities on target with goals and}

objectives



_{Coordination among functional areas is a critical}

issue

 _{Open lines of communication is the key}



_{Evaluation and control is both an ending and}

beginning:

 Occurs after a strategy has been implemented

 _{Serves as the beginning point for planning in the next}

cycle

2-20



_{Detailed formulation of the actions}

needed to carry out the marketing

program



_{An action document:}



_{The handbook for marketing implementation,}

evaluation and control



_{Not the same as a business plan}



_{Requires a great deal of information from}

many diferent sources

2-21



_{Should be well organized}



_{A good marketing plan outline is:}



_{Comprehensive}



_Flexible



_Consistent



_Logical

2-22

Marketing Plan Structure

2-23



_{I. Executive Summary}

 _{Synopsis of the overall marketing plan}

 _{Introduces major aspects of the marketing plan}



_{II. Situation Analysis}

 _{Summarizes information about 3 key environments:}



_{Internal environment}



_{Customer environment}



_Firm

_’

_{s external environment}

2-24



_{III. SWOT Analysis}

 _Strengths  _Weaknesses  _{Opportunities}  _Threats

 _{Analysis of the SWOT matrix}  _{Establishing a strategic focus}

2-25



_{IV. Marketing Goals and Objectives:}

 Formal statements of desired and expected outcomes of the marketing plan

 Goals:

 Broad, simple statements of what is to be accomplished

 Objectives

 More specifc and essential to planning



_{V. Marketing Strategy:}

 Primary target market and marketing mix

 _{Secondary target market and marketing mix}

2-26  _{VI. Marketing Implementation}

 _{1. What specifc marketing activities will be undertaken?}  _{2. How will these activities be performed?}

 _{3. When will these activities be performed?}

 _{4. Who is responsible for the completion of these}

activities?

 _{5. How will the completion of planned activities be}

monitored?

 _{6. How much will these activities cost?}  _{VII. Evaluation and Control}

 _{Formal marketing control}  _{Informal marketing control}  _{Financial assessments}

2-27



_{Tips for using the marketing plan}

framework to develop a marketing

plan:



_{Plan ahead}



_{Revise, revise, revise}



_{Be creative}



_{Use common sense and judgment}



_{Think ahead to implementation}



_{Update regularly}



_{Communicate with others}

2-28



_{A good marketing plan will:}

 (1) Explain both the present and future situations of the organization

 (2) Specify the outcomes that are expected

 _{(3) Describe the specifc actions that are to take place}  _{(4) Identify the resources that will be needed}

 (5) Permit the monitoring of each action and its results



_{Communicating the strategy to top executives is}

paramount.

2-29



_{Top managers ask two questions:}

 _{(1) Will the marketing plan achieve the desired}

goals and objectives?

 _{(2) Are there alternative uses of resources that}

would better meet objectives?



_{The marketing plan is most often prepared by the}

Marketing Director or VP of Marketing



_The

_final

_{approval lies with the President, Chairman}

or CEO

2-30



_{A Market-Oriented Organization:}

 Shifts its focus:

 _{From products to the requirements of market segments}  From transactions to relationships

 _{From competition to collaboration}

 Puts customer’s needs and wants frst

 _{Focuses on long-term, value-added relationships}

 Instills a corporate culture that puts customers at the top of the organizational hierarchy

 Cooperates with suppliers and competitors to serve customers better

Strategic Planning in the

Market-Oriented