Who should carry out the audit?
Step 10 First year detailed implementation programme
In a one-year tactical plan, the general marketing strategies would be developed into specific sub-objectives, each supported by more detailed strategy and action statements.
A company organized according to functions might have an advertis- ing plan, a sales promotion plan, a pricing plan, and so on.
A product-based company might have a product plan, with objectives, strategies and tactics for price, place and promotion as necessary.
A market or geographically based company might have a market plan, with objectives, strategies and tactics for the four Ps as necessary.
Likewise, a company with a few major customers might have customer plans.
Any combination of the above might be suitable, depending on circumstances.
A written strategic marketing plan is the backdrop against which operational decisions are taken. Consequently, too much detail should be avoided. Its major function is to determine where the company is, where it wants to go and how it can get there. It should be distributed on a ‘need to know’ basis only. It should be used as an aid to effective management. It cannot be a substitute for it.
What should appear in a strategic marketing plan?
A strategic marketing plan lies at the heart of a company’s revenue- generating activities, such as the timing of the cash flow and the size and character of the labour force. The output of the marketing planning process is, of course, the strategic marketing plan summarized in the box in Figure 2.6. What should actually appear in a written strategic marketing plan is shown in Table 2.3. Further details and explanations about each of the components will be given in later chapters.
Corporate (or business) mission statement (qualitative, philosophical)
Corporate (or business) objectives (quantifies and operationalizes the mission statement)
Functional objectives e.g. marketing, financial, production, engineering (quantitative, measurable)
This framework should be borne in mind throughout the remainder of this book.
This process and its relationship to the other issues discussed in this chapter are summarized in Figure 2.9.
Table 2.3 What should appear in a strategic marketing plan 1 Start with a mission or purpose statement.
2 Next, include a financial summary which illustrates graphically revenue and profit for the full planning period.
3 Now do a market overview:
䊉 Whatisthe market?
䊉 Has the market declined or grown?
䊉 How does it break down into segments?
䊉 What are the trends in each?
Keep it simple. If you do not have the facts, make estimates. Use life cycles, bar charts and pie charts to make it all crystal clear.
4 Now identify the key segments and do a SWOT for each one:
䊉 Outline the major external influences and their impact on each segment.
䊉 List the key factors for success. There should be less than five or six.
䊉 Give an assessment of the company’s differential strengths and
weaknesses compared with those of its competitors. Score yourself and your competitors out of ten and then multiply each score by a weighing factor for each critical success factor (e.g. CSF1 = 60, CSF2 = 25, CSF3 = 10, CSF4 = 5). (Detailed instructions on how to do this are given in Chapters 5 and 13.)
5 Make a brief statement about the key issues that have to be addressed in the planning period.
6 Summarize the SWOTs using a portfolio matrix in order to illustrate the important relationships between the key points of your business.
7 List your assumptions.
8 Set objectives and strategies.
9 Summarize your resource requirements for the planning period in the form of a budget.
Figure 2.9
J F
M
A
M J J A S O
N D Headquarters consolidation of operational and strategic plans
Preparation of short-term operational plans and budgets (1 year)
Headquarters review Revise and agree long-term objectives, strategies, budgets (open loop point 2)
(open loop point 1)
• Management audits
• Marketing audits
• SWOT analyses
• Objectives, strategies
• Budgets (proposed) long term Implementation
of first year’s operational plan
Chief executive’s
‘kick-off’/briefing meetings
START
Figure 2.10 is another way of illustrating the total corporate strategic and marketing planning process. This time, however, a time element is added, and the relationship between strategic planning briefing, long- term strategic plans and short-term operational plans is clarified.
The position of key account planning in the cycle
There is much debate about this, but it will be clear from looking at the planning cycle in Figure 2.10 that key accountplanning must take place at the same time as, or even before, draft plans are prepared for a strategic business unit.
If this is not clear, let us give an example of a supplies company servicing the needs of a national health service. It will be seen there are four ‘markets’ within hospitals to be served. These are:
䊉 Medical
䊉 Administration
䊉 Catering
䊉 Energy Figure 2.10
Strategic and operational planning – timing
Definition:䊉
A key account is a major customer considered by the supplying company to be of strategic importance to the achievement of its own objectives. Hence, such a customer is singled out for special treatment
A B C D
Medical Admin.
Catering Energy
Corporate Plan
Marketing Plan
Segment Plan
Account
Plan 1 Account
Plan 2 Account
Plan 3 Account
Plan 4 Account
Plan 5 Account
Plan 6
Segment Plan Segment Plan
There will be a number of key accounts, or hospital groups, referred to here as Hospital Groups A, B, C, D etc. Each of these hospital groups may well have their own key account manager who has to plan for them.
Figure 2.11 illustrates this.
Thus, for example, the Key Account Manager for Hospital A has to prepare a draft plan across all four ‘markets’ and this would clearly be a key input to the planning process shown in Figure 2.10.