CSF 3 CSF 4 CSF 5
Key strategic issues
This is an extremely important section, as its purpose is to list (possi- bly by strategic business unit) what the key issues are that face the company. In essence, this really consists of stating the major strengths, weaknesses, opportunities and threats and indicating how they will be either built on or dealt with.
Key strategic issues might consist of technology, regulation, competi- tive moves, institutional changes, and so on.
Strategic objectives by strategic business unit and key statistics This is a summary of the objectives of each strategic business unit. It should obviously be tailored to the specific circumstances of each com- pany. However, an example of what might be appropriate follows:
Objectives Market Share
Relative market share
Real growth
Key statistics Sales per
employee
Contribution per employee
etc.
Strategic business unit
Now þ5 years
Now þ5 years
þ5 years
p.a. Now þ5 years
Now þ5 years
SBU1 SBU2 SBU3 SBU4 SBU5
13 – A step-by-step marketing planning system for service businesses 403
Alternatively, or additionally, put a portfolio matrix indicating the current and proposed relative position of each of the strategic business units.
Financial goals (next five years)
Here, draw a bar chart (or a number of bar charts) showing the rele- vant financial goals. At the very least, show turnover and profit by strategic business unit for the next five years.
Appendices
Include whatever detailed appendices are appropriate. Try not to rob the total plan of focus by including too much detail.
Timetable
The major steps and timing for the annual round of strategic and oper- ational planning are described in the following pages. The planning process is in two separate stages, which are interrelated to provide a review point prior to the detailed quantification of plans. ‘Stage One’
involves the statement of key and critical objectives for the full three- year planning period, to be reviewed prior to the more detailed quan- tification of the tactical one-year plan in ‘Stage Two’ by 30 November, for subsequent consolidation into the company plans.
Planning team’s ‘kick-off’ meetings (to be completed by 31 March) At this meeting, the planning team will outline their expectations for the following planning cycle. The purpose of the meeting is to give the plan- ning team the opportunity to explain corporate policy, report progress during the previous planning cycle, and to give a broad indication of what is expected from each SBU during the forthcoming cycle. The plan- ning team’s review will include an overall appraisal of performance against plan, as well as a variance analysis. The briefing will give guid- ance under some of the following headings (as appropriate):
1. Financial
Gross margins Operating profits Debtors
Creditors Cash flow.
2. Manpower and organization Organization
Succession
404 Marketing Plans for Services
Training Remuneration.
3. Export strategy 4. Marketing
Service development Target markets Market segments Volumes
Market shares Pricing Promotion
Marketing research Quality control Customer service.
This is an essential meeting prior to the mainstream planning activity which SBUs will subsequently engage in. It is the principal means by which it can be ensured that plans do not become stale and repetitive due to over-bureaucratization. Marketing creativity will be the key- note of this meeting.
Top-down and bottom-up planning
A cornerstone of the marketing planning philosophy is that there should be widespread understanding at all levels in the organization of the key objectives that have to be achieved, and of the key means of achieving them. This way, the actions and decisions that are taken by managers will be disciplined by clear objectives that hang logically together as part of a rational, overall purpose. The only way this will happen is if the planning system is firmly based on market-centred analysis which emanates from the SBUs themselves. Therefore, after the planning team’s ‘kick-off’ meetings, audits should be carried out by all managers in the SBUs down to a level which will be determined by SBU managers. Each manager will also do SWOT analyses and set tentative three-year objectives and strategies, together with proposed budgets for initial consideration by their superior manager. In this way, each superior will be responsible for synthesizing the work of those managers reporting to them.
The major steps in the annual planning cycle are listed below and depicted schematically in Figure 13.3 (shown earlier as Figure 11.19).
13 – A step-by-step marketing planning system for service businesses 405
Activity Deadline
Planning team’s ‘kick-off’ meetings with SBU managers to discuss overall guidelines for the three-year planning period31 March
Prepare marketing audits, SWOT analyses, proposed marketing objectives, strategies and budgets (cover the full three-year planning horizon)31 May
‘Stage One’meetings: presentation to the planning team for review31 May
Prepare short-term (one-year) operational plans and budgets, and final three-year SBU managers’consolidated marketing plans
31 October
‘Stage Two’meetings: presentation to the planning team30 November
Final consolidation of the marketing plans 31 DecemberAnd finally, a test to check the quality of your strategic marketing plan
This test has been developed by Brian Smith, one of the author’s PhD J
F M A M J J A S O
N D
Start of budget year
Issue of strategic planning letters or chief executive’s
‘kick-off’ meetings (open loop point 1) Management audits Marketing audits SWOT analyses Objectives, strategies Budgets (proposed) long term (i.e. draft strategic marketing plans are prepared)
Headquarters’ review
Revise and agree long-term objectives, strategies, budgets (open loop 2)
(i.e. strategic marketing plans are finalized) Preparation of short-
term operational plans and budgets (1 year)
Headquarters consolidation of operational and strategic plans
Strategic and operational planning
Figure 13.3 Strategic and operational planning cycle
406 Marketing Plans for Services
output of the process of strategic marketing planning. It consists of 12 tests. Please answer them honestly, otherwise there is no point in doing them.
If you get a high score, congratulations. If you get a low score, you have much work to do, but nothing that cannot be accomplished by implementing what has been written in this book.
Test 1
Our marketing strategy makes it clear what markets or parts of the market we will concentrate our efforts onIf your strategy attacks all of your market sector (e.g. retail gro- ceries, super-conducting magnets) equally¼0
If your strategy is focused by descriptor group (e.g. ABC1s, large firms, SMEs, etc.)¼1
If your strategy attacks needs-based segments (e.g. efficacy focused customers with high ego needs)¼2
If you don’t know¼–1 Test 2
Our marketing strategy makes clear what actions fit with the mar- keting strategy and what do notIf your strategy allows complete freedom of action¼0 If your strategy allows a high degree of freedom of action¼1 If your strategy makes most of your action plan decisions for
you¼2
If you don’t know¼–1 Test 3
Our marketing strategy clearly defines our intended competitive advantage in the target market segmentsIf there is no strong and supported reason why the customer should choose you¼0
If there is a reason the customer should buy from you but no strong proof¼1
If you can state clearly the reason the customer should buy from you and not the competitor and substantiate that reason¼2 If you don’t know¼–1
Test 4
Our marketing strategy allows synergy between the activities of the different parts of the organizationIf the strategy is a compromise of what each department is capa- ble of¼0
13 – A step-by-step marketing planning system for service businesses 407
If the strategy uses the strengths of only one or two depart- ments¼1
If the strategy uses the best strengths of all departments¼2 If you don’t know¼–1
Test 5
Our marketing strategy is significantly different from that of our competitors in our key market segmentsIf we attack the same customers with the same value proposi- tion¼0
If we attack the same customers OR use the same value proposi- tion¼1
If we attack different customers with a different value proposi- tion¼2
If you don’t know¼–1 Test 6
Our marketing strategy recognizes and makes full allowance for the needs and wants of our target customersIf you only meet the basic functional needs (safety, regulation, efficacy)¼0
If you also meet the higher functional needs (efficiency, service, price)¼1
If you also meet the emotional and ego needs (brand, confi- dence)¼2
If you don’t know¼–1 Test 7
Our marketing strategy recognizes and makes full allowance for the strategies of our competitorsIf you are ignoring the competitors’ strategy¼0
If you are allowing for some of the competitors’ strategy¼1 If you are allowing for all of the competitors’ strategy¼2 If you don’t know¼–1
Test 8
Our marketing strategy recognizes and makes full allowance for changes in the business environment that are beyond our control, such as technological, legislation or social changeIf your strategy is designed for today’s conditions¼1
If your strategy allows for one or two changes (e.g. technology or
408 Marketing Plans for Services
If your strategy considers the combined effects of all the external factors¼2
If you don’t know¼–1 Test 9
Our marketing strategy either avoids or compensates for those areas where we are relatively weak compared to the competitionIf you have taken little or no account of your relative weak- nesses¼0
If you are trying to fix your relative weaknesses¼1
If your strategy means that your relative weaknesses don’t mat- ter¼2
If you don’t know¼–1 Test 10
Our marketing strategy makes full use of those areas where we are relatively strong compared to the competitionIf you have taken little or no account of your relative strengths¼0
If you are trying to use your relative strengths¼1
If your strategy means that your relative strengths become more important¼2
If you don’t know¼–1 Test 11
Our marketing strategy, if successfully implemented, will meet all the objectives of the organizationIf your strategy, fully and successfully implemented, does not deliver your financial or non-financial objectives¼0
If your strategy, fully and successfully implemented, delivers only your financial objectives¼1
If your strategy, fully and successfully implemented, delivers your financial and non-financial objectives¼2
If you don’t know¼–1 Test 12
The resources available to the organization are sufficient to imple- ment the marketing strategy successfullyIf you have neither the tangible nor the intangible resources to implement the strategy¼0
If you have only the tangible or the intangible resources, but not both¼1