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Chapter 4. Winning Markets Through Strategic Planning, Implementation, and Control. PowerPoint by Karen E. James Louisiana State University - Shreveport. Objectives. Understand how strategic planning is carried out at the corporate, division, and business unit levels.

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Chapter 4 l.jpg

Chapter 4

Winning Markets Through Strategic Planning, Implementation,

and Control

PowerPoint by Karen E. James

Louisiana State University - Shreveport

To accompany A Framework for Marketing Management, 2nd Edition


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Objectives

  • Understand how strategic planning is carried out at the corporate, division, and business unit levels.

  • Learn the major steps in the marketing process.

To accompany A Framework for Marketing Management, 2nd Edition


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Objectives

  • Learn what type of content a marketing plan includes.

  • Understand how companies can effectively manage the marketing process.

To accompany A Framework for Marketing Management, 2nd Edition


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Nature of Strategic Planning

  • Strategic planning requires actions in three key areas

  • Strategic planning takes place at the corporate, division, business unit and product levels

  • Marketing plans operate at strategic and tactical levels

To accompany A Framework for Marketing Management, 2nd Edition


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Corporate and Division Strategic Planning

  • Planning activities include:

    • Defining the Corporate Mission

    • Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs

    • Planning New Businesses, Downsizing Older Businesses

To accompany A Framework for Marketing Management, 2nd Edition


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Industry scope

Products and applications scope

Competence scope

Vertical scope

Market-segment scope

Geographical scope

Corporate and Division Strategic Planning

Mission statements define the company’s major competitive scopes:

To accompany A Framework for Marketing Management, 2nd Edition


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Corporate and Division Strategic Planning

  • Strategic Business Units share three characteristics:

    • Single business or collection of businesses which can be managed separately

    • Has own set of competitors

    • Has manager responsible for strategic planning and profits

To accompany A Framework for Marketing Management, 2nd Edition


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Corporate and Division Strategic Planning

  • SBUs are treated as investment portfolios. Resources are allocated by:

    • The BCG Growth-Share Matrix

      • Stars

      • Cash Cows

      • Question Marks

      • Dogs

    • The General Electric Market-Attractiveness Model

To accompany A Framework for Marketing Management, 2nd Edition


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Corporate and Division Strategic Planning

  • Planning New Businesses and Downsizing Old Businesses

    • Involves taking advantage of one or more of the following:

      • Intensive growth

      • Integrative growth

      • Diversification growth

      • Harvesting or divesting old businesses

To accompany A Framework for Marketing Management, 2nd Edition


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Business Mission

SWOT Analysis: Internal

SWOT Analysis: External

Goal Formulation

Strategy Formulation

Program Formulation

Implementation

Feedback and Control

Business Strategic Planning

Planning Involves Eight Steps:

To accompany A Framework for Marketing Management, 2nd Edition


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SWOT Analysis

Opportunities and threats stemming from the external environment

Internal strengths and weaknesses

Monitoring key forces for trends

For each trend, conduct an MOA - Marketing Opportunity Analysis

Strategic Business Planning

To accompany A Framework for Marketing Management, 2nd Edition


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SWOT Analysis

Opportunities and threats stemming from the external environment

Internal strengths and weaknesses

Brand awareness, image, reputation

Distribution, pricing, customer loyalty, product benefits

Finance, R&D, manufacturing

Strategic Business Planning

To accompany A Framework for Marketing Management, 2nd Edition


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Business Strategic Planning

  • Effective goals should be formulated so that they are:

    • Arranged hierarchically from broader to more specific objectives

    • Stated in quantitative terms

    • Realistic

    • Consistent with each other and the company mission

To accompany A Framework for Marketing Management, 2nd Edition


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Business Strategic Planning

  • Strategy dictates the game plan for achieving goals. Porter’s generic strategies offer a starting point for strategic thinking:

    • Overall cost leadership

    • Differentiation

    • Focus

To accompany A Framework for Marketing Management, 2nd Edition


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Business Strategic Planning

  • Program formulation and implementation involves:

    • Developing supporting programs

    • Estimating implementation costs

    • Carefully managing the details so great strategy isn’t ruined by poor implementation

  • Feedback and control is crucial

To accompany A Framework for Marketing Management, 2nd Edition


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The Marketing Process

  • Two Views of the Value Delivery Process:

    • Traditional physical process sequence

      • Make the product . . . Sell the product

    • Value creation and delivery sequence

      • Choose the value . . . Provide the value . . . Communicate the value

To accompany A Framework for Marketing Management, 2nd Edition


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The Marketing Process

  • Steps in the Marketing Process:

    • Analyzing market opportunities

    • Developing marketing strategies

    • Planning marketing programs

    • Managing the marketing effort

To accompany A Framework for Marketing Management, 2nd Edition


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Executive summary and TOC

Current situation

Opportunity and issue analysis

Objectives

Marketing strategy

Action programs

Financial projections

Controls

The Marketing Process

Marketing Plan Contents

To accompany A Framework for Marketing Management, 2nd Edition


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Managing The Marketing Process

  • Marketing Departments can be organized by:

    • Function

    • Geographic area

    • Products or brands

    • Customers or markets

    • Corporate divisions

    • Global aspects

To accompany A Framework for Marketing Management, 2nd Edition


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Managing The Marketing Process

  • Building a Companywide Marketing Orientation Requires:

    • Commitment from top management

    • Training programs; employee empowerment

    • Recognitions and rewards programs

    • Modern marketing planning system

    • Process-outcome focus

To accompany A Framework for Marketing Management, 2nd Edition


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Managing The Marketing Process

  • Injecting more creativity into the organization can be beneficial

  • Successfully implementing programs requires four sets of skills:

    • Diagnostic skills

    • Identification of company level

    • Implementation skills

    • Evaluation skills

To accompany A Framework for Marketing Management, 2nd Edition


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Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of top and middle management

Examines whether planned results are achieved

Managing The Marketing Process

To accompany A Framework for Marketing Management, 2nd Edition


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Managing The Marketing Process

  • Five tools are used to evaluate annual plan performance:

    • Sales analysis

    • Market-share analysis

    • Marketing expense-to-sales analysis

    • Financial analysis

    • Market-based scorecard analysis

To accompany A Framework for Marketing Management, 2nd Edition


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Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of marketing controller

Examines where the company is making and losing money

Managing The Marketing Process

To accompany A Framework for Marketing Management, 2nd Edition


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Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of line & staff and / or marketing controller

Evaluates and attempts to improve spending efficiency of marketing expenditures

Managing The Marketing Process

To accompany A Framework for Marketing Management, 2nd Edition


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Types of Control

Annual plan

Profitability

Efficiency

Strategic

Responsibility of top management and marketing auditor

Examines whether company is pursuing its best opportunities

Managing The Marketing Process

To accompany A Framework for Marketing Management, 2nd Edition


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Managing The Marketing Process

  • Strategic controls should be conducted periodically via:

    • Marketing-effectiveness reviews

    • Marketing audits

  • Additional reviews to consider:

    • Marketing excellence review

    • Ethical and social responsibility review

To accompany A Framework for Marketing Management, 2nd Edition


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